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Marilyn Kelly, J.
Petitioner appeals as of right the circuit court’s order affirming a decision of the Department of Social Services terminating her food stamp assistance. After a hearing, the department ruled that petitioner failed to cooperate with its efforts to verify the income or residence of petitioner’s brother, Melvin Hodges. On appeal petitioner urges she was denied due process because she was not given notice of the reason for termination of her food stamp assistance before the hearing.
Petitioner resided in Flint with her three children and one grandchild. On February 3, 1986, a department employee visited her residence to assess her continued eligibility for food stamp assistance. The employee observed an unidentified male adult sleeping on the couch and a vehicle registered to Melvin Hodges in the yard. The employee did not question petitioner about the man.
On the basis of this home visit and two other observations of Hodges’ vehicle parked in petitioner’s yard, the department sent petitioner notice that her food stamp assistance would be cancelled effective March 11. The notice cited PAM Item 220 and gave as the reason for cancellation: "[a] report that you have more people in [the] home than are listed on your application . . . .” Petitioner asked for a hearing and explained in her request that Melvin Hodges was her brother and lived at a different address, 417 Lorado Street.
A hearing was held before a referee on April 9. Donna Smith, a department employee, read into the record the contents of the hearing summary. Included within the report was a statement allegedly made by petitioner during a telephone conversation with a department employee on March 5. It quoted petitioner as admitting that Hodges, her brother, had lived with her temporarily since November, 1985. He was employed at General Motors. The report concluded: "She was unwilling to supply further information needed in determining continued eligibility, food stamp eligibility. The case was then processed for closure.”
In response to an inquiry by the referee, Smith stated the case did not involve a sanction for failure to cooperate. The decision to cancel petitioner’s food stamps, she said, was based on the February 3 home visit, not the March 5 telephone call.
Petitioner’s proofs showed that Hodges visited her house but did not live there. Petitioner stated Hodges’ mail was sent to her residence merely to provide a place for its delivery while he was in jail. Petitioner’s attorney concluded in closing argument that the evidence proved Hodges was not living with petitioner.
The referee asked what criteria are used to determine if a person is living in a particular household for the purpose of food stamp eligibility. The answer was nonresponsive. The department supervisor stated she had asked petitioner for Hodges’ address during the March 5 telephone call and at the prehearing conference on March 19. She said that petitioner did not provide an address until the current hearing. At that point, petitioner’s counsel refocused on the question and tried to explain how to determine if a person is living in a particular household.
The referee issued a written decision on April 14, 1986. He concluded that, because petitioner was aware of Hodges’ living arrangement and did not report it to the department when asked, the department correctly concluded that she had refused to provide information necessary to determine her continued eligibility for food stamps.
In her appeal to the circuit court petitioner raised denial of due process. She pointed out that the Department had given her notice to be prepared at the hearing to challenge its ruling that her brother was living with her. However, when the hearing took place, a switch was made. The decision to revoke her food stamps was based on petitioner’s failure to provide information about her brother.
The trial court affirmed the referee’s decision. It ruled that due process requirements were satisfied in that the reason ultimately used for cancellation was closely enough related to the reason given petitioner prior to the hearing. We disagree.
■Our review of department decisions is limited. We reverse only if the decision (1) violates the constitution or a statute, (2) exceeds the agency’s authority or jurisdiction, (3) is made upon unlawful procedure, (4) is not supported by competent, material, or substantial evidence, (5) is arbitrary or capricious, or an abuse of discretion, or (6) is affected by a substantial or material error of law. MCL 24.306; MSA 3.560(206); Spratt v Dep’t of Social Services, 169 Mich App 693, 700; 426 NW2d 780 (1988); Soto v Director of the Michigan Dep’t of Social Services, 73 Mich App 263; 251 NW2d 292 (1977).
Due process and the Administrative Procedures Act require that a party in a contested case be given timely and adequate notice detailing the reasons for the proposed administrative action. MCL 24.201 et seq.; MSA 3.560(101) et seq.; MCL 24.271; MSA 3.560(171); Goldberg v Kelly, 397 US 254; 90 S Ct 1011; 25 L Ed 2d 287 (1970); Rochester Community Schools Bd of Ed v State Bd of Ed, 104 Mich App 569; 305 NW2d 541 (1970).
The requirements for notice are set forth at MCL 24.271; MSA 3.560(171):
(2) The parties shall be given a reasonable notice of the hearing, which notice shall include:
(a) A statement of the date, hour, place, and nature of the hearing. Unless otherwise specified in the notice the hearing shall be held at the principal office of the agency.
(b) A statement of the legal authority and jurisdiction under which the hearing is to be held.
(c) A reference to the particular sections of the statutes and rules involved.
(d) A short and plain statement of the matters asserted. If the agency or other party is unable to state the matters in detail at the time the notice is given, the initial notice may state the issues involved. Thereafter on application the agency or other party shall furnish a more definite and detailed statement on the issues.
See also 7 CFR 273.13(a) (food stamp regulations).
We look to the federal courts for guidance when determining whether the department’s notice ade quately explains the reasons for the proposed action. We are advised:
At a minimum, due process requires the agency to explain, in terms comprehensible to the claimant, exactly what the agency proposes to do and why the agency is taking this action. If des finds that a claimant has not performed some action that the regulations require, the notice must explain what the claimant was required to do and how his or her actions failed to meet this standard. See Banks v Trainer, 525 F2d 837, 842 (CA 7, 1975), cert den, 424 US 978; 96 S Ct 1484; 47 L Ed 2d 748 (1976); Hill v O’Bannon, 554 F Supp 190, 197 (ED Pa, 1982); In re Clark, 122 NH 888; 451 A2d 1303, 1304-1305 (1982). . . . This detailed information is needed to enable claimants to understand what the agency has decided, so that they may assess the correctness of the agency’s decision, make an informed decision as to whether to appeal, and be prepared for the issues to be addressed at the hearing. See Dilda v Quern, 612 F2d [1055] 1056-1057; Banks v Trainer, 525 F2d [837] 842; Jamroz v Blum, 509 F Supp 953, 961-962 (ND NY, 1981). [Ortiz v Eichler, 616 F Supp 1046, 1061 (D Del, 1985), aff'd 794 F2d 889 (CA 3, 1986).]
In this case, the initial written notice given petitioner did not reference failure to cooperate or verify information. At the place on the notice calling for the law and regulation or the manual items used in taking the proposed action, the relevent references are missing.
During the hearing, the department employee specifically stated the case did not involve a failure-to-cooperate sanction. The only evidence regarding petitioner’s cooperation came in response to questions by the referee after both petitioner and the department had closed their proofs. The first mention that the failure to cooperate is the reason for cancelling petitioner’s food stamps came after the hearing in the referee’s written decision. He formulated the issue as follows:
Did the department correctly decide to close claimant’s food stamps because she failed to cooperate with the department’s efforts to verify the income or residence of Melvin Hodgers [sic]?
We conclude that the department did not give petitioner adequate notice of the reason for termination of her food stamp assistance. In failing to cite the reason in the notice prior to hearing, the department denied her the opportunity effectively to prepare for and address it. The lack of notice prevented her from obtaining a full and fair hearing and deprived her of her right to due process.
Reversed. | [
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Per Curiam.
This consolidated appeal is the result of a grant of summary judgment in favor of Thomas and Shirley Bradley and the Estate of Regina Stewart (appellees) in Michigan Mutual Insurance Company’s action for a declaration of its nonliability under an insurance policy. We affirm.
The facts are not in dispute. In June, 1980, Michigan Mutual issued an insurance policy to Gary Reed, doing business as G. W. Reed & Sons Leasing, covering a 1973 Kenworth tractor. On April 7, 1981, the tractor, while being driven by a Reed employee, Dale Foster, was involved in an accident with a vehicle occupied by the Bradleys and Regina Stewart. The accident resulted in Stewart’s death and personal injuries to the Bradleys. On the date of the accident, the tractor had been leased to Multi-States Transport, Inc. MultiStates was insured by Midwestern Indemnity Company.
In 1981 and 1982, respectively, the personal representative of Regina Stewart’s estate and the Bradleys filed separate actions against Reed, Foster, and Multi-States as a result of the accident. Pursuant to its insurance policy with Reed, Michigan Mutual undertook to defend Reed and Foster in the actions.
While pretrial matters were proceeding in the Stewart wrongful death action, Multi-States filed a separate declaratory judgment action against Michigan Mutual seeking a declaration that Michigan Mutual’s policy was applicable to the claims asserted by the personal representative of Stewart’s estate and to establish Michigan Mutual as the primary insurer. Midwestern Indemnity was made a third-party defendant to that action, and on October 7, 1982, Michigan Mutual filed a third-party declaratory action against Midwestern. Michigan Mutual asserted that it was not required to provide coverage to Reed and Foster since its policy contained an endorsement excluding coverage when the insured vehicle was used in the business of any person to whom the vehicle had been leased.
On March 6, 1984, the date originally scheduled for trial in the Stewart wrongful death action, a settlement conference was held. There, Michigan Mutual, apparently for the first time in that action or the Bradley action, indicated that its insurance policy covering Reed and Foster might not be applicable to the Stewart and Bradley actions. The settlement conference was adjourned, and on March 8, 1984, Michigan Mutual officially sent both Reed and Foster a "reservation of rights” letter indicating that it might deny coverage under its policy based on the previously mentioned policy exclusion.
On April 20, 1984, Reed, Foster, and appellees were joined in the declaratory judgment action involving Multi-States, Midwestern Indemnity, Michigan Mutual and others not relevant to this appeal. The purpose of joinder was to permit Michigan Mutual to assert third-party claims in the declaratory judgment action, setting up any defenses or exclusions it may have under its policy of insurance covering the third-party defendants.
On September 6, 1984, appellees filed a motion for partial summary judgment against Michigan Mutual. They argued that Michigan Mutual’s participation in the defense of Reed and Foster for nearly 2 Vz years constituted a waiver and estoppel of its right to deny insurance coverage based on the policy exclusion. Michigan Mutual, on the other hand, contended that Michigan law does not permit imposition of waiver or estoppel unless the delay in denying coverage caused the insured actual prejudice, and that a genuine issue of fact existed as to whether the insureds in this case had suffered actual prejudice due to the delayed notification of denial of coverage.
Following a hearing, the trial court determined that Michigan Mutual had waived or was estopped from disclaiming liability under its insurance policy covering Reed and Foster, and, accordingly, granted the motion for summary judgment.
As a general rule, when an insurer is impressed with a duty to defend its insured under the terms of its policy, the insurer may be estopped from denying coverage based on a policy exclusion if, with knowledge of a defense to its policy coverage, the insurer participates in the defense of the insured for an unreasonable time and fails to provide timely notice of its intention to disclaim liability. Fidelity & Casualty Co of New York v Schoolcraft Co Rd Comm’rs, 267 Mich 193; 255 NW 284 (1934); Meirthew v Last, 376 Mich 33; 135 NW2d 353 (1965). On appeal, Michigan Mutual does not dispute this general rule. Instead, it asserts that in order for estoppel to be applied under the rule, the party seeking estoppel is required to show that the delayed notification resulted in actual prejudice to the insured. Specifically, Michigan Mutual contends that in the instant case summary judgment was inappropriate because there existed a factual question as to whether the rights of the insured were actually prejudiced by Michigan Mutual’s participation in their defense.
The primary case in Michigan concerning the application of estoppel when an insurance company participates in the defense of its insured and then attempts to disclaim liability is Meirthew v Last, supra. In that case, the plaintiff received a judgment against defendant Last following a trial in which the insurer appeared and represented the defendant. Subsequently, the plaintiff was granted a writ of garnishment by the trial court against the insurer. The insurer responded by denying liability, alleging that the policy issued to Last had an applicable exclusionary clause. Meirthew, supra, p 35. The Court, holding that the insurer was estopped from denying liability, noted actual prejudice to the insured, but also suggested that such a delayed disclaimer of liability was presumptively prejudicial to the rights of the insured and consequently the plaintiff:
We hold the notice legally insufficient; also that it came too late to avoid presumptive prejudice of Last’s rights and plaintiff’s consequential rights. ... In no field of law is legal duty more rigidly enforced than in instances as at bar. The insurer must fulfill its policy-contracted obligation with utmost loyalty to its insured; not for. the purpose of developing, secretly or otherwise, a policy defense. When a conflict of interest—even a mere possibility thereof—arises, the law suggests (if it does not require) that the insurer act promptly and openly, on peril of estoppel, preferably upon a record made in the pending case (if pending as here) with the court fully apprised of all necessary details; also that the insurer act thus on time for arms’ length actions which may protect the respective rights of both parties to the contract of insurance. [Meirthew, supra, p 38. Emphasis added.]
The issue of the application of estoppel and the requirement of prejudice as discussed in Meirthew was also considered in Cozzens v Bazzani Bldg Co, 456 F Supp 192 (ED Mich, 1978). In that case, the plaintiff sued the defendant for negligent building construction. The defendant was defended by its insurance carrier. On the day set for trial, the insurer indicated for the first time that there was a possible conflict because it intended to deny coverage. Cozzens, supra, pp 193-194. Trial was adjourned, and the plaintiff moved for summary judgment, arguing that the insurance company was estopped from asserting its policy defenses because notice had been untimely.
The Cozzens court, in granting summary judgment for the plaintiff, noted a split of authority among jurisdictions on the question of whether an untimely notice of disclaimer creates a presumption of prejudice, but found it unnecessary to decide the question since, as in Meirthew, both actual and presumptive prejudice were shown. The Cozzens court stated, however:
To this Court’s mind, a presumption of prejudice flowing from a finding of untimeliness becomes all the more appropriate when one considers that, as a vital participant in the judicial proceedings (albeit a somewhat less than direct one), the carrier owes certain responsibilities not only to the insured but also to the opposing party and to the court. It is a well-known fact that the availability of an insurance fund to pay whatever judgment is ultimately entered is an important element in the management of a case, both with respect to the nature and extent of the discovery that is undertaken and with respect to the course of settlement discussions. As for the Court, it bears the responsibility of administering our system of justice in an orderly and expeditious manner. Those interests are not served where, as here, a conflict between the two parties to the contract of insurance is not brought in light until the very day of trial. In light of the many diverse interests involved, this Court joins its voice with that of the Michigan Supreme Court in urging "that the insurer act promptly and openly, on peril of estoppel, preferably upon a record made in the pending case (if pending as here) with the court fully apprised of all necessary details.” [456 F Supp 202.]
In the instant case, we agree with Michigan Mutual that, unlike in Meirthew and Cozzens, there was an inadequate showing of actual prejudice to the rights of the insured to find such prejudice as a matter of law. Nevertheless, we are of the opinion that when an insurer undertakes to defend its insured without reservation of rights, continues to defend although it possesses sufficient information concerning a possible policy exclusion, and subsequently gives notice of its intent to deny coverage, a showing of actual prejudice is not required for the application of estoppel. Instead, a presumption of prejudice arises which, if unrebutted, will establish prejudice as a matter of law.
This result is particularly appropriate in the instant case. Appellees filed suit in the underlying tort action in 1981 and 1982. Michigan Mutual immediately undertook to defend its insured, and continued to do so until the date originally set for trial, some 2 Vi years later. It never indicated to appellees or to the insureds that it might have a valid defense as to coverage, although it was aware of that possibility as early as October, 1982. We agree with the trial court that, under these circumstances, the rights of the insureds, and the consequential rights of appellees, were presumptively prejudiced and Michigan Mutual is estopped from asserting its policy exclusion. At the hearing, Michigan Mutual provided no evidence which would rebut the presumption of prejudice. Under such circumstances, summary judgment to appellees was proper.
Michigan Mutual asserts that the fact that it filed its separate declaratory judgment action against Midwestern and asserted its policy defense therein precludes any finding of prejudice to the insureds. We disagree. In Security Ins Co of Hartford v Daniels, 70 Mich App 100; 245 NW2d 418 (1976), this Court held that a declaratory judgment action asserting policy exclusions is a suitable alternative to a reservation of rights letter as a means of providing timely notice to the insured. Here, however, Michigan Mutual did not bring the insureds or the appellees into its declaratory judgment action until April 20, 1984, after it had already sent a reservation of rights letter. Both actions were thus untimely. The fact that it raised the defense in a declaratory judgment action to which neither the insureds nor the appellees were a party does not in our opinion overcome the presumption of prejudice.
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Per Curiam.
The Michigan Supreme Court has vacated our earlier opinion in this case and remanded for reconsideration in light of Teper v Park West Galleries, Inc, 431 Mich 202; 427 NW2d 535 (1988). See 431 Mich 907 (1988).
This case concerns whether the federal Employee Retirement Income Security Act, 29 USC 1001 et seq., precludes application of our no-fault coordination-of-benefits law, MCL 500.3109a; MSA 24.13109(1). Specifically at issue is whether the Vanderwals’ no-fault insurer can look to Mr. Vanderwal’s health plan, a self-insured plan of his employer governed by erisa, to assume primary responsibility for medical expenses incurred by the Vanderwals in a car accident. The employer’s health plan specifically excludes benefits for injuries received in accidents involving a car for which a no-fault insurance policy was in effect. The health plan indicates that the benefits involved here were self-funded by the employer.
In our earlier unpublished opinion per curiam, decided June 22, 1987 (Docket No. 90026), we affirmed the trial court’s dismissal of plaintiffs claim by finding that the claim was precluded under erisa, relying on State Farm Mutual Automobile Ins Co v C A Muer Corp, 154 Mich App 330; 397 NW2d 299 (1986).
As set forth in State Farm, pp 334-336, two questions must be addressed to resolve the issue before us: (1) Since our no-fault law would require the health plan to take primary responsibility for paying for the medical expenses, does that law "relate to” the plan so that erisa would preempt its application; and (2) Does our answer change because the health plan is a self-insured plan? The Teper opinion concerns only the first question.
Erisa expressly preempts the application of a state law which "relates to” an employee benefit plan. 29 USC 1144(a). In Teper, our Supreme Court reviewed the various United States Supreme Court decisions regarding erisa preemption and the meaning of the term "relates to.” Our Supreme Court found that a state law is preempted if it "relates to” an employee benefit plan by
1) altering the level of benefits which would be paid out under a given plan from state to state, 2) altering the terms of the plan such as requirements for eligibility, or 3) subjecting the fiduciaries of a plan to claims other than those provided in the erisa itself. [431 Mich 221.]
The Michigan no-fault coordination-of-benefits law would require the health plan to assume primary responsibility for the Vanderwals’ medical expenses despite the plan’s exclusion clause. Federal Kemper Ins Co, Inc v Health Ins Administration, Inc, 424 Mich 537; 383 NW2d 590 (1980); Auto-Owners Ins Co v Lacks Industries, 156 Mich App 837; 402 NW2d 102 (1986), lv den 428 Mich 902 (1987). By doing so, our no-fault law comes under the second example set forth in Teper, because it alters the terms of the plan by requiring a benefit that the employer otherwise was under no obligation to provide. Teper, supra, p 214; Shaw v Delta Air Lines, Inc, 463 US 85; 103 S Ct 2890; 77 L Ed 2d 490 (1983). Therefore, if Teper were our only consideration, the no-fault law would be preempted.
However, erisa also includes a provision which allows for the application of insurance laws even if they "relate to” the plan. We therefore turn to consideration of our second question: Does our answer change because the health plan is a self-insured plan?
As noted in State Farm, supra, p 335, there is a "saving” clause in erisa which would allow enforcement of the no-fault policy as a state law regulating insurance. 29 USC 1144(b)(2)(A). This saving clause is, however, limited by the "deemer” clause which provides that an employee benefit plan shall not be deemed an insurance company for purposes of a state law regulating insurance companies or contracts. 29 USC 1144(b)(2)(B). State Farm held that, because the health plan there was self-funded and not insured by a commercial insurance company, it was not deemed to be subject to the insurance laws of Michigan. Under State Farm, the no-fault law would continue to be preempted.
Since State Farm, however, the Sixth Circuit Court of Appeals has considered the identical question raised here of whether Michigan’s no-fault coordination-of-benefits law was preempted when applied to self-insured health plans. In Northern Group Services Inc v Auto Owners Ins Co, 833 F2d 85 (CA 6, 1987), cert den — US —; 108 S Ct 1754; 100 L Ed 216 (1988), the court held that Michigan’s coordination-of-benefits law was not preempted by erisa. The Northern Group Services analysis has recently been adopted by this Court in Michigan Millers Mutual Ins Co v West Michigan Health Care Network, 174 Mich App 196; 435 NW2d 423 (1988), and in Auto Club Ins Ass’n v Frederick & Herrud, Inc, 175 Mich App 412; 438 NW2d 320 (1989). The interpretation of a federal statute is a question of federal law. Cook v Detroit, 125 Mich App 724, 730; 337 NW2d 277 (1983). We are persuaded that Northern Group Services, decided after State Farm and our earlier opinion in this case, is the better analysis of the federal preemption question. We therefore agree that Michigan’s no-fault coordination-of-benefits law is not preempted by erisa simply because an uninsured erisa plan is involved. The fact that on its face the health plan excludes rather than provides for coordination of benefits does not change our conclusion. Auto Owners, supra.
Defendants’ final issue, challenging plaintiffs standing, was not addressed in our earlier opinion. We also need not address it now since they did not properly raise this issue by filing a cross appeal. MCR 7.207; Michigan Ass’n of Administrative Law Judges v Michigan Personnel Director, 156 Mich App 388, 395; 402 NW2d 19 (1986). Nor is it clear that this issue was ever actually addressed by the trial court. Michigan Mutual Ins Co v American Community Mutual Ins Co, 165 Mich App 269, 277; 418 NW2d 455 (1987). In any event, it appears from the record that plaintiff insurance company is proceeding as subrogee of the Vanderwals and that the second review provided for in the health plan policy is not mandatory. Defendants’ standing arguments appear to be without merit.
In summary, we find that our no-fault coordination-of-benefits law would be preempted under Teper as a law which "relates to” an erisa benefit plan. However, because the no-fault law is the type of state insurance regulation not barred by erisa, the coordination-of-benefits law is saved from preemption. We therefore reverse the order granting summary disposition for defendants and remand this matter to the trial court. Jurisdiction is not retained.
Reversed. | [
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Clark, C. J.
Plaintiff, whose Russian name appears in the following as the depositor, engaged defendants, private bankers at Detroit, to transmit money to Russia. At the banking office he made application, Exhibit 3, and received and accepted Exhibit 6. We quote:
“Exhibit 3.
(Both in English and Russian)
“Application for a Savings-Bankbook issued by the
“Imperial Russian Savings Banks.
“To the Imperial Savings Bank.
City — Kiev.
Amount — -10,000 rubles.
Name of depositor in full — Nison Idel Kerszner.
His age — 36.
Father’s name — Abram.
Mother’s name — Perl.
If married, name of wife — Liena.
Where born — Village, M. Dubova; Municipality, Uksanin; County, Uman; Province, Kiev.
Occupation — Merchant.
Signature of the depositor — Nison Idel Abramovech Kerczner.
Dated: October 24, 1917.
“Exhibit 6.
(Both in English and Russian)
Date 10/24/17.
Received from Sam Karnov.
Lemington, Ont.
$1,440 for the transmittance by mail of Rs. 10,000 to address specified in the margin hereon:
(Margin):
Payee — Savings Account.
City — Kiev.
To deposit in the name of Nison Idel Kerezner.
Deposit book to be returned to Goldman Bros.
“Goldman Beds.
Foreign amount — *Rs. 10,000. Per S.
“Our liability toward the sender to be no greater than the liability .of the European P. O. toward us, all claims in case of loss of money to be adjusted only, when the amount is received by our correspondent from the European Post Office. In case this payment is returned by the European Post Office for any reason whatsoever, same to be refunded at the current rate of exchange prevailing on the date of return of such funds.”
Defendants, following a required course, remitted to an international bank, an intermediary bank, in this case C. B. Richards & Company of New York, who in turn remitted to the Russo-Asiatic Bank at Petrograd, which bank was the correspondent of all American banks when money was to be transmitted to Russia, directing said bank to deposit 10,000 rubles in the name of plaintiff in the bank at Kiev. The remittance of Richards & Company was mailed, left on a Russian steamship for Russia and its known history ends there. It is intimated that the Reds got it. Defendants remitted $1,410, the value of the rubles, retaining $30 for the service.
Plaintiff’s case, in the main, is planted on a claimed oral agreement, contemporaneous with the writings, by and between him and the defendants, that if defendants failed to give to him within three months a bankbook, showing deposit in his name of 10,000 rubles in the Kiev bank, they would pay him back $1,440. There is no claim of fraud, duress, or mistake. Plaintiff was well educated and intelligent. Plaintiff had verdict and judgment. Defendants bring error.
Defendants insist that plaintiff's testimony of the oral agreement varied and contradicted the written contract between the parties and therefore ought not to' have gone to the jury. Plaintiff contends that the writing in question is a mere receipt and may be contradicted or explained. That a mere receipt may be contradicted or explained is elementary. But the fact that a receipt is incorporated within a written contract does not render the entire writing a mere receipt subject to be varied or contradicted by parol evidence. 22 C. J. p. 1188.
The written contract, accepted and acted upon by the parties, in so far as it was put in written form, controls. Axe v. Tolbert, 179 Mich. 556. Evidence of the claimed oral agreement ought not to have gone to the jury. On the competent evidence the case is like Kolodig v. Highland Park State Bank, 226 Mich. 197, where a directed verdict for defendant was sustained.
Judgment reversed with direction to enter judgment for defendants, with costs.
McDonald, Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Steere, J.
Plaintiff filed this bill as receiver of the Haney School Furniture Company asking that a certain deed dated July 23, 1920, from said furniture company to defendant Lillias L. Carpenter purporting to convey to her certain of its described real estate in the city of Grand Eapids, known as the “warehouse property,” and a mortgage she had given thereon to her son George and daughter Beulah be held void and set aside, on the ground that such instruments were given in fraud of the rights of creditors of said furniture company. Defendants answered in denial, the material substance of their lengthy answer being that when said deed was given to Lillias L. Carpenter it was for an adequate consideration and the furniture company was then solvent, owing only about $15,000 of indorsed and secured paper, which it was abundantly able to pay; also denying that “the Kent county circuit court, in chancery, ever acquired any jurisdiction to appoint a receiver” for said furniture company. Following various preliminaries the case was brought to a hearing on pleadings and proofs taken in open court resulting in a decree on May 26, 1924, granting the relief asked by plaintiff, from which defendants have appealed.
The business of the company under consideration here was started in 1876 by Elijah Haney, who was about 98 years old when this case was heard. He purchased and began business on the factory property in Grand Rapids where the company has ever since been located. In the years which followed he there developed a large and prosperous manufacturing enterprise. For a time it was known as the Empire Manufacturing Company, later doing business as the Haney Manufacturing Company, and in .1889 he organized it into a close family corporation under the corporate name of the Haney School Furniture Company, which line of manufacture under certain patents he then held proved profitable and expanded under his management. The stockholders and officers of the corporation consisted of himself, his wife, Harriet Haney, and their daughters, Ida May Haney, Alberta Haney Lockwood, and Lillias L. (Haney) Carpenter, defendant herein. For much of its corporate life the company prospered and the family was in apparent affluence. In 1915 its books showed a surplus of over $80,000, but Elijah Haney was then growing old, family difficulties and dissensions arose, money was withdrawn by members of the family to buy farms, real estate in the city and for other purposes, the business ceased to prosper as before and deficits re- suited each year thereafter until the corporate term expired on June 7, 1919, with evident increase of family friction, part of them wanting to continue the business and others to discontinue and liquidate. Their dissensions developed into litigation between themselves. Alberta had two suits against her father and mother and defendant Lillias L. Carpenter began suit against Alberta and Ida May asking for appointment of a temporary receiver and an injunction to restrain them from continuing the business or contracting any indebtedness in the name of the expired corporation. The Michigan Trust Company was appointed receiver by the court and a preliminary injunction granted pn August 16, 1920. While that litigation was pending the parties negotiated a settlement amongst themselves under which Lillias L. Carpenter in consideration of a conveyance to her of the so-called warehouse property of the company agreed to transfer all her interest and stock in the company, which she stated amounted to $3,000, to “the Haney School Furniture Company and the .parties holding stock therein in proportion to their respective holdings of stock.” This agreement was consummated by exchange of properly executed transfers on July 23, 1920. The deed to her of the warehouse property was executed and acknowledged by the “Haney School Furniture Company, by Elijah Haney, president, by Ida May Haney, Sec’y, Elijah Haney, Harriet L. Haney, Ida May Haney, Alberta Haney Lockwood.” On September 4, 1920, the order of August 16, 1920, granting an injunction and appointing a receiver was, on motion of counsel for Lillias L. Carpenter, plaintiff therein, set aside and her bill dismissed. The warehouse property was a part of the corporation’s plant and consisted of a large two-story cement block warehouse 96x100 feet with the land on which it stood, stated by the court to be worth about $30,000.
The trial court found that since it was deeded to her the warehouse property had been—
“rented by Lillias L. Carpenter, it being conceded that the rentals had been averaging not less than two hundred dollars per month, making a total rental received by defendant up to the present time (May 25, 1924) of not less than four thousand seven hundred ($4,700) dollars.”
When the deed of this property was given to Mrs. Carpenter her suit for appointment of a receiver for this corporation in which she held $3,000 (par value) of stock was pending. Under the undisputed facts she was not an innocent purchaser in good faith. Plaintiff claims that the stock she exchanged for the property was then worthless. The trial court said in part:
“which property was received by said defendant free and clear from all incumbrances upon the surrender of, and in exchange for, three thousand dollars, of the capital stock of said corporation, which stock, from the records of the company, had a small, if any, value, at that time, and the par value of which was. only three thousand dollars. That during the year 1920, the said Haney School Furniture Company, a corporation, was at all times insolvent and was unable to pay its obligations in due course of business.” * * *
On June 7, 1919, when its charter expired, the corporation became subject to the following statutory provisions (3 Comp. Laws 1915, § 11335) :
“All corporations whose charters shall expire by their own limitation, or shall be annulled by forfeiture or otherwise, shall nevertheless continue to be bodies corporate, for the term of three years after the time when they would have been so dissolved, for the purpose of prosecuting and defending suits by or against them, and of enabling them gradually to settle and close their concerns, to dispose of and convey their property, and to divide their capital stock; but not for the purpose of continuing the business for which such corporations have been or may be established.”
' This statute malíes plain that within the three-year period after the charter of this corporation expired it was the duty of its officers and stockholders to close up its affairs, first pay its debts and then distribute its remaining assets, if any, amongst its stockholders. Until its indebtedness was all liquidated the assets of the corporation were impressed with a trust for the benefit of its creditors to the extent of its indebtedness, even though they were disbursed amongst stockholders or taken over by a new corporation chartered to continue the business. The dissolution of the corporation took place at the expiration of its charter except as certain of its powers were continued during a stated time for settling its affairs and closing up the business.
“The property of a corporation is doubtless a trust fund for the payment of its debts, in the sense that when the corporation is lawfully dissolved and all its business wound up, or when it is insolvent, all its creditors are entitled in equity to have their debts paid out of the corporate property before any distribution thereof among the stockholders. It is also true, in the case of a corporation, as in that of a natural person, that any conveyance of property of the debtor, without authority of law, and in fraud of existing creditors, is void as against them. Story, Equity Jur. § 1252; Curran v. Arkansas, 15 How. (U. S.) 304; Graham v. Railroad Co., 102 U. S. 148, 161; Railroad Co. v. Howard, 7 Wall. (U. S.) 392; Goodin v. Cincinnati & Whitewater Canal Co., 18 Ohio St. 169.” Wabash, etc., R. Co. v. Ham, 114 U. S. 587 (5 Sup. Ct. 1081).
In Clark v. Clark Machine Co., 151 Mich. 416, 424, this rule is recognized in the following excerpt:
“We are compelled to hold that the assessable stock and the assets of a corporation constitute a trust fund, not only for the benefit of existing, but also for future, creditors (American Steel & Wire Co. v. Eddy, 130 Mich. 266; Peninsular Savings Bank v. Stove Polish Co., 106 Mich. 535; Upton v. Tribilcock, 91 U. S. 45), and that the assets of a corporation cannot be used by it in the purchase of its outstanding stock to the exclusion of subsequent creditors.”
“But the modern doctrine is that whether a corporation is dissolved by expiration of its charter, or by a judgment of forfeiture, or otherwise, and in the absence of any statute on the subject, a court of equity will hold the assets first for the payment of all debts, and then for distribution among the stockholders, or members in proportion to the stock held by them.” 5 Thompson on Corporations (2d Ed.), § 6618.
In this case the stockholders and officers of the corporation did not observe that rule or follow the statutory requirements. Mrs. Carpenter as a stockholder did institute a suit to compel them to do so and the court granted her the relief asked so far as the suit proceeded, but she abandoned it and turned her worthless stock over to the expired corporation or its other stockholders and they in turn deeded to her a valuable portion of the assets of the corporation for so doing. This they could not do in, disregard of the rights of creditors of the corporation. The property which she received for her stock yet remained impressed with a trust for their protection.
Shortly before the three years expired creditors made application to the court for the appointment of a receiver and plaintiff was appointed. After qualifying it filed this bill to recover for the benefit of creditors this property, which was an asset of the corporation and part of its plant when its charter expired.
Defendants’ basic contention that the circuit court, in chancery, of Kent county had no jurisdiction to appoint a receiver for the corporation, which is urged and argued at length in their counsel’s brief, was de tided contrary to such contention in the recent case of Grand Rapids Trust Co. v. Carpenter, ante, 491.
The contention that said corporation was not insolvent when the warehouse property was deeded to Mrs. Carpenter turned on a question of fact. That issue was tried out at length in the lower court. The books and records- of the corporation, as well as those of its abortive successor were in evidence and gone over by expert witnesses who testified as to the' results. There was ample evidence to support the conclusions of the court as to the financial condition of the corporation when this deed was given and later. Some $76,000 of verified claims of creditors had been filed against the corporation when this case was heard. The warehouse property was an asset of the corporation constituting a part of the trust fund holden “not only for the benefit of existing but also for future creditors” (Clark v. Clark Machine Co., supra). Defendants cannot be held innocent, good faith parties in this transaction under the circumstances shown here.
The record well supports and we find no occasion to disturb the decree rendered by the trial court. The same will stand affirmed, with costs to plaintiff.
McDonald, C. J., and Clark, Bird, Sharpe, Moore, Fellows, and Wiest, JJ., concurred. | [
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Clark, C. J.
From a decree for divorce defendant has appealed. The only question requiring consideration is whether the court was right in awarding alimony and in holding that a separation agreement duly made by and between the parties and fully paid and satisfied by defendant had been avoided by reconciliation and resumption of marital relations after the making of the agreement.
The parties are in conflict as to facts, but, giving to plaintiff’s testimony full credit, it shows, over a period of several months after the making of the agreement, casual acts of sexual intercourse and cohabitation at the place where plaintiff resided, not at defendant’s home. Plaintiff testified that defendant on one or two occasions invited her to his home in the absence of his daughter; that she refused and—
“Q. Why did you refuse?
“A. Because I thought I didn’t'want to go up there and stay with him when his daughter was away and then go out when she come back. I don’t think I have to go out of the back door for anybody. I ain’t that kind of a woman. I don’t go and stay with a man during the night and then—
“Q. Why didn’t you go back there and take up your name and go on and live there as husband and wife in their own home?
“A. Because he didn’t invite me to do that. He didn’t want to clothe me and support me. He said if I went back to him I would have to buy my clothes.
“Q. He didn’t want you to come to him then?
“A. Not to live with him, except for pleasure, that is all.’’
The testimony quoted indicates the purpose of such cohabitation as there was. The record fails in proof to establish an intent or purpose to renounce the separation agreement, and such proof was essential to setting it aside. The case is ruled by Miller v. Miller, 227 Mich. 684, which see.
Plaintiff is not entitled to alimony. The amount paid under the agreement will be regarded as a provision in lieu of dower to satisfy 3 Comp. Laws 1915, § 11436.
The decree so modified is affirmed, without costs.
McDonald, Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Per Curiam.
This case is a companion of People v. Dudgeon, ante, 26, and is ruled thereby.
Judgment reversed and new trial granted. | [
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Moore, J.
Plaintiffs made application for the use of the auditorium in the River Rouge school for the evenings of March 17, July 17, and October 17, 1924. The petition was intended to comply with the provisions of Act No. 318, Pub. Acts 1917 (Comp. Laws Supp. 1922, § 5870 [107]). Their application was denied by the school board. A writ of mandamus was issued by the circuit judge, directing the school board to grant the use of the auditorium for those dates. The school board brought the case into this court by writ of certiorari.
The case was argued and submitted in this court October 7, 1924. The last brief on the part of the plaintiffs was filed in this court November 5,1924, and the last brief on the part of the defendants was filed October 16, 1924. A recital of these dates shows that the case at this time is academic.
We have often held that, when a case presents simply abstract questions of law which do not rest on existing facts, and when action by this court would be futile, we will not decide the questions thus presented. Some of the cases are Carlson v. Wyman, 189 Mich. 402; Blickle v. Board of Education, 210 Mich. 196; Tierney v. Union School District, 210 Mich. 424, and the many cases cited therein.
Writ is dismissed, without costs to either party.
McDonald, Steere, Fellows, and Wiest, JJ., concurred with Moore, J. | [
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Sharpe, J.
The plaintiffs are farmers and fruit growers. The defendant corporation is engaged in canning and shipping fruit. In 1922 it was operated by the defendant Dalton F. Carpp. During the summer of that year a written contract was entered into by the several plaintiffs, as growers, with the canning company, whereby the plaintiffs individually agreed “to grow and deliver” to it their entire crop of peaches, estimated at a stated number of bushels, upon the following terms and conditions:
“That the party of the first part may either can or sell fresh said produce on a co-operative basis charging for same the actual expense of canning and selling same and an additional charge of 10 per cent, if canned, and 5 per cent, if sold fresh. It is further agreed that the party of the second part shall deliver said produce in accordance with stipulations made by a growers committee, organized from among the growers to co-operate with the board of directors of the said party of the first part. Final settlement will be made according to a certified audit.”
In some of the contracts there was provision for delivery of “about” a certain number of bushels and “balance of crop if he sees fit.” There was no compliance on the part of the plaintiffs with the provision for a “growers committee.” The contract was construed by the parties to also include plums. A large quantity of peaches and plums was delivered by plaintiffs under these contracts and accepted by the company without suggestion or complaint as to their quality. The company failing to make settlement or furnish “a certified audit,” plaintiff began this suit for an accounting and for a decree for the amount due them.
The trial court found that there was due plaintiffs collectively the sum of $2,139.24, and entered a decree therefor. Both parties appeal. Defendants claim that the proofs show that a loss was sustained in handling the fruit under the terms of the contract, while plaintiffs claim the decree should have awarded-them $4,665.13.
The record contains an audit of the books of the company by Ernst & Ernst. From it the court made the following finding:
“Peaches Plums Total Basis
Gross Sales of Proration
Canned Fruit ..........$7,488.23 $6,847.80 $14,336.03
Fresh Fruit............ 49.00 49.00
Total..............$7,537.23 $6,847.80 $14,385.03
Less: Returns and Allo-wances ........... 85.10 90.00 175.10
Net Sales $7,452.13 $6,757.80 $14,209.93"
Defendants had on hand at the time the audit was made peaches of the then value of $2,008.12 and plums of the then value of $1,627.87. These were afterwards sold, the receipts therefor being but $1,164.21. The court found that the total amount which defendants had received and with which they should be charged was $15,374.14. He allowed defendants for their expense in handling the fruit $11,699.94, for commission on canned fruit 10 per cent., $1,532.51, on fresh fruit $2.45, a total of $13,234.90, and gave plaintiffs decree for the difference between these amounts, $2,139.24.
The above figures as to receipts by defendants are taken from the audit of their books, and, while their counsel here makes claim that peaches “consigned to the dump” because unmarketable were not considered, we are of the opinion that this claim is not well founded. The audit, however, showed a total charge exceeding the receipts of about $1,000. This difference is due to the refusal of the court to allow items for fire and liability insurance, taxes, depreciation of machinery and equipment, depreciation of buildings, and traveling and advertising expenses. The trial court was clearly right in refusing to allow these charges. The contract provided that the company should receive “the actual expense of canning and selling” the fruit delivered and “an additional charge of ten per cent, if canned, and five per cent, if sold fresh.” It seems clear that this commission was intended to cover the above items. Of the decree the defendants have no cause for complaint.
Plaintiffs insist that the defendants should be charged with the then value of the fruit on hand at the time the audit was made; that it was their duty to have sold it at that time and, if they kept it to speculate upon, they must stand the loss. Under the contracts, the duty of selling the fruit at the best price obtainable rested on the canning company. Had the plaintiffs appointed the committee provided for in the contract, the company would doubtless have conferred with them as to when sales should be made. They did not do so and, it appearing, as found by the trial court, that the company acted in good faith and not only received no advantage from the delay in making sale but lost the excess commission it would have received had the sale been earlier made, we see no reason for charging the company with moneys it did not actually receive.
The court allowed an item of $382.70 for “Truck expenses and repair.” Plaintiffs insist that this should be reduced to $78.26. It does not seem to have been questioned on the hearing. There is little proof to support its allowance. It is apparent, however, that the trial court gave all these items close scrutiny. The charges as they appear in defendants’ books are not in the record. We are unwilling to disturb the allowance as made by him.
The decree is affirmed. Both parties having appealed, no costs will be allowed.
Clark, C. J., and McDonald, Bird, Moore, Steebe, Fellows, and Wiest, JJ., concurred. | [
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McDonald, J.
This action is upon a promissory note for $500 given by the defendants on July 12, 1921, payable to the plaintiff 30 days after date with interest at 7 per cent, after maturity until paid. The defense is fraud and failure of consideration. At the conclusion of the proofs the court directed a verdict for the plaintiff. Error is assigned on various rulings excluding testimony offered by the defendants and on the action of the court in directing a verdict for the plaintiff.
The defendants are officials of the Holy Trinity Evangelical Lutheran Church of Flint, Michigan. They desired to purchase a lot adjoining that upon which their church is built. The lot was owned by Clarence Cameron. The negotiations were carried on by J. O. Andrews, a real estate broker. The plaintiff is his uncle. The agreement for the purchase .of the lot was made at the home of one of the defendants. Both J. O. Andrews and the plaintiff were present. The purchase price of the lot was to be $3,600, on which an initial payment of $500 was required. The defendants did not have the money with which to make this payment. The plaintiff agreed to loan them that amount on their 30-day note. The defendants accepted his offer and the note in suit was given. The money did not come into the hands of the defendants but was paid to J. O. Andrews, who turned it over to Mr. Cameron. At the time of the agreement to purchase the lot, it was understood and agreed that the defendants would be furnished with an abstract showing a clear title in Mr. Cameron. Subsequently the defendants sought a loan to be secured by a mortgage on the lot from the First National Bank of Flint, with which to pay the $500-note and the balance of the purchase price. An examination of the abstract showed liens on the property for two or three years of unpaid taxes. Mr. Cameron refused to discharge these liens and the bank declined to make the loan. Thereupon the defendants repudiated the contract of purchase and demanded of the plaintiff a return of their note.
It appears that the defendants acting for their church felt compelled to purchase the lots in order to silence Mr. Cameron, who was threatening them .with injunction proceedings on account of the violation of certain building restrictions shown in the plat. They had secured a release of the restrictions from all of the property owners except Mr. Cameron. His property adjoined the lot on which it was proposed to erect the church. The plaintiff says that he knew Cameron to be a fighter and that the litigation would create a bad feeling in the neighborhood and would be detrimental to the church, and that his only purpose in interesting himself in the transaction, was to bring about an amicable adjustment of the controversy. Mr. Carlson, one of the defendants, testifies that at the meeting when the agreement to purchase the lot was made:
“He (the plaintiff) told us men he thought it rather unbecoming a church to get into litigation with Mr. Cameron. I thought so too. The back end of our church would be right up against the Cameron property. I think it was talked there that night that Cameron claimed it was going to depreciate his property; J. E. Andrews lived on that plat. He was the one who offered to loan us $500. After he went away and after J. O. Andrews went away, we four men talked it over and decided that was the proper thing to do. We agreed among ourselves to borrow that $500 from J. E. Andrews and give our note for it.”
We have not discovered any evidence in this record showing or tending to show fraud or misrepresentation on the part of the plaintiff. If the note had been given to Mr. Cameron and he was suing on it, the situation would be different. But this plaintiff was not interested in the transaction except in the sense that he was willing to loan defendants the amount of the first payment on the contract in order to prevent litigation that would create a harmful atmosphere in the community where he lived. He was not acting as the agent of Mr. Cameron and was in no other way financially interested in the property. In view of the undisputed testimony as to the plaintiff’s connection with the entire transaction, it is plain that there is no legal defense to this action and that, therefore, the court did not err in directing a verdict in his favor.
No other assignments of error require discussion. The judgment is affirmed. The plaintiff will have costs.
Clark, C. J., and Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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WlEST, J.
April 26, 1924, plaintiff was controller of the city of Detroit, holding office at the pleasure of, and removable, without cause, by the mayor. Detroit Charter, tit. 4, chap. 6, § 1. That day, defendant Joseph A. Martin, acting mayor of the city, removed plaintiff from office and appointed defendant Richard W. Reading. Plaintiff filed the bill herein to enjoin his removal and entry to the office by Mr. Read ing, obtained a temporary injunction, which was dissolved upon the coming in of answer, and the case is here by appeal for hearing on bill and answer, both under oath.
January 8, 1924, defendant Martin, by reason of sickness of the mayor, became acting mayor, and has since performed all the duties of the office. Detroit Charter, tit. 4, chap. 3, § 4, provides:
“Section 4. In case of a vacancy in the office of mayor, or his inability to perform the duties of the office by reason of sickness, absence from the city, or other cause, the president of the common council shall be acting mayor, and in case, at the time, there shall be a vacancy in the office of the president of the common council, or he shall be unable to perform the duties of his office by reason of sickness, absence from the city, or other cause, the president pro tempore of the common council, shall be acting mayor. Such acting mayor shall be vested with all the powers, and shall perform all the duties of mayor until the vacancy or vacancies aforesaid be filled, or the mayor or president of the common council, as the case may be, shall resume his office. In case of vacancy in the office of mayor, the council shall order a special election to fill such vacancy for the residue of the term, unless it shall occur within six months before the time for holding the regular election, in which event, the council may in its discretion order such election.”
We are asked by plaintiff to limit the powers of the acting mayor to a carrying out of the policies of the mayor, as it is claimed such a holding will prevent confusion, disruption and disorganization. The charter places no such limitation upon the powers of the acting mayor. The charter speaks in plain language and vests the acting mayor with all the powers of the mayor. There was no vacancy in the office of mayor to be filled by special election under order of the council. The mayor was unable to perform the duties of the office by reason of protracted sickness, and, therefore, the charter provision became fully operative to meet the situation.
This case is not at all like Cytacki v. Buscko, 226 Mich. 524, for it presents none of the absurdity there apparent. There a mere temporary absence of the mayor of the city of Hamtramek was seized as an opportunity for ousting one of his appointees. A mayor may, by reason of sickness, be unable for one or several days to perform the duties of his office without bringing an acting mayor to the office. Common sense runs along with charter provisions and prevents absurd application thereof. In the case at bar defendant Martin has for many months performed all the duties of mayor.
Plaintiff claims the mayor appeared in the office April 25, 1924, and advised defendant Martin not to attempt to remove him. Defendant Martin denies any such instruction or advice. We do not deem the incident of any importance. Defendant was acting mayor and the official toga was not shifted by the momentary appearance of the mayor, who came from and returned to a hospital. This constituted no resumption of official duties by the mayor within the meaning of the charter provision. Under the charter and the admitted facts it must be held that the acting mayor was well within his powers in removing plaintiff and the injunction was properly dissolved.
The action of the circuit judge is affirmed, with costs to defendants.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steeee, and Fellows, JJ., concurred. | [
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Wiest, J.
In this case we determine whether the following- option to purchase expired at the end ,of 10 years, or remained until the expiration of the full holding under the lease. The lease was made February 25, 1905:
“For the term of ten years from and after the 24th day of February A. D. 1905, with the privilege of a renewal for five additional years, on the same terms. * * *
“First parties do hereby bargain and sell unto second party the exclusive right and option to purchase the premises hereinbefore described, at a price not to exceed one hundred twenty-five dollars ($125.00) per acre, provided, however, that said right must be exercised immediately upon the termination of the lease or during the last three months thereof and that second party shall give to the first party at least thirty (30) days’ notice in writing of such intention to purchase.”
The right to the renewal was exercised, and notice of election to purchase was given during the renewal period. Defendants, claiming the option did not extend beyond the 10-year period, refused to perform by deed, and plaintiff filed the bill herein to have specific performance decreed. In the circuit decree passed for plaintiff, and the case is here on appeal by defendants.
The parties agreed that the option to purchase might be exercised at any time before the termination of the lease. When did this lease terminate? The lease was a present demise for the period of 15 years at the option of plaintiff. Delashman v. Berry, 20 Mich. 292 (4 Am. Rep. 392); Flynn v. Bachner, 168 Mich. 424 (Ann. Cas. 1913C, 641). The lease itself extended the term. Luthey v. Joyce, 132 Minn. 451 (157 N. W. 708, L. R. A. 1916E, 1235); Bergstein v. Bergquist, 152 Minn. 358 (189 N. W. 120). The parties contracted for a 15-year holding by plaintiff, if plaintiff so desired, and certainly there could be no termination of the lease until the right to hold theréunder ended. The lease expressed no new purpose and carried no limitations during the extended period. The lease constituted the option to purchase a covenant running with the demise of the land.
Defendants contend the lease and the option to purchase are as separate and distinct as though in separate instruments, and neither depends for validity upon the other. Upon this premise they say the renewal clause applies only to the lease and not to the option to purchase. This ignores the option to purchase as a substantial part of the contract and was well answered by the court of appeals of Maryland in Stansbury v. Fringer, 11 Gill & J. 149 :
“Where a contract consists of several distinct and separate stipulations on one side, and a legal consideration is stated on the other, it must be considered that the entire contract was«*in the contemplation of the parties in each particular stipulation.; and formed one of the inducements therefor, and no one stipulation can be supposed to result from, or compensate for the consideration, or any portion of it, exclusive of other stipulations, unless the parties have expressly so declared; and this will be the case, whether the consideration be a sum of money to be paid in gross, or a specific act to be performed, or several payments in money, or several acts to be performed. ' It is impossible to say in this case, from the face of the contract, that the appellee would have agreed either to occupy the land, or to pay the taxes or to erect a house, except for this very privilege of purchasing the title, which he now seeks to enforce.”
The option to purchase was not an agreement apart from the lease itself. We do not agree with counsel that such a provision is unusual in leases. The parties made the option to purchase an integral part of the lease, and we are not inclined to dismember their contract. The contract was made as a whole, and must be considered as such.
An option accorded a lessee to purchase premises during the term is not an agreement foreign to a lease, but quite intimately connected with the contract, for it permits the tenant to make improvements of a permanent nature without endangering loss thereof at the expiration of the lease. This was true in the case at bar, for the plaintiff wanted the use of the premises in connection with its clubhouse and its adjoining holdings and rented and improved the premises, knowing it had the right to purchase at the agreed price at the close of its tenancy.
“It is common for leases to contain a provision conferring an option upon the tenant to purchase the demised premises.” 35 C. J. p. 1038, § 181.
“An option to purchase, being an integral part of a lease, is a substantial part of the whole contract.” 35 C. J. p. 1038, § 182.
The circumstances under which the lease was made clearly establish that the option to purchase was not an agreement independent of the lease. See Wright v. Kaynor, 150 Mich. 7.
“Whether the option to purchase contained in a lease is an independent agreement, or, in connection with the lease, forms one entire agreement, depends upon the intention of the parties, and this is to be resolved by the construction of the instrument read in the light of its circumstances.” Thompson v. Coe, 96 Conn. 644 (115 Atl. 219, 17 A. L. R. 1233).
The case at bar is not like Mathews Slate Co. v. New Empire Slate Co., 122 Fed. 972, cited by defendants as authority for dividing the covenants of the leases into independent parts. There the option to purchase in no wise depended upon performance of the lease, and the court could not say it was a part of the consideration for the lease. Here the option to purchase was a moving cause for the lease and had to be exercised while the lease was in force. Counsel speak of a renewal as something distinct from a continuation. Modern authority spends no time splitting hairs over the technical meaning of the word “renewal” as employed in such a lease as this. Orr v. Doubleday, Page & Co., 223 N. Y. 334 (119 N. E. 552, 1 A. L. R. 338). The right to remain beyond 10 years was in the lease, and no renewal was contemplated or required for the demise for the five years was in praesenti to take effect in futuro at the option of the lessee. The lease and the option to purchase were inseparably connected. When the lease terminated the option terminated; but until the lease terminated the option was open to acceptance.
Counsel for defendants call our attention to Parker v. Lewis, 267 Pa. 382 (110 Atl. 79), and Signor v. Keystone Consistory A. A. S. R., 277 Pa. 504 (121 Atl. 320). In the Parker Case the lease was for eight years, with option to purchase limited to five years. The option to purchase was not exercised within five years, and the court held the option dead and not revived by subsequent renewals of the lease. In the Signor Case the option ended at a fixed date and it was held a renewal of the lease did not carry the option beyond such fixed date. The same is to be said of Feudtner v. Ross, 74 N. J. Eq. 214 (69 Atl. 190). The cases just mentioned have no‘'application to the question at bar. This option ran until termination of the lease and this included the period of extension. Waters v. Wambach, 140 Md. 253 (117 Atl. 751); Thomas v. Brewing Co., 102 Md. 417 (62 Atl. 633); Maughlin v. Perry, 35 Md. 352; Masset v. Ruh, 235 N. Y. 462 (139 N. E. 574).
“Where the lease confers the right to purchase at any time during the term, it may be exercised during a renewal term, acquired under an option in the lease for a renewal upon the terms and conditions of the original lease.” 85 C. J. p. 1043, § 188.
The lease ran 15 years; so did the option to purchase.
The decree in the circuit is affirmed, with costs to plaintiff.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steere, and Fellows, JJ., concurred. | [
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Butzbl, J.
In 1901 Abraham Avery-and Frances A. Avery, his wife, deeded to William A. Boland a strip of land two rods in width from their farm in Jackson county, Michigan, the deed containing’ the following condition:
“In the event of the abandonment of this strip for electric car line for a period of two years, same shall revert to the grantors, their heirs and assigns.”
Shortly thereafter an electric railroad was constructed and maintained until 1929, when it ceased operating.
In 1908, Frances A. Avery, as survivor of herself and Abraham Avery, conveyed the entire farm to Mary Vinnie Avery and Elmer K. Avery, two of her children, the deed containing the following exception :
“Excepting the rights of the Jackson & Battle Creek Traction Company in their right of way across said land, or the successors of said company. ”
It also contained the further provision:
“This conveyance is to take full force and effect only upon the decease of the said first party. ’ ’
Frances A. Avery died February 8, 1926, leaving as heirs Mary Vinnie Avery and Elmer K. Avery, the plaintiffs, and Eli A. Avery. In the probate proceedings, the farm thus deeded to the plaintiff was not listed among the assets of the estate. Upon the death of Mrs. Avery the deed to Vinnie Avery and Elmer K. Avery was recorded, and the latter, claiming under said deed, have brought ejectment proceedings against the Consumers Power Company, which acquired the above-mentioned strip of land by mesne conveyances, after it had ceased to be used for an electric car line.
The clause in the first deed providing for a reverter in the event of the abandonment of the electric car line for a period of two years, has been construed in Rhines v. Consumers’ Power Co., 259 Mich. 236, to be a condition subsequent. In the instant case, the trial court held that plaintiffs could not maintain the action because they had never held title- to the strip of property, for in the deed by virtue of which they assert their claim, Frances A. Avery expressly excepted the right of way of the railroad; further, that they could not claim for breach of the condition subsequent because they were not claiming as heirs of Frances A. Avery and Abraham Avery, and at the time their deed took effect, on February 8, 1926, the railroad company had not yet abandoned the right of way. For these reasons a verdict was directed for defendant.
"When Frances A. Avery, by her deed to the plaintiffs, attempted to convey to them the right of reverter before breach, that right was destroyed. A condition subsequent annexed to real estate can be reserved only to the grantor and his or her heirs. In County of Oakland v. Mack, 243 Mich. 279, the question is carefully discussed, the court in its opinion quoting with approval from the syllabus in Rice v. Railroad Co., 12 Allen (94 Mass.), 141 (90 Am. Dec. 141), as follows:
“The right or possibility of reverter which belongs to a grantor of land on condition subsequent is extinguished by a conveyance thereof by deed to a third person before entry for breach of condition; even though such conveyance be to a son of the grantor, who upon the grantor’s death becomes his heir, ’ ’
It lias been settled beyond any question in this jurisdiction that a deed attempting to convey the right of reverter before breach not only conveys nothing, but destroys the right which it attempts to convey. Halpin v. Rural Agricultural School District, 224 Mich. 308 (1923), and Fractional School District v. Beardslee, 248 Mich. 112 (1929).
The rule that the right to a reverter upon the breach of a condition subsequent is lost upon conveyance of the property with the right of reverter prior to the breach, is of ancient lineage. Although its origin has not been definitely determined, it is found in i Sheppard’s Touchstone (1651), chap. 6, p. 158, and has appeared in all the treatises on the common law since then. Coke in 2 Coke on Little-ton, p. 214 (a), describes as the reason for the rule the policy of the law to prevent champerty and maintenance. Other authorities claim, however, that it originated in the doctrine of the earlier common law that dioses in action were strictly personal obligations which, in the very nature of things, could not be assigned. See, “Mystery of Seisin,” Maitland, 2 Law Quarterly Review", p. 481; £ £ The Disseisin of Chattels,” Ames, 3 Harvard Law Review, p. 337. Notwithstanding the contention that the rule is illogical and unjust, it has been almost universally adopted by all the courts in this country, and is a rule of property wdiich it is our duty to maintain. For a very complete history and discussion of the rule see L. R. A. 1916F, 311.
We do not find any merit in appellants’ contention that the contract contained in the deed to Boland provided for the reversion to the grantors and their heirs. The case is governed by Halpin v. Rural Agricultural School District, supra, in which the rule was applied to a similar provision in the con veyance. Nor do we believe the fact that the "two plaintiffs are also heirs of Frances A. Avery changes the situation. They claim rights as grantees under the deed, which acted as a conveyance passing a present vested interest in the land. It has been repeatedly held that when a grantor deposits a deed with a third person to be delivered to the grantee after the death of the grantor, the latter reserving no further control over the instrument, there is a complete delivery, and an immediate estate is thereby vested in the grantee. See, Peterson v. Bisbee, 191 Mich. 439; Cook v. Sadler, 214 Mich. 582; Lapham v. Lapham, 239 Mich. 237; and decisions cited in 52 A. L. R. 1247.
The judgment is affirmed, with costs to appellee.
Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Fead, J.
A head-on collision occurred between an automobile driven by plaintiff and a red truck owned by defendant. The sole issue as to negligence was which car was on the wrong side of the road. Plaintiff testified that she was always on the right side. Defendant claimed she was on the left side, attempting to pass another car. The case was submitted to the jury on special questions. Defendant had verdict and judgment on its cross-action.
Defendant’s counsel asked a witness whether, immediately after the collision, plaintiff had said anything about how the accident had happened. The Avitness answered that plaintiff had said she did not know. On re-direct, plaintiff’s counsel asked for the balance of her statement, if any, about the cause of the accident. The court excluded the testimony. The Avitness would have testified that plaintiff added:
“Except that a red car turned right into me and struck me.”
The exclusion of the testimony Avas error. Atherton v. Defreeze, 129 Mich. 364; Lichtenberg v. Mair, 43 Mich. 387. It was prejudicial because the whole statement would have negatived the impression left by the record as it stands,-that-plaintiff -had manufactured her testimony; '
Judgment reversed, with new trial, and costs to plaintiff.
McDonald, C. J., and "Weadock, Potter, Sharpe, North, Wiest, and Blitzed, JJ., concurred. | [
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Potter, J.
Lena Hyde, as plaintiff, recovered a judgment against Yale State Bank for $3,175.82 and costs. Rudolph E. Reichert, State banking commissioner, took possession of the bank and appointed Guy E. Beard conservator of its assets. Plaintiff filed a bill against Reichert, State banking commissioner, and Beard, conservator, to prevent defendants from acting, for a receiver to be appointed by the court to direct a necessary assessment of stockholders, to wind up the affairs of the bank and for other relief. The attorney general, on the relation of Rudolph E. Reichert, banking commissioner, filed a bill alleging the Yale State Bank was closed by executive order of the commissioner, that the banking commissioner, under Act No.'32, Pub. Acts 1933, appointed Guy E. Beard conservator, who had qualified; that the judgment of Lena Hyde, above mentioned, was for a savings account; that she threatened to procure an execution and levy upon the property of the bank; that to permit her to do so would be in violation of Act No. 32, Pub. Acts 1933, unlawful, illegal and would cause irreparable injury to other depositors, and that the action of said Lena Hyde constituted a collateral attack upon and an interference Avith the sovereign powers of the gwernor of the State, and asked for an injunction restraining the prosecution of the suit begun by Lena Hyde.
Plaintiff, in the original case, who Avas made defendant in the suit by the attorney general, moved to dismiss the bill of complaint of the attorney general, alleging plaintiff had no implied or statutory authority to bring the action, the court had no jurisdiction over the defendants or over the property forming the subject matter thereof; the bill of complaint failed to state an equitable cause of action or subject of equitable relief; the alleged equities in the attorney general’s bill were founded upon illegal and void acts upon the part of the governor and the banking commissioner, based upon an unconstitutional and void enactment of the legislature known as Act No. 32, Pub. Acts 1933. Act No. 32, Pub. Acts 1933, is attacked as unconstitutional and void; because its title does not disclose the object of the enactment; it attempts to impair the obligation of contracts; deprives creditors of banks of their property without due process of law; denies to creditors of banks the equal protection of the laws; attempts to curtail and invade the judicial power; delegates to a commissioner and appeal board judicial functions; delegates to a commissioner and appeal board the legislative functions of declaring laws that shall govern the rights and remedies of creditors; transfers to the ^executive department of the State legislative functions; and because it is arbitrary, capricious, unfair and unreasonable and contrary to public welfare.
This motion was overruled, and plaintiff in the original suit, Lena Hyde, appeals.
By briefs filed the discussion of the constitutional questions are eliminated and the questions to be decided are limited to whether the circuit court for the county of Ingham in chancery had jurisdiction, and whether plaintiff was required to give a bond.
Section 13997, 3 Comp. Laws 1929, in part is as follows:
“When it may be necessary to file a bill or information or to commence any proceedings in chancery on the part or in behalf of the State, the same may, at the election of the attorney general, be commenced in the circuit court for the county of Ingham on the equity side thereof, and said court shall have complete jurisdiction and full power and authority in the premises.”
Section 11951, 3 Comp. Laws 1929, provides:
“All suits and proceedings arising out of the provisions of law governing banks in which the State or any of its officers or agents shall.be parties plaintiff’ shall be conducted under the direction m%d supervision of the attorney general and may be brought iu the circuit court for the county of Ingham, or in the circuit court of the county in which the bank is located or in the Supreme Court of this State. ’ ’
A similar statute applies to suits and proceedings concerning trust companies. 3 Comp. Laws 1929, § 12034.
This suit arises out of the provisions of the law governing banks. It was instituted on the relation of a State officer, the commissioner of banking. It is being conducted under the direction and supervision of the attorney general. It is properly brought in the circuit court for the county of Ingham in chancery.
‘ ‘ The powers and jurisdiction of the circuit courts and circuit judges in chancery, in and for their respective counties shall be co-extensive with the powers and jurisdiction of the courts and judges in chancery in England as existing on March 1, 1847, with the exceptions, additions and limitations created and imposed by the Constitution and laws of this State.” 3 Comp. Laws 1929, § 13944.
In England, where a suit is brought on behalf of the Crown, in which application is made for a preliminary injunction, it is not according to the ordinary practice of the court to require any undertaking as to damages to be given as a condition of obtaining the injunction. Attorney General v. Albany Hotel Co., 2 Ch. (1896) 696; 32 C. J. p. 313.
The general rules requiring injunction bonds do not apply to an injunction restraining all action against an insolvent company or interference with its assets until further order of the court, where such injunction is incidental to a receivership. Phoenix Foundry & Machine Co. v. North River Construction Co., 33 Hun (N. Y.), 156.
It would be anomalous for the State to enact that the State give a bond as a condition precedent to State action. It is just as liable without a bond as with one. No injunction bond was required. The circuit court for Ingham county, under Act No. 32, Pub. Acts 1933, and the general banking law had jurisdiction, and having it, may retain it to grant complete relief.
The decree of the trial court is affirmed, but without costs.
McDonald, C. J., and Sharpe, North, Pead, Wiest, and Btjtzel,. JJ., concurred. Clark, J., took no part in this decision. ' | [
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Per Curiam.
After decree of foreclosure of real estate mortgage, sale to plaintiff, and confirmation of sale by the court, defendants filed petition to set aside the order confirming sale and for continuance of the cause until March 1, 1935, as provided in the emergency moratorium statute, Act No. 98, Pub. Acts 1933. In effect, the petition is for extension of the period of redemption. Motion to dismiss the petition was granted on the ground that the statute is invalid because it impairs the obligation of contracts, in violation of the United States Constitution, art. 1, § .10, and Michigan Constitution, art. 2, § 9.
Since the petition was heard, the Supreme Court of the United States has sustained, 'as not in violation of the Federal Constitution, a Minnesota moratorium act extending the period of redemption of real estate mortgages under conditions of payment of rent, rental value, income and profits to the discharge of charges against the property, upkeep and debt, similar to those in our statute. Home Building & Loan Ass’n v. Blaisdell, 290 U. S. 398 (54 Sup. Ct. 231, 88 A. L. R. 1481).
Because the constitutional provision is identical in both Constitutions, we are constrained to adopt the ruling as the- construction, of the clause in our State Constitution upon the situation at bar.
The order of dismissal will be set aside and the cause remanded for further proceedings upon the petition, but without costs. | [
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Potter, J.
Defendant Dellabonda, convicted of first-degree murder of Claude Lanstra, June 1,1930, in Grosse Pointe township, Wayne county, appeals, claiming the trial court should have granted a motion to quash the information; errors in the introduction of testimony, the charge of the court to the jury, and in failure to charge the jury as requested.
June 1, 1930, about 2:30 a.m., two patrolmen of the Grosse Pointe Park police force were shot and killed. One Frank Salimone and appellant were charged therewith, and on trial convicted. The examining magistrate, finding the offense to have been committed, and reasonable cause to believe the accused guilty thereof, bound defendants over to the circuit court for trial, where an information charging them with murder was filed July 16, 1930, whereupon defendants moved to quash the information because of the insufficiency of the evidence before the examining magistrate, and the failure of such evidence to establish cause to believe defendants guilty of the offense. A motion for a separate trial of each defendant was made. Notice of alibi was filed by defendant Salimone. Both the motion to quash and the motion for separate trials were denied. ■ November 19, 1931, the case came on for trial in the circuit court before a jury, and December 21, 1931, a verdict of guilty of murder in the first degree was returned. January 7, 1932, a motion for a new trial was made, and later additional affidavits in support thereof were filed. January 14, 1932, both defendants were sentenced to be confined in the Michigan State prison at Jackson for the term of their natural lives. February 10, 1932, motion for a new trial was denied, and application for leave to appeal filed March 2, 1932. Defendant S alimone is now dead.
To authorize the examining magistrate to bind appellant over for trial there must have been good reason to believe appellant guilty of the crime charged. Some cases hold a prima facie case against the accused must be made out. This court has not defined what constitutes probable cause, leaving each case to be determined upon its facts. Bouvier defines probable cause as, “A reasonable ground of suspicion, supported by circumstances sufficiently strong in themselves to warrant a cautious man in the belief that a person accused is guilty of the offense with which he is charged.” 3 Bouvier’s Law Dictionary (Rawle’s 3d Rev.), p. 2728.
At the time of the examination of appellant there was proof the two policemen had been murdered. There was testimony by Arnold, the fisherman, appellant was at the river bank on the night in question when the automobiles of rum-runners were chased by Federal officérs; that appellant then had a gun which he pulled from his belt and showed to Arnold, saying, “I guess this is ready for action.” After which he ran across the field -with the gun in his hand. After the shooting it appeared appellant was away for some time or secreted. The car which the people claimed ivas used at the time of the killing belonged to Samuel Ricca. It appeared to have been shot at. A number of empty brass pistol shells were found on the floor of the car. The deceased was killed by a 45-calibre pistol bullet. There was other testimony tending to connect appellant with the case. Primarily the question of probable cause is for the consideration of and determination by the examining magistrate. This court may not agree with the findings of such magistrate but it has no right to substitute its judgment for his except in case of a clear abuse of discretion. We cannot say there was an abuse of discretion on the part of the examining magistrate and decline to hold he erroneously bound appellant over for trial.
It is claimed the court erred in not excluding the testimony of Hugh Anderson that while on the street prior to the shooting someone said, “There they are.” Anderson had testified he and other witnesses for the people and other persons not definitely identified were, prior to the shooting, standing on the street near where it subsequently occurred; that Robert Collier and James Carlozzi drove up in a Chrysler coupe, that Collier asked if we saw any cars coming up from the river and asked what they looked like and we told him. The statement someone said “There they are” was not made in the presence of appellant nor was it called to his knowledge. The witness testified Carlozzi turned to Collins and said, “That is Frank driving.” All this testimony was objected to for defendants as incompetent conversation between third persons not in the presence of defendants, and when the witness testified someone unknown said “There they are” counsel for defendant moved to strike out such testimony. It is not shown to have been made by either Collier or Carlozzi. This testimony was clearly within the exclusionary rule of res inter alios acta, elucidated and applied in Detroit & Milwaukee R. Co. v. Van Steinburg, 17 Mich. 99, where a witness testified against objection as to what some unidentified party said, and this court said:
“When the witness, S. Ii. Coon, was on the stand, he was asked the question, which I think entirely proper: ‘Was your attention at the time called to the fact, whether or not the train came in without sounding the bell or whistle?’ To which his reply was: ‘It was talked of at the time, that the train came in without ringing the bell.’ And, in reply to a similar question, George W. Coon says: ‘My attention was called to it; I heard someone say it was not rung.’ Each of these replies was objected to, and in each case it is evident that the witness, instead of confining himself to a proper answer to the question, was allowed to bring before the jury the statements of persons who were not only not sworn, but whose names, even, were not known. It was impossible that such statements should be without influence upon the jury, especially as what these unknown persons are reported to have said had a tendency to support a portion of the sworn testimony against another portion upon a disputed point. And, as this testimony from the Coons was incompetent and inadmissible for any purpose, I do not think the error committed in admitting it was cured by the instruction of the judge to the jury that they ought not to consider it as proof of a substantive fact, as it was only proper as showing- that the attention of witnesses was called to the ringing, or not ringing, of the bell.”
Though this testimony was improperly admitted and should have been excluded, the people contend its reception was not prejudicial. That depends upon the use made of it.- What use was made of this testimony? The acting prosecuting attorney in Ms opening argument said:
“They described to you how this Chrysler car drove up, and they described to you how the Chrys ler car was parked. They told you that Carlozzi and Collier were there. They were not men, members of the jury, that were interested in whether Carlozzi was dead or alive. They were not men who were interested in whether Collier was dead or alive. They were not men who were interested in whether or not Mangiaponi was dead or alive. They were not interested in whether or not Tupancey was dead or alive. They were interested, if you please, ladies and gentlemen, I submit, in telling you the truth as they saw it there. Didn’t they describe to you how those men were there on the sidewalk? How the inquiries were- made by Collier and Carlozzi as to what they had seen, as to whether they had seen a Federal car, or as to whether they had seen cars come up from Jefferson avenue or below Jefferson avenue from the river. They described to you how Collier says, ‘Stick around, you are going to see some excitement.’. I wonder what they had in mind. They described to you how one of these men was there. And one of them exclaimed as this Cadillac coupe drove up there, ‘This is the follow car.’ ”
In the people’s argument this seemingly unimportant remark improperly admitted, attributed to no one, is made the connecting link between appellant and the shooting. It being claimed Dellabonda was at the riverfront armed with a 45-calibre pistol ; that Frank was defendant Salimone; that Salimone was driving one car and the follow car was coming up from the river. Not only was the testimony incompetent but it was misquoted to the jury by the acting prosecuting attorney and as used was prejudicial.
The people claimed both Salimone and Dellabonda were’ engaged in a conspiracy to violate the United States tariff act, the United States prohibition act and the prohibition act of the State of Mich igan; that this conspiracy was of such a nature that it contemplated homicide if necessary; that in pursuance of such conspiracy respondents and others were armed with revolvers and pistols; that “Boh” Collier was at the time the acting head of the rum-running conspiracy. Harold Ernst testified, against objection of defendants that it was immaterial and hearsay, that he was one of the parties standing on the sidewalk near where the shooting occurred just prior thereto when Collier and Carlozzi drove up in the Chrysler coupe and that Collier came up and asked him how he was and said to him, “Stick around, you will see some fun.” He says he did not see witness Anderson. This testimony as to the statement of Collier was used to show Collier was not in the Cadillac car, from which the shooting is said to have been done; that Collier had some idea there was going to be some trouble and the occupants of the Cadillac car were going to do some shooting. If Collier was at the head of the rum-running gang and made the remark in question and those doing the shooting were in conspiracy with him, then this testimony was admissible and it was not error to receive it. Whether the remark, if made, was a statement of an individual outside the scope of the conspiracy and not to be considered by the jury or whether it was a statement of a conspirator during the existence thereof of what was likely to happen was under the circumstances a question for the jury and it was not error to permit the testimony to be admitted and considered.
William DeLisle, detective and member of the Blackhand squad of the Detroit police force, searched for the automobile claimed by the people to have been employed by the murderers of Lanstra. DeLisle testified: “We knew where several of the men lived who we believed were engaged in rum-running with Salimone so we started out to search their garages and houses.” No objection to the facts found upon the search for the automobiles is here involved. What was and is objected to is permitting a witness to say “We believed certain persons were engaged in rum-running with Salimone.” This was not a statement of the witness ’ belief only, but a statement of the collective belief of the police detective force of the city of Detroit. It was a conclusion of the witness based, if on anything, on undisclosed facts. Clearly the witness could not testify as to what others believed (Wolverton v. Village of Saranac, 171 Mich. 419), nor express his belief that others were connected with rum-running operations. People v. Row, 135 Mich. 505. His testimony should have been limited to the facts which, if competent, relevant and material, could have been laid before the jury. It was for the jury to draw conclusions from the facts and not for the witness. Zube v. Weber, 67 Mich. 52; Merrill v. Leisenring, 166 Mich. 219; Johnson v. Union Carbide Co., 169 Mich. 651.
Eeception of this testimony was clearly error but we cannot say on this record it was sufficiently prejudicial to alone warrant a reversal of the case. ■
Appellant was placed upon the witness stand and on cross-examination was asked whether he had ever been indicted for a violation of the Federal narcotic law. He testified he had not been so indicted. A certified copy of the indictment against appellant was introduced in evidence to impeach him. In people’s brief it is said:
“If the witness is ashed, on cross-examination, whether he has ever been arrested or indicted, the cross-examiner is bound by his answer, and may not, by other witnesses, show that the witness has been, in fact, arrested or indicted. A witness may not be impeached on collateral matters. Thus, in the case at bar, even though it can be shown by the records of the district court of the United States that Dellabonda, while on the stand as a witness, deliberately perjured himself by denying that he had been indicted in that court, the rule against collateral attack protects him and bars proof of his falsehood. The position, while anomalous in this case, is, in our opinion, nevertheless sound.”
It is settled that a witness may not be impeached on a collateral matter. Mills v. Warner, 167 Mich. 619; People v. Cutler, 197 Mich. 6. It is improper to try collateral issues, not directly involved, diverting the attention of the jury from the essential elements of the case on trial, compelling parties who are witnesses to meet issues they have no reason to anticipate will be raised. Kingston v. Railway Co., 112 Mich. 40 (40 L. R. A. 131).
The important question is whether the reception of this certified copy of indictment against appellant was prejudicial. The question of defendant Salimone selling “dope” had previously been injected into the case on the cross-examination of Salimone; there was testimony that Dellabonda had been picked up by the narcotic squad and though from the standpoint of logic the testimony was only admissible for the purposes of impeachment, it is evident if appellant was charged with a violation of the criminal law in relation to narcotics it was probable he would not hesitate to engage in the illicit traffic of liquors.
Joseph Sandley át the time of the shooting was a member of the Grosse Pointe police force and he says a witness of the shooting. In the regular course of his duty he immediately afterward made a report in writing to his superior officer, the superintendent of police, Mr. Drysdale. This statement in writing made by the witness was present at the examination of defendants. Sandley was there sworn as a witness and described the shooting. On the examination it appeared witness had made a report in writing to his chief. Defendants’ counsel asked to see it. It was objected that defendants’ counsel was not entitled to see the report of the witness unless the witness used it to refresh his recollection. It was claimed it was a confidential police record not open to the public. After some discussion the examining magistrate disposed of defendants’ demand as follows:
“Unless the officer used the statement to refresh his recollection as to what he put in that statement, you are not entitled to see it. If he did use that statement and then got on the witness stand and so testified after refreshing his memory, then you are entitled to it. If he didn’t, you are not. I am absolutely sure I am right so far as the law is concerned. ’ ’
On objection of the assistant prosecuting* attorney the written report of the witness to his chief present in court was not only excluded but defendants’ counsel was denied access to it.
When the people’s witness Sandley, the Grosse Pointe policeman who witnessed the shooting, was on the stand on the trial defendant sought to have produced the written statement made by him immediately after the. shooting, in the line of his duty, to his superior officer, Chief Drysdale.
Upon objection of the people, such statement was excluded. A demand had been made for the produc tion, of this statement on the examination, and it was again demanded on the trial and excluded by the court, not on the ground of the insufficiency of the notice, but on the ground it was not in evidence at the examination, was not in evidence in the case, that the witness had testified on two or three different occasions, and
“If his testimony is at variance, that is a matter of argument as to his credibility. He has testified he did not do this report to refresh his memory, and it is therefore inadmissible, or rather at least, its contents is inadmissible, and so unless the prosecuting attorney voluntarily offers the statement to the counsel for the defendant, this will be the court’s ruling. * * *
‘ ‘ The contents of the report are inadmissible without the prosecutor gives it to you voluntarily, I won’t order him to. * * *
“Mr. Maiullo: Now, if it is lost, your honor, have I then the right to show its contents?
“The Court: No, sir, not under my ruling.”
This is the basis of assignment of error No. 6.
Assignment of error No. 8 relates to the refusal of the court to charge the jury as requested by defendants in their requests to charge Nos. 17, 26 and 27. These requests were as follows:
“17. I further charge you, members of the jury, that the State’s interest in a criminal case is that the accused shall be acquitted unless upon all the facts they are seen to be guilty; and if there shall be in the possession of any of its officers, information that can legitimately tend to overthrow the case, made for the prosecution, or to show that it is unworthy of credence, the defense should be given the benefit of it.
“26. * * * When Joseph A. Sandley presented to Chief Drysdale his written statement of the facts of June 1, 1930, and he now swears to facts altogether different, it may well he argued that he is unworthy of belief, and the State has no interest in interposing any obstacle to the disclosure of the facts, unless it is interested in convicting accused parties on the testimony of untrustworthy persons. That the. State should have no such interest; its interest is that accused parties shall be acquitted unless upon all the facts they are seen to be guilty.
“27. * * * If there shall be in the possession of .any of its officers information that can legitimately tend to overthrow the case made for the prosecution, or to show that it is unworthy of credence, the defense should be given the benefit of it and that it is the duty of the State to produce it.”
(a) It is suggested the proper way to introduce the report of a witness to his superior officer was by way of impeachment by first laying the foundation for such impeachment by asking the' witness appropriate questions. It is well settled the same questions must be asked the witness subject to be impeached as are asked of the impeaching witness. Smith v. People, 2 Mich. 415; Rice v. Rice, 104 Mich. 371; Monroe Lumber Co. v. Bezeau, 192 Mich. 307; Koehler v. Buhl, 94 Mich. 496. This rule does not apply here where the prior statement of the witness in writing was under the control of, or within the knowledge of, the prosecution, and where neither defendant nor his counsel were permitted to have access to it, to learn it's contents, or to introduce it in evidence.
(b) One of the elementary principles of cross-examination is that the party having the right to cross-examine has a right to draw out from the witness and lay before the jury anything tending or which may tend to contradict, weaken, modify or explain the testimony of the witness on direct exam illation or which, tends or may tend to elucidate the testimony or affect the credibility of the witness.
Here the witness'had made a prior report to a superior officer relating to the occurrences involved on the night of the shooting. Defendants had a right on cross-examination to call out the fact that such statement had been made, to lay the same before the jury, for the purpose of modifying, explaining or contradicting the testimony of the witness. A witness may be impeached by showing on cross-examination the improbability of his story and in no way may such improbability be better established than by showing on cross-examination prior inconsistent statements of the witness. Here the statement of the witness was in writing, not in the possession of the defendant, presumptively in the control of the people, its contents unknown to defendant; and it was clear error not to permit defendant to have all of the witness’ prior statements bearing upon the, question in issue. To- withhold part of his statements was to say to defendant and to the jury “You must be content with part of the truth and not the whole truth ip- relation to the question in controversy. ’ ’
(c) The only legitimate object of the prosecution is to show the whole transaction as it was, whether its tendency is to establish the guilt or innocence of the accused. Hurd v. People, 25 Mich. 405; People v. Etter, 81 Mich. 570. A public prosecutor has no right to suppress testimony. Wellar v. People, 30 Mich. 16. It is the duty of the prosecuting attorney to furnish all the evidence within his power bearing upon the issue of guilt or innocence in relation to the main issue or to give some good excuse for not doing so. People v. Swetland, 77 Mich. 53; People v. Germaine, 101 Mich. 485.
“Whenever it may appear evident to the court that but a part of the facts, or a single fact, has been designedly selected by the prosecution from the series constituting the res gestee, or entire transaction, and that the evidence of the others is within the power of the prosecutor, it would, I think, be the duty of the court to require the prosecutor to show the transaction as a whole. * * * It was clearly competent for the defendant to show the rest of the transaction, whether known to the prosecution or not.” Maher v. People, 10 Mich. 212 (81 Am. Dec. 781).
(d) The report of the witness to his superior officer was made when the facts were fresh in the memory of the witness, unaffected by publicity or the suggestions of others. It is conceded it covered the same transaction about which the witness testified. It was clearly admissible, if for no other purpose, as bearing upon the credibility of the Avitness (People v. Baker, 112 Mich. 211); it being competent to contradict the Avitness if possible by proving on cross-examination his prior inconsistent statements. 1 Wharton’s Criminal Evidence (10th Ed.), § 482. It Avas competent to call out on cross-examination Avhat the Avitness had said in his official report or otherAvise upon the particular subject or facts about which he had testified. People v. Warren, 122 Mich. 504 (80 Am. St. Rep. 582); Lichtenberg v. Mair, 43 Mich. 387. Appellant was entitled to have placed before the jury the report of the transaction officially made by the Avitness as to what happened- at the time, and to a full and searching cross-examination as to what the Avitness said and did in relation to the things testified about by him. People v. Liphardt, 105 Mich. 80; Bulen v. Granger, 58 Mich. 274; Marquette, H. & O. R. Co. v. Langton, 32 Mich. 251. The rule is thus stated in Detroit & Milwaukee R. Co. v. Van Steinburg, supra:
“When a party places a witness upon the stand to testify to facts which tend to support his side of the issue involved, and questions him concerning such facts, it is the right of the opposite party, on cross-examination, to go as fully into the subject as may be necessary to draw from the witness all he may know concerning the transaction about which he has testified, and to put before the jury any pertinent facts which will have a tendency to controvert the testimony which has been given by the witness in favor of the party calling him. A more restricted rule renders cross-examination in many cases nearly valueless, and enables a party, by careful questions to his witness, to give to the jury a one-sided and partial view of the facts within the knowledge of the witness, and effectually to preclude the opposite party from supplementing the witness’s statement with the further facts within his knowledge concerning the same transaction, unless he shall make the witness his own, in which case he is supposed to vouch for him as credible, and has also less privilege of searching examination. ’ ’
Cross-examination on matters in issue or directly relevant to the issue is a matter of right. Its exclusion is error. 5 Jones, Commentaries on Evidence (1st Ed.), § 842. As pointed out by this court, cross-examination is a mere farce if the cross-examining party has not the right to show on cross-examination by the witness just what the transaction was and was said to be. Chandler v. Allison, 10 Mich. 460; Thompson v. Richards, 14 Mich. 172; Detroit & Milwaukee R. Co. v. Van Steinburg, supra; Wilson v. Wagar, 26 Mich. 452.
“All testimony elicited on such cross-examination, consisting, as it does, of facts which, though relating to the direct examination, .may have been omitted or concealed in that examination, or facts tending to contradict, explain or modify such facts, or to rebut or modify some inference which might otherwise be drawn from them, must in the nature of things, constitute a part of the evidence given in chief; and both alike and together, must, therefore, be treated as evidence given on the part of the party calling the witness.” Wilson v. Wagar, supra.
See, also, Schratz v. Schratz, 35 Mich. 485.
The conduct of the prosecution in preventing the introduction of the written statement of the witness Sandley to his superior officer or evidence of its contents made in the line of his duty immediately after the commission of the alleged offense was error. If drawn out it would have been a part of the testimony of the people and for the people to suppress material testimony in writing in relation to the most vital part of the controversy is not commendable.
This report, if produced and introduced, was a part of the witness’s testimony and the people had no right to suppress it or to suppress proof of its contents. The witness testified on the examination in which the report was suppressed that if he had the report before Mm he could give the facts just as he saw them and on the trial thé witness remembered he so testified on the examination. In view of all this, it is certainly peculiar the people did not want the facts laid' before the jury just as the witness saw them; and, on trial, that they insisted on excluding parol proof of the contents of the paper made by the witness .which if he had it before him would have enabled him to give the facts just as he saw them. Why was not defendant entitled to this? The witness testified in effect the report was true when made and if so it was competent, relevant, and admissible. Fisher v. Kyle, 27 Mich. 454; Spalding v. Lowe, 56 Mich. 366; Koehler v. Abey, 168 Mich. 113; Rice v. Fidelity & Casualty Co., 250 Mich. 398. It was not permitted to be produced and parol evidence of its contents was excluded. This was clear error. Brandt v. C. F. Smith & Co., 242 Mich. 217; Barber-Greene Co. v. Proksch, 251 Mich. 329. As said in People v. Davis, 52 Mich. 569:
“The State has no interest in interposing any obstacle to the disclosure of the facts, unless it is interested in convicting accused parties on the testimony of untrustworthy persons. But surely the State has no such interest; its interest is that accused parties shall be acquitted unless upon all the facts they are seen to be guilty; and if there shall be in the possession of any of its officers information that can legitimately tend to overthrow the case made for the prosecution, or to show that it is unworthy of credence, the defense should be given the benefit of it. There was, therefore, no privilege to preclude the giving of the testimony for which the defense called.”
If defendant called out a part of a conversation with an injured party on examination by a physician plaintiff was entitled on cross-examination to the whole conversation. Joslin v. Grand Rapids Ice & Coal Co., 53 Mich. 322. A witness may be cross-examined as to his statements made to third persons which were contrary to his testimony to bear upon his credibility. People v. Baker, 112 Mich. 211. The defendant had a right to call out on cross-ex- animation from the witness what he said upon the subject of the shooting. Lichtenberg v. Mair, supra; People v. Warren, supra. He was entitled to the witness’s version of the whole transaction, not only in accordance with Ms testimony but in accordance with what he reported it to be at the time when he made his report, and to a full and- searching cross-examination as to all the witness did in reporting the offense to his superior officer. People v. Liphardt, supra; Bulen v. Granger, supra.
(e) In McCullough v. McCullough, 12 Ind. 487, suit was brought oil an award of arbitrators. It appeared a paper relating to an item in dispute had been signed by the arbitrators. The court held the principal reason for placing the writing in the hands of the witness and subjecting* it to examination was to ascertain whether he executed it and to give him an opportunity to note its contents, to enable him to explain discrepancies, if any, between his testimony and his prior statements in writing. The court said:
“We are of opinion that, under the circumstances of this case, the ruling* of the court, in excluding the evidence offered, was erroneous. * * * If it ■was not evidence of the substantive facts stated in it, wMch we need not decide, it was clearly such as might be considered by the jury, in determimng the relative value of the testimony, and the weight that ought to be given to each witness who had testified upon the point, upon which they had made a statement, whilst the facts from which they had written that statement were yet fresh in their memory. ’ ’
In Romertze v. East River National Bank, 49 N. Y. 577, it is said:
‘ ‘ The only question of law which seems to deserve attention relates to the attempt to prove that the witness Newell, called by tbe defendant, had made statements on another occasion inconsistent with those testified to by him on the trial.”
In disposing of this question the court said:
“The result of all the authorities is that it is sufficient for a party, proposing’ to impeach a witness by proving inconsistent written statements, to show him or read to him the paper, and, if its genuineness is admitted, to introduce it, when he has a right to put in evidence; and that it is not the legal right of the other party or the witness to enter into any explanation of the contents of the paper until after it has' been introduced in evidence.. The court may doubtless permit the explanation in the first instance, and may vary the order of proof in this as in many other cases for the purpose of eliciting truth and preventing injustice. Many questions of this character are within the discretion of the court; but here the plaintiff pursued the usual and legal course. The witness • admitted the genuineness of the paper and knew its contents. His attention was sufficiently called to it. Neither he nor the defendant asked the privilege of explanation, nor demanded the reading of the paper. The plaintiff offered the paper at the right time, and it was error to reject it.”
If the statement was in existence and in possession of the prosecution it was the duty of the prosecuting attorney to produce it. -
(f) In Freel v. Railway Co., 97 Cal. 40 (31 Pac. 730), it appeared that an employee of the defendant company had made an investigation and report of an accident. This statement was in the possession of defendant’s counsel. The employee had been sworn as a witness. Plaintiff demanded the state ment and the court refused to order it to be produced. In reversing the case the court said:
“This statement was in the possession of defendant’s counsel upon the trial, and indeed was lying upon the desk before him when the demand in question was made. The plaintiff could not, in the nature of things, know the contents of this paper. It is not claimed that she had ever seen it, nor had it ever been in her possession. It was produced for the first time by defendant’s counsel. To sanction the rule claimed by the defendant in this case would enable a litigant to suppress adverse evidence of the most important character. Here the plaintiff had a right to show, by way of the impeachment of the defendant’s witness, that he had on another occasion made a statement inconsistent with his present testimony. The law provides that where such statement is in writing, it must be shown to the witness, and an opportunity afforded to the latter to explain it. Upon defendant’s theory, if he were permitted to retain this paper in his possession, so that the plaintiff’s counsel could not, on cross-examination, show it to the witness for the purpose of impeaching him, it would be impossible, under similar circumstances, to impeach any witness.”
“It may be laid down as a general rule applicable to all jurisdictions that when a document is properly sought as evidence to be used upon the trial of a cause its production will always be enforced. The production of a document may be required for the impeachment of a witness.” 4 Encyclopaedia of Evidence, pp. 812, 813.
In People, ex rel. Germania Fire Insurance Co., v. Newaygo Circuit Judge, 41 Mich. 258, the circuit judge, on motion of defendant, ordered plaintiff to produce certain documents and mandamus was brought to compel the circuit judge to set aside the order. This court denied the writ, saying: “If the papers called for are in existence, we may well see that they may he very important to the defense.”
(g) It was proper for counsel for the defense to call the former assistant prosecuting attorney, who conducted the examination and knew the contents of the statement, to show not only the existence of the paper and that it was lost, but to show its contents. Coveney v. Tannahill, 1 Hill (N. Y.), 33 (37 Am. Dec. 287). This court is firmly committed to the doctrine of Queen’s Case, 2 Brod. & Bing. 284, 286 (129 Eng. Repr. 976), which case is the basis of the rule stated in 1 Greenleaf on Evidence (16th Ed.), § 463, that it would be unfair to cross-examine a witness as to the contents of a writing made b3r him until the jury were informed of the precise contents of the writing, and thus warned against assuming contradictions that do not really exist and which would also be unfair to the witness because he may have explanations which would not occur to him until his memory had been refreshed by hearing the paper read. Lightfoot v. People, 16 Mich. 507; Hamilton v. People, 29 Mich. 195; Toohey v. Plummer, 69 Mich. 345; DeMay v. Roberts, 46 Mich. 160 (41 Am. Rep. 154). In this case the people were in possession of the paper if it existed. It had never been in the possession of appellant. Neither he nor his counsel had any knowledge of its contents. It would not, therefore, be possible to place the paper before the jury or to present it to the witness until such time as it was produced. It is conceded the paper was lost. The defendant offered to prove by secondary evidence its .contents. This he was clearly entitled to. If the paper had been produced it not only would demonstrate its existence but it would effectually foreclose any controversy as to its contents. Stevens v. Hope, 52 Mich. 65. The fact that the policeman made the statement in writing* immediately after the occurrence reported when the incidents connected therewith were fresh in his memory, to his superior officer, only emphasizes the importance of the statement and the probability of its containing a correct narration of the facts. This report obtained no sacredness because it was made and filed by a public officer. The jury were entitled to have the statement placed before them and in case of its loss to have secondary evidence of its contents placed before them in order that they might make a comparison of the statements found to have been made in writing and the testimony of the witness and determine if and to what extent the contents of the statement tended to affect the credibility of the witness. The court was in error in his ruling. Appellant was entitled to know what the witness said in the report and why he said it. This ruling* was prejudicial to defendant.
Assignment of error No. 7 relates to the failure of the court to charge the jury upon the question of circumstantial evidence and its application as requested in defendant’s requests to charge numbered 28, 29 and 30 as follows *.
“28. * # * You are to take this testimony and harmonize it; it is your duty to harmonize it if possible with the innocence of the accused, because under the law, it is the duty of the jurors in every criminal case to enter upon the trial of the case with the presumption of innocence and harmonize all the testimony in the case in accordance with the presumption that the defendant is innocent.
“29. * * * Where two conclusions can be drawn, one tending* to establish guilt and the other tending to establish innocence, it is your duty to accept the conclusion tending towards innocence and acquit the defendants.
“30. I further charge you, members of the jury, that it is necessary for the prosecution to show, under all circumstances, as a part of their own case, that there is no innocent theory possible which will, without violation of reason, accord with the facts proven in the case. Circumstances are never to be presumed. Each fact making up the chain of circumstances must be proved beyond a reasonable doubt, and if the prosecution fails to prove any one link making up the chain of circumstances, it is your duty to find the defendants, Nick Dellabonda and Frank Salimone, not guilty.”
Counsel for appellant say:
“These three requests represent different phases of the same principle; they are simply different expressions of the same idea. The principle may be briefly stated. In arriving at a verdict based upon circumstantial evidence, the jury must first be satisfied that each of the circumstances, or facts from which the inference of guilt or innocence is. to be drawn, are'established beyond a reasonable doubt, and they should exclude from their consideration any circumstances which are not so proved. If the prosecution fails to prove beyond a reasonable doubt any one link in the chain of circumstances, the jury should acquit the defendant. If the prosecution fails to prove circumstances which exclude every reasonable hypothesis except the guilt of the defendant, the jury should acquit him.”
The rules applicable to the consideration of circumstantial evidence are stated in 3 Thompson on Trials (2d Ed.), §§ 4974-4985, and in 16 C. J. pp. 762, 767.
In People v. Foley, 64 Mich. 148, the court charged:
“It is necessary for the prosecution to show, under all circumstances, a,s a part of their own case, that there is no innocent theory possible which wall, without violation of reason, accord with the facts proven in the case. Circumstances are never to be presumed. Each fact making up the chain of circumstances must be proven beyond a reasonable doubt; and, if the prosecution fails to prove any one link making up the chain of circumstances, the prisoner ought not to be convicted.”
This charge was approved by this court.
In People v. McArron, 121 Mich. 1, defendant requested the court to charge:
“The prosecution claim that the evidence in this case is made up of a chain of circumstances and facts, or links, so connected together that they lead up, with all reasonable certainty, to the defendant’s guilt. Gentlemen, I charge you that, in order to convict the defendant upon this class of evidence, you must be satisfied beyond a reasonable doubt that each material fact, or necessary link, in the chain, has been proven, and, if you have any reasonable doubt about any one of the material facts, or links, constituting the chain of circumstances, then you should acquit the defendant. To illustrate, the first material fact or link is death. That is not disputed. Second, death by violence by the hands of some person. That is disputed. Third, death by violence by the hand of the defendant. That is denied by the defendant. If you have any doubt of whether or not the defendant inflicted any blow on the deceased, then it is your duty to acquit him. If you have any doubt that the blow claimed to have been inflicted by the defendant was the sole cause of the death of the deceased, it is still your duty to acquit him. ’ ’
This request was refused by the trial court but this court said it should have been given and set aside defendant’s conviction.
The trial court fully charged the jury on the subject of murder and its essential elements. It was claimed by the people, officer Lanstra was killed in pursuance of a conspiracy to which appellant was a party. The trial court correctly charged on that subject. He defined the essential elements, each of which he charged must be proved beyond a reasonable doubt as follows:
“Now with those definitions in mind, what are the elements, each and every one of which must be proved beyond a reasonable doubt in order for you to find the accused guilty of the offense of murder, which is in this information charged against them.
“First, that it was committed on the 1st day of June, 1930.
“Second, that it was committed within the corporate limits of the county of Wayne.
“Third, that the accused, either or both of them, committed an assault upon the person of Claude Lanstra. By an assault I mean an intent or offer with force and violence to do bodily hurt to the person of that other.
“Fourth, that in committing that assault, the accused used a certain dangerous and deadly weapon or weapons, and that in the commission of the assault they inflicted upon the body of Claude Lanstra certain mortal wounds.
“Fifth, that as a direct result of the wounds so inflicted Claude Lanstra, who on the 1st day of June, 1930, was alive, as a direct result of the wounds so inflicted upon him in said assault, met his death.
“Sixth, that this assault was committed with the intention, upon the part of the defendants, of taking the life of Claude Lanstra.
“Seventh, that it was committed ivith malice aforethought, which term. I have fully defined.
“Eighth, that before the assault was committed that it was premeditated, and I have defined that term to you,”
He correctly defined “reasonable doubt.” Many comparisons between circumstantial evidence of facts and links in a chain have been used in charging juries. At best these are blanket statements. It is not each and every fact claimed that must be proven beyond a reasonable doubt, but as the trial court charged, each and every essential element of the offense charged against defendants. While cautionary instructions as to the use of circumstantial evidence.may be given, we think appellants’ rights were protected by the charge herein. Cautionary instructions should be given in all cases where the guilt or innocence of the defendant depends entirely upon circumstantial evidence.
“The charge is required to be given only where the case rests solely and alone upon circumstantial evidence; that is to say, where the main fact, or gravamen, of the offense, or act of the crime rests upon circumstantial evidence alone.” 3 Encyclopsedia of Evidence, p. 64.
It is not the particular facts and circumstances claimed by the people that must be proved beyond a reasonable doubt, but the essential elements of the crime charged that must be so proved. In this case the trial court so charged. We find no reversible error in the failure of the trial court under the circumstances to give the requests last-above quoted.
For the errors pointed out, conviction is reversed and new trial ordered.
McDonald, C. J., and North, Fead, and Butzel, JJ., concurred with Potter., J. | [
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Wiest, J.
In full accord with the provisions of Act No. 22, Pub. Acts 1931, the Peoples State Bank for Savings of Muskegon, in lieu of a depository bond, securing funds of the county of Muskegon, deposited with the Bankers Trust Company of Muskegon, under a written agreement, approved as to form by the commissioner of the banking department, and executed by the bank and county and the trust company, certain United States treasury certificates. The bank failed and the trust company sold the pledged certificates and paid the proceeds to the county, as provided by the mentioned act. The receiver for the bank concedes that what was done was within the provisions of Act No. 22, but contends that the provision of Act No. 21, Pub. Acts 1931, requiring authorization by the written order of the commissioner of the banking department of pledge of assets, should be read into Act No. 22, and it was not enough to comply with the term approved as to form by the commissioner of the banking department as provided by Act No. 22, therefore, the deposit agreement was void. The receiver prosecutes an appeal from a contrary holding.
Act No. 21 was an amendment to one section of the general banking law (3 Comp. Laws 1929, § 11932) and, so far as here involved, provides:
‘ ‘ That any bank may when authorized by the written order of the commissioner of the banking department of the State of Michigan, pledge qualified assets of the bank (enumerated) * !* * for the purpose of becoming a depository for postal savings or other government funds under the laws of the United States, or for the purpose of becoming a depository for surplus funds belonging to the State of Michigan, or to. any city, county, township, village or school district within the State of Michigan; * * * under a suitable depository agreement approved as to form by the commissioner of the banking department of the State of Michigan.”
It will be noticed that this act requires specific written authorization and employment of a form of agreement approved by the commissioner of the banking department.
Act No. 22 was approved the same day as Act No. 21. Both acts were given immediate effect. Act No. 21 was a permanent amendment to the general banking law, while Act No. 22 was special and of an emergency nature and repealed, by express declaration, acts and parts of acts inconsistent with its provision, and provided:
“This act shall have no force or effect after July one, nineteen hundred thirty-three.”
This act provided:
“Any bank * * * which shall he designated as a depository for funds of a city, county, township, village, school district or other political subdivision as provided by law; may, in lieu of the surety bond required to be furnished to secure such funds, deposit under a suitable depository agreement, the terms of which shall be approved by the governing body of the depositing municipality or political subdivision, with a Michigan trust company or State or national bank within the State of Michigan authorized to act in such a fiduciary capacity, assets (enumerated) * * * and any such municipality or political subdivision shall have authority to accept such depository agreement in lieu of the bond required by any statute of this State as security for the deposit of the funds of such municipality or political subdivision. Such depository agreement shall also be approved as to form by the commissioner of the banking department of the State of Michigan.”
This act provided also for the sale of the pledged assets in case of default and payment of proceeds to the protected municipality or political subdivision. It will be noticed that this act granted direct and general authority, only exacting- form of agreement approved by the commissioner of the banking department.
In the instance at bar the agreement was upon a form sent out by the commissioner of the banking department and, in every particular, the provisions of Act No. 22 were followed.
Act No. 21 applies as well to postal savings or other fiduciary government funds, while Act No. 22 is limited to State or municipal division funds, and this may have been the reason for requiring authorization under Act No. 21 and not under the other. But, be that as it may, the emergency and short-lived act is complete in itself, grants direct power, and this may not be taken away by importing a condition from the other act. The 'acts are not inconsistent and Act No. 22 admits of no contraction of its provisions by anything in Act No. 21.
Construction in the instant case is not required for the language is clear and unambiguous.
In Voorhies v. Judge of Recorder’s Court, 220 Mich. 155 (27 A. L. R. 706), it was stated:
“The rule, in pari materia, does not permit the use of a previous statute to control by way of former policy the plain language of a subsequent statute; much less to add a condition or restriction thereto found in the earlier statute and left out of the later one. The contention made, if allowed, would go beyond the construction of the statute, and engraft upon its provisions a restriction which the legislature might have added but left out.”
It is to be assumed that the legislature, in framing and passing both acts, had full knowledge of the provisions' of each and we have no right to enter the legislative field and, upon assumption of unintentional omission in the later act, supply what we may think might well have been incorporated.
The decree in the circuit is affirmed, 'with costs.
Nelson Sharpe, C. J., and Potter, North, Fead, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Wiest, J.
Two bills, upon hearing consolidated, were filed by three minority stockholders of the Blood Brothers Machine Company to obtain decree that Leonard TI. Mattingly, Sr., hereinafter styled defendant, pay back to the corporation excessive salary, unauthorized expense moneys, royalties received on a patent, assign the patent to the company, also turn over shares of stock held by him, in trust for the company, pay his admitted indebtedness to the company and remove him from the office of president and director and the position of general manager. The decree in the circuit court adjudged that defendant forthwith pay to the clerk of the court the following sums, together with interest thereon: unauthorized salary $18,064.46; excess expense money $676.31; unauthorized expense money $30,137.72; indebtedness to the company $23,916.25; royalties on patents $39,139.15, or a total sum, inclusive of interest, of $136,469.19. The decree also ordered assignment of certain stock certificates to the company, transfer of patents, and removed Mr. Mattingly, Sr., from the board of directors, from the office of president and the position of manager. Leonard H. Mattingly, Jr., was also required to assign certain certificates of stock to the company.
Some years ago the company was in financial straits and its principal creditors selected and induced defendant to enter the company and manage its affairs. Under his management the company prospered. Evidently he became the dominant fac tor in the company and others interested therein deferred to his will. Unless he used his power for selfish ends and to mulct the company the remedy of those dissatisfied is within the company (and not in court. The decree is drastic for it assumes corporate management but, if justified by the record, constitutes a remedy open to resort by the wronged, unless they have acquiesced or have slept on their rights. The record is voluminous.
The fixing of the salary of defendant by the board of directors may have been ill-advised action, considering the financial condition of the corporation •and the character of the services of the president, but it was a matter of corporate management, vested in the directors, and their action, in the absence of fraud or wilful or wanton departure from known or manifest duty, bars judicial substitution of opinion.
In McKey v. Swenson, 232 Mich. 505, we held action in fixing salaries wholly void and cast the burden upon the officers' to give the court information upon which reasonable compensation could be fixed. Such, however, is not the case at bar, for here we do not have wholly void action but only assertion of unreasonable compensation and the burden is on plaintiff to establish the charge.
As said in Burden v. Burden, 159 N. Y. 287 (51 N. E. 17):
“The plaintiff is in the position of all minority stockholders, who cannot interfere with the management of the corporation so long as the trustees are acting honestly and within their discretionary powers. ’ ’
A minority complaining stockholder, if he avers excessive salary, must show facts establishing unjustifiable oppression in such respect. The evidence fails to show that salary voted defendant by the board of directors was so unreasonable or excessive, under the circumstances, as in itself to be deemed fraudulent and, therefore, authorizing restoration in whole or in part. We may not readjust the salary without a yardstick applicable to the particular circumstances and not even then upon mere difference of opinion from that of the board of directors, but only upon concrete proof that the salary evidences wrongdoing or inexcusable oppression to the point of being fraudulent. Less than this would constitute an intolerable interference with legitimate internal corporate management.
It is a well-settled rule of law that the authority of the directors is absolute when they act within the law, and that questions of policy and internal management are, in the absence of nonfeasance, misfeasance, or malfeasance, left wholly to their decision. Ratification by the board of directors of an increase in defendant’s salary, if made in good faith and believed to be for the best interest of the company, validated the increase. Decree as to salary reversed.
Defendant purchased a residence in the city of Washington at the expense of the company and resided there some time and claims it was good business judgment and in the interest of the company. The expense was not justified and the purpose, considering. the disclosed circumstances, was gratification of personal inclination and social enjoyment rather than business interests of the company. Defendant’s activities in Washington, as described by himself, were quite nebulous, and in no sense called for or justified purchase of á residence, a .Cadillac automobile and employment of chauffeurs at the ex pense of the company. All company money, so expended, must be returned as ordered by the circuit judge.
The principal business of the company was the manufacture of a “universal joint” and, in course of time-two patents relative thereto were taken out in the name of Leonard H. Mattingly, Sr., and another taken out by an employee was assigned to him. Two of the patents are of little use or value but one taken in the name of defendant, although developed in the course of and under his management of the company, he claims to hold in his own right and, under contract for royalty with the company, he has received a large sum for use thereof. Defendant was not a mechanical genius and the evidence is persuasive that need of the company and efforts of practical employees to meet it developed the invention and the patent, applied for and taken in the name of defendant, was based on an understanding that the corporation, as such, could not be an inventor.
The subsequent royalty contract was but another scheme to get something out of the company. The patents all belong to the company and were merely held by defendant as trustee for the company.
It is contended in behalf of defendant that, by lapse of time, the statute of limitations (3 Comp. Laws 1929, § 13976) prevents decree placing ownership of the patents in the corporation. Considering the dominance of defendant, the trust relation under which the patents were taken in his name, the evident understanding that the patents belonged to the company, at least until the royalty contract was made in 1929, estops defendant from invoking the statute of limitations.
In February, 1929, defendant was again elected president and the following resolution was adopted by the directors:
“Whereas, it was originally and has long been understood that when Blood-Brothers Machine Company were in any financial condition to do so, they would pay L. H. Mattingly for the use of his patents on universal joints and as the company did attain that position and has maintained it during the year 1928 and will, in all likelihood, attain it during 1929, now, therefore, be it moved that the company pay said L. H. Mattingly, three per cent, of its gross sales from and beginning the 1st day of January, 1928, and further, that the vice-president and secretary be empowered to enter into a contract with L. H. Mattingly for the sole and exclusive use of any and all patents possessed by him having relation to universal joints or other flexible couplings, for a period of five years from the date of said contract, and that the vice-president and secretary be empowered to execute any and all papers necessary to carry this into effect.”
This contract was unconscionable.
The point that the State court is without jurisdiction to decree that the patents be assigned is without merit. Becher v. Contoure Laboratories, Inc., 279 U. S. 388 (49 Sup. Ct. 356). Decree respecting patents affirmed.
Defendant had keen business vision, but failed to recognize, in his dealings with the company, the distinction between meum and tuum, so essential in a fiduciary and managing capacity.
Corporation funds, paid for a Cadillac automobile for use in Washington, and salary paid to chauffeurs must be returned.
In order to help the finances of the company, stockholders turned shares over to Mr. Mattingly for resale to themselves or others. Sales and repurchases, to some extent, were made but some shares were given away by defendant and others retained by him. ' The shares so given away and those retained belong to the company and the recipients of his unwarranted bounty may not retain the shares; neither may defendant treat such shares in his hands as his own.
It is contended, however, that the undisposed-of shares, so turned over to defendant, should be returned to the donors and that this cannot be decreed because they are not parties to this suit. The donation was to the corporation and the shares were assigned to defendant as a matter of convenience. The shares must be turned over to the corporation and if the donors have remedy, and the purchasers of shares care to be heard upon the subject of disposition of the undisposed-of shares, their rights must be worked out in some other action. It is clear that defendant cannot treat such shares as his own.
Under the management of defendant the corporation has successfully weathered financial storms and, outside of the dealings here mentioned and set right, the manager has exercised keen vision and business acumen.
The decree removed him from the office of president and director and the position of manager. This involves internal corporate affairs and the decree is an unwarranted interference therewith, unless the deposed officer has been guilty of fraud of such a nature that directors or. shareholders should have removed him and have failed to do so upon request, or that demand of action by the directors or stockholders would have been futile.
We think defendant has been laboring under, a '-mistaken idea- of his proper relations to the com pany and has believed that his acts were legal and we cannot hold that he was actuated by fraudulent intent and, therefore, his retention or discharge should be left with the directors elected by the stockholders.
Plaintiff Nahikian appeals from the refusal of the trial court to allow him compensation for time spent in and about this suit and from refusal to allow more than $6,000, compensation to attorneys for plaintiffs. The suits were justified by reason of corporate management, resulting in depletion of its assets, and we can see reason for directing the corporation to compensate the attorneys who have successfully prosecuted the suits to the benefit of the corporation. The evidence on that subject, taken in the circuit, was based upon the results there decreed, and cannot be the measure here for we have materially modified the relief. In consideration of - the measure there shown and the bearing of the modified relief we think the corporation should compensate plaintiff’s attorneys to the amount of $2,000. Plaintiff himself is a stockholder and will gain by the relief granted and, beyond that, he should be left to the experience of the litigant who loses if he gains his suit.
The allowance of compensation to the auditor is affirmed.
Plaintiff would be in a better position had his solicitude in behalf of the corporate welfare moved him before, rather than after, his discharge as sales manager, for it is inconceivable that he was not fully aware of much now complained of.
The right of plaintiff Nahikian to file a bill is questioned because, as a stockholder, it was upon his motion, on two occasions, that the directors he now complains of were elected, and he admits that at such times he so acted to hold his job and was aware that honorable conduct on his part was thereby violated. This has caused us serious difficulty and has been solved only by the fact that other minority stockholders have invoked the aid of equity and the wrongs established are so palpable that the rule of estoppel should not be applied.
The decree in the circuit is modified to accord with .this opinion and, as modified, is affirmed, with costs to plaintiffs.
McDonald, C. J., and Potter, North, Fead, and Butzel, JJ., concurred. Sharpe, J., did not sit. Clark, J., took no part in this decision. | [
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Butzel, J.
Tbe Equitable & Central Trust Company presented two claims to tbe commissioners on claims in tbe estate of Mary Gzella, deceased. One of $4,014.97, representing tbe amount due on a mortgage, was allowed, but a claim of $350 for services rendered the deceased was denied. Tbe report of tbe commissioners shows their action on these claims but fails to indicate that any offset was introduced against either of them,
Bernadine Stefaniak, the sole heir-at-law, did not attend the meetings of the commissioners, but after ascertaining the contents of their report, requested the administrator of the estate to appeal to the circuit court. Upon his failure to do so, she applied for leave to appeal, and alleged that the Equitable & Central Trust Company was indebted to the estate of Mary Gzella in the amount of $5,400, which was more than sufficient to offset the claim that had been allowed. When cdunsel for the respective parties appeared before the circuit court to frame the issues for trial by jury, counsel for claimant contended that,. inasmuch as the offset had not been asserted before the commissioners on claims, it was not open to consideration on the appeal to the circuit court. The claim as allowed was also disputed by the administrator, on the ground that it consisted solely of a contingent liability on the mortgage, the full extent of which could not be determined until after the foreclosure sale. The amount of $5,400 claimed as a set-off is an unliquidated sum appellant alleges to be due the estate on account of alleged malfeasance in administering the estate of Francis Gzella.
The trial judge refused to include the set-off in framing the issues, on the ground that it had not been presented to the commissioners on claims, and, therefore, could not be considered for the first time on appeal. A jury had been demanded by the appellant, but when the court refused to permit the inclusion of the set-off, appellant’s attorney stated that, while he would not waive a jury, the set-off was the only defense available against the claim allowed by the commissioners. No witnesses were called except to testify as to what transpired at the meetings of the commissioners on claims, and the court proceeded to render judgment for $4,227.51, the amount due on the mortgage plus interest. The record is in rather unsatisfactory condition, for it fails to show the total mortgage liability by direct testimony. However, appellant’s attorney stipulated on the record that a witness, if called, would testify that the. amount found due by the commissioners was correct. Appellant cannot now complain that there was no proof of the amount due.
The serious and only substantial question raised on appeal is whether or not the failure to make a proper presentation of the claim of set-off before the commissioners on claims precludes its consideration for the first time on appeal in the circuit court. It was conceded that it was necessary to frame an issue in the circuit court before the trial of the case. 3 Comp. Laws 1929, § 15682, provides as follows:
“When a creditor against whom the deceased had claims shall present a claim to the commissioners, the executor or administrator shall exhibit the claims of th'e deceased in offset to the claims of the creditor, and the commissioners shall ascertain and allow the balance against or in favor of the estate, as they shall find the same to be; but no claim barred by the statute of limitations shall be allowed by the commissioners in favor of or against the estate, as a set-off or otherwise.”
We have held repeatedly that on an appeal' the circuit court will not consider claims not theretofore presented to the commissioners on claims, and that claims may not differ materially in form or substance from those presented in the probate court. These claims may not be changed oh appeal unless by reduction or immaterial alteration. See Patrick v. Howard, 47 Mich. 40; Hatheway’s Appeal, 52 Mich. 112; Raub v. Nisbett, 111 Mich. 38; Luizzi v. Brady’s Estate, 140 Mich. 73. In re Reid’s Estate, 248 Mich. 360, at pages 368, 369, we again stated:
“In re De Haan’s Estate, 169 Mich. 146, it was held (quoting from the syllabus):
“ ‘On appeal from the commissioners on claims, the circuit court, not having original juiisdietion, cannot permit a claimant to amend his claim so as to present matters whieh the commissioners did not pass upon.’
“In the recent case of Goodrich v. Hubbard’s Estate, 233 Mich. 346, it was said:
“ ‘In the final analysis the meritorious question before us is whether the eourt erred in refusing an amendment of the claim.
‘ ‘ ‘ This court has never applied strict rules of pleadings to claims presented to commissioners, and the propriety of amendment in matter or form has been frequently recognized. But this eourt has consistently held that the circuit eourt exercises appellate jurisdiction and that the claim there tried must be substantially the claim tried before the commissioners.’
“We then quoted the following language of Mr. Justice Campbell found in Patrick v. Howard, 47 Mich. 40:
“ ‘The ease made before the commissioners earn never be enlarged or changed on appeal, unless by reductions or immaterial alterations, and no elaim can be heard that was not passed on by the commissioners. The circuit court has no original jurisdiction over claims against estates, and no now claim can be made there. The probate issues peed not be changed in form in such cases or in analogous cáses, and whether changed in form or not cannot be added to in substance.’
“Mr. Justice Campbell then cites eight of the early cases so holding. Among the numerous cases to the same effect, see: Luizzi v. Brady’s Estate, 140 Mich. 73; Raub v. Nisbett, 111 Mich. 38; Jersey v. Jersey, 146 Mich. 660; In re Ward’s Estate, 152 Mich. 218; In re Mills’ Estate, 158 Mich. 504; In re Murray’s Estate, 219 Mich. 70; In re Barney’s Will, 187 Mich. 145; Johnson v. Bullard, 241 Mich. 170.”
While there is testimony indicating that there was some informal discussion or mention of a claim of set-off, the finding of the trial judge that such a claim was not presented is fully supported, not only by the fact that there was no proof of such claim filed, but also by the positive denial of the commissioners that such claim was presented to them. The facts in the instant case differ from those in Westra v. Estate of Westra, 101 Mich. 526.
The judgment is affirmed, with costs to appellee.
McDonald, C. J., and Potter, Sharpe, North, Fead, and' Wiest, JJ., concurred. Clark, J., took no part in this decision. | [
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McDonald, C. J.
The purpose of this suit was to set aside proceedings to establish and construct a certain drain known as Ruddiman No. 3 drain in the township of Norton, Muskegon county, Michigan.
The proceedings were under the general drain law (Act No. 316, Pub. Acts 1923 [see as amended 1 Comp. Laws 1929, §4838 et seg.]). The undisputed facts show that the construction was not a drain but was in fact and law a sewer. The trial court so held and accordingly decreed from which no appeal has been taken. This appeal is by the plaintiffs and the only question involved is their right to recover the assessments levied on their land and paid by them before the validity of the proceedings was determined.
The trial court held that right of recovery was precluded by reason of failure to begin their suit within 30 days from the time of payment as required by statute, 1 Comp. Laws 1929, § 4927, which reads:
“No suit shall be instituted to recover any drain tax or money paid or property sold therefor, or for damages on account thereof, unless brought within thirty days from the time of payment of such money to, or sale of such property by, the collecting officer.”
It is conceded that this suit was not begun within the time prescribed. There is no question as to the validity of the statute. The plaintiffs’ only contention is that it has no applicability to their case. We are unable to agree with this contention. The time limit for bringing suit is plainly and positively stated without any qualification whatever. It is a reasonable limitation. In express terms it applies to suits for recovery of money paid on illegal drain assessments. In 61 C. J. p. 999, § 1277, it is said:
“If there are special statutes of limitation applicable to actions for the recovery of taxes paid, and' such statutes are valid, the action is barred unless brought within the prescribed time after the cause of action has accrued; otherwise it is barred by the same lapse of time which would limit an action for money had and received between private parties.”
This text is supported by Lingle v. Township of Elmwood, 142 Mich. 194, which held that failure to bring suit within 30 days after payment of an illegal tax was a complete bar to a recovery. See, also, 26 R. C. L. p. 466.
The court correctly held that the plaintiffs were not entitled to recover the assessments paid. The decree is affirmed, with costs of this court to the defendants. The costs in the circuit court belong to the plaintiffs.
Weadock, Sharpe, North, and Fead, JJ., concurred with McDonald, C. J. | [
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Potter, J.
Plaintiff sued defendants on a promissory note dated December 2, 1931, for $24,700, due 90 days after date, with, interest at 7 per cent, per annum. “Bensams,” a Michigan _corp oration, was maker, and defendants Bernard Rosenthal, Louis Rosenthal, Samuel Weinstein and Maurice Rosenblum were indorsers; and $4,465.14 had been paid on the note prior to suit. The declaration alleges presentment of the note for payment at maturity and tender of a new note executed by the same maker and indorsed by the same indorsers to the payee for the balance due. This note was rejected and suit instituted. From a judgment for plaintiff, defendants Louis Rosenthal and Maurice Rosenblum appeal.
Ordinarily, to hold an indorser, notice of. presentment, demand and dishonor must be given, but such notice may be waived either before or after the time of giving such notice and such waiver may be either express or implied. 2 Oomp. Laws 1929. § 9358. The indorsement of another or new note in renewal of, and for the purpose of taking up an existing instrument, constitutes a waiver of notice of dishonor, and one who has so executed such new or renewal note as an indorser, cannot successfully set up the lack of notice as a defense to an action on his contract of indorsement. 3 R. C. L. p. 1241, § 468, and cases cited; 8 C. J. pps. 704, 705, and cases cited; Jenkins v. White, 147 Pa. 303 (23 Atl. 556); Bessenger v. Wenzel, 161 Mich. 61 (27 L. R. A. [N. S.] 516); Gelder v. Welsh, 169 Mich. 490.
Judgment affirmed, with costs.
McDonald, C. J., and Weadock, Sharpe, North, Fead, Wiest and Butzel, JJ., concurred. | [
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Sharpe, J.
On April 18, 1925, Margarette S. Cnrtiss executed a land contract for the sale to Rex W. Beardsley of certain real estate in the township of Northville, in the county of Wayne, for the sum of $64,866.20, of which $5,000 was then paid and the balance to be paid in annual payments thereafter. A part of the land was soon thereafter platted.
On September 25, 1925, the defendant Truax entered into a contract with Beardsley for the purchase of a lot in said plat, on which he erected a dwelling house, alleged to be worth upwards of $8,000, and on which he owed at the time of the filing of the bill of complaint herein about $300.
Several assignments were made of the Beardsley contract, and, there being default in payment, the vendor declared the contract forfeited and' took proceedings before a circuit court commissioner, under which she obtained a judgment for possession of the premises, on June 4,1929.
Thereafter the defendant Huron Realty' Company, to whom the contract had been assigned, negotiated with her, and an agreement in writing was executed by them on July 16,1929, and annexed as a rider to the contract, which, after reciting the sale to Beardsley, the default, the declaration of forfeiture and the judgment for possession, stated that the realty company had acquired the interests of the assignees in the original contract and was desirous of continuing the payments and carrying out the terms of the contract, and provided that it should make payment of the sums due thereunder and certain taxes paid by the vendor, the full amount to be paid by April 18, 1935.
It contained the further provision:
“Second party hereto further, in consideration of the aforesaid, agrees and does hereby assume all claims of any one, including all assignees, syndicate certificate holders, vendees in any outstanding land contract for the purchase of individual lots in said premises, and all other persons and firms, and further agrees to hold the first party harmless in the premises, and that any'claim or demand of any of the aforesaid shall be satisfied or removed by proper legal means before the second party hereto shall be entitled to a conveyance of the aforesaid premises under the terms of the contract above-described.”
Thereafter Margarette S. Curtiss conveyed her interest in said property to the plaintiff. An agreement between him and the Huron Realty Company relative to the platting of said land was entered into on May 13, 1930. There being default in payment, the plaintiff filed the bill of complaint herein for the foreclosure of the contract, making Beardsley and his assignees and the Huron Realty Company and the purchasers of lots, including the defendant Truax, defendants. A subpoena was duly served upon some of them, and others were brought iñ by publication. A number of them were defaulted. Truax answered, alleging his interest as above stated, and averred his willingness to pay the balance due on his lot on receiving a deed therefor.
After a hearing thereon, the trial court entered a decree fixing the amount due plaintiff from the Huron Realty Company to be the sum of $67,187.83, and finding that the rights and interests of the other defendants were subsequent and inferior to the rights of the plaintiff, and that, upon the failure of the Huron Realty Company to pay the amount found due and interest thereon before April 6, 1932, the premises should be sold by a circuit court commis sioner and any deficiency arising therefrom be paid by said company.
The commissioner filed a report on the sale on June 18,1932, stating therein that the premises were sold to the plaintiff for $21,360, and that he had executed a deed to him therefor. He found the deficiency, after paying the expenses of sale, to be the sum of $47,954.54. No objection having been filed thereto, the court entered an order nisi on June 25, 1932, confirming the sale made.
On October 29, 1932, the plaintiff filed a petition for a writ of assistance to put him in possession of the premises, alleging therein that the defendant Truax was in possession of a part thereof and refused to deliver possession to him. Pending the hearing thereof, Truax, on November 9, 1932, filed a motion to vacate and set aside the decree and the sale made pursuant thereto for the reason that the Huron Realty Company, the owner of the vendee’s interest in the contract, had not been served with the summons issued; that the affidavit of service stated that this company was served by delivery of a copy to James E. Scott, its president, on November 3, 1930, whereas in fact said Scott had resigned as president of the company “approximately four months prior to November 3, 1930.” Affidavits in support thereof and in opposition thereto were filed and some testimony taken, after which the trial court entered an order vacating the decree for the sale of the premises and the proceedings- had thereunder, from which the plaintiff has taken this appeal.
The order is not here attacked for error on the part of the trial court in holding that the Huron Realty Company had not been served with process and that the decree was not binding upon it, but plaintiff’s counsel insist that the order should not have been made on motion of the defendant Truax, for the reason that he had no joint interest in the subject-matter of the suit with the Huron Realty Company, and for the further reason that Truax had full knowledge of the irregularity of service at the time of hearing and entry of the decree.
It was the duty of the Huron Realty Company as assignee of the interest acquired by Beardsley to protect the interest of the defendant Truax in the purchase of his lot. Had it failed to do so and permitted the property to be sold under a decree binding upon it and the interest of Truax to be wiped out by the sale made under it, Truax would have had a right of action against the company for the loss sustained by him thereby. But no such right of action now exists by reason of the failure of the plaintiff to make it a party defendant in the foreclosure. proceeding. Not having been served with process, it was under no obligation to appear and defend, and the decree entered was not binding upon it. To terminate the rights of Truax, it must appear that the rights of the realty company, which stood in the relation of a vendor to him, were also terminated.
In the petition filed for vacation of the decree, Truax stated that at a hearing had on October 21, 1931, the attorney for the plaintiff “was informed that no proper service had been made upon the Huron Realty Company, ’ ’ and it is here urged that he has been guilty of laches and not entitled to the relief granted. In the affidavit of the attorney for Truax, .filed on the motion, he stated that at the hearing above referred to he did inform the attorney for the. plaintiff that- no proper service had been made upon the realty company, but he deposed that he at that time also so informed the court and that no attention was paid thereto. There was proof of service upon the realty company and if the attorney for the plaintiff chose to rely thereon, we are impressed that Truax was under no obligation to test the question until his possession was interfered with.
The order appealed from is affirmed, with costs to defendant Truax.
McDonald, C. J., and Weadock, Potter, North, Fead, Wiest and Butzel, JJ., concurred. | [
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McDonald, C. J.
The purpose of this suit was to test the validity of drain proceedings. The hill was filed by owners of land affected by the drain. The defendant Deake was drain commissioner of Washtenaw county at the time the proceedings for the construction of the drain were instituted. Other defendants are the present drain commissioner, the county treasurer, and the township treasurer of Ypsilanti township, where the drain is located.
In accordance with a proper petition, the county drain commissioner established a drainage district comprising about 1,100 acres of land which he designated the “Beyer Drainage District.” The drain was completed at a cost of $300,000. The plaintiffs contend that the drain, so-called, is in fact a sewer ; that the action taken by the commissioner was under the drain law which gave him no authority to construct a sewer, .and therefore the whole proceedings are a nullity. On the hearing the trial court sustained the plaintiffs’ contention, and entered a decree enjoining the collection of the assessments for the cost of construction, and setting them aside as illegally imposed. The defendants have appealed.
The sole question involved is whether the drain, so-called, is in fact and in law a drain or a sewer. If a sewer, the commissioner was without authority under the drain law to construct it, and the whole proceedings are a nullity.
It is conceded that there was a pressing need of adequate drainage of this district comprising about 1,100 acres of land. The property owners desired it, and the hoard of determination found it was a necessity. But the plaintiffs complain that it was larger than was necessary for drainage purposes, and they stress its size as evidence that it was intended to function as a sewer. It was a large structure, hut it was designed to drain a large area of very wet land. The main drain was one and three-fourths miles long, an underground passage constructed of reinforced concrete tile varying in size.from 48 inches to 84 inches, with numerous 12-inch laterals, manholes, etc. Considering the water conditions, the character of the soil, and the topography of the land, a covered drain of considerable depth was necessary. The size of the tile necessary depends upon the amount of water to be carried by the drain. Engineers have established methods of determining the total volume of water that would flow through the drain, and thus are able with approximate correctness to determine the size of tile necessary to carry the flow. Their conclusions in this case, honestly^ and intelligently arrived at, are convincing of the fact that the large tile used in the construction of the drain was necessary to adequately drain the drainage area.
As additional evidence that the drain, so-called, was constructed to function as a sewer, the plaintiffs point to the manner, of joining the tile. It is their claim that the joints were cemented together in such a way as to prevent the infiltration of sub-surface water, a method used in the construction of sewers and not in the construction of drains. Whether the joints were made water tight was a disputed question of fact. There is a conflict in the testimony of witnesses who claimed to have examined them. The most dependable evidence on that question is that of Mr. Ohr, a civil engineer, who, by constructing a weir — a measuring device used by engineers — at the outlet of the drain, was able to measure the daily flow of water in dry weather. From his testimony, it convincingly appears that the joints of the tile were sufficiently porous to allow infiltration of the sub-surface water. The necessity for employing the method used in joining the tile seems to have arisen because of the condition of the soil where the drain was laid. The record shows that there was very fine sand in the nature of quicksand and it was necessary, if the structure was to function as a drain, that the joints of the tile be sealed against the sand but not against the water. It is the contention of the defendants that the method used accomplished that result and was not designed to make and did not make water-tight sewer joints. We think the evidence sustains this contention.
Further, in support of their contention that the drain, so-called, is a sewer, the plaintiffs claimed that it is capable of functioning as such and is actually used for that purpose. There are a number of houses in the district — the record does not show how many — but part of the district has been subdivided and some buildings erected. One purpose of the drain was the drainage of the area occupied by residences with flooded basements. It is possible to convey sewage from these residences into the laterals óf the drain after it has passed through septic tanks. To some extent that has been done. Householders were told by the commissioner that they could do so, but such use does not mean that the drain is used as a sewer. Feculent matter is removed by the septic tanks and the liquid therefrom is little different from the water which enters the drain from other sources. It is not filthy water, such as is carried by a sewer. Mr. Atwell, an experienced engineer, who had charge of the construction of this drain, testified:
“Anything that receives feculent matter in general would be a sewer. Anything else which takes the surface water and takes the ground water, I believe, would be a drain. And by feculent matter, I mean raw sewage matter, direct from the toilet without passing through a septic tank. The solids at least are removed in a septic tank. There are no evidences in the effluent from this drain that there are any solids of any kind.”
In their brief the plaintiffs say:
“The u.se of vitrified sewer pipe, reinforced concrete pipe, and manholes, and the size and method of construction, all point» to the indisputable fact that the structure was capable of use as a sewer, and, being so, falls squarely within the rule announced in Clinton v. Spencer” (250 Mich. 135).
If a drain of this size and character was necessary in the judgment of the commissioner for the adequate drainage of the district, and was designed and constructed for that purpose, it matters not that it is capable of being used as a sewer. In Clinton v. Spencer, supra, relied on by the plaintiffs as controlling of this issue, the drain was designed and constructed for the double purpose of a drain and a city sewer. In the instant case, the drain was designed and constructed for drainage purposes only. The proceedings followed by the commissioner are authorized by the drain law and are not to be invalidated because the drain constructed resembles a sewer or is capable of being used as a sewer. It was designed and built for drainage, and the record shows that it effectively serves that purpose. We think that the trial court erred in holding that it was a sewer.
The claim is made that the assessments for benefits as to some of the plaintiffs were so high as to be confiscatory. Undoubtedly there are some inequalities in the assessments. It would be strange and unusual if there were not. But where, as in this case, there is no fraud, and the assessing officer acted in good faith and on a theory reasonably expected to produce equality, the court will not disturb his judgment.
As the petition for the construction of this drain conferred jurisdiction on the commissioner, alleged irregularities in the drain proceedings cannot be taken advantage of in this case. If there were such irregularities as claimed by the plaintiffs, their remedy was by certiorari.
For the reason that the trial court erred in finding the drain in question was not in fact and in law a drain, his decree is. reversed. A decree will be entered in this court in accordance with this opinion. Defendants will have costs.
Potter, North, and Fead, JJ., concurred with McDonald, C. J. | [
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Potter, J.
Plaintiff sued defendant to recover damages in the sum of $826.88. From a judgment for plaintiff, defendant appeals. November 19, 1928, plaintiff subscribed for 300 shares of Globe Finance Corporation stock at $12.50 a share, payable $750 down and $3,000 in 90 days. Both payments to be made were evidenced by promissory notes. December 8, 1928, plaintiff paid the $750 note. A so-called stockholders’ prior-rights certificate of the Globe Finance Corporation was issued and delivered to plaintiff, giving him the right to purchase 600 shares or any part thereof of defendant’s stock at $12.50 a share. April 25, 1929, plaintiff wrote defendant he had purchased 600 shares of its stock and received a prior-rights certificate” but had not received the stock certificate. April 29, 1929, defendant wrote plaintiff suggesting he get in touch with one Mr. Madill through whom he had purchased the stock and who had been president of defendant corporation. June 11, 1929, defendant sent plaintiff 60 shares of its stock, the amount paid for, with the understanding Madill had returned plaintiff’s notes and subscription for the full amount of stock. The $3,000 note of plaintiff was returned by defendant to him. November 17, 1930, this suit was commenced.
Plaintiff alleges fraud in the representations and solicitations made to him, claiming the stock subscribed for was to be exchanged for industrial bank stock immediately upon the receipt of a charter by an industrial bank, and it was only upon this representation by Mr. Madill, defendant’s then president and authorized agent, plaintiff’s subscription agreement was signed. The declaration also,contains the common counts in assumpsit.
The certificate for 60 shares of defendant’s stock was not returned or tendered by plaintiff to defendant prior to or during the trial, nor was the $3,000 note by plaintiff to defendant which had been rede liverecl by defendant to plaintiff returned to or paid to defendant. The transaction here involved relates only to the .60 shares of defendant’s stock and the $750 note and its payment.
If the representations made were fraudulent, as claimed by plaintiff, when he discovered the fraud, he could rescind the purchase of the 60 shares of defendant’s stock and sue to recover what he had paid therefor. In order to effect such rescission, he should have redelivered or tendered back the 60 shares of stock. This sort of suit could only be maintained upon the theory defendant received money from plaintiff to which he was entitled; that plaintiff’s money was paid without proper consideration. Such suit would be against the corporation alone. Plaintiff did not rescind. He did not deliver or tender back to defendant, the 60 shares of its stock. He had it at the time of the commencement of suit and, so far as the record shows, still has it. He does not plead, nor seek to prove rescission. He cannot keep the stock and at the same time sue and recover what he paid for it. He cannot have both the stock purchased and the consideration paid therefor. He cannot blow' hot and cold; cannot both approbate and reprobate. No suit, based upon rescission, will lie.
Plaintiff might keep the stock and maintain a suit for damages. He could, if defrauded and damaged by such fraud, sue to recover the difference in value between what he bought and paid for and what he received; what he should have received and what he actually received. Such suit would lie against any and all persons who participated in the fraud; upon the theory of recovering damages for wrongful injury to plaintiff.
Plaintiff does not seek to do this. No such claim is made. There is no proof of the value of the stock received; no proof of what it would have been worth had the alleged false representations been true; no proof of damages and no basis for recovery upon -this theory.
If what plaintiff received was actually worthless when he received it, redelivery or tender back might be unnecessary. One is not required to do useless things; to tender back what is of no value. But here there is no proof of the value of the stock plaintiff received. For aught that appears here it may have been worth as much or more than he paid for it, at the time he received it.
The allegations of fraud in the declaration are promissory, relating to a possible future exchange of the stock purchased for stock expected to be issued in an industrial bank which it was hoped might be incorporated in the future, but which plaintiff knew might not be organized. The proof under the circumstances is insufficient to establish that plaintiff was deceived, misled or defrauded to his injury.
May the judgment be sustained under the common counts in assumpsit? The contract involved was a special contract. It was not, as plaintiff claims, performed. It was a contract on defendant’s part to deliver, as claimed by plaintiff, certain corporate stock. Plaintiff’s right to recover, if any, arises from the failure of defendant to deliver the property contracted to be delivered by it. Such a failure to deliver on the part of defendant must be specially pleaded. * Where a contract has been fully performed and nothing remains but the payment in money of the contract price, recovery may be had under the common counts in assumpsit. Phippen v. Morehouse, 50 Mich. 537; Thomas v. Caulkett, 57 Mich. 392 (58 Am. Rep. 369); Shaw v. Bradley, 59 Mich. 199; Bush v. Brooks, 70 Mich. 446; Flint & P. M. R. Co. v. Wayne Circuit Judge, 108 Mich. 80.
But where, as in this case, recovery is sought for a breach of a special contract, such contract, the breach thereof and the resulting damages must be specially pleaded. Flint & P. M. R. Co. v. Wayne Circuit Judge, supra.
“When a special contract has been wholly performed by one of the parties to it, and the other party can only perform his part by the payment of money, the money thus due can be recovered upon the common counts in assumpsit.
“But when the contract on the part of defendant is not to pay money, but to deliver to the plaintiff specified articles of property, the right of the plaintiff to recover the money arises, not from the performance of the contract on his part, but from the failure of the defendant to deliver the property; consequently suchf ailure must be specially pleaded. ’ ’ Nugent v. Teachout, 67 Mich. 571.
No recovery may be had under the common counts in assumpsit..
Judgment reversed and judgment directed for defendant, with costs.
McDonald, C. J., and Weadock, Sharpe, North, Fead, Wiest, and Bittzel, JJ., concurred. | [
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Butzel, J.
August Carlson, employed as an edgerman by E. H. Sheldon & Company, suffered a compensable injury on October 21, 1929. After receiving compensation for five days under the terms of an approved agreement, he signed a final settlement receipt which was duly filed, but never approved, by the department of labor and industry.
Plaintiff sustained an injury to his right arm through a hard blow from a board thrown out of the edger. After a brief interval, he resumed work for about an hour and a half but eventually found himself unable to continue.. The following day he was sent to his employer’s physician who, after a week’s treatment, sent him back to work with the assurance that there was nothing wrong. Plaintiff’s return to work on November 2, 1929, is explained by him as motivated by financial necessity rather than by physical fitness. He continued to work steadily for two weeks, during which time he cláims he experienced considerable difficulty, and would have been unable to continue working at his regular employment had not the completion of the cut at the mill compelled its shut down for the time being. At that time, the employer’s scaler or bookkeeper looked at his arm and told him to return to the company doctor for further treatment. After two more weeks of treatment, the company physician provided him with some mild medication for his arm and stated that he could do nothing further for him. Plaintiff immediately went to another physician and received about four more treatments. Since that time he has tried various home remedies.
On May 10,1930, he resumed his position as edger-man and continued until July 15,1930, when the loss of the tip of a finger on his left hand incapacitated him. He received compensation for this injury. On August 15, 1930, he returned to work again and continued until September, 1930, when the cut was finished. Immediately thereafter, he worked for a short time as a swamper, until laid off, although he claims the strain on his arm would have prevented his continuing at work any longer. Since that time, he has not been employed except for very brief in tervals in the fall of 1930, and he alleges that inability to control the movements of his right arm prevents him from doing his regular work.
Plaintiff filed with the department of labor and industry a petition for further compensation and to review payments. He claims that he has been incapacitated since November 2, 1929. After a hearing, a deputy commissioner denied further compensation. The case was reopened for further testimony but the commissioner again denied an award, and, on review, his decision was affirmed by the department. Plaintiff brings an appeal in the nature of certiorari to this court. In the opinion of the department, it is stated that the settlement receipt filed with it was never approved, but nevertheless it affirms the findings of the commissioner and further states that he had the advantage of seeing the witnesses. He also saw the injured arm but is not a physician. The symptoms are largely subjective and cannot be seen from an external and cursory examination of the arm. The opinion of the department states that the question of whether or not plaintiff’s disability was the result of the accident of October 21, 1929, must be decided very largely upon the medical testimony.
A review of that testimony shows that he was examined by the company physician and also by two doctors of his own selection. One of them, Dr. T. W. Schultes, examined plaintiff several times prior to the hearing, heard the testimony and had the benefit of examining X-rays taken on the day of the hearing. He stated:
‘ ‘ The X-ray showed a condition at the head of the radius of apparent arthritis, and at the shoulder, near the carotid process, there is an opacity in the plate showing the probability of fibrosis. ”
He further testified that plaintiff had some anaesthesia in the area of the inner side of the upper arm and on the external surface of the lower part of the arm; that the grip of the right hand was less than that of the left; that there seemed to be a generally weakened condition of the entire arm on the right side, and that plaintiff was not able to do the work of an edgerman. He further testified:
“The blow struck him right in the area of the musculo-cutaneous nerve; this musculo-cutaneous nerve supplies the biceps muscle, the carotid and brachialis anticus and the major muscles that we use in flexing the arm.
“From the history he gave he undoubtedly received such a contusion of the forearm that he developed a condition of the nerve that has more or less paralyzed those muscles, and the result is paralysis from non-use, which developed ankylosis and the fibrosis at the carotid process.”
The testimony of another physician largely corroborated that of Dr. Schultes. Both doctors stated, however, that arthritis is not always occasioned by trauma, and that it could cause some of the symptoms complained of.
The deputy commissioner found in the opinion approved by the department that plaintiff was a man 67 years of age, naturally impaired by age and suffering somewhat from rheumatism; that it appeared that work in his line was not to be had,- that common labor jobs were going to younger men, and that when there was employment he worked, earned full wages and gave a full day’s work; and that now, for reasons for which none of the parties are to blame, he is out of work.
We do not believe that there is any evidence to sustain this finding, except perhaps the fact that there is no work to be had, but this does not affect the issue as to plaintiff’s inability to do work on account of his injury. It was shown that the defendant employer operated his mill in 1931, but that plaintiff was not employed; that on the occasions when he did work following his injury, he met considerable difficulty because of the disability to his right arm. A careful reading of the testimony leads to only one rational and natural inference, that the plaintiff is still suffering from the original injury.
On the taking of further testimony by the deputy commissioner, defendants offered the company doctor as a witness. Plaintiff objected, unless they were also given the opportunity to produce more medical testimony. The commissioner refused to hear any further medical testimony. No objection was made to this ruling by defendants and no other doctors were called.
We do not believe that there is any testimony showing that plaintiff is no longer incapacitated as a result of his original injury. The case is an exceedingly close one but plaintiff has shown that he is still suffering from his original injury, and therefore entitled to an adjustment of compensation, and further compensation as asked for by him, while defendants have not shown any facts to the contrary. The order should be reversed, with costs to plaintiff, and the case remanded to the department. of labor and industry for further proceedings.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred. | [
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Fead, J.
The action is at law on an appeal bond in a summary proceeding. Defendants had judgment on trial before the court without a jury.
In 1923 plaintiffs sold a piece of real estate on contract to defendant Collins. In about a month Collins assigned his vendee’s interest to Barnard Toy Company. The latter refused to make payments until Collins should be released from liability and plaintiffs produce a copy of the contract under which they held. Collins, under instructions and direction of Louis Cohane, vice-president and secretary of the Barnard Toy Company, represented the company in the negotiations with plaintiffs, which lasted some weeks and culminated in release of Collins and a payment on the contract by the company. Collins, under Cohane’s direction, also handled negotiations regarding a subsequent instalment which the company refused to pay until vendors should furnish a copy of their contract of purchase but which they were unable to procure.
For default in payments, plaintiffs on July 3, 1923, commenced summary proceedings for possession before a circuit court commissioner, against •Barnard Toy Company. The suit was dismissed because no notice, of forfeiture had been served. They Then served, .notice, of forfeiture and, on July 20th, commenced-new summary proceedings against both Collins and the company. The reason for including Collins does not appear.
Process was returned served on both defendants, and Louis Cohane appeared and defended for them. Plaintiffs had judgment of possession against both defendants and appeal was taken in their behalf. The affidavit on appeal was made by Alfred Klunover as their duly authorized agent. Klunover was an attorney in the employ of Cohane, who had instructed him to take the appeal. The names of Barnard Toy Company and Collins were written on the bond in the signature place by Cohane and were followed by Klunover’s name as duly authorized agent, written by himself. Klunover testified that Cohane told him to sign. Cohane said he instructed Klunover to obtain the signature of Collins and the president of the Barnard Toy Company, assumed he had done so, made no inquiry, and did not know the fact until some four years later, when Collins made an affidavit of non-execution of the bond.
On the first trial in circuit court the jury disagreed. On the second trial, April 22, 1924, plaintiffs, by direction of court, had judgment against both defendants. Defendants appealed to this court and the judgment was affirmed in July, 1927, 240 Mich. 23. Collins was a witness for defendants in both trials. Cohane appeared as attorney for both defendants. No stay bond was filed on appeal to this court.
Shortly after the judgment in circuit court Cohane, in behalf of Barnard Toy Company, began a suit in equity to;'restrain plaintiffs from taking possession of the premises; in behalf of defendants/ proffered a belated stay bond, to which Collins’ name was signed by Cohane as his attorney-in-fact; sought mandamus in this court to obtain approval of the bond and restrain possession; and commenced an action for damages against plaintiffs for wrongfully suing out a writ of restitution. In these various proceedings Cohane represented that proper appeal bond had been filed in the summary proceedings.
This action was commenced in September, 1924, to recover on the bond on appeal to circuit court. Collins was served with process, knew the action was on the bond, knew it was claimed he was a party to the summary proceedings and bond and that he was liable on the bond. He appeared by attorney and demanded a hill of particulars. The original declaration, filed November 11, 1924, recited the facts of his liability but did not set up a copy of the bond. The case laid dormant until after the decision in 240 Mich. 23. Amended declaration setting up copy of the bond was filed in January, 1928. Collins pleaded, with notice and affidavit, that the bond was not signed by him or any duly authorized agent. The other defendants gave notice of 13 special defenses but did not deny execution.
February 25, 1928, on plaintiffs’ motion for summary judgment, Collins broadened his claims and made affidavit that the bond had not been signed by him nor with his knowledge or consent, nor was Klunover his agent or authorized to execute the bond, and that he had been released from the contract and had no interest in the property or summary proceedings. The other defendants then filed amended pleas, including non-execution, upon the claim that the bond was not valid as to them because they had executed it on condition that Collins should sign it, and it had been treated, in effect, as in escrow to obtain Collins’ signature. In May, 1931, Collins filed plea of the two-year statute of limitations (3 Comp. Laws 1929, § 13976).
In May, 1931, the cause was dismissed on demurrer to the declaration. The judgment was reversed October 3, 1932, 260 Mich. ¿32. The instant trial began December 19, 1932. Three days before, Collins had made a motion to amend the circuit court judgment in the summary proceedings, mmc pro tunc, by striking his name from it because (a) the court had directed verdict against Barnard Toy Company only, (b) Collins had been released from liability and had no interest in the premises, (c) the evidence showed Collins had had- no possession, (d) Collins was not a party to the circuit court suit and appearance for him by Cohane was not authorized, (e) Collins had not appeared in circuit court nor authorized appearance, affidavit or bond, (f) Collins was not a proper party, and (g) he had not been served with process. In affidavit to the motion, Collins deposed to the above claims and also that, until the present suit was commenced, he had no knowledge that he was named a party to the summary proceedings and did not know of the commissioner’s judgment against him.
The motion was heard with the main case and the judgment ordered amended by declaring Collins not guilty of withholding possession. The amendment was based wholly upon the direction of verdict by the court. Plaintiffs appealed from the order and it was submitted with the main case.
Collins’ defense is non-execution of the bond, non-authorization and non-ratification of it. The other defendants deny liability on the ground that their signatures were to be effective only if Collins should sign. The court found as facts that Collins had not authorized nor ratified the bond nor was he estopped from denying its execution in his behalf.
In finding the facts, it would appear that the court failed to take into account that this is not a mere private lawspit. It involves the integrity of judicial proceedings around which the law casts strong presumptions, necessary to he indulged in order to protect the rights of adverse parties and to give final force to judgments.
The record, upon which plaintiffs had a right to rely, was that Collins was a party to the summary proceedings on personal service of process, he appeared by attorney, appealed to the circuit court, was a witness on both trials, and appealed to the Supreme Court, all without intimation of irregularity. Aside from presumptions established by law, an attack upon judicial proceedings, regular upon the records, first made many years after a party to them is notified by suit of the claim of his liability, needs clear and convincing evidence to sustain it.
The record contains no direct testimony that Collins specifically authorized Cohane or Klunover to take an appeal, sign the bond for him or appear as his' attorney. So we will turn to the question of whether he ratified such proceedings. Collins asserts he did not ratify because he did not know he was a party to the summary proceedings as he had never been served with process and had not authorized Cohane to appear for him.
Collins’ claim that he had not been served with process rests upon his positive denial of service and his uncertain relation of circumstances, some of which were told him by his wife.' There was no corroboration. In a direct attack upon the judgment, corroboration would have been necessary to impeach the return of service. Garey v. Morley Brothers, 234 Mich. 675. No less measure of proof is reasonable where the purpose is to avoid liability on a bond, upon which an appeal was permitted and plaintiffs deprived of possession, and where claim of non-service is made eight years after knowledge of claim of liability in a suit at law for recovery on the bond, and no proceedings by direct motion or in equity had been had to correct the court records.
It is a universal rule that an attorney-at-law is presumed to have authority to represent a party litigant for whom he appears. 6 C. J. p. 631. When a party denies the authority he must proceed promptly and unequivocally to repudiate the appearance and to permit no more acts thereunder. Failure to disapprove works ratification. Corbitt v. Timmerman, 95 Mich. 581 (35 Am. St. Rep. 586).
“The party for whom the appearance has been entered, if without knowledge of that fact, may object at any time on being informed thereof, even after judgment. But a suitor who does not disclaim the authority of an attorney who assumes to represent him in an action after he has acquired knowledge thereof, cannot do so afterwards. He cannot take the hazard of a trial and, when unsuccessful, allege as ground for vacating the judgment that the attorney who conducted the trial had no authority. ’ ’ 1 Thornton on Attorneys at Law, p. 431, § 238.
•Collins testified he had never employed Cohane nor authorized him to appear for him. .Cohane said he “thought,” “believed” he had authority to represent Collins but failed to state the reason for his belief. Cohane’s failure to be positive does not add strength to Collins’ denial of his authority. Cohane’s financial interests are bound up with those of Collins in this snit. The sidelights indicate Cohane’s authority to represent Collins. They had worked together in connection with the contract. It would have been natural for Collins to turn the summons over to Cohane to represent him. Collins and Cohane were the principal witnesses for defendants in circuit court. Collins ’ name appeared first of the defendants in the title of the cause. It is quite incredible that he did not know he was a party and Cohane was representing him.
Subsequent events affirm his knowledge. He knew in 1924 of the claim that he was a party to the suit and the bond. He made no complaint to or inquiry of Cohane, nor other officer of the Barnard Toy Company, with whom he was friendly and whom he met socially, made no denial to plaintiffs and took no proceeding to clear the record. The progressive nature of Collins’ claim, as shown above, in his pleadings and affidavits, expanding to fit the necessities, casts persuasive doubt upon his present position.
In our opinion, the circumstances, combined with the presumptions and lack of corroboration of Collins’ denial of authority, clearly establish the fact that Cohane was authorized to represent him.
Being in court on service of process and represented by an authorized attorney, Collins’ subsequent participation in the cause was a ratification of proceedings taken by Cohane, including the appeal (2 R. C. L. p. 1008), and execution of the bond (4 C. J. p. 1269).
Cohane’s claim that he and the Barnard Toy Company agreed to execute the bond only upon the express condition that Collins should execute it personally is so wholly unreasonable as to deserve no discussion. Moreover, an attorney cannot practice law through employees and disclaim knowledge of their acts and escape responsibility for what they do.
If not originally authorized, nevertheless, by ratification, Collins’ signature was effective when the bond was filed. This satisfied the condition upon which the other obligors signed, if, indeed, they executed on condition.
The appeal from the. order amending judgment needs no discussion as the question is moot.
Judgment reversed and cause remanded for trial only on the amount of damages and for entry of judgment for plaintiffs thereon, with costs.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred. | [
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Fead, J.
The action is to abate a private nuisance, arising from the operation of defendant’s oil refinery. The court held:
“That the refining plant of defendant in its process ' of distillation emits noxious gases, nauseous odors and irritating vapors, and that unusual, unnecessary loud and disturbing noises are created by the defendant upon its premises, all of which are discomforting and annoying and detrimental to plaintiffs’ health.”
• The decree required defendant to abate the nuisance before June 15, 1932, and, on failure to do so,
'“It-is hei'eby perpetually enjoined from permitting noxious gases, nauseating odors ánd irritating vapors to emanate from its said plant, and from creating unusual unnecessary loud, disturbing noises in the operation of its refinery.”
Thirty-four years ago plaintiffs established their home in Carrollton township, Saginaw county. The neighborhood is industrial and odorous.
There are only about 25 homes in the vicinity. Two-hundred-fifty feet back of plaintiffs’ home are railroad tracks. On the far side of the highway, in front, is another track. Across the road and 200 feet away is defendant’s refinery, erected in 1931. When plaintiffs established their home a sawmill was operated on the premises now occupied by defendant. Later it burned down and for some years the land was used for pasture.
Forty-seven hundred feet from plaintiffs’ home is a foundry, which produces unpleasant gaseous odors. Twenty-five hundred feet distant is the stagnant and smelly open sump of a tannery. Twenty-three hundred feet away is the city dump, proving its presence to the nostrils of the neighborhood. Thirty-seven hundred feet distant is a building in which dead animals are dismembered, to be sent to a rendering plant by trucks. The trucks pass plaintiffs’ home. The witnesses are agreed as to the pungency of the odors, which remain long after the trucks have gone by.
The operation of refining oil is practically silent. The noises plaintiffs complain of occur in delivery of crude oil to the plant in railroad tank cars and motor trucks. On a tank car is a dome with iron cover attached by a chain. In unloading, the workmen permit the cover to drop and strike the dome or tank with a loud clang. In addition, there are noises caused by the switching of tank cars, the movement of trucks and loud talking’ of employees at night.
An oil refinery is a legitimate business and not a nuisance per se, but it may become a nuisance by reason of fumes being given off. 46 C. J. p. 717. Tbe fact that other plants foul the air with odors does not justify introduction of another cause of discomfort to householders. But their presence is a circumstance bearing upon the degree of annoyance and the scope of relief. The district being industrial, home owners must endure inconvenience of noise and odor which would not be tolerated in a residential neighborhood. They cannot complain of such as arise in the ordinary and skilful conduct of legitimate business so long as their health is not injured thereby. But extraordinary or unnecessary noises or smells which introduce serious annoyances, above, those which arise from the ordinary and proper conduct of the business, are actionable. 46 C. J. p. 667; McMorran v. Cleveland-Cliffs Iron Co., 253 Mich. 65; Dahl v. Utah Oil Refining Co., 71 Utah, 1 (262 Pac. 269); 1 Thornton’s Law of Oil & Gas (4th Ed.), §§ 664-672.
The testimony does not demonstrate that the cars and trucks were handled in an extraordinary manner or with unnecessary noises. Plaintiffs have shown no just cause of complaint in this respect. The clanging of iron covers upon the tanks or domes is an unnecessary noise, easily avoided, and is particularly annoying because of its proclivity to startle a person out of sleep. The loud talking of employees is also unnecessary, easily controlled, and disturbing because of its aptitude to awaken and keep a person awake. In these two items, the noise nuisance exists and plaintiffs are entitled to relief from it.
The testimony as to odors is in sharp conflict and appears to be attended by some exaggeration on both sides, not uncommon in nuisance cases. Plaintiffs complain of occasional nausea, vomiting, dizzi ness, headaches, irritated eyes and throats, which they attribute particularly to sulphur dioxide and hydrogen sulphide g'ases from defendant’s plant. The latter gas has the smell of rotten eggs and plaintiffs sajr it penetrates the house, permeates the food and makes living in their home intolerable. Plaintiffs’ daughter said the odor caused her hair to stand on end. Her mother corroborated the assertion. Perhaps, in the interest of accuracy and for the benefit of future scientific research, it should be recorded that the young lady wore her hair bobbed.
Defendant contends its plant produces neither of such gases nor any other which can have the effect claimed by plaintiffs and that the latter have not connected the refinery with their physical ailments or annoyances.
Both sides are supported by the testimony of neighbors and experts. Defendant had the larger number of witnesses. Some of the latter admitted perception of strong odors from the plant, especially the smell of gasoline and crude oil.' Crude oil had been allowed to spill on the ground in considerable quantities. Doctors who attended plaintiffs testified to the odors and attributed the disorders of plaintiffs and others to the gases and impurities in the air. Plaintiffs do not claim the distressing gases are continuous but say they are frequent and depend upon direction of the wind.
Plaintiffs are unable to determine positively the specific causes of the gases but they suggest the hydrogen sulphide and sulphur dioxide gases are produced in and distributed from a device called the agitator, which has an air vent through which gases may escape, and an open sump into which the waste is drained. In that operation kerosene is agitated by steam. The crude oil carries traces of .sulphur. Sulphuric acid also is put into the agitator to destroy foreign particles in the kerosene. And it is claimed that the sulphur gases are thus generated and released.
Defendant .presented several chemists who conducted experiments and testified that neither of the sulphur gases is produced at the plant in admeasurable quantities. Plaintiffs presented only one expert, a high school teacher of chemistry. The chemists could not agree upon whether sulphur gases were generated in the agitator. They undertook to demonstrate their contentions by an experiment. In their laboratories they distilled kerosene from crude oil to the condition at which it goes into the agitator. They brought the product into court and there added sulphuric acid. Defendant’s chemists were unable to produce a smell. Plaintiffs’ chemist evolved such an odor of rotten eggs as almost to clear the court room. The difference in results left the laboratory work open to suspicion and accusation. It. is unfortunate, in view of the importance of the issue to both parties and the need for accurate determination of the cause of plaintiffs’ difficulties, that the court did not suggest and witness a joint experiment of the whole process. The credibility of witnesses is a controlling factor in the case. It is clearly established that the refinery produces obnoxious fumes. The testimony of the doctors has much weight in demonstrating that the fumes are noxious — injurious to health. It is evident the court accepted the experiment of plaintiffs’ chemist as the more reliable. We think the record amply supports the conclusion of the court that gases from defendant’s plant have caused plaintiffs disturbances of health.
Defendant contends the decree is void, as too general. Ballentine v. Webb, 84 Mich. 38 (13 L. R. A. 321). The testimony is that the plant is operated in an ordinary and proper manner, except for the named unnecessary noises and spilling crude oil on the ground. As to gases and odors not arising from the spilling of oil a nuisance exists only in so far as plaintiffs’ health is affected. It would have been well had the court personally inspected the premises and conducted further investigation to determine the scope of the decree and make it as specific as the circumstances would permit. Northwood v. Asphalt Paving Co., 126 Mich. 284 (54 L. R. A. 454); MacKenzie v. Frank M. Pauli Co., 207 Mich. 456 (6 A. L. R. 1305).
The sources of nuisances which appear proved are:
1. The named unnecessary noises.
2. The spilling of crude oil on the ground, thereby adding an unnecessary odor.
3. The discharge of sulphur gases to the injury of plaintiffs’ health from the vent in the agitator and from the open sump.
Specific mention and directions should be provided in the decree for those conditions and, of course, may be followed by a general clause, as appeared in the Northwood Case.
The circuit court will have the responsibility of enforcing the decree. Consequently, we desire the assistance of the court in determining its form. The cause will be remanded to the circuit court to conduct the investigation mentioned above and to recommend to this court a modified decree in accordance with this opinion. Counsel may present a form of decree for approval, under the practice as for settlement, both in circuit court and this court. Plaintiffs will have costs.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Wiest, and Bijtzel, JJ., concurred, ■ | [
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Fead, J.
Plaintiff had verdict and judgment for $560, for labor and materials in installing electric wiring in defendant’s service station.
Defendant submitted specifications to plaintiff and the latter made a written proposal to do the job for $226.30. Defendant did not sign the proposal but directed plaintiff to commence work. It was undisputed that plaintiff began the work under the contract. The fact that the specifications were part of the contract was not denied. There was no error in the court’s failing to give defendant’s requests to charge upon such matters, framed as though they were in dispute.
Plaintiff claimed that shortly after he commenced work he and defendant agreed that the written contract and specifications should be discarded and the installation proceed without reference to them. His claim was supported by a witness. Defendant contended the written contract remained always in force. An issue for the jury was so presented and its determination in favor of plaintiff was not against the great weight of the evidence.
The court also submitted the measure of damages upon the respective theories of the parties and the amount found for plaintiff was well within the evidence. The errors, if any, in charging upon dam ages under defendant’s claim of the contract were inconsequential because the jury rejected the claim.
There was no error in the admission of any testimony to which objection was seasonably made.
Judgment affirmed, with costs.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Wiest, and Btjtzel, JJ., concurred. | [
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Sharpe, J.
The information in this case charged the defendant with taking indecent and improper liberties with the person of a female child 10 years of age. Upon the trial she testified that defendant, standing in front of his house, said he had a job for her and would pay her a nickel; that she went into the front room with him, and that he said they would better go into the kitchen as somebody might see them; that in the kitchen he told her to sit down; that she “was wearing bloomers with rubber bands in the bottom, he pulled up both legs of the bloomers about half way between the knees and the thigh,” and told her he was going to draw a picture; that he had a paper and sat down in a chair and began drawing her legs with a pencil; that some of the other children called to her and she wanted to go and he gave her a nickel and told her not to tell anybody and she said “yes.”
The defendant testified that he worked in an automobile plant and that painting was a “side line” with him; he had taken drawing lessons in school and had painted about 10 pictures; that he had drawn faces, but not a picture of a living person; that this child was the first model he ever had. He described what occurred as she did, and said he asked her not to tell because “she started whimpering, I thought she would go home crying, and something would be thought wrong.” He was at that time 41 years of age. Dr. Byers testified that lie had purchased a picture from the defendant and “knew he was an artist.”
The case was tried before the judge without a jury. He stated:
. “In this case it does not appear that the respondent was guided by any immoral motive or any immoral intent; it does not appear that he was guided by passion or lust, or that he intended to place his hands in any manner upon the private parts of this little girl. Had he so intended there was ámple opportunity to do that.”
He, however, found that defendant’s conduct was “improper” and convicted him “of taking improper liberties. ’ ’
The purpose of the statute (Act No. 328, Pub. Acts 1931, § 336) is to punish male persons who take indecent and improper liberties with the persons of female children. The liberties referred to are such “as the common sense of society would regard as indecent and improper.” People v. Hicks, 98 Mich. 86, 90. Had the father or mother been present, it is doubtful if they would have objected to what was done by the defendant. The record discloses no indecent and improper liberties taken with the person of the little girl.
The conviction is set aside and the defendant discharged.
McDonald, C. J., and Weadock, Potter, North, Dead, Wiest, and Butzel, JJ., concurred. | [
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Wiest, J.
This is an appeal from refusal of the circuit court to vacate a decree dissolving a corporation.
The Alloy Steel Spring & Axle Company, herein referred to as the corporation, was organized in 1914, under Act No. 232, Pub. Acts 1903 (2 Comp. Laws 1915, § 9017 et seq.). In June, 1928, the corporation amended its articles under Act No. 84, Pub. Acts 1921 (2 Comp. Laws 1929, § 9943 et seq.), and adopted by-laws providing for election of directors:
“Who shall be chosen by and from.the stockholders at their annual meeting to hold office for one year or until their successors shall be elected and qualified. * * * _
_ “In case any director shall die, resign or dispose of all of his stock, his position as director and any office he may hold shall thereby become vacant and such vacancy may be filled for the remainder of the year by the board of directors. ’ ’
The mentioned acts provided that all directors be shareholders.
Act No. 327, Pub. Acts 1931, codified corporate law, and section 13 thereof provides that “directors * * * need not be shareholders unless the articles so provide.”
January 20, 1932, qualified directors were elected and no successors have been elected. One director resigned. Three of the remaining four directors disposed of their shares of stock in the corporation and thereafter, on August 4, 1933, the three adopted a resolution authorizing the board to petition the court for dissolution, of the corporation and appoint a receiver under the statute (3 Comp. Laws 1929, § 15310 et seq.). . August 5, 1933, the three nonshare holding directors.petitioned the court for such dissolution and, upon notice and hearing, the court, .on September 20, 1933,- dissolved the corporation, ap-pointed a receiver and ordered sale-of the assets. The sale was set for October 23, 193.3. October 21, 1933, creditors and stockholders, petitioners herein, asked the court to vacate .the order of dissolution and direct return of all assets to the corporation, alleging that the petitioners for dissolution were not qualified directors and could not and did not give the court jurisdiction to act. Denial of the petition presents,the following question:
"Where the by-laws of a corporation adopted under Act No. 84, Pub. Acts 1921, require directors to be stockholders and further provide that upon disposing of all of their stock their office as such directors shall become vacant, and the corporation continues to exist after Act No. 327, Pub. Acts 1931, goes into effect, do persons duly elected directors of such corporation have authority to file petition for dissolution under 3 Comp. Laws 1929, § 15310, after disposing of all of their stock?” '
Two other questions are presented but an affirmative answer to the mentioned question disposes of them.
The acts of 1903 and 1921 both required that directors be shareholders. This statutory requirement was carried into the by-laws in 1928, together with its necessary sequence that loss of the essential qualification occasioned vacancy. The statute evidenced a legislative policy and the by-laws, corporate commitment thereto, thereby authorizing management of the affairs of the corporation by persons having a pecuniary interest therein. The act of 1931 was permissive and not mandatory of a different policy, and did not, by implication, revoke or prevent continuance of the former policy, set forth in the by-laws. Corporations, organized under the 1931 act, may, by by-law, provide that directors be shareholders. Upon ceasing to be shareholders the directors ceased to be directors cíe jure but, if they continued to act, and were so permitted to act by the shareholders, then action by them, under color of the position and title they held in fact, authorized the court to accept and act upon their petition for dissolution of the corporation for, in the eye of the law, in this proceeding, they were de facto directors. It appears that they worked with a creditors’ committee in an endeavor to bring the corporate affairs to an adjustment before seeking dissolution, and it is significant that, upon statutory notice of the hearing upon the petition for dissolution, no stockholder or creditor appeared in opposition thereto.
The statute of 1931, in declaring that directors need not be stockholders, did not at all change the right of a corporation to provide by by-laws that directors must be stockholders. The by-laws here involved are consistent with the present statute.
In 2 Fletcher, Cyclopedia Corporations (Perm. Ed.), § 298, it is said:
“Even if a general statute permits the president to be one other than a director, the board of directors may by their by-laws limit the choice of such officer to one- of their number.”
And in 8 Fletcher, Cyclopedia Corporations (Perm. Ed.), §4183:
“Existing by-laws on a particular subject are not necessarily abrogated by the enactment of a statute on the same subject with provisions at variance with the by-laws where the terms of the statute are permissive. ”
The by-laws were not abrogated by the act of 1931.
In Despatch Line of Packets v. Bellamy Manfg. Co., 12 N. H. 205, 223 (37 Am. Dec. 203), a by-law of a corporation provided that any person chosen a director should cease to be one when he ceased to be a proprietor and it was held:
“By electing him a director, and permitting him to act as such, the corporation held him out to the world as a director — as one of their agents, having all the powers of an agent of that description, and to be trusted as such. And it was only necessary, under such circumstances, for those who dealt with the corporation through him, to inquire what powers directors had, and what acts the corporation had authorized them to do. They were not required to investigate the qualifications which the corporation had prescribed to itself, as the condition upon which any one should be elected, or permitted .to act. ’ ’
In San Jose Savings Bank v. Sierra Lumber Co., 63 Cal. 179, it was held, quoting syllabus:
“A director of a corporation, who ceases to be a stockholder during the term for which he was chosen, but continues to act as a director, no judgment of ouster having been pronounced against him, is a director de facto, and his acts are valid as to third persons. ’ ’
In Tufts v. Waltham Auto Bus Co., 273 Mass. 390 (173 N. E. 537), it was held that the acts of de facto directors, in authorizing an attorney to agree to the entry of a. judgment, were valid and binding upon the corporation and its creditors. We quote from the opinion:
“Gr. L. c. 156, §22, in its material part reads: ‘Every director, unless the by-laws otherwise provide, shall be a stockholder. The directors and other officers shall hold office for one year and until their successors are chosen and qualified.’ The quoted provision of the statute when applicable has for its object the creation of a body of directors, the members of which hold, a defined tenure of office and are personally interested in its financial success. The statute has the further purpose that at all times corporations shall have agents efficient to execute for their corporations all acts which by the laws of the Commonwealth are required to be performed by the directors and officers. The plaintiff does not con tend that Tickton, Page and Thomas were not eligible when elected directors or that as snch they had not authority to institute the action against the insurance company, and there is no dispute between the parties to the action but that each director had become disqualified to hold the office of director when the individual defendants, acting as a board of directors of the corporation, authorized its attorney to make the agreement and to enter judgment in the court for the defendants without costs. * * * In the circumstances here found the individual defendants must be held to have acted at least as de facto directors and as such to have had authority to authorize Bannan to enter the judgment for the defendants. ’ ’
In Kuser v. Wright, 52 N. J. Eq. 825 (31 Atl. 397), it was claimed that a director had disposed of his stockholdings and, by force of the statute, ceased to be a director. The court stated:
“That such a result justly or legally flows from these premises cannot be conceded.- It is apparent that dealing with these corporate bodies would be in the highest degree hazardous and unsafe if the public, without notice in fact, is chargeable in law with knowledge of a latent infirmity in the title of every director of the company.
“Bell’s original title to the office of director was good; it is not denied that he was legally elected. The corporation held him out to the public as one of its duly-authorized agents by failing to declare his office vacant and electing his successor.”
See, also, Doremus v. Dutch Reformed Church, 2 H. W. Green Ch. (3 N. J. Eq.) 332.
In MacMahon v. Stepney Spare Wheel Agency, 140 App. Div. 554 (125 N. Y. Supp. 823), it was held that a petition for dissolution of a corporation, signed by a de facto director, was sufficient to confer jurisdiction upon the court to entertain the proceedings. To the same effect, see Matter of Manoca Temple Ass’n, 128 App. Div. 796 (113 N. Y. Supp. 172).
The petitioners for the dissolution were de facto directors of the corporation.
' It follows from what we have said that the court had jurisdiction to decree dissolution of the corporation and the order, denying the petition to vacate the order of dissolution, is affirmed, with costs.
Nelson Sharpe, C. J., and Potter, North, Pead, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Potter, J.
Plaintiff filed a bill in equity, after loss by fire of defendant’s house and contents, insured therein, to cancel its policy of insurance. De fendant, by way of cross-bill, sought to recover for the loss and damage insured against. From a decree for defendant plaintiff appeals. The policy, a Michigan standard form, was issued by plaintiff on defendant’s dwelling house. Prior to the fire which destroyed it, defendant, while his family was away, engaged with others in the manufacture of counterfeit money therein, for which he was subsequently convicted in the United States district court for the western district of Michigan, and sentenced to prison. The policy provided:
“This entire policy shall be void if the insured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof.”
The policy does not provide it shall be void if the hazard is increased, but that the insurer shall not be liable for loss or damage “while the hazard is increased by any means within the control or knowledge of the insured.”
It further provides:
“No suit or action on this policy, for the recovery of any claim, shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, nor unless commenced within 12 months next after the liability shall have accrued: Provided, however, This company may not base a defense on any breach of the conditions of the policy to be performed by the insured prior to loss or damage, unless such breach exists at the time of the loss or damage, or contributed to the loss or damage, or to the amount thereof. ’ ’
Insurance policies, like other contracts, are to be construed as a whole. The intent of the parties is to be gathered from the four corners of the instrument. The policy in question does not provide: It shall be void in case the hazard is increased, but that the insurer shall not be liable for loss or damage while the hazard is increased by any means within the control or knowledge of the insured. It further provides that the insurer can defend only, first, if the breach exists at the time of the loss or damage; or second, contributed to the loss or damage or the-amount thereof. Had the insured known the premises were being used for the purposes of counterfeiting, it would, probably not have issued the policy in the first place and would, have had a right to cancel the policy because of increased hazard (Bonefant v. Insurance Co., 76 Mich. 653; Spinner v. Concordia Mutual Fire Ins. Co., 264 Mich. 388; Graley v. American Eagle Fire Ins. Co., 235 App. Div. 490 [257 N. Y. Supp. 566]); and if the house was being used for the manufacture of counterfeit money at the time of the fire, it is probable plaintiff would be entitled to relief.
A small foot-power printing press in the basement of the house had been used to print counterfeit money. The trial court found this printing press was not operated after July 25, 1932, the fire which destroyed the house and contents did not occur until August 14, 1932, the house was not being used for counterfeiting at the time of the fire, during all the time the policy was in force the house was used and occupied by defendant as a dwelling house, the hazard was not increased by the use of the printing press, there was no breach of the conditions of the policy existing at the time of the loss, the presence of the printing press in the house did not contribute to the loss or damage or the amount thereof; and entered a decree for defendant.
Under the facts as found by the trial court, which facts are sustained by the evidence, the decree is affirmed, with costs.
McDonald, C. J., and Sharpe, North, Fead, Wiest and Butzel, JJ., concurred with Potter, J. | [
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Clark, J.
The jury found that plaintiff’s personal injuries were caused proximately by negligence of defendant city, and assessed damages at $7,500. Defendant brings error and presents many questions, all of which have been considered, some of which will be discussed.
The chief contention is that verdict ought to have been directed for defendant on the ground that there was no evidence of negligence on its part. On this question the evidence must be viewed most fav orably to plaintiff. Plaintiff was a passenger for hire in a motor bns of defendant on one of its streets. Seats of the bus were occupied and plaintiff was standing, holding a hand-rail above. Overtaking a Ford car, the driver of the bus sought to pass and was not accommodated. Continuing his effort to pass for nearly three blocks, the driver became angry. There is evidence that the bus moved at excessive and unlawful speed, 30 to 35 miles per hour; that it swayed; that it was very close to the Ford car, as close as five feet; that passengers protested and frequently sounded the buzzer; and that a movement of the Ford toward an intersecting street caused the driver of the bus to make sudden application of brakes and a sudden turn of the steering wheel. He testified:
“I knew from the suddenness of my stop and jamming on of both brakes and the suddenness with which I twisted the wheel that if passengers were standing in the aisle, they would possibly be propelled forward or fall or something happen to them, if they were not hanging on. ’ ’
Plaintiff fell, and' there is evidence that she suffered serious and permanent injuries.
Defendant contends that there was here a sudden and unforeseen peril, and that the driver was compelled to do what he did in order to avoid collision, and that therefore there is no negligence, citing Ottinger v. Railway, 166 Mich. 106 (34 L. R. A. [N. S.] 225, Ann. Cas. 1912 D, 578); Clifford v. Railway, 216 Mich. 377; and other like cases. In the instant case there is evidence of excessive and unlawful speed, which might be found to have important bearing on the suddenness and violence of the stopping and of the swerving of the bus, and hence a causal relation to plaintiff’s injuries. A peril produced in part, at least, by defendant’s negligence does not excuse the negligence. The case was for the jury. See notes, 4 A. L. R. p. 1499; 31 A. L. R. p. 1202; 45 A. L. R. p. 297; 25 N. C. C. A. p. 423; Kriss v. Field, 241 Mich. 42; Borski v. City of Wakefield, 239 Mich. 656.
It is said the verdict is excessive. When on this ground the court may vacate a judgment or require reduction as a condition of' affirmance is fully discussed in Fishleigh v. Railway, 205 Mich. 145, and in many. later cases following the rule there stated. Under such rule, we note that the verdict is within the- evidence, and within precedents of similar cases. We find no appeals to passion, prejudice, or sympathy, and nothing, including the verdict itself, to show that the jury was moved by anything but evidence. It is therefore without our province to disturb the judgment in this respect.
Plaintiff had evidence that she was in good health before the accident and to the effect that her injuries were permanent. This evidence, though disputed, made it proper to. admit the mortality tables in evidence to be used or not by the jury according to its conclusion of the question of fact. Wilkins v. City of Flint, 128 Mich. 262.
It is urged that the court’s instructions regarding damages and present worth ought to have been more complete or elaborate. The court did not err, and if counsel desired further instruction it should have been requested.
Other assignments present no reversible error.
Judgment affirmed.
North, C. J., and Bead, Wiest, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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McDonald, J.
This suit was brought to recover damages which the plaintiff claims to have sustained because of an alleged assault committed on her by the defendant on August 20,1928. At the time of the ■assault, the plaintiff was a maid in the home of Mrs. Kleppinger. The defendant and-Mrs. Kleppinger own. adjoining lake resort properties in Berrien county, Michigan. They were not friendly. It is the theory of the plaintiff that about two o’clock in the morning of August 20, 1928, the defendant and two other men were in the road near the window of her bedroom; that she was awakened by their loud talk; that she heard the defendant say with much profanity : ‘ ‘ Get up you-. If I just had my gun I would puf a hole right through herthat she immediately got up and awakened Mrs. Kleppinger; that in the meantime the defendant went to his home and got a revolver and flashlight and came back; that he played the flashlight on the side of the house, and, when plaintiff and Mrs. Kleppinger appeared in the window, fired the revolver in their direction. The plaintiff testified:
“It was fired in the direction of the window. I was this way where he fired at the window at me. He played the flashlight, pointed the flashlight and fired the gun.”
The plaintiff was not hit, but she says she was greatly frightened and shocked, that she became sick, was compelled to give up her employment, and was taken to the hospital, where she was treated for acute hysteria. For her injuries and for money spent in endeavoring to be cured, the jury awarded her $950.
In his defense the defendant introduced testimony tending to show that he did not commit the assault; that at the time in question he was entertaining two friends, who spent the night with him; that, while sitting in his home with them, they heard a shot and a scream and went out to investigate, but did not learn who did the shooting. His testimony was corroborated by the two friends and a milkman who was delivering milk in the neighborhood at the time.
After verdict, the defendant filed a motion for a new trial on the ground of alleged errors by the trial court and because the verdict was against the overwhelming weight of the evidence.' This motion was denied. To review the judgment entered, the defendant has brought error.
Several of the assignments of error have as their basis the claim that there was no evidence of an assault. In his brief, counsel for the defendant says:
“There being no evidence of assault on the plaintiff, it was error for the court to allow questions by the plaintiff relative to her condition and over objection allow the answers to be received as to her mental condition and fright. Errors 5, 6, and 7. For the same reason the court was in error in charging the jury that they had a right to assess damages arising out of fright and mental shock.”
It seems to be counsel’s contention that no assault was committed because the evidence does not show an intent to do.the plaintiff violence. Usually the intent is shown by the act, the kind of weapon used, the manner of using it, and all of the attending circumstances. In this case the defendant expressed his intent to do violence when he said, “If I just had my gun I would put a- hole right through her. ’ ’ Following this, he got his gun and fired at her, or at least in her direction, as she stood in the window. An intention to do her personal harm could hardly be expressed more plainly. If the facts stated by plaintiff were true, he was guilty of an assault. The court correctly so held.
It is further claimed that the court erred in charging the jury they might consider whether the assault was wilful and malicious.
There was evidence from which the jury could find that the defendant went to the place where he com mitted the assault because of ill will against Mrs. Kleppinger. His language before he fired the shot showed a wilful, malicious, and wicked purpose. These and other facts and circumstances shown by the evidence justified the charge of the court.
The day following the assault, Mrs. Kleppinger went before a justice of the peace and made complaint against the defendant. A warrant was issued and defendant appeared with his present attorney. A day was set for the hearing. When they again appeared, the prosecuting attorney and defendant’s counsel held a conference and it was agreed that, if the charge was reduced to an offense cognizable by a justice of the peace, the defendant would plead guilty and pay a fine. The records of the justice show the following entry:
“On motion of George H. Bookwalter the charges against Mr. Eiler was changed to read that on August 20th, 1928, at the township of Ohikaming and the county aforesaid one William A. Eiler did then and there intentionally without malice point or aim a firearm toward another person and the said accused person did then and there plead guilty to such charge. ’ ’
Over the objection of counsel for the defendant, the justice court proceedings were received in evidence. He complains that the proceedings were void because the justice had no jurisdiction; that they were not competent evidence and were very harmful to the defendant. We are unable to follow counsel in his argument on this assignment.. It appears to us to he wholly without merit.
No exceptions were taken to the order denying the-motion for a new trial. Therefore it is not reviewable.
We have examined all of the other alleged errors, and think they do not merit discussion. The defendant has no good reason to complain of' the trial and verdict. Instead of feeling aggrieved, he should be glad that he was a poor shot.
The judgment is affirmed, with costs to the plaintiff.
North, C. J., and Fead, Butzel, Wiest, Clark, Potter, and Sharpe, JJ., concurred. | [
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North, C. J.
The defendant herein was convicted in the circuit court of Jackson county of violating the provisions of Act No. 181, Pub. Acts 1919. The information contains two counts, one charging that the defendant, being in possession and control of live stock which was reasonably suspected of being afflicted with a contagious, infectious, and communicable disease, did refuse to allow the deputy State veterinarian to examine such stock; and the other count charges that, under the same condition, the defendant did refuse to allow an authorized veterinarian to conduct tests' for bovine tuberculosis upon such cattle. The defendant has brought the case to this court by writ of error, and the assignment presents. the following contentions in his behalf: (1) The statute does not authorize compulsory examination or testing; (2) the commissioner of agriculture had no authority to examine or test defendant’s cattle because the program for eradicating bovine tuberculosis had not been adopted in Jackson county; (3) the law provides no definite means or method of adopting such program in the county, and therefore a prosecution cannot be maintained; (4) a former test having been made in the county in which defendant’s herd was found to be free from the disease, there is no authority in law for retesting; (5) that Act No. 13, Pub. Acts 1921, is in violation of section 21, art. 5, of the State Constitution because (a) it embraces more than one object; (b) the objects of the law are not adequately stated in the title; (c) the statutes revised, altered, and amended by Act No. 13, Pub. Acts 1921, were not re-enacted and published at length.
Act No. 181, Pub. Acts 1919, as amended by Act No. 89,'Pub. Acts 1923, provides:
‘ ‘ Seo. 4. It shall be the duty of the commissioner of animal industry to have general charge and oversight of the protection of the health of the domestic animals of the State and the guarding of the same from all contagious or infectious diseases. * * * It shall be the duty of the State veterinarian to carry out the directions of the commissioner of animal industry. * * *
‘ ‘ Seo. 6. The commissioner to whom the existence of any infectious or contagious disease of domestic animals is reported, shall forthwith, either in person or by authorized representative, proceed to the place where such domestic animal or animals are and examine the same, and if in his opinion any infectious or contagious disease does exist he is authorized to call upon the State veterinarian or other competent and skilled veterinarian to proceed to the place where said contagious or infectious disease is said to exist and examine said animal or animals, * * * and the said commissioner and veterinarian are hereby authorized and empowered to enter upon any grounds or premises to carry out the provisions of 8 ^ ^
“Sec. 11. * * * It shall be unlawful for any person who owns or who is in possession or control of live stock which is affected with any such disease, or which is reasonably suspected of being so affected, to prevent or refuse.to allow the State veterinarian, the commissioner, or other authorized officials to examine such stock, or to hinder or obstruct the State veterinarian or commissioner, or other official in any examination or attempted examination of any such animal or animals. * * *
“Sec. 15-a. * * * Whenever the commissioner shall have determined to test for tuberculosis all the cattle in any certain county where bovine tuberculosis eradication has been adopted, he shall give public notice of his determination. * * * Cattle found to be reactors to such test shall be branded, slaughtered when ordered by the commissioner, and the owners thereof entitled to such indemnities as in this act provided. It shall be unlawful for any person who owns or who is in possession of or controls any cattle to prevent, hinder, obstruct, or refuse to allow the commissioner or authorized veterinarian to conduct such tests for tuberculosis on such cattle.”
By the express provisions of the statute the authority to examine is given. There is no merit to defendant’s contention that the eradication program was not adopted in Jackson county and therefore authority was not given to the commissioner or those representing him to make an examination and under proper conditions to test domestic animals. This record discloses that both by popular vote and by action of its'board of supervisors, Jackson county adopted or approved a program of eradicating bovine tuberculosis in that county. It is true, as pointed out by defendant, that the act does not specifically provide the method of adoption by a county; but in the absence of a specific provision as to adoption in some other manner, it should be held that the action taken in Jackson county was sufficient. Defendant’s contention that because his herd of cattle had been tested and found free from tuberculosis some three or four years previous he was not obliged to submit to a second test on this occasion, is not well founded. It is obvious that the purpose of this statute is to eradicate a disease said to be highly infectious and contagious. Surely it cannot be contended that this result was expected to be accomplished and such a condition produced by a single test.
The grounds upon which the defendant attacks the constitutionality of Act No. 13, Pub. Acts 1921, are stated above. This act abolished the department of animal industry, created the State department of agriculture, and provided that the department of agriculture “shall exercise the powers and perform the duties now vested by law in the department of animal industry,” as set forth in Act No. 181, Pub. Acts 1919. The title to Act No. 13, Pub. Acts 1921, is:
“An act to promote the agricultural interests of the State of Michigan; to create a State department of agriculture; to define the powers and duties thereof ; to provide for the transfer to and vesting in Said department of powers and duties now vested by law in certain other State boards, commissions and officers, and to abolish certain boards, commissions and officers the' powers and duties of which are hereby transferred.”
We think the foregoing title is not open to the objection urged by the defendant that it does not adequately express the object of the act, nor do we find that the act embraces more than one object. It is true that by the terms of the act the powers and duties theretofore vested in various departments and commissions were transferred to the State department of agriculture; but the act as a whole is one to promote the agricultural interests of the State, and it is so stated in the title. We need not here pass upon the question as to whether all of the duties sought to be vested by this act in the State department of agriculture are germane to the title of the act; but it is sufficient for us to hold that the duties and powers thus transferred from the department of animal industry to the State department of agriculture were such as “promote the agricultural interests in the State. ’ ’ Such .is clearly the fact, and we so hold.
The remaining constitutional objection is that by passing Act No. 13, Pub. Acts 1921, the legislature sought to revise, alter, and amend Act No. 181, Pub. Acts 1919, and this without repassing the latter act or publishing the same at length, as required by the Michigan Constitution (article 5, §21). Except to the extent that it was expressly done by a provision in the act of 1921, we do not understand that there was any attempt or intention thereby to revise, alter, or amend the provisions of the act of 1919. By the express terms of the 1921 enactment, the department of animal industry was abolished; and the powers and duties of that department were transferred to the State department of agriculture. The portion of Act No. 181, Pub. Acts 1919, which prescribes these powers and duties was not “revised, altered, or amended.” * It still stands as a part of the statutory law of the State, and therefore there was no occasion for the re-enactment or republication of that portion of the statute. This was the construction placed upon the constitutional provision by Mr. Justice Cooley over 60 years ago, and it has since been considered settled law in this State. The legislature of 1865 passed Act No. 78, entitled “An act to establish a police government for the city of Detroit.” This act provided (section 36): .
“The offices of city marshal and assistant marshal of the city of Detroit is hereby abolished, and the duties of said office shall hereafter be performed by the superintendent of police, or by the captains and sergeants of police, under- his directions, in accordance with the provisions of this act.”'
In passing upon the constitutionality of the act, Justice Cooley said:
“It is next objected that the law is invalid because in conflict with section twenty-five of article four of the Constitution (1850), which provides that ‘no law shall he revised,. altered or amended by reference to its title only; but the act revised, and the section or sections of the act altered or amended, shall be re-enacted and published at length.’
“The act before us does not assume in terms, to revise, alter or amend any prior act, or section of an act, but by various transfers of duties it has an amendatory effect by implication, and by its last section it repeals all inconsistent acts. We are unr able to see how this conflicts with the provision referred to. If, whenever a new statute is passed, it is necessary that all prior statutes, modified by it by implication should be re-enacted and published at length as modified, then a large portion of the whole code of laws of the State would require' to be republished at every session, and parts of it several times over, until, from mere immensity of material, it would be impossible to tell what the law was. If, because an act establishing a police government modifies the powers and duties of sheriffs, constables, water and sewer commissioners, marshals, mayors and justices, and imposes new duties upon the executive and the citizen, it has thereby become necessary to re-enact and republish the various, laws relating to them all as now modified, we shall find, before the act is completed, that it not only embraces a large portion of the general laws of the State, but also that it has become obnoxious to the other provisions referred to, because embracing a large number of objects, only one of which can be covered by its title.
‘ ‘ This constitutional provision must receive a reasonable construction, with a view to give it effect. The mischief designed to be remedied was the enactment of amendatory statutes in terms so blind that legislators themselves were sometimes deceived in regard to their effect, and the public, from the difficulty in making the necessary examination and comparison, failed to become apprised of the changes made in the laws. An amendatory act which purported only to insert certain words, or to substitute one phrase for another in an act or section which was only referred to but not republished, was well calculated to mislead the careless as to its effect, and was, perhaps, sometimes drawn in that form for that express purpose. Endless confusion was thus introduced into the law, and the Constitution wisely prohibited such legislation. But an act complete in itself is not within the mischief designed to be remedied by this provision, and cannot be held to be prohibited by it without violating its plain intent.” People v. Mahaney, 13 Mich. 481, 496, 497.
In so far as the act under consideration revises, alters, or amends Act No. 181, Pub. Acts 1919, it does so in express language, published at length; and in so far as the change or alteration is by implication merely, it does not offend the constitutional provision. In commenting on the above quotation from People v. Mahaney, supra, Justice Cooley said in his Constitutional Limitations:
“If this is a correct view of the purpose of the provision, it does not seem to be at all important to its accomplishment that the old law should be republished, if the law as amended is given in full, with-such reference to the old law as will show for what the new law is substituted. * * * It should be observed that statutes which amend others by implication are not within this provision; and it is not essential that they even refer to the acts or sections which by implication they amend.” Vol. 1, Cooley’s Constitutional Limitations, (8thEd.), p. 314.
See, also, People v. Wands, 23 Mich. 384; Swartwout v. Railroad Co., 24 Mich. 388, 399; Attorney General v. Parsell, 100 Mich. 170; and People v. Shuler, 136 Mich. 161, where Justice Carpenter,speaking for the court concerning the -question now under consideration, said:
“We think this contention is answered by People v. Pritchard, 21 Mich. at page 241, where it is said: ‘It is a full compliance with the terms as_ well as the purpose of that provision (viz., the constitutional provision under consideration) if the section as amended is set forth at length, with such reference to the old law as will show for what the new law is substituted.’ ”
In Fornia v. Wayne Circuit Judge, 140 Mich. 631, this court held (quoting syllabus):
“Act No. 31, Pub. Acts, 1903, substituting the county clerk for the Wayne county jury commissioners in drawing juries for that county, and not otherwise changing the procedure, and not assuming in terms to revise, alter or amend any prior act or section of an act, but by various transfers of duties, having an amendatory effect by implication, does not conflict with the provision of the Constitution requiring' acts amended or revised to be republished at length, though it contains a clause which repeals all inconsistent acts.”
A holding to the same effect will be found in Grinnell Brothers v. Moy, 230 Mich. 26.
In addition to; the objections above mentioned, it-is also urged in defendant’s brief that probable cause of the presence of tuberculosis in defendant’s held was not shown by the people and therefore an examination or test was not justified. This objection might be passed by merely noting that it was not raised in the lower court. However, we may add that in our judgment the record is sufficient to justify the conclusion that the State authorities who sought to make this examination.were justified in their de termination that there'was probable cause to believe that some of the cattle in Jackson county had'tuberculosis. By proclamation issued in accordance with the statute, the whole county of Jackson was under quarantine because bovine tuberculosis was there prevalent. The county had adopted the program of eradication and this program could not be successfully carried out except by the examination of all the herds in the county, including that of the defendant. The statute gave this right and the defendant should not have resisted the operation of the law. So far as appears from this record his conviction was regular, and is affirmed.
Fead, Clark, and Sharpe, JJ., concurred with North, C. J. , | [
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Clark, J.
Plaintiffs, purchasers, filed this bill for specific performance of a land contract, and had decree, from which defendant has appealed.
The trial court’s denial to defendant of interest after the due date of the contract is the only question presented. The contract provides for interest until the principal sum shall be fully paid. Upon completion of the contract, defendant agreed to execute and deliver to plaintiffs a warranty deed of the lands “free and clear of all liens and incumbrances.” The due date was April 1, 1928. On March 10,1928, defendant’s attorneys wrote to plaintiffs that defendant insisted on payment when due. An abstract was furnished agreeable to the contract, and on March 30, 1928, plaintiffs’ attorneys advised defendant that it was incomplete, and again on April 5th plaintiffs’ attorneys advised defendant that the title was defective, an omission respecting deed by an administrator, and also called attention to an undischarged mortgage. It is apparent that the omission relative to the deed had not been discovered by defendant or its attorneys. The defect was corrected within three months. During this time defendant had neither procured nor provided for discharge of the mortgage, and on July 3, 1928, defendant’s attorneys wrote to plaintiffs’ attorneys demanding in effect that plaintiffs assume and pay the mortgage. Plaintiffs rightly refused this as contrary to the contract. The demand was withdrawn on July 9th. On July 16, 1928, no deed as provided by the contract being forthcoming, plaintiffs filed this bill.
The amount found due on the contract on April 1, 1928, with interest, was $12,056.05. On or about the due date plaintiffs by deposit of a number of coupon bonds as collateral arranged with a bank that the amount to be paid on the contract would be furnished when needed, and defendant was advised accordingly. No loan was made or has been made. Plaintiffs paid no interest. The coupons are still attached to the bonds. Plaintiffs at all times herein have been in possession of the property contracted to be conveyed. There is a building on it used for apartment purposes. No question of tender is involved, it being considered that formal tender was not here required. The general rule is stated in 8 Ann. Cas. 935:
“It is well established that in the absence of a stipulation as to interest in case of delay, a purchaser who takes possession of land under a contract of sale is liable for interest’ on the purchase money from the time stipulated for its payment, even though the contract is not completed at the time fixed for completion, and though the delay is due to the vendor.
“The foregoing rule is based upon the ground that it is inequitable to allow the purchaser to enjoy the use of the land, or the rents and profits of it, and at the same time to let him have the use of the purchase money to the loss of the vendor. The vendor should as a rule have either interest on the purchase money or the rents and profits of the land. ’ ’
An exception must be noted. If the purchaser has actually set aside and appropriated the money to the' contract so that he is out the use of it, or interest on it, it will be seen that the foregoing rule ought not, equitably, to be applied. Accordingly it is stated in 8 Ann. Cas. 937:
“The rule is well established that even if the vendor is at fault the purchaser, if he would escape the liability to pay interest, must actually set aside the purchase money and appropriate it for the vendor, must not in any way derive any benefit from the money, and must notify the vendor of these facts and that the money is thus lying idle.”
See Pomeroy’s Specific Performance (3d Ed.), §§ 430 and 431; 27 R. C. L. p. 538; 12 A. L. R. 942, note.
In the case at bar plaintiffs made no appropriation of money to the contract, set no money aside. They have suffered no detriment by way of interest or of being deprived of the use of the money by reason of the arrangement at the bank, which was no more than an agreement that the money would be loaned when needed. And plaintiffs have enjoyed benefits from use and occupation of the property. On this point the case is ruled by Norris v. Ryno, 169 Mich. 193. The case does not fall within this exception. Of the aforesaid rule regarding setting aside or appropriating the money to the contract it is said in Barnett v. Cloyd’s Ex’rs, 125 Va. 546 (100 S. E. 674):
“But if the delay be due to the wilful default of the vendor, such rule does not apply. ’ ’
And it is urged that the defendant vendor’s default here was wilful and that therefore interest after the due date should be denied to it, citing Atchison, etc., R. Co. v. Railroad Co., 162 Ill. 632 (44 N. E. 823, 35 L. R. A. 167). That case was exceptional in that the possession of the purchaser was in the interest of both parties, but it appearing that the vendor had insisted, wrongfully and contrary to the contract, on putting a defeasance clause into the deed, the court said:
“It may well be that where the vendor is unable to perform his contract at the time he agreed to convey, and is prevented by circumstances not under his control, or that by mere negligence he fails to convey at the time, equity may require interest to' be paid. A very' different question is presented where the vendee is desirous of having a compliance by the vendor, and the vendor is able but wrongfully and wilfully refuses to comply with his contract”
—and the purchaser was relieved of interest. See 8 Ann. Cas. 937; 27 R. C. L. p. 538; Stevenson v. Davis, 23 S. C. R. (Can.) 629; Waterman on Specific Performance, p. 742.
Under peculiar provisions of certain contracts of vendor - and purchaser, English courts have considered “wilful default.” It is undoubted that wilful obstruction and intentional delay constitute wilful default. But the words have a larger meaning. In re Hetling and Merton’s Contract (1893), 3 Ch. 269, it was said:
“Whatever may be the popular meaning of wilful default, whatever the expression may mean in dealing with other matters, it is now settled that moral delinquency, intentional delay, wilful obstruction on the part of a vendor, may all be absent, and yet there may be wilful default on his part disentitling him to interest under a contract such as that before us.”
See Fry’s Specific Performance (5th Ed.), p. 689, and cases cited.
Instances of wilful default are: Where vendors knowingly delayed completion by omitting to take steps to procure certain conveyances. In re Wilson’s and Stevens’ Contract (1894), 3 Ch. 546. Where the vendors knowingly relied on an insufficient power of attorney. In re Hetling and Merton’s Contract, supra. Where the vendor went abroad two days before the date fixed for completion and thus could not complete. In re Young and Harston’s Contract, 31 Ch. D. 168.
In the case at bar the delay due to correcting omission respecting deed was not caused by wilful default. It is evident that the defect, which was not plainly apparent, had not been discovered and was not known by defendant or its attorneys, but it was brought out by the vigilance of plaintiffs’ attorneys. A case quite in point is In re Woods and Lewis’ Contract (1898), 2 Ch. 211, from which we quote applicable part of syllabus:
“A clause in a contract for the sale of lands provided that, if from any cause whatever other than the ‘default of the vendor,’ the purchase should not be completed by the day fixed, the purchaser should pay interest until completion. Upon investigation of the title a defect in it was discovered by the vigilance of the purchaser’s advisers, whiéh was not known to or suspected by the vendor when he entered into the contract, and the time occupied in remedying the defect delayed the completion of the purchase for nearly three months after the day fixed. * * *
“Held, affirming the decision of Romer J. (1898), 1 Ch. 433, that, there being no want of reasonable care on the part of the vendor and no abstention from' doing anything that he ought to have done, the delay was not attributable to his ‘default,’ and that the purchaser must pay interest until completion. ’ ’
Having held that the delay from April 1st to July 1st, the time necessarily taken in correcting the defect respecting deed, was excusable, there remains the delay after July 1st. In re Mayor of London and Tubbs’ Contract (1894), 2 Ch. 524. Defendant, with full knowledge that it was to convey clear title, and with like knowledge of the undischarged mortgage, took no steps to procure or provide for discharge of the mortgage which was past due and payable, but wrongfully demanded of plaintiffs that they assume and pay the mortgage debt, which plaintiffs rightfully refused as contrary to the contract. The mortgage remained, was not discharged when this bill was filed, nor when decree was entered in April, 1929, and statement of counsel in argument here that it still was undischarged was not challenged. The delay after July 1, 1928, was due to wilful default of defendant, and it is not entitled to interest after that date. Dwight v. Cutler, 3 Mich. 566 (64 Am. Dec. 105).
m The decree will be modified by increasing the total amount found and decreed to be due defendant by addition of interest from April 1 to July 1,1928, and, so modified, is affirmed, with costs of this court to defendant.
North, C. J., and Fead, Btjtzel, Wiest, McDonald, Potter, and Sharpe, JJ., concurred. | [
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Sharpe, J.
(dissenting). The defendant trust company began proceedings by advertisement to foreclose a mortgage executed by Julius Rosenfeld and Rebecca Rosenfeld, his wife, on certain real es tate in Detroit. The date fixed for the sale was August 12, 1927, at 12 o’clock noon. On that day the Rosenfelds secured an injunction ordering the trust company to “absolutely desist and refrain from selling, or otherwise proceeding with the foreclosure sale * * * excepting by bill or cross-bill to foreclose in chancery until the further order of this court.” This injunction was served on the trust company at 11.29 a. m. They at once sent it to. their attorney, Who was then at the place of sale. The sale was not had, nor was any adjournment had or announcement made relative thereto. A few days later the attorneys for the trust company secured a consent from the attorneys for the Rosenfelds to modify the injunction to permit a postponement of the sale, and an order to that effect was made. The advertisement appeared the next week, and thereafter in the paper in which it had been published, with a notice appended thereto that the sale had been adjourned from the 12th May of August, 1927, to the 2d day of September, 1927, at the same hour and place. On the date last named, sale was had and the property bid in by the trust company for the sum of $84,713.62, and a sheriff’s deed executed therefor. The injunction had theretofore been dissolved.
On September 12, 1928, and after the time for redemption from such sale had expired, the plaintiffs, who are the owners of a second mortgage on said premises executed by the Rosenfelds, filed the bill of complaint herein, praying that the sale to the trust company “be decreed to be null and void,” and that it be enjoined from conveying the premises to a tona fide purchaser or incumbering the same.
Decision hinges on the effect of the published notice of the postponement of the sale. The plaintiffs as second mortgagees had a direct interest in the sale of the property under the notice as published. Had bidders been present and the property sold for sufficient to satisfy both mortgages, their claim would have been secured. Section 14954, 3 Comp. Laws 1915, provides:
“Such sale may be postponed from, time to time, by inserting a notice of such postponement, as soon as practicable, in the newspaper in which the original advertisement was published, and continuing such publication until the time to which the sale shall be postponed, at the expense of the party requesting such postponement.”
Foreclosure by advertisement is statutory, and the provisions relating thereto must be at least substantially complied with. Grover v. Fox, 36 Mich. 461. The purpose of advertising the property for sale for so long a time is to secure wide publicity so that persons interested in such a class of property may be present and bid thereon. A fair construction of the statute requires that a notice of adjournment following the notice of sale shall be published before the day fixed for the sale, or, if the intention to adjourn or necessity therefor is not apparent until the day of sale, that public announcement thereof, and of the time to which such adjournment shall-be had, be then and there made and the notice thereof be thereafter published following the notice of sale until such time shall arrive. Pursuing either of these courses gives the necessary notice to prospective bidders and insures that public sale provided for by the statute. A prospective bidder who had appeared at the time and place fixed for this sale might well have concluded, when no postponement was announced, that the property had been withdrawn from sale, and give the matter no further attention.
. This provision in our statute is similar to that of the State of New York (2 R. S. N. Y. 546, § 5), and received the same construction we have placed upon it in Miller v. Hull, 4 Denio (N. Y.), 104.
The decree entered dismissing plaintiffs’ hill should be reversed and set aside, and one should be here entered granting the relief prayed for in the bill of complaint, with costs of both courts to appellants.
Clark, J., concurred with Sharpe, J.
Wiest, J.
I am not in accord with Mr. Justice Sharpe’s construction of the statute, and consequently dissent from his holding.
The injunction was confessedly too broad, as it should have permitted an adjournment of the sale. The injunction was served the very day fixed for the sale, and, therefore, no opportunity was afforded for asking the court to permit an adjournment. I do not think that the defendants should be penalized for obeying the letter of the injunction. Surely, plaintiffs should be required to show some injury occasioned by an adjournment or reason for not redeeming from the sale made or for not adopting adequate means of protection open to them as holders of a second mortgage.
The decree below is affirmed, with costs to defendants.
North, C. J., and Fead, McDonald, and Potter, JJ., concurred with Wiest, J. The late Justice Fellows took no part in this decision. | [
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Potter, J.
Plaintiffs filed a bill in equity in the Wayne circuit court against defendants to set aside as void a mortgage on real estate in the city of Detroit given by the defendant Fine to the defendant Dime Savings Bank, declare the Dime Savings Bank had no title to the real estate covered by the mortgage, and recover damages claimed to have been sustained by plaintiffs through the wrongful acts of the defendants. From a decree for plaintiffs they appeal, and defendant'Dime Savings Bank claimed a cross-appeal. The trial court found defendant Fine had no title to the premises covered by the real estate mortgage which he executed to the Dime Savings Bank, and such mortgage was therefore void; the defendant Fine was liable in damages to plaintiffs in the sum of $8,500; the Dime Savings Bank acted reasonably and in perfect good faith in accepting this real estate mortgage, and no malice could be attributed to it.
Plaintiff Harry Grlieberman and defendant Louis Fine, prior to the execution of said mortgage, had been associated together, and Fine had an interest in real estate subject to a mortgage to the Dime Savings Bank, defendant. Fine’s wife began divorce proceedings against him and he made a property settlement with his wife by which he paid her $8,500 and an attorney fee of $250, or $8,750 in all. To obtain this sum of money, he sold and conveyed by conveyance absolute in form his interest in the real estate in question to plaintiff Harry Grlieberman. Fine claims, however, that though this conveyance was absolute in form and he received $8,750 therefor, it was 'verbally agreed between himself and Grlieberman that the property was to be subsequently sold and conveyed by Grlieberman; Grlieberman was to receive the consideration therefor and after Grlieberman received his money advanced- to Fine to settle with his wife, Fine was to have an interest in the proceeds from the sale of such real estate. Such conveyance subject to such agreement did not leave Fine any interest in the real estate because the statute prohibits the creation or declaration of parol trusts in real estate. 3 Comp. Laws 1915, § 11975. Fine told the representative of the Dime Savings Bank, according to the testimony of both Fine and the representatives of the bank, that he had deeded the real estate to Grlieberman, but he had an interest therein; that the real estate was to be sold by Glieberman and Glieberman satisfied, and Fine was to share in the proceeds resulting from the sale thereof. If such a contract as Fine claims existed and which he told the bank’s representatives existed, then after the sale of the real estate by Glieberman in pursuance of such arrangement, Glieberman would be liable to account to and pay over to Fine, in pursuance of such verbal understanding, Fine’s share in the proceeds of the real estate conveyed, if any.
“When real estate in which several persons are’ interested is conveyed to one or more of them upon a parol agreement that it is to be sold by the grantees and the proceeds divided between the parties in accordance with their respective interests therein, such contract after the sale of the property is valid and enforceable, is not within the statute of frauds, and, if the grantees after sale and receipt of the purchase price refuse to account to any and all persons in interest, they may maintain a bill for an accounting. ’ ’ Stewart v. Young, 247 Mich. 451.
According to the testimony of defendant Fine, after both he and the representative of the bank knew the situation of the title, Fine executed the mortgage in question to the bank as security for the payment of his individual indebtedness thereto, and the bank put the mortgage on record and refused to discharge it until it was paid the amount of the indebtedness which the mortgage was given to secure, and plaintiffs contend that, by so doing, it became liable herein to the plaintiffs on the general theory that the acts of the defendant Fine and the bank amounted to slander of plaintiff’s title. The only question here involved is the liability of the bank. No question is raised but equity having jurisdiction for the purpose of discharging the mortgage, and thus removing the cloud from G-lieberman’s title to the real estate, has jurisdiction to grant complete relief. The claimed liability of the defendant bank is based upon the theory that its assertion of a claim against the real estate was in the nature of a false and malicious statement made in disparagement of Grlieberman’s title thereto. Both falsity of statement and malice are necessary elements which must be proved and established by the evidence before plaintiff is entitled to recover against the bank. Harrison v. Howe, 109 Mich. 476; 37 C. J. p. 131. In fact, malice is the gist of the claim, which cannot be maintained if the bank’s claim under the mortgage was asserted in good faith upon probable cause or was prompted by a reasonable belief that Fine had rights in the real estate in question which he might mortgage, or convey to it by way of security for his indebtedness thereto. 37 C. J. p. 131. The word “malice” has at least two significations in the law — malice in fact and malice in law (Bacon v. Railroad Co., 66 Mich. 166) — express malice and implied malice (Austin v. Hyden, 119 Mich. 615). Express malice implies a desire or intention to injure. Bacon v. Railroad Co., supra. Malice in law, or implied malice, means a wrongful act done intentionally without just cause or excuse (Bell v. Fernald, 71 Mich. 267; Long v. Tribune Printing Co., 107 Mich. 207; Zimmerman v. Whiteley, 134 Mich. 39), and the jury may infer it as a deduction from want of probable cause (Carson v. Edgeworth, 43 Mich. 241; Hamilton v. Smith, 39 Mich. 222).
“Whenever a man claims a right or title in himself, in possession or in remainder, it is not enough for the plaintiff to prove that he had no such right; he must also give evidence of express malice.” Harrison v. Howe, 109 Mich. 476; Newell on Defamation, Slander and Libel (1st Ed.), 206; 13 Am. & Eng. Enc. Law (1st Ed.), 368.
The bank’s representatives, and therefore the bank, is presumed to know the law, because that ignorance of the law shall not excuse is a necessary rule of civil conduct, but such presumption is of little aid when the question of actual knowledge as a matter of fact is concerned. People v. Rix, 6 Mich. 144; Black v. Ward, 27 Mich. 191. The trial court, after hearing the evidence, held the defendant bank might have honestly believed Fine had an interest in the property when it took the real estate mortgage as security for Fine’s indebtedness to it, and there was no proof the bank was actuated in what it did by express malice.
Under the facts here involved, we are not inclined to reverse its finding. The decree of the trial court will be affirmed, with costs.
North, C. J., and Fead, Wiest, Clark, McDonald, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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] |
Sharpe, J.
The defendant operates a single-track street railway- in the city of Ironwood. It passes along the. center line of Aurora street. At about 7 o’clock on the-morning .of September 28,1926, one of its cars came from the east on Aurora,street, waited for a change in the traffic signal when it reached the intersection with Suffolk street; and then proceeded west on Aurora street. At a point from 60 to 80 feet west of the west line of Suffolk street, the car collided with the plaintiff, a woman pedestrian, 62 years of age, who was walking on the street-near the north rail of the street car track, and injured her. She brought this action to recover the damages sustained by her, due to such injury, and had verdict and judgment for $2,500. Defendant seeks review by writ of error.
The plaintiff had a restaurant business on the west side of Suffolk street, and north of its intersection with Aurora. On the morning she was injured, she left her place of business, intending to go to the Michigan Pack, a meat market on the south side of Aurora street, west of Suffolk. She testified that when she reached the corner of Aurora street she turned west; that a drilling machine stood on the pavement near the corner, with a hose leading from It across the sidewalk into a building; that she left the sidewalk and passed outside of the machine; that she then walked westward on the street, intending to cross over to the meat market; that when about 20 feet east of the place of collision, and quite close to the car track, she stopped and looked to the east, but did not se.e the street car; that, had she seen it, she would- have gotten out of its way; that it came from behind her, and struck her on the left side, and that she did not hear the gong on the car on account of the noise made by the machine.
It is undisputed that when plaintiff reached the corner and turned west on Aurora street the street car stood on the east side of the street intersection, waiting for a change in the traffic signal to permit it to proceed towards the west. This car was 40 feet long, 12 feet high, about 8 feet wide, was painted an orange color, and weighed about 16 tons. There was nq obstruction in the streej; to prevent plain tiff’s seeing it from the time she reached the corner. Her negligence is., conceded, but it is insisted that under her testimony the motorman on the car must have seen her in the perilous position in which she had placed herself, and that his failure to exercise the care possible to avoid the collision was the proximate cause of her injury and rendered the defendant guilty of after-discovered or subsequent negligence as many times defined by this court.
On direct examination, plaintiff testified that when about 20 feet from the place at which she was struck she “stopped and looked up and down the track and I saw nothing coming.” On cross-examination she said, “I looked before and 1 didn’t see it. I looked up'the street and down the street. I didn’t see it.” At the time she looked, this large car, painted a bright color, could not have been more than about 150 feet from her. She could and must have seen it. Champaign v. Railway, 181 Mich. 672; Molby v. Railway, 221 Mich. 419; Baader v. Railway, 228 Mich. 104; Molda v. Clark, 236 Mich. 277; Kun v. Railway Co., 240 Mich. 598. Her failure to step out of the place of danger in which she had placed herself precludes her recovery under the rule stated in Krouse v. Railway Co., 215 Mich. 139. Defendant’s motion for judgment notwithstanding the verdict should have been granted.
The judgment entered is reversed and the cause remanded, with direction to the circuit court to enter a judgment for the defendant, with costs of both courts.
North, C. J., and Fead, Butzel, Wiest, Clark, McDonald, and Potter, JJ., concurred. | [
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McDonald, J.
This bill was filed to set aside a tax deed and for permission to redeem. The plaintiff was the owner of the premises which are located in Charlevoix county, Michigan. She resides in California. John Quinlan of Petoskey was her agent in charge of the land in question. It was sold for the taxes of 1920. The auditor general’s deed was issued on January 6, 1925, to Mary E. Cam-burn, the purchaser, and was duly recorded in the office of the register of deeds in Charlevoix county. The period of redemption expired on August 16, 1925. The payment of $138.66 was necessary to redeem. Throughout the proceedings the plaintiff was represented by Mr. Quinlan, and Mrs. Cam-burn was represented by the defendant Ben Ellis. It is alleged in the bill that, relying on an agreement for an extension of time, the plaintiff allowed the time for redemption to. expire, and that, subsequently, the defendants repudiated the agreement and refused to accept a tender of the amount due. The regularity of the proceedings is also in issue, but in our view of the case it is not necessary to detail the plaintiff’s contention in that regard. On the hearing, the court found that the agreement claimed by the plaintiff had not been established by the evidence, and held all of the proceedings to have been regular. From a decree dismissing the bill, the plaintiff has appealed.
In view of the conclusion we have reached on the facts in respect to the agreement for an extension of time to redeem, it will not be necessary to discuss any other question. If the agreement was made as the plaintiff claims, and was relied upon by her, and, except for it, she would not have allowed the time for redemption to pass, the refusal of the defendants to carry it out operated as a fraud which would entitle her to equitable relief. Laing v. McKee, 13 Mich. 124 (87 Am. Dec. 738); Palmer v. Palmer, 194 Mich. 79; Markoff v. Tournier, 229 Mich. 571.
Having been advised that the plaintiff desired to redeem, Mrs. Camburn, the purchaser, executed a deed of the premises some time in July, 1925, and left it with the First State Bank of Petoskey to be delivered to Mr. Quinlan on payment of the amount required for redemption. The plaintiff lived in California. Quinlan, her agent, was engaged in the real estate and insurance business at Petoskey. She furnished him with sufficient money to redeem, but, being at the time in financial straits, he used it for his own purposes. About a week before the last day for redemption, it is his claim that he explained his financial situation to Mr. Ellis, and that it was then and there agreed between them that the time should be extended a few days for Quinlan’s convenience in raising the money, and that for this favor he should pay $50 in addition to the amount necessary to redeem. The time for redemption expired on August 16, 1925. Quinlan went to the bank to redeem on August 31, 1925. He there learned that the deed had been withdrawn on August 15,1925. He sought Mr. Ellis and made a tender of the necessary amount, together with the $50 which he claims he agreed to pay for the extension. The tender was refused. Except as to the agreement, which is denied, the facts are not in dispute.
In reference to the agreement, the testimony of the principal witnesses, Quinlan and Ellis, is in sharp conflict. But Mr. Quinlan is supported by the testimony of attorneys Miller and Mesick. They were employed by the plaintiff to investigate the proceedings. They talked with Mr. Ellis in their office. Both testified he told them that he had agreed with Mr. Quinlan to extend the time for redemption. We know of no reason for discrediting the testimony of the&e two witnesses. The trial court says they “may easily have been mistaken.’’ But there is no possibility of a mistake. Their testimony is either true or false. The record discloses no reason for believing it to be untrue. If it is true, then the agreement was made as the plaintiff claims. It is our conclusion that there was such an agreement, that it was relied on, and, but for it, the amount necessary to redeem would have been paid before the time for redemption expired.
A decree will be entered in this court permitting the plaintiff to redeem by paying the amount due on or before 20 days from date, and providing that upon such payment the.defendant Camburn will re-convey by proper deed the title acquired by her from the auditor general. The plaintiff will have costs.
North, C. J., and Fead, Wiest, Clark, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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. North, C. J.
An appeal has been taken from a decree dismissing the bill of complaint by which the plaintiff, who held an oil and gas lease on the premises involved, seeks to restrain the defendants from operating under a lease subsequently executed and also cancellation of such lease.
Plaintiff’s lease was entered into August 14, 1923. The lessors, Jacob B. and Ida Lewis, were the parents of the defendant Pearl Norris, who inherited the premises subsequent to the date of plaintiff’s lease. The other individual defendants are asserting rights as assignees under the lessee named in a “top lease” given by Pearl Norris, August 9, 1928. The Gray Well Drilling Company has contracted to-drill a well for gas and oil upon the leased land. The plaintiff claims that the “top lease” is in violation of his rights under the first lease, and that he is prevented from developing the property by the defendants. But the defendants assert that plaintiff’s lease had expired by its own terms before the bill of complaint herein was filed. The question thus presented must be determined by a proper construction of plaintiff’s lease.
Stated in abbreviated form, the material portions of plaintiff’s lease are as follows:
First parties hereby let and lease to second party * * * with exclusive right.of drilling and operating for petroleum oil and gas * * *‘ the described 20 acres. “It is agreed that the test well will be drilled on the south half of the 20 acres.’-’
Provided, if default shall be made by second party on any of the covenants herein contained, the first party may repossess said premises, etc.
Second party does hereby hire said premises and promises to pay for rent of said premises as follows:
1. “Until the completion of a well producing oil or gas in sufficient quantities to utilize, the sum of $1.00,” the receipt of which is hereby acknowledged.
2. After completion of such a-well, one barrel a day of every eight barrels of petroleum oil obtained or produced on or from said premises. * * *
3. Should any well not produce oil but produce gas and the gas therefrom be sold off the premises, the rental shall be $100 per annum for each well.
A payment of rentals to said first party by a check made payable to the order of lessors and mailed to Muskegon to R. F. No. 8 shall be sufficient payment for any rentals provided for in this agreement. The failure of said second party to make payments of rentals as provided for will render this agreement null and void. * * *
The lessee may at any time surrender this lease upon written notice to lessor and paying all sums due up to that time, and after such surrender the lessee shall have no further liability hereunder.
“It is expressly agreed that the lease shall run for a period of five years and after that time it may be continued at the option of the second parties for a period of up to 94 years upon payment of 15 cents per acre per year.”
In reviewing the decree which dismissed plaintiff’s bill of complaint on defendants’ motion, the allegations of material facts contained in the bill must be accepted as true. If the bill fails to present facts which entitle plaintiff to equitable relief, the decree of dismissal was properly rendered; but not so if the facts alleged entitle plaintiff to relief sought. The lease, which is made a part of the bill of complaint, is poorly drawn. Its terms are uncertain, indefinite, and conflicting; especially under the construction sought by the appellant. It is well settled that leases of this character should be most strictly construed against the lessee and in favor of the lessor. J. J. Fagan & Co. v. Burns, 247 Mich. 674; 18 R. C. L. p. 1214. See, also, opinion handed down herewith in Concord Oil & Gas Co. v. Thompson, ante, 230. The files .in this case disclose that the lease was executed on a prepared form, in which the lessee’s name is printed and which was obviously provided by the lessee. On .this account also it should be most strictly construed against the lessee. The form of this printed lease is one that obviously contemplates development, and which (aside from a , nominal consideration) would otherwise provide nothing of value moving to the lessors in consideration of their giving the lessee the exclusive right for a term of years to develop the oil and gas resources of the leased premises. Plaintiff did nothing toward developing this property within the fixed 5-year term of the lease.
Under the established rules of construction, the interpretation that should be put upon this lease is that a fixed term of five years was contemplated by the parties within which it was understood .the lessee should drill a test well on the leased property; that the nominal consideration of $1 was agreed upon in contemplation of the lessee drilling such test well within a reasonable time and in any event within the fixed period of five years named in the lease. This was not done; and the lease expired by its own provisions.
Though not alleged in the bill of complaint, the briefs filed proceed on the assumption that plaintiff attempted to pay the amount specified in the clause of the lease last above quoted for one year’s extension thereunder by mailing a check therefor to Jacob B. Lewis, It. F. No. 8, Muskegon, Michigan. Plaintiff’s contention that this extended the term of his lease for one year is denied by the defendants. There is no claim that the attempted payment was received and accepted by the lessor, but because of the construction we placed upon the lease this is of little importance. IJnder a lease of this type payment without development within the fixed term will not extend the lease.
As noted above, plaintiff’s lease first specified a fixed term of five years, and while it does not expressly so provide, we hold that it fairly appears from this lease that the parties intended and a fair construction of the lease under the rules applicable thereto should require the lessee to at least begin operations within the’ 5-year term.
Relative to the rule of construction herein adopted as to this class of leases, it is said in 18 B. C. L. p. 1214: ■
“But in many jurisdictions a different rule of construction obtains as to oil and gas leases from that applied to ordinary leases or to other mining leases; and owing to the peculiar nature of the mineral, and the danger of loss to the owner from drainage by surrounding wells, such leases are construed most strongly against the lessee and in favor of the lessor. (Citing many cases.) The object of this rule is to promote development and prevent delay and unproductiveness, and this is regarded as the real intent of the lessor, even if there is no express clause of forfeiture.”
“Where the continuance of a lease or contract giving the exclusive right to explore for and produce oil or gas beyond a definite term is contingent upon finding oil or gas in paying quantities, and the payment to the lessor, in such case, of his share of the oil produced, or a stipulated sum for each well from which gas is taken and sold, the finding and production of oil or gas within the specific term of the lease or contract is primarily essential to the extension thereof. Hence the authorities are agreed that the right further to explore or develop expires where oil or gas is not, within this period, found and produced in paying quantities.” Note to South Penn Oil Co. v. Snodgrass, 71 W. Va. 438 (76 S. E. 961), as reported in 43 L. R. A. (N. S.) 848, in which the authorities are collected.
Under the topic “Non-development of leased premises where no limit is fixed,” it is stated in Thornton’s Law of Oil and Gas:
“It is the duty of the lessee to develop the premises within a reasonable time; and he cannot hold the land for speculative purposes indefinitely, or even for a stated period, for a nominal rent, when a royalty is the chief object for the execution of the lease.” 1 Thornton’s Law of Oil and Gas (4th Ed.), § 141. Citing many cases.
We find no merit in appellant’s contention that he was prevented, or at least was excused, from under taking to operate under his lease by the giving of the ‘‘top lease” and the adverse claims of the defendants. The second lease was executed August 9, 1928, only five days before plaintiff’s 5-year term expired. The second lease was not recorded until the day plaintiff’s lease terminated; and there is no allegation in the bill, nor is the claim made that plaintiff had any knowledge whatever of the latter lease until after the 5-year term provided in his own had ended.
We find nothing in this record which should move a court of equity to grant relief to the plaintiff. The decree entered in the lower court is affirmed, with costs to the appellees.
Fead, Wiest, Potter, and Sharpe, JJ., concurred. Clark and McDonald, JJ., did not sit. The late Justice Fellows took no part in this decision. | [
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Potter, J.
Plaintiff sued Lewis A. Jaffa, doing business- as Huron Motor Sales Company, Frank Drouillard, William Jaffa, and Thomas H. Maynard for damages resulting from injuries caused by defendants’ negligence. Proper service was not made upon William Jaffa. At the conclusion of the testimony, judgment was directed in favor of Thomas H. Maynard, defendant. The case was submitted to the jury as to the liability of Louis A. Jaffa, doing business as Huron Motor Sales Company, and Frank Drouillard. Plaintiff had judgment for $15,000, and defendant Lewis A. Jaffa, doing business as Huron Motor Sales Company, alone brings error.
October 31, 1928, defendant Lewis A. Jaffa was operating a garage and salesroom for the sale of automobiles in the city of Pontiac under the name of Huron Motor Sales Company, which was then in charge of his manager, Thomas H. Maynard. Defendant Drouillard was the owner of the building and left his automobile in the garage to have service performed upon it, and was loaned by Maynard an automobile to use during the time his car was in the garage. At that time Maynard had some conversation with Drouillard about using his automobile during the time Drouillard was using the other car. Maynard claims Drouillard gave him permission to use the car generally if necessary. Drouillard claims he gave him permission only to use his car for the purpose of making a demonstration. Drouillard’s car was placed on the wash rack in the service part of the garage and left in reverse gear by an employee of the Huron Motor Sales Company, and shortly thereafter plaintiff came to defendant’s salesroom but whether as a prospective purchaser of an automobile or for the purpose of visiting with the salesman West is in dispute. While plaintiff was sitting in the salesroom with his back toward large double doors leading from the garage into the salesroom, William Jaffa, a bookkeeper and general office clerk in the employ of the Huron Motor Sales Company, asked and received permission from Maynard to go to lunch and to use Drouillard’s car, then sitting on the wash rack, for that purpose. According to the testimony of William Jaffa, he examined the gear shift and thinking the gear was in neutral stepped on the starter. The car moved rapidly backward and struck the doors behind plaintiff, causing them to bulge inward and a portion of the frame to be torn off. Plaintiff claims he was struck on the back of the head by the doors. Defendants deny this. Plaintiff walked outside the garage after the accident, complained of feeling dizzy, was subsequently removed to the hospital in a police ambulance, and was confined in the hospital for a long period of time. Since the alleged injury plaintiff has been partially paralyzed, confined to his bed, and under the care of a nurse and physician. Defendant claims plaintiff was not injured, and is suffering with hysteria. Plaintiff claims his injuries are permanent.
Defendant assigns many errors, most of which are based upon the proposition that William Jaffa was not acting within the scope of his employment at the time plaintiff was injured, and that a verdict should have been directed in favor of defendants. The error principally relied upon is that the proof shows that William Jaffa who operated the car at the time of plaintiff’s injury, though an employee of the defendant at the time of the injury, was not engaged in the performance of any work for defendant, but was on his way to lunch; that his operation of the automobile was not in the course of his employment, and therefore defendant Huron Motor Sales Company is not liable to respond in damages to plaintiff. The question of whether plaintiff was a licensee or an invitee was properly submitted to the jury, and it found that plaintiff was there as an invitee and its finding on this record is conclusive.
Defendant relies upon Boner v. Eastern Michigan Power Co., 193 Mich. 629; Brinkman v. Zuckerman, 192 Mich. 624; Murphy v. Kuhartz, 244 Mich. 54, and other cases.
In Boner v. Eastern Michigan Power Co., it was held that plaintiff was not,' at the time of his injury, acting within the scope of his employment. The opinion suggests that if plaintiff had remained on defendant’s premises and had been in charge of any of his employer’s property or had been subject to the employer’s orders, the holding might have been otherwise.
In Brinkman v. Zuckerman, defendant’s chauffeur borrowed defendant’s automobile and while operating it in his own business and not about defendant’s business or near his place of business, negligently ran defendant’s automobile against the front of plaintiff’s store. The proof showed the chauffeur was acting entirely on his own initiative, away from defendant’s premises, not on defendant’s business and defendant was held not liable.
In Murphy v. Kuhartz, plaintiff brought suit to recover damages claimed to have been caused by the negligence of defendant’s employee. Defendant was engaged in the cartage business. One Metz was the driver of one of defendant’s trucks. On the day of the accident Metz was engaged in delivering merchandise. Instead of returning from the last point of delivery to the warehouse, he proceeded a considerable distance in an opposite direction from the warehouse to his home where he had dinner, and then began his return to the warehouse. The defense was that Metz at the time of the injury was not acting within the scope of his employment. The trial court directed a verdict for defendant. It is said:
“When the accident happened, he had accomplished his personal purpose and was well on his way by a direct route to the warehouse. So, assuming that in going to his dinner he temporarily abandoned his master’s business, the question is, Had his service been resumed at the time of the accident? * * *
“There are cases which hold that where a servant in driving his master’s truck so deviates from his regular route as to suspend the relation of master and servant, it is immediately restored when he starts to return. * * * But by better authority it is held that the relation of master and servant is not restored until he has returned to the place where the deviation occurred or to a corresponding place, some place where, in the performance of his duty, he should be.”
All of these cases are clearly distinguishable from the case at bar.
In Broderick v. Detroit Union Depot Co., 56 Mich. 261 (56 Am. Rep. 382), plaintiff, an employee, was injured during intermission for dinner. It was claimed the relation of master and servant did not exist between plaintiff and defendant at the time of the injury. It is said:
“It does not follow that because plaintiff was given an intermission from work of an hour and a half for dinner, he ceased during that time to be the servant of defendant. If during that time he had in his care or custody any of his master’s property requiring his attention and oversight, or if called upon to perform work by the master, or by one having authority to command his service, the relation would still exist, arising in the one case from the duty to properly care for the property of the master, and in the other from the duty to perform the service. ’ ’
In Adams v. Iron Cliffs Co., 78 Mich. 271 (18 Am. St. Rep. 441), one Root, an employee of the iron company employed at its iron furnace at Negaunee, was injured. It was claimed that Root was not in the employ of the company at the time he was injured. It is said:
“Conceding that'the deceased had started to go down town to attend to some private business of his own, which he was in the habit of doing every day, or nearly every day, still, when this accident occurred, he must be considered to have been in the employ of the defendant. There was no stated time in which he was authorized by his employment to leave the service of the defendant and go down town, and attend to his own business. It would appear that his duties at the furnace were not so exacting but that he could go about his private business at times without detriment to the defendant, and. there is no doubt but he was permitted to do so. But his employment by the defendant was such that he was not authorized to subordinate its business to his own, and at any time during working hours when he was on defendant’s premises his duty was to look after and perform his duties there. His duties were multifarious, and if, at any time, after he had started to go down town, and while on defendant’s premises, any need of his services had arisen, it would have been his duty, under his employment, to have at once stopped and given such services. He was not permitted at any time to say in his own mind, ‘I will now leave the employment of the company at once, and go about my own business,’ regardless of what might occur on the premises before he left them re quiring Ms care and attention under Ms employment. He was not out of the employment of the defendant until he was off its premises. Broderick v. Depot Co., 56 Mich. 261, 268 (56 Am. Rep. 382).”
Brink v. J. W. Wells Lumber Co., 229 Mich. 35, arose under the workmen’s compensation act. The question was whether plaintiff was, when injured, within the scope of his employment. It is there said:
“Plaintiff was on the premises of the employer, going from his work, leaving within a reasonable time, following a customary and permitted route off the premises, and in the immediate vicinity of his labor. It is a general rule that an employee, under such circumstances, is still in the course of his employment. Papinaw v. Railway Co., 189 Mich. 441; 1 Bradbury’s Workman’s Compensation (2d Ed.), p. 419; White v. Eastern Manfg. Co., 120 Me. 62 (112 Atl. 841, 16 A. L. R. 1165); 20 N. C. C. A. 539, note; 22 N. C. C. A. 545, note; 12 N. C. C. A. 659, note; Harper Workmen’s Compensation, 46; DeMann v. Hydraulic Engineering Co., 192 Mich. 594; Novack v. Montgomery Ward & Co., 158 Minn. 495 (198 N. W. 290).
“ ‘In going to and from Ms place of work upon the premises owned or controlled by his employer, an employee is deemed as a general rule to he engaged in the employment.’ * * * 18 R. O. L. p. 584.
“And see 50 L. R. A. 468; Broderick v. Union Depot Co., 56 Mich. 261 (56 Am. Rep. 382); Adams v. Iron Cliffs Co., 78 Mich. 271 (18 Am. St. Rep. 441); Lienau v. Telephone Exchange Co., 151 Minn. 258 (186 N. W. 945).
“There are exceptions, of course, such as where the employer’s premises are a railroad, stretching endless miles across the country, and the accident happens at a place far removed from the actual place of employment. See Hills v. Blair, 182 Mich. 20, where it was said:
“ ‘The employment is not limited by the exact time when the workman reaches the scene of his labor and begins it, nor when he ceases, but includes a reasonable time, space, and opportunity before and after, while he is at or near his place of employment. One of the tests sometimes applied is whether the workman is still on the premises of his employer. This, while often a helpful consideration, is by no means conclusive. * * *
‘ ‘ ‘ ‘ ‘ It is not a sufficient test that the workman should be on the premises of the employer; but it may be sufficient that he is in such a state of proximity as ma.y be treated as a reasonable margin in point of space.” Hoslcms v. Lancaster, 3 B. W. O. O. 476.’
“And in Guastelo v. Railroad Co., 194 Mich. 382 (L. R. A. 1917 D, 69):
“ ‘The protection of the law extends to a reasonable time and space for the employee to leave the locality or zone of his work and while he is in proximity, approaching or leaving his place of employment by the only means of access thereto.’
“See Clifton v. Kroger, etc., Co., 217 Mich. 462.
“The distance of the place of the accident on the employer’s premises from the actual place of the employment, whether it be factory or warehouse, is not so great as to bring this case within exception noted in the Hills Case.
“In Hoskins v. Lancaster, supra, it was held, quoting syllabus:
“ ‘A collier was injured by a gate swinging back on him. The land on both sides of the gates belonged to his employers and the gates were about 150 yards from the lamp-room to which the collier was first going on his.way to work. The passage through the gate was the reasonable mode of aeeess to the collier’s work. On a claim for compensation the county court, judge held that the workman was entitled to compensation and that the accident arose out of and in the course of the employment.
“ ‘Held, that there was evidence to support this finding.’
“The accident arose out of and in the course of the employment. Rayner v. Sligh Furniture Co., 180 Mich. 168 (L. R. A. 1916A, 22, Ann. Cas. 1916A, 386); Wabash Ry. Co. v. Industrial Commission, 294 Ill. 119 (128 N. E. 290).”
In McKeon v. Manze, 157 N. Y. Supp. 623, plaintiff was injured by one Taft, an employee of Manze. Defendant ran a hotel and bar. Taft ran a lunch counter in connection, with the business. After the lunch counter was closed, Taft went behind the bar to. wash up. In an altercation with one “Happy,” a beer glass was thrown by Taft and plaintiff injured. It was contended by defendant the relation of master and servant did not exist between defendant and Taft at the time of the injury. It is said:
“It may be said generally that the relation of servant and master does not begin or terminate necessarily the instant the particular duties the servant has to perform begins or ends. There is a long line of cases holding this general doctrine. An employe'e has been held still an employee while taking time off for his meals, while still on railroad premises. United States v. Chicago, etc., R. R. Co. (D. C.), 197 Fed. 624. One going to work upon the defendant’s premises has been held a servant. Boldt v. N. Y. Central R. R. Co., 18 N. Y. 432. One riding on a pass to and from his work has been held a servant. Vick v. N. Y. Central R. R. Co., 95 N. Y. 267 (47 Am. Rep. 36). To the same effect are the cases of Russell v. Railroad, 17 N. Y. 134, and Vroom v. N. Y. Central R. R. Co., 129 App. Div. (N. Y.) 858 (115 N. Y. Supp. 1063), affirmed in 197 N. Y. 588 (91 N. E. 1121). In McDonald v. Simpson-Crawford Co., 114 App. Div. (N. Y.) 859 (100 N. Y. Supp. 269), it was held (syllabus): ■
“ ‘The fact that the actual working hours were over and the saleswoman was going to the top floor to resume her street clothes, did not end the relation of master and servant.’
“In North Carolina R. Co. v. Zachary, 232 U. S. 248 (34 Sup. Ct. 305, Ann. Cas. 1914C, 159), an employee was injured while crossing a railroad yard of his employer to dinner, and it was held that the relation of master and servant still existed, although he was going to his own dinner, off the railroad premises. In Muller v. Oakes, etc., Co., 113 App. Div. (N. Y.) 689 (99 N. Y. Supp. 923), a fireman was engaged in washing his overalls at a tank, and it was held that, though the fireman was washing his own clothes, he was not outside the scope of his own employment. See also Muhlens v. Obermeyer, 83 App. Div. (N. Y.) 88 (82 N. Y. Supp. 527); Famborille v. Atlantic Gulf & Pacific Co., 155 App. Div. (N. Y.) 833 (140 N. Y. Supp. 529), affirmed in 213 N. Y. 666 (107 N. E. 1077).”
In Commonwealth v. Railway Co., 143 Mass. 501 (10 N. E. 506), defendant was indicted for the injury and death of Allen,- caused by the negligence of Fenner, the driver of the car horses, in leaving the car to go to breakfast. It was contended by the defendant the relation of master and servant did not exist between it and Fenner at the time of Allen’s injury. It is said:
“The facts show that the driver Fenner was relieved by one Ashley, to enable Fenner to go to his breakfast. Fenner was in the employ of the defendant corporation, as a driver of one of its horse cars. To perform this duty it was necessary for him to go upon the car, and it was also necessary’ that he should leave the car when he went to his meals, and when his service was completed for the day. We do not think that he was exclusively within the scope of his employment when he was handling the reins and driving the horses. When going upon the car for that purpose, and when leaving it after he had stopped driving, he was within the scope of his employment. His employment was continuous, and his service began when he stepped upon the car for the purpose of driving the horses, and continued until he left the car, at least if he left immediately after giving the reins and horses in charge of another driver. If in going upon the car to act as driver, or in leaving the car at once after ceasing to be driver, he negligently and carelessly came in contact with a passenger, by reason of which the passenger suffered injury, we think that the driver in so doing was a servant of the corpora tion, was acting within the scope of his employment, and that the corporation is responsible to the passenger injured for the negligent acts of its driver. The company is liable for whatever injury occurs to a passenger through the negligence and carelessness of its servant in doing what is necessarily incident to his employment.”
In Sina v. Carlson, 120 Minn. 283 (139 N. W. 601), it is said:
“The rule is that, if within the course of his employment an employee is permitted to use his employer’s vehicle to facilitate the performance of necessary errands of his own, he is still an employee while so doing, and the principle of respondeat superior applies. This rule has frequently been applied to cases where railway employees have been permitted to use an engine in going to and from meals (E. St. Louis Con. Ry. Co. v. Reames, 173 Ill. 582, 586 [51 N. E. 68]; Reilly v. H. & St. J. Ry. Co., 94 Mo. 600, 608, 609 [7 S. W. 407]; Steffen v. McNaughton, 142 Wis. 49 [124 N. W. 1016, 26 L. R. A. (N. S.) 382, 19 Ann. Cas. 1227]); or to and from work (Gillshannon v. S. B. R. Corp., 10 Cush. [Mass.] 228; Ewald v. C. & N. W. Ry. Co., 70 Wis. 420, 428 [36 N. W. 12, 591, 5 Am. St. Rep. 178]); and generally to the case of employees who are permitted to use the employer’s instrumentalities for similar purposes (Mulvehill v. Bates, 31 Minn. 364 [17 N. W. 959, 47 Am. Rep. 796]; Morier v. Ry. Co., 31 Minn. 351, 353 [17 N. W. 952, 47 Am. Rep. 793]).”
We think the trial court properly submitted the disputed question of fact to the jury. Its finding, on this record, is conclusive. There are other assignments of error. None of the claimed errors warrant a reversal of the judgment, which is affirmed, with costs.
North, C. J., and Fead, Butzel, Wiest, Clark, McDonald, and Sharpe, JJ., concurred. | [
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North, C. J.
This is a suit upon a promissory-note for $50. Upon appeal to the circuit court the jury found in favor of the defendant; but judgment non obstante veredicto was entered for the plaintiff. The controversy is now before us on case-made. This note, in the usual form of promissory notes, was given by the defendant to the plaintiff. It is claimed by the plaintiff that, incident to its reorganization, this note was given to it in payment of defendant’s subscription for five shares of stock. This is denied by the defendant, and he testified that he never agreed to subscribe for stock in the plaintiff company, and that no stock was ever delivered to him; and, further, that his note was to be used as
"A collateral note just to secure this money. * * * They told me the note would be returned within a year’s time. It was to be used to secure a loan to purchase buildings. They never purchased the buildings.”
The issue thus presented is more clearly stated in the following portion of the charge by which it was submitted to the jury:
"The plaintiff says the note was given in payment of a stock subscription. The defendant claims the note was given for special purposes, that is, an accommodation, to be used as collateral to enable the plaintiff to borrow money, and that it was to be returned to the defendant if not used for that purpose. * * *
"If the defendant has proved by a preponderance of the evidence that this note was given upon the express understanding that it was to be used only as collateral and was to be returned to him if not used for that purpose, then your verdict should be for the defendant, no cause of action.”
The record does not disclose what reason prompted the trial judge to enter judgment non obstante. The judgment having been so entered presents the sole ground of error relied upon in appellant’s brief. This issue was fairly raised by the notice under defendant’s plea that this note was given without consideration “for a special purpose,” and if not used for that purpose the note was to be returned to the defendant at the expiration of one year, and that the note was not used for the alleged purpose. Competent testimony was given in support of this defense. The issue was fairly submitted to the jury, resulting in a verdict of no cause for action. The defense was a valid one. Lanphere v. Ackles, 220 Mich. 300; Runciman v. Brown, 223 Mich. 298; Taylor v. Rugenstein, 245 Mich. 152. We find nothing in the record which justifies the entry for the plaintiff of the judgment non obstante veredicto.
The appellee complains in its brief that since the defendant’s alleged stock subscription was in writing, it was error to receive his oral testimony denying such subscription. The suit was brought on the promissory note and not on the stock subscription. In any event, since the appellee did not embody in the bill of exceptions an assignment of error presenting the question, it is not before this court for determination. The practice is fixed by the following portion of section 6, Circuit Court Rule No. 66:
“No error against the party in whose favor such judgment shall have been entered shall be considered, unless such party (the appellee) shall prepare and present assignments of the errors upon which he relies for a new trial in the event of a reversal of such judgment. Such assignments of error shall be presented and attached to the bill of exceptions at the time of the settlement thereof, in like manner and with like effect as assignments of error by the appellant.”
I had supposed the practice was definitely settled that on writ of error or case-mad'e this court would not review a question not covered or presented by an assignment of error. The decisions of this court to that effect are so numerous that it is unnecessary to cite them. In the instant case the question considered by Mr. Justice Sharpe is not before this court by any assignment of error. In fact, as above stated, the plaintiff did not make any assignments of error or take any steps to review the proceeding had in the lower court.
But aside from this matter of practice, it should be noted the record here discloses that the defendant is not attempting to vary by parol testimony the terms of the written instrument which plaintiff claims was a stock subscription. Instead," he simply takes the position that if plaintiff claims the subscription for stock was part of the same transaction as the execution and delivery of the promissory note, then the defendant asserts that the stock subscription and note were both obtained by fraudulent misrepresentations that the note was only for accommodation purposes and would be returned within a year. I think Justice Sharpe is in error in stating that this record “is devoid of proof” of fraud. Concisely and incompletely stated, the following relative to defendant’s claim of fraud appears in the record: That defendant had never before met plaintiff’s agent who secured defendant’s signature to the note sued upon, nor had defendant ever had anything to do with the plaintiff corporation before that time. •Notwithstanding this, plaintiff’s agent induced defendant to sign this note in blank and also the agreement which defendant testified he could not remember ever having seen before. This agreement now appears to state that at the time of its execution defendant was the holder of “investment notes” in plaintiff company, and that he was the maker of “a collateral note of the face value of $100,-” neither of which is true. It also recites that defendant desired to take stock in the corporation, but defendant swore positively and repeatedly this statement was also untrue. It further recites • that defendant “agrees to surrender the investment notes held by him above referred to” when in fact defendant never had any such notes to surrender. This is the somewhat lengthy and involved printed form which in its last paragraph contains the alleged stock subscription, and it is in reference to this very alleged agreement that defendant’s counsel stated to the trial court: “We want to show that it was obtained by fraud and misrepresentation;” and the court said “Very well. On that theory you may proceed.” Notice to this effect had been given under defendant’s plea of general issue. Competent testimony was taken and stands uncontradicted in this record that when defendant gave this note, plaintiff’s agent stated that plaintiff wanted defendant’s note “to be used as a collateral note, ’ ’ that the proceeds thereof would be used to purchase certain buildings, that defendant’s note would be returned to him within a year’s time and he would not have “to put up any money;” and' that nothing was said to defendant about buying stock. The undisputed proof also shows that the buildings in question were not purchased by the plaintiff, and that defendant never received any stock in the plaintiff corporation. A more palpable fraud would be hard to conceive. Surely in this suit between the original parties to the note parol evidence was admissible to establish a fraud so perpetrated; otherwise in practically all cases the victim of a fraud, who by misrepresentation was induced to sign his name to the instrument through which the fraud was perpetrated, would be without redress in the courts. Fortunately such is not the law. The defendant’s oral testimony was relevant to his defense and competent.
The judgment non obstante should be set aside, and the case remanded for entering judgment in accordance with the verdict of the jury in favor of the defendant, and for the taxation of his costs.
Fead, J., concurred with North, C. J. McDonald and Potter, JJ., concurred in the result. | [
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Wiest, J.
July 3, 1928, plaintiff commenced this suit, in the Oakland circuit, under the provisions of 3 Comp. Laws 1915, § 13122, as amended by Act No. 305, Pub. Acts 1925, and 3 Comp. Laws 1915, § 13150, by taking out a summons against the principal defendant, a foreign corporation, and a writ of garnishment against the Pontiac Commercial & Savings Bank, a Michigan corporation. The summons to the principal defendant was made returnable August 3, 1928. While that summons was outstanding, on July 23, 1928, substituted service was made upon the principal defendant at its place of business in the State of Florida. The principal defendant, under special appearance, moved the court to dismiss the case and quash the writ of garnishment for the reasons: (1) That the statutory procedure had not been complied with, in that the summons was not returned and filed on the day of its issuance, and was outstanding at the time of the substituted service. (2) The affidavit for the writ of garnishment ■ did not state, as required by Act No. 305, Pub. Acts 1925, “that such indebtedness is, or is not, on account of labor performed by the principal defendant.” The motion was denied and the principal defendant reviews by writ of certiorari. Should the summons have been returned and filed in the office of the clerk on the day of issuance? The statute (3 Comp. Laws 1915, § 13150) provides:
“If the plaintiff * * * shall set forth in such affidavit (for the writ of garnishment) that the principal defendant is a nonresident of the county or State where the suit is commenced, * * * or a foreign corporation created in any jurisdiction (naming it), the principal writ or declaration and affidavit may be filed on the day of issue, and the writ of garnishment may be served as in ordinary cases; and within 60 days after such service the plaintiff shall cause to be delivered to such nonresident defendant or defendants, or the president, secretary, cashier or treasurer of such foreign corporation residing out of this State, or upon any officer, clerk or agent residing or to be found within this State, a true copy of the principal writ or declaration, affidavit and writ of garnishment,” etc.
The provision relative to returning and filing the summons the day it is issued is permissive and not mandatory, and the leave to do so, if adopted, avoids waiting for the return day of the writ before making substituted service. The return day of original writs in personal actions is regulated by general rules of court. 3 Comp. Laws 1915, § 12406. Circuit Court Rule No. 18 fixes the maximum time for the return of the writ at three months, and Circuit Court Rule No. 19 fixes the minimum time at ten days. The statute under consideration, however, permits but does not compel a departure from the rules.
Plaintiff took out a summons on July 3d, returnable August 3d, and did not avail himself of the statutory permission to return and file it at once, and could not, before the return day thereof, make substituted service. The substituted service was void. A void service is no service. The substituted service should have been set aside. The motion to dismiss was heard August 20th, and, therefore, after the return day of the summons. At that time the principal defendant was not entitled to have the suit dismissed, for the statute gave plaintiff 60 days after the writ of garnishment was served in which to make substituted service. The writ of garnishment was issued and served July 3d, and the summons was issued the same date and made returnable August 3d. The substituted service was made July 23 d. While the writ was outstanding no substituted service ivas permissible, but at the time the motion was made the plaintiff still had until September 2d to make substituted service. The substituted service made was premature. The motion to dismiss was also premature. The premature service should have been set aside, and, upon return of the summons, the substituted service could have been made within 60 days after service of the writ of garnishment. For the reason mentioned the motion to dismiss the suit was properly denied.
Does the mentioned act of 1925 make it mandatory to státe in the affidavit for a writ of garnishment that the indebtedness sought to be reached “is, or is not, on account of labor performed' by the principal defendant?” The statute expressly requires that it shall be so stated in the affidavit for the writ. The rule authorizing garnishment contains an exception, not in the nature of a mere proviso. Conjecture or subsequent reasoning, from premise to conclusion, may not be indulged to excuse a failure to state the fact required by statute. The right to a writ of garnishment is statutory and the affidavit for the writ must conform to the requirements of the statute. Saying that the indebtedness of the bank to the foreign corporation could not possibly have been on account of labor performed does not meet wbat the statute says shall be stated in the affidavit. The plaintiff could not state a cause for the writ of garnishment without negativing the mentioned exception. The reason for such statement in the affidavit for the writ appears in the same section of the statute. If the indebtedness is for labor, then no writ of garnishment can issue before judgment against the principal defendant.
The statute was not complied with, and the motion to quash the writ of garnishment should have been granted.
The denial of the motion to quash the writ of garnishment is reversed, with costs to the principal defendant, and the case remanded to the circuit court to enter an order in accord with this opinion.
North, C. J., and Fead, Clark, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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Kelly, J.
The Oakland county board of supervisors decided on a site and commenced plans for the construction of a new and adequate courthouse. No one challenges the fact that a new courthouse was necessary.
Plaintiff, a voluntary, nonpartisan association of taxpayers and electors of Oakland county, filed its bill of complaint asking the court to decree:
“A. That no authority is conferred by law upon defendant board of supervisors to designate a new site for a courthouse in Oakland county. * * *
“B. That defendant board of supervisors has no lawful authority to designate a site for a new courthouse partly within and partly without the limits of the county seat.
“C. That amounts in excess of constitutional and statutory limitations for the purchase of land and the construction of public buildings without the approval of the electors, have been heretofore included by defendants in various county budgets.
“D. That defendants have made transfers of excess balances in various county funds to building funds without authority of law.
“E. That a public accounting be directed, and, upon the conclusion thereof, defendants be directed to replace and restore to the general fund of the county all moneys deposited in, or, credited to, any building account fund, or fund for the purchase of land, and any additional funds which should be deposited in or credited to the general fund as required by law.”
In its bill of complaint, plaintiff does not by this action impugn the personal honesty or integrity of the members of defendant board, but does question any legal authority for their official action.
An extensive hearing was held and Hon. Herman Dehnke, circuit judge sitting in Oakland county, ruled: (1) That the county had the right to sell the old courthouse and to move the site without a vote of the people; (2) that the annexation was unlawful; and (3) that the moneys belonging to the general fund were unlawfully placed in the building fund.
Defendant, board of supervisors, and defendantintervenor, South Oakland County Bar Association, appealed from the ruling that the annexation was unlawful and that moneys belonging to the general fund were unlawfully placed in the building fund.
Plaintiff, appellee and cross appellant asks this Court to reverse the trial court’s finding that the board of supervisors had authority to determine a new site for the courthouse and to sell land donated to the county as a site for a courthouse.
The attorney general, as plaintiff-intervenor .and appellee, files a brief stating that the people are only concerned with the following problems: (1) Does article 8, section 10, of the Michigan Constitution (1908), which limits raising of money by taxation or borrowing, for the construction or repair of public buildings or bridges to 1/10 of a mill also limit the amount that can be spent or accumulated from sources that properly should be used to reduce the tax revenue; and (2) are PA 1943, No 177, as last amended by PA 1956, No 136 (CL 1948 and CLS 1956, § 141.261 et seq. [Stat Ann 1958 Rev § 5.2770 (1) et seq.]), and PA 1923, No 118, as last amended by PA 1957, No 186 (CL 1948, § 141.61 et seq., as amended [Stat Ann 1958 Rev § 5.2251 et seq.]), unconstitutional?
Question No. 1: Did the Court err in determining that the hoard of supervisors had authority to select a new site¶
The site upon which the present courthouse stands was donated to the county in 1823 on condition that a courthouse be erected thereon, and a courthouse has been continuously maintained there for 135 years since the 1823 donation. The new site selected by the board is 2.7 miles from the present courthouse site.
PA 1851, No 156, § 11, gave to boards of supervisors the right “to purchase any real estate necessary for the site of any courthouse,” and also gave the right “to fix upon and determine the site of any such building, if not previously located.” Appellee contends that the words “not previously located” are words of limitation.
The legislature did not establish the site of the present courthouse in Pontiac, Oakland county, Michigan. In deciding that the board of supervisors had the right to select a new site without a vote of the people, we adopt the opinion of the trial court:
“It must be remembered that this statute was enacted during the period when our counties were being organized by legislative action. In many cases, only general designations were made for the location of county seats, in others the precise descriptions of the site within the county seat were stated. * * * In the light of this historical background, it appears to me to be reasonable to construe section ‘third’ of the statutes (‘to fix upon and determine the site of any such building, if not previously located’) as having no other purpose than to confer upon the board of supervisors authority to establish within the boundaries of the county seat the precise site of the courthouse in those cases in which that site had not been previously fixed by the legislature.”
Question No. 2: Bid the court err in deciding the board had the right to sell the present courthouse and use the proceeds to assist in financing the cost of a new courthousef
Revised Statutes 1846, eh 13, § 5 (CL 1948, § 45.5 [Stat Ann §5.285]), provides:
“The board of supervisors of each county, or other public officers having the charge and management of the county lands, may, by their order of record, appoint 1 or more agents to sell any real estate of their county not donated for any special purpose, and all deeds, made on behalf of such county, by such agents under their proper hands and seals, and duly acknowledged by them, shall be sufficient to convey all the right, title, interest and estate which the county may then have in and to the land so conveyed.”
Five years later the legislature by PA 1851, No 156, § 11 (CLS 1956, § 46.11, subd 4 [Stat Ann 1957 Cum Supp § 5.331, subd 4]), provided that the boards of supervisors could “authorize the sale or leasing of any real estate belonging to such county, and to prescribe the mode in which the conveyance thereof! be executed.”
Appellee states:
“The wisdom of the legislature in withholding power from boards of supervisors to sell real estate donated to the county for a special purpose is apparent. Its purpose was to encourage public minded persons to donate real estate to counties, and, to permit the donor to specify in the conveyance the purpose for which it was to be used, with the assurance that the property could not be subsequently sold by county authorities and the public deprived of the use of the property specified by the donor.”
One hundred and thirty-five years ago, when a public spirited citizen made his donation of land, Oakland county’s needs were vastly different than today. The donor’s intention to help provide for an adequate courthouse will not be violated by the sale of the property and the investment of the moneys received in a new and adequate courthouse.
Appellant, appellee, and our research, find no decision of this Court challenging the board’s right under conditions similar to this case, during the more than 100 years that have elapsed since the 1846 and 1851 enactments. We do not interpret the 1846 statute, especially because of the later act of 1851, to mean that irrespective of change in social and economic needs a donor’s expressed desires should never be thwarted. We agree with the trial court that the board of' supervisors had the right to sell the land and building now used for courthouse purposes.
Question No. 3: Was the annexation unlawful?
The site selected by the board of supervisors for the new courthouse was partly within the county seat and partly within the adjacent township of Waterford. The board deemed it necessary to secure the annexation of the township property to meet the requirements of the statute (CL 1948, § 45.16 [Stat Ann § 5.291]).
The county petitioned Waterford township to detach and the city of Pontiac to annex and appropriate resolutions were passed by both bodies, as re quired by PA 1909, No 279, as amended (CL 1948 and CLS 1956, § 117.1 et seq. [Stat Ann 1949 Bev and Stat Ann 1957 Cum Supp § 5.2071 et seq.]), and tbe property was annexed to tbe county seat and the city of Pontiac placed as “exempt” the property on its tax record.
Section 9 of the home-rule act (CLS 1954, § 117.9 [Stat Ann 1955 Cum Supp § 5.2088]) provided:
“That as an alternate method, where there are no qualified electors residing in the territory proposed to be annexed to said city, a petition signed by * * * the State or any of its subdivisions who collectively hold the record legal title to more than 1/2 of the area of the land in the territory to be annexed is filed with the city council of said city and with the township board of the township in which such territory is situated, such annexation may be accomplished by the affirmative majority vote of the city council of such city and the approval of the township board of such township.”
The petition for annexation stated that “there are no qualified electors residing in the territory proposed to be annexed,” and the resolutions of the township and city were based on this premise.
In the proposed annexed territory there is located an infirmary and a juvenile home, with a combined number of 14 employees, who, because of the nature of their employment, are required to live in the infirmary or the juvenile home. Several of these persons had registered as voters in Waterford township, giving their residence as either the infirmary or the juvenile home, and the trial court held that these persons should have been given the opportunity to vote on the annexation issue. Appellants take the contra position.
Article 3, § 2, of the Michigan Constitution (1908), reads:
“No elector shall be deemed to have gained or lost a residence by reason of his being employed in the service of the United States or of this State, nor while engaged in the navigation of the waters of this State or of the United States or of the high seas, nor while a student at any institution of learning, nor while kept at any almshouse or other asylum at public expense, nor while confined in any public prison; except that honorably discharged soldiers, seamen and marines who have served in the military or naval forces of the United States or of this State and who reside in soldiers’ homes established by this State may acquire a residence where such home is located.”
Appellants call attention to this Court’s decisions to the effect that inmates of an asylum or a soldiers’ home do not lose legal residence they had when they entered these institutions. See Wolcott v. Holcomb, 97 Mich 361 (23 LRA 215); People v. Hanna, 98 Mich 515. Appellee answers by stating:
“We never contended any such inmates had a right to vote, none voted so far as the record disclosed, and, this question is not involved.
“The only question to be considered under this head is whether employees of the county, who were required by their employment to live at the county infirmary or the juvenile home, who had no other place of residence and who had been regularly registered and voted in the township, were qualified •electors.”
Appellants set forth at length the opinion of the Colorado supreme court in Kemp v. Heebner, 77 Colo 177 (234 P 1068), where a constitutional provision .similar to our Michigan provision was interpreted, and where the vote of a civilian employee of a United States soldiers’ hospital was challenged. In this hospital the employees were permitted by the management, as part of their pay, to remain on the grounds and sleep in the buildings. The court in this Colorado case held (pp 180, 182):
“We do not see any difference in principle, so far as concerns the question before us, between civilian employees and inmates. But if there is any distinction, the status of the latter is stronger and their right to vote at a place which was established solely for their benefit is much more appealing than that of the former. * * * Neither patients nor inmates nor employees of the hospital, under our Constitution and controlling statutes, would or could acquire on the hospital grounds a home or domicile, a place of permanent residence.”
Appellants state:
“After diligent search appellants are unable to point to Michigan law on this question but the State of Colorado has ruled on it and its constitutional provision is very similar to ours.”
It is appellants’ claim that the word “State” as it appears in article 3, section 2, of the Michigan Constitution, includes “counties” and, therefore, would have the same application to county employees as it would to a State employee.
Testimony was offered by one of the county employees living at the infirmary that she had been employed there since 1936 and had made her home at the infirmary since 1943, living there by virtue of her employment and that she had registered and voted in Waterford township since 1944. Counsel agreed that substantially the same facts applied to the other county employees living at the building.
The court aptly stated:
“It is one thing to say that no presumption of a legal right to vote arises from the fact that persons coming within any of such special classes are abiding in the township or city, voluntarily or involuntarily ; it is something very different to say that em .ployment of the kind here under consideration in and of itself is a legal bar to acquiring the status of ‘legal elector’ within the municipality.”
The legal voting status of these employees had not been challenged in previous elections. Those who were conducting the annexation proceedings undoubtedly failed to realize that within the annexed territory there were qualified electors. After the legality of the proceedings had been challenged a second petition was filed by the supervisors with signatures of those persons whose voting status is now in dispute, and this petition stated that they were “qualified electors.”
The court did not err in holding that “these proceedings, not conforming to the special conditions of the statute, were void and ineffective. From a practical standpoint, I do not suppose that this constitutes a serious obstacle to carrying out defendants’ plans, but it does mean that some other method must be pursued to accomplish the annexation.”
Question No. 4: “Does article 8, § 10, of the Michigan Constitution (1908), which limits raising of money by taxation or borrowing ‘for the construction or repair of public buildings or bridges’ to 1/10 of a mill, also limit the amount that can be spent or accumulated from sources other than direct taxation?” August 3, 1954, a special election, pursuant to a resolution of the board of supervisors, was held and the following proposals were submitted:
1. Shall the county borrow $4,500,000 to pay the •cost of erecting a county building in the city of Pontiac to house the courts and general county offices ?
2. Shall the limitation on the total amount of taxes be increased by 1/20 of 1% for the purpose of paying principal and interest on bonds to pay the cost of erecting a county building in the city of Pontiac, Michigan, to house the courts and county offices?
Oakland county voters approved the bond issue, but defeated the increase of millage.
The board again submitted the question of increasing the millage at the general election of November 2,1954, but again the millage proposal was defeated.
The board considered the creation of a county authority and a revenue bond issue but, on advice of the county financial expert, abandoned the plan.
The board of supervisors then decided to proceed toward the construction of the courthouse, using the balance in the building fund, allocating to the building fund miscellaneous county revenues, and continuing the 1/10 mill property tax, and the board employed an architect. The county’s plan of financing is described by appellant county as “a pay-as-you-go, piecemeal plan which would be financed with the surpluses on hand plus current receipts.” This plan, however, was brought to a halt on the 20th day of November, 1956, when appellee instituted this action.
During the past 10 years, out of an appropriated surplus on hand, the board of supervisors has erected the following county buildings: an addition to the infirmary, 2 juvenile cottages, an office building, social service building, medical center, dog pound, a market, and a children’s clinic, at a cost of $2,192,-716.70. Appellee admits all of these buildings were necessary.
During this 10-year period only $528,303.70 was derived from the 1/10 mill tax, and the board of supervisors met the needed moneys, approximately 1-1/2 million dollars, by using the unexpended balance that remained at the end of each year. Appellee claims this financial plan does not change the fact that it was derived from taxation; that continued annual underestimate of miscellaneous revenue was to increase the county tax levy by the amount of the annual surplus; that the surplus mis cellaneous revenues could not be expended by the board without authority of the electors.
Defendant board informed the trial court that, “Most, if not all, of the differences between the parties to this suit involves legal interpretations of the Constitution and the statutes.* * * May we re-
spectfully suggest that in tilling the legal soil in this case the court will have its plow in some virgin soil.”'
The attorney general, calling to the trial court’s-attention the auditor general’s duty toward counties, stated: “Involved is the question of financial morality.”
Article 8, section 10, of the Constitution (1908),. reads:
“The board of supervisors of any county may in any 1 year levy a tax of 1/10 of 1 mill on the assessed valuation of said county for the construction or repair of public buildings or bridges, or may borrow an equal sum for such purposes; * * * but no greater sum shall be raised for such purposes in any county in any 1 year, unless submitted to the electors of the county and approved by a majority of those voting thereon.”
Similar limitations are found in the statutes. CLS-1956, § 46.7 (Stat Ann 1957 Cum Supp § 5.327) provides :
“The board of supervisors of any county may in any 1 year levy a tax of 1/10 of 1 mill on the assessed. valuation of said county for the construction or repair of public buildings * * * but no greater sum shall be raised for such purposes in any county in any 1 year, unless submitted to the electors of the' county and approved by a majority of those voting' thereon.”
CL 1948, § 141.71 (Stat Ann 1958 Rev § 5.2301> provides:
“The board of supervisors of any county may in any 1 year levy a tax of 1/10 of 1 mill on the assessed valuation of said county for purchase of real estate for sites for, and tbe construction or repair of public building’s or bridges, or may borrow an equivalent sum for sucb purpose; * * * but no greater sum shall be raised for sucb purpose in any county in any 1 year unless submitted to the electors of tbe county and approved by a majority of those voting thereon in tbe manner provided in this act.”
Appellants, endeavoring to justify tbe use of funds accumulated from sources other than direct taxation, contend that tbe word “raised” as used in article 8, section 10, of tbe Constitution, means “raised by taxation,” and cites from 36 Words & Phrases, p 79, as follows:
“Words ‘to raise money,’ as applied to municipality, commonly mean to raise by taxation. Dowling v. Board of Assessors of City of Boston, 268 Mass 480, 484 (168 NE 73, 75).”
Appellants also call attention to decisions of this Court in Board of Supervisors of Dickinson County v. Warren, 98 Mich 144; and Sebewaing Industries, Inc., v. Village of Sebewaing, 337 Mich 530.
Board of Supervisors of Dickinson County v. Warren, supra, involved the construction of a statute (How Stat § 483 ) and in bolding that a board of supervisors has no power to borrow money to defray current expenses and charges of tbe county, this Court stated: (pp 146, 147):
“Tbe words ‘raise,’ ‘raised,’ and ‘raising’ occur frequently in our statutes relative to providing tbe necessary funds for public uses, and in that connection they are always associated with tbe subject of taxation. Not only do tbe phrases ‘raised by tax,’ ‘raise annually by taxation,’ ‘all taxes raised,’ and similar clauses, appear times without number, but the word ‘raise,’ without qualifying words, is frequently employed in grants of authority to provide the necessary funds for public use in cases where the intent to prescribe the method in which the power is to be exercised, viz., by taxation, is so clearly obvious that the word may be said to have acquired a clearly defined meaning when used in that connection. We are of opinion, therefore, that when the legislature made special provision for ‘the raising of any money which may be necessary to defray the current expenses and charges of said county,’ it was the intention to except such purposes from the operation of subdivision 7, and provide that the necessary funds for this class of expenses should be raised by taxation. We find further warrant in arriving at this conclusion in the fact that this is the construction which, in practice, this subdivision has received since its adoption in 1859.”
In the Sebewaing Appeal, supra, this Court construed the provision of the general village act providing the council may raise and expend such sums as they deem advisable for repairing, altering or extending the village lighting works, and stated (p 542) :
“The words ‘the council may then raise and expend * * * such sum as it may deem advisable’ make obvious the legislative intent that the sum thereby authorized to be ‘expended’ is a sum which is to be ‘raised,’ and the entire section makes manifest that the word ‘raise,’ as therein used, means the levying of a tax.”
Appellants contend that neither article 8, section 10, nor any other section, of the Constitution places any limitation upon the expenditure of miscellaneous or nontax derived revenues, and, therefore, the legislature had the right to provide for use of said funds for county building and that the legislature so pro vided by PA 1943, No 177, as last amended by PA 1956, No 136, and, also, by PA 1923, No 118, as amended by PA 1957, No 186.
PA 1923, No 118, § la, as amended (OL 1948, § 141.61a, as amended [Stat Ann 1958 Eev § 5.2251 (1)]), provides:
“The board of supervisors without submitting the same to the vote of the electors shall have the right or power to authorize annually the expenditure from any funds on hand not raised by taxation a sum not in excess of 1 mill of the assessed valuation of the county for the purpose of constructing, equipping or making alterations in any of the public buildings in the county if said board of supervisors shall by resolution of a majority of the total membership of said board authorize the same: Provided, That no such moneys shall be expended without the vote of the people if said moneys are to be raised by taxation.”
Sections 1, 2 and 3 of PA 1943, No 177, as amended, provide:
“Sec. 1. The legislative or governing body of any political subdivision is hereby authorized and empowered to create and establish a fund or funds for the purpose of appropriating, providing for, setting-aside and accumulating moneys to be used for acquiring, constructing, extending, altering, repairing or equipping public improvements or public buildings, which said political subdivision may by the provisions of its charter or the general law be authorized to acquire, construct, extend, alter, enlarge, equip or repair.” (CLS 1956, § 141.261 [Stat Ann 1958 Eev §5.2770(1)].)
“Sec. 2. Notwithstanding the provisions of any law or the charter of any city or village, moneys accumulated in said fund shall not be transferred, encumbered or otherwise disposed of, except for the purpose of acquiring, constructing, extending, al tering, repairing or equipping public improvements or public buildings, which a political subdivison may by the provisions of its charter or the general law be authorized to acquire, construct, extend, alter, repair or equip. Funds established and moneys on hand which had been allocated to or appropriated for the making of capital improvements on January 1, 1956, may be transferred to or credited to such reserve fund created under authority of this act and when so transferred or credited shall be governed by the provisions of this act.” (CLS 1956, § 141.262 [Stat Ann 1958 Rev § 5.2770(2)].)
“Sec. 3. The legislative or governing body of any political subdivision may allocate to said fund miscellaneous revenues received and credited to the general fund, including revenues received by said political subdivision under the provisions of Act No 155 of the Public Acts of 1937, as amended, being sections 211.351 to 211.364, inclusive, of the Compiled Laws of 1948, and also revenues received from the sale of lands owned by the political subdivision and which are no longer needed for public purposes, if said revenues are not otherwise pledged or encumbered for other purposes.” (CLS 1956, § 141.263 [Stat Ann 1958 Rev § 5.2770(3)].) '
Some portion of these transferred funds came from surpluses in other tax-raised brackets, but the great bulk of these miscellaneous receipts consisted of the statutory fees paid to the county clerk, treasurer, register of deeds, sheriff, probate and circuit courts, and receipts of other county departments or activities, including children’s center, contagious hospital and juvenile home, all in very substantial amounts.
Ruling that defendants could not use the surplus funds for building purposes, the trial judge stated that, in spite of the fact that the 1957 amendment was passed by our legislature at the request and instigation of Oakland county officials, he would not read into the enactment the interpretation asked for by appellants.
We disagree with the trial court’s conclusion in this regard and hold that the legislature has given to Oakland county’s board of supervisors the right to use the accumulated surplus for building purposes.
The main question, therefore, centers down to this: Did the legislature have the constitutional right to grant this power to the board of supervisors?
In the early case of Attorney General v. Preston (January, 1885), 56 Mich 177, this Court established that the legislative power of the people through their agent, the legislature, is limited only by the Constitution, which is not a grant of power, but a limitation on the exercise of power; and, secondly, that this Court will not declare a statute unconstitutional unless it is plain that it violates some provisions of the Constitution and the constitutionality of the act will be supported by all possible presumptions not clearly inconsistent with the language and the subject matter.
In Huron-Clinton Metropolitan Authority v. Boards of Supervisors of Five Counties, 300 Mich 1, we stated: (1) That the State legislature is the repository of all legislative power subject only to limitations and restrictions imposed by the State or Federal Constitutions, as constitutional provisions are to be regarded as limitations on State legislatures and not a grant of power to them; (2) That in passing upon the constitutionality of State legislation, it is necessary to point out in the Constitution of the State the limitations which have been placed by the people through the Constitution upon the power of the legislature to act, before our Court will declare the enactment unconstitutional; (3) That the advisability or wisdom of statutory enactments, which are not violative of the constitutional pro visions, is a matter for legislative consideration and not for this Court.
Do the words of article 8, section 10, of the State 'Constitution (1908), authorizing the board of supervisors to in any 1 year levy a tax of 1/10 of 1 mill ■for the construction or repair of public buildings, prevent the legislature from enacting that the board, without submitting the same to a vote of the electors, has the right and power to authorize annually the 'expenditure from any funds on hand not raised by taxation a sum not in excess of 1 mill of the assessed valuation of the county for the purpose of constructing public buildings, and that the board is authorized .-and empowered to create and establish a fund for ¡setting aside and accumulating moneys to be used for ■acquiring, constructing, extending, altering and repairing public buildings?
This question has been presented to this Court for the first time. We agree with Judge Dehnke that 'our opinion will have far-reaching results for other counties besides Oakland. We set forth the following paragraph from his opinion:
“The problem is one that has become acute because of the pressure from every side for appropriations to •support numberless good causes out of limited funds, and pressure from other directions to keep tax burdens within reason. But we must reckon also with ■the human tendency which sometimes causes public officials, confident that their own means of information and judgment are superior, to come to look upon legal and constitutional limitations on official power, such as having to ask the voters for specific authorization or approval, as irksome shackles, tending only to impede the efficient administration of public business, which should therefore be ignored so far as possible, and must otherwise be endured with as much patience and forbearance as can be mustered. Nothing said in this opinion should be construed as reflecting on the motive and intentions of defendant hoards. What the case turns on is the question of authority — were the actions complained of within the limits of legal and constitutional powers.”
Numerous decisions have safeguarded the Constitution against those who ignored its provisions on the grounds of necessity and expediency, and among such decisions are 2 which have been decided since the writer of this opinion became a member of this Court 5 years ago, and which we now cite with complete approval. In Michigan Savings & Loan League v. Municipal Finance Commission, 347 Mich 311, it was decided that economic conditions may not be given the effect of modifying the fundamental law of the State; and in Bacon v. Kent-Ottawa Metropolitan Water Authority, 354 Mich 159, it was held that attempts to evade the tax-limitation provisions in the Constitution by subterfuge are universally frowned upon even though the motive for doing so is worthy.
Applying principles from the earliest decision to the latest, we conclude that there is no constitutional inhibition preventing the legislature from allowing the board of supervisors to use the surplus accumulated from what the trial court aptly described as “miscellaneous receipts.” However, moneys cannot be used for building purposes which were raised or accumulated through direct taxation beyond the 1/10 of 1 mill constitutional limitation and we, therefore, order that the board refrain from using any of said funds for the contemplated purpose of building the courthouse.
Over 2 years have elapsed since the Oakland county taxpayers stopped the board of supervisors’ endeavors to construct a very necessary courthouse to meet the executive and legislative needs of the county. Less than 3 months of that time have passed since this question was first brought to this Court and the writing of this opinion.
Judge Dehnke’s observation that few cases have been conducted with greater diligence or honesty by opposing counsel, is shared by this Court. Therefore, in remanding to Judge Dehnke certain modifications of his decree, we do not feel there will be too great a difficulty in effecting our decision, namely: (1) The board had the right to designate a new courthouse site; (2) The board had the right to sell the old courthouse; (3) The board failed to meet statutory requirements in its annexation proceedings; (4) The board had the right to use for building purposes miscellaneous funds as contradistinguished from funds raised by direct taxation beyond the 1/10 of 1 mill limitation.
In carrying forward this decision, if difficulty is. encountered between plaintiff and defendants, such difficulty shall be presented to Judge Dehnke for his final decision and any appeal from his decision will be reconsidered by this Court on a typewritten record, certified to by Judge Dehnke, and upon typewritten briefs by plaintiff and defendants.
Reversed in part and affirmed in part. No costs,, a public question being involved.
Dethmers, C. J., and Carr, and Edwards, JJ., concurred with Kelly, J.
See CL 1948, §§14.28, 14.101 (Stat Ann 1952 Rev §§3.181, 3.211). — Reporter.
PA 1851, No 156, § 11, as amended (CLS 1956, § 46.11 [Stat Ann 1957 Cum Supp § 5.331]).
Section 11. Currently CLS 1956, § 16.11 (Stat Ann 1957 Cum Supp § 5.331). — Repoetee. | [
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Black, J.
Case No. 49,859 presents a controlling question of right of the hoard of supervisors of Mecosta county to proceed under PA 1961, No 146 (CLS 1961, § 281.61 et seq. [Stat Ann 1961 Cum Supp § 11.300 et seq.]), known as the inland lake level act of 1961, “to have determined and established the normal height and level of the water of the Martiny lake project and the hack waters of the Winchester dam (herein all called the Martiny lake project) in the county of Mecosta, Michigan.”
The Winchester dam was constructed in 195-L-1955 by the department of conservation. The cost of land acquisition and construction was supplied exclusively from State and Federal funds. Martiny lake, otherwise referred to as the Martiny lake project, is the result. It is an artificial inland public lake within the act of 1961.
Prior to construction of the dam the upstream watershed included a series of small interconnected natural lakes making up the headwater source of the west branch of the Chippewa river. Then the streams which connected the lakes, and the west branch outlet across which the dam was constructed, if “navigable” at all were “navigable only in a qualified sense.” The reference is to Shepard v. Gates (1883), 50 Mich 495, and Valentine, ex rel. Dudley, v. Berrien Springs Water-Power Co. (1901), 128 Mich 280, 286-290. We shall come to these cases later.
Case No. 50,233 is ancillary to No. 49,859. It consists of a bill filed by certain riparians of Martiny lake, the aim of which is injunctive relief against the conservation department’s announced plan of lowering the normal level of Martiny lake some 18 inches. That action was held in abeyance pending hearing and determination of the statutory proceeding.
The statutory proceeding resulted in a judgment reading as follows:
“It is ordered and adjudged that the water level to be established and maintained for the waters of the Martiny lakes chain and the back waters of the Winchester dam, Mecosta county, Michigan, be and is hereby determined and established at 993.8 feet above mean sea level datum as measured at the aforesaid Winchester dam, and shall be maintained as nearly as it is possible to do so at said level, hereby established as the normal level at all times between May 15 and September 15 of this and every year hereafter; provided however, that the conservation department of the State of Michigan shall have the authority, when it so chooses, to vary said level by lowering the same not to exceed 18 inches after September 15 of this or any ensuing year, provided the normal level as aforesaid is restored prior to May 15 of the next ensuing year.”
The chancery proceeding was disposed of by a decree of dismissal based upon these legal and factual conclusions of the chancellor:
“After careful consideration of all the evidence, arguments, and briefs, it is the opinion of this court that there has been no evidence presented or any reason advanced, based upon the doctrines of prescription, dedication, or estoppel, or any other equitable principle, which would remove this case from the operation of the rule as set out in Drainage Board v. Village of Homer [1957], 351 Mich 73, which states that the owner of the fee and/or flow-age rights surrounding water impounded by a dam may alter the level of such water between the limits of the flowage rights and the natural level of the river or stream. This court is of the opinion that the ruling in the Homer Case covers this case especially when considering the fact that this court has recently determined the level of these waters under the inland lake level act of 1961. (See Heitsch v. Oakland County Drain Commissioner [1956], 346 Mich 381.) In reliance upon said cases, it is the further opinion of this court that the plaintiffs have no equitable right to enjoin the defendants from raising or lowering or otherwise altering the waters of Martiny lakes as described in this case.”
The attorney general has appealed from the judgment entered in the statutory action. The plaintiffs have appealed from the decree of dismissal entered against them in the chancery ease. The two appeals were consolidated and submitted here April 6, 1965. July 14,1965, the parties having promptly responded to certain questions propounded by the Court, an order of remand for further proof and a supplemental opinion of the statutory action was entered. That order has been duly executed. Both appeals were resubmitted January 10, 1968.
1. The Statutory Proceeding (No. 49,859).
The decisive question here is whether the legislature intended, by presently quoted section 13 of the act of 1961, that the well-known and regularly employed power of inland lake level determination, provided by the successive statutes which section 26 of the act of 1961 expressly repealed, which power is now provided by the act of 1961, should no longer apply to an artificial inland public lake such as has resulted from the construction and maintenance of Winchester dam. The point involves more than the rights of littoral proprietors, for the great desideratum of the act of 1961 (also its predecessor, the act of 1939, No 194 as amended by PA 1954, No 121) was and is that of determination and maintenance of inland lake levels for the public welfare and benefit.
This may be seen upon precise comparison of the factual views of the present contenders. That the 18-inch drawdown of Martiny lake, as proposed by the department of conservation, would if accomplished impair the public enjoyment and use of Martiny lake is tacitly conceded. The area of the lake would be reduced sizably, wide subaqueous portions thereof would be exposed and public as well as private access to the lake would be rendered more difficult. On the other hand, it is established that the drawdown would further substantially the department’s wildfowl nesting and feeding program and its fish propagation plans.
Thus it readily appears that the board of supervisors and circuit court, with the department of conservation holding contra, view the general recreational worth to the public of Martiny’s present impound as being entitled to superior consideration within the aim of the act of 1961 as declared in the title and third section thereof, also within the purpose of the permit for construction of "Winchester dam (quoted post) which the board of supervisors issued to the conservation department in 1934.
The issue of legislative intent arose at the outset when the attorney general moved to dismiss this proceeding. His motion was grounded upon these allegations:
“PA 1961, No 146, is not applicable to dams in navigable streams and the waters impounded thereby.
“The county board of supervisors has no power to cause a level of waters impounded by a dam to be determined and maintained when such dam and rights to maintain the resulting impoundments are owned by the State of Michigan, as is the case in the Martiny lake project and the backwaters of the Winchester dam.”
Assigned in support of these positions is section 13 of the act of 1961, the critical phrasing of which is emphasized by marginal quotation. The corresponding section of the equivalent act of 1939 (PA 1939, No 194) read this way:
“Sec. 6. Nothing herein contained shall be construed to alter, limit, abridge or amend the provisions of law applicable to the location, construction and maintenance of dams in navigable streams, as provided in sections 1143 and 1144 of the compiled laws of 1929, as amended.”
Section 16 of still another enactment of substantially the same statute, that is, PA 1945, No 276 (also repealed by the act of 1961), was identical. With respect to all three of these successive statutes (acts of 1939, 1945 and 1961) we conclude that the legislature must have employed the term “navigable streams” in the sense intended by sections 21 and 22 of PA 1851, No 156, and also by the respective Constitutions of 1850 (art 18, § 4), 1908 (art 8, § 14) and 1963 (art 7, § 12), according to the interpretation placed thereon by Justices Cooley, Campbell and Craves in Shepard v. Gates, supra. That view leaves the original artificial inland lake level jurisdiction of the circuit court intact and avoids an inevitably consequential statewide question: whether any function of the judiciary, as regards the deter- ruination or maintenance of artificial inland lake levels, remains, save only in that rare instance where the impound in question is the result of damming of some brook or meandering small creek. Indeed, should this Court pursue to the ultimate the argument of the attorney general, no such function would remain at all. See discussion, post, of certain Federal decisions the attorney general cites in support of his position.
Thoughtful examination of the common-law decisions gathered in Collins v. Gerhardt (1926), 237 Mich 38, and Attorney General, ex rel. Director of Conservation, v. Taggart (1943), 306 Mich 432, suggests that it borders the senseless to attribute to the legislature an intent — by sections 5 and 10 of the act of 1961 — to re-enact the long-since matured and regularly exercised power of boards of supervisors (to petition the circuit court from time to time for determination of artificial inland lake levels) and then —by section 13 of the act — to strip that power down to the rare instance mentioned above. To this we need but add that the straining of such an intent, from the act of 1961, would automatically eliminate the corresponding power of the conservation department which sections 8 and 10 of the act of 1961 have provided. We are not ready to go that far or to say that the legislative purpose on May 31, 1961, was practically to gut this comprehensive inland lake level statute by including said section 13 therein.
The “qualified sense” to which we have referred was determined and applied, in Shepard v. Gates, supra, to the headwaters of the east branch of the Au Gres river in Iosco county. There the Court ruled, as against objection that the board of super visors had not authorized construction of the bridge defendant allegedly destroyed (p 497):
“The objection that no authority had been given by the board of supervisors to build the bridge would have required attention if it did not appear that this branch of the Au Gres was only used for floating logs, and does not appear to have been adapted in its natural condition to any valuable boat or vessel navigation. The clause in the Constitution providing that ‘no navigable stream in this State shall be either bridged or dammed without authority from the board of supervisors of the proper county, under the provisions of law’ has been understood as adopted in furtherance of the policy of the Ordinance of 1787, which stipulated that ‘the navigable waters leading into the Mississippi and St¡ Lawrence, and the carrying places between the same, shall be common highways, and forever free,’ et cetera. Ordinance of 1787, art 4. That has been considered as referring to navigation in its proper sense by some sort of boats used as means of carriage.”
The foregoing rule of Shepard v. Gates, supra, was applied in upholding the validity of a franchise issued pursuant to- sections 21 and 22 of the mentioned act of 1851 for the damming of the St. Joseph river at Berrien Springs in Berrien county. Valentine, ex rel. Dudley, v. Berrien Springs Water-Power Co. (1901), 128 Mich 280, 286-289. And in Burroughs v. Whitwam (1886), 59 Mich 279, the Court refused for Shepard’s reason to apply the Ordinance of 1787 to the “Thread River” in Genesee county (p 283) :
“The Ordinance of 1787, in providing that the ‘navigable waters leading into the Mississippi and St. Lawrence, and the carrying places between them, shall be common highways, and forever free,’ et cetera, did not by its terms, or in the spirit of its enactment, dignify every little rill or brook whose waters finally reached these great rivers into a navigable stream. It was intended to and did apply only to such streams as were then common highways for canoes or bateaus in the commerce between the northwestern wilderness and the settled portions of the United States and foreign countries, and as to such rivers not then in use as would by law be embraced in the definition of ‘navigable waters.’ ”
That there is a recognized distinction between the status of small streams which by the common law belong to the public for the limited purposes of flotation and fishing, and that of larger streams which are navigable “in the more enlarged meaning of the term,” admits now of no doubt. In the trespass action of Collins v. Gerhardt, supra, presenting for decision the claimed public right of wading and fishing over private property in Lake county’s Pine river (the result of which was two separate opinions signed by the same five Justices with three Justices dissenting), the close question of common-law “navigability” was held to be a question of fact resolvable by verdict of a jury, just as in that bellwether of floatability, Moore v. Sanborne (1852), 2 Mich 519. To quote Justice Fellows, for five members of the Court in the Collins Case (p 50):
“My views on the subject here involved are, however, pronounced, and I desire to deal with certain phases of it at some length. I shall not take time or space in discussing the question of whether Pine river is a navigable stream. That question was submitted to the jury in a charge not complained of, which correctly gave the rule in force in this State. The jury found it was a navigable stream and there was an abundance of testimony taking that question to the jury.”
The distinction was highlighted in Attorney General, ex rel. Director of Conservation, v. Taggart (1943), 306 Mich 432, 441, 442:
“Many decisions following the Sanborne Case clearly distinguished between streams navigable for boats and those floatable for logs and, with respect to the latter, gave the public an easement of passage for the purpose of floatage and only such other rights as are incidental thereto. Middleton v. Flat River Booming Co., 27 Mich 533; Attorney General, ex rel. Muskegon Booming Co., v. Evart Booming Co., 34 Mich 462; Koopman v. Blodgett, 70 Mich 610 (14 Am St Rep 527); City of Grand Rapids v. Powers, 89 Mich 94 (14 LRA 498, 28 Am St Rep 276); Giddings v. Rogalewski, 192 Mich 319; Winans v. Willetts, 197 Mich 512. While the Sanborne Case only disposed of the right of floatage and did not decide that a float-able stream has the status of waters navigable for all purposes, the public character of water was held to be determined by reference to the public necessity for its use. It is this broad underlying principle rather than the narrow rule of the Sanborne Case which was in effect adopted by the court in Collins v. Gerhardt, supra, when it held that floatability determined the public character of a stream and affixed therein the public right of fishing.”
The attorney general however would cast this distinction aside. Eoaming past section 13’s intent and purpose and into the great yonder of the Federal system, he cites United States v. Rio Grande Dam & Irrigation Co. (1898), 174 US 690 (19 S Ct 770, 43 L Ed 1136) and Federal Power Commission v. Union Electric Co. (1964), 381 US 90 (85 S Ct 1253, 14 L Ed 2d 239), as authority for urging that this Court should extend the State’s “jurisdiction” to all of our nonnavigable streams, according to the analogy made between the Bio Grande and the Hudson in the first of the two cited cases (174 US 690, 709). That the reader may comprehend fully the extent of this argument, this complete paragraph of the attorney general’s brief is quoted:
“By transferring the analogy from the Hudson river to the Saginaw river in our State, it can be easily understood that if the State of Michigan intends to protect for all time the navigable capacity as well as the many uses which the public may make of the Saginaw river, by necessity, it should exercise control over the entire Saginaw valley system including its upper and remote regions among which is the south branch of the Chippewa river. The result is that all of the tributaries that contribute to the total capacity and the flow of the Saginaw river, in a sense, should be considered in fact and in law the navigable waters of the State. It is only in this manner that the State could effectively exercise its trusteeship and its surveillance over these waters.”
The argument is interesting but inapposite. We are not concerned today with any question of undue appropriation of water by some upstream riparian as in the Rio Grande Case, nor with the application of a Federal statute to an asserted Federal right as in the Federal Power Case. Our sole task is that of ascertainment of the hitherto considered question of legislative purpose.
Here we ascertain that purpose by applying a mature rule of statutory construction, the one which in so many words says that a word or phrase, when employed again and again in amendments, codifications, or re-enactments of related and longstanding statutes without cue or clue that such word or phrase be viewed differently than when such word or phrase was applied in earlier decisions of unanimously settled import, will be taken again by the Court as theretofore construed and applied. See 50 Am Jur, Statutes, § 442, Legislative Adoption of Judicial Interpretation, pp 461, 462. As the legislature proceeds from time to time with the process of amending, codifying, or re-enacting maturely purposed statutes, that body is entitled to depend trustfully upon the word of this Court whenever that word appears as precisely and unanimously as it did in the Shepard Case.
Whether in its natural state this uppermost reach of the west branch of the Chippewa did or did not, prior to the present damming, come within Moore v. Sanborne’s common-law rule, one feature stands out from this record. It is that the Martiny impoundment was intended to be a public lake to the fullest extent of the term within section 1(b) of the act of 1939 (No 194), now within section 2(c) of the act of 1961. The impound was authorized, understood, and publicly proclaimed in the first place not for game and fish propagation purposes but for general public use. The statutorily authorized permit itself, issued by the board of supervisors for construction of this Winchester dam, is demonstrative. We are loath to impute to the legislature an intent of authorizing, without judicial proceedings conforming with the act of 1961, impairment in any degree of what was contemplated thereby. The permit reads:
“Whereas, there is a project being promulgated for the building of a dam across the Chippewa river where it crosses section 5, Sheridan township, Mecosta county at the place formerly known as Winchester, which said dam would raise the water of Chippewa river and the water level of 16 lakes large and small, from 6 to 9 feet, and
“Whereas, between 2,500 and 3,000 acres of water would thus be created, greatly enlarging the resort facilities of Mecosta and increasing the valuation of Sheridan, Martiny, and Chippewa township by creating additional resort facilities, and would greatly add to the hunting, fishing and trapping territory in the above township and create a large expanse of public water, and
“Whereas, the department of conservation of the State of Michigan desires the consent of the board of supervisors to build said dam across said Chippewa river at the point indicated, and this board believes that such project is not only a worthy project but is one that will bring much benefit to the public at large and to the county of Mecosta.
“Therefore, be it resolved, that the department of conservation be and hereby is authorized by the board of supervisors of Mecosta county to construct such a dam across said Chippewa river at the place formerly known as Winchester, in section 5, Sheridan 'township, Mecosta county, Michigan, as in its discretion it shall deem necessary and adequate to accomplish the project of raising the level of said river and lakes to the level desired by said department.”
To conclude disposition of No. 49,859:
Since section 13’s claimed application in bar of this proceeding depends upon a factual question, we might well rest our determination of affirmance upon Judge Yan Domelen’s amply supported finding that Winchester dam did not impound the waters of a “floatable stream” (the term employed in the Taggart Case, supra), citing only the judge’s finding and Justice Fellows’ question-of-faet opinion of Collins v. Gerhardt. For Judge Yan Domelen’s factual ascertainments and ultimate conclusion we suggest reading the appendix hereto. His ascertainments and conclusions are, however, employed here only as firmly establishing that this portion of the west branch never could have been considered as “adapted in its natural condition to any valuable boat or vessel navigation.” (Quotation from Shepard, supra, at 497).
Hence, (a) having traced the purposeful use to date of the term “navigable stream” [or “streams”] in the successive statutes and constitutional provisions considered above, and (b) having determined that on each occasion of statutory or constitutional employment thereof the designation was advisedly used in the “more enlarged meaning of the term,” it is ruled that section 13’s restriction applies only to “the determination, establishment or maintenance” of the level of waters impounded by dams of streams which, according to submitted and received proof of their natural condition, were navigable by Shepard’s standard.
Moreover, by resting decision upon the applicability of Shepard’s rule to section 13, it is believed that this opinion will be of material assistance to the legislature when and if that body undertakes consideration of the conservation department’s heralded intention of seeking an amendment of section 13 — “to avoid confusion.”
The judgment of the circuit court in No. 49,859 is affirmed. No costs.
2. The Moorman Chancery Case (No. 50,233).
The controlling fact of No. 50,233 is that the conservation department duly and precedently acquired for the State, by purchase, gift, or condemnation, title in fee to the site of the Winchester dam and to approximately two-thirds of all of the riparian land affected by the planned impound, plus all outstanding flowage rights as were legally required to establish and maintain the impound up to a maximal water-head of 995.5 feet (above sea level). Such of the riparians as retained title in fee executed easements of flowage in due form, granting to the State “the full and free right and authority forever to flow, flood, and impound water to a height not to exceed 995 feet and 6 inches above sea level at the dam,” and granting to the State “the further right and authority to permit the public to use the aforesaid waters of the flooded area to the land described herein for any public purpose including fishing, boating, navigation, hunting and trapping.” There is no ambiguity in these words. Nothing was left to qualificationary understanding or misunderstanding. Specific rights in property passed by the instruments, leaving no equity for cognizant consideration by equity.
When these riparian owners executed and delivered the quoted grants of easement, they did not lose thereby all of their riparian rights. They did part with the right to object in equity either to the flooding of their property, up to the stipulated waterhead level, or to the lowering of such level. The applicable rule of property was settled in this State by Drainage Board v. Village of Homer, 351 Mich 73, following Goodrich v. McMillan, 217 Mich 630 (26 ALR 801). We perceive no legal or equitable reason for departure in No. 50,233 from that rule and hold that the Moorman bill was properly dismissed.
The decree of the circuit court in No. 50,233 is affirmed. No costs.
Dethmers, C. J., and Kelly, O’Hara, and T. E. Brennan, JJ., concurred with Black, J.
APPENDIX
(Circuit court opinion on remand, No. 49,859, exclusive of preliminary paragraphs, filed November 10, 1966.)
“This court has read all of the exhibits offered by either party. The testimony and the exhibits have fairly exhausted the information available upon this question considering that the answer involves events which few living persons can now recall. Prom the testimony and exhibits, it is the finding of this court that in its natural state the west branch of the Chippewa river between Tubbs lake and the present site of Winchester dam was not a navigable stream within the ordinary connotation of that term. Small rowboats drawing several inches of water were able to proceed in that area if the occupants •were willing to drag them over shallows, bars, and other obstructions or by skillful use of a pole and shifting of weight a small boat may have been propelled over the distance at high water. However, this area of river was not navigable in the sense that it would ordinarily be used for travel even during high water. The use of boats in this stretch was limited to hunters, trappers, and spear fishermen who were prepared to wade and pull their boats over the shallows. This conclusion is confirmed by the testimony of the witnesses who traveled this portion of the stream as fishermen and trappers.
“This leaves the question of whether* this portion of the stream was navigable in the sense that it was capable of floating logs in accordance with the tests set out in the case law. Moore v. Sanborne, 2 Mich 519; Thunder Bay Booming Co. v. Speechly, 31 Mich 335; Collins v. Gerhardt, 237 Mich 38; Attorney General, ex rel. Director of Conservation, v. Taggart, 306 Mich 132.
“If the floating of logs in this portion of the Chippewa were possible, it would be only during periods of high water. From the evidence, this court finds that although it would be possible to float a log in this area, it could not be done without considerable difficulty and this court is convinced that the lumbermen did not float logs on this stretch without the use of dams to create an artificial head of water to wash the logs downstream. This conclusion is supported by the record of the proceedings of the board of supervisors for Mecosta county dated January 8, 1881 (exhibits 12-A and 12-B) wherein the said board sought to inquire into the activities of Hudson and "Williams whose flooding of logs by use of dams damaged the bridges in the townships of Fork and Sheridan on the Chippewa river. The testimony of Clarissa Notts, age 95, taken at her home on October 26, 1965 (see transcript page 26), and the testimony of Charles London, age 79, taken August 22, 1966, confirm the fact that dams were used, to flood the logs down this section of the Chippewa. Examination of exhibits 20-A, B, and C which are discharge measurements of the west branch of the Chippewa and exhibit 19, which contains profiles of the stream, support the determination that this area of the river, in its natural state, including periods of flood and high water, was not used to float logs. This court has compared the width and flowage figures of the south branch of the Pere Marquette river as set out in Attorney General, ex rel. Director of Conservation, v. Taggart, 306 Mich 132 (see page 131) with the width and flow figures in this case as set out in exhibits 19, 20-A, B and C during the month of June for the years 1950 through 1953 which appear to he average. The Pere Marquette had a flow of 41.62 cubic feet per second. The Chippewa had an average flow of 14.8 cubic feet per second. The average width of the Pere Marquette during June was about 31 feet. The width of the Chippewa during March-May period would average that or more. (See cross-sections, Exhibit 19.) This court is well acquainted with the stretch of river in the Taggart Case and has made a visual comparison of the flow with that of the ChippeAva immediately beIoav Winchester dam. The comparison confirms the above figures that indicate a flow in the said Pere Marquette of from 2 to 3 times greater than the Chippewa. In the Taggart Case on pages 434 to 439, the court sets out a finding of facts that the only navigability of that stream in its natural state Avould be during periods of high Avater and even these periods were fraught with handicaps so that dams were built to facilitate floatage for most of the running of logs. The court further found that the Taggart Case Avas ‘close to the border line’ and that the stream had the capacity for floatage only during spring floods or following heavy rains and then was limited to loose logs and ties of small or medium diameter. Although each case involving the question is to be determined upon the condition and capacity of the stream in question, it is valuable to compare capacity with other streams when direct evidence is limited. The comparison above set out leaves this section of the Chippewa below the capacity to float logs even in periods of high water.
“Therefore, after careful consideration of the testimony and the exhibits and application of laAV thereto, this court finds that the west branch of the Chippewa river between Tubbs lake and the present site of Winchester dam in its natural state is not a navigable stream within the exception made by PA 1961, No 146, § 13,”
We shall refer to it hereafter as “the act of 1961.”
“See. 13. Nothing herein contained shall be construed to alter, limit, abridge or amend the provisions of law applicable to the location, construction and maintenance of dams in navigable streams or provide for the determination, establishment or maintenance of the level of waters impounded by such dams’’
Sections 21 and 22 of the act of 1851 ultimately beeame sections 1143 and 1144 of the compiled laws of 1929. The official citation now is CL 1948, §§46.21, 46.22. CL 1948, § 46.22 has been amended by PA 1951, No 36.
The act of 1851 was entitled:
“An aet to define the powers and duties of the boards of supervisors of the several counties, and to confer upon them certain local, administrative and legislative powers.”
Justine Sherwood, elected to the Court shortly before submission of Shepard v. Gates on April 12, 1883, did not take his seat until April 19, 1883. He became the 4th member of the Court in the place of Justice Marston, resigned. 50 Mich ii, iii.
The attorney general is even more determined than this. He would extend the statutory term “navigable” to feeder streams, right up to the source at bubbling spring or seep.
“Flat river is a stream valuable for floatage, but not for navigation in the more enlarged meaning of the term.” (Middleton v. Flat River Booming Co. [1873], 27 Mich 533, 535).
“It is admitted that St. Joseph river, above Berrien Springs, is navigable only in a qualified sense.” (Valentine, ex rel. Dudley, v. Berrien Springs Water-Power Co. [1901], 128 Mich 280, 289).
In this case tlie Supreme Court accepted a finding of faet “that the Rio Grande river was not navigable within the limits of the Territory of New Mexico/’ basing its ruling upon a number of authorities with this conclusion (pp 698, 699) :
“And again [citing The Montello (1874), 87 US (20 Wall) 430, 442 (22 L Ed 391)]: ‘It is not, however, as Chief Justice Shaw said. [Rowe v. Granite Bridge Corporation (1838), 38 Mass 344, 347]: “every small ereek in which a fishing skiff or gunning canoe can be made to float at high water which is deemed navigable, but, in order to give it the character of a navigable stream, it must be generally and commonly useful to some purpose of trade or agriculture.” ’ ”
“The only question is whether Congress has required a license for a water power project utilizing the headwaters [of 'a non-navigable tributary’] of a navigable river to generate energy for an interstate power system. We think an affirmative answer is required by both the language and purposes of the act.” Federal Power Commission v. Union Electric Co., supra, 95.
In a recent issue of the conservation department’s magazine Michigan Conservation (January-February 1968, volume 37, No 1, pp 31, 32), the department’s declared “1968 legislative objectives” ineltide this:
“(17) Amend lake level act (PA 1961, No 146). Clarifying amendments are proposed to sections 6, 10, 12, 13, and 25 to avoid confusion.” | [
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Dethmers, C. J.
This is Par shay revisited. It affords this writer the opportunity of acknowledging what he now considers to have been his error in joining in the opinion he did in that case. People v. Parshay (1967), 379 Mich 7.
Appellant states the question involved in this case to be:
“Where the trial court advised respondent of his right to assistance of counsel, but failed to ask respondent whether he wished to retain his own attorney, or, if indigent, appoint an attorney for him, has respondent been denied his rig’ht to assistance of counsel in his defense?”
Defendant was charged with armed robbery. Upon arraignment on the information in the superior court of Grand Rapids, a considerable colloquy occurred between the court and defendant who was at the time without counsel. A portion thereof was as follows:
“The Court: James Bryan Scott, at this time, the charge in the information which has been filed against you by the people of the State of Michigan will be read to you.
“The Respondent:1 I would rather waive it now.
“The Court: In that there is no attorney here, we will have it read, and then there will be no question about your understanding the charge.
“(Mr. Educato thereupon read the information to the respondent. * * *)
“The Court: James Bryan Scott, do you understand this charge placed against you by the people of the State of Michigan?
“The Respondent: Yes, sir.
“The Court: You understand, Mr. Scott, that this is a serious charge placed against you by the people of this State?
“The Respondent: Yes, sir.
“The Court: And I want to advise you as I just did in my chambers that if you plead guilty to this offense, or if you are found guilty by a jury of this offense, that it is mandatory that I sentence you to Jackson Prison.
“The Respondent: Yes.
“The Court: You do understand that?
“The Respondent: Yes.
“The Court: You also know that the sentence, as I explained to you in my chambers, carries up to life imprisonment.
“The Respondent: Yes.
“The Court: You know that?
“The Respondent: Yes.
“The Court: In my chambers, I explained to you I would in no way indicate to you what the sentence in this cause was going to be, is that correct?
“The Respondent: Yes, sir.
“The Court: And, Mr. Scott, knowing what the charge is here, I further want to explain to you that you are entitled to a jury trial to have it determined whether you are guilty or not guilty of this offense. Do you understand that?
“The Respondent: Yes.
“The Court: I further want to advise you, James Scott, that you are entitled to he represented by an attorney in this matter. If you don’t have the money to employ an attorney, if you so request, I will appoint an attorney to represent you. Do you know that?
“The Respondent: Yes, sir.
“The Court: Now, James Scott, knowing what this charge is, knowing the seriousness of this offense, knowing what your rights are, are you prepared at this time to enter a plea of guilty or not guilty?
“The Respondent: Yes, sir.
“The Court: And what is your plea?
“TM Respondent: Gruilty,”
There followed a detailed statement by defendant to the court of how he had committed the crime. Thereafter the plea of “guilty” was accepted. Later the court imposed a sentence of from 15 to 25 years in State prison at Jackson.
In his brief appellant states that:
“The record further shows that respondent at the time of the arraignment on December 10, 1962, was 27 years of age and had a prior criminal record.”
He had been released from prison a few months before commission of this offense.
About 3-1/2 years after sentence defendant filed a motion to set aside the plea of guilty and for a new trial. The trial court denied the motion. The Court of Appeals denied an application for delayed appeal. On leave granted defendant is here on appeal, and is represented by court-appointed counsel.
I was and now am in accord with what was written by Mr. Justice O’Haba in People v. Hobdy (1968), 380 Mich 686, and in People v. Bunn (1968), 380 Mich 693, on the subject of a knowing and intelligent waiver of counsel and the absence of any requirement that it be express. But for the relationship with one of those connected with the prosecutions in People v. Winegar (1968), 380 Mich 719, and People v. Hoy (1968), 380 Mich 597, which necessitated a disqualification from participation in those two cases, this writer would have concurred in opinions for confirming convictions therein. Controlling opinions in the above cases cited in this paragraph call for affirmance here.
When, as here, a 27-year-old accused, with a criminal record and experience in criminal proceedings and no showing of mental deficiency or illiteracy, is told by the court that he is entitled to a jury trial and to be represented by an attorney and that, if financially unable to employ counsel, at Ms request the court will appoint an attorney for him, and he then says he understands this but that, knowing what his rights are, he wishes to enter a plea and thereupon does enter a plea of guilty, no exercise in semantics, however exquisite, can lead us to conclude that this was not a knowing and intelligent waiver of counsel. That is all that the cases, Federal or State, now require. Express waiver is not necessary.
Conviction affirmed.
Kelly, Black, O’Hara, Adams, and T. E. Brennan, JJ., concurred with Dethmers, C. J.
Defendant is called respondent in the transcript. CL 1948, § 612.1 (Stat Ann § 27.653) and its predecessors for upwards of 50 years, and, now, GCR 1963, 201.1 and 785.1, require that parties to an action be designated as plaintiff or defendant.—Reporter.
CLS 1961, § 750.529 (Stat Ann 1968 Cum Supp § 28.797).—Re-porter, | [
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Per Curiam.
July 15,1970 plaintiffs sought mandamus in the Court of Appeals to force submission to the electors of an allegedly initiated “Amendment to the Constitution” which, later, came to be known publicly as “Proposal C.” The writ was ultimately granted. For details, see the opinion of Division 2, released September 2 (26 Mich App 403). Upon strength of that opinion and our order denying leave entered 12 days later (384. Mich 751), the amendment proposed — and now in question — was submitted to the electors November 3 and approved by a strong majority.
The ensuing opinion should presay a cautionary note. It is that initiatory § 2 of Article 12 of the Constitution of 1963 follows generally, yet differs in important respects from the corresponding sections of the Constitution of 1908 as those sections stood when certain of our past decisions were considered and released. Compare said § 2 with §§ 2 and 3 of Article 17 of the former Constitution; looking at the latter both in their original aspects and as amended in 1941. "We shall consider this earmark upon present reference to the City of Jackson case (1947), 316 Mich 694.
The acceptable and visibly critical question we are called upon to decide is posed by the Attorney General:
“II. Is a petition proposing an amendment to an existing section of the Constitution sufficient when that section as presently in effect [sic] is not inserted under the heading ‘Provisions of Existing Constitution Altered or Abrogated by Such Proposal if Adopted’ ?”
Division 2 responded in the affirmative. The Attorney General contends for a negative answer. We agree with him. The final question, then, is what now to do; the proposed amendment having been approved and apparently adopted. That question will come to discussion and determination in the division designated “Second,” below.
First: Section 2 of Article 12 of the Constitution requires that an initiatory amendment shall be published (“in full as provided by law”) with “existing provisions of the Constitution which would be altered or abrogated thereby.” The same section also requires that the initiatory petition shall be “in the form, and shall be signed and circulated” as prescribed by law.
The constitutionally beckoned legislation appears in § 482 of the Michigan election law of 1954, as minor-amended in 1965 (MCLA § 168.482 [Stat Ann 1970 Cum Supp § 6.1482]). Section 482 provides, pertinently:
“ * * * If the proposal would alter or abrogate any existing provision of the constitution, the petition should so state and the provisions to be altered or abrogated shall be inserted, preceded by the words:
“ ‘Provisions of existing constitution altered or abrogated by such proposal if adopted.’ ”
The now unmalleable fact of political action is that this initiatory petition did not set forth any provision or provisions of the existing Constitution which would be “altered or abrogated by such proposal if adopted.” Although expressly initiating thé proposal as an amendment of § 2 of Article 8, the petition did not under the required heading set forth “existing” § 2 of Article 8. Such omission is the crus of the Attorney General’s stated question II, above.
Had there been time for decisive judicial action during that critical 8 days of September which ensued upon receipt of briefs for and against the Attorney General’s emergent application for leave to review Division 2’s September 2 decision, the stated omission doubtless would have arrested the initiation and enjoined submission of the mentioned proposal. There was no such time, however, hence our present effort to review and decide that which, hopefully, will result in better timing of appeals to the judicial process for determination of questions of statewide importance that are justiciable and determinable in time for election day. In a word, a word we direct particularly to issues arising from initiated or legislatively proposed constitutional amendments, this petition for mandamus might better have been July-filed in this Court, GCR 1963, 714.1(1) notwithstanding. See the independently supreme authority provided by § 4 of the judicial article.
There is no unstilted way to avoid conclusion that the amendment initiated by these plaintiffs will, if given constitutional effect, both alter and amend § 2 of Article 8 of the Constitution of 1963. The initiatory petitions were therefore insufficient— technically at least — for want of specific compliance with the constitutional complement, § 482.
Second: The electors have firmly approved this initiated amendment of § 2 of Article 8. That they have done in the face of omitted specific performance of a constitutionally authorized legislative mandate that initiators shall set forth in their petitions, for the informative benefit of petition-signers, the very constitutional provision or provisions such initiators desire to alter or amend. What is the result? We think the answer appears in the first sentence of the final paragraph of § 2 of Article 12 (quoted below), viewing it as we should according to the established rules of constitutional construction and the Secretary of State’s salutary corrective action which preceded the November 3 election.
Let us first compare what was, in the initiative portion of the former Constitution, with what now is. Section 2 of Article 17 of the 1908 Constitution read:
“Any constitutional amendment initiated by the people as herein provided, shall take effect and become a part of the constitution if the same shall be approved by a majority of the electors voting thereon and not otherwise.” (Emphasis added.)
The 1941 amendment of that same § 2 read:
“Any constitutional amendment initiated by the people as herein provided, shall take effect and become a part of the constitution if the same shall be approved by the number of qualified electors required in section 1 hereof for the approval of amendments proposed by the legislature, and not otherwise.” (Emphasis added.)
Present § 2 of Article 12 proceeds:
“If the proposed amendment is approved by a majority of the electors voting on the question, it shall become part of the constitution, and shall abrogate or amend existing provisions of the constitution at the end of 45 days after the date of the election at which it was approved.” (Emphasis added.)
Reading these successive provisions with dne care, one after the other, it is clear from the words employed and understood in 1961-1962 that some less rigid initiatory procedure was written, for “the common understanding.” Formerly an amendment had to be initiated “as herein provided.” Formerly, if thus initiated, it would become a part of the constitution should it be approved by the designated majority, but “not otherwise.” In 1963, however, the express requisite of initiation “as herein provided” was eliminated. So was the “not otherwise” stricture.
The due and applicable rule of construction is not any one of the many by which we determine legislative intent. It is instead a duty to ascertain “the common understanding”; a duty to ascertain “that meaning which it [the provision in question] would naturally convey to the popular mind”; a duty to apply that interpretation “which reasonable minds, the great mass of the people themselves, would give it.”
In one of the opinions of Lockwood v. Commissioner of Revenue (1959), 357 Mich 517, 567-570, some of these dovetailing rules of constitutional construction were quoted from the writings of great men of our legal past. Here are some of them. The first was written by Mr. Justice Story, the next by Mr. Justice Campbell, and the last by Mr. Justice Cooley. (The Cooley quotation is taken from May v. Topping [1909], 65 W Va 656, 660 [64 SE 848]):
“ ‘Constitutions are not designed for metaphysical or logical subtleties, for niceties of expression, for critical propriety, for elaborate shades of meaning, or for the exercise of philosophical acuteness or judicial research. They are instruments of a practical nature, founded on the common business of human life, adapted to common wants, designed for common use, and fitted for common understandings. The people make them, the people adopt them, the people must be supposed to read them, with the help of common sense, and cannot be presumed to admit in them any recondite meaning or any extraordinary gloss.’ (1 Story, Constitution [5th ed], § 451, p 345.)”
“ ‘The cardinal rule of construction, concerning language, is to apply to it that meaning which it would naturally convey to the popular mind, in all cases where the propriety of such construction is not negatived by some settled rule of law. In all instruments which are submitted for confirmation to the people themselves, and which derive all their validity from a popular vote, such a construction is peculiarly necessary; for otherwise they would be defrauded of the right to frame their own government according to their own will. (People v. Dean [1866], 14 Mich 406, 417, 418).’ ”
“ ‘A Constitution is made for the people and by the people. The interpretation that should be given it is that which reasonable minds, the great mass of the people themselves, would give it. “For as the Constitution does not derive its force from the con vention which framed, hut from the people who ratified it, the intent to be arrived at is that of the people, and it is not to be supposed that they have looked for any dark or abstruse meaning in the words employed, but rather that they have accepted them in the sense most obvious to the common understanding, and ratified the instrument in the belief that that was the sense designed to be conveyed.” (Cooley’s Const Lim 81).’ ”
Now let us ascertain what common understanding, what meaning naturally conveyed to the popular mind, what interpretation the great mass of the people themselves would draw reasonably from the quoted simple English of the final paragraph of § 2 of Article 12. Is it not, and was it not when the Constitution of 1963 was approved and adopted, that if an actually initiated and submitted amendment should be “approved by a majority of the electors voting on the question” (as indeed here), then that amendment “shall” become a part of the Constitution?
Our answer is “Yes.” Hence, this initiated amendment having been approved by a majority of the electors, the result is that § 2 of Article 8 has been amended so that, as of December 19 last, it has read as follows:
“Sec. 2. The legislature shall maintain and support a system of free public elementary and secondary schools as defined by law. Every school district shall provide for the education of its pupils without discrimination as to religion, creed, race, color or national origin.
“No public monies or property shall be appropriated or paid or any public credit utilized, by the legislature or any other political subdivision or agency of the state directly or indirectly to aid or maintain any private, denominational or other nonpublic, pre-elementary, elementary, or secondary school. No payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property shall be provided, directly or indirectly, to support the attendance of any student or the employment of any person at any such nonpublic school or at any location, or institution where instruction is offered in whole or in part to such nonpublic school students. The legislature may provide for the transportation of students to and from any school.”
A thought of constitutional substance rather than form should be inserted here. It is that the constitutional purpose of the “alter or abrogate” requirement of publication, set forth as it is in the second paragraph of § 2 of Article 12, is to assure as near as law can provide that, before and particularly on election day, all voters are fully informed of the effect an initiated proposal will have upon an existing constitutional provision (or provisions) should that proposal receive electoral approval. The Secretary of State satisfied that constitutional purpose when he saw to it that his published notice listed existing § 2 of Article 8 as liable to alteration or amendment.
Comparing the above purpose with the salient requirement of the statute (§ 482), we find that the latter was intended to inform the petition-signer, should he sign, of that same effect. Both methods of dissemination of necessary information to the public are wholesome and desirable, yet the one that counts in controlling substance over the more technical other is that which the elector himself— not the petition-signer — receives by the separate action of the Secretary of State. Here the buttonholed petition-signers were not apprised pursuant to § 482 of such effect-, at least by the petition sheets themselves. But they, along with the far greater throngs of electors on election day, were directly notified — if they would but read — of that same effect.
The careful reader of City of Jackson v. Commissioner of Revenue (1947), 316 Mich 694, 716-718 will note that the Court applied to its decision that which was urged upon it in several of the briefs of the many counsel participating, namely, the “election-cures-error” doctrine. On page 716 the Court opened its discussion by saying:
“We are not here deciding a case where there is a fatal defect in the petitions, as a result of which the proposition should be withheld from submission to the voters. Such were the situations in the Scott and Leininger Cases, supra [202 Mich 629, and 316 Mich 644]. Here we have a situation where we find there were no such fatal defects, but are asked to nullify the act of the voters in adopting an amendment.”
Then the Court went on to quote at considerable length from Attorney General, ex rel. Miller, v. Miller (1934), 266 Mich 127 (106 ALR 387). The entire purport of the Court’s quotation of Miller is that the courts should look at procedural errors of submission through different eyeglasses, once the electors have voted affirmatively.
A fair summary of that which was quoted with approval from Miller appears on page 717:
“ ‘Even in case some required form of procedure has been omitted by the legislature in submitting a proposal to amend the Constitution, but the same had been advertised or the notices published and the people have approved it at an election the amendment becomes a valid part of the Constitution.’ ”
This last quotation is a counterpart of present § 2 of Article 12 of our Constitution. To repeat for emphasis:
“If the proposed amendment is approved by a majority of the electors voting on the question, it shall become part of the constitution, and shall abrogate or amend existing provisions of the constitution # # #
Supported now by said § 2 of Article 12 as quoted, we adopt these principles from State v. Winnett (1907), 78 Neb 379, 387, 388 (110 NW 1113, 1116; 10 LRA [NS] 149), where it was said that, if a too strict adherence were given to some of the requirements :
“the will of the people of the state would be defeated by an unimportant accident over which they had no control. If other provisions of the constitution are mandatory and are to be taken literally, those provisions by which the people have consented to place restrictions upon their own power in adopting amendments to the constitution should not be so construed [after approval by the people]. We should inquire into the fair purpose and meaning of such restrictions, and should regard the substance rather than the letter of such requirements.”
Our summarized ruling is that after this particular affirmative vote of the electors was certified, the quoted requirement of § 482 became directory only, and that the requirement was fulfilled to constitutional satisfaction by the manner in which the Secretary of State performed his duty. For demonstrative evidence of such performance, see the appendix hereto. It portrays the Secretary of State’s compliance with the constitutional mandate of due publication of that which was popularly understood as becoming, if approved, a new paragraph “added” to existing § 2 of Article 8. Note the “Provision to be Added to Article 8, Section 2 if the proposal is adopted.” and then the heading above the printing of “existing” § 2 of Article 8, that is, “Existing Pro vision of Constitution to which will he added the new language, if adopted.”
The judgment of Division 2 is vacated. A new judgment will enter on review, determining that § 2 of article 8 of the Constitution has read and reads now as set forth ante at pp 453, 454. No costs.
Black, T. E. Brennan, Swainson and Williams, JJ., concurred.
APPENDIX
Proposal “C” was one of three “State Propositions” which, under direction of the Secretary of State, were submitted to the electors November 3. All three were submitted together by official notice under this heading:
“NOTICE
“state propositions
“General Election, November 3, 1970.”
Headed thus and “published in full as provided by law” by posting “in conspicuous places in the room where such election is held.” (PA 1954, No 116, § 480 [MCLA § 168.480; Stat Ann 1956 Rev § 6.1480]), Proposal “C” appeared informatively before the people as follows:
“PROPOSAL C
“proposed constitutional amendment
“(Amendment to article 8, section 2 oe the state CONSTITUTION PROPOSED BY INITIATIVE PETITION)
“This proposal will appear on the ballot as follows:
“PROPOSAL C
“proposed constitutional amendment to prohibit
PUBLIC AID TO NON-PUBLIC SCHOOLS AND STUDENTS
“This amendment adds language to the constitution to:
“(a) Prohibit use of public funds to aid any nonpublic elementary or secondary school;
“(b) Prohibit use of public funds, except for transportation, to support the attendance of any students or the employment of any person at nonpublic schools or at any other location or institution where instruction is offered in whole or in part to non-public school students;
“(c) Prohibit any payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property, directly or indirectly, for the above purposes.
“Should this amendment be adopted?
“Yes □
“No □
“Provision to be Added to Article 8, Section 2 if the proposal is adopted.
“Article 8, Section 2. No public monies or property shall be appropriated or paid or any public credit utilized, by the legislature or any other political subdivision or agency of the state directly or indirectly to aid or maintain any private, denominational or other nonpublic, pre-elementary, elementary, or secondary school. No payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property shall be provided, directly or indirectly, to support the attendance of any student or the employment of any person at any such nonpublic school or at any location or institution where instruction is offered in whole or in part to such nonpublic school students. The legislature may provide for the transportation of students to and from any school.
“Exiting Provision of Constitution to which will he added the new language, if adopted.
“Sec. 2. The legislature shall maintain and support a system of free public elementary and secondary schools as defined by law. Every school district shall provide for the education of its pupils without discrimination as to religion, creed, race, color or national origin.”
On the face of each initiative sheet the “Proposed Amendment” was set forth in its “full text,” according to the requirement appearing in the first paragraph of § 2 of Article 12. Such full text will now become the second paragraph' of § 2 of Article 8 of the' Constitution. Por the full text of amended .section 2, see division “Second,” post at 449.
In the Pontiac School District case (1933), 262 Mich 338, 344, the Court initiated employment of alternative words for the constitutional expression “altered or abrogated,” that is, the Justices said the constitutional words also mean “amended or replaced.” This was pursued in Graham v. Miller (1957), 348 Mich 684, 694, a ease with respect to which 3 members of the Court voted to apply the election-cures-error doctrine. Note that “amend” appears now in the final paragraph of § 2 of Article 12.
That present § 2 not be viewed and applied with absurdly devastating result, the eoneluding portion of this sentence “must be construed as though it read:”
“and shall abrogate or amend [such] existing provisions of the constitution at the end of 45 days after the date of the election at which it was approved.” For demonstrations of this method of judicial reading of constitutional provisions, see School District of City of Pontiac v. City of Pontiac (1933), 262 Mich 338, 351 and City of Jackson v. Commissioner of Revenue (1947), 316 Mich 694, 723.
In each instance the test of “common understanding” appears plainly as having originated with Cooley’s Constitutional Limitations. It is the backbone of the first section (§ 75), appearing under “c. Meaning of Language,” 16 Am Jur 2d, Constitutional Law, pp 255, 256. | [
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Levin, J.
The issue is whether warrantless electronic eavesdropping of a telephone conversation, with the consent of one of the participants in the conversation, violates the Fourth Amendment prohibition against unreasonable searches and seizures.
In these cases, consolidated on appeal, a witness for the people telephoned the defendant at the suggestion of police officers and obtained damaging admissions which were electronically recorded. No warrant was obtained from a magistrate before installation of the electronic surveillance equipment. The recordings were played at the trial over defendant’s objection.
A panel of the Court of Appeals affirmed Michael Drielick’s conviction of first-degree murder on the ground that a warrant is not required for participant monitoring. A separate panel reversed Lawrence Plamondon’s and Craig Blazier’s convictions of extortion by threat of accusation on the ground that a warrant is required. We affirm in Drielick, and reverse in Plamondon and Blazier.
I
In People v Beavers, 393 Mich 554; 227 NW2d 511 (1975), this Court held that, unless authorized by a search warrant, a participant may not, consistent with the Michigan constitutional prohibition against unreasonable searches and seizures, electronically monitor a conversation which is transmitted to law enforcement officers.
Beavers was given prospective effect only. The participant monitoring in these cases preceded Beavers. The question whether the Michigan prohibition applies in the instant cases, which were pending on appeal with the issue preserved, was decided by Beavers. The Court is not disposed to reconsider that recent decision.
II
Defendants’ principal claim is that warrantless participant monitoring violates the Federal constitutional prohibition against unreasonable searches and seizures. In United States v White, 401 US 745; 91 S Ct 1122; 28 L Ed 2d 453 (1971), the United States Supreme Court rejected this claim and held that police eavesdropping without a warrant on conversations between an accused and an informant by means of a radio transmitter concealed on the informant’s person does not violate the Fourth Amendment.
Defendants contend that White does not control because: (i) no opinion in that case obtained the signatures of a majority of the sitting justices; (ii) the decision in White was based on pre-Katz law because Desist had held that Katz only applied prospectively and the monitoring in White preceded the decision in Katz; and (iii) White involved monitoring of a face-to-face conversation while the monitoring in these cases was of telephone conversations.
Mr. Justice White wrote the lead opinion in White which was signed by Chief Justice Burger and Justices Stewart and Blackmun. Mr. Justice Black concurred on the ground that electronic eavesdropping does not constitute a "search” or "seizure” within the meaning of the Fourth Amendment. Mr. Justice Brennan concurred on the ground that Katz was not retroactive, adding that the Fourth Amendment interposes a warrant requirement. Justices Douglas, Harlan and Marshall signed separate dissenting opinions.
In Katz, the Court had held that electronic eavesdropping accomplished by attaching a listening and recording device to the outside of a public telephone booth, without the authorization of either participant in the conversation or of a warrant, was violative of the Fourth Amendment. The Court declared that the right to protection against unreasonable searches and seizures "cannot turn upon the presence or absence of a physical intrusion into any given enclosure”, that the "trespass” doctrine enunciated in earlier decisions had been eroded and could no longer be regarded as controlling, and that the "Government’s activities in electronically listening to and recording the petitioner’s words violated the privacy upon which he justifiably relied by using the telephone booth and thus constituted a 'search and seizure’, within the meaning of the Fourth Amendment”. Katz v United States, supra, p 353. The Fourth Amendment, said the Court, "protects people, not places”. Katz v United States, supra, 351.
While Mr. Justice White’s lead opinion in White said that the United States Court of Appeals had also erred because, by reason of Desist making Katz wholly prospective, Katz did not apply to the electronic surveillance in White, the primary thrust of the opinion was that there was no invasion of "the defendant’s constitutionally justifiable expectations of privacy”. "Inescapably, one contemplating illegal activities must realize and risk that his companions may be reporting to the police. If he sufficiently doubts their trustworthiness, the association will very probably end or never materialize. But if he has no doubts, or allays them, or risks what doubt he has, the risk is his.” White v United States, supra, pp 751, 752. Since the law violator knows that what he says is being heard and may be repeated, no different result is required because the conversation is being listened to or recorded electronically with the consent of the faithless participant.
This Court, in Beavers, construing the Michigan constitutional prohibition, rejected the argument that participant monitoring was a "variant of the privilege of a party to repeat a conversation”, and instead was "persuaded by the logic of Justice Harlan which recognizes a significant distinction between assuming the risk that communications directed to one party may subsequently be repeated to others and the simultaneous monitoring of a conversation by the uninvited ear of a third party functioning in cooperation with one of the participants yet unknown to the other”. People v Beavers, supra, pp 563, 565.
Ill
It is our duty to "determine with the best exercise of our mental powers of which we are capable that law which in all probability will be applied to these litigants or to others similarly situated” in the event of a further appeal of the Fourth Amendment issue from this Court to the United States Supreme Court.
The United States Courts of Appeals for 10 of the 11 circuits have followed Mr. Justice White’s lead opinion in White in holding that the Fourth Amendment does not require a warrant for electronic participant monitoring. No distinction has been made between electronic monitoring of face-to-face conversations and of telephonic communications.
Since White was decided, Justices Black, Douglas and Harlan have left the Court, and Justices Powell, Rehnquist and Stevens have taken their places on the Court. All four justices who signed Mr. Justice White’s opinion remain on the Court.
On at least 14 occasions the United States Supreme Court has declined to grant certiorari to review decisions of the United States Courts of Appeals holding that the Fourth Amendment does not preclude warrantless, electronic participant monitoring. While denial of certiorari is not affirmance, it is a fact of some significance especially since there is no indication in subsequent decisions of the United States Supreme Court which would support the conclusion that the "doctrinal trend” has shifted from the view expressed in Mr. Justice White’s opinion.
We are of the opinion that were there to be a further appeal on Fourth Amendment grounds, the view of the law which in all probability would be applied by the United States Supreme Court would be that expressed in Mr. Justice White’s opinion.
The Court of Appeals is reversed in Plamondon and Blazier, and affirmed in Drielick. The convictions are affirmed.
Kavanagh C. J., and Williams, Fitzgerald, and Blair Moody, Jr., JJ., concurred with Levin, J.
MCLA 750.316; MSA 28.548.
MCLA 750.213; MSA 28.410.
Two police officers monitored, without authorization of a warrant, a conversation between the defendant and a police informant carrying a battery-operated radio transmitter under his shirt while the informant bought heroin from the defendant in defendant’s home. The conversations were not recorded. The eavesdropping officers were permitted over objection to testify regarding the overheard conversations at the trial.
Const 1963, art 1, § 11.
"The decision today is to be applied prospectively.” People v Beavers, supra, p 568. Beavers was decided April 7, 1975.
See Desist v United States, 394 US 244; 89 S Ct 1030; 22 L Ed 2d 248 (1969) where the United States Supreme Court, in holding that the exclusionary rule enunciated in Katz v United States, 389 US 347; 88 S Ct 507; 19 L Ed 2d 576 (1967), was prospective only, saw no distinction between final convictions and those still pending on appeal:
"All of the reasons for making Katz retroactive also undercut any distinction between final convictions and those still pending on review. Both the deterrent purpose of the exclusionary rule and the reliance of law enforcement officers focus upon the time of the search, not any subsequent point in the prosecution, as the relevant date. Exclusion of electronic eavesdropping evidence seized before Katz would increase the burden on the administration of justice, would overturn convictions based on fair reliance upon pre-Katz decisions, and would not serve to deter similar searches and seizures in the future.” Desist v United States, 394 US 244, at 253.
See fn 6.
See fn 6.
"The impact of the practice of third-party bugging, must, I think, be considered such as to undermine that confidence and sense of security in dealing with one another that is characteristic of individual relationships between citizens in a free society. * * *
"Were third-party bugging a prevalent practice, it might well smother that spontaneity — reflected in frivolous, impetuous, sacrilegious, and defiant discourse — that liberates daily life. Much offhand exchange is easily forgotten and one may count on the obscurity of his remarks, protected by the very fact of a limited audience, and the likelihood that the listener will either overlook or forget what is said, as well as the listener’s inability to reformulate a conversation without having to contend with a documented record. All these values are sacrificed by a rule of law that permits official monitoring of private discourse limited only by the need to locate a willing assistant.
"By casting its 'risk analysis’ solely in terms of the expectations and risks that 'wrongdoers’ or 'one contemplating illegal activities’ ought to bear, the plurality opinion, I think, misses the mark entirely. On Lee does not simply mandate that criminals must daily run the risk of unknown eavesdroppers prying into their private affairs; it subjects each and every law-abiding member of society to that risk.” United States v White, supra, pp 787-789 (Harlan, J.)
Spector Motor Service, Inc v Walsh, 139 F2d 809, 814 (CA 2, 1943), remanded on other grounds, Spector Motor Service, Inc v McLaughlin, 323 US 101; 65 S Ct 152; 89 L Ed 101 (1944). Judge Learned Hand, in dissent, agreed on the governing principle:
"I conceive that the measure of its duty is to divine, as best it can, what would be the event of an appeal in the case before it.” Spector Motor Service, Inc v Walsh, 139 F2d 809, 822, 823 (Hand, J.)
Similarly, see Mason v United States, 198 Ct Cl 599; 461 F2d 1364, 1375 (1972), rev’d on other grounds, 412 US 391; 93 S Ct 2202; 37 L Ed 2d 22 (1973); Martin v Virginia, 349 F2d 781, 784 (CA 4, 1965); Perkins v Endicott Johnson Corp, 128 F2d 208, 217 (CA 2, 1942), aff’d, Endicott Johnson Corp v Perkins, 317 US 501; 63 S Ct 339; 87 L Ed 424 (1943).
United States v Diaz, 535 F2d 130, 133 (CA 1, 1976); United States v Bonnano, 487 F2d 654, 657-658 (CA 2, 1973); United States v Santillo, 507 F2d 629, 631-632 (CA 3, 1975); United States v Dowdy, 479 F2d 213, 229 (CA 4, 1973); United States v Wilson, 451 F2d 209, 212 (CA 5, 1971); Stephan v United States, 496 F2d 527, 528 (CA 6, 1974); United States v Gocke, 507 F2d 820, 823 (CA 8, 1974); Holmes v Burr, 486 F2d 55, 59-60 (CA 9, 1973); United States v Puchi, 441 F2d 697, 700 (CA 9, 1971); United States v Quintana, 457 F2d 874, 878 (CA 10, 1972); United States v Bishton, 150 US App DC 51; 463 F2d 887, 892 (1972).
A number of state courts have reached the same conclusion. State v Wilder, 18 Ariz App 410; 502 P2d 1087, 1088 (1972); Kerr v State, 256 Ark 738; 512 SW2d 13, 20-21 (1974); People v Murphy, 8 Cal 3d 349; 105 Cal Rptr 138; 503 P2d 594, 600-601 (1972); People v Morton, — Colo —; 539 P2d 1255, 1257 (1975); State v Delmonaco, 165 Conn 163; 328 A2d 672, 673 (1973); People v Richardson, 60 Ill 2d 189; 328 NE2d 260, 263 (1975); McCarty v State, — Ind App —; 338 NE2d 738, 741 (1975); State v Wigley, 210 Kan 472; 502 P2d 819, 821-822 (1972); Avery v State, 15 Md App 520; 292 A2d 728, 742-743 (1972); Everett v State, 248 So 2d 439, 442-443 (Miss, 1971); State v Anepete, 145 NJ Super 22; 366 A2d 996, 998 (1976); People v Phillips, 50 App Div 2d 937; 390 NYS2d 6, 7 (1976); Escobedo v State, 545 P2d 210, 216 (Okla Crim, 1976); Commonwealth v Donnelly, 233 Pa Super 396; 336 A2d 632, 640-641 (1975); Thrush v State, 515 SW2d 122, 125 (Tex Crim App, 1974).
Other state courts, like Michigan, have concluded that warrantless electronic participant monitoring is violative of a state constitutional prohibition. Tollett v State, 272 So 2d 490, 492-493 (Fla, 1973); State ex rel Arnold v Rock County Court, 51 Wis 2d 434; 187 NW2d 354, 356-357 (1971); cf. State v Smith, 72 Wis 2d 711; 242 NW2d 184, 186-187 (1976).
United States v Bonnano, supra; United States v Santillo, supra; United States v Dowdy, supra; United States v Wilson, supra; Stephan v United States, supra; United States v Puchi, supra; United States v Quintana, supra.
United States v Warren, 453 F2d 738 (CA 2, 1972), cert den, 406 US 944; 92 S Ct 2040; 32 L Ed 2d 331 (1972); United States v Koska, 443 F2d 1167 (CA 2, 1971), cert den, 404 US 852; 92 S Ct 92; 30 L Ed 2d 92 (1971); United States v Santillo, supra, cert den sub nom Buchert v United States, 421 US 968; 95 S Ct 1960; 44 L Ed 2d 457 (1975); United States v Dowdy, supra, cert den, 414 US 866; 94 S Ct 132; 38 L Ed 2d 118 (1973); reh den, 414 US 1117; 94 S Ct 851; 38 L Ed 2d 745 (1973); United States v Wilson, supra, cert den sub nom Fairman v United States, 405 US 1032; 92 S Ct 1298; 31 L Ed 2d 490 (1972) ; United States v Caracci, 446 F2d 173 (CA 5, 1971), cert den, 404 US 881; 92 S Ct 202; 30 L Ed 2d 162 (1971); United States v Avila, 443 F2d 792 (CA 5, 1971), cert den, 404 US 944; 92 S Ct 295; 30 L Ed 2d 258 (1971); United States v Lippmann, 492 F2d 314 (CA 6, 1974), cert den 419 US 1107; 95 S Ct 779; 42 L Ed 2d 803 (1975); Stephan v United States, supra, cert den sub nom Marchesani v United States, 423 US 861; 96 S Ct 116; 46 L Ed 2d 88 (1975); United States v Gocke, supra, cert den 420 US 979; 95 S Ct 1407; 43 L Ed 2d 660 (1975); United States v King, 472 F2d 1 (CA 9, 1972), cert den sub nom Butler v United States, 414 US 864; 94 S Ct 37, 40, 174; 38 L Ed 2d 84 (1973) ; United States v Puchi, supra, cert den, 404 US 853; 92 S Ct 92; 30 L Ed 2d 92 (1971); United States v Quintana, supra, cert den, 409 US 877; 93 S Ct 128; 34 L Ed 2d 130 (1972); Holmes v Burr, supra, cert den, 414 US 1116; 94 S Ct 850; 38 L Ed 2d 744 (1973).
See Spector Motor Service, Inc v Walsh, supra. | [
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Coleman, J.
This case concerns MCLA 211.13; MSA 7.13 , a provision of the General Property Tax Act. The section requires an assessing district to assess an owner for all tangible personal property located in the township on tax day unless the owner elects to be assessed on the basis of an average monthly inventory. If the owner elects, the statute provides that a sworn statement be filed which states the total inventory for each of the preceding 12 months. The assessing district is then required to assess the property on the basis of the average monthly inventory.
May an owner of inventories in more than one assessment district elect under § 13 to be assessed on tax day in one assessing district and elect to be assessed on the average monthly inventory in another? The Court of Appeals said yes. We affirm.
The wording of the statute is clear. The tax is uniformly applied. The cases relied upon by defendant are inapposite as to these facts. Defendant’s reliance upon an administration "rule” which was never promulgated and is not part of the record is misplaced.
I
During 1970, Ford Motor Company had inventories located in Highland Park. It elected to have the property assessed on the basis of what was located in the city on tax day (12/31/70). Highland Park maintained that because Ford elected to be assessed on the average monthly inventory basis in other assessment districts within Wayne County, it was required to report its inventory in Highland Park on the same basis. The State Tax Commission (STC) approved the city’s action.
The Court of Appeals reversed. It held that "the plain meaning of the statute is clear and that it permits a taxpayer to elect to have its inventory in a particular assessing district assessed according to the average monthly inventory without regard to the method selected in another assessing district”. 63 Mich App 577, 584; 234 NW2d 711 (1975).
STC has not participated in this appeal. The position of defendant-appellant was briefed and argued by the City of Highland Park and the School District for the City of Highland Park.
II
The city and school district argue that the statute should be read to construe some singular designations as plural, i.e., "the assessing officer” and "the assessing district”. They point to the statutory words as meaning "all inventories” wherever located. They cite MCLA 8.3b; MSA 2.212(2):
"Every word importing the singular number only may extend to and embrace the plural number and every word importing the plural may be applied to and limited to the singular number.”
It is not clear whether defendants would apply the requirement of one election for all assessment districts within a county or the entire state. Their brief speaks at one time of the county and at another of the state, but, logically, any distinction would be without a difference.
The taxpayer counters this argument by stating that the words "all inventories” appearing in the average monthly inventory option of § 13 must be read in context with the following words, "in the assessing district”. Also the statute provides for tax day assessment of personalty "in the township in which it is located”.
Plaintiff also argues that § 13, which was intended as a tax relief measure, could result in increased taxes if defendant’s theory is accepted. It was explained that "[t]he option is provided to each taxpayer because the seasonal nature of business or other fortuitous circumstances may cause inventory quantities as of the tax day to be greater than the quantities generally maintained throughout the preceding year”.
The statute is plain and unequivocal on its face.
If tax laws are to be construed liberally in favor of the taxpayers, we cannot so strain the statute’s clear meaning so as to give credence to defendant’s arguments. Ford persuasively argues that the statutory wording would present problems if construed as suggested by defendants. For example, which election would be the one binding upon the taxpayer for the whole state (the first one made, the one adding up to the least overall taxes, etc.)? In this case, which assessing unit would prevail? There are no proofs of time of other elections or of the least burdensome tax if one election must be made for the county or state.
However, defendants further argue that if one interpretation finds a statute constitutional and another unconstitutional, we must afford to the statute that meaning which is consistent with constitutionality. We agree with the rule of construction. We do not need to apply the rule to decide this case.
Ill
Defendants maintain that construction of § 13 according to its plain meaning must lead to the conclusion that it violates Const 1963, art 9, § 3:
"The legislature shall provide for the uniform general ad valorem taxation of real and tangible personal property not exempt by law. The legislature shall provide for the determination of true cash value of such property; the proportion of true cash value at which such property shall be uniformly assessed, which shall not, after January 1, 1966, exceed 50 percent; and for a system of equalization of assessments. The legislature may provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation. Every tax other than the general ad valorem property tax shall be uniform upon the class or classes on which it operates.”
In asking that the Court of Appeals be reversed, defendants rely primarily on Teagan Transportation Co v Detroit Board of Assessors, 139 Mich 1; 102 NW 273 (1905); on Ready-Power Co v Dearborn, 336 Mich 519; 58 NW2d 904 (1953); and on Titus v State Tax Commission, 374 Mich 476; 132 NW2d 647 (1965).
In Teagan, a section of the general tax law permitted the personal property of corporations engaged in maritime commerce or navigation to be assessed "in the city, village or township, * * * stated in their * * * articles of association * * * to be the location of their general office for business”. The property of other corporations was assessed at the place where they transacted their principal business.
The Teagan Company was engaged in maritime commerce or navigation. Its business "which was not done on its boats was done in the city of Detroit”. The articles of incorporation named Hamtramck "as the location of their general offices for business”. The company sought mandamus "compelling [Detroit] to strike from the asessment rolls an assessment on account of certain steamboats owned by it”.
Our Court found that Teagan’s "principal business was not transacted at the place named in the articles of incorporation”. The question then became whether the legislative provision for maritime companies violated the constitutional provision requiring a uniform rule of taxation. The Court said it did because "it clearly taxes * * * the property of corporations engaged in maritime commerce and navigation at a rate different from all other property of the same class”. It was no defense to say the Legislature has the power to determine taxable situs. The Court concluded "that the legislature, in determining the situs for the taxation of personal property, must regard the constitutional requirement of uniformity, and the disregard of that requirement makes the law under consideration unconstitutional and void”.
The Court of Appeals found "Teagan to be totally inapposite to the facts of the instant case”. Ford distinguishes Teagan by noting that "all inventory taxpayers may make an election under [MCLA 211.13; MSA 7.13]”. The tax applies equally to all members of the class. Ford argues that "nonuniformity of taxation occurs when a taxpayer is compelled to elect the average monthly inventory on a statewide basis because value which the taxpayer never possessed may be created”.
Unlike Teagan, MCLA 211.13; MSA 7.13 does not remove property from the tax rolls nor does it apply only to a particular group. It provides an election for owners of "[inventories * * * such as are commonly used in trade or commerce or manufacture”. The property will be taxed and at a uniform rate within the assessing district; the statute only provides an election for assessment.
In Ready-Power v Dearborn, the company manu factured electric generating units in Detroit and stored some personal property in Dearborn. It conducted business on a July 1 to June 30 fiscal year. MCLA 211.13; MSA 7.13 then permitted a company to elect to be taxed on a fiscal- or calendar-year basis.
In January 1952, Dearborn asked for a general property statement covering the last fiscal year. The company had not stored property in the city during that time although it had in the last four months of 1951. Dearborn taxed the company for that property.
On appeal, the Court said the taxpayer was permitted to file on either a calendar- or fiscal-year basis. It found "Ready-Power was entitled * * * to make its return on the basis of its operations”. The company had a "right of election”. It chose to be taxed on a fiscal-year basis and "[t]ax officials may not deprive taxpayers of this right of election”.
Ford contends that the "critical fact in Ready-Power” is that the taxpayer "voluntarily elected inventory valuation methods which were the same for the two districts”, but Dearborn did not honor the election. Double taxation for four months could have resulted. In our case, Ford states that despite the election, Highland Park "is compelling [the company] to use an inventory valuation method which serves to increase its tax liability”.
The Court of Appeals said Ready-Power was "factually distinguishable” and we agree.
However, some generally applicable wisdom is to be gleaned from the opinion. MCLA 211.13; MSA 7.13 gives Ford a "right of election” on how its inventory will be assessed in such assessing district. Like Ready-Power Co, Ford is "entitled * * * to make its return on the basis of its operations”. The Ready-Power Court noted that permitting Dearborn to tax the company on a calendar rather than a fiscal-year basis would violate the uniformity guaranty. All others of the class in Dearborn could elect, but Ready-Power Company was prevented from exercising its election. The Court also said it "may not vary the clear and unequivocal meaning of the words used in a statute and determine tax matters solely on the grounds of unwisdom or of public policy”.
The taxpayers in Titus v State Tax Commission claimed "about 20% of the real property in Lansing, including their own, [was assessed] by a method * * * different from that used” on the other real property within the assessment district. The Court found this to be true and said "the variant methods used deprived plaintiffs of the guarantee of uniformity of taxation provided by” the state Constitution.
The Court of Appeals distinguished Titus saying it did not involve an election under MCLA 211.13; MSA 7.13. Ford argues that, at most, Titus prohibits the use of both methods of inventory valuation in the same assessing district. That is not a problem here.
There is no suggestion in this case that Ford transferred inventories for other than business reasons, that the returns were made other than "on the basis of its operations” (Ready-Power, supra, p 524), or that tax considerations motivated the transfers of inventories reflected in the returns.
IV
We conclude that MCLA 211.13; MSA 7.13 provides for an election by any taxpayer owning certain inventories located within an assessing district. The taxpayer may elect to be taxed upon inventories so situated on tax day or upon the monthly inventory average for the preceding year.
If Ford, like any other taxpayer, had inventories only in Highland Park, it, as all others, would have the same election and the same rate (including Highland Park School District millage) would apply. Any other taxpayer having inventories in more than one assessing district, like Ford, would have the same election in each separate assessing district and that particular tax rate (includings its particular school millage) would fall uniformly upon the taxpayer. Ford’s assessment is also subject to equalization — a technique promoting uniformity within and between counties.
The statute in plain words refers solely to assessing districts. There has been no demonstrated violation of the uniformity standards discussed in Allied Supermarkets, Inc v Detroit, 391 Mich 460; 216 NW2d 755 (1974), or Ann Arbor Twp v State Tax Commission, 393 Mich 682; 227 NW2d 784 (1975).
So long as each taxpayer with inventories in the assessing district has the same right of election and is taxed at the same rate after election, the statute withstands the tests of constitutionality.
The statute gives Ford an election which it can exercise in each assessing district of the state where its inventories may lie.
We affirm the Court of Appeals.
Kavanagh, C. J., and Levin, Fitzgerald, and Ryan, JJ., concurred with Coleman, J.
Williams, J.
(for reversal). Whether a taxpayer may elect the average monthly valuation method of assessment in one district and be assessed on the tax day method in another district under § 13 of the General Property Tax Act, MCLA 211.13; MSA 7.13, or must be assessed by one or the other method in both districts, is the question raised by this case.
We hold that the taxpayer may elect to be assessed on the average monthly valuation method in all districts or be assessed on the tax day method in all districts, but cannot use different methods in different districts for each and all of the following four reasons: first, Ready-Power Co v Dearborn, 336 Mich 519; 58 NW2d 904 (1953), so holds; second, the uniform assessment provision of the Const 1963, art 9, § 3 so requires; third, longstanding administrative interpretation and legislative acquiescence so indicate; and fourth, common sense so directs. Consequently, we reverse.
I — Facts
During the 1970 calendar year, Ford Motor Company had inventory in various assessing districts within the State of Michigan, including the Cities of Highland Park and Dearborn, both located in the County of Wayne. For personal property tax purposes, pursuant to § 13, Ford filed its 1971 Sworn Personal Property Statement with the City of Dearborn electing to report on the average monthly value of its inventory. Ford’s Personal Property Statement filed with the City of Highland Park, however, reported its inventory value for 1970 as of the tax day, December 31, 1970.
Ford was subsequently advised by the City of Highland Park that, since it had elected the average monthly inventory method basis in other assessing districts, it was required to so report its inventory in that city.
The city assessed Ford at its best estimate of the average value of Ford’s personal property during the preceding 12-month period. Ford unsuccessfully appealed to both the city’s board of review and the State Tax Commission. The State Tax Commission, while upholding the necessity for the uniform use of the average monthly inventory method, adjusted downward the assessment of Ford’s personal property to reflect its actual average monthly inventory values.
Ford applied for leave to appeal to the Court of Appeals from the decision of the State Tax Commission. Leave was granted on March 1, 1974.
The Court of Appeals reversed the decision of the State Tax Commission, holding that Ford might be assessed on tax day in one assessment district and elect the average monthly inventory assessment in another district under § 13 of the General Property Tax Act.
We granted leave to appeal.
II — Statute in Question
This case hinges on the proper interpretation of the General Property Tax Act, § 13. Section 13 provides as follows:
"Sec. 13. All tangible personal property, except as provided in section 14, shall be assessed to the owner thereof, if known, in the township in which it is located on the tax day.
"Inventories of goods, wares, materials, merchandise and supplies such as are commonly used in trade or commerce or manufacture shall, upon the filing by the owner thereof of a sworn statement with the assessing officer showing the total of such inventories for each of the preceding 12 months ending December 31, be assessed on the basis of the average monthly inventory for such 12-month period. The average monthly inventory shall be computed on the basis of the number of months during which said inventories of goods, wares, merchandise and supplies had a taxable situs in the assessing district. No assessing officer shall be restricted to any particular period in the preparation of the assessment roll but may survey, examine or review properties at any time prior to or after said tax day.” (Emphasis added.)
Ill — Ready-Power Co v Dearborn
This Court in Ready-Power, by unanimous decision, under a prior but essentially similar enactment of § 13 and under essentially similar facts, held that the taxpayer could not be assessed by the average monthly inventory method on a fiscal-year basis in one district and on a calendar-year basis in another district, although § 13 permitted the taxpayer to report either for a fiscal year or for a calendar year.
That comparable statutory language in Ready-Power is essentially similar can be seen by comparing the following with the quotation of the present § 13 in part II of this opinion:
"Sec. 13. All personal property, except as hereinafter provided, shall be assessed in the township in which the owner resides on the first day of January of the year for which the assessment is made.
" * * * Provided, That inventories of goods, wares, materials, merchandise and supplies such as are commonly used in trade or commerce or manufacture shall, upon the filing by the owner thereof of a sworn statement with the assessing officer showing the total of such inventories for each of the 12 months preceding said first day of January, or each of the months -of the last preceding fiscal year of such owner, be assessed on the basis of the average monthly inventory for such 12-month period or fiscal year * * * 336 Mich 523.
The comparable facts are that the taxpayer uniformly elected the average monthly inventory method for its fiscal year ending June 30th. It filed a property statement in Detroit showing monthly inventory and filed in Dearborn showing no inventory. Dearborn required the taxpayer to file under protest that it did have property in Dearborn during the calendar year, but only in months after the termination of taxpayer’s fiscal year.
It is obvious that the facts in Ready-Power raise the same principle of uniformity of assessment method that the instant case does. In both cases, one party insisted on the same assessment method in both districts and the other party sought to impose a different assessment method in one district to acquire a tax advantage. It is true that in Ready-Power the party proposing the different assessment method was the city, and in the instant case it is the taxpayer, but the legal effect is the same as will be more fully developed in part IV of this opinion.
IV — Uniformity in Mode of Assessment
A. Constitutional Requirement of Uniform Assessment
Article 9, § 3 of the Michigan Constitution requires uniform general ad valorem taxation of real and tangible personal property:
"The legislature shall provide for the uniform general ad valorem taxation of real and tangible personal property not exempt by law. The legislature shall provide for the determination of true cash value of such property; the proportion of true cash value at which such property shall be uniformly assessed, which shall not, after January 1, 1966, exceed 50 percent; and for a system of equalization of assessments.”
The constitutional rule of uniformity, as expressed in art 9, § 3, has been correctly interpreted to mean not only uniformity in the rate of taxation, but also uniformity in the burden of taxation, Wood v Village of Rockwood, 328 Mich 507, 511; 44 NW2d 163 (1950), and uniformity in the mode of assessment. Titus v State Tax Commission, 374 Mich 476, 480; 132 NW2d 647 (1965).
The election afforded under § 13 is an election as to the mode of assessment of personal property. The necessity for uniformity in the same was expressed by this Court in Titus, supra, in which the Lansing assessor had reappraised 20% of the real property in Lansing, beginning a plan whereby, over several years, all of the real property in Lansing would be reappraised. The taxpay ers affected by the reappraisal challenged the use of two different modes of assessment within the City of Lansing.
This Court found it unnecessary to decide whether either appraisal method then in use in the city conformed to the legislative mandate that property be assessed at its "true cash value,” because it found it was "sufficient for [the] purpose of decision that the variant methods used deprived plaintiffs of the guarantee of uniformity of taxation provided by * * * the Constitution”. The Court further quoted from Exchange Bank of Columbus v Hines, 3 Ohio St 1, 15 (1853), adopted in Huron-Clinton Metropolitan Authority v Boards of Supervisors of Five Counties, 304 Mich 328, 335-336; 8 NW2d 84 (1943):
" 'What is meant by the words "taxing by a uniform rule?” And to what is the rule applied by the Constitution? No language in the Constitution, perhaps, is more important than this; and to accomplish the beneficial purposes intended, it is essential that they should be truly interpreted, and correctly applied. "Taxing” is required to be "by a uniform rule;” that is, by one and the same unvarying standard. Taxing by a uniform rule requires uniformity not only in the rate of taxation, but also uniformity in the mode of the assessment upon the taxable valuation. Uniformity in taxing implies equality in the burden of taxation; and this equality of burden cannot exist without uniformity in the mode of the assessment, as well as in the rate of taxation. But this is not all. The uniformity must be coextensive with the territory to which it applies. If a State tax, it must be uniform over all the State; if a county, town, or city tax, it must be uniform throughout the extent of the territory to which it is applicable.’ ” 374 Mich 480.
The Court, therefore, held that the use of two different modes of assessing similar real property located within Lansing violated the rule of uniformity guaranteed by the Constitution.
In Ready-Power, supra, we further discussed the rule of uniformity with respect to § 13. This Court stated that:
"If the city’s argument is to be approved, we must, in the same breath, approve a violation of the constitutional guaranty of uniformity, in that we must admit that it is proper for Detroit to tax plaintiff on a fiscal year basis and permit the city of Dearborn to tax on a different basis.” 336 Mich 526.
The Court explicitly refused to hold that the language affording an alternative in § 13 allowed such a result.
B. Can the Statute be Construed to Preserve its Constitutionality?
A statute must always be read, if possible, to conform with constitutional mandates.
"The general principle has repeatedly been invoked that if a legislative enactment is of such a character that it is subject to differing interpretations, one of which would result in the act being held unconstitutional and the other permitting its being upheld as valid, the latter alternative will be accepted. In other words, the presumption is that the legislature would not intend to pass an act in contravention of a constitutional restriction or otherwise invalid.” (Emphasis added.) State Bar of Michigan v Lansing, 361 Mich 185, 195; 105 NW2d 131 (1960).
In interpreting language contained in revenue statutes, general rules of construction have been established. As summarized in the Williams opinion for reversal in an equally divided court, in Borden, Inc v Dep’t of Treasury, 391 Mich 495, 513-517; 218 NW2d 667 (1974), revenue laws containing doubtful language are to be strictly construed against the taxing authority. Ecorse Screw Machine Products Co v Corporation & Securities Commission, 378 Mich 415, 418; 145 NW2d 46 (1966); Ready-Power Co v Dearborn, 336 Mich 519, 525; 58 NW2d 904 (1953); Hart v Dep’t of Revenue, 333 Mich 248, 252; 52 NW2d 685 (1952). At the same time they should receive a reasonable construction with a view to carrying out the legislative purposes. In re Detroit & Windsor Ferry Co, 227 Mich 143, 146; 198 NW 725 (1924).
In his treatise on taxation, Cooley explained the relationship between these two rules in the following manner:
"In construing revenue laws, special consideration is of course to be had of the purpose for which they are enacted. That purpose is to supply the government with a revenue. But in the proceedings to obtain this it is also intended that no unnecessary injury shall be inflicted upon the individual taxed. While this is secondary to the main object — the impelling occasion of the law — it is none the less a sacred duty.” 2 Cooley, Taxation (4th ed), § 503, p 1113.
Therefore, when there is doubt as to the interpretation of a revenue statute, that doubt is to be resolved in favor of the taxpayer only if such resolution is consistent with the purposes of the Legislature.
Further, "in the construction of a statute the manifest intent of the legislature must prevail over the literal sense of the terms used”. Bates Twp School District v Elliott, 276 Mich 575, 578; 268 NW 744 (1936) citing, Stambaugh Twp v Iron County Treasurer, 153 Mich 104, 107; 116 NW 569 (1908).
The Court of Appeals found § 13 so clear and unambiguous on its face that there was no room for judicial construction. 63 Mich App 577, 584. Admittedly, if a statute is clear and unambiguous on its face, there is no need for judicial construction, Dussia v Monroe County Employees Retirement System, 386 Mich 244, 249; 191 NW2d 307 (1971); Ypsilanti Police Officers Association v Eastern Michigan University, 62 Mich App 87, 92; 233 NW2d 497 (1975), but we do not find § 13 to be such a statute.
As posited in Wyandotte Savings Bank v State Banking Commissioner, 347 Mich 33, 40; 78 NW2d 612 (1956), and reaffirmed in People v McFarlin, 389 Mich 557, 563-564; 208 NW2d 504 (1973), in similar language:
"Few words [within a statute] have a 'content so intrinsic’ that their meaning does not become doubtful in the context of a particular question.”
The language of § 13 is no exception to this rule; it is not so clear and unambiguous as to preclude judicial interpretation. It is, in fact, equally compatible with two interpretations, one constitutional and the other unconstitutional; we must, therefore, choose the former. State Bar of Michigan v Lansing, 361 Mich 185, 195; 105 NW2d 131 (1960).
The language of § 13 is phrased in the singular rather than the plural with reference to "assessing officer” and "assessing district”. Ford Motor Company and the Court of Appeals each stressed this to interpret the same as affording a separate election for each assessing district.
However, this Court in Ready-Power clearly interpreted similar language to apply to the assessing officers in several districts without any trouble whatsoever.
In conclusion we hold that art 9, § 3 of the Constitution requires us to place an interpretation on § 13 which results in uniformity, if we can, and we do so.
C. Legislative Intent
In regard to § 13, the intent of the Legislature is clear under the rule that when a statute has been re-enacted or amended in light of prior judicial construction, and the language subjected to such construction is not legislatively changed, it is presumed that the Legislature adopted such construction. Van Antwerp v State, 334 Mich 593, 604; 55 NW2d 108 (1952); Perez v Chrysler Corp, 36 Mich App 9, 14; 193 NW2d 390 (1971). See, also, Chrysler Corp v Smith, 297 Mich 438, 452; 298 NW2d 87 (1941).
Section 13 was amended during the year following Ready-Power, by 1954 PA 122, to remove the fiscal year alternative which resulted in the non-taxation of property within the state during the calendar year. The Legislature did not amend the portion of the statute relating to the tax day and average monthly alternatives. Although we must be wary of placing unwarranted reliance on inaction by the Legislature, in this instance the statute was amended as a direct result of Ready-Power. We can therefore assume that the Legislature was fully aware of the judicial interpretation in that case, and that such interpretation was consistent with its intention.
V — Long Administrative Interpretation and Legislative Acquiescence
In Ready-Power, this Court set forth
"The instruction of the State tax commission to assessing officers, under date of January 2, 1952, in Bulletin No 83 [which] states in part:
" T. A taxpayer having an inventory in more than one assessment district in the State of Michigan must file on the same basis in all assessment districts. The election of the basis for the computation of its inventory remains entirely within the discretion of the taxpayer.’ ” 336 Mich 524.
In stating its decision this Court in Ready-Power referred to its reliance on the State Tax Commission interpreting § 13 to require uniformity as follows:
"If the city’s argument is to be approved, we must, in the same breath, approve a violation of the constitutional guaranty of uniformity,' in that we must admit that it is proper for Detroit to tax plaintiff on a fiscal year basis and permit the city of Dearborn to tax upon a different basis. The State tax commission itself, as hereinbefore quoted, has recognized the necessity of uniform treatment of taxpayers in its instructions to assessing officers.”
Our position in Ready-Power with respect to § 13 confirms the rule this Court spoke to in 1968 as follows:
"The construction given to a statute by those charged with the duty of executing it is always entitled to the most respectful consideration and ought not to be overruled without cogent reasons.” Magreta v Ambassador Steel Co, 380 Mich 513, 519; 158 NW2d 473 (1968).
Sutherland explains the effect of administrative interpretation as "[o]ne of the most significant aids of construction in determining the meaning of revenue laws * * * ”. 3 Sutherland, Statutory Construction (4th ed), § 66.04, p 192. See, Borden, Inc v Dep’t of Treasury, 391 Mich 495, 515; 218 NW2d 667 (1974); Hazel Park v Municipal Finance Commission, 317 Mich 582, 605; 27 NW2d 106 (1947).
Section 13 was interpreted by the State Tax Commission as early as 1952, and this interpretation was reaffirmed as recently as 1971 in instruction number 6 on the reverse side of the State Tax Commission 1971 Personal Property Reporting form, which provides:
"The election of the method of reporting the inventory is made annually and the taxpayer must use the same method of average monthly inventory or the December 31, inventory, in all assessment districts in which he has taxable inventories in Michigan.”
In Ready-Power, as indicated, we cited with approval the commission’s interpretation that the taxpayer’s election must be uniform throughout the state. This Court did not question the correctness of the administrative interpretation at that time, and there has been neither disaffirmance through case law or change in the commission’s interpretation. Therefore, totally ignoring that interpretation at this time is not warranted.
Appellee argues, however, that we should ignore this administrative interpretation because it was neither formally promulgated into a rule or regulation under 1943 PA 88, which was in force when Ready-Power first acknowledged the interpretation, nor under the Administrative Procedures Act of 1969, MCLA 24.201 et seq.; MSA 3.560(101) et seq., our present statute for formal promulgation of rules and regulations. With this we cannot agree. To say that this administrative interpretation is not to be accorded the deference granted a codified rule or regulation, is not to say that this Court cannot recognize the same as a valid administrative interpretation and weigh it accordingly. Indeed, the Court of Appeals accorded "much weight” to such an uncodified administrative interpretation in Grayson v Board of Accountancy, 27 Mich App 26, 34; 183 NW2d 424 (1970). See, generally, 22 Callaghan’s Michigan Civil Jurisprudence, Statutes, § 141.
Further, as stated supra, the Legislature is presumed to have accepted this particular administrative interpretation when it amended § 13, subsequent to Ready-Power, without change as to the language with which we now deal.
VI — Common Sense Interpretation
There is no suggestion in the record that Ford managed the location of its inventory for tax rather than manufacturing purposes, and we make no such assumption. However, in interpreting the statute we may legitimately assume that the Legislature intended an interpretation of § 13 that did not invite tax manipulation, all other things being equal. Consequently, it is in order to see what manipulation could follow, if a taxpayer were permitted under § 13 to adopt the average monthly inventory assessment method in one district and the tax day assessment in another.
Let us suppose that a taxpayer has a $100,000 inventory throughout the year that he can locate in two different assessment districts with equal business and tax rate advantage and can be assessed on December 31 in one district and use the average monthly inventory method in the other. Obviously under the tax day assessment, the taxpayer benefits most by having the least inventory in situ on the tax day. Let us assume therefore he has only $10,000 of inventory in the first assessment district during December. Taxwise it does not make any difference under the tax day method how much or how little inventory is present at other times of the year, so we can assume that $90,000 of the $100,000 inventory is kept in the first assessment district January through November. This means that in the second assessment district there would be $10,000 in situ January through November, and in December there would be $90,000.
The assessed value in the first district under the tax date method would be the amount of inventory present on December 31, or $10,000. The assessed value in the second assessment district on the average monthly inventory basis would be one-twelfth of the total of $10,000 for 11 months plus $90,000 for one month, or one-twelfth of $200,000, which is $16,666.66. This means that the taxpayer’s total inventory value would be $26,666.66 rather than the $100,000, if he had it all in the first or second assessment district all of the time, or were required to make consistent elections throughout the state.
It does not seem probable that this is the result the Legislature had in mind. We do not interpret § 13 to permit such an outcome.
VII — Conclusion
We hold that Ford Motor Company has exceeded the proper limits of § 13 of the General Property Tax Act by electing two different modes of assessment in two assessment districts within the state.
To find otherwise would not only violate the constitutional rule of uniformity of taxation, but would be contrary to prior judicial, legislative and administrative interpretation, as well as common sense, which demands a method of assessment which does not lend itself to manipulations of inventory for tax rather than manufacturing purposes.
The Court of Appeals is, therefore, reversed. No costs, a public question being involved.
Blair Moody, Jr., J., concurred with Williams, J.
"All tangible personal property, except as provided in section 14, shall be assessed to the owner thereof, if known, in the township in which it is located on the tax day.
"Inventories, of goods, wares, materials, merchandise and supplies such as are commonly used in trade or commerce or manufacture shall, upon the filing by the owner thereof of a sworn statement with the assessing officer showing the total of such inventories for each of the preceding 12 months ending December 31, be assessed on the basis of the average monthly inventory for such 12-month period. The average monthly inventory shall be computed on the basis of the number of months during which said inventories of goods, wares, merchandise and supplies had a taxable situs in the assessing district. No assessing officer shall be restricted to any particular period in the preparation of the assessment roll but may survey, examine or review properties at any time prior to or after said tax day.”
Defendants say that a taxpayer may make an independent election in each county of the state where it has inventories. This is inconsistent with another contention that a taxpayer must make one statewide election.
Defendants place considerable weight upon an administrative rule which was never promulgated and which they admit "is not a part of the record on appeal in this cause”. We will not discuss this argument.
Ready-Power Co v Dearborn, 336 Mich 519; 58 NW2d 904 (1953), FM Sibley Lumber Co v Department of Revenue, 311 Mich 654; 19 NW2d 132 (1945), Detroit v Phillip, 313 Mich 211; 20 NW2d 868 (1946), Consumers Power Co v Corporation & Securities Commission, 326 Mich 643; 40 NW2d 756 (1950).
State Bar of Michigan v Lansing, 361 Mich 185, 195; 105 NW2d 131 (1960), where this Court stated:
"The general principle has repeatedly been invoked that if a legislative enactment is of such a character that it is subject to differing interpretations, one of which would result in the act being held unconstitutional and the other permitting its being upheld as valid, the latter alternative will be accepted. In other words, the presumption is that the legislature would not intend to pass an act in contravention of a constitutional restriction or otherwise invalid.”
This case does not require us to consider the Single Business Tax Act. That legislation may limit the effect of our decision. See MCLA 208.131, etseq.;MSA 7.558(131), etseq.
The sworn statement, required under § 13, is described in §§ 18 and 19 (MCLA 211.18; MSA 7.18 and MCLA 211.19; MSA 7.19).
Plaintiff, Ford Motor Company, contests whether its election in Dearborn was made prior to its election in Highland Park. We do not find this issue relevant to the instant decision which deals solely with the propriety of inconsistent elections within the state. The State Tax Commission noted the controversy as to assessment method to be used only as follows: "Notes: Avg. inv. must be used”.
The value of Ford’s personal property within the City of Highland Park as of the tax day, December 31, 1970, was $24,737,962. The average value, as ultimately determined by a State Tax Commission audit, of Ford’s personal property within the 12-month period ending December 31, 1970, was $29,648,553. See the Court of Appeals decision in the instant case, Ford Motor Co v State Tax Commission, 63 Mich App 577, 581-582; 234 NW2d 711 (1975).
Ford Motor Co v State Tax Commission, 63 Mich App 577; 234 NW2d 711 (1975).
An additional issue decided by the Court of Appeals, regarding the manner in which Ford’s property was assessed, is not before this Court.
The Court’s opinion in Titus has been called " * * * a succinct exposition of classic proportions on uniformity of general property taxation”. Stanley & Tunstall, State and Local Taxation, 12 Wayne L Rev 160, 165 (1965). See also, OAG, 1971-1972, No 4719, pp 42, 45 (May 6, 1971).
Section 19 of the General Property Tax Act (MCLA 211.19; MSA 7.19) requires that the sworn statement to be submitted to each assessor must "be in such form and of such content as may be prescribed by the state tax commission * * * ” (emphasis added). See, also, 2 Michigan State Tax Commission Assessor’s Manual, ch 15, p 10. | [
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Per Curiam.
Defendant Slavik seeks review of the judgment entered below (Weeks v. Slavik Builders, Inc. [1970], 24 Mich App 621). We grant leave and order summary affirmance for reasons given below.
The express and implied warranties considered in the opinion of Division 2 were made before construction of the home defendant Slavik agreed to construct for plaintiffs. Those warranties became a contractual obligation when the Anza cement tiles thus warranted were personal property. The transformation of such tiles into realty, by incorporating them as a part of the new home, did not change or alter Slavik’s obligation as co-warrantor with Anza Industries of America. That obligation became actionable upon discovery by plaintiffs of the fact of breach.
The instant action is not one for damages for injuries to property within § 5805 of the Revised Judicature Act (CLS 1961, § 600.5805 [Stat Ann 1962 Rev § 27A.5805]), or within the rule of State Mutual Cyclone Insurance Company v. O & A Electric Cooperative (1968), 381 Mich 318. No property of the plaintiffs was “damaged” by defendant Slavik at any time. Instead, defendant Slavik warranted to plaintiffs that it would install on the roof of the dwelling the specifically identified Anza cement tiles which would measure up, in roofing service, to the warranties made. Such warranties were breached as found below, giving rise to plaintiffs’ cause when the breach was discovered, or reasonably should have been discovered within § 5833 of the Revised Judicature Act (CLS 1961, § 600.5833 [Stat Ann 1962 Rev §27A.5833]).
As against defendant Slavik’s claim that this action was not commenced within six years after discovery of the first leak of the roof, we find that Division 2 correctly applied the rule of Felt v. Reynolds Rotary Fruit Evaporating Company (1884), 52 Mich 602. The rule of that case was not changed or affected with advent of mentioned § 5833. Instead, § 5833 was expressly based upon the rule of Felt v. Reynolds and intended, by the new statutory language, to apply Felt’s rule in favor of any victim of the breach of a warranty of quality or fitness. For verification see the committee comment appearing under § 5833 (MCLA § 600.5833 [Stat Ann 1962 Rev § 27A.5833].).
Affirmed accordingly. Costs of all courts to plaintiffs.
T. E. Brennan, C. J., and Dethmers, Black, T. M. Kavanagh, Adams, and T. G. Kavanagh, JJ., concurred.
Kelly, J., did not sit in this case. | [
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Bashara, J.
Defendants, Earl E. Hocquard and Gene E. Mitchell, were convicted by a jury of attempted prison escape. MCLA 750.193; MSA 28.390. Our Court affirmed the conviction in an order issued on January 25, 1974. The Michigan Supreme Court vacated the order and remanded for rehearing. Later the Michigan Supreme Court amended their order to limit reconsideration to the issues of the scope of cross-examination of defendant Hocquard, the excluded defense of du ress, and the denial of separate trials. The facts are set out in a discussion of the issues.
The first issue presented is whether the trial judge erred in requiring Hocquard to remain on the witness stand for cross-examination after denying Hocquard’s offer of proof on the defense of duress. Hocquard took the witness stand in his own defense and testified to his name and address. Defense counsel then inquired into Hocquard’s medical history prior to the attempted prison escape. The prosecutor objected to the question on the ground that such inquiry was immaterial. The trial court ruled that the defense of duress was available in limited circumstances as a defense to prison escape and agreed to hear an offer of proof. Accordingly, the jury was excused and Hocquard made an offer of proof on the defense of duress. After the offer of proof the trial judge ruled that Hocquard’s allegations did not satisfy the elements of the defense of duress. At this point defense counsel stated, "I’m wondering if he’d be on the stand, excused or remain here.” The court ruled that Hocquard was still subject to cross-examination and brought back the jury. On cross-examination, without objection, Hocquard admitted all the elements of the crime.
Hocquard contends that he took the stand for the limited purpose of making an offer of proof on the defense of duress. Once the court ruled that the defense of duress was not available there was no reason for Hocquard to testify. Therefore, requiring Hocquard to submit to cross-examination violated his privilege against self-incrimination.
The record discloses nothing to indicate that Hocquard initially took the stand for the limited purpose of making an offer of proof on the defense of duress. Defense counsel should have announced that he was proposing his witness for the sole purpose of a limited evidentiary hearing on the question of the defense of duress. Once the defendant assumed the stand he waived his constitutional right to refuse to answer any question that may be material to the case and which would, in the case of any other witness, be legitimate cross-examination. People v Roger Johnson, 382 Mich 632; 172 NW2d 369 (1969), cert den 397 US 1079, 90 S Ct 1533; 25 L Ed 2d 816 (1970).
We must determine whether the procedure of defense counsel allowing the defendant to take the stand without attempting to limit the scope of examination was so injurious that, but for this action, the defendant might not have been convicted. People v Degraffenreid, 19 Mich App 702; 173 NW2d 317 (1969). The evidence, excluding the confession on the witness stand, shows that Hocquard did attempt to escape from prison. Two guards identified the defendant as the individual who came to the main gate dressed as a guard and attempted to leave the prison. Three other guards testified to seeing the defendant dressed in a guard uniform at the control center. The evidence tended to show that the defendant attempted to obtain a pass at the control center to leave the prison. When the defendant could not produce identification he was taken into custody. The evidence is overwhelming that the defendant would have been convicted even if defense counsel had not proceeded as he did.
The next issue presented is whether the trial court erred in refusing to allow the jury to consider Hocquard’s offer of proof on the defense of duress. He attempted to show that he had a medical history of back problems and that he was periodically treated by Dr. Frank Walker. Hocquard re-injured his back a month before the prison escape while working in the prison tin shop. He described the pain as so excruciating that he had difficulty sleeping at night. Hocquard testified that he requested help in obtaining medical attention from his shop supervisor and the security officer in the tin shop. A letter was obtained from Dr. Walker documenting Hocquard’s back problems and copies of the letter were sent to the Prison Hospital Administrator and the Director of the Department of Corrections. Still Hocquard received no medical treatment. At the time of his attempted escape Hocquard testified that the pain was so severe that he could not bend at the waist. At the close of the offer of proof the trial court ruled that Hocquard’s physical condition did not satisfy the elements of the defense of duress. Apparently, the trial judge did not believe that Hocquard’s physical injury was of such a nature to induce a well founded apprehension of death or serious bodily harm, which is an element of the defense of duress.
In the past courts have refused to recognize defenses to prison escape based upon unsanitary and unhealthy conditions, State v Davis, 14 Nev 439 (1880), or intolerable living conditions and brutal and inhuman treatment by guards, People v Whipple, 100 Cal App 261; 279 P 1008 (1929), or inadequate medical attention. State v Palmer, 45 Del 308; 72 A2d 442 (1950). The rationale has been founded on public policy. See State v Palmer, supra at 310, 72 A2d at 444. We reject public policy considerations that condone and sanction inhuman treatment of prisoners incarcerated in penitentiaries.
The cases of People v Harmon, 53 Mich App 482; 220 NW2d 212 (1974), lv granted 392 Mich 817 (1974), and People v Lovercamp, 43 Cal App 3rd 823; 118 Cal Rptr 110 (1974), have respectively allowed the defenses of duress and necessity to prison escape arising out of threats of homosexual attack. We believe that the defense of necessity is applicable to those situations where a prisoner had been denied requested medical care. However, we hold that the defense of necessity is a very limited defense to the crime of prison escape or attempted prison escape. It may only be considered by the trier of fact where there is a prima facie showing of evidence to support each and every one of the following elements:
1. "The compulsion must be present, imminent and impending, and of such a nature as to induce a well-grounded apprehension of death or serious bodily harm if the act is not done. A threat of future injury is not enough.”
2. "There is no time for a complaint to the authorities or there exists a history of futile complaints which make any result from such complaints illusory;
3. "There is no time or opportunity to resort to the courts;
4. "There is no evidence of force or violence used towards prison personnel or other 'innocent’ persons in the escape; and
5. "The prisoner immediately reports to the proper authorities when he has attained a position of safety from the immediate threat.” (Footnote omitted.)
The facts presented in the offer of proof show that there existed a history of complaints seeking medical treatment and that no force or violence was used in the prison escape. The element of whether Hocquard was faced with a well grounded apprehension of death or serious bodily harm is "in all but the clearest cases, to be decided by the trier of fact taking into consideration all the surrounding circumstances, including the defendant’s opportunity and ability to avoid the feared harm”. People v Harmon, supra, at 486. While in retrospect the trial judge may have been .in error in making the determination himself, People v Harmon, supra, had not been decided and was not available for reference. However, the record discloses no reason why Hocquard would not have had the time or opportunity to resort to the courts for a writ of mandamus ordering prison officials to provide medical treatment. During the thirty-day period prior to the prison escape when Hocquard was sending letters and requesting help, he could have very easily resorted to the courts. Therefore, the trial judge properly excluded the defense of necessity from the jury.
The final issue is whether the trial judge erred in denying both defendants’ motion for severance. Defendants were represented by the same counsel. One week before trial defense counsel moved for severance because Mitchell was asserting the defense of alibi which was at variance with Hocquard’s defense of necessity. The defenses were inconsistent as shown when Hocquard took the stand. On cross-examination Hocquard was asked a series of questions revolving around the identity of the second man in the prison escape. Hocquard refused to answer these questions. However, the inference was raised that Mitchell was the second man. Defense counsel was then in the precarious position of either attacking the credibility of Hocquard to protect Mitchell’s interest or to let Hocquard’s testimony go unchallenged at the expense of Mitchell. Defense counsel chose the latter.
It must first be recognized that effective assistance of counsel guaranteed by the Sixth Amendment and made applicable to the states by the Fourteenth Amendment "contemplates that such assistance be untrammeled and unimpaired by a court order requiring that one lawyer shall simultaneously represent conflicting interests”. Glasser v United States, 315 US 60, 70; 62 S Ct 457; 86 L Ed 680 (1942). Furthermore, where co-defendants’ defenses are inconsistent and the trial court is fully advised of the inconsistency before trial, it may be an abuse of discretion not to grant separate trials. People v Markham, 19 Mich App 616; 173 NW2d 307 (1969), lv den 383 Mich 804 (1970).
When defense counsel failed to impeach the credibility of Hocquard, it only amplified the inconsistency of the defenses of the parties. There was no prejudice to Hocquard since counsel pursued his theory of the defense. However, in defense counsel’s pursuance of Hocquard’s theory of defense he seriously prejudiced Mitchell when he failed to impeach Hocquard’s credibility.
Accordingly, defendant Mitchell’s conviction is reversed and remanded for a new trial. Defendant Hocquard’s conviction is affirmed.
392 Mich 804 (1974).
393 Mich 762 (1974).
The difference between the defenses of duress and necessity is that the source of compulsion for duress is the threatened conduct of another human being, while the source of compulsion for necessity is the presence of natural physical forces. 43 U Cinc L Rev 956, 960. Since Hocquard’s theory of defense is that the denial of medical attention was the compulsion for his attempted escape, the proper name of the defense is necessity. Several terms have been used by courts to denote defenses based on compulsion, most commonly "duress”, "necessity”, “coercion”, and “compulsion”. U Cinc L Rev, supra, p 957, n 2. Michigan recognized the defense of compulsion in People v Merhige, 212 Mich 601; 180 NW 418 (1920). Since compulsion includes necessity this is not a recognition of a new defense in Michigan.
People v Merhige, 212 Mich 601, 610-611; 180 NW 418 (1920).
Elements two thru five are taken from People v Lovercamp, 43 Cal App 3rd 832; 118 Cal Rptr 110 (1974).
The element of return need not be considered since Hocquard failed to escape.
Parshay v Marquette Prison Warden, 30 Mich App 556, 558; 186 NW2d 859 (1971), recognized that mandamus is proper where there is a "clear, legal right in the plaintiff or a clear, legal duty to act or desist, requiring no exercise of discretion on the part of the defendant”. People v Bland, 52 Mich App 649, 656; 218 NW2d 56 (1974), held that a convicted criminal has a right to medical treatment while in prison and that denial of such treatment violates the Eighth Amendment protections against cruel and unusual punishment. Therefore mandamus under GCR 1963, 712 is the proper procedure for a prisoner seeking medical attention. | [
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Per Curiam.
On August 8, 1973 plaintiffs filed a complaint in Manistee County Circuit Court seek ing an accounting by defendant, as trustee, of funds alleged to be contained in an inter vivos trust. This trust had allegedly been created on December 21, 1970, by Ella Kelley, the wife of defendant, and mother of plaintiff, Doris Allen, while Mrs. Kelley was undergoing hospital care for a severe illness. Mrs. Kelley executed an agreement which provided that the trust res would consist of "[a]ll the assets of settlor which have heretofore or which may be placed in joint ownership with one or more of said trustees”. The agreement stated further that the assets would be used to care for the settlor during her life and that, upon her death, defendant would receive a life estate in the family homestead and plaintiffs would receive all the remaining assets.
The plaintiffs to this action are also trustees to the agreement. The conflict arose over approximately $12,000 which the settlor had received in October, 1971, as the vendor of a land contract. This money was deposited in accounts held jointly by settlor and defendant. Because the money was contained in joint accounts, plaintiffs claimed it was part of the trust res and should have been distributed to them upon the death of Mrs. Kelley.
At trial, plaintiffs contended that the trust agreement was controlling or, in the alternative, if it were not its existence was indicative of the fact that the settlor had not intended to place the money in joint accounts and thus to give defendant the right of survivorship. Defendant contended that the trust agreement was invalid because the settlor had not known what she was signing and had, thus, not validly executed it. The trial court, on September 4, 1974, dismissed plaintiffs’ complaint and ordered that all of the personal property held jointly by defendant and his deceased wife be the property of defendant and not be subject to any claims of the plaintiffs.
In his opinion, the trial judge stated:
"The trust agreement under which the plaintiffs seek relief has no effect upon any joint property or property owned by the defendant husband. The trust agreement would only be effective on any property owned solely by the wife in her own name and which would become part of her estate and then, in turn, go to her heirs under the trust agreement in Probate Court.”
From this passage, it appears that the trial court, at once, held the trust valid, but awarded all property jointly held by the defendant and the settlor to defendant. The trial court, thus, held, that, when the settlor placed funds in joint bank accounts with defendant, she intended to give defendant the right of survivorship in these funds and did not intend them to become part of the trust res. Such a holding would appear to be inconsistent with the express terms of the trust agreement. This inconsistency could be reconciled by reference to MCLA 487.703; MSA 23.303, which provides that:
"The making of the deposit in [a joint account] shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding, to which either such banking institution or surviving depositor or depositors is a party, of the intention of such depositors to vest title to such deposit and the additions thereto in such survivor or survivors.”
The trial court, however, did not make specific reference to this statute.
We also find that the court did not make any findings concerning the presence or absence of undue influence or as to whether the trust agreement was validly executed. Such specific findings of fact are required by GCR 1963, 517.1. That section provides in pertinent part:
"In all actions tried upon the facts without a jury or with an advisory jury, the court shall find the facts specifically and state separately its conclusions of law thereon and direct the entry of the appropriate judgment. It will be sufficient if the court makes brief, definite, and pertinent findings and conclusions upon the contested matters without over elaboration of detail or particularization of facts. If an opinion or memorandum decision is filed, it will be sufficient if the findings and conclusions appear therein. The clerk shall notify the attorneys for both parties of the findings of the court. * * * Findings of fact shall not be set aside unless clearly erroneous. In the application of this principle regard shall be given to the special opportunity of the trial court to judge the credibility of those witnesses who appeared before it.”
It is mandatory for a trial judge in an action tried upon the facts without a jury to make specific findings of fact. Thayer v Barber’s Flying Service Inc, 40 Mich App 326; 198 NW2d 761 (1972), Nicpon v Nicpon, 9 Mich App 373; 157 NW2d 464 (1968). Cf. Burdick v Hartwig, 37 Mich App 704; 195 NW2d 334 (1972), reversed and vacated on order, 387 Mich 770 (1972). Without such findings, we are unable to properly exercise our powers of review. We, therefore, are constrained to remand this case to the trial court so that it may make specific findings of fact pursuant to GCR 1963, 517.1.
Remanded. Costs to abide the outcome. We retain jurisdiction. | [
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Quinn, J.
Defendant was charged with first-degree murder, MCLA 750.316; MSA 28.548. His jury trial resulted in his conviction of second-degree murder, MCLA 750.317; MSA 28.549. He was sentenced and he appeals on ten allegations of error.
One allegation of error is determinative of this appeal and obviates a recitation of the facts. During cross-examination of defendant, the prosecuting attorney was permitted to question defendant about arrests that did not result in convictions. This was reversible error, People v Falkner, 389 Mich 682; 209 NW2d 193 (1973).
In view of the foregoing, we choose not to discuss the remaining issues.
Reversed and remanded.
T. M. Burns, P. J., concurred. | [
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Bashara, J.
Plaintiffs appeal from a jury verdict of no cause of action. The plaintiffs, Lester and Wanda Massey, allege injuries when their tandem bicycle was struck by defendant’s pick-up truck.
The plaintiffs were riding their tandem bicycle on July 24, 1972, at about 4:40 p.m., in an easterly direction, but in the westbound lane of Holmes Road. Mr. Massey was in the front seat, control ling the direction of the vehicle, while Mrs. Massey was seated at the rear, assisting with the pedaling. Both plaintiffs were able to brake the bicycle.
Defendant was stopped at a stop sign on southbound Ridge Road intersecting with Holmes. Defendant testified that he "looked to the right, left, and the right. I didn’t see anybody. I wouldn’t expect anybody to be going the wrong way in the right-hand lane at that time, and I started to move”.
The defendant started to move just as the plaintiffs approached the intersection. Plaintiff Lester Massey indicated that he saw the truck starting to move toward them and turned his wheel to the right, but was unable to avoid the collision which threw the cyclists to the ground. The defendant testified that he had just started up and was proceeding at about four miles per hour when he caught sight of the plaintiffs and immediately applied his brakes.
A witness to the accident indicated that the bicycle was about 18 inches from the shoulder of the road, and that the Masseys did not change direction before the impact. He also testified that the plaintiffs appeared to be looking straight ahead and that the defendant appeared not to see them until just prior to the impact.
The allegations of error deal with the exclusion or inclusion of jury instructions and evidence by the trial judge. They will be dealt with seriatim.
I
Plaintiffs first contend that the trial judge erred in refusing to instruct the jury on the "last clear chance” doctrine. The elements of the doctrine are well stated in Papajesk v Chesapeake & Ohio R Co, 14 Mich App 550, 556; 166 NW2d 46 (1968), lv den 381 Mich 809 (1969):
"(1) Plaintiff is in a position or situation which has become dangerous. (2) Defendant knows or by the exercise of ordinary care ought to know, of plaintiff’s peril. (3) Defendant must have the means to avoid the harm by the use of ordinary care. (4) Failure of defendant to use due care* when it could be reasonably foreseen that ordinary negligence is likely to cause harm.”
A fifth element was discussed in Kolcon v Smewing, 28 Mich App 237, 240; 184 NW2d 244 (1970), lv den 384 Mich 830 (1971). Both parties rely on this case to support their respective positions. Kolcon quoting Davidson v City of Detroit, 307 Mich 420, 430; 12 NW2d 413 (1943), states:
" '[Plaintiff's negligence must have put her in a position of danger, [and] must have ceased to operate as the proximate cause of the accident * * * ”
The negligence of the plaintiffs in the instant case was clearly negligence per se in violation of MCLA 257.660(a); MSA 9.2360(a), which requires a person to ride a bicycle "as near to the right side of the roadway as practicable”. Since plaintiffs’ bicycle was at all times on the left side of the roadway, the negligence continued until the impact. Therefore, plaintiff’s negligence never ceased to be the proximate cause of the accident as re quired by Davidson v City of Detroit, supra, and Kalcon v Smewing, supra.
It should be further noted the record reveals that the defendant was unaware of plaintiffs until a moment before the impact. Defendant’s truck was stopped at the stop street. It started and collided with the tandem bike at a point only one or two feet into the intersection. It is hardly likely that the defendant knew or had reason to know of plaintiffs’ peril as required in Papajesk v Chesapeake & Ohio R Co, supra. We find no error in the trial judge’s refusal to instruct on the "last clear chance” doctrine.
II
Plaintiffs next allege as error the trial judge’s instruction that the negligence of the husband should be imputed to the plaintiff wife under a theory of joint enterprise.
The trial judge instructed the jury as follows:
"I instruct you, members of the jury, that at the time of this accident the plaintiffs were engaged in a joint venture. If you find that either of the plaintiffs were negligent, that such negligence was a proximate cause of the accident, then both plaintiffs should be barred from recovery, and your verdict would be for the defendant.”
We are thus faced with what appears to be a very novel question; Is the negligence of the rider of the front seat to be imputed to the back seat rider of a tandem bicycle under the theory of joint enterprise?
Plaintiffs urge that the requirements set forth in Boyd v McKeever, 384 Mich 501; 185 NW2d 344 (1971), be applied here. However, Boyd v Mc Keever, concerned itself with establishing a joint enterprise between a driver and passenger of an automobile. The possibility of control is much more remote in that instance.
We believe that the facts and holding of Flager v Associated Truck Lines, Inc, 52 Mich App 280; 216 NW2d 922 (1974), lv den 392 Mich 810 (1974), comes closest to the factual situation in our case. There two girls were riding on a motor scooter. One girl stood on the front of the scooter and operated the throttle and handle bars. The other girl sat on the seat and operated the brakes. The scooter went out of control, collided with a truck, and the seated girl was killed. The trial court ruled that as a matter of law the seated girl should be considered as an operator of the motor scooter.
The Court of Appeals in Flager, at 283-284, speaking through Judge Bronson, quoted Boyd v McKeever, supra, and differentiated from that case in the following language:
"The next problem concerns that question of 'joint venture’ in motor vehicle passenger cases involving a claim of negligence. This was recently discussed in Boyd v McKeever, 384 Mich 501, 506, 507; 185 NW2d 344 (1971), where the Court said:
" 'While there may be extraordinary facts in which an equal right of control of a motor vehicle exists between a driver and a passenger, * * *
" '[W]e hold that while the right of control of the driver of a car by a passenger may be established upon the facts in a particular case, it may not be presumed.’
"This case involves extraordinary facts. It is clearly an exception to the general rule established in Boyd, supra. In addition to both girls being 'operators’, they were clearly engaged in a joint enterprise, and the liability of the 'driver’ can be imputed to the 'passenger’. The facts also meet the criteria in the test estab lished in Boyd. The scooter was merely the tool for carrying out the prearranged plan and each girl shared in the control of this tool. Lauer v Green, 38 Mich App 81; 195 NW2d 781 (1972).” (Footnote omitted.)
Clearly our case involved extraordinary facts as well. Testimony revealed that both the front and rear rider could supply locomotive power through front and rear pedals. While the front driver had hand brakes, and foot brakes, the rear driver had foot brakes and could effectively stop the vehicle.
Finally, logic must prevail in this unique situation. We are confronted with a "bicycle built for two”. Mrs. Massey could exert positive physical application to the starting or stopping of the vehicle. Both Mr. and Mrs. Massey acknowledged that each had an equal voice in the use of the bicycle and there was general agreement as to how it was to be used.
We, therefore, hold that the trial court did not err, under the facts of this case, in instructing the jury that the operators and riders of a tandem bicycle were engaged in a joint enterprise.
Ill
Plaintiffs claim that the trial judge erred in instructing the jury that Mr. and Mrs. Massey were required to use greater care if they were riding on the wrong side of the road in violation of the statute, and that the court improperly introduced defendant’s theory of assumption of the risk to the jury.
Reviewing the instructions as a whole, we find no reversible error. It is not disputed that the plaintiffs were traveling on the wrong side of the road, in contravention of the statute. If anything, an analysis of the complained-of instructions might be more likely to be prejudicial to the defendant than to the plaintiffs.
IV
Finally, plaintiffs argue that the trial court’s refusal to allow testimony from the investigating police officer as to the custom and usage of riding bicycles against traffic in Michigan was error.
We reject this contention. Clearly such evidence is inadmissible where the statute has mandated a course of action other than that which the testimony sought to show. See Hardaway v Consolidated Paper Co, 366 Mich 190; 114 NW2d 236 (1962), and Kubasinski v Johnson, 46 Mich App 287; 208 NW2d 74 (1973).
Affirmed. Costs to defendant;
The doctrine of "last clear chance” has been used synonymously in Michigan with gross negligence, subsequent negligence, discovered negligence, discovered peril and the humanitarian rule. LaCroix v Grand Trunk Western R Co, 379 Mich 417, 423; 152 NW2d 656 (1967), Leemon v Leemon, 56 Mich App 424, 426; 224 NW2d 328 (1974), Papajesk v Chesapeake & Ohio R Co, 14 Mich App 550, 555; 166 NW2d 46 (1968). | [
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D. E. Holbrook, Jr., J.
Defendant was convicted on March 14, 1974, following a bench trial, of larceny in a building, MCLA 750.360; MSA 28.592. She was sentenced to one year probation and payment of court costs. Defendant appeals as of right.
Prior to September 17, 1973, the defendant had served as the bookkeeper and office manager for radio station WIID for 3-1/2 years. On that date, she was fired by the station manager because he was dissatisfied with the quality of her work. A dispute arose between the defendant and the radio station concerning her final paycheck which she did not receive until she had shown the new bookkeeper some of the intricacies of the station’s bookkeeping system.
The basic testimony linking the defendant to the larceny was that of Steven Wild, another station employee. He testified that on Sunday, November 25, 1973, he was in charge of the station. He observed the defendant enter the lobby of the station where the defendant informed Mr. Wild that she had come to take some entertainment passbooks that were in the station manager’s office. To get into the manager’s office it was necessary to open combination locks on two doors. Mr. Wild further testified that he observed the defendant get into a car with several of the passbooks. The station manager testified that the combinations had not been changed since the defendant had been fired.
The defendant interposed an alibi defense. She claimed that she and her mother had gone to visit her grandparents’ graves near North Branch that day. In support of this alibi, defendant and her mother testified as to the details of the trip. Although neither was certain as to many of the intermediate times, the beginning and ending of their trip was verified by a neighbor. Her mother’s sister also testified that they had stopped by her apartment in Troy both going to and coming from the cemetery._
Defendant initially contends that the trial court made erroneous findings of fact. Defendant points out two statements of the trial court that are not supported by the evidence. First, the trial court said that all the defendant’s alibi witnesses were related to the defendant. On this point the defendant is correct but later the court recognized that one of the alibi witnesses was a neighbor. There is no evidence in the record to suggest that the defendant’s neighbor was related to the defendant. Second, the trial court stated that a certain statement made by the complaining witness concerning his reasons for discharging the defendant had been corroborated by another witness. The defendant is again correct in that the second witness never did make such a statement.
On appeal, this Court will only reverse the trial court if its findings of fact are clearly erroneous. GCR 1963, 517.1, People v Jackson, 390 Mich 621, 627; 212 NW2d 918, 921 (1973). Although these statements are clearly erroneous, we must look at all the trial court’s findings to place these statements in their proper context. People v Jackson, supra, see People v Rogers, 60 Mich App 652; 233 NW2d 8 (1975). Looking at these statements in the context of all of the trial court’s findings, we do not find them to be reversible error.
In a lucid set of findings of fact the trial court explained why it chose to accept Steven Wild’s testimony. It stated that it found him convincing, unshakable on cross-examination, and without interest in the case. In order to believe Mr. Wild it was necessary to disbelieve the defendant’s alibi. Although the trial court once misstated the neighbor’s relationship with the defendant, most parts of her testimony were consistent with either version of the day’s happenings. All the neighbor was able to testify to was that the defendant and her mother left their home around 12:30 p.m. and returned home before 6 p.m. and that they had asked her the day before to accompany them to the cemetery. The other alibi witnesses were all related to the defendant. The other misstatement went to only the collateral issue of why the defendant was discharged in September and not to the central issue of the events of November 25.
Defendant also contends that the trial court did not apply the same standard to all the witnesses’ testimony. In weighing the defendant’s witnesses’ testimony the trial court spoke of their interest in the outcome. Even though the defendant claims that the trial court did not apply that standard to Mr. Wild’s testimony, the defendant is mistaken. Although not saying so in so many words the trial court found that Mr. Wild’s only interest was in telling the truth. Since the trial court has the opportunity to observe all the witnesses, while we must look at a cold record, we will not disturb the trial court’s decision of whom to believe when there is a conflict in testimony. Accord, People v Ballenberger, 51 Mich App 353; 214 NW2d 742 (1974), lv den 392 Mich 753 (1974).
The defendant also alleges that the trial court applied the wrong standard in judging her alibi defense. The standard that it applied was that an alibi is "the easiest defense to establish but the hardest to disprove”. In People v McCoy, 392 Mich 231, 235; 220 NW2d 456, 460 (1974), the Supreme Court disapproved this standard for jury instructions. However, the Supreme Court did not require that McCoy be made retroactive. People v McCoy, supra, at 240. Thus, even though the trial court used this standard in weighing the testimony of the witnesses, there was no error, since the trial in this case occurred over four months before People v McCoy, supra, was decided. People v Phelps, 57 Mich App 300; 225 NW2d 738 (1975).
Defendant’s fourth allegation of error concerns the failure of the prosecution to endorse and produce two "res gestae” witnesses. It is the duty of the prosecution to endorse and call all res gestae witnesses or satisfactorily explain why they cannot be produced. MCLA 767.40; MSA 28.980; Hurd v People, 25 Mich 405, 417 (1872), People v Koehler, 54 Mich App 624, 637; 221 NW2d 398, 404-405 (1974). The two alleged res gestae witnesses were disclosed by Steven Wild’s testimony. They were the station’s chief engineer, to whom Mr. Wild made his first report, and an unidentified person who was in the control room during the incident.
The term res gestae witness has been defined to include a person who is present at the scene of the crime at the time of the crime and has occasion to observe its surroundings. People v Harrison, 44 Mich App 578; 205 NW2d 900 (1973), People v Jesse Jackson, 30 Mich App 438; 185 NW2d 897 (1971), lv den 385 Mich 766 (1971), see People v Tann, 326 Mich 361; 40 NW2d 184 (1949). However, the unidentified person in the control room does not come within this definition. Mr. Wild’s testimony indicated that the control room was on the other side of the building from the offices and has no view of either the manager’s office or the lobby. Consequently, this person had no opportunity to observe what occurred in the lobby or the office.
The defendant argues that since Mr. Wild first communicated the facts to the chief engineer, the chief engineer is a res gestae witness. Although it is not necessary to being a res gestae witness that the person be at the scene of the crime at or near the time of the crime, the chief engineer had no independent knowledge of any part of the criminal transaction. People v Harrison, supra, see People v Ake, 362 Mich 134; 106 NW2d 800 (1961), People v Kayne, 268 Mich 186; 255 NW 758 (1934), cf. People v Jelks, 33 Mich App 425; 190 NW2d 291 (1971) lv den, 386 Mich 768 (1971). The only thing to which this witness could testify is that he received a phone call from Mr. Wild and made a phone call to the station manager. What was said during either phone call would be hearsay. McCormick, Evidence (2d ed), § 246. Since neither of these potential witnesses was a res gestae witness, the prosecution had no duty to either endorse or call them.
People v Milton, 393 Mich 234; 224 NW2d 266 (1974), answers negatively defendant’s contention that district courts cannot issue arrest warrants or conduct preliminary examinations.
We find no error. Affirmed.
Entertainment passbooks are a book of coupons entitling the holder to receive a discount at various area business establishments. The discounts almost always take the form of the holder receiving a reduced price on the second item of a two-item bill. The station used the passbooks as giveaways in promotions.
North Branch is a small town in Lapeer County approximately 55 miles north of Detroit. The defendant and her mother are residents of Westland, a suburb of Detroit in western Wayne County. | [
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N. J. Kaufman, J.
On June 8, 1973, defendant was convicted by a Saginaw County Circuit Court jury of manslaughter, MCLA 750.321; MSA 28.553. He was subsequently sentenced to a term of from 7 to 15 years and now appeals of right.
Defendant’s conviction arose from the death of William Schindehette. Schindehette died in the early morning hours of November 5, 1972, following emergency brain surgery which was performed several hours after he had engaged in a fight with defendant at the Golden Glow Ballroom in Saginaw County. The conflict began at about 9:30 p.m. when defendant saw the decedent at the ballroom and accused him of having, several months earlier, stolen money from defendant’s friends. The argument over this accusation led to some pushing and wrestling, but the two were quickly separated by onlookers. However, shortly after this fight defendant and Schindehette again engaged in a fracas during which they exchanged punches and were again separated by bystanders.
Shortly thereafter, defendant and the victim again confronted each other. At trial, a number of eyewitnesses described this last fight. Several testified that defendant had hit Schindehette with a bottle. Two others claimed that Schindehette hit defendant with a chair, one indicating that this act was in retaliation to defendant’s attack.
Defendant took the stand and testified that he "went at” Schindehette after he had picked up a chair. Defendant stated that the victim had hit him in the face with the chair but that defendant couldn’t remember having hit the victim with a bottle. He claimed that his recollection, of the fight was hazy.
A little while after the fight, Schindehette went home with his fiancée. He complained of head pains, and she drove him to a Saginaw hospital for treatment at about 11:45 p.m. Upon admittance, decedent’s fiancée stated that decedent had fallen on wet leaves and had hit his head on a car. At trial, she claimed that this statement was a fabrication.
Several witnesses were called to describe the course of decedent’s treatment. Dr. William Jackson testified that he treated decedent in the hospital’s emergency room and recalled that, at the time, the victim had told him that he was then undergoing methadone treatment for drug addiction. Dr. Jackson maintained that it was his opinion, based upon his .observation of the victim at the time of this treatment, that Schindehette was not suffering from an overdose of a narcotic drug. When Schindehette’s condition appeared to worsen noticeably, Dr. Jackson called for the assistance of a neurosurgeon, Dr. E. Malcolm Field.
Dr. Field testified that he had been called to the hospital early on the morning of November 5, 1972 and shortly thereafter performed an emergency operation in which he opened decedent’s skull in an attempt to alleviate decedent’s vomiting and respiratory failure. This operation revealed a blood clot on the brain and also disclosed a suture line separation which Dr. Field attributed to a recent external force. Although the witness removed the blood clot from Schindehette’s brain, the victim died shortly thereafter. Dr. Field speculated as to a sequence of events leading to Schindehette’s death: a blow to the head, a fracture and probable contusion of the brain triggering a seizure, resulting in cerebral edema (swelling), causing his death. He agreed that a person’s use of narcotic drugs could depress the brain stem which controls respiration and would make that individual much more susceptible to respiratory arrest. On cross-examination he stated that it was the swelling of the victim’s brain, not the clot, which killed him because the clot itself was not large enough to cause his death.
Dr. Field also related that he requested the pathologist to obtain a sample of decedent’s blood or urine. The doctor also agreed that methadone or heroin in sufficient dosage could decrease or end a person’s respiration. On redirect-examination, the witness averred that, in his opinion, it was probably the blow to decedent’s head which triggered the chain of events resulting in his demise.
Concluding the medical portion of plaintiff’s testimony was Dr. Ulrich Mosher, the pathologist who performed the autopsy on Mr. Schindehette. According to Dr. Mosher, his postmortem examination revealed a hemorrhage of decedent’s brain and acute edema, but disclosed no skull fracture. It was Dr. Mosher’s opinion that the injury to the victim’s head caused the blood clot in his brain, and he further opined that death was caused by acute cerebral edema. His examination also revealed a contrecoup injury to the brain which could have been caused by a blow to the head. Such an injury occurs when a blow to one side of the head causes the brain to strike the side of the skull directly opposite from the original point of external impact. The injury to the left side of decedent’s brain could have been caused by an injury to the head or by the surgery which decedent had undergone prior to his death.
Dr. Mosher stated that, in his opinion, the victim’s possible use of methadone and any possible recent use of heroin — short of an overdose — would not influence his diagnosis of the cause of decedent’s death. On cross-examination, Dr. Mosher stated that he had removed blood and urine samples from decedent’s body but did not know where they were at the time of trial and did not know where any results were from tests which might have been run on the samples. Dr. Mosher stated that the autopsy had disclosed three needle marks on decedent’s arm. These marks, he opined, were made two or three hours prior to the autopsy, while decedent was in the hospital.
At trial, defendant contended that the blow to Schindehette’s head did not cause his death. De fendant argued that death was precipitated by some combination of heroin and alcohol. To this end, defendant introduced Darryl Morgan, who was, at the time, in the same prison as defendant. Morgan stated that he had been at Schindehette’s apartment at about 3:15 p.m. on November 4, 1972, the afternoon prior to death, and had seen Schindehette and his fiancée inject themselves with heroin. Decedent’s fiancée had testified that, while both she and decedent had used heroin, both had stopped doing so and had not injected themselves for some time prior to November 4, 1972 or on that date.
I
Defendant’s first claim is that plaintiff’s inability to produce several trial exhibits on appeal deprives defendant of his right to appeal and constitutes reversible error. Defendant cites GCR 1963, 812.4 which provides:
"Exhibits. Within 20 days after filing of claim of appeal, attorneys for appellant or appellee having possession of any exhibits offered in evidence shall file them with the clerk for transmission to the Court of Appeals, as part of the record on appeal, unless by stipulation of counsel, or order of the trial court, it is provided that they shall not be transmitted, or that copies or summaries or excerpts shall be transmitted in lieu thereof, and provided further, that photostatic copies may be filed in lieu of originals of any exhibits, unless the trial court shall otherwise require. Upon final disposition of the case, such exhibits shall be returned to the persons who filed them.”
Defendant bases his claim on the loss by the Saginaw police of six exhibits:
"1. Floor plan of Golden Glow Ballroom, showing the bar room and also the main ballroom.
"2. A Certificate of Death of William Schindehette.
"3. A diagram with four (4) drawings on it; one front, one back and from both sides of the face and skull.
"4. Same as three (3) above.
"5. Exhibit with the signature of Dr. Robert Feeheley, [who treated defendant for facial injuries], content of the exhibit unknown.
"6. Schematic diagrams showing scalp, skull and brain in the frontal section revealing the external-internal table that constitutes the oassis skull and the meninges and the arachnoid as the two parts that constitute the leptomeninges.”
Plaintiff does not dispute the fact that these exhibits cannot be produced. Defendant does not make any averment of bad faith or negligence on the part of plaintiff. Manifestly, plaintiffs failure to produce the six exhibits is violative of Rule 812.4. However, we find no controlling precedent as to whether such a violation requires a new trial. We find most persuasive those cases where the trial transcript has been lost and no settled record can be made pursuant to GCR 1963, 812.2(b). This Court has held that the failure to file a transcript or settled record will not automatically require a new trial. In People v Carson, 19 Mich App 1; 172 NW2d 211 (1969), lv den 383 Mich 780 (1970), defendant attacked the validity of his 1934 guilty plea for which no transcript was available. Although a new trial was ordered, the Court stressed that a new trial would not always be the correct remedy:
"We do not mean to be understood as saying that the unavailability of the transcript of the proceedings at which an accused person was convicted necessarily affects the validity of his conviction. The failure of the state to provide a transcript when, after good faith effort, it cannot physically do so, does not automatically entitle a defendant to a new trial. Norvell v Illinois, 373 US 420; 83 S Ct 1366; 10 L Ed 2d 456 (1963), reh den 375 US 870; 84 S Ct 27; 11 L Ed 2d 99 [1963], United States, ex rel Smart v Pate, 318 F2d 559, 562 (CA 7, 1963), contrast United States v Randolph, 259 F2d 215 (CA 7, 1958).” Id. at 7.
In People v Drew, 26 Mich App 337; 182 NW2d 566 (1970), where defendant attacked his 1958 conviction by alleging that the trial court erroneously found that defendant’s confession was voluntary, this Court applied the same rule. Defendants in both Carson and Drew appealed by leave, because their convictions had occurred prior to the time when convictions in criminal cases were appealable by right. Const 1963, art 1, § 20. The Court in Drew, however, propounded a "test” for such claims raised in appeals by right:
"Upon direct appeal the unavailability of a transcript of the trial might so impede enjoyment of a defendant’s Michigan constitutional right of appeal that a new trial might have to be ordered as a matter of course.” (Emphasis supplied.) (Footnote omitted.) 26 Mich App at 341.
See also People v Dunn, 50 Mich App 529; 213 NW2d 832 (1973). In Brown v Forrester Construction Co, 372 Mich 204, 214; 125 NW2d 315 (1963), the Supreme Court required an appellant to show that a delay in transcription caused prejudice sufficient to deprive him of a fair appeal.
We find these opinions equally applicable here. Has plaintiffs failure to file all the required exhibits so prejudiced defendant that the enjoyment of his constitutional right of appeal has been impeded? We think not. Defendant has cited to us no prejudice which will result from the unavailability of the six cited exhibits. All the exhibits were used by expert witnesses for demonstrative purposes, to clarify their trial testimony. The testimony related to the cause of decedent’s death. This testimony is so complete and concise on the record that the exhibits are not necessary to the preparation of defendant’s appeal or to our determination of that appeal.
More serious, however, is an error which defendant has raised only tangentially on appeal. Prior to trial, defendant obtained a trial court order requiring plaintiff to produce the results of an analysis of decedent’s blood and urine which was conducted during the autopsy. In response to questioning by defendant, Dr. Mosher, the examining physician, stated that the test results were not available at trial. Plaintiff gave no reason for the nonproduction of the results. Dr. Mosher did not testify as to the extent or result of the analysis. Defense counsel neither moved to enforce the trial court’s order nor requested a mistrial, but did, during closing argument, comment on plaintiff’s failure to obey the order. We find the nonproduction of these test results presents potentially reversible error.
In Brady v Maryland, 373 US 83; 83 S Ct 1194; 10 L Ed 2d 215 (1963), the United States Supreme Court held that:
"the suppression by the prosecution of evidence favorable to an accused upon request violates due process where the evidence is material either to guilt or to punishment irrespective of the good faith or bad faith of the prosecution”. Id at 87. (Emphasis supplied.)
Under the Brady line of decisions, the important factors to be considered on appeal are:
"(a) suppression by the prosecution after a request by the defense, (b) the evidence’s favorable character for the defense, and (c) the materiality of the evidence”.
Moore v Illinois, 408 US 786, 794-795; 92 S Ct 2562; 33 L Ed 2d 706 (1972), reh den 409 US 897; 93 S Ct 87; 34 L Ed 2d 155 (1972). Evidence is material if the evidence "could * * * in any reasonable likelihood have affected the judgment of the jury”. Napue v Illinois, 360 US 264, 271; 79 S Ct 1173; 3 L Ed 2d 1217 (1959). See also Giglio v United States, 405 US 150, 154; 92 S Ct 763; 31 L Ed 2d 104 (1972), People v Dorsey, 45 Mich App 230, 235-236; 206 NW2d 459 (1973), lv den 390 Mich 763 (1973).
Given the fact that plaintiffs intent is irrelevant to our determination, it is clear that, under the Brady-Moore test, plaintiff has suppressed the disputed evidence after a request by defendant and an order by the court for its production. The disputed evidence is material to the contested issues inasmuch as it relates directly to the conflict between the parties’ theories concerning the cause of decedent’s death. The question, therefore, becomes whether the test results would have been favorable to defendant’s case. If the blood and/or urine test demonstrated the presence of morphine and alcohol, they would significantly bolster defendant’s theory that Schindehette died from a respiratory failure induced by a combination of alcohol and heroin, rather than from the blow to his head.
Of course, we do not know the extent or results of these tests. Nor do we know why defense counsel did not move to enforce the order. He may have made a tactical decision to go to trial and argue the nonproduction to the jury. The record gives us no answer. As such, we find the only correct remedy to be a remand to the trial court for an evidentiary hearing. The Michigan Supreme Court in People v Robinson, 390 Mich 629; 213 NW2d 106 (1973), aff'd, 391 Mich 555; 218 NW2d 1 (1974), established a similar remedy to determine the harm resulting from nonproduction of a res gestae witness. This remedy is as applicable to nonproduction of physical evidence as it is to nonproduction of testimonial evidence. Plaintiff shall produce the test results at the hearing. If the results are not available, testimony shall be taken to determine what findings were made. If the tests did, in fact, indicate the presence of morphine, a new trial must be required. If decedent’s blood and urine were not tested for presence of morphine or if the test results negated its presence, the failure to produce the results would be harmless error and defendant’s conviction shall be affirmed.
Finally, if the trial court cannot, to its satisfaction, discover the extent and results of the blood/ urine tests, a new trial shall be ordered because, in such a case, we could not find the error to have been harmless beyond a reasonable doubt. People v Swan, 56 Mich App 22; 223 NW2d 346 (1974).
II
Defendant’s second claim of error is that the court erred reversibly by failing to sua sponte give the jury a self-defense instruction. Plaintiff responds by claiming that defendant, in chambers, withdrew such a defense. We agree. Defense counsel objected* to an attempt by the prosecutor to refute the self-defense theory during closing argument:
[Mr. Kaczmarek, the prosecutor]: "Now, the defense in his opening statement claims self-defense. However, Mr. Drake has stated from the stand that he never struck Mr. Schindehette’s head. However, I would review briefly what the elements of self-defense are.
"First, that the person that uses self-defense is not the aggressor, and, second, that the use of force was—
"Mr. Sturtz [Defense counsel]: Your Honor, I hate to object to counsel’s argument. I believe this matter was discussed in chambers.
"Mr. Kaczmarek: He used it in his opening statement. How can I—
"The Court: Are you withdrawing the element of self-defense?
"Mr. Kaczmarek: Is it on the record?
"The Court: Yes.
"Mr. Kaczmarek: Thank you.”
We find sufficient evidence of a withdrawal of the self-defense claim from this colloquy, in addition to the fact that defense counsel did not refer to self-defense during his closing argument nor did he request a self-defense instruction.
III
We find without merit defendant’s third and final claim of error, that the trial court’s instructions were prejudicial to defendant and inappropriate to his theory of the case. Defendant did not object to the instructions and we may not find error in the absence of manifest injustice. GCR 1963, 516.2. People v McClure, 29 Mich App 361; 185 NW2d 426 (1971), lv den 385 Mich 761 (1971). Having reviewed the challenged portion of the instructions in light of their entire context, People v Tooks, 55 Mich App 537; 223 NW2d 63 (1974), we find no such injustice.
Remanded for proceedings consistent with this opinion. We do not retain jurisdiction.
In People v Dorsey, 45 Mich App 230, 235-236; 206 NW2d 459 (1973), lv den 390 Mich 763 (1973), this Court adopted the test promulgated by the Second Circuit Court of Appeals in United States v Keogh, 391 F2d 138 (CA 2, 1968). Part of that test, while not directly in point, also relies heavily on the materiality of the suppressed evidence:
"2. Suppression of evidence where the evidence is requested by the accused and this request is denied by the prosecuting attorney and the court. This is a violation of due process if the evidence requested is material to the accused’s guilt or punishment irrespective of the good or bad faith of the prosecuting attorney.” (Emphasis supplied.)
Morphine is the end-product resulting from the body’s injestion of heroin. It is important to note that it was defendant’s contention that the blow to Schindehette’s head played no causal role in his death. If defendant had contended that the blow merely aggravated a preexisting condition, defendant would still be responsible for Schindehette’s death since a defendant takes his victim as he finds him. People v Flenon, 42 Mich App 457; 202 NW2d 471 (1972), lv den 388 Mich 801 (1972). | [
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Danhof, P. J.
Defendant Robert Allen Chambers was convicted by a jury on May 9, 1973 of armed robbery. MCLA 750.529; MSA 28.797. On August 24, 1973, he was sentenced to serve 20 to 40 years in prison. The defendant appeals of right. We reverse and remand for trial.
The record indicates that the defendant entered Maury’s Bar in Allen Park, Michigan shortly after 2 a.m. on December 8, 1972. He ordered and drank some beer. The defendant left, but came back with a single shot shotgun. He took money from cash drawers located in the office and placed it in his pockets. The defendant then discharged the shotgun. Thereafter, an employee of the bar jumped the defendant and struggled with him until the police arrived.
At trial, the defendant relied upon intoxication as his defense.
As to the intoxication defense, the trial court initially instructed the jury as follows:
"On the question of specific intent, Ladies and Gentlemen of the Jury, since I have already charged that robbery is a specific intent crime, I charge you that if you find that the defendant’s mental faculties were so far overcome by intoxication that he was not conscious of what he was doing or he did not know what he was doing and he could not entertain the requisite specific intent, he therefore could not be guilty of robbery. It is for you the jury to determine exactly how far if any the mental faculties of the accused were impaired. If he was conscious of what he was doing is for you, the jury, to determine.”
However, during deliberation, the jury requested the trial court to again define the charges. The additional instructions read as to intoxication:
"The defendant’s defense is that he was so intoxicated that he could not form the specific intent to rob.”
No objection to these instructions was made to the lower court by the defendant.
The first issue raised on appeal is whether the trial court committed reversible error by improperly instructing the jury on intoxication under the capacity standard rather than the Cooley standard. As this issue is dispositive of the case on appeal, this Court will not address itself to the other issues raised.
The Supreme Court in People v Crittle, 390 Mich 367, 373; 212 NW2d 196 (1973), stated the applicable test to determine whether the accused has the specific requisite intent by quoting from Justice Cooley’s opinion in People v Walker, 38 Mich 156, 158 (1878):
" 'While it is true that drunkenness cannot excuse a crime, it is equally true that when a certain intent is a necessary element in a crime, the crime cannot have been committed when the intent did not exist * * * if the defendant, for any reason whatever, indulged no such intent, the crime cannot have been committed.’ ”
The Court went on to distinguish between the Cooley test and the capacity test (373-374):
"We come now to the consideration of some of the confusing rules re jury instruction on the effect of drunkenness in specific intent crimes. These rules are expressed in such language as:
" '[T]oo drunk to be capable of forming the statutory intent’ (People v Haley, 48 Mich 495, 497; 12 NW 671 [1882]);
"So intoxicated that they 'did not know what they were doing’ (People v Hearn, 354 Mich 568, 470 [sic]; 93 NW2d 302 [1958]);
" 'So intoxicated * * * that he would be incapable of forming an intent * * * and did not know what he was doing’ (People v Stram, 40 Mich App 249, 252; 198 NW2d 753 [1972]); or
" '[S]o far overcome by the intoxication, that he was not conscious of what he was doing, or if he did know what he was doing, but did not know why he was doing it’ (Roberts v People, 19 Mich 401 [1870]).
"These various rules all have one thing in common. They refer to a capacity standard. Their test is not Justice Cooley’s— '[T]he crime cannot have been committed when the intent did not exist.’ Their test is rather 'the crime cannot have been committed when the intent could not exist’. It is obviously a different standard and not to be followed.
"As a consequence, trial judges would do well to follow Justice Cooley’s language and posit their in structions in terms of whether in the light of defendant’s intoxication he in fact had the required specific felonious intent.”
The trial court in the instant case instructed the jury on intoxication under the capacity test. However, whether this is reversible error under Crittle depends upon whether Crittle is to be given prospective or retroactive effect.
We are not unaware of the recent decision of People v Parsons, 59 Mich App 79; 228 NW2d 852 (1975). In Parsons, the Court determined that Crittle was not intended to apply retroactively to a defendant who was convicted before the decisional date in Crittle. With this determination, we respectfully disagree.
Three traditional factors to determine whether a law should be applied retroactively or prospectively are: (1) the purpose of the new rule; (2) the general reliance on the old rule; and (3) the effect on the administration of justice. People v Hampton, 384 Mich 669, 674; 187 NW2d 404 (1971), and Linkletter v Walker, 381 US 618; 85 S Ct 1731; 14 L Ed 2d 601 (1965). Additionally, Linkletter v Walker, 381 US 618, 621-622, discusses recognized cutoff points for the application of a new ruling:
"Initially we must consider the term 'retrospective’ for the purposes of our opinion. A ruling which is purely prospective does not apply even to the parties before the court. * * * However, we are not here concerned with pure prospectivity since we applied the rule announced in Mapp to reverse Miss Mapp’s conviction. That decision has also been applied to cases still pending on direct review at the time it was rendered. Therefore, in this case, we are concerned only with whether the exclusionary principle enunciated in Mapp applies to state court convictions which had become final before rendition of our opinion.”
The Linkletter court defines final in footnote 5, supra at 622:
"By final we mean where the judgment of conviction was rendered, the availability of appeal exhausted, and the time for petition for certiorari had elapsed before our decision in Mapp v Ohio [367 US 643; 81 S Ct 1684; 6 L Ed 2d 1081 (1961)].”
Even though it was a nonjury case, People v Taskila, 391 Mich 815 (1974), remanded the case to the circuit court for reconsideration in light of Crittle. Taskila was on appeal at the time Crittle was decided. See People v Taskila, 50 Mich App 746; 213 NW2d 760 (1973). Further, the recent case of People v Watson, 59 Mich App 299; 229 NW2d 424 (1975), applied the Crittle ruling to that case, even though the defendant had been convicted prior to the decisional date in Crittle. However, the conviction in Watson had not become final.
The first of the three factors enunciated in People v Hampton, supra, is particularly strong in the instant case. The purpose of the ruling in Crittle is to point out the correct instruction on intoxication in relation to a requisite element of the crime, specific intent, without which there is no crime. This instruction has a direct impact on the guilt or innocence of the defendant. However, as was pointed out in Crittle, there has been general reliance by the trial courts of this state on the capacity standard for over 100 years. Finally, the effect on the administration of justice must be considered. To make Crittle retroactive to cases already finalized "would tax the administration of justice to the utmost”. Linkletter v Walker, supra, at 637. Therefore, in consideration of these factors, the application of Crittle should not be purely retroactive nor purely prospective, but rather retroactive to those cases not yet finalized.
The defendant in the instant case was convicted on May 9, 1973. He now appeals of right to this Court. The decisional date of Crittle was November 21, 1973. The conviction of the defendant had not yet become final. Therefore, the defendant is entitled to the benefit of the Crittle ruling.
In line with People v Crittle, supra, and People v Watson, supra, we hold that the trial court committed reversible error in not properly instructing the jury under the Cooley standard, even though the defendant failed to object in the prior proceedings.
Reversed and remanded for trial.
R. B. Burns, J., concurred. | [
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D. E. Holbrook, Jr., J.
Plaintiff furnished materials to Walker Drywall for two different building projects on which Walker Drywall was acting as a subcontractor. When it failed to pay the plaintiff for the materials, the plaintiff notified the various owners of its intentions to claim liens on the properties. Subsequently, these liens were filed at various dates. When plaintiff moved to foreclose its liens, the defendants argued the plaintiff had forfeited its liens by failing to make a timely reply to their demands for written statements of the amount of labor and materials furnished by the plaintiff. Based on this defense the trial court granted accelerated judgment for the defendant. Plaintiff appeals as of right.
The liens may be grouped into two groupings for convenience: the two filed prior to July 26, 1973, and the one filed subsequently. Plaintiff first notified Holly Hills that it intended to claim a lien on June 10, 1973. On July 10, 1973, a lien was filed pursuant to the notice of intent. On July 26 Holly Hills sent plaintiff a demand for a statement of materials furnished. Plaintiff signed the certified mail receipt for the letter on July 30. No reply was made to the demand until September 14, 1973.
On July 9, 1973, plaintiff notified Holly Hills that it intended to claim a second lien for additional materials. A lien was filed pursuant to this notice on July 20. The written demand, the receipt thereof, and the reply thereto were made concurrently with the July 10 lien.
On July 19, 1973, plaintiff notified Group Building Co. and Barnes Mortgage Investment Co. that it intended to claim a lien on property owned by them. On July 26 the same attorney that was handling the liens on Holly Hill made a similar demand for a statement of materials furnished. On July 27 the lien was filed on this property. Plaintiff acknowledged receipt of the July 26 letter on July 30. As in the other two cases, the reply was made on September 14, 1973.
I
On appeal, plaintiff argues that the demand for the written statement in each case was not sufficiently clear to put the plaintiff on notice as to the information that the defendants desired. MCLA 570.8; MSA 26.288, requires:
"Each person claiming a lien as aforesaid, shall, from time to time, whenever required by such owner * * * or his agent, and within 5 days from demand thereof, furnish such person demanding the same, a written statement of the amount of work and materials furnished to date of statement, and then unpaid * * * under the penalty of a forfeiture of his lien.”
The letters of demand that the defendants sent referred in each case to a notice of intention to claim a lien as of such-and-such date rather than to a lien of a given date. The letters from the defendants to the plaintiff clearly are a demand for the statutory information if the letters comply with the statute.
It is a normal rule of construction in construing the mechanics lien law that the provisions of the statute are to be strictly construed, Frolich v Beecher, 139 Mich 278; 102 NW 736 (1905). However, unlike many other provisions of the lien laws, there is no prescribed form that such a demand must take. All the statute requires is a statement that a demand is being made for the statutory information, United Fuel & Supply Co v Manteuffel, 239 Mich 190; 214 NW 191 (1927).
The letters that the defendants sent complied with the statute. Each letter indicated where the property was located. Furthermore, each letter directed plaintiffs attention to a specific lien, since each lien was derived from a specific notice of intention to claim a lien, and only one notice of intent was sent on a given day. The fact that the plaintiff was able to reply 40 days late without requesting additional information from the defend ant indicates that the letters sufficiently informed the plaintiff as to the lien and property involved.
II
The plaintiff also argues that the statute only requires a reply if the lien has been filed. It is the plaintiff’s contention that one does not claim a lien until the lien is filed. This is a question of first impression in this state. However, we do not need to reach that issue. The plaintiff’s liens pursuant to the June 10 and July 9 notices of intention to claim a lien are clearly covered by the statute since they were filed before July 26. Although the third lien was not created until July 27, it was filed on the same morning that the plaintiff signed the receipt for the letters from the defendants.
Before reaching plaintiff’s issue of when one is claiming a lien it is necessary to determine the effective date of the letters of demand. Even though the letters were dated and mailed on July 26, they were not effective until the plaintiff received them on July 30. This is consistent with the rules for filing an answer to a civil complaint under GCR 1963, 108.1. To hold otherwise, especially in light of the short period for replying, could deprive the lienor of any opportunity to reply since it would be possible for the demand letter to be received after the period for reply had run. Indeed, in this case plaintiff did not réceive the letters until four days after mailing. Given the statutory penalty for failure to comply, due process requires that the date be calculated from the date of receipt of the letter and not the date of mailing in order to give the lienor proper notice. Cf. Mullane v Central Hanover Bank & Trust Co, 339 US 306; 70 S Ct 652; 94 L Ed 865 (1950).
On the same day the plaintiff received the de mand, the third lien was recorded. Plaintiff knew that the lien had been created three days before and thus was outstanding. Thus on July 30, 1973, plaintiff was claiming a lien against the property owned by Group Building Co. and the plaintiff had a statutory duty to reply within five days.
Affirmed. Costs to appellee.
V. J. Brennan, P. J., concurred.
For example:
"Re: Land located in the city of Howell
Livingston County, Michigan
"In regard to a certain Notice of Intention to Claim a Lien dated July 9, 1973, a copy of which was served on Holly Hills Apartments, for materials and labor furnished to Walker Drywall Co. by Bob Ryan Inc. at the above site, a request is hereby made that you furnish Holly Hills Apartments written statements of the amount of material and labor furnished for this site to date of statement and the amount unpaid.”
MCLA 570.5; MSA 26.285, specifically describes the content of a lien form. MCLA 570.1; MSA 26.281, specifically describes the content of a notice of intention to claim a lien form. | [
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M. J. Kelly, J.
Rosie Hardges was killed on July 14, 1967. Defendant was convicted by a jury of second-degree murder, MCLA 750.317; MSA 28.549, on September 12, 1968. On appeal to this Court, his conviction was affirmed. People v Tubbs, 22 Mich App 549; 177 NW2d 622 (1970). Subsequently defendant, in propria persona, forwarded to this Court a "Motion for Peremptory Reversal” in which issues not dealt with in the initial appeal were raised. Treating the document as an application for leave to take a delayed appeal, we granted leave.
The people have continually asserted that since "defendant has had his day in court”, we are without jurisdiction to consider issues which could have been, but were not, raised in the initial appeal. Suffice it to note that this precise argument has been twice rejected in the course of prior proceedings in this very case, once by our Supreme Court, People v Tubbs, 392 Mich 769 (1974). We do not reconsider it.
We have examined the allegations of error. All are without merit except the contention that the trial court erred in not conducting the competency hearing required by MCLA 767.27a(4); MSA 28.966(11)(4). Since the pertinent statutory provisions were enacted by 1966 PA 266, effective March 10, 1967, no retroactivity question is presented.
In the instant case, as in People v Lucas, 393 Mich 522; 227 NW2d 763 (1975), defendant was committed to the Department of Mental Health. As in Lucas, a report was filed with the trial court recommending that defendant be found competent to stand trial. As in Lucas, no competency hearing was held upon defendant’s return to the committing court. The disposition of this case is governed by Lucas.
Defendant does not contend that he was in fact incompetent at the time of his trial. We quote the Lucas opinion:
"As we said in Blocker, supra, [People v Blocker, 393 Mich 501; 227 NW2d 767 (1975)] failure to follow a statute or court rule respecting competency determination does not ipso facto entitle a defendant to a new trial. Evidence substantiating incompetency-in-fact must establish that there is a violation of rights before a new trial will be ordered. Here, as in Blocker, no evidence of incompetence was adduced at trial and no offer of such evidence is now made.” 393 Mich at 528.
We therefore adopt the Lucas remedy. The conviction is affirmed without prejudice to defendant’s right to file a delayed motion for new trial if he wishes to claim incompetency.
D. E. Holbrook, P. J., concurred. | [
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Per Curiam.
Plaintiff appeals from an October 21, 1974 order of the Kalamazoo County Circuit Court which granted summary judgment against her. The order was granted in favor of defendant Woltersom pursuant to defendant’s claim under GCR 1963, 117.2(1), that plaintiff had "failed to state a claim upon which relief can be granted”. We reverse and remand for trial.
There is little factual dispute involved here. According to plaintiff’s complaint and to defendant’s admissions at the hearing for the purpose of the summary judgment motion, defendant’s allegedly negligent act occurred on September 3, 1971. At about 10:20 p.m. on the date, defendant was involved in a drag race on South Park Street in Kalamazoo with another defendant, who is not involved in this appeal. Plaintiff alleged that defendant’s negligence caused defendant to lose control of his automobile which then collided with a parked vehicle. This collision destroyed the stop sign controlling traffic on westbound West Walnut Street at the West Walnut-South Park intersection. This sign was not replaced by the City of Kalamazoo until September 5, two days later.
In the interim, at 9:28 p.m. on September 4, about 23 hours after defendant had destroyed the stop sign, plaintiff was a passenger in a vehicle operated by another defendant who is also not part of this appeal. This vehicle was traveling west on West Walnut, and, when it came to the place where the stop sign had been located, it continued into the intersection without stopping or yielding the right of way. As a result, the car in which plaintiff was riding collided with a car driven by another nonappealing defendant, and plaintiff suffered severe injuries. Plaintiff also sued the City of Kalamazoo for negligently having failed to repair the stop sign. That suit is not involved here.
A motion for summary judgment under GCR 1963, 117.2(1) tests only the legal, not the factual, sufficiency of the pleadings. Van Liere v State Highway Dept, 59 Mich App 133; 229 NW2d 369 (1975), Crowther v Ross Chemical and Mfg Co, 42 Mich App 426; 202 NW2d 577 (1972). An appellate review accepts as true all of plaintiff’s factual allegations as well as any reasonable inferences which may be drawn from the allegations. Hoag v Paul C Chapman & Sons, Inc, 62 Mich App 290; 233 NW2d 530 (1975), Martin v Fowler, 36 Mich App 725; 194 NW2d 524 (1971). A summary judgment motion must be denied if the pleadings state a legally valid claim and raise triable issues of fact. Blades v Genesee County Drain Dist No 2, 375 Mich 683; 135 NW2d 420 (1965).
In granting summary judgment here, the court stated:
"How in the world you can say an accident 24 hours later was the natural and probable result of a drag racing incident the night before * * * . It seems clear to me there was an intervening cause [i.e., the city’s failure to replace the sign].”
We find the case of Davis v Thornton, 384 Mich 138; 180 NW2d 11 (1970), to be cogent authority for our review here, both for its specific holding and for its general policy. In Davis, supra, the Supreme Court held that a summary judgment had been improvidently granted where plaintiff was suing for injuries incurred in an accident with some "joyriders” who had stolen a car in which one of defendant’s employees had left the ignition key. The question in Davis, as here, was one of proximate cause between defendant’s acts and plaintiff’s injuries. A proximate cause is one that is a "natural and probable consequence” of one’s conduct, a consequence that an ordinary, prudent person ought to have foreseen. Luck v Gregory, 257 Mich 562, 569; 241 NW 862, 864 (1932), Clumfoot v St Clair Tunnel Co, 221 Mich 113; 190 NW 759 (1922); see also Michigan Standard Jury Instruction 15.01. There may be more than one proximate cause to an injury, and a defendant’s negligence need not be the sole cause. McKine v Sydor, 387 Mich 82; 194 NW2d 841 (1972), Price v Manistique Area Public Schools, 54 Mich App 127; 220 NW2d 325 (1974), lv den 393 Mich 753 (1974); see also Michigan Standard Jury Instruction 15.03. The Court in Davis, supra, propounded a standard for summary judgment motions in such cases:
"A judgment for the defendant, in an action such as this, can properly be made only upon a determination * * * that the injury caused plaintiff was too insigniñcantly connected to or too remotely effected by the defendant’s negligence.
"For a proper grant of summary judgment for the defendant, a trial judge must rule that all reasonable men would agree on the conclusion [that defendant’s negligence did not proximately cause plaintiff’s injuries].” (Emphasis supplied.) 384 Mich 138 at 142.
The ruling of the trial court in the instant case could be interpreted to represent one of two holdings: (1) that defendant’s alleged negligence was not, as a matter of law, a proximate cause of plaintiffs injuries or (2) that defendant’s alleged negligence could have been a proximate cause but the negligence of the city was an independent, intervening cause which severed the link between defendant’s negligence and plaintiffs injuries. Foreseeability of consequences is crucial to both questions, and remoteness is vital to a determination of foreseeability.
We stress, as did the Davis Court, the longstanding Michigan policy that "[t]he determination of remoteness, however, should seldom, if ever, be summarily determined”. (Citation omitted.) Davis, supra, at 147. See also Miller v Detroit Cab Co, 392 Mich 480; 221 NW2d 342 (1974), Howard v Golden State Mutual Life Insurance Co, 60 Mich App 469; 231 NW2d 655 (1975). In Davis, the Court reversed summary determinations as to both "whether leaving the keys in the ignition was too remote a cause of the resulting collision” and, if not, "whether the theft was an independent cause which severed the causal relationship”. 384 Mich 138 at 146.
Turning to the instant case, we also find that the summary disposition of the remoteness and intervening cause questions was in error. First, we conclude that a reasonable person could find that plaintiffs injuries were a direct and probable result of defendant’s alleged negligence. The logical link between a negligent driver colliding with a roadside object and that object resulting in a hazard to other drivers using the road is not so attenuated as to be unreasonable.
Second, we hold that a reasonable man could find that the city’s failure to replace the stop sign was not an intervening cause which cut off defendant’s liability. The intervening negligence of a third party is not a superseding cause of harm which cuts off a defendant’s liability if:
" '(a) [defendant] at the time of his negligent conduct should have realized that a third person might so act, or
" '(b) a reasonable man knowing the situation existing when the act of the third person was done would not regard it as highly extraordinary that the third person had so acted.’ ”
Davis v Thornton, supra, at 149, quoting 2 Restatement, Torts, § 447, p 1196. We make no holding as to whether the city’s delay in replacing the stop sign was negligent. Assuming arguendo that it was, we conclude that a reasonable person in defendant’s position should have realized that the sign might not be replaced for two days. This question, as is the question of remoteness of causation, is a question more appropriate for determination by the finder of fact than by the judge.
Reversed and remanded for trial. | [
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T. M. Burns, P. J.
Defendant was charged in three separate three-count warrants with the burning of a dwelling house, MCLA 750.72; MSA 28.267, the burning of property in order to defraud an insurance company, MCLA 750.75; MSA 28.270, and procuring and counselling another to burn any property or building, MCLA 750.77; MSA 28.272.
Count 3 in each of the warrants was dismissed at the preliminary examination, and defendant was bound over and tried without a jury on counts 1 and 2 of each warrant. At the close of all proofs, the trial court dismissed count 2 in each of the warrants. As to count 1, the trial court concluded that defendant could not be convicted of that charge since the dwellings in question were not occupied. Instead, the trial court found defendant guilty of violating MCLA 750.73; MSA 28.268, which prohibits the burning of any other type of real property. In so convicting the defendant, the trial court ruled that a charge under MCLA 750.73; MSA 28.268 is a lesser included offense to the offense with which defendant was charged in the first count of each warrant.
Defendant was subsequently sentenced to three concurrent terms of 2-1/2 to 10 years imprisonment and now appeals as of right. Defendant raises only one issue on appeal, namely, whether the trial court erred reversibly when it found that MCLA 750.73; MSA 28.268 was a lesser included offense to the original charge of burning a dwelling house. Defendant claims that his conviction must be set aside because the crime of which he was convicted was not a lesser included offense of the crime with which he was charged.
In People v Patskan, 387 Mich 701, 713; 199 NW2d 458 (1972), our Supreme Court stated the test to be used in determining whether one offense is a lesser included offense of another when it stated:
" 'The general rule is succinctly set forth in 4 Wharton’s Criminal Law and Procedure, § 1888, pp 753, 754, wherein it is stated, "If the greater of two offenses includes all the legal and factual elements of the lesser, the greater includes the lesser; but if the lesser offense requires the inclusion of some necessary element not so included in the greater offense, the lesser is not necessarily included in the greater.” ’ ”
In State v Atkinson, 88 Wis 1, 4-5; 58 NW 1034, 1035 (1894), the Court stated:
"When the legislature so carefully defined the different kinds of arson as to dwellings and fixing varying punishments therefor, can it be possible that they intended that all such offenses must be prosecuted under another section, which was manifestly framed to cover possible omissions, and which prescribes a different penalty? We cannot think so. The difference between the offenses is not one of degree, but they are distinct and separate offenses. It has been repeatedly held under similar statutes that under an indictment for burning a dwelling house the proof must show that the building burned was a dwelling house, and that the defendant could not be convicted of burning a building not a dwelling house. People v Handley, 93 Mich 46; 52 NW 1032 (1892); Commonwealth v Hayden, 150 Mass 332; 23 NE 51 (1889). The reason given is that the two offenses are separate and distinct offenses. The description of what was burned is essential to fix the identity of the offense. The one is an offense against the habitation and the other against the fee title * * * It was said in Commonwealth v Hayden that the statutory offense of burning a dwelling house does not include within itself the burning of a building which is not a dwelling house.” (Emphasis added.)
See also, 2 Gillespie, Michigan Criminal Law & Procedure (2d ed), § 1006, pp 1394, 1395, People v Kelley, 32 Mich App 126; 150; 188 NW2d 654 (1971), People v Reed, 13 Mich App 75; 163 NW2d 704 (1968).
Since the offenses #under the statutes in question are separate and distinct, Gillespie, supra, the defendant, charged with burning a dwelling house, could not be convicted of burning a building not a dwelling. A violation of MCLA 750.73; MSA 28.268 requires an element not necessarily included in the conduct made criminal by MCLA 750.72; MSA 28.267, namely the fact that the building in question was not a dwelling house. Since an essential element of MCLA 750.73; MSA 28.268 is proof that the structure burned was not a dwelling house within the meaning of the statute, violation of the section is not a lesser included offense of MCLA 750.72; MSA 28.267, burning a dwelling house.
Therefore, we hold that burning a building not a dwelling is not a lesser included offense of burning a dwelling house. Since the defendant was convicted of a crime for which he was not charged, he was denied due process. People v Keatts, 54 Mich App 618, 622; 221 NW2d 455 (1974), People v Mercer, 6 Mich App 644; 150 NW2d 183 (1967).
Conviction reversed.
Quinn, J., concurred. | [
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R. M. Maher, J.
Defendant Braun is the owner of property in Bloomfield Hills. Plaintiff Froling sought specific performance on his contract with Braun for the sale of the property. Plaintiff Greater Bloomfield Real Estate Company brought suit for a ten percent broker’s commission it claims was earned by bringing about the contract with Froling. The suits were consolidated and a bench trial was held. Defendant Braun appeals from judgments in favor of each plaintiff.
An employee of Greater Bloomfield, Burton Disner, approached Braun in April of 1971 and inquired about the sale of his property through Greater Bloomfield. Though Braun was unwilling to give Greater Bloomfield an exclusive listing, he did permit Greater Bloomfield to show the property and receive offers. The price of $185,000 on a land contract was given. Greater Bloomfield sent out flyers describing the property, and one was sent to Froling’s assistant, Gary Walker. Several prospects, including Froling, inspected the property.
On June 4, 1971, Froling submitted, through Greater Bloomfield, the offer of Joancar Investment Company to purchase the property for $185,-000 on a land contract. These were the terms Braun had originally mentioned to Disner. Accompanying the offer was a $5,000 check from Joan-car, a corporation Froling controlled.
Braun rejected the offer, telling Disner that he no longer wanted the sale to be on a land contract. On June 10, 1971, Froling made an offer of $165,-000 cash in his own name. The offer, transmitted through Disner to Braun, required Froling to immediately apply for a mortgage and contained a condition that inability to obtain necessary financing within 30 days would terminate the agreement. The offer stated that the broker, Greater Bloomfield, was authorized to hold a $5,000 deposit and apply it to the purchase price. The check of Joancar that accompanied the previous offer had not been returned to Froling and at that time Froling did not present his own check.
Disner brought the $165,000 written offer to Braun, who changed the amount to $185,000, initialed the change, and then signed the "Acceptance of Offer” section. That section contained a provision for a ten percent broker’s commission to be paid by the seller. Braun claims that he instructed Disner that the offer should be returned the following day, June 11. Other testimony contradicted this, and the trial judge found that the instruction was not given.
On June 14, 1971, Froling applied for mortgage financing through Detroit Bank & Trust, and on June 15, he told Disner that he accepted Braun’s counter-offer. The section of Froling’s original offer labelled "Purchaser’s Receipt of Original Offer” was signed by Froling. Disner testified that on June 16, he told Braun over the telephone that Froling had accepted the counter-offer. Braun claims he first heard of the acceptance through Froling’s assistant, Walker, in early July.
Detroit Bank and Trust, after appraising the property, informed Froling on July 1 that it had approved the mortgage. A week later Froling notified Disner of this. On July 3, Braun told Froling’s assistant, Walker, that the deal was off. Later in July, he refused to hand over to Disner the abstract of title, telling Disner that there was no deal and that the matter was being handed over to his attorney.
We agree with the trial judge that a contract for the sale of the property was formed by Froling’s communication of acceptance of the counter-offer to Disner. The trial court found no instruction by Braun as to when the counter-offer had to be accepted. Even though our review of equitable proceedings is de novo, appreciation of the trial court’s perspective prohibits our casual reassessment of the facts. Stachnik v Winkel, 394 Mich 375; 230 NW2d 529 (1975), Dassance v Nienhuis, 57 Mich App 422; 225 NW2d 789 (1975). The record provides us with no solid grounds for disagreement with the trial court’s finding that the instruction, requiring acceptance on June 11, was not given to Disner.
The evidence is conflicting on when Braun learned of Froling’s acceptance of the counteroffer. Nevertheless, a delay by Greater Bloomfield in notifying Braun of Froling’s acceptance does not affect a contract between Braun and Froling. Braun used Disner to transmit the offer to Froling. Absent any contrary indications from Braun, Froling was able to accept in the same manner and the contract was then formed. "We are of the opinion that the authorities are clear that 'the offerer takes the risk as to the effectiveness of communication if the acceptance is made in the manner either expressly or impliedly indicated by him.’ ” Butler v Foley, 211 Mich 668, 673; 179 NW 34 (1920), Kashat v Prangs, 16 Mich App 76; 167 NW2d 603 (1969); see 1 Corbin on Contracts § 67, p 282.
Froling failed to deposit $5,000 of his personal funds with Greater Bloomfield when he made the offer on June 10. Braun argues that this constitutes lack of consideration, but we fail to attribute this significance to the deposit. The consideration given for Braun’s promise to sell was Froling’s promise to purchase, subject to the condition regarding financing. If the deposit had some importance to the counter-offer and acceptance, it seems sufficient that the $5,000 check of Joancar remained in the hands of Braun’s broker at the time of acceptance. On this matter the trial court stated:
"The fact that the check was drawn on Joancar Investment Company when the offer of June 10 was executed by Froling in his personal capacity again I do not see that as a matter of law continuing that deposit would in any way affect this transaction because the check was presented in this initial manner.
"Mr. Froling could have directed funds from any number of sources. He could have presented a cashier’s check. Any other type of funds could have been presented for deposit, and the simple fact that it was a Joancar Investment Company check does not impress me as a significant fact in this transaction.”
Defendant, Braun, has provided us with no basis for disagreement with the trial court’s statement.
Braun’s final attempt to show that there was no contract for the sale of the property is the assertion that the provision for obtaining financing made the agreement merely an option. This interpretation of the agreement is not acceptable. By the agreement’s terms, it gave no option to the purchaser. He was required to seek financing, and if his efforts proved successful he was bound to purchase. Inability to obtain financing terminated the agreement, but we fail to see how this condition caused the agreement to be an option.
We are referred by defendant to numerous cases which have held that specific performance will not be granted unless the party seeking it has tendered full performance. Equally well-established, however, is the rule that where one party makes it obvious that tender would be a futile gesture, failure to make a tender may not be used as a defense to specific performance. Weinburgh v Saier, 303 Mich 640; 6 NW2d 921 (1942), Hanesworth v Hendrickson, 320 Mich 577; 31 NW2d 726 (1948), Keller v Paulos Land Co, 5 Mich App 246; 146 NW2d 93 (1966). Here, where Braun made his unwillingness to go through with the sale well known to the other party, he should not be ah lowed to assert the defense of lack of tender. We therefore agree with the trial court’s judgment awarding specific performance on the contract.
Defendant, Braun, also contends that Greater Bloomfield’s improper conduct during the transaction in question should preclude a judgment awarding Greater Bloomfield the ten percent broker’s commission called for in the agreement. Disner, Greater Bloomfield’s employee, agreed to pay Walker, Froling’s employee, $3,500 of the commission Greater Bloomfield would receive from a sale to Froling. Greater Bloomfield also failed to comply with MCLA 451.213(j)(4); MSA 19.803(j)(4), which requires a real estate broker to deposit money received in a separate custodial or trust fund account. Like the trial court, we "have great discomfiture at the conduct of salesman Disner”. Nevertheless, we find no error with the judgment in favor of Greater Bloomfield. The failure to follow the statutory provisions regarding deposit of funds should not bar recovery of an earned commission. Braun makes no allegation that his broker’s noncompliance caused him any loss.
The question of sharing a commission goes beyond the statutory provisions on real estate brokers and requires consideration of broad principles of agency law. The leading case in Michigan on "fee-splitting” is Sweeney & Moore, Inc v Chapman, 295 Mich 360, 363; 294 NW 711 (1940), which held that a broker may forfeit his commission for improper activity during the period of his agency:
"The general rule is that a broker may forfeit his right to compensation by misconduct, breach of duty, or wilful disregard, in a material respect, of an obligation imposed upon him by the law of agency. A corollary of this rule is that 'the law will not permit an agent to act in a dual capacity in which his interest conflicts with his duty, without a full disclosure of the facts to his principal.’ Hogle v Meyering (syllabus), 161 Mich 472. An agreement between real-estate brokers, representing different principals, to pool or divide their commissions, is a breach of good faith toward their principals and void as against public policy. Such an agreement deprives the brokers of their right to compensation unless both principals consent thereto. This rule applies even though the principals themselves finally conclude the sale.”
We are, of course, in complete accord with the sound policy expressed in Sweeney & Moore, Inc. That case involved a "classic” instance of "fee-splitting”, in which the purchaser’s broker and the seller’s broker agreed to divide their commissions. The evil with this sort of arrangement is the obvious temptation it presents to the agents involved to sacrifice the interests of their respective principals. By sharing in the other agent’s compensation, an agent’s benefits no longer coincide with his principal’s success in a venture, and so he may be inclined to disregard the best interests of his principal.
All this, however, is inapplicable to the case before us. Walker had no commission from Froling to share with Disner. The split between them was strictly "one-way”. We cannot see how this placed a temptation before Disner to sacrifice Braun’s interests. If anyone is to complain of the arrangement between Disner and Walker, it is Froling, not Braun. See Ranney v Donovan, 78 Mich 318; 44 NW 276 (1889).
The text writers have seen that arrangements like the one between Disner and Walker provide Disner’s principal no reason to complain. Professor Seavey states:
"It is not improper for an agent to act for the adverse party in a transaction by assisting him to secure the money to make a purchase from the principal, or to complete his title to property to be sold to the principal. Likewise, it is not improper for him to give part of his commission to the other party, since this aids rather than harms the principal’s interests. ” Seavey, Law of Agency, § 149, p 246. (Footnote omitted.) (Emphasis supplied.)
Professor Mecham is in agreement. See 1 Mecham on Agency (2d ed), § 1590. For an agent to be denied his compensation, it is enough to show that his actions presented the temptation to sacrifice his principal’s interests. It is not necessary to show actual injury to the principal. 1 Mecham on Agency (2d ed), § 1589. Nonetheless, more than merely labelling an arrangement as "fee-splitting” is necessary to defeat a broker’s claim for his commission. Since it has not been shown that Disner placed himself in a position that at least offered the potential for compromising Braun’s interest, there is no reason to deny Greater Bloomfield its commission.
The judgment of specific performance in favor of plaintiff Froling and the judgment awarding Greater Bloomfield its commission are affirmed. Costs to plaintiffs.
Even a finding that the instruction had been given to Disner would not necessarily mean that Froling was unable to accept after the time limit laid down by Braun. Secret instructions are usually without effect when a third person relies upon an agent’s apparent authority. See 1 Mecham on Agency (2d ed), §§ 710, 2397.
Greater Bloomfield’s failure to deposit, the Joancar check in a trust account, as required by MCLA 451.213(j); MSA 19.803®, is of no concern on this particular point. Surely a seller cannot use his broker’s failure to comply with statutory directives as a defense to the purchaser’s action.
Because both Disner and Walker were licensed brokers, there is no violation of MCLA 451.213®; MSA 19.803®. | [
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V. J. Brennan, P. J.
A warrant charging first-degree murder was issued against defendant on May 26, 1974. MCLA 750.316; MSA 28.548.
On June 5, 1974, a preliminary examination was held before Recorder’s Court Judge and acting magistrate George W. Crockett, Jr. At this examination, James Younger, a Detroit police officer, was called as the first witness by the prosecution. It was Younger’s partner’s death with which the defendant was charged.
At the conclusion of the preliminary examination, the defendant was bound over for trial on the charge of first-degree murder by the magistrate.
Defendant then brought a motion to quash the information before the judge assigned to hear the case on the merits. From a denial of that motion defendant filed an application for leave to appeal. On January 7, 1975, this Court granted defendant’s application for leave to appeal.
Defendant claims the examining magistrate abused his discretion by not allowing defendant’s counsel further cross-examination.
In reviewing the record we note the witness examined was an eyewitness; defendant cross-examined him at length, i.e., about 18 pages of transcript concerning all aspects of the shooting. This witness’s testimony very thoroughly established the elements of the crime and identified the defendant as the possible perpetrator.
The purposes of the preliminary examination are elementary; namely, the proofs must establish, not prove, that a crime has been committed and that this person could have committed it, not that he did.
This right to a preliminary examination does not mean an entire trial; there is no right to parade witness after witness before the magistrate merely creating one fact issue after another. The magistrate has to control these proceedings in an orderly manner, allowing examination into perception, bias, memory, and credibility. Here, that was clearly allowed.
After the crime and its elements are established and the identity of the person probably committing it is established, the rest of the testimony becomes a question of fact and credibility for the trier of the facts to determine; namely the jury or trial judge. The examining magistrate does not have to find guilt beyond a reasonable doubt. He has discretionary control of the entire preliminary examination.
We find no abuse of that discretion on this record.
Affirmed. | [
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T. M. Burns, P. J.
In this action, plaintiff sought to hold the Bank of the Commonwealth and other defendants liable under the Michigan Uniform Securities Act, MCLA 451.501 et seq.; MSA 19.776(101) et seq.
Defendant Fodale, an agent of First Securities Corporation, advised plaintiff to invest in Dynatron, Inc., stock (formerly International Minerals Corporation). Fodale told the plaintiff that the stock could be purchased at the Bank of the Commonwealth. The bank was acting as escrow agent and transfer agent of the Dynatron stock pursuant to an agreement between it and the promoters of Dynatron, Inc. The escrow agreement provided that the bank would hold the stock and on receipt of $3.50 per share from certain named "prospective purchasers” would deliver a proportionate number of shares to itself as transfer agent of Dynatron for delivery to the purchasers. Plaintiff purchased 8,000 shares of the Dynatron stock. When the value of the stock reached $6.50 per share, plaintiff ordered Fodale to sell. Fodale did not execute the sell order as it was discovered that the stock could not be traded because it was not registered as required under Michigan law.
Plaintiff claims that the bank was an active participant in the sale of the stock as agent for the sellers and thus is liable under the civil liability provision of the Uniform Securities Act. The bank claims that it is not liable as it performed no services for the seller but those of escrow and transfer agent. The trial court granted summary judgment for the bank. This appeal followed.
Plaintiff principally assigns error to the ruling of the trial court that as a matter of law the defendant is not liable under the Uniform Securities Act. The pertinent section of the statute provides that:
"[E]very broker-dealer or agent who materially aids in the sale [of a security in violation of certaion sections] are also liable jointly and severally with and to the same extent as the seller * * * ”.
There is no contention that defendant was functioning as a broker-dealer, as the statute expressly excludes banks from such classification. The issue, thus, involves the definition of the term "agent” as applied by the Uniform Securities Act. In the definitional section of the statute, "agent” is described as "any individual other than a broker-dealer who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities”.
Whether or not an "individual” includes a corporation (such as defendant) is thus the determinative issue in this appeal. If the defendant cannot as a matter of law be an "agent” for the purposes of the statute, the factual questions which arise under the section creáting the liability of the seller’s agent become moot.
We believe that the legislative intent is expressed in the statute that a corporation cannot be an "individual” and hence cannot be an "agent”.
Section 401(i) defines "person” as "an individual, a corporation, a partnership, an association * * * ”. (Emphasis added.)
Since an individual and a corporation are treated separately by this definition section of the statute, we conclude that the Legislature intended the terms to be mutually exclusive. A corporation, then, cannot be an "individual”. Because an "agent” under the statute is limited to an "individual”, it follows that a corporation cannot be held jointly and severally liable as an agent of a seller of a security under MCLA 451.810(b); MSA 19.776(410)(b).
Having determined that defendant as a corporation does not fall within the purview of the pertinent sections of the statute, it is not necessary to consider the other issues raised by this appeal dealing with the same sections of the Uniform Securities Act.
The decision of the trial court granting defendant’s motion for summary judgment is affirmed.
Bank of the Commonwealth is the only appellee.
MCLA 451.810(b); MSA 19.776(410)(b).
Id.
MCLA 451.801(c); MSA 19.776(401)(c).
MCLA 451.801(b); MSA 19.776(401)(b).
MCLA 451.801(i); MSA 19.776(401)(i). | [
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] |
T. M. Burns, P. J.
This cause arises out of the May 24, 1974, attempted unarmed robbery of Mrs. Caryn Mason, a cashier at the Host International Coffee Shop located at Metropolitan Airport in Wayne County, Michigan. According to Mrs. Mason, at approximately 9 p.m. that evening, defendant approached her while she was operating the cash register and handed her a note demanding money while simultaneously making a verbal request for the same.
At the time that this alleged robbery was taking place, an Unidentified restaurant customer came to pay his bill at the cash register. Since this person had neglected to bring his bill with him, Mrs. Mason, under the pretext of getting the bill, left the defendant alone at the cash register and notified her superiors of the alleged robbery attempt. Shortly thereafter, sheriffs deputies at the airport arrested defendant, took him to their office at the airport, and upon searching his person, found a straight razor in his pants pocket. Defendant was then charged with attempted unarmed robbery, carrying a concealed weapon, and carrying a weapon with unlawful intent.
Testimony was presented at trial which indicated that on the night in question, defendant had his hair cut at the airport barber shop. Upon being dissatisfied with the haircut, defendant, using a straight razor and other instruments present in the barber shop, completed the haircut to his satisfaction. It was also established that the straight razor found in defendant’s pants pocket belonged to one of the barbers at the airport barber shop.
On August 9, 1974, the jury returned its verdict, acquitting the defendant of attempted unarmed robbery but finding him guilty of carrying a concealed weapon. MCLA 750.227; MSA 28.424. On September 17, 1974, defendant was sentenced to a term of 1 to 5 years imprisonment.
Defendant claims that the prosecutor’s failure to indorse and produce the unknown customer as a res gestae witness mandates reversal. We disagree. An unknown witness need not be produced by the people. People v Harrell, 54 Mich App 554; 221 NW2d 411 (1974), People v Loggins, 17 Mich App 388; 169 NW2d 519 (1969), People v Todaro, 253 Mich 367; 235 NW 185 (1931). In the case at bar, the unidentified customer did not even witness the commission of the offense of which defendant was convicted, carrying a concealed weapon. Under these circumstances, we find no error since the absence of this witness’s testimony could not have affected the guilty verdict on the concealed weapons charge. In addition, nothing in the record indicates any lack of good faith on the part of the prosecutor.
Defendant also contends that the trial court erred reversibly when instructing the jury on the elements of the offense of carrying a concealed weapon. Defendant argues that he was denied a fair trial because in instructing the jury the trial court did not explain that in order to be a dangerous weapon, the straight razor had to be used or carried for the purpose of use as a weapon of assault or defense.
After instructing the jury on the charge of unarmed robbery, the trial court continued:
"Now by virtue of the second Information filed in this matter, the defendant is charged with carrying a concealed weapon. I will now give to you the elements of that offense which must be proved beyond a reasonable doubt before the defendant may be convicted of the offense. The elements are as follows: One, that the defendant had in his possession and intended to have in his possession in a place other than his dwelling house, place of business or other land possessed by him, a dagger, dirk, stiletto or other dangerous weapon. Two, that the defendant knowingly carried the weapon concealed upon or about his person. And, three, that this all happened at the time and place set forth in the second Information I read to you.
"Again, as I have indicated before, it is impossible to place ourselves in the mind of another human being to determine what that human being intended or what he knew. You, again, however, may draw any inference as to what the defendant intended or what he knew from any fact in evidence which to your mind fairly proves the existence of such intent or such knowledge. You may look to what the defendant said, what he did, and all of the surrounding circumstances of the alleged offense in determining the defendant’s intent and knowledge or lack of intent and knowledge. The intent which [sic] the weapon is carried is not an element of the crime of carrying a concealed weapon. The only intent necessary is the intent to carry the weapon concealed on or about his person. For the purpose of this case, a dangerous weapon is defined as a weapon likely to produce death or great bodily injury.”
The prosecution claims that since defense counsel did not object to the instruction in question at trial, this issue has not been preserved for appeal. We disagree. In People v Liggett, 378 Mich 706, 714; 148 NW2d 784 (1967), our Supreme Court stated:
"It is settled law of this State that the trial judge should instruct the jury in criminal cases as to general features of the case, define the offense and indicate that which is essential to prove to establish the offense, even in the absence of request. A case may be reversed because the charge omits a legally essential ingredient. People v Prinz, 148 Mich 307 [111 NW 739 (1907)], People v Kanar, 314 Mich 242, 254 [22 NW2d 359 (1946)], People v Hearn, 354 Mich 468 [93 NW2d 302 (1958)]. Similarly, without a request, a case may be reversed because of an erroneous or misleading charge as opposed to one which merely omits a pertinent though not legally necessary point. People v MacPherson, 323 Mich 438, 448 et seq. [35 NW2d 376 (1949)], People v Guillett, 342 Mich 1, 7 [69 NW2d 140 (1955)], People v Oberstaedt, 372 Mich 521, 526 [127 NW2d 354 (1964)]. Defendant has a right to have a properly instructed jury pass upon the evidence. People v Visel, 275 Mich 77, 81 [265 NW 781 (1936)].”
See People v Roy Edwards, 58 Mich App 146, 150; 227 NW2d 263 (1975), People v Lenkevich, 394 Mich 117, 123; 229 NW2d 298 (1975), and People v Townes, 391 Mich 578, 587; 218 NW2d 136 (1974), quoting the above with approval. Furthermore, the Supreme Court has recently held that reversible error occurred where the defendant’s theory of the case was not presented to the jury and the instructions given on intent were such as to prevent consideration of defendant’s theory of the case. People v Pepper, 389 Mich 317; 206 NW2d 439 (1973).
Applying these principles to the case at bar, we hold that the trial court’s instructions were prejudicially erroneous and that defendant is entitled to a new trial.
In People v Vaines, 310 Mich 500, 505-506; 17 NW2d 729 (1945), another concealed weapons case, the Supreme Court said:
"Daggers, dirks, stilettos, metallic knuckles, slingshots, pistols, and similar articles, designed for the purpose of bodily assault or defense, are generally recognized as dangerous weapons per se. Other articles and instruments become dangerous weapons only when they are used or carried for use as weapons. Therefore, in a prosecution under section 227 it becomes a question of fact for court or jury determination as to whether or not such articles or instruments are used or carried for the purpose of use as weapons of assault or defense. People v Gogak, 205 Mich 260; 171 NW 428 (1919).” (Emphasis added.)
Relying on the Vaines rationale, this Court in People v Morris, 8 Mich App 688, 690-691; 155 NW2d 270 (1967), a concealed weapons case involving a straight razor, said:
"The question is, in a case of this nature, is the straight razor a dangerous weapon? The burden is on the prosecution to prove that the instrument was carried as a weapon, i.e., for either offensive or defensive purposes. The Supreme Court has defined ' "other dangerous weapon” as used in section 227, to mean any concealed article or instrument which the carrier used, or carried for the purpose of using, as a weapon for bodily assault or defense.’ People v Vaines, 310 Mich 500, 506; 17 NW2d 729 (1945).
"The following language from the same case is also relevant. It should be read substituting !straight razor’ for jackknife’.
" 'The legislature certainly did not intend to include as a dangerous weapon the ordinary type of jackknife commonly carried by many people, unless there was evidence establishing that it was used, or was carried for the purpose of use, as a weapon.
" 'The knife carried by defendant was not a dangerous weapon perse.’ "(Emphasis added.)
And finally, in People v Jones, 37 Mich App 91, 95; 194 NW2d 433 (1971), this Court said:
"Whether the object carried is offensive and dangerous, and the subjective reasons for possible use and concealment, are questions for the jury. People v Ragland, 14 Mich App 425, 426; 165 NW2d 639 (1968), People v Knapp, 34 Mich App 325; 191 NW2d 155 (1971).”
A review of the trial transcript reveals that the trial court never explained to the jury that in order to be a dangerous weapon under the statute, the straight razor had to be carried for the purpose of use as a weapon of assault or defense. Instead, throughout its charge on the elements of the concealed weapons offense, the trial court referred to the straight razor as a weapon, rather than leaving this issue for jury determination. In doing so, the trial court erred reversibly by invading the province of the jury.
There can be no doubt that the issue of whether defendant carried the straight razor as a weapon was critical to his conviction or acquittal on the concealed weapons charge. While there was some evidence presented to support the prosecution’s claim that the straight razor was carried as a weapon, there was also a good deal of evidence to the contrary, including defendant’s own testimony that he used the straight razor to finish the cutting of his hair at the barber shop. Combined with the fact that defendant neither produced the straight razor during the alleged attempted robbery nor related any threat to use it, a properly instructed jury could quite reasonably have concluded that: (1) defendant was a thief who wanted a straight razor; or (2) he had inadvertently put the straight razor in his pocket after finishing his hair cut. In either event, defendant could not have been convicted of carrying a concealed weapon.
Defendant was prejudicially harmed as a result of the failure of the trial court to charge on such a material element of the defendant’s sole defense. Since the trial court failed to instruct the jury on defendant’s theory of inadvertently putting the straight razor in his pocket, People v Pepper, supra, and since the evidence presented at trial was conflicting as to whether or not the defendant carried the straight razor as a weapon, we conclude that the trial court erred in not providing the jury with a reasonable understanding of the nature of the offense over which it specifically charged the jury to deliberate.
Defendant’s other claimed errors do not merit discussion. Reversed and remanded for a new trial on the charge of carrying a concealed weapon.
Quinn, J., concurred. | [
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M. F. Cavanagh, J.
Defendants appeal from the affirmance by the Workmen’s Compensation Appeal Board of an award of compensation benefits to plaintiff, widow of decedent Ben Thayer.
Because of the disposition we reach, it is unnecessary to detail the facts established in the trial below. On June 13, 1969, Ben Thayer, a truck tire inspector for Goodyear Tire and Rubber Company, sustained a back injury while on the job. His physician ordered him to stay in bed except for meals and use of the bathroom. The condition continued through the summer of 1969. On September 26, 1969, Mr. Thayer fell. According to plaintiff’s testimony, his crutches apparently slipped while he was walking in the driveway. He was taken to the hospital where surgery was performed on his hip. On October 3, 1969, Mr. Thayer died as a result of a pulmonary embolism.
Plaintiff filed a petition for hearing before the Bureau of Workmen’s Compensation. A hearing was held and the referee awarded plaintiff compensation in the amount of $69 per week for a period not to exceed 500 weeks plus $750 for burial expenses. This award was affirmed by a split decision of the Workmen’s Compensation Appeal Board.
The defendant contends that the hearing referee committed error in refusing to admit testimony concerning the cause of decedent’s death. On cross-examination of Mrs. Thayer, defense counsel questioned her as to whether she remembered telling a representative of Aetna Life & Casualty Company, the group life insurance carrier for decedent’s employer, that Mr. Thayer’s fall had resulted when he had climbed on a scaffold in order to assist in the re-shingling of his house. Upon plaintiff’s objection, the referee ruled that MCLA 418.855; MSA 17.237(855) precluded such a statement from use as evidence unless a copy had been given to the declarant at the time it was taken. Defendant made an offer of proof as to the testimony he expected from the Aetna agent, but did not make a separate record on the matter.
MCLA 418.855; MSA 17.237(855) states as follows:
"If the employer, carrier or any agent of either takes a statement from an injured employee, the statement cannot be used as evidence against the employee unless a copy thereof is given to him at the time it is taken.”
Plaintiffs argument that allowing an adjuster to obtain statements from persons in the position of the present widow circumvents the intent of the statute is supported by public policy. But Flynn v Western Board & Paper Co, 318 Mich 28; 27 NW2d 332 (1947), requires that such statements be admitted. In that case, a 16-year-old boy sought compensation for the work-related death of his father. At issue was whether or not he was dependent upon his father at the time of his father’s death. During the preliminary investigation, the boy had given a statement to an insurance adjuster that he had been supporting himself shortly before his father’s death. The Court held that MCLA 413.5A; MSA 17.179, the precursor to MCLA 418.855, did not apply so as to exclude introduction of the statement:
"It is obvious that the section quoted has no application other than to statements taken from an injured employee.” 318 Mich 28, 34.
Moreover, it appears that the adjuster who took the plaintiffs statement was not investigating the workmen’s compensation claim, but took the statement as part of an investigation by Aetna concerning a life insurance policy it had issued to Mr. Thayer.
Thus, we conclude that the hearing referee committed error in precluding use of the statement. Although the better practice may well have been to make a separate record of the adjuster’s testimony, the issue was sufficiently preserved for appeal since defendants’ counsel specifically stated in his offer of proof what he expected the adjuster’s testimony to be. GCR 1963, 604. Hes v Haviland Products Co, 6 Mich App 163; 148 NW2d 509 (1967).
Since the case must be reversed because of this defect, we will briefly resolve problems which may arise on retrial. First, the hearing referee prevented plaintiff from testifying as to a statement made by her husband when she found him lying in the driveway. The basis of the ruling was apparently that the statement was hearsay and did not satisfy the dying declaration exception. Plaintiff, however, had asserted that the statement should be admissible under the "res gestae” exception. Although counsel would have more accurately termed the statement as an "excited utterance”, it appears that the plaintiff should have been allowed to testify as to Mr. Thayer’s statement. The statement related to a startling event and was made within minutes after the accident while the declarant was under the stress of excitement caused by the event. See Roy Annett, Inc v Kerezsy, 336 Mich 169, 174; 57 NW2d 483 (1953), and People v Frank Johnson, 58 Mich App 1, 6; 226 NW2d 730 (1975).
Second, we conclude that plaintiff’s claim for death benefits was timely filed since the employer had already begun to make payments for the injury which ultimately resulted in Mr. Thayer’s death. Although MCLA 418.381(1); MSA 17.237 (381)(1) requires that a claim for compensation be made within 12 months of the death of the em ployee, this does not preclude a claim where death is caused by the same injury for which the employer has received notice and for which compensation has been paid. See Wilson v Tittle Bros Packing Co, 269 Mich 501, 505-506; 257 NW 873 (1934). Both the referee and the appeal board concluded that death was the result of the original compensable injury. Since these factual findings are supported by competent evidence, they will not be disturbed. Carter v General Motors Corp, 361 Mich 577, 593; 106 NW2d 105 (1960). See also Wilson v Doehler-Jarvis Division of National Lead Co, 353 Mich 363, 373-374; 91 NW2d 538 (1958).
Because the hearing referee improperly foreclosed proper testimony on a material issue, this cause must be reversed. Costs to defendants.
See Eglash v Detroit Institute of Technology, 375 Mich 592, 596-597; 134 NW2d 710 (1965), Bujalski v Metzler Motor Sales Co, 353 Mich 493, 497; 92 NW2d 60 (1958), and Gilchrist v Gilchrist, 333 Mich 275, 282-283; 52 NW2d 531 (1952). | [
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T. M. Burns, P. J.
On March 29, 1973, defendant was convicted in a nonjury trial of carrying a concealed weapon. MCLA 750.227; MSA 28.424. He was sentenced on October 23, 1973, to a term of from 2 to 5 years in prison. On March 27, 1974, defendant’s motion for a new trial was denied. Defendant now appeals as of right.
At trial, officer Ronald Martin testified that on March 8, 1972, he and his partners Virgil Starkey and James Harris observed a 1969 Cadillac at the north curb of Euclid west of 12th Street in the City of Detroit. Two individuals were outside of the car walking away from it, but when they saw the policemen one of them ran back to the car and threw a gun inside it. Officer Martin then observed several tinfoil packets, which contained suspected narcotics, being thrown out of the car. The policemen then apprehended the two individuals on the street and ordered everyone out of the car. Defendant was identified as one of the individuals inside the car as was a 15-year-old juvenile, Elma Griffin. The police then searched the parties involved and found a .32-caliber blue steel revolver in defendant’s waistband. Officer Harris also identified the defendant as one of the individuals arrested that night.
After officer Harris’s testimony, defense counsel waived the production of the three remaining prosecution witnesses, all policemen, because their testimony would have only been cumulative and added nothing material to the case. The people then made a motion to admit into evidence the revolver seized from the defendant. The motion was granted by the trial court.
The trial court then raised the issue of Elma Griffin’s involvement in this case. The prosecutor argued that Ms. Griffin was a codefendant and, therefore, not a res gestae witness. Defense counsel argued that she was not a codefendant, pointing out that she had not been charged. Officer Martin was recalled, and he testified that he had no personal knowledge of seeing her doing anything and that there was nothing in his preliminary complaint report to indicate that she was doing anything on the night in question.
The defendant took the stand on his own behalf and admitted that he was a passenger in the car but denied carrying a gun. Defendant claimed that Ms. Griffin was the party from whom the police took the gun.
Defendant has raised four assignments of error. We have considered them all. Those to which we do not specifically refer have not been disregarded. Rather, we consider them to be of insufficient substance to merit decisional discussion.
Defendant first claims on appeal that he was denied the effective assistance of counsel by his trial counsel’s actions in failing to move to suppress certain evidence, in waiving the production of three prosecution witnesses and in not moving for indorsement of Elma Griffin as a res gestae witness. Defendant argues that but for these mistakes, a different verdict could have been reached by the trial court. We have reviewed the record and are not so persuaded.
The standard for reviewing a claim that a lawyer’s mistakes resulted in the denial of the effective assistance of counsel was set forth in People v Degraffenreid, 19 Mich App 702, 718; 173 NW2d 317, 326 (1969):
"In deciding whether to grant a new trial because of a serious mistake a court applies concepts akin to those implicit in the harmless error rule, balancing the public interest in avoiding purposeless retrials against the defendant’s interest in having all his rights recognized arid asserted. Ordinarily a new trial will not be granted unless it appears that if a new trial is ordered during the conduct of which the mistake is not repeated, the defendant may very well be acquitted.”
Moreover, the Sixth Amendment guarantees only that a defendant is entitled to an attorney with ordinary training and skill in the criminal law who will diligently, conscientiously, and honestly represent him. People v Degraffenreid, supra, at 712, Beasley v United States, 491 F2d 687, 696 (CA 6, 1974). This Court will not substitute its judgment for that of trial counsel on matters of trial strategy. In the case at bar, defense counsel’s waiver of the production of the three prosecution witnesses and his decision not to object to the admission of the revolver into evidence were matters of trial strategy which will not be second-guessed by this Court. People v McLeod, 45 Mich App 332, 334; 206 NW2d 528 (1973), People v Phelps, 57 Mich App 300; 225 NW2d 738 (1975).
As to defendant’s claim that his lawyer made a serious mistake in not moving for the indorsement of Elma Griffin as a res gestae witness, after reviewing the record in this case, we find this claim to be meritless. We find that defense counsel’s failure to move for Ms. Griffin’s indorsement as a res gestae witness may have been a tactical decision, but that if it was not, defendant was not prejudiced thereby. Officer Martin testified that the gun was taken from defendant’s person. Defendant testified that it was taken from Ms. Griffin. While at first blush it seems that Ms. Griffin’s testimony could have exonerated the defendant, counsel may have decided not to have her produced for fear that she may have testified that the police took the gun from the defendant’s waistband, thereby negating the theory of the defense. Thus to avoid this result, defense counsel may have decided not to move for her indorsement. Cf. People v Averill, 59 Mich App 507, 513, 514; 229 NW2d 827 (1975). It appears to this Court that the error herein alleged involved a decision which was made for a reason that could appear sound to a competent criminal attorney such as defense counsel in this case. Therefore, the assistance of counsel was not constitutionally defective. Beasley v United States, supra, at 696.
Defendant also maintains that he was denied a fair trial by the prosecutor’s failure to indorse and produce at trial Elma Griffin, a res gestae witness. At trial, the judge noted the failure to produce Ms. Griffin and the significance of such failure:
"I didn’t have the advantage of having the testimony from Elma Griffin, although she was present. There is some indication that she may have been a co-defendant, either in this case or in a narcotics case, and it is impossible to tell whether her testimony would have been favorable to the defendant or favorable to the complainants in this case, the police officers.”
It has long been held in Michigan that the prosecutor has an affirmative duty to produce all res gestae witnesses. MCLA 767.40; MSA 28.980, People v West, 56 Mich App 37, 39; 223 NW2d 353 (1974), People v Unsworth, 43 Mich App 741; 204 NW2d 759 (1972), People v Kayne, 268 Mich 186; 255 NW 758 (1934). In the case at bar, the prosecutor knew that Ms. Griffin was in the car with the defendant but did not indorse her as a res gestae witness. Since the defense claimed that Ms. Griffin could testify that the police officer did not take the gun from defendant’s waistband, her testimony was crucial to the defense. We conclude that Ms. Griffin was a res gestae witness and consequently that it was error to fail to indorse her name on the information and call her as a prosecution witness. Cf. People v Wynn, 60 Mich App 636; 231 NW2d 269 (1975).
Since no reversible error results from the prosecutor’s failure to indorse and produce res gestae witnesses whose testimony would be merely cumulative, People v Samuels, 62 Mich App 214; 233 NW2d 520 (1975), People v Bennett, 46 Mich App 598; 208 NW2d 624 (1973), the appropriate procedure is to remand for an evidentiary hearing to determine this question. People v Samuels, supra, People v Robinson, 390 Mich 629; 213 NW2d 106 (1973). If after the evidentiary hearing, the trial court determines that Ms. Griffin’s testimony would have been merely cumulative, the conviction is affirmed. However, if the trial court determines that Ms. Griffin’s testimony is not merely cumulative, the trial court shall reverse defendant’s conviction and grant him a new trial. We do not retain jurisdiction. See generally People v Samuels, supra. | [
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Quinn, J.
Defendant was tried on a charge of first-degree murder, MCLA 750.316; MSA 28.548. The jury found him guilty of second-degree murder, MCLA 750.317; MSA 28.549 on June 4, 1974. He was sentenced and he appeals on two issues:
1. The cross-examination of defendant by the prosecuting attorney and the latter’s comments during closing argument violated defendant’s constitutional right to remain silent and created prejudicial error.
2. The trial court’s instruction to the jury on the prosecuting attorney’s duty to produce a res gestae witness was erroneous.
It is not disputed that defendant killed the victim, Emma Montgomery. She died of nine stab wounds. The defense was self-defense.
During his direct examination, defendant testified that the victim cut his finger and his boot with a knife during the conflict. During cross-examination, he was asked if he had shown the cuts on his finger and on his boot to the police. Defend ant’s answer was that he had not. This cross-examination did not violate defendant’s right to remain silent.
However, the following cross-examination:
”Q. Did you talk to any detectives in charge of the case?
"A. No.
”Q. You never talked to one?
'A. They wanted me to make a statement, but I didn’t have to make one.”
does violate defendant’s right to remain silent and does constitute error. People v Bobo, 390 Mich 355; 212 NW2d 190 (1973). The inquiry becomes whether it is reversible error. As stated in People v Swan, 56 Mich App 22, 31; 223 NW2d 346, 351 (1974):
"Despite the constitutional dimensions of the error, if it did not in fact prejudice the defendant, then it may be held harmless.”
Our review of this record convinces us that there is no reasonable possibility that this short invasion of defendant’s right to remain silent contributed to his conviction. We find no other reference to this testimony anywhere in the record, and our finding is that the error was harmless beyond a reasonable doubt.
The second issue was not saved for review. Defendant not only failed to object to the instruction he attacks on appeal, GCR 1963, 516.2, he approved it at trial. No manifest injustice is present.
Affirmed. | [
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Per Curiam.
Defendant was charged with assault and battery. MCLA 750.81; MSA 28.276. After two judges of the Recorder’s Court disqualified themselves, this case was assigned to Judge Ravitz. Defendant, Donald Lobsinger, made a motion to disqualify Judge Ravitz and the judge denied it. The question was brought before another judge in the Recorder’s Court and it was again denied. Defendant was convicted by a jury of assault and battery and appeals.
We have here two men with diametrically opposed political views. One is the trial judge and the other the defendant. Prior to the judge’s election, the two men had appeared on a radio program and at various political demonstrations and rallies. It is safe to say that neither man has a high opinion of the other. However, since there appears to have been virtually no personal contact between the judge and defendant before the trial, their opinions of one another seem to stem primarily from the image projected by the mass media of two outspoken individuals who find themselves on different sides of most important political questions. Whether this mutual disrespect transcends political disagreement and reaches a point of personal intolerance becomes crucial in the present context.
GCR 1963, 405.1 provides in pertinent part:
“The judge shall be deemed disqualified to hear the action when the judge:
* * *
"(3) is personally biased or prejudiced for or against any party.”
The court rule requires an actual showing of prejudice or bias, Wayne County Prosecutor v Doerfler, 14 Mich App 428; 165 NW2d 648 (1968), and "[u]nless the fact of prejudice or bias is established or the necessities of justice to the defendant require it, a change of judge is an unjustifiable wrong to the public”, Kolowich v Ferguson, 264 Mich 668, 670; 250 NW 875 (1933).
We must look to the record for apparent prejudice on the part of the trial judge. The proper point of inquiry is at the time of trial. It is not enough to say that defendant received an error-free trial and therefore the record fails to demonstrate the trial judge’s personal prejudice against defendant. Therefore, we draw our attention to a taped recording of a 1972 radio program, the trial judge’s statement in denying defendant’s motion for disqualification, portions of the trial judge’s testimony before the reviewing Recorder’s Court judge, and the reviewing judge’s characterization of the trial judge’s testimony.
We review the record in light of Wayne County Prosecutor v Doerñer, supra, authored by Judge (now Justice) Fitzgerald. Doerñer involved a complaint seeking an adjudication that certain magazines were obscene and an injunction permanently restraining their possession, distribution or sale. A motion to disqualify the trial judge on the grounds that he was actively engaged in attempting to motivate the community against the sale of obscene literature was filed by defendants. The trial judge denied the motion, as did another circuit judge to whom the motion was assigned.
The trial judge in Doerñer had been a former president of the Archdiocesan Council of Catholic Men, an organization that worked on occasion with the National Office for Decent Literature to prevent the distribution of obscene literature to children. He was alleged to have been very active in these groups. Doerñer was not concerned with personal bias against any party or attorney but with alleged prejudice against the subject matter at issue in that case. However, its rationale is helpful to the decision in this case:
"A judge is not expected to bring with him to the bench a blank mind and personality, as he becomes, by necessity, a composition of the general experiences of his life, refined and honored by his legal training and legal experience so that the desired judicial temperament will hopefully emerge. To require a blank mind is unreasonable, but to demand an impartial and clear appraisal of each new case is not. A judge may well be subconsciously prejudiced in one way towards the evidence or the parties in a case before him. It is his duty not to permit these prejudices to override his responsibilities in providing a fair forum for the determination of controversy. This duty should ideally motivate the judge to request reassignment of the case if he is aware of any prejudices which he holds which would interfere with his impartiality. If the judge refuses to do so, and the appellate court finds from the record that the judge was apparently prejudiced, then reversal is often the only remedy.” 14 Mich App at 440. (Footnotes omitted.)
The Court in Doerfler viewed the trial judge’s activities to be "no more than general public statements made with the intent of educating the community”, and not an attack on any specific type of publication or definition and application of an obscenity statute. 14 Mich App at 441. The disqualification was found to have been properly denied.
The case at bar, although presenting a question of "personal bias”, is analogous in that it requires a determination as to whether personal animosity existed between the trial judge and defendant or whether it was purely a problem of conflicting ideologies. As can be seen by the footnoted portions of the record, in denying the motion for disqualification and in testifying before the reviewing Recorder’s Court judge, Judge Ravitz acknowledged that "some personal degree of animus” existed between him and defendant which was "real”. Furthermore, although affirming Judge Ravitz’ denial of defendant’s motion, the reviewing judge characterized Judge Ravitz’ testimony as admitting dislike for defendant. Apparently then, a degree of personal bias or prejudice did, in fact, exist.
This is not a situation where a trial judge has stated that he has no bias or prejudice. See, Kolowich v Ferguson, supra, 264 Mich at 670. Here, the trial judge acknowledged "some degree of personal animus” and once that had been recognized, he should have disqualified himself from the case.
Reversed and remanded for a new trial.
We are aware of Armstrong v Ann Arbor, 58 Mich App 359; 227 NW2d 343 (1975), where this Court did look to the manner in which the trial was conducted in order to determine whether a new trial should be ordered because of prejudice or bias to either party. However, in that case, an express waiver of disqualification shifted the focal point of the inquiry.
In 1972, on a local radio program, a 3-member panel which included the trial judge and defendant, discussed whether the Detroit Police Department’s STRESS unit (Stop The Robberies, and Enjoy Safe Streets) should be abolished. An accurate summation of the extent of the trial judge’s participation in that program is provided by the Recorder’s Court judge who initially reviewed the trial judge’s denial of defendant’s motion for disqualification:
"Testimony [has been] taken on the motion and additional evidence received. Specifically, a tape recording of a radio forum in which both Judge Ravitz and Mr. Lobsinger appeared, along with Shelia Murphy. And a transcription of this radio program was received as evidence.
"It had been alleged by Mr. Lobsinger in his affidavit to disqualify Judge Ravitz that Judge Ravitz had, in fact, called him a Nazi during * * * this program. This Court has heard the tapes. And, as a matter of fact, * * * Judge Ravitz did not call Mr. Lobsinger a Nazi. As a matter of fact, there were no declarations of that nature. Only questions put purely in question form.
"I believe that the words in question were 'are you a member of a Nazi party?’ 'Do you believe in Facism?’ 'Do you believe in a police state.’
"And, as a matter of fact, I find, from listening to the tape that Judge Ravitz did not participate very much in the tape. And that those questions were asked of Mr. Lobsinger by Judge Ravitz during this radio program, in my opinion, do not constitute bias, in fact.”
“Okay, the Court is prepared to rule. Before doing so, let me say this. I took an oath of office and swore to uphold the Constitution and that’s what I’m required to do as a judge elected by the members of this community. To sit as a Recorder’s Court Judge. It is my obligation sitting as a judge in conducting this courtroom to set aside personal bias wherever possible. And when I don’t think it is possible to in fact disqualify myself, and that I wouldn’t hesitate to do so on my own motion if and when the time were to arrive when I felt that was necessary.
"In fact in the past I’ve had conferences with various Prosecuting Attorneys and I’ve told them of at least one situation in which I know very well that I would not be able to fairly and impartially set [sic] and that they are to watch for it, such a situation. And if one arises the prosecution — the prosecutors who work in this courtroom know that they are to alert me of this situation * * * . While Mr. Lob-singer and I have diametrically opposed views, while we might have some personal degree of animus that certainly wouldn’t be fully concealed, it’s real. Nonetheless I accept the rule of law that he, like anyone else who comes into this courtroom is presumed to be innocent. He is entitled to a fair and impartial trial. And I have no reservations as to my ability to accord him just that. For these reasons the Court denies the motion to disqualify under Rule 405. There is an abundance of case law that I could cite that shows when by connections — but nonetheless it is not error and it can be appropriate for the trial court to proceed. There have been two judges of this court who have previously disqualified themselves. I’m ready, willing and I think fully able in conformance with law to conduct this case, and to give the defendant and to give the prosecution that which they are entitled to under law.”
Counsel for defendant: "Based on that information that you have already viewed the case, do you find that you might find antagonism towards the defendant in this case based upon his objections that resulted in the case.”
Judge Ravitz: “You mean legal objections that you would make?”
Counsel for defendant: "No, I’m talking about objections to him personally. Personal objections, your own feelings?”
Judge Ravitz: "I think I could set them aside, counsel.”
Counsel for defendant: "They do exist?”
Judge Ravitz: "No question.”
Counsel for defendant: "And so when you say, 'unequivocally that my views are diametrically opposed to those of Mr. Lobsinger’ you mean that * * * ”
Judge Ravitz: "I believe that Mr. Lobsinger and I, and on probably most important political questions would find ourselves on different sides.”
Counsel for defendant: "I see. And what experiences — you mentioned some experiences. What experiences are these based upon?”
Judge Ravitz: "They’re based on very little. They’re based on — and it’s really hard to document things. I guess that when persons get some public exposure they all acquire certain attitudes and certain beliefs as to what the individual so exposed thinks or believes in. I couldn’t cite anything in particular other than having done a radio show with Mr. Lobsinger. Having seen him on occasion at demonstrations. And his having, in fact, you know, been in my courtroom today, this morning. These sorts of things that I relate to his statements or how it’s reported is what led to that general belief on my part, which might, in fact, be incorrect. Certainly I don’t always rely on that which is projected by the mass media. He has a certain projection which has given an image to me of him. But I don’t know the person, I have never engaged in much conversation with him, and I could be very wrong.”
Counsel for defendant: "When you say that 'we’ meaning you and Mr. Lobsinger have a certain degree of animus and it needn’t be hidden, it is real. Do you mean that you can’t hide it?”
Judge Ravitz: "I can hide it for purposes of sitting through a trial and participating as a judge in conformance with the laws which I am sworn to and will uphold.”
Counsel for defendant: "But it is a masking procedure, is it not?”
Judge Ravitz: "It’s not a question of masking. I don’t think the question of animus needs to arise during the trial. What do I think of Donald Lobsinger, not very much, it could be said to be very good, that’s for you. There’s no sense whatsoever in trying to hide that.”
"Judge Ravitz * * * testified in substance that admittedly he did not like the defendant Donald Lobsinger. But stated forthright that this would not prevent him from sitting in an impartial manner. And that he would, by no means, exercise any judicial discretion against the defendant on account of this fact.
"None of the exhibits attached to the motion nor the auxiliary testimony offered provide sufficient ground for disqualification. At best, if valid, they would relate to the political beliefs of the trial judge. A fact which cannot be taken into account with propriety, either on the question of the qualification of the judge to sit, or in relation to the charge against the defendant.
"This leads us to the question of the effect of the judge’s own admission, in substance, that he did not like the defendant Donald Lobsinger. This must be considered, of course, along with the statement that his feeling toward the defendant would not, in any way, affect his ability to sit and hear the matter impartially. One is readily impressed by the judge’s obvious honesty and forthright candor, his frank statement of his feelings toward the defendant, and not so readily be accepted as true, while his statement that he cannot sit impartially must be rejected. Both must be taken with the best of logic and reason. Bias or prejudice which disqualifies a judge has been described as a condition, a state of mind which sways judgment and renders the judge unable to exercise his functions impartially in a particular case.
"In the instant case Judge Ravitz has again candidly conceded the well known fact that there are many instances during the course of a trial in which a judge may exercise discretions not amounting to error, which may not result in the greatest benefit to the defendant. However, he denies that he would be inclined to do this.” | [
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R. B. Burns, J.
The Supreme Court remanded this case to our Court to consider issues not decided at the original hearing. This case was reported in 53 Mich App 223; 218 NW2d 859 (1974), wherein we reversed the trial court and granted the defendants a new trial because the trial judge had refused to let the defendants read into evidence the transcripts of testimony of a deceased witness at a prior trial.
The Supreme Court held via order, People v Ringstaff, 393 Mich 263; 224 NW2d 287 (1974), that the testimony did not "assist in deciding the critical issues [and] * * * the failure to admit the transcripts or to declare a mistrial is not reversible error”. The case was remanded for us to consider the remaining issues. We have considered the other issues presented and affirm.
Defendant Logan raises one issue not raised by the other defendants. He claims that MCLA 712A.4; MSA 27.3178(598.4), which provides the procedure for probate court to waive jurisdiction over a minor to circuit court, is unconstitutional in that it fails to establish standards.
The other issues raised by all defendants are as follows:
1. Did the trial court err by refusing to accept defendants’ offers to plead guilty to second-degree murder?
2. Did the trial court err by refusing to grant a mistrial when the prosecutor asked a police officer if a warrant was outstanding for a defense witness, and the court sustained defendants’ objection and gave a curative instruction?
3. Were the defendants’ indictments as returned by the citizen’s grand jury defective for lack of specificity as to scope of inquiry?
4. Did the trial court err by not instructing the jury on lesser included offenses?
5. Could the defendants be tried for conspiracy to commit murder when three alleged coconspirators were found not guilty?
6. Could the trial judge refuse to admit testimony of a deceased witness given at a prior trial?
7. Did the trial judge err by refusing to grant a motion for severance?
We turn first to the waiver of jurisdiction over defendant Logan to circuit court.
MCLA 712A.4; MSA 27.3178(598.4) was declared unconstitutional by the Supreme Court in People v Fields, 388 Mich 66; 199 NW2d 217 (1972) [Fields I], and again on rehearing, 391 Mich 206; 216 NW2d 51 (1974) [Fields II]. At the time of Fields I the statute read as follows:
"In any case where a child over the age of 15 years is accused of any act the nature of which constitutes a felony, the judge of probate of the county wherein the offense is alleged to have been committed may, after investigation and examination, including notice to parents if address is known, and upon motion of the prosecuting attorney, waive jurisdiction; whereupon it shall be lawful to try such child in the court having general criminal jurisdiction of such offense.” (Emphasis added.)
The rationale of Fields I was stated at 388 Mich 77:
"If the Legislature is to treat some persons under the age of 17 differently from the entire class of such persons, excluding them from the beneficient processes and purposes of our juvenile courts, the Legislature must establish suitable and ascertainable standards whereby such persons are to be deemed adults and treated as such subject to the processes and penalties of our criminal law. The statute is unconstitutional because it lacks standards.”
The statute was subsequently amended by the Legislature to remedy the defect by providing for standards. 1972 PA 265, § 1. Pursuant to this amendment, the Court in Fields II specifically restricted the temporal applicability of its holding, at 391 Mich 221:
"We hold that the retroactive effect of this decision is limited to those cases pending prior to October 3, 1972 (the date 1972 PA 265 was signed into law and given immediate effect) in which the issue of waiver was raised before the trial court and properly preserved on appeal.”
Defendant Logan qualifies under these criteria. It must therefore be determined if his waiver was justified by competent authority other than the invalidated statute. We specifically consider JCR 1969, 11. This court rule, "Waiver of Jurisdiction”, contains the specific standards for direction of the probate court’s discretion that were absent in the statute.
This Court considered the question. of waiver under JCR 1969, 11, on three occasions after Fields I and before Fields II In each case the Court upheld the validity of the waivers declared pursuant to the rule. People v Jackson, 46 Mich App 764; 208 NW2d 526 (1973), People v Rubin Williams, 50 Mich App 270; 213 NW2d 307 (1973), People v White, 51 Mich App 1; 214 NW2d 326 (1973). Since Fields II the issue has arisen two times more. People v Peters, 56 Mich App 305; 224 NW2d 65 (1974), reached the opposite result by failing to even mention the court rule in finding the waiver invalid due to the unconstitutionality of the statute. By contrast, in People v Samuels, 62 Mich App 214; 233 NW2d 520 (1975), the Court bluntly declared waivers under JCR 1969, 11, to be "constitutional” (purportedly on the authority of Jackson, Rubin Williams, and White), and implied further that the Supreme Court in Fields II had tacitly approved the validity of JCR 1969, 11, waiver proceedings.
Any such approval in Fields II is no more than implicit. Fields II recognizes that "[w]hile this Court cannot enact substantive laws, it does have the authority to decide upon the procedures to be followed in the courts of this state”. 391 Mich at 215, relying on Buscaino v Rhodes, 385 Mich 474; 189 NW2d 202 (1971). The dissent of former Justice Adams (the author of Fields I) in People v Rubin Williams, supra, 50 Mich App at 278, maintains that this type of waiver "is not procedure, but rather * * * a substantive matter”. (Emphasis in original.) Nevertheless, we must defer to the judgment of the Supreme Court: "[In enacting JCR 1969, 11] this Court * * * undertook with the help of the probate judges, to insure procedural due process in the handling of juvenile court cases”. Fields II, supra, p 216. (Emphasis in original.) So classified, JCR 1969, 11, represents a valid expression of the authority of the Supreme Court to advance through court rule this "extra-statutory” provision for waiver of jurisdiction.
It must be determined if defendant Logan was afforded the benefit of the standards set forth in JCR 1969, 11. The record reveals that he was, and the waiver of jurisdiction is therefore valid.
We observe further that a finding of ineffectiveness of JCR 1969, 11, would not portend a different result in cases "pending prior to October 3, 1972” and otherwise qualified under Fields II As noted by now Justice Fitzgerald for the Court in People v White, supra, p 4:
"[If the] court erred in concluding that a general court rule can supply the missing elements of due process which a statute lacks, waiver of jurisdiction in the instant case would automatically follow by virtue of the validation of 1944 PA 54, § 4 which requires mandatory waiver of jurisdiction of 15- and 16-year-old juveniles accused of crimes carrying a maximum penalty of 5 years or more.”
This is a recognition of the settled principle that an unsuccessful attempted amendment to a statute is a nullity, leaving the law as it was before the abortive attempt to amend. People v Smith, 246 Mich 393; 224 NW 402 (1929), Detroit v Western Union Telegraph Co, 130 Mich 474; 90 NW 283 (1902), Campau v Detroit, 14 Mich 276 (1866).
Defendant Logan qualifies for mandatory waiver under the "reactivation” of 1944 PA 54, § 4, the prior formulation of the unconstitutionally amended statute. Thus, on either of the above theories, his waiver in this action was justified. We turn to the remaining issues common to all defendants.
Defendants claim that the trial judge erred by refusing to accept defendants’ offers to plead guilty to second-degree murder. This claim was answered in People v Ringstaff, 53 Mich App 223; 218 NW2d 859 (1974).
Defendants claim that the trial court erred by not granting a mistrial when the assistant prosecutor asked Detective Irwin if there were any outstanding warrants for Shirley Mae Williams, a missing witness for the defense. The people assert that the judge erred by sustaining the defense objections. They claim that the question was relevant to show why the subpoena could not be served.
In our opinion the trial judge was correct. In this particular case it was not necessary for the prosecutor to enlighten the jury as to why the people could not serve a subpoena on Shirley Mae Williams. It was sufficient for the court to know that she was unavailable to testify in order to allow her testimony at the previous trial to be read. The objection was correctly sustained. The question was never answered and the judge gave a curative instruction. The question did not deprive defendants of a fair trial.
People v Lay, 193 Mich 476; 160 NW 467 (1916), refutes defendants’ contention that an order impaneling a citizens’ grand jury must be specific in the scope of inquiry. As the Court stated on page 485:
"A grand jury is convened for the general purpose of investigating all such charges of crime as may be brought to its consideration.”
Defendants’ claim that the trial court erred by not instructing the jury on lesser included offenses over defendants’ own express request to the contrary is answered by People v Burton, 46 Mich App 20, 24; 207 NW2d 415 (1973), where Chief Judge Lesinski stated for the Court:
"The defendant having affirmatively requested that the court not instruct on the lesser offense * * * cannot on this point obtain a reversal or new trial.”
Defendants rely on People v Frye, 248 Mich 678; 227 NW 748 (1929), and People v Alexander, 35 Mich App 281; 192 NW2d 371 (1971), for the proposition that defendants cannot be found guilty of conspiracy where three persons charged with the same conspiracy are acquitted. This reliance is unfounded.
People v Frye involved a charge of bribery where the Court made a general statement to the effect that conspiracy by its very nature was an exception to the general rule that a conviction or acquittal of one defendant has no legal effect upon the status of the other defendant.
In People v Alexander there were only two defendants. The Court noted at 35 Mich App 282 that "[tjhere is no such thing as a one-man conspiracy”. (Citations omitted.) In this case, however, the acquittal of three men accused of conspiracy does not diminish the capability of the three defendants to conspire to commit murder.
The Supreme Court answered defendants’ claim that the trial judge erred by refusing to admit the testimony of Ida Mae Barnes by stating that the testimony did not "assist in deciding the critical issues”. 393 Mich 263.
Lastly, defendants claim that the trial judge erred by not granting separate trials. By statute, the granting of separate trials is within the sound discretion of the trial judge. MCLA 768.5; MSA 28.1028. In a case where defendants are charged with the same crime, and where the same evidence is to be used to implicate all the defendants in the joint commission of the crime, the denial of separate trials is not an abuse of discretion absent an affirmative showing of substantial prejudice. People v Schram, 378 Mich 145; 142 NW2d 662 (1966), People v Clark, 57 Mich App 339; 225 NW2d 758 (1975). The trial judge did not err by denying the defendants’ motion to sever the case for trial.
Affirmed.
People v Bowers, 54 Mich App 565; 221 NW2d 472 (1974), considered JCR 1969, 11, to the point of determining that it had not been adequately complied with in that case. | [
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Bronson, J.
Plaintiff, Dorothy Dian Walkowski, brought suit for battery, assault, false arrest, unlawful imprisonment, and defamation against police officers of the Macomb County Sheriff’s Department, St. Clair County Sheriff’s Department, and the Michigan State Police Department. Appellant here, John R. Plants, was sued in his capacity as Director of the Michigan State Police Department. Colonel Plants made motions for accelerated judgment and summary judgment, the denial of which he appeals by leave granted.
This cause of action arises out of events occurring on November 1 and 2, 1972. On the night of November 1, plaintiff was stopped by two officers of the Macomb County Sheriff’s Department for allegedly running a red light. These two officers ran a warrant check to determine if there were any outstanding warrants for plaintiffs arrest. They directed their inquiry to the Law Enforcement Information Network (LEIN), a computerized filing system used to store such information. LEIN is maintained by the Michigan State Police Department.
Plaintiff contends that the LEIN system gave forth the false information that plaintiff was wanted on an outstanding warrant for perjury committed in St. Clair County. Defendant agrees that no such warrant was ever in existence. Plaintiff alleges that this false information caused her to be conveyed by the state police to the St. Clair County Jail, where she was incarcerated until she was able to post bond at about 4:00 in the afternoon of November 2.
Colonel Plants asserts that the LEIN "charge code” for perjury and contempt of court was the same at that time. Plaintiff admits that a valid bench warrant for contempt was outstanding against her at this time, resulting from her failure to appear in court for a traffic ticket. Defendant states that the Macomb authorities followed standard procedures and verified the existence of a warrant through the state police, and that all subsequent actions were based upon the valid contempt warrant, with any "false” information having no effect. It is conceded by defendant, however, the perjury is a felony, while contempt is a quasi-criminal misdemeanor. From that fact, plaintiff argues that the police would have not taken her into custody if only the contempt warrant had been involved.
Defendant Plants filed a motion for summary judgment and accelerated judgment. Summary judgment pursuant to GCR 1963, 117.2(1) was based upon the claim that Plants’ actions were not the proximate cause of defendant’s injuries. Accelerated judgment, under GCR 1963, 116.1(1)(2), was based upon: (1) the circuit court’s lack of subject matter jurisdiction because the Court of Claims has exclusive jurisdiction of this type of claim; and (2) the circuit court’s lack of personal jurisdiction over Plants due to his immunity from suit under the doctrine of governmental immunity. Because we hold that defendant John R. Plants is immune from suit, we need reach only that issue.
There is no question that a suit against the Michigan State Police Department by the plaintiff for the wrongs complained of here would be barred by governmental immunity. The new governmental immunity statute, MCLA 691.1407; MSA 3.996(107), was effective as of August 1, 1970, and applies to all injuries occurring after that date, Campbell v Detroit, 51 Mich App 34; 214 NW2d 337 (1973). The statute provides immunity when the agency is engaged in a "governmental function”. The operations of police departments are governmental functions, Kelley v East Lansing, 50 Mich App 511; 213 NW2d 557 (1973), Anderson v Detroit, 54 Mich App 496; 221 NW2d 168 (1974). The operations of the state police are covered by the doctrine of governmental immunity.
The extent to which public officials are to be given the benefits of governmental immunity was set out in early Michigan law. As Justice Cooley concisely summarized, the rule draws a distinction between "discretionary” or "quasi-judicial” and "ministerial” acts:
"A ministerial officer has a line of conduct marked out for him, and has nothing to do but to follow it; and he must be held liable for any failure to do so which results in the injury of another. A judicial officer, on the other hand, has certain powers confided to him to be exercised according to his judgment or discretion; and the law would be oppressive which should compel him in every case to decide correctly at his peril. It is accordingly a rule of very great antiquity that no action will lie against a judicial officer for any act done by him in the exercise of his judicial functions, provided the act, though done mistakenly, were within the scope of his jurisdiction: * * * . Nor does the rule depend upon whether the tribunal is a court or not; it is the nature of the duties to be performed that determines its application.” Wall v Trumbull, 16 Mich 228, 235-236 (1867). (Citations omitted.)
That rule is followed in a majority of the states, Prosser, Torts (4th ed), § 132, pp 988-989. The reasons for the rule were further explored in Justice Edwards’ dissenting opinion to Williams v Detroit, 364 Mich 231, 261-262; 111 NW2d 1 (1961):
"In the exercise of discretionary power, governmental duty runs to the benefit of the whole public, rather than to individuals. It is of great importance that this crucial function of democratic decision making be unhampered by litigation.
so is that it is impossible to know whether the claim is well founded until the case has been tried, and that to submit all officials, the innocent as well as the guilty, to the burden of a trial and to the inevitable danger of its outcome, would dampen the ardor of all but the most resolute, or the most irresponsible, in the unflinching discharge of their duties. * * * In this instance it has been thought in the end better to leave unredressed the wrongs done by dishonest officers than to subject those who try to do their duty to the constant dread of retaliation.” Learned Hand, J., in Gregoire v Biddle, 177 F2d 579, 581.’ Muskopf v Corning Hospital District, 55 Cal 2d 211, 220, 221; 11 Cal Rptr 89, 94, 95; 359 P2d 457.”
In the earlier cases, the rule was directly applied in several situations. It was held that members of city councils are immune from suits arising from their disapproval of the liquor bonds of private citizens, in that those actions are considered "discretionary”, Amperse v Winslow, 75 Mich 234; 42 NW 823 (1889), Pawlowski v Jenks, 115 Mich 275; 73 NW 238 (1897). In People, for use of Lapeer County Bank v O’Connell, 214 Mich 410; 183 NW 195 (1921), the Court held that the acts of the county drain commissioner in issuing partial payments for the construction of a drain were "ministerial”, and that he could be held personally liable for improperly doing so.
Other cases have had some difficulty distinguishing between two different concepts: (1) whether the officer is procedurally protected from suit under the doctrine of governmental immunity and (2) whether the officer is substantively not liable to the plaintiff for his acts in that no duty is owed to this plaintiff. For example, in the case of Raynsford v Phelps, 43 Mich 342; 5 NW 403 (1880), it was held -that seizure of property for delinquent taxes was a ministerial duty, the improper per formance of which created liability to the injured party. But the Court even then mentioned the related concept of substantive liability:
"[A] public officer having ministerial duties to perform, in which a private individual has a special and direct interest, is liable to such individual for any injury sustained by him in consequence of the failure to perform such duties.” Raynsford, supra, p 344 (emphasis added).
That language has been used by later cases to produce some confusing results.
In Rose v Mackie, 22 Mich App 463; 177 NW2d 633 (1970), the state highway commissioner was being sued for damages resulting from an automobile accident occurring on a state highway. Two causes of action were pleaded. First, defendant was being sued for negligently performing his general duties to oversee the highways and make sure that they are not unsafe. Secondly, the complaint alleged a negligent design and state of repair with respect to the highway, and that defendant failed to correct this situation after notice to his agents.
The Court had little trouble disposing of the first count on grounds that the commissioner had only discretionary duties in this area. They then went on to hold that the second count failed to state a cause of action because the commissioner’s duties ran to the public and not the individual plaintiffs. They did not base this part of the decision on governmental immunity:
"The official in Raynsford had invaded the rights of one person and one person’s property. The present situation is much broader in scope, in that the state highway commissioner does not act personally against any single individual in the construction and maintenance of highways. It could in no sense be said that defendant singled out one individual in respect to whom he violated his official duties.” Mackie, supra, p 467.
The test in Michigan for governmental immunity of public officers was not changed.
With this background in mind, we come to the case of Nichols v Zera, 33 Mich App 274; 189 NW2d 751 (1971). We feel that the Zera Court reached the right result for the wrong reasons. In that case, the members of the board of education of the City of Flint were sued for failure to prevent several students from being assaulted by outsiders soon after one school was dismissed. The Zera Court applied a "public duty” analysis correctly, but improperly accepted defendants’ argument that summary judgment was proper because defendants were "clothed in the sovereign immunity” of the board of education itself. We follow that case here only insofar as agreeing with its result, for the Court should have ruled that summary judgment was proper because the defendants simply lacked a substantive duty toward these particular plaintiffs.
In summary, we hold that the proper test to be used to determine whether a public officer is covered by governmental immunity is one distinguishing between ministerial and discretionary acts. The officer is immune from suit only for the performance of discretionary acts.
Once we have decided that the proper test is one distinguishing between discretionary and ministerial acts, we have little difficulty with the rest of the case. The executive head of the state police clearly exercises discretionary control over the operations of the LEIN system. There are a myriad of decisions to be made concerning the manner in which that system is to be set up and run. We can emphatically say that the acts in relation to this aspect of state police activities are not of the ministerial type, where the path to follow is clear-cut. Consequently, we hold that John R. Plants is immune from suit here, and the trial judge should have entered accelerated judgment in his favor.
Reversed and remanded with instructions for the trial judge to enter an order granting defendant John Plants an accelerated judgement. Costs of this appeal to appellant Plants.
The common law rules on governmental or sovereign immunity apply here because the statute contains the general clause that, "Except as otherwise provided herein, this act shall not be construed as modifying or restricting the immunity of the state from tort liability as it existed heretofore, which immunity is affirmed.” We read the term "state” to broadly differentiate between the state and its agencies and officers, and other government subdivisions, such as the municipalities, and their agencies and officers.
" 'Government officials are liable for the negligent performance of their ministerial duties * * * but are not liable for their discretionary acts within the scope of their authority, * * * even if it is alleged that they acted maliciously. * * * Such immunity is not designed to protect the guilty, for "if it were possible in practice to confine such complaints to the guilty, it would be monstrous to deny recovery. The justification for doing
The Mackie Court stated that the issue did not “merit discussion”, citing McDowell v State Highway Commissioner, 365 Mich 268; 112 NW2d 491 (1961), and Longstreet v County of Mecosta, 228 Mich 542; 200 NW 248 (1924). Both of these cases turn on the ministerial-discretionary distinction although they talk in terms of "looking through and beyond the nominal parties in interest”, a doctrine formulated in the contract case of McDowell v Warden of Ionia Reformatory, 169 Mich 332; 135 NW 265 (1912). As the Court concluded in Longstreet, supra, p 551:
"An examination of the highway laws, including the act of 1919, shows a legislative intent to place upon the State highway commission duties of supervision, administration and discretionary control over the highways of the State * * * . Under no view of the case can liability of defendant Rogers either individually or as State highway commissioner be sustained.”
The "discretionary” test was being applied, but under a different name.
In the Mackie opinion, citation to Massengill v Yuma County, 104 Ariz 518; 456 P2d 376 (1969), is made concerning the private duty-public duty distinction. That case makes it crystal clear that the public duty test goes to the substantive liability of the official, as Arizona had previously eliminated governmental immunity:
"There has been much discussion, by the plaintiffs, of the doctrine of sovereign immunity. * * * But nowhere in the record can we find any attempt by the defendants to envelop themselves in the cloak of immunity. Nor can they do so since this Court in the most unquestionable terms relegated that archaic doctrine to the dustheap of history.
"But we did not, by those decisions, change the basic elements of actionable negligence the components of which are a duty owed to the plaintiff, a breach thereof and injury proximately caused by such breach. Morris v Ortiz, 103 Ariz 119; 437 P2d 652 [1968].
"It is the first of these elements that concerns us here. The general rule pertaining to governmental agencies and public officers is that
"' * * * if the duty which the official authority imposes upon an officer is a duty to the public, a failure to perform it, or an inadequate or erroneous performance, must be a public, not an individual injury, and must be redressed, if at all, in some form of public prosecution.’ ” Massengill, 104 Ariz 520-521; 456 P2d at 378-379.
See, also, Gerneth v Detroit, 465 F2d 784 (CA 6, 1972), cert den, 409 US 1109; 93 S Ct 913; 34 L Ed 2d 690 (1973).
For similar reasons, we disagree with the same analysis in dictum found in Lovitt v Concord School District, 58 Mich App 593, 601-602; 228 NW2d 479 (1975). | [
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Bronson, P. J.
Plaintiff George Quarderer filed a complaint on April 30, 1974, seeking to have all proceedings of defendant drain commissioner relating to the North Creek-Orser Drain declared illegal and void. The complaint also sought a declaration that an easement acquired by defendant drain commissioner and a special assessment levied on plaintiff’s property were null and void. Plaintiff further asked for a return of tax payments made under protest and for damages.
Plaintiff is the owner of an undivided interest in a farm in Shiawassee County. From 1969 to 1972, the sole resident of the farm was plaintiff’s brother, Alphonse Quarderer.
Early in 1969, the Shiawassee County Drain Commissioner filed petitions for the improvement of the North Creek-Orser Drain. A citation inviting owners of affected lands to appear was served by leaving a copy at the residence of Alphonse Quarderer and by publication in a local paper. On July 30, 1969, an appearance by counsel for "Alphonse Quarderer, a single man, et al., by their attorney * * * ” was filed. The drain work was authorized on April 28, 1970. Construction began on July 2, 1970, and was completed on June 23, 1971.
Plaintiff claims that he had no actual knowledge of the drain project until May 7, 1971, when he observed construction on the land.
The property was assessed in 1971, 1972 and 1973; plaintiff made no payments until 1974, when the 1971 assessment was paid under protest.
The trial court held, upon defendants’ motion for "accelerated and summary” judgment, that plaintiff’s action was barred by laches.
Initially, we note that laches is not a proper ground for accelerated judgment; it is not one of the grounds enumerated in GCR 1963, 116.1(5). See Stewart v Troutt, 73 Mich App 378; 251 NW2d 594 (1977). But, see Sharp v Two Point Associates, Ltd, 78 Mich App 180; 259 NW2d 416 (1977). In the case at bar, however, we discern no prejudice to the parties from the hybrid motion for "summary and accelerated” judgment or the mislabel ing of the judgment. See Birch Run Nursery v Jemal, 52 Mich App 23; 216 NW2d 488 (1974), rev’d on other grounds, 393 Mich 775; 224 NW2d 282 (1974).
Plaintiffs pleadings appear to raise two main allegations. First, plaintiff contests the condemnation proceedings in probate court in which the county acquired an easement over the property in question, for which plaintiff was awarded $725, on the basis of a conflict of interest of a special commissioner and a lack of notice of those proceedings. As relief for this first allegation, plaintiff asks that the condemnation proceedings and easement be declared null and void and also asks for damages for trespass. Plaintiffs second allegation concerns the jurisdiction of the drain commissioner ab initio; the relief requested is that all drain proceedings in this case be declared null and void and that the resulting tax assessment also be declared void.
The trial court held that all claims advanced by plaintiff were barred by laches. We will address plaintiffs claims separately.
The Condemnation Proceedings.
Plaintiff contends that the condemnation proceedings for acquisition of a right of way across his land were invalid and void because of insufficient service of notice of those proceedings. MCLA 280.78; MSA 11.1078 provides:
"(1) All citations, notices and orders relative to con demnation proceedings, unless otherwise provided, shall be served as follows:
"(a) Personally; or
"(b) By leaving a copy at the residence of the person or persons interested; or
"(c) By mailing a copy thereof by registered mail at the last known post office address of each person or persons, so far as is known; and
"(d) By publication in some newspaper printed or circulated in the county in which such lands are located at least 7 days prior to the date of hearing.
"(2) Nonresidents of the county may be served in any of the above methods.”
Although this statute is somewhat ambiguous, we view it as providing for three methods of service: (1) personal service, (2) leaving the citation at the residence of all interested persons, or (3) service by registered mail, and publication in a local paper. Our interpretation is based on two factors. First, the prior statute on notice required both mailing and publication, if the address of a nonresident landowner could be reasonably ascertained. Second, if such address could be ascertained, notice by publication alone would be constitutionally insufficient. Walker v City of Hutchinson, 352 US 112; 77 S Ct 200; 1 L Ed 2d 178 (1956), cited in International Salt Co v Wayne County Drain Commissioner, 367 Mich 160, 168; 116 NW2d 328 (1962).
The notice given in the case at bar did not comply with MCLA 280.78; MSA 11.1078. As the condemnation proceedings may be void for lack of notice to plaintiff, Walker v City of Hutchinson, supra, the doctrine of laches relied on by the trial court does not apply. See Village of Oak Park v Van Wagoner, 271 Mich 450; 260 NW 743 (1935). See also In re Petition of Auditor General, 332 Mich 77; 50 NW2d 721 (1952). Thus, accelerated (or summary) judgment on plaintiff’s claims relating to the easement acquired in the condemnation proceedings and the allegation of trespass should not have been granted on the basis of laches.
The Drain Proceedings in General and the Tax Assessment.
Plaintiff also alleges a lack of jurisdiction in the case at bar, asserting that the North Creek-Orster Drain is an inter-county drain and that the drain commissioner erroneously proceeded under § 191 of the Drain Code, relating solely to intra-county drains. Accelerated judgment on the basis of laches is generally improper where a plaintiff claims a lack of jurisdiction in a drain proceeding. See Village of Oak Park v Van Wagoner, supra. However, the legal description of the drain which was part of the record below discloses that the drain does not traverse land in more than one county. Thus, the drain commissioner correctly proceeded under MCLA 280.191; MSA 11.1191 in the case at bar. As there was no jurisdictional defect in this regard, the trial court was not foreclosed from dismissing the claim relating to the validity of the proceedings in general and the tax assessment on the basis of laches. See Village of Oak Park v Van Wagoner, supra.
We review this case, as we do all equity cases, de novo, but we will not reverse or modify a trial court’s order unless we are convinced that we would have reached a different result had we been in the position of the trial court. See, e.g, Ford v Howard, 59 Mich App 548; 229 NW2d 841 (1975). In the case at bar, as we are not convinced that we would have reached a different result, we affirm the trial court’s order dismissing plaintiffs claims relating to the validity of the tax assessment and all proceedings other than the condemnation action.
In sum, we reverse this case only as to those claims relating to the validity of the condemnation proceedings; the other aspects of the trial court’s order are affirmed. We need not discuss plaintiffs issue concerning Thelma Quarderer and Mary Ross, as orders allowing them to intervene and file complaints have been entered below.
Affirmed in part, reversed in part and remanded for proceedings consistent with this opinion. No costs, neither party having prevailed in full.
An "amended complaint” was filed on July 11, 1974.
Plaintiff alleged that a special commissioner who participated in the condemnation proceedings had previously appraised plaintiff’s property and that the condemnation award was improperly influenced by the prior appraisal. In view of our disposition of the notice claim, we need not address this issue here.
The method of service actually used in this case was not disputed; the parties agree that the citation was delivered to the residence of Alphonse Quarderer and published in a local newspaper. There apparently is also no dispute that the addresses of plaintiff and intervenors were known.
As the notice given did not comply with statutory requirements, we need not address the constitutional issue advanced by plaintiff.
We express no opinion on whether plaintiff had actual notice of the proceedings before May, 1971, an issue apparently not resolved by the trial court and which was disputed by the parties. See In re Fitch Drain No 129, 346 Mich 639; 78 NW2d 600 (1956).
The Court in Village of Oak Park distinguished cases in which laches was held to bar actions based on nonjurisdictional defects in drain proceedings:
" 'The rule is well settled in this and other jurisdictions, that where the owner of property sits by while improvements are being made under statutory authority, knowing that the only method of compensating those who perform the labor is by an assessment for benefits, cannot, after the benefits have been reaped, resort to a court of equity for redress for irregularities in the proceedings. Harwood v. Huntoon, Drain Commissioner, 51 Mich. 639; Hall v. Slaybaugh, 69 Mich. 484; Moore v. McIntyre, 110 Mich. 237; Township of Walker v. Thomas, 123 Mich. 290; Township of Swan Creek v. Brown, 130 Mich. 382; Watson v. Fox, supra.
" 'A different rule applies, however, where the proceedings are void, because then a jurisdictional question is involved, which may be raised at any state of the proceedings.’ ” 271 Mich at 455.
MCLA 280.191; MSA 11.1191. MCLA 280.192; MSA 11.1192 relates to inter-county drains. | [
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Per Curiam.
Plaintiffs appeal an adverse accelerated judgment dismissing their cause against defendants-appellees for want of in personam jurisdiction. GCR 1963, 116.1(1).
As best we can glean them, the facts are these: Plaintiff Victoria Woodward visited the Coloma, Michigan office of Dr. Amelia Fajardo, a family practitioner, complaining of progressive deafness and a "roaring” sensation in her left ear. Dr. Fajardo referred plaintiff to defendant South Bend Clinic, a medical center operating exclusively in Indiana since 1916. The clinic is a partnership with all of its staff residing in Indiana.
On October 9, 1973, Mrs. Woodward appeared at the clinic for examination, after a telephone appointment had been made either by Dr. Fajardo, her office staff or the patient herself. Plaintiff brought with her a letter written by a Dr. Frederic A. Gibbs of Chicago, Illinois, reporting the results of an electroencephalogram Dr. Gibbs had recently performed.
At the clinic, Dr. Justin Keenan, M.D., examined plaintiff and then wrote a letter to Dr. Fajardo detailing the results of his examination.
From this point onward, the record is extremely sketchy. It does not reveal what further role Dr. Fajardo may have played in plaintiff’s case. Nor does it indicate the nature of defendant Bertram Smith’s involvement with plaintiff Woodward (other than stating that he is a practicing medical physician and surgeon specializing in diseases of the ear, nose and throat from his offices in Coloma, Michigan). All that is certain is that plaintiff, despite a progressively worsening condition, never returned to the South Bend Clinic. Instead, she sought the services of a Michigan neurosurgeon who attributed her hearing problem to a brain tumor. By the time of surgery, September 4, 1974, plaintiffs allege that the tumor was so extensive that the neurosurgeon could remove only 80 to 90 percent of it and that damage to the brain resulted. Additional surgery was required on January 22, 1975.
Charging appellees with a failure timely to diagnose plaintiff’s condition, the complaint alleged that Mrs. Woodward suffered complete facial paresis and "total losses” of some "cranial nerves”. Victoria Woodward sought a million dollars in damages and her husband, Timothy J. Woodward, sought $250,000; they demanded a jury trial. Appellees received service of process in Indiana.
The lower court, in granting appellees’ motion for accelerated judgment, ruled by written opinion that appellees’ contacts with the State of Michigan were insufficient under the due process clause to warrant the exercise of limited personal jurisdiction over them.
On appeal, plaintiffs maintain that the mailing of a diagnostic letter into Michigan, with knowledge that it would be used in future treatment of plaintiff’s condition, provides the requisite Michigan contact which permits the court reasonably to exercise limited personal jurisdiction over the Indiana defendants. In support, plaintiffs point to MCLA 600.705(2); MSA 27A.705(2) and MCLA 600.725(2); MSA 27A.725(2) and charge that the sending of the allegedly faulty diagnosis caused tortious consequences to occur in Michigan.
Plaintiffs cite no Michigan cases, indeed no cases at all, where courts, on similar facts, have held it reasonable under the due process clause to bind foreign doctors or hospitals to the personal jurisdiction of the forum state. Our independent examination uncovers cases uniformly rejecting plain tiffs’ contention. See Gelineau v New York University Hospital, 375 F Supp 661 (D NJ, 1974), Wright v Yackley, 459 F2d 287 (CA 9, 1972), McAndrew v Burnett, 374 F Supp 460 (MD Pa, 1974), Aylstock v Mayo Foundation, 341 F Supp 560 (D Mont, 1972), and Soares v Roberts, 417 F Supp 304 (D RI, 1976).
While we recognize the state’s interest in providing a convenient forum for vindicating the rights of its injured residents, this interest cannot override Michigan’s legitimate concern that its citizens obtain out-of-state professional care whenever it is needed or desired.
Our views are accurately reflected in Gelineau, supra, a case largely resembling the present suit:
"Unlike a case involving voluntary interstate or international economic activity * * * which is directed at the forum state’s markets, the residence of a recipient of personal services rendered elsewhere is irrelevant and totally incidental to the benefits provided by the defendant at his own location. It is clear that when a client or a patient travels to receive professional services without having been solicited * * * then the client, who originally traveled to seek services apparently not available at home, ought to expect that he will have to travel again if he thereafter complains that the services sought by him in the foreign jurisdiction were therein rendered improperly.
"Any other rule would seem to be not only fundamentally unfair, but would inflict upon the professions the obligation of traveling to defend suits brought in foreign jurisdictions, sometimes very distant jurisdictions, there brought solely because the patient or client upon his return to his own home decided to sue at home for services sought by himself abroad.
"Such a rule would have a chilling effect on the availability of professional services to non-residents. Professionals in the medical field, for example, concerned with one of the most rapidly advancing sciences of modern times, would be hesitant to treat a non resident if they knew that thereafter, upon the receipt of a registered letter, they could be compelled to travel to a foreign state, and there to account, under the laws of that state, for the services which were sought from them and rendered by them at home. The issue is whether or not a physician, a hospital, or such, licensed only to practice in New York, having been sought out by a resident of the State of New Jersey, or even perhaps a resident of a foreign nation, should be required to defend a malpractice action in those respective forums based upon the standards of care and the substantive laws of those foreign forums. We think not.
"Here, as we have found, New York University Hospital has not purposefully availed itself of the privileges of conducting activities within the forum state. The medical services that it provided to the plaintiff were performed in New York at the request of the plaintiff who unilaterally traveled to New York to receive them. The residence of the plaintiff herein was, and is now irrelevant to the services provided by this defendant at its location.” 375 F Supp at 667-668. (Footnotes omitted.)
Although factual distinctions can be drawn which may differentiate the suit at hand from Gelineau and the other cited cases, (e.g., here plaintiff on the suggestion of her Michigan doctor traveled less than 50 miles to the South Bend Clinic), the principle nonetheless remains: Michigan has a significant interest in assuring to its residents the availability of desirable or necessary services rendered by foreign professionals. This interest would not be advanced by application of a parochial rule tying foreign professionals to the yoke of the Michigan courts.
Before closing, however, we add a caveat. The present holding shall not apply in instances where out-of-state professionals carry on any business in Michigan, for in such a case their professional status can have no bearing. Sifers v Horen, 385 Mich 195, 199-200; 188 NW2d 623 (1971), MCLA 600.705(1); MSA 27A.705(1), MCLA 600.725(1); MSA 27A.725(1). If, with the advent of advertising by professionals (an event apparently unforeseen by the Gelineau court, 375 F Supp at 667), Michigan residents are encouraged on a systematic or continuing basis to utilize professional facilities outside of Michigan, then those offering this encouragement will have purposefully availed themselves of the privilege of conducting activities within Michigan and thereby have become amenable to the personal jurisdiction of our courts. Soares v Roberts, supra at 308-309, cf., Wright v Yackley, supra at 290.
In this regard, we highlight certain curious portions of the lower court record. In the affidavit of Dr. Keenan, the doctor states:
"9. That P. Justin Keenan, M.D., maintains no contracts, referral service arrangements, nor maintains any other arrangements with Bertram W. Smith, M.D., nor anyone else in the State of Michigan.”
In a similar vein, the affidavit of Mr. Eugene Ladewski, the administrator for defendant South Bend Clinic, reports:
"7. That the South Bend Clinic maintains no contracts, referral service agreements nor any other arrangements with Bertram W. Smith, M.D.”
Plainly, the above affidavits do not suggest that defendants have never encouraged Michigan residents to utilize the facilities of defendant Clinic. While Dr. Keenan may not maintain formal contracts or referral service arrangements with anyone in Michigan, he may have (perhaps informally) encouraged nearby Michiganians to utilize his or the clinic’s services. More to the point, that the clinic has no fixed arrangements with defendant Bertram Smith does not belie the possible existence of formal or informal compacts with others in Michigan.
We suspect that the lower court may have shared our doubts, for its opinion recognized that "there might be circumstances in a case involving a Michigan patient and an out-of-state physician which would provide a basis for Michigan jurisdiction over the doctor”. Thus, his amended order of accelerated judgment carefully gave finality only to those "matters herein [referring to the facts of record] set forth”.
Accordingly, while we would concur in the trial court’s due process analysis, we consider it consistent with traditional notions of fair play and substantial justice, International Shoe Company v Washington, 326 US 310; 66 S Ct 154; 90 L Ed 95 (1945), to remand the cause for limited and expeditious discovery — the bounds of which are to be established in the discretion of the trial court — to determine whether either of the defendants in fact carried on any business in Michigan for purposes of MCLA 600.705(1); MSA 27A.705(1), MCLA 600.725(1); MSA 27A.725(1) and this opinion. GCR 1963, 820.1(7).
Remanded for further proceedings.
No costs, the construction of statutes being involved.
We retain jurisdiction.
"Amelia Fajardo, M.D.
429 Paw Paw
Coloma, Michigan 49038 .
. Re: Victoria Woodward
"Dear Dr. Fajardo:
“Thank you for your referral of this patient. Her headaches have been present for such a long time that I doubt they are of organic etiology. The electroencephalogram is not helpful, and I believe the changes are of no consequence.
"She apparently has hearing loss and dizzy spells. I believe she has had an ENT [Ear, Nose, Throat] evaluation for this. I trust that the findings are consistent with cochlear rather than more central pathology, and that there was nothing in the evaluation to suggest a posterior fossa lesion. If there is any question of this in the ENT consultant’s evaluation, I would like to see her again to do at least a spinal tap. X-rays of the skull including basilar and stenver’s views, taken here, were negative aside from mild asymmetries of the fora-men ovale and foramen spinosum which probably are of no consequence. "Sincerely,
"P. Justin Keenan, M.D.”
Where foreign professionals consciously solicit Michigan business, this state’s interest in the availability of out-of-state professional services is not jeopardized since the foreign professionals will have already decided that the benefits of increased revenues from Michiganians offset the potential exposure to suit in Michigan. Should these professionals decide to cease solicitation of Michigan residents, they need not turn away unsolicited Michigan business because the holding in the present case stands as a bar to their being sued in Michigan. | [
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Per Curiam.
The issue presented for this Court’s consideration is whether several uninsured motorist coverages issued by the same insurance company to the same insured may be stacked or pyramided so that uninsured motorist benefits are payable in an amount exceeding the limits of any one of the separate uninsured motorist coverages.
Paula Sue Kozak was injured on October 5, 1974, when the motorcycle on which she was a passenger was struck by an uninsured motorist in Biloxi, Mississippi. The driver of the motorcycle, who was not at fault, was insured but carried no uninsured motorist coverage.
At the time of the accident, plaintiff was a resident of her parents’ home in Michigan. Her father owned three automobiles at the time, each of which was insured by defendant. Each of the three policies provided for uninsured motorist coverage in the limits of $20,000/$40,000. Premiums for this coverage, which covered plaintiff in the Biloxi accident, were paid on each policy.
Each of the policies contained an "other insurance” clause which stated:
"6. Other Insurance.
"With respect to bodily injury to an insured sustained while occupying an automobile or through being struck by an uninsured automobile, if such insured is a named insured under other similar insurance available to him, then the damages shall be deemed not to exceed the higher of the applicable limits of liability of this insurance and such other insurance, and the Exchange shall not be liable under this coverage for a greater proportion of the applicable limit of liability of this coverage than such limit bears to the sum of the applicable limits of liability of this insurance and such other insurance.
"Subject to the foregoing paragraph, if the insured has other similar insurance available to him against a loss covered by this coverage, the Exchange shall not be liable under this coverage, for a greater proportion of such loss than the applicable limit of liability hereunder bears to the total applicable limits of liability of all valid and collectible insurance against such loss.”
Plaintiff sought to recover under the uninsured motorist coverage of each of the three policies, claiming that the benefits should be stacked or pyramided entitling her to a total coverage of $60,000. Defendant, claiming that its liability was limited by the "other insurance” clause to a total of $20,000, paid the plaintiff $20,000 by three separate checks, each drawn on a separate policy for one-third of the total amount. Plaintiff filed an action for declaratory judgment which was decided in favor of the defendant. Plaintiff appeals.
In Horr v Detroit Automobile Inter-Insurance Exchange, 379 Mich 562; 153 NW2d 655 (1967), the Michigan Supreme Court held that an "other insurance” clause substantially similar to the one in the present case precluded stacking of uninsured motorist benefits between two insurance companies. Horr was decided at a time like the present when uninsured motorist coverage was not required. The Court, after finding no statutory or decisional law applicable, attempted to determine the intent of the contracting parties in interpreting the "other insurance” clause. The Court gave the "other insurance” clause its literal meaning and concluded that the maximum combined coverage of the policies was $10,000, which was the limit of liability in both policies. The "other insur anee” clause was then used to prorate the coverage between the insurers.
In Blakeslee v Farm Bureau Mutual Insurance Co of Michigan, 388 Mich 464; 201 NW2d 786 (1972), the plaintiff was allowed to stack uninsured motorist coverage from two insurance companies. However, the injury in Blakeslee occurred after the passage of MCLA 500.3010; MSA 24.13010 (since repealed) which required uninsured motorist coverage. The Court distinguished Horr and held that "[i]t would be unconscionable to permit an insurance company offering statutorily required coverage to collect premiums for it with one hand and allow it to take the coverage away with the other by using a self-devised 'other insurance’ limitation”. 388 Mich at 474.
The issue now before the Court was addressed in Arminski v United States Fidelity & Guaranty Co, 23 Mich App 352; 178 NW2d 497 (1970), leave granted, October 20, 1970, appeal dismissed by order dated June 2, 1971, 384 Mich 769. Arminski, like Horr, grew out of incidents which occurred before the statutory requirement of uninsured motorist coverage went into effect.
The plaintiff sought to stack two uninsured motorist provisions issued to him in a single contract. This Court found unpersuasive plaintiff’s attempt to distinguish Horr on the grounds that there was one insurance company charging two premiums in Arminski. The Court citing Horr gave a literal meaning to the language of the policy and found that defendant’s liability was limited to $10,000, which was the limit in each provision.
The rule in Michigan, in accord with Horr and Arminski, is that the insurer’s liability under a policy containing an "other insurance” clause is limited to the amount stated on the face of the policy. When an insurer issues multiple insurance policies, each providing uninsured motorist coverage and containing an "other insurance” clause, the insured party may not pyramid his damages, but can recover only the maximum amount to which he is limited by the "other insurance” clause.
In the clause involved here, there is no uncertainty or ambiguity. The clause is set forth as part of the insurance contract in clear and understandable terms: if the insured has other similar insurance available to him against a covered loss, the insurer can avoid the effect of cumulative or multiple limits on a single accident by a proration of the amount the insured can recover. This contract is enforceable unless considerations of equity and justice or of public policy dictate otherwise. Unlike Blakeslee v Farm Bureau Mutual Insurance Company of Michigan, supra, no such considerations are present here.
It is true that the insured has paid three separate premiums, but it is not true that under the Horr-Arminski analysis he is paying the extra amount for nothing. The additional premiums represent payments for the extra risks taken by the insurance company in insuring additional vehicles and were intended as such. This is the clear and plain import of the "other insurance” clause in the policy.
In the absence of ambiguities, the rights of the parties rest on the insurance contract as written. Courts should not indulge in forced construction so as to cast upon the insurance company liability which it has not assumed. See Topolewski v Detroit Automobile Inter-Insurance Exchange, 6 Mich App 286; 148 NW2d 906 (1967). The intention manifested by the policy is to limit the insur er’s liability. Both parties agreed to the provision and we cannot presume to rewrite their contract.
We note that a significant number of other jurisdictions which have considered the question have held that clauses prohibiting the pyramiding of recoveries by limiting them through "other insurance” and similar provisions on a pro rata basis are valid and enforceable. See Allstate Insurance Co v Shmitka, 12 Cal App 3d 59; 90 Cal Rptr 399 (1970), Otto v Allstate Insurance Co, 2 111 App 3d 58; 275 NE2d 766 (1971), Allstate Insurance Co v McHugh, 124 NJ Super 105; 304 A2d 777 (1973), aiFd, 126 NJ Super 458; 315 A2d 423 (1974), Kennedy v American Hardware Mutual Insurance Co, 255 Or 425; 467 P2d 963 (1970), Paciñc Indemnity Co v Thompson, 56 Wash 2d 715; 355 P2d 12 (1960).
We adopt the view of this line of cases and the view of our own Michigan courts in Horr and Arminski. Accordingly, we hold the "other insurance” clause agreed to by the parties in this case validly prohibits plaintiff from stacking her recoveries under the separate policies issued by the defendant. She is limited to a recovery of $20,000, the maximum liability on any of the three policies.
Affirmed. | [
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D. E. Holbrook, Jr., J.
This case involves an interpretation of the consecutive sentence statute, MCLA 768.7b; MSA 28.1030(2). That statute provides:
"Sec. 7b. When a person, who has been charged with a felony and pending the disposition of the charge, commits a subsequent offense which is a felony, upon conviction or acceptance of a guilty plea of the subsequent offense, the sentences imposed for conviction of the prior charged offense and any subsequent offense, may run consecutively.”
This appeal stems from the imposition of consecutive sentences based on two plea-based convictions of the defendant.
Defendant was initially charged in Macomb County with the felony of attempting to take possession and drive away the automobile of another. MCLA 750.92; MSA 28.287, MCLA 750.413; MSA 28.645. While the charge was pending and defendant was out on bond, he was arrested and charged in Detroit with the felony of aiding in the concealment of stolen property over the value of $100. MCLA 750.535; MSA 28.803.
On January 6, 1977, defendant pled guilty to the stolen property charge in Recorder’s Court in Detroit and was sentenced on March 2, 1977.
On January 27, 1977, in Macomb County Circuit Court the defendant pled guilty to the misdemeanor charge of attempted unlawful use of an automobile, MCLA 750.92; MSA 28.287, MCLA 750.414; MSA 28.646, in return for the dismissal of the felony charge of attempting to take possession and drive away the automobile of another. MCLA 750.92; MSA 28.287, MCLA 750.413; MSA 28.645. Defendant was sentenced in Macomb County Circuit Court on March 3, 1977. In imposing sentence on defendant’s latter misdemeanor conviction, the circuit judge noted the earlier Recorder’s Court conviction and sentence and concluded the defendant’s sentences could and would run consecutively pursuant to MCLA 768.7b; MSA 28.1030(2). We disagree.
In general, concurrent sentences are the norm and consecutive sentencing is not to be used except when specifically authorized by statute. In re Carey, 372 Mich 378, 380; 126 NW2d 727 (1964), People v Leal, 71 Mich App 319, 320; 248 NW2d 252 (1976), lv den, 399 Mich 821 (1977). It is clear that MCLA 768.7b;MSA 28.1030(2), is a specific statutory exception to the general rule and allows a trial court to impose consecutive sentences in appropriate circumstances. The purpose of the statute is deterrence — to provide an extra dose of punishment for those who commit a second felony while an earlier felony charge is pending. People v Bonner, 49 Mich App 153, 158; 211 NW2d 542 (1973), People v Mayes, 78 Mich App 618; 261 NW2d 22 (1977). We have no quarrel with the intent and validity of the statute but we conclude the statute cannot be applied in defendant’s case.
In the instant case: a) defendant was charged with a felony, b) was charged and convicted of a second felony while the first charge was pending, but c) was not convicted of the first felony since it was dismissed pursuant to a plea bargain whereby defendant pled guilty to a misdemeanor. A close reading of MCLA 768.7b; MSA 28.1030(2) leads us to conclude that consecutive sentencing is only appropriate when a defendant is convicted of the prior charged felony.
"Sec. 7b. When a person, who has been charged with a felony and pending the disposition of the charge, commits a subsequent offense which is a felony, upon conviction or acceptance of a guilty plea of the subse quent offense, the sentences imposed for conviction of the prior charged offense and any subsequent offense, may run consecutively.” (Emphasis supplied.)
Conviction of the "prior charged offense” — the felony — is a prerequisite for imposing consecutive sentences. Here the defendant was convicted of a misdemeanor and not the prior charged felony.
The prosecutor focuses on the deterrence purpose of the statute and argues that all the statute requires is that a second felony be committed when an earlier felony charge is pending. This interpretation not only ignores the statutory language requiring conviction of the charged offense but would violate an accused’s right to a presumption of innocence. The prosecutor’s analysis would equate being "charged” with being "convicted”. The statute allows consecutive sentencing only upon conviction of two or more felonies.
Defendant raises one other issue related to his sentencing but we find it to be without merit.
Reversed and remanded to Macomb County Circuit Court for resentencing. The defendant’s sentences shall run concurrently.
Beasley, J., concurred. | [
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P. R. Mahinske, J.
This case presents the question of whether statements in an employment handbook may constitute an offer to contract for severance pay, despite the presence of express disclaimers in the handbook and in its description of the severance pay plan. We hold that under the facts of this case no offer or enforceable promise was made by the handbook.
Plaintiff began working for defendant in 1955 as a process engineer. He continued in defendant’s employ until March, 1972, when he requested an educational leave of absence from April to September, 1972. This leave was granted; its terms did not guarantee plaintiff his job upon his return. In September, 1972, plaintiff’s leave was extended by mutual agreement until July 1, 1975. On that date, however, plaintiff’s former position or one comparable to it was not available, and plaintiff was "separated” from defendant.
Plaintiff commenced the instant action in March, 1976, seeking recovery of a separation allowance allegedly guaranteed by defendant’s employment handbook. This handbook, entitled "Working With General Motors”, was issued to plaintiff at the time of his employment. It contains a section entitled "Separation Allowance”, the first paragraph of which reads as follows:
"A Separation Allowance Plan has been established for the benefit of salaried employes laid off or separated from the payroll under certain circumstances. The primary purpose of this Plan is to provide a source of income to eligible employes beyond the date of their layoff or separation. The inclusion of a schedule of separation allowances in this booklet, together with the conditions governing their payment, however, is not intended nor is it to be interpreted to establish a contractual relationship with the employe. Where payments are made to a laidoff employe under this Plan, the term 'Separation Allowance’ will include layoff payments under the Separation Allowance Plan.”
On the last page of the handbook is a general disclaimer, italicized and outlined in red:
''The contents of this handbook are presented as a matter of information only. While General Motors believes wholeheartedly in the plans, policies and procedures described here, they are not conditions of employment. General Motors reserves the right to modify, revoke, suspend, terminate, or change any or all such plans, policies, or procedures, in whole or in part, at any time, with or without notice. The language used in this handbook is not intended to create, nor is it to be construed to constitute, a contract between General Motors and any one or all of its employes.”
Plaintiff asserted that the provisions of the separation allowance plan constituted an offer by defendant of a unilateral contract, which offer was accepted by plaintiff’s action of working for defendant. Defendant answered that due to the disclaimers, the separation allowance provisions could not possibly be construed as an offer that would reasonably be relied upon.
Defendant moved for summary judgment pursuant to GCR 1963, 117.2(3) on the ground that no genuine issue existed as to any material fact. The trial court granted defendant’s motion on Septem ber 27, 1976. That court reasoned that due to the disclaimers in the handbook, no contractual duty to pay a separation allowance arose on the part of the defendant. For the reasons outlined below, we affirm the trial court’s judgment.
Plaintiffs basic theory, that statements in a policy, plan, or other communication to employees may constitute an offer to contract, is sound. But it just does not apply to the facts of this case. In Cain v Allen Electric & Equipment Co, 346 Mich 568; 78 NW2d 296 (1956), the Court held that the adoption of a severance pay policy as part of a corporate personnel policy created an offer to contract which was accepted by plaintiffs action of continuing in defendant’s employ. More recent cases decided upon this theory include Gaydos v White Motor Corp, 54 Mich App 143; 220 NW2d 697 (1974), lv den, 392 Mich 800 (1974), and Clarke v Brunswick Corp, 48 Mich App 667; 211 NW2d 101 (1973), lv den, 391 Mich 765 (1974).
A review of the above cases and those from other jurisdictions dealing with various types of employee benefits reveals that the question of whether a contract exists is governed by ordinary principles of offer, acceptance, and consideration. In Cain, supra, for example, the Court found that the severance pay policy looked toward an agreement, and was not a mere gratuity or expression of a hope or intention. The Cain Court decided that the offer was a promise, relying on the following definition from 1 Corbin on Contracts, § 13, p 29:_
"A promise is an expression of intention that the promisor will conduct himself in a specified way or bring about a specified result in the future, communicated in such a manner to a promisee that he may justly expect performance and may reasonably rely thereon.”
From this definition it is clear that the theory of promissory estoppel may also be used to find an enforceable contract.
However, when the employer-employee communication fails to contain the elements of an offer, and when the requisites of promissory estoppel are not present, courts will not hesitate to find that no contract was ever formed. The following communications, for example, have been held not to constitute enforceable promises or offers capable of acceptance:
A booklet entitled "Know Your Company” which stated:
" 'It has been customary, since 1937, for the company to make a year end payment to employees. The amount of such payment, if any, depends upon the earnings available from operations, and is entirely at the discretion of the Board of Directors.’ ”
Borden v The Skinner Chuck Co, 21 Conn Supp 184, 188; 150 A2d 607, 609 (1958);
A staff bulletin outlining a plan of renewal bonuses which provided:
" 'This renewal bonus is a voluntary contribution on the part of the Company. It is agreed by you and by us that it may be withheld, increased, decreased or discontinued, individually or collectively, with or without notice. ’ ”
Spooner v Reserve Life Insurance Co, 47 Wash 2d 454, 457; 287 P2d 735, 737 (1955); and
A listing of "Suggestion System Rules” which included the following:
" 'Each suggestion is submitted with the understanding that the Company shall have the right to publish, use or refuse it and that if it is published or used, the decision of the company shall be final and conclusive as to the amount of a cash award, if any, and the person or persons entitled thereto, and all other matters concerning the suggestion.’ ”
Calkins v The Boeing Co, 8 Wash App 347, 349; 506 P2d 329, 330 (1973).
As with the above communications, General Motors’ handbook description of a separation pay plan clearly evinced an intention not to create an offer capable of acceptance. In addition, the manner of communication — couched in disclaimers — to the employee did not create a situation in which the employee could justly expect performance and reasonably rely thereon. Cain v Allen Electric Co, supra. It is difficult to imagine what defendant could have done, short of not mentioning the plan, to prevent the reading of its statement as an offer. Unlike the situation in Cain, supra, General Motors did not "adopt” a "policy” of severance payments as part of a drive to attract employees; instead, General Motors specifically stated that its separation pay schedule and conditions were not intended to establish a contractual relationship with the employee. An employee reading this language and that of general disclaimer at the end of the booklet should realize that further negotiations, and not merely the acceptance of employment with General Motors, are necessary to create a contract for severance pay.
Therefore, we hold that as a matter of law no contract existed between plaintiff and defendant. The trial court correctly granted summary judgment to defendant on the basis of no genuine issue as to any material fact. GCR 1963, 117.2(3).
Affirmed.
40 ALR2d 1044, Anno: Construction and effect of severance or dismissal pay provisions of employment contract or collective labor agreement, § 2; 42 ALR2d 461, Anno: Rights and liabilities as between employer and employee with respect to general pension or retirement plan; 81 ALR2d 1066, Anno: Rights and liabilities as between employer and employee with respect to general bonus or proñt-sharing plan.
See Restatement, Contracts, 2d, § 90. | [
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D. E. Holbrook, P. J.
Defendant, Harold Shears, appeals from a protective order precluding testimony, tests or records from being admitted into evidence relative to the alcohol level of plaintiffs decedent’s blood at the time of her death. Trial has not yet been held.
This is a wrongful death action arising from an accident which occurred on July 5, 1975, in Iosco County, Michigan. There has been a stipulated statement of facts filed in this case from which it appears that plaintiffs decedent, Mrs. Alvaina Ruth Miller, was a pedestrian who was struck and killed by a recreational motor vehicle driven by the defendant, Shears.
Decedent was a pedestrian and was walking in a northerly direction, either on the west shoulder of M-65 or on the west edge of the roadway (there is a factual dispute between the parties as to where the decedent was walking at that time), facing oncoming traffic. Defendant, Shears, driving his recreational vehicle in a northerly direction on M-65, pulled out onto the southbound lane to pass another motor vehicle. While in the process of passing that other northbound vehicle, defendant’s vehicle struck plaintiffs decedent.
Thereafter, the remains of the decedent were transported to the Tawas Hospital located in Ta-was, Michigan, and delivered into the custody of the deputy medical examiner for that county. No post mortem was performed. The deputy medical examiner determined that decedent’s death was the result of the physical impact to her body from the defendant’s vehicle. The deputy medical exam iner collected a blood specimen from decedent’s remains for the purpose of conducting a chemical analysis to determine the alcohol content in decedent’s blood. Plaintiffs decedent was dead at the time the blood sample was taken; no medical treatment was rendered or to be rendered to plaintiffs decedent by the deputy medical examiner; there was no criminal investigation in process or contemplated and no consent to the taking of the blood sample or its analysis was given by anyone.
Subsequent to the death of plaintiffs decedent, the administratrix of the estate commenced suit in the circuit court for the County of Genesee. Thereafter, plaintiff brought a motion for a protective order for the purpose of preventing the introduction into evidence at the time of trial of the results of the aforementioned chemical analysis pertaining to decedent’s blood-alcohol content. Plaintiffs motion was granted on April 26, 1976.
The issue raised on appeal is whether the trial court erred in granting plaintiffs pretrial motion for a protective order thereby excluding the evidence of decedent’s blood-alcohol content as of the time of her demise.
Defendant has asserted that the blood sample should be admitted because the deputy medical examiner, clothed with the duties of his office, took said blood sample as an official act as medical examiner. Defendant cites MCLA 52.202; MSA 5.953(2), MCLA 52.205; MSA 5.953(5), and MCLA 326.8; MSA 14.228. The only one which is on point is MCLA 52.205; MSA 5.953(5), which provides:
"When a county medical examiner has notice that there has been found or is lying within his county or district the body of a person who is supposed to have come to his death in a manner as indicated in section 3, [MCLA 52.203] he shall forthwith repair to the place where such body lies and take charge of same; and if, on view thereof and personal inquiry into the cause and manner of the death, he deems a further examination necessary, the county medical examiner or his deputy may cause such dead body to be removed to the public morgue. * * * The county medical examiner may perform or direct to be performed an autopsy and shall then and there carefully reduce or cause to be reduced to writing every fact and circumstance tending to show the condition of the body and the cause and manner of death, together with the names and addresses of any persons present at the autopsy, which record he shall subscribe.” (Emphasis added.)
The deputy medical examiner decided that the cause of death was so obvious that it was not necessary to conduct a post mortem examination. It is likewise as obvious to us as it was to the deputy medical examiner that the taking of the blood-alcohol sample test was unnecessary to ascertain the cause of death. Therefore, the said test was not a necessary official act of the deputy medical examiner. The only reason given by the deputy medical examiner as to why he gave the test was that it was part of a routine procedure where a death occurred as a result of an accident. We rule that the taking of the blood-alcohol sample was not a necessary official act of the deputy medical examiner under the statute. Under this finding we also conclude that the protective order of the trial court was properly granted. Lebel v Swincicki, 354 Mich 427; 93 NW2d 281 (1958).
For such evidence to be gathered by a police officer in order to be used in a potential criminal charge and retained for that purpose, may be proper. However, as in this case, to use such sovereignty powers of the state to acquire such evidence that becomes part of a civil case of one or another of two litigants we consider to offend our sense of fairness.
It also appears to us that the purpose defendant wishes to have the blood test admitted is to prejudice the plaintiff, and we rule that this purpose is untenable.
The defendant raises other issues which we feel are unnecessary to discuss in resolution of this case.
Affirmed, costs to plaintiff. | [
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R. B. Burns, J.
The defendant was found guilty by a jury of third-degree criminal sexual conduct, MCLA 750.520d; MSA 28.788(4). He appeals and we affirm.
The facts in this case are adequately set forth in the opinion written by Judge M. F. Cavanagh.
I would affirm the trial court on the basis of the reasoning set forth by Judge T. M. Burns in People v Thompson, 76 Mich App 705; 257 NW2d 268 (1977). | [
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P. R. Mahinske, J.
This case involves an accident between defendant’s camper and plaintiff’s motorcycle. At the trial level plaintiff sought recovery of damages for injuries sustained as a result of the allegedly negligent conduct of defendant in the use of his vehicle. The jury returned a verdict of no cause of action. From this ruling plaintiff appeals.
The decisive issues on appeal are: 1) whether the trial court committed reversible error when it instructed the jury that violation of the motorcycle license statute was negligence per se, and 2) whether a proper foundation was established for the trial court to permit submission of plaintiffs driving record to the jury.
At the time of, trial the instruction on negligence per se was not erroneous. However, in Zeni v Anderson, 397 Mich 117; 243 NW2d 270 (1976), the Michigan Supreme Court abandoned the per se rule and adopted instead a rebuttable presumption of negligence to be overcome by the plaintiff The Zeni Court stated as follows at p 143:
"An accurate statement of our law is that when a court adopts a penal statute as the standard of care in an action for negligence, violation of that statute establishes a prima facie case of negligence, with the determination to be made by the finder of fact whether the party accused of violating the statute has established a legally sufficient excuse.”
This new approach of presuming negligence upon violation of a statute does not make the trial court’s instruction reversibly erroneous. It merely overturns the law which was in effect at that time, i.e., that expressed by SJI 12.03. In either case plaintiff must show he was not negligent or, as Zeni put it, "establish a legally sufficient excuse”. In the instant case plaintiff did neither. In fact, in his brief plaintiff admits that "there are facts to show that both vehicle operators could be negligent”.
Michigan Standard Jury Instruction 12.03 was in effect at the time of trial. A Note to that instruction suggests that it should be given only if the defendant has alleged a statutory violation as a ground for contributory negligence and only if:
"1. the statute is intended to protect against the result of the violation;
2. the plaintiff is within the class intended to be protected by the statute; and
3. the evidence will support a finding that the violation was a proximate contributing cause of the occurrence.”
The Note goes on to provide that if there is no question that the statute was violated, and no. claim of excuse for the violation, then the jury should be instructed that plaintiff was negligent as a matter of law.
In the case at bar defendant did not specifically plead a statutory violation. However, the Note does not make the giving of the instruction solely dependent upon defendant’s alleging a statutory violation. Here defendant did allege that plaintiff was guilty of contributory negligence which was a proximate cause of the accident. Since a violation of the motorcycle license statute was elicited during cross-examination of the plaintiff, there could have been no surprise to the plaintiff. See Brockschmidt v Verwys, 73 Mich App 144; 250 NW2d 568 (1977). Furthermore:
1. The motorcycle license statute is intended to protect against accidents involving motorcycles driven by persons who have not been legally recognized as competent in their operation.
2. Plaintiff is within the class of persons intended to be protected by the statute. Under the statute plaintiff should have passed an examination which included a driving test designed to assess his competency to drive a motorcycle.
3. Plaintiff did not submit to such an examina tion and this violation could properly have been considered by the jury to be a proximate cause of the accident.
In addition, plaintiff admitted this violation and offered no legally sufficient excuse for the violation. Therefore, the lower court’s instruction on negligence per se was proper under former law and harmless under present law.
Turning now to the second issue, the law pertaining to cross-examination concerning driving records in contested motor vehicle accident cases is set forth in Sting v Davis, 384 Mich 608, 614; 185 NW2d 360 (1971). In that case the Court held that a trial judge has no discretion to exclude cross-examination with regard to the driving history of plaintiff or defendant. Credibility of these witnesses is usually the central issue in the case, and their driving records may have "a vital bearing in enabling a jury to determine the truth of a plaintiff’s or defendant’s testimony as to the exercise of due care”. Sting v Davis, supra at 614.
We find the above rationale to be applicable to the present factual situation. Credibility of plaintiff was indeed a central issue of the case, and the trial judge noted that plaintiff’s driving record was being admitted to test his credibility. Therefore, there was no error in the submission of plaintiff’s driving history to the jury.
We find plaintiff’s other assignments of error to be also without merit.
Affirmed.
D. C. Riley, P. J., concurred.
Now MCLA 257.312a; MSA 9.2012(1) and MCLA 257.312b; MSA 9.2012(2). | [
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Per Curiam.
Plaintiffs brought a wrongful death action in the Court of Claims alleging negligence by defendants’ employees in allowing plaintiffs’ decedent to be temporarily released from a state mental health facility. Plaintiffs’ decedent committed suicide while on a temporary visit to his parents’ home. The Court of Claims granted defendants’ motion for accelerated judgment, grounded on sovereign immunity, MCLA 691.1407; MSA 3.996(107). Plaintiffs appeal as of right.
A majority of the Michigan Supreme Court recently held that the proper inquiry in a case such as this is whether the activity has been treated as a "governmental function” by the case law at the time of enactment of 1970 PA 155 (MCLA 691.1407 et seq; MSA 3.996(107) et seq.), Thomas v Department of State Highways, 398 Mich 1; 247 NW2d 530 (1976). Prior case law has uniformly treated operation of a public hospital as a "governmental function”. See White v Detroit, 74 Mich App 545; 254 NW2d 572 (1977), and Snow v Freeman, 55 Mich App 84; 222 NW2d 43 (1974). In the instant case, plaintiffs’ allegations of tortious activity: employing incompetent personnel, granting a patient with suicidal tendencies temporary release for visits with his parents, failing to supervise the activities of the patient while on the temporary visit, and failing to instruct the parents of the patient in the care and treatment of the patient while on temporary visit, all relate to the exercise or discharge of a governmental function. Plaintiff has failed to "plead facts in the complaint, in avoidance of immunity”. McCann v State of Michi gan, 398 Mich 65, 77, 80; 247 NW2d 521 (1976), Ryan, J., concurring. Therefore, the "specific tortious activity alleged against the state or its agencies” is within the protection of the immunity doctrine.
Plaintiffs contend that MCLA 691.1407; MSA 3.996(107) is unconstitutional. The Michigan Supreme Court has recently had an opportunity to consider that issue and has declined to hold the statute unconstitutional, Thomas, supra, McCann, supra, and Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976). We decline as well.
Affirmed. No costs, a public question. | [
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D. F. Walsh, P. J.
Plaintiff brought a products liability action to recover for injuries sustained when the glass bowl of an electric coffee maker broke as the plaintiff was affixing a plastic cover to it. She appeals from a jury verdict of no cause of action.
Plaintiff assigns as error the trial court’s exclusion of evidence of a subsequent design change to show the existence of a previous design defect. Specifically, she offered proof that it required 8 pounds of pressure to snap the cover onto the model that caused her injury, whereas a newer model required only 3 pounds of pressure.
It is well settled that evidence of subsequent remedial measures are generally not admissible when offered to prove negligence or culpable conduct on the part of a defendant. Denolf v Frank L Jursik Co, 395 Mich 661; 238 NW2d 1 (1976), Smith v E R Squibb & Sons, Inc, 69 Mich App 375; 245 NW2d 52 (1976). The question in the instant case is whether that exclusionary rule should apply in a products liability action where the evidence is offered not to prove negligence but to show that the original product was defective.
The primary rationale for the rule is that admission of such evidence would discourage owners from attempting preventive repairs because of the fear that evidence of such acts might be construed as an admission of prior culpable conduct. Denolf v Frank L Jursik Co, supra, McCormick, Evidence (2d ed), § 275, pp 666-667. We find that the policy considerations that preclude the admission of such evidence to prove negligence are equally applicable where the fact to be proven is a product defect. See, Denolf v Frank L Jursik Co, supra, at 667 fn 4, Proposed Michigan Rules of Evidence, Rule 407, Committee Comment. The trial court correctly excluded plaintiff’s evidence.
Plaintiff next contends that the trial court erred in not permitting comment on defendant’s failure to produce its expert witness. However, before counsel can properly comment upon the absence of an adverse party’s witness, there must be some showing that the missing testimony was important and material. Cook v Standard Life & Accident Insurance Co, 86 Mich 554; 49 NW 474 (1891). Plaintiff has made no such showing and we find no error.
Plaintiff argues further that upon denying comment on the absent witness, the trial court sua sponte should have suggested a continuance to give plaintiff an opportunity to subpoena the witness. Plaintiff cites no legal support for this novel proposition and we know of none that could be cited.
Error is also assigned to the trial court’s failure to instruct on strict liability. Michigan does not recognize "strict liability” as a theory of recovery. Johnson v Chrysler Corp, 74 Mich App 532; 254 NW2d 569 (1977), Dooms v Stewart Bolling & Co, 68 Mich App 5; 241 NW2d 738 (1976). Hence, the trial court’s omission of that theory was not error.
The final claim is that the trial court erro neously included a reference to negligence in its instruction on the implied warranty theory.
"Now, on the basis of an implied warranty, the plaintiff has the burden of proof of each of the following:
"First, that the coffee pot was not reasonably fit for the use or purpose anticipated by the defendant in one or more of the ways claimed by the plaintiff.
"Secondly, that the coffee pot was not reasonably fit for the use or purpose anticipated or reasonably foreseeable by the defendant at the time it left the control of the defendant.
"Thirdly, that the plaintiff was injured.
"Fourthly, that the negligent manufacturer of the coffee pot was the proximate cause of the injury.” (Emphasis added.)
Plaintiff did not object to the instruction, and we will not reverse the jury’s verdict absent a showing of manifest injustice. Reed v Stretten, 69 Mich App 519; 245 NW2d 117 (1976). We have carefully reviewed the entire record with particular attention to the full instruction given by the court. We are not persuaded that manifest injustice occurred.
Affirmed. | [
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Allen, J.
Defendant appeals from the March 29, 1976, jury verdict totaling $142,298.40 for the plaintiff in Genesee County Circuit Court. In addition to the usual procedural and instructional allegations of error, the appeal requires that we analyze the various causes of action and damage remedies available to an insured plaintiff who alleges that the insurance company defendant unreasonably resisted his claims for benefits.
The dispute arose from a disability income policy purchased by the plaintiff from the defendant on September 15, 1972. On December 2, 1972, plaintiff severely injured his right leg in a motorcycle accident and filed a claim for benefits. Defendant, which had some reason to question the validity of the claim, paid benefits for the first two months only after requiring extensive documentation from the plaintiff and requiring that he file a separate claim for each month’s benefits. Simultaneously, the defendant was conducting overt and covert investigations to determine the validity of the claim. Although benefits for the first two months were paid, they were not paid until some time after they were due. When the third month’s payment was also late, the plaintiff again contacted the defendant. In a phone conversation, an agreement was worked out whereby the defendant would immediately pay three months’ benefits in return for the plaintiff’s agreement to waive benefits for a six-month period, i.e., until October 1, 1973.
In November of 1973, the plaintiff again requested claim forms for additional benefits, but never submitted a claim. This suit was filed in August of 1974. After a lengthy trial, the jury found for the plaintiff and returned the following items of damages: (1) $16,500 in benefits under the disability insurance contract; (2) $75,000 for "mental or emotional distress”; (3) $50,000 for "exemplary damages”.
This appeal presents a number of difficult questions of law. We begin with the most difficult of those issues.
I. What causes of action and damage remedies are available to an insured who alleges that he has suffered mental anguish as a result of his insurance company’s bad faith refusal to honor a valid claim?
While instructing the jury on exemplary damages, the trial judge noted "that the law is somewhat confusing in this regard”. We can only second that observation and extend it to all of the issues raised by the above stated question.
In addition to traditional breach of contract and contract damage theories, the cases in this area appear to have accomplished an unfortunate intermingling of four related concepts which ought to have separate identities. Specifically, we refer to: (1) the tort cause of action for intentional infliction of emotional distress; (2) damages for emotional distress; (3) exemplary damages; and (4) punitive damages. We will first discuss causes of action; an analysis of damage categories follows that discussion. See also Anno: Insurer’s Liability for Consequential or Punitive Damages for Wrongful Delay or Refusal to Make Payments Due Under Contracts, 47 ALR3d 314.
Traditionally, a plaintiff who successfully sued for breach of contract could obtain either specific performance or a damage award equal to the pecuniary equivalent of what he would have received if the contract had not been breached. It was not considered possible to compute consequential damages for mental anguish caused by the breach; and breach of contract was not considered sufficiently reprehensible to justify punishment unrelated to compensating the plaintiff for his loss. See the analysis by Justice Smith in Stewart v Rudner, 349 Mich 459; 84 NW2d 816 (1957). See also Jankowski v Mazzotta, 7 Mich App 483; 152 NW2d 49 (1967).
In Stewart v Rudner, supra, the Supreme Court allowed a plaintiff to recover damages for mental anguish resulting from her physician’s breach of contract calling for a caesarean section delivery of the plaintiff’s baby. The specified operation was not performed and, possibly as a result of that failure, the baby was stillborn. While recognizing the traditional rule that damages for mental anguish are not recoverable in breach of contract actions, the opinion in Stewart recognized an exception for contracts which deal with "matters of mental concern and solicitude, * * * [where] a breach of duty with respect to such contracts will inevitably and necessarily result in mental anguish, pain and suffering”. 349 Mich at 471.
It is important to note that Justice Smith’s opinion in Stewart v Rudner, supra, was not signed by a majority of the justices. Four members of the Court signed the opinion while the other four justices concurred in the result without specifying the reasons for their refusal to join in the opinion. The opinion has often been cited for its analysis of prior law, but no majority opinion of the Supreme Court has ever either adopted or rejected its central thesis.
However, in the Court of Appeals, that opinion has been used to justify a significant expansion in the remedies available to an insured person who alleges that his insurer has breached the insurance contract. The trend, which has rapidly accelerated in the last year, began with Frishett v State Farm Mutual Insurance Co, 3 Mich App 688; 143 NW2d 612 (1966), lv den, 378 Mich 733 (1966). That decision held that an insured could bring a tort action for intentional infliction of emotional distress against her own automobile insurance company. As authority for that holding, Frishett cited Stewart v Rudner, supra, and the Restatement, Torts (1948 supp), § 46. By citing Stewart in the context of a tort decision, the Frishett opinion began the intermingling of tort and contract law which has created so much confusion in the present case.
Defendant insurance company sought leave to appeal the Frishett decision to the Supreme Court. In its order denying leave, the Supreme Court said:
"Reversal of this summary judgment will doubtless bring about a trial of plaintiffs allegations, the record of which will provide a much better footing for determination of the posed question of law.
"It is time to remind again as Justice Holmes did for the court in United States v Carver, 260 US 482, 490 (43 S Ct 181, 67 L Ed 364), that 'The denial of a writ of certiorari imports no expression of opinion upon the merits of the case, as the bar has been told many times’, and that this Court has formally adopted that reminder as expressive of its policy and attitude toward the effective orders denying leave to appeal [Citations omitted.]
"This means that the Supreme Court expresses no present view with respect to the legal questions dealt with in the opinion of the Court of Appeals.” 378 Mich at 733-734.
Unfortunately, Frishett never returned to the appellate courts, thus the Supreme Court never spoke on the questions decided by the Court of Appeals. No subsequent Supreme Court decision has ever cited Frishett but, along with Stewart v Rudner, supra, Frishett has pioneered the aforementioned expansion of remedies in this Court.
Insurance contracts were once thought to be commercial in nature and thus not eligible for the Stewart v Rudner exception for contracts involving matters of mental concern and solicitude. See e.g., Secor v Pioneer Foundry Co, 20 Mich App 30; 173 NW2d 780 (1969). But that perception of insurance contracts began to change in McCune v Grimaldi Buick, 45 Mich App 472; 206 NW2d 742 (1973), wherein plaintiff was allowed to recover mental anguish damages from his employer because the employer had breached a provision of the employment contract requiring it to pay the plaintiffs health insurance premiums. This holding was based squarely on the "mental concern and solicitude” rule in Stewart v Rudner, supra, without recognition of the fact that there was no majority opinion in the Stewart case.
The next important decision in this series was Krajenke v Preferred Mutual Insurance Co, 68 Mich App 211; 242 NW2d 70 (1976), wherein this Court held that a plaintiff insured could recover "exemplary damages” from her insurance company where the company had wrongfully failed to honor a claim for freezing damage to the plaintiffs house. The Krajenke opinion is confusing in two respects. First, while it purports to authorize exemplary damages for breach of insurance contract, it cites Frishett v State Farm Mutual Insurance Co, supra, which recognized a tort for intentional infliction of emotional distress. Krajenke then compounds the problem by emphasizing that the Frishett opinion was based on the Restatement of the Law of Torts. Also, in the context of a quotation from Frishett, Krajenke relies on Stewart v Rudner, supra, without any explanation as to why a property casualty insurance policy might be classed as a contract involving "matters of mental concern and solicitude”. The actual result in Krajenke was to remand for a new trial because the trial court had failed to adequately explain exemplary damages to the jury.
The next important case is Palmer v Pacific Indemnity Co, 74 Mich App 259; 254 NW2d 52 (1977). The defendant in that case was a medical malpractice insurer. Its insured was found to be entitled to damages for mental distress because the defendant breached the duty to defend clause of the insurance contract by failing to appeal a malpractice judgment against the plaintiff which exceeded the limits of the policy. The opinion cites Stewart v Rudner, supra, and McCune v Grimaldi Buick, supra.
The most recent case touching on these issues is Seaton v State Farm Life Insurance Co, 75 Mich App 252; 254 NW2d 858 (1977). Plaintiff successfully appealed in that case from a judgment of no cause of action for the defendant life insurance company which had refused to pay benefits for the death oí1 the plaintiff’s husband. The plaintiff had requested jury instructions on (1) "punitive or exemplary damages”; and (2) "mental anguish” damages. 75 Mich App at 257. The trial court refused to give instructions on either subject. On appeal, this Court held that the jury should have been instructed on mental anguish damages since a personal life insurance policy entailed "matters of mental concern and solicitude”. 75 Mich App at 260. Palmer v Paciñc Indemnity Insurance Co, supra, and McCune v Grimaldi Buick, supra, were cited in support of this holding. This Court did not discuss the separate request for punitive or exemplary damages. It is not clear from the Seaton opinion whether that panel agreed with the trial judge that punitive and exemplary damages were the same as damages for mental anguish, or whether it believed that those damages had a separate identity but were not appropriate in the Seaton case.
None of the cited Court of Appeals cases have been reviewed by the Supreme Court. With that caveat in mind, we will attempt a summary of the rules established by Stewart v Rudner, supra, and the several decisions of this Court.
First, Frishett v State Farm Mutual Insurance Co, supra, establishes at least a theoretical possibility of recovering in a tort action against an insurer. We are not aware of any Michigan case in which such a recovery has actually been obtained.
The majority of the cases have dealt with awarding damages for mental anguish in breach of contract actions based on insurance policies. These cases all trace their roots to Justice Smith’s opinion in Stewart v Rudner, supra, where he stated that such damages were awardable for a breach of contract where the contract involved "matters of mental concern and solicitude”. The contract in volved in Stewart was unique. At that time, it is doubtful that any type of insurance contract would have qualified for the exception discussed by Justice Smith. One of the remarkable things about the recent decisions of this Court has been the ease with which a variety of insurance policies have been accepted as contracts involving mental concern and solicitude. That phrase now encompasses health insurance (McCune v Grimaldi Buick, supra), fire and casualty insurance (Krajenke v Preferred Mutual Insurance Co, supra), professional malpractice insurance (Palmer v Pacific Indemnity Insurance Co, supra), and life insurance (Seaton v State Farm Life Insurance Co, supra). No Michigan court has considered whether disability insurance should be placed in the same classification. In Bolden v John Hancock Mutual Insurance Co, supra, fn 3, a Federal district judge held that disability insurance did not qualify for the Stewart exception. However, that decision was made without the benefit of McCune, Krajenke, Palmer, and Seaton. Given the clear consensus of this Court established by those four decisions, we must reject Bolden, and hold that disability insurance contracts are also concerned with matters of mental concern and solicitude.
Having established that damages for mental anguish are sometimes recoverable in the context of an insurance contract dispute, our next task is to further define exactly when such damages are recoverable.
Frishett v State Farm Mutual Insurance Co, supra, must be treated separately. If a plaintiff can establish the tort of intentional infliction of emotional distress, he obviously may recover damages for that emotional distress. Since many Michigan decisions state that exemplary damages are in tended to compensate for mental distress, the question arises as to whether a plaintiff might recover both tort damages for emotional distress and exemplary damages. This question is discussed in more detail below.
The next question is whether mental anguish damages are recoverable whenever a breach of insurance contract results in mental anguish. With the exception of Krajenke v Preferred Mutual Insurance Co, supra, the decisions seem to require only that the breached contract involve matters of mental concern and solicitude. If that requirement is met, the plaintiff is entitled to damages for mental anguish if those damages can be established. Stewart v Rudner, supra, McCune v Grimaldi Buick, supra, Palmer v Paciñc Indemnity-Insurance Co, supra, and Seaton v State Farm Life Insurance Co, supra. Krajenke is a special case because its reliance on Frishett v State Farm Mutual Insurance Co, supra, makes it a hybrid tort/contract case. By adopting language from the Restatement of the Law of Torts, Krajenke would require that a plaintiff establish that the insurance company’s breach had been done with the intent to inflict mental suffering and that the conduct go beyond "all reasonable bounds of decency”. 68 Mich App at 218-19. The clear consensus of the pure contract cases is that a plaintiff must establish three things: (1) that the contract involves matters of mental concern and solicitude; (2) that the contract has been breached; and (3) that the breach has caused mental anguish.
Having established that mental anguish damages may be recovered in the context of an insurance contract dispute, and having outlined the elements which a plaintiff must establish in order to recover such damages, we now must precisely define the damages which are recoverable. This requires a sorting out of four interrelated and often confused concepts: (1) damages for the tort of intentional infliction of emotional distress; (2) damages for mental anguish caused by a tort or a breach of contract; (3) exemplary damages; and (4) punitive damages.
We again begin by setting aside Frishett (and probably Krajenke) which clearly involved only the first type of damages, i.e., damages resulting from the tort of intentional infliction of emotional distress.
The second category, i.e., mental anguish damages caused by either a tort or a breach of contract is fairly straightforward. It has always been accepted that those damages were frequently suffered by tort or contract breach victims. The concern has been that such damages could not be accurately measured and that they could easily be fraudulently claimed. The recent cases, however, indicate that those concerns are no longer a bar to recovery. See Stewart, McCune, Palmer and Sea-ton. If a plaintiff establishes the three prerequisites for recovery of mental anguish damages, a jury may properly be asked to place a pecuniary value on those damages.
The final two damage categories i.e., exemplary damages and punitive damages are hopelessly intertwined unless they are, in fact, the same thing. The two terms are often used interchangeably. See Alexander v Detroit, 392 Mich 30; 219 NW2d 41 (1974), and 9 Michigan Law & Practice, Damages, § 91, p 87. It has been held that Michigan never awards true punitive damages because damages are always awarded to compensate, never to punish. Ray v Detroit, 67 Mich App 702; 242 NW2d 494 (1976). But cf. Dassance v Nienhuis, 57 Mich App 422; 225 NW2d 789 (1975), wherein this Court clearly intended to punish the defendant for especially reprehensible behavior even if the plaintiff had not suffered damages commensurate with the punitive damage award.
However the term may have been used in the past, we will treat punitive damages as damages awarded solely to punish. We are not aware of any Michigan case in which punitive damages have been awarded for a breach of contract. In Dassance v Nienhuis, supra, such damages were awarded for tortious interference in a contract, a tort.
The concept of exemplary damages remains to be defined. We believe that Ray v Detroit, supra, sets forth a proper definition. The Ray decision is especially useful because it clearly states that exemplary damages are awarded to compensate, not to punish. The Ray case states that exemplary damages are awarded to compensate for "injury to feelings” when the injury has been "maliciously and wantonly inflicted”. 67 Mich App at 704.
Because exemplary damages as defined in Ray are awarded to compensate injured feelings, there obviously is an overlap with the concept of damages for mental anguish caused by a tort or a breach of contract. We previously raised but did not decide the question of whether both types of damages might be recovered for the same tort or breach of contract. The present case raises precisely that question and we hold that the recovery which was allowed here, viz., $75,000 for mental or emotional distress, and $50,000 for exemplary damages was an impermissible double recovery for the same mental anguish. Therefore, the damage award must be reduced. There are statements in some of the cases which would suggest that a double recovery may be permitted. See Hasted v Van Wagnen, 243 Mich 350; 220 NW 762 (1928). And see the quotation from Scripps v Reilly, 38 Mich 10 (1878), which appears at page 705 of the opinion in Ray v Detroit, supra. However, we are convinced that such a double recovery could be permitted only if treated as punitive damages, i.e., damages which are intended solely to punish, not to compensate. Thus, the statements that suggest the possibility of a double recovery are completely inconsistent with the definitions of exemplary damages which emphasize that exemplary damages are awarded solely to compensate.
Absent some authority authorizing us to punish defendants, we will not allow a double recovery. If a plaintiff seeks to recover in both contract and tort, he may not recover the same damages under both theories. Similarly, where a plaintiff alleges a breach of contract for which mental anguish damages are recoverable, he may not also recover exemplary damages.
A review of the cases suggests that exemplary damages as they are defined in Michigan were intended to mitigate the harshness of the rule that mental anguish damages could not be recovered even when proven. Stilson v Gibbs, 53 Mich 280 (1884), Wise v Daniel, 221 Mich 229; 190 NW 746 (1922), Smith v Jones, 382 Mich 176; 169 NW2d 308 (1969) (Adams, J., concurring). Thus it seems likely that exemplary damages were awarded for injured feelings where the defendant’s conduct was so reprehensible that it would have been unjust to allow him to rely upon the prohibition against recovery of mental anguish damages. But the converse of that rule should also apply. Since we now propose to allow recovery of mental anguish damages resulting from the breach of certain insur anee contracts, plaintiffs in such cases should not be allowed a double recovery through an award of exemplary damages.
We earlier noted that this Court has been the principal actor in expanding the remedies available to insured persons in disputes with their insurance companies. None of the important decisions of this Court has been evaluated in a full opinion by the Supreme Court. And Stewart v Rudner supra, the one Supreme Court decision which we have extensively discussed, was not a majority opinion. We have attempted to collect all of the relevant recent decisions and, where necessary, harmonize those decisions in order to present a consensus rule. Given the increasing frequency of these cases, we believe that the bench and bar would benefit greatly from a thorough Supreme Court discussion of these issues. Perhaps the present case will serve as a vehicle for that purpose.
II. Which causes of action and elements of damage were properly pled by the plaintiff?
Every complaint must contain:
* * * such specific averments as are necessary reasonably to inform the adverse party of the nature of the cause he is called upon to defend.” GCR 1963, III. 1(1).
Further, when items of special damage are claimed, they must be specifically stated in the complaint. GCR 1963, 112.8.
The General Court Rules of 1963 were intended to substitute notice pleading for rigid forms of action. GCR 1963, 13, specifically states that errors or defects which do not affect the substantial rights of the parties are never grounds for rever sal. Substantial omissions from a complaint should be overlooked if the complaint is nonetheless sufficient to provide the defendant with notice of the claims against which he must defend. City of Auburn v Brown, 60 Mich App 258; 230 NW2d 385 (1975). But recovery should be denied if the complaint is not sufficiently specific to reasonably apprise the defendant of the nature of the claims he must answer. Lockaby v Wayne County, 63 Mich App 185; 234 NW2d 444 (1975).
We have carefully reviewed all of the pleadings filed by the plaintiff, including his complaint, the various pretrial summaries, his belatedly proposed amendment to the complaint and the equally tardy reply to the defendant’s affirmative defenses. Those pleadings clearly allege a breach of the disability insurance contract and request as damages whatever amounts the plaintiff should have received pursuant to that contract. We also find a request for "punitive” damages and miscellaneous allegations that the defendant acted in bad faith and breached its "fiduciary duty” under the contract.
The plaintiff urges us to find in those pleadings sufficient allegations to permit him to recover: (1) damages for the tort of intentional infliction of emotional distress; (2) mental anguish damages caused by either a tort or a breach of contract; or (3) exemplary damages.
In deciding if the pleadings are sufficient, we are required to balance our policy in favor of liberal pleading rules against our obligation to protect the defendant against unfair surprises. We must require more of the plaintiff in this case than we would in a more traditional tort or breach of contract action because we are dealing with concepts which are still experimental and not well established in Michigan law. As our earlier discussion should indicate, most of the developments on this front have occurred very recently. In fact, three of the cases which support a plaintiffs right to recover mental anguish damages from an insurer were decided after the trial in this case. Krajenke v Preferred Mutual Insurance Co, supra, Palmer v Paciñc Indemnity Insurance Co, supra, and Seaton v State Farm Life Insurance Co, supra. Given this situation, we believe that a plaintiff has a greater obligation to be specific in his allegations than he would be if his complaint raised more traditional theories.
We find no allegations in the pleadings which would support a tort recovery for intentional infliction of emotional distress.
Similarly, we find no allegation sufficient to support a recovery of mental anguish damages for breach of a contract.
The exemplary damage question is the most difficult one for us. In the first section of this opinion, we held that exemplary damages could not be recovered in this type of case because it was possible to recover damages for mental anguish and exemplary damages were intended to compensate for the same injuries. But, defects in the pleadings have prevented recovery of mental anguish damages. The plaintiff did not specifically request exemplary damages. But he did request punitive damages. Historically, punitive damages have overlapped exemplary damages. And exemplary damages in turn have overlapped damages for mental anguish which we have held are recoverable in this type of breach of contract action. This multiple overlap factor weighs in favor of allowing some recovery.
The plaintiff concedes "that the complaint is not a work of art”. With that we must agree. Nevertheless, it does allege conduct by the defendant which went well beyond proper investigation and negotiation. It also requests that additional damages (called punitive damages in the complaint) be awarded because of the defendant’s allegedly reprehensible conduct. Previous cases have been very lenient about the requirement that the mental anguish basis for exemplary damages be specially pleaded. See Wise v Daniel, supra, and Smith v Jones, supra. It is a close question, but we believe that the allegations were sufficient to support an exemplary damage recovery in this case since there will be no direct recovery for mental anguish damages.
III. Other issues
Defendant also appeals from several evidentiary rulings made by the trial court. Some of those issues have become moot by virtue of our prior holding in this opinion. As to those questions which have not become moot, we believe that the trial judge did not err.
The parties also disagree as to the legal effect of the agreement of May 2, 1973, under which the defendant agreed to pay three months benefits and the plaintiff agreed to waive all his claims until October 1, 1973. The trial judge refused to direct a verdict on any part of that agreement. Instead, he let the jury interpret the agreement. We believe that the plaintiff’s interpretation of the agreement is the correct one. However, the agreement is sufficiently ambiguous to justify the trial court’s refusal to interpret it as a matter of law. Since it is clear that the jury also adopted the plaintiff’s interpretation, we see no possibility of prejudicial error.
Defendant next argues that the plaintiff’s attorney was guilty of improper prejudicial questioning and argument. Viewed as isolated incidents, some of the plaintiff’s attorney’s statements were clearly improper. However, viewed in the context of this extremely lengthy trial, the impact of those statements was greatly diminished. Further, the trial judge took pains to instruct the jury to disregard those very statements which carried the greatest potential for improper prejudice. We see no basis for reversal on this point.
The defendant next complains of the trial judge’s rulings on several instructional questions. As with the evidentiary rulings, many of these issues have become moot by virtue of our prior holdings in this opinion. An important exception is the dispute over whether the jury should have been instructed that the plaintiff’s "usual occupation” was real estate sales or whether the jury should have been left free to decide that the plaintiff was also a sheet metal worker. This question was important because the policy provided benefits if the plaintiff was disabled from his "usual occupation”. Given the disparate amounts of physical activity required, it was obviously much more likely that the plaintiff was disabled from sheet metal working than that he was disabled from real estate work. The trial judge refused to direct a verdict on this point, choosing instead to let the jury decide upon the plaintiffs usual occupation. While the bulk of the evidence seemed to indicate that the plaintiff had abandoned sheet metal working in favor of a real estate career, there was some evidence to support the contrary view. Therefore, the trial judge did not err by submitting the question to the jury.
Finally, the defendant argues that the jury awards for mental distress and exemplary damages were contrary to the weight of the evidence and were the product of improper passion and prejudice. This is similar to the argument about attorney misconduct, and we reject it for similar reasons.
IV. Conclusion
The awards of $16,500 damages for breach of the disability insurance contract, $50,000 for exemplary damages and $798.40 for breach of the companion life insurance policy are affirmed. The award of $75,000 for mental or emotional distress is reversed.
No costs, neither party having prevailed in full.
The jury also awarded $798.40 as the agreed cash value of a related life insurance policy. That portion of the verdict will not be separately discussed in this opinion.
For an earlier example of the same reasoning, see Miholevich v Midwest Mutual Auto Insurance Co, 261 Mich 495; 246 NW 202 (1933).
Krajenke was actually decided a few months before Bolden v John Hancock Mutual Life Insurance Co, 422 F Supp 28 (ED Mich, 1976), a Federal case applying Michigan law. Bolden correctly distinguishes between tort and contract concepts; but it is flawed by its failure to anticipate the willingness of this Court to allow recoveries in insurance contract cases.
The opinion also cites Frishett v State Farm Mutual Insurance Co, supra. While Frishett is similar in spirit, we once again emphasize that Frishett should be cited as a tort case, not as a breach of contract case. The Frishett court summarized the question before it as follows:
“The question before this Court is whether the plaintiff may recover damages for mental suffering caused by deliberate acts done with the intent to cause such mental suffering.”
Frishett is a tort case, but it drew support by analogy from Stewart v Rudner, supra, a contract case. Both Palmer v Paciñc Indemnity Co, supra, and Krajenke v Preferred Mutual Insurance Co, supra, cited Stewart and Frishett without explicitly recognizing the tort/contract differentiation.
The reply to affirmative defenses which was filed at the beginning of trial also contains allegations that the defendant’s conduct was "deceitful” and amounted to "malicious conduct”. However, it should be noted that the trial judge allowed filing of this belated pleading based on his finding that it added nothing of substance to the pleadings which were already of record.
In cases tried after the release of this opinion, plaintiffs who fail to properly plead mental anguish damages should not expect to achieve the same result by changing labels. We have made allowances for both sides here because of the newness of the concepts involved. We also note that the trial judge’s instructions on exemplary damages were excellent. Thus we have no concern that the damages were awarded without proper findings by the jury. | [
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Danhof, C. J.
After a nonjury trial based on stipulated facts, the trial court found that plaintiff had failed to carry her burden of proof in establishing the existence of a partnership between herself and her late husband. On appeal, plaintiff claims that the trial court’s decision was clearly erroneous. We affirm.
In 1959, plaintiff met Philip Miller. Later, Mr. Miller asked plaintiff to marry him, to move to Jackson and to help him run his nursery business. They were married in Baltimore, and plaintiff gave up her well-paying job to move to Jackson. Although Mr. Miller had been operating the business for some time, it was close to failing at the time of their marriage. However, by 1974, the time of Mr. Miller’s death, the business was prosperous.
Although plaintiff did not make any capital contributions to the partnership, she held a management position in the nursery business and did physical labor. She kept all the books (although an accountant did the taxes) and hired and fired employees. She received periodic payments (usually monthly) of $50 or $100. Whenever plaintiff received a check, Mr. Miller also received one for the same amount. Money for household expenses was also taken out of the business account.
Along with the nursery business, Mr. Miller was engaged in subdividing some of his land around the nursery. All the lots sold were owned by him prior to his marriage. The sold lots were conveyed by a deed from the Millers as husband and wife. Shortly before his death, Mr. Miller conveyed their homestead from himself to the couple as tenants by the entireties. No land was ever conveyed to the partnership. Both parties devoted time and effort in the operation of both businesses.
In 1960, a business registration certificate was filed for the nursery, which indicated that the business was operated as a partnership. A similar certificate was filed with respect to the subdividing project in 1966, but this expired in 1971. Checking accounts, vehicles, and other equipment were bought and held under the assumed business name. On the other hand, annual tax forms and schedules listed the business as a sole proprietorship and plaintiffs occupation as a housewife. Michigan business activity forms also indicated a sole proprietorship. In 1968, in applying for a self-employed pension and profit sharing plan, Mr. Miller stated that his business was a sole proprietorship.
It is also stipulated that there was never any formal written partnership agreement. Plaintiff, however, states that Mr. Miller had described the relationship, when he asked her to marry him and at all times since, as that of partners and she was under the impression that they were business partners. Furthermore, she says, Mr. Miller told her that she was "the best partner he ever had”.
On the basis of these facts, the trial court found that the plaintiff had not carried her burden of proof. Since plaintiff is claiming that this finding is clearly erroneous, she does not have to request a new trial in order to raise this issue on appeal, GCR 1963, 517.1, Arnsteen v U S Equipment Co, 52 Mich App 177; 217 NW2d 61 (1974).
The determination of whether a partnership exists is a question of fact and so the clearly erroneous standard of GCR 1963, 517.1 applies. The burden of proof to show a partnership is on the one alleging the partnership, Falkner v Falkner, 24 Mich App 633; 180 NW2d 491 (1970), Fletcher v Fletcher, 197 Mich 68; 163 NW 488 (1917), and the burden is stricter when relatives are the alleged partners, Falkner, supra, Lobato v Paulino, 304 Mich 668; 8 NW2d 873 (1943), Cole v Cole, 289 Mich 202; 286 NW 212 (1939). Also the fact that the alleged partner is deceased further raises the burden of proof, Fletcher, supra.
The Uniform Partnership Act, § 7, MCLA 449.7; MSA 20.7, provides some guidelines for determining the existence of a partnership. In Barnes v Barnes, 355 Mich 458 at 461; 94 NW2d 829 (1959), the Court addressed § 7 and stated:
"At the present time no test is conclusive, though in modern law the factor of the intent of the parties, gauged by the legal effect of their agreement, bulks large. Beecher v Bush, 45 Mich 188 (40 Am Rep 465).”
In Beecher v Bush, supra, at 200, Justice Cooley stated that "except when one allows the public or individual dealers to be deceived by the appearances of partnership when none exists, he is never to be charged as a partner unless by contract and with intent he has formed a relation in which the elements of partnership are to be found”. The elements of a partnership are generally considered to include a voluntary association of two or more people with legal capacity in order to carry on, via co-ownership, a business for profit. Co-ownership of the business requires more than merely joint ownership of the property and is usually evidenced by joint control and the sharing of profits and losses. With the intentions of the party to form a partnership as our polestar we will review the trial court’s finding.
It is not disputed that the parties were involved in a business venture for profit and had the legal capacity to form a partnership. However, the evidence relating to co-ownership does not indicate that a legal partnership was contemplated. Prior to the marriage, Mr. Miller operated the business and owned all the property. Mrs. Miller made no capital contributions except her services. Even though plaintiff worked long and hard hours, this does not establish that the parties had an agreement to form a partnership. This evidence could also be viewed as consistent with an employee-employer relationship or that of a helpful wife who assisted her husband without their intending a legal partnership.
Co-ownership is also indicated by profit sharing. In fact, profit sharing is prima facie evidence of a partnership, Falkner, supra. However, the court did not find an agreement to share profits and we cannot say that this was clearly erroneous. That Mr. and Mrs. Miller each received monthly payments from the nursery checking account does not necessarily establish profit sharing. The payments could also be reasonably viewed as salary or wages. Another possible interpretation would be that Mr. Miller was withdrawing money from his sole proprietorship and was dividing it equally because he felt an obligation to share equally with his wife, as a wife rather than a business partner.
Another indicium of co-ownership is mutual agency and control. That Mrs. Miller kept the books, wrote checks, and hired and fired does not necessarily establish any control other than that which might be given to a trusted employee. However, it is not necessary that this control be exercised as long as it exists. In view of the absence of the exercise of control or mutual agency, evidence of an agreement in respect to the division of control is about the only way to prove mutual agency and control. However, no evidence of an agreement with respect to mutual control was presented.
The intention of the parties to enter into a partnership comprising the above-mentioned elements is the controlling issue in this case. The filing of the business registration papers listing the business as a partnership gives support to plaintiffs claim. As long as the registration was effective, it raised a presumption of a partnership, but this can be overcome by competent evidence, Harrington v Havey, 238 Mich 108; 213 NW 145 (1927). Since the registration certificate filed for the subdivision operation expired in 1971, it does not raise a presumption of a partnership. The trial court found that there was sufficient, competent evidence to rebut the presumption concerning the nursery business.
The other evidence supporting plaintiffs claim is that plaintiff testified that the parties entered into an oral agreement and that Mr. Miller told her "she was the best partner he ever had”. The use of the term partner is one factor to be considered in analyzing whether a partnership exists, Falkner, supra, but it is not controlling. How heavily that factor weighs varies with the circumstances and the circumstances in this case make the use of that term ambiguous. Mrs. Miller seemed to consider the whole marriage as a partnership and Mr. Miller could have meant that she was the best partner in marriage rather than in business. Also, Mrs. Miller is an interested party and the trial judge is not bound to accept as true her testimony and the inferences she draws from it.
The evidence introduced against these claims indicated that the deceased did not intend to form a legal partnership with his wife. First, there is no written agreement and there is only plaintiffs testimony in support of an oral one. The income tax returns and schedules listed the business as a sole proprietorship, listed Mr. Miller’s income as wages and Mrs. Miller’s occupation as a housewife. In 1964, Mr. Miller applied for a self-employee retirement deduction plan as a sole proprietorship. Mr. Miller’s social security forms listed the business as a sole proprietorship. All the capital contributions came from Mr. Miller and the property remained in his name (or his and his wife’s name), and none was transferred to the partnership. Shortly before his death, Mr. Miller deeded his homestead to his wife and himself as tenants by the entirety and this would seem needless if they already owned it as partners. Although none of these facts is conclusive, they are all factors to be weighed in the decision, Moore v DuBard, 318 Mich 578; 29 NW2d 94 (1947) (absence of a written agreement), Falkner, supra (that no capital was invested by the one alleging a partnership, whether the income tax returns listed the business as a partnership, and whether title to the property involved was transferred to the partnership).
After reviewing the entire record, we cannot say that the trial court’s findings that the presumption established by the filing of business registration papers was rebutted by competent evidence and that plaintiff failed to carry her burden of proof were clearly erroneous.
Affirmed. Costs to defendant. | [
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Per Curiam.
This is a personal injury action against the Secretary of State as Director of the Michigan Motor Vehicle Accident Claims Fund and statutory agent of an unidentified motorist. MCLA 257.1101 et seq.; MSA 9.2801 et seq. Plaintiffs’ action was dismissed on defendant’s motion for directed verdict at the close of plaintiffs’ proofs. Plaintiffs appeal as of right.
In Caldwell v Fox, 394 Mich 401, 407; 231 NW2d 46 (1975), the Court stated:
"At the outset we reiterate a well-established principle of law: The jury, not the trial judge, is the trier of fact. Whenever a fact question exists, upon which reasonable persons may differ, the trial judge may not direct a verdict. Conversely, when no fact question exists, the trial judge is justified in directing a verdict. In deciding whether or not to grant a motion for a directed verdict, the trial judge must accord to the non-moving party the benefit of viewing the testimony and all legitimate inferences that may be drawn therefrom in a light most favorable to the non-moving party. If the evidence, when viewed in this manner, establishes a prima facie case, the motion for a directed verdict must be denied. In Detroit & Milwaukee R Co v Van Steinburg, 17 Mich 99, 117 (1868), Chief Justice Thomas M. Cooley said:
" 'In determining this question, we must look at the case as it appears from the plaintiff’s own testimony, unqualified by any which was offered on the part of the defendants, and must concede to him any thing which he could fairly claim upon that evidence. He had a right to ask the jury to believe the case as he presented it; and, however improbable some portions of his testimony may appear to us, we can not say that the jury might not have given it full credence. It is for them, and not for the court to compare and weigh the evidence.’
"This standard was most recently reaffirmed in Dodd v Secretary of State, 390 Mich 606, 612; 213 NW2d 109 (1973), where it was said that the court must 'view the testimony in the light most favorable to the plaintiff and draw the reasonable inferences therefrom which are in his favor’.”
Plaintiffs’ case contained the eyewitness testimony, by way of deposition, of Stephen Merritt who testified that the Plaintiff Peter Dumansky had been run down by an inattentive motorcyclist. This witness had managed to take several photographs showing Peter Dumansky shortly after being hit and purporting to show the offending motorcycle and its two riders. All parties agree that the driver pictured in these photographs is the original defendant in this suit, William Abney.
In order for these plaintiffs to recover from the Accident Claims Fund the tortfeasor must be unidentified. See MCLA 257.1112; MSA 9.2812 and MCLA 257.1117; MSA 9.2817. If it is assumed that William Abney was the tortfeasor then plaintiffs can have no recovery from the Accident Claims Fund since the tortfeasor would not be unidentified. However, Abney testified that he was not the driver of the motorcycle that struck the plaintiff. The pictures were taken subsequent to the collison and witness Merritt was not able to identify Abney as the driver of the offending motorcycle. Therefore, a jury could have found that Abney was not the tortfeasor.
In granting the directed verdict the circuit court stated in part:
"THE COURT: Well, there is one thing that neither of you have touched upon. The act requires that the Unidentified person be negligent. And the negligence be the proximate cause of the accident.
"Now, the Plaintiff’s injuries were approximately caused by something, but there isn’t anything that can be argued to that Jury that was the negligence of anybody on a motorcycle, unless it was Abney, nobody else can testify. You can’t exclude — you can’t take Merritt’s testimony and exclude Abney. * * * I suggest to you that there is nothing at this point for a Jury to decide. The motion is granted.
"If I were to let the matter go to the Jury in its present condition, I would be telling the Jury you have heard a great deal of disjointed material, and I suggest to you that engages in speculation and determine whether or not it would have been Abney who hit Dumansky, or somebody other than Abney hit Dumansky.
"I do not believe in letting Juries speculate. I will not let this one speculate, and it would be pure speculation. I’m sorry.”
Aside from the testimony of witness Merritt there was an absence of evidence from which negligence by a motorist could reasonably be inferred. Merritt’s deposition, however, contains testimony to the effect that he saw a motorcycle driver whom he cannot identify negligently run down the plaintiff; that he, Merritt, then photographed the plaintiff rolling on the ground and then a few seconds later "put the camera down to watch the machine that hit him”. Merritt had no doubt that he then photographed the driver of the offending motorcycle. But he had taken his eyes off of the motorcyclist for a moment when he looked at the man lying in the street. Merritt was able to identify the motorcycle by virtue of its unique composition, but the witness stated that his attention was first directed toward the various unusual items on the motorcycle "[w]hen he parked in the street just after the impact”. From this evidence it would be possible for a jury to conclude that the witness, Merritt, had seen a motorcycle negligently run down the plaintiff, that Merritt momentarily lost sight of that motorcycle and then erroneously fixed his sight on Abney’s motorcycle. In sum, evidence of negligence was presented. An issue of fact then existed as to whether the individual that witness Merritt observed immediately before the accident was Abney or an unidentified motorcyclist, and therefore the trial court erred in directing the verdict.
On remand should plaintiffs offer Sharon Turner’s testimony regarding an unidentified motorcyclist’s statement made shortly after the accident, the trial court should consider whether that testimony is admissible under the excited utterance exception to the hearsay rule. Grassi v Austerberry, 6 Mich App 690; 150 NW2d 529 (1967), Rice v Jackson, 1 Mich App 105; 134 NW2d 366 (1965).
Reversed and remanded. Costs to plaintiffs. | [
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Danhof, C. J.
Defendant was convicted by a jury of armed robbery, MCLA 750.529; MSA 28.797, and sentenced to 15 to 25 years imprisonment. He now appeals by right. The facts are stated within as they relate to the questions raised on appeal.
I
Defendant claims that the trial judge erred reversibly in permitting a police officer to relate in his testimony the description of defendant that he obtained from the victim, relying on People v Hallaway, 389 Mich 265, 275-279; 205 NW2d 451 (1973). The victim, Alonzo Carelock, outlined in his own testimony his description to the police of defendant’s appearance at the time of the robbery, and the police officer’s testimony matched Care-lock’s recollection of the description he gave. Over defense objection, the trial judge admitted the police officer’s testimony "to indicate there is no conflict in what Carelock said on an earlier occasion as compared to what was testified to here in court”, and cautioned the jury that the officer’s testimony was being admitted "only for that purpose, so that the jury can evaluate the credibility of an earlier witness, without at the same time indicating that by recitation by this witness of what a victim told him or is said to have told him, that this indicates its honesty or truthfulness”.
Essential to a complete understanding of our view of this claim of error are certain aspects of the cross-examination of Carelock by defense counsel. After first eliciting from Carelock admissions that he had been discharged from his employment as manager of the store some time after the robbery because of his inability to control cash and inventory shortages, and that he had seen defendant in the store as a customer at least once before the robbery, defense counsel questioned Carelock about an alleged courthouse confrontation between Carelock and two friends of defendant:
"Q. Do you remember somebody directing a question to you as to why you picked Mr. Coles, that you felt that he did this? Do you remember anybody asking you that question?
"A. Did anybody ask me a question?
"Q. Yes.
"A. I remember some fellows coming up to me and talking to me and I said, 'Well, if you know anything, just tell the detective.’ That’s all I said. I didn’t make no statements.
"Q. Did you ever say that the reason you picked Mr. Coles was because the dairy expected it, or because you’d lose your job if you didn’t pick somebody?
"A. No.
"Q. You never said that?
"A. No.
"Q. You’re sure?
"A. Yes.” (Emphasis added.)
The character of this inquiry into the credibility of Carelock’s identification of defendant went beyond a mere probing for prior inconsistent statements, such as occurred in Hallaway, supra, at 276. Defense counsel attempted to establish, first through cross-examination of Carelock, and later by the direct testimony of a defense witness, one A1 Green, that Carelock had fabricated his identification of defendant after the robbery in order to save his job. The implicit claim of recent fabrication raised by the defense thus renders the rule requiring reversal in Hallaway inapplicable to this case:
"Generally, consistent statements of a witness are not admissible as substantive evidence. People v Hallaway, 389 Mich 265, 276; 205 NW2d 451 (1973); Dundas v Lansing, 75 Mich 499, 502; 42 NW 1011; 13 Am St Rep 457; 5 LRA 143 (1889); Brown v People, 17 Mich 429, 435; 97 Am Dec 195 (1868). It has been said, however, that they are often 'allowed a limited admissibility for the purpose of supporting the credibility of a witness, particularly to show that a witness whose testimony has allegedly been inñuenced told the same story before the inñuence was brought to bear.’ McCormick, Evidence (2d ed), § 251, p 604. The authors of this recent revision of McCormick assert that the trend of decision supports the admission of consistent statements; they reason that '[t]he witness can be cross-examined fully. No abuse of prepared statements is evident. The attack upon the witness has opened the door.’ McCormick, Evidence, op cit.
"In People v Hallaway, supra, p 277 it was recently noted: 'Justice Cooley, in Stewart v People, 23 Mich 63 [9 Am Rep 78] (1871), held that a prior consistent statement of a witness may be admitted where a prior inconsistent statement has been put in evidence, and the prior consistent statement is of such character as to be probative upon the issue of whether or not the prior inconsistent statement was in fact made.’
"The conclusion that Hernandez’s credibility and testimony had been challenged by a prior inconsistent statement and that the consistent statement was admissible as tending to rehabilitate his credibility is supported by the record, reason and authority. We are not inclined to reverse a ruling admitting a consistent statement. Stewart v People, supra, p 76.” Brown v Pointer, 390 Mich 346, 351-352; 212 NW2d 201 (1973). (Emphasis added.) (Footnote omitted.)
We conclude that under the circumstances of this case it was not an abuse of discretion for the trial judge to admit evidence of a prior consistent statement by Carelock containing a description of defendant matching that contained in his testimony and offered solely for the purpose of rebutting an implicit defense charge of recent fabrication bearing upon Carelock’s identification of defendant. Carelock’s prior consistent statement tended to show that his description of defendant remained unchanged after he was allegedly subjected to pressure by his employer to identify someone, and thus tended to rehabilitate his credibility after the defense charge of recent fabrication. Under such circumstances, admission of the prior consistent statement did not constitute an abuse of discretion. See Woodrow v Johns, 61 Mich App 255, 262-264; 232 NW2d 688 (1975).
II
Defendant next contends that the trial court erred reversibly in failing, sua sponte, to suppress Carelock’s in-court identification of defendant because Carelock had previously chosen defendant’s photograph from 11 high school yearbook photographs shown to him at a precustodial photographic show-up at which defense counsel was not present, and because the lineup at which Carelock identified defendant was impermissibly suggestive. We find no merit in these claims.
First, because defendant failed to move for suppression of Carelock’s in-court identification and also failed to object to it the question of whether Carelock’s identification testimony was erroneously admitted has not been properly preserved for appellate review. People v Moss, 397 Mich 69; 243 NW2d 254 (1976).
Secondly, we find no factual support for either of defendant’s claims. Defendant was not in custody when the photographic show-up occurred. "It is the fact of custody that requires implementation of the Franklin Anderson rule * * * .” People v [James] Anderson, 391 Mich 419, 422; 216 NW2d 780 (1974). Nor did the officer who conducted the show-up have probable cause to arrest defendant when he showed the photographs to Carelock; instead, he had investigated two worthless leads and was pursuing a third when he showed the yearbook to Carelock. Under these circumstances, it is clear that defendant’s contention that the investigation had "focused” on him, thus entitling him to have counsel present, is entirely without merit. People v Lee, 391 Mich 618, 625; 218 NW2d 655 (1974), People v Wright, 71 Mich App 40, 48; 246 NW2d 422 (1976). In addition, there is nothing in the record to suggest that the yearbook show-up was unfairly conducted, where the yearbook pages in question depicted defendant and 10 other black males of like age. The character of this procedure was sufficiently neutral. People v Belenor, 71 Mich App 10, 13; 246 NW2d 355 (1976).
Similarly, we note that the lineup, at which counsel was present, was conducted three weeks after the crime occurred, time enough to grow or remove facial hair. We find nothing impermissibly suggestive about this lineup, and note, in addition, that the record contains facts more than sufficient to warrant a conclusion that Carelock’s identification of defendant had an independent basis.
These claims of error are without merit.
Ill
A codefendant who had participated in selecting the jury pled guilty to a lesser charge before any testimony was presented. The codefendant was indorsed as a prosecution witness and testified against defendant. Defendant now claims that the trial judge erred reversibly in failing, sua sponte, to discharge the jury. Insofar as we can determine, the question of whether a jury selected with the participation of a codefendant should be discharged sua sponte when that codefendant pleads guilty and appears as a witness for the prosecution is one of first impression in this state.
Two factors weigh heavily in our decision. First, defendant failed to object to the jury’s composition after his codefendant pled guilty. Failure to raise an issue at the trial court level generally precludes appellate review in the absence of manifest injustice. People v Carroll, 396 Mich 408, 415-416; 240 NW2d 722 (1976). Secondly, defendant has shown no prejudice that inured to him as a result of his codefendant’s participation in the jury selection, nor any facts establishing an inference of prejudice. To the contrary, defendant fully participated in the jury selection, and fails now even to allege that he would have retained any of the jurors challenged by his codefendant. When a defendant argues that he has been denied an impartial jury because of an improper contact with a juror, reversal is not warranted unless prejudice, or facts clearly establishing an inference of prejudice are shown. People v Schram, 378 Mich 145, 160; 142 NW2d 662 (1966). On this record, we can only conclude that defendant’s claim of error is too speculative to warrant reversal.
Similarly, defendant’s claim that the trial judge should have sua sponte severed his trial from that of his codefendant is meritless. Since, as a result of his codefendant’s guilty plea, defendant was tried separately, there can be no claim of inconsistent defenses, or of impermissibly pitting one defendant against another. Severance is a matter resting in the trial judge’s discretion, and to be entitled to reversal of his conviction defendant must show prejudice resulting from the joinder. Even if defendant and his codefendant, who participated in the same crime, had been tried separately, the same issues would have been decided upon submission of the same evidence. The trial court committed no abuse of discretion in failing to sever the trials. People v Carroll, supra, at 414, People v Schram, supra, at 156-157, see MCLA 768.5; MSA 28.1028.
Although defendant’s other assignments of error are so clearly meritless as not to warrant discussion, we must address a question not briefed by the parties, but raised sua sponte by Judge T. M. Burns in his dissent, because it is one of significance to the Michigan trial bench and bar.
Judge Burns correctly states the applicable rule: "When a codefendant changes his plea after participating in the selection of a jury and later testifies before that same jury * * * [it is necessary for] the trial court to instruct the jury that the plea of the codefendant is not to be considered in determining the guilt of the remaining defendant or defendants if a request is made”. (Emphasis added.) See Hudson v North Carolina, 363 US 697; 80 S Ct 1314; 4 L Ed 2d 1500 (1960). Defendant in this case requested no such instruction. Although the decision in Hudson, supra, turned ultimately on a denial of due process flowing from a denial of assistance of counsel that placed defendant in a situation "beyond a layman’s ken” when his co-defendants pled guilty in the jury’s presence, Hud son, supra, at 704; 80 S Ct at 1318; 4 L Ed 2d at 1505, in subsequent cases involving circumstances having a potential for prejudice as great as in the present case the Federal courts have refused to premise reversal upon the trial judge’s failure to give the appropriate instruction sua sponte. In Bearden v United States, 403 F2d 782 (CA 5, 1968), cert den, 393 US 1111; 89 S Ct 920; 21 L Ed 2d 808 (1969), defendant was indicted and tried with his son, who pled guilty in the jury’s presence after the trial commenced, admitting participation in the kidnapping, interstate transportation of a stolen airplane, and obstruction of commerce of which the jury thereafter convicted the defendant. The court conceded that the combination of the jury’s observation of the son’s plea and the failure to give a cautionary instruction "might have” constituted plain error but for defendant’s failure to object or move for mistrial, id. 786 (emphasis in original), but concluded that the failure to give the instruction was harmless error. In a more recent case, United States v Beasley, 519 F2d 233 (CA 5, 1975), vacated on other grounds, 425 US 956; 96 S Ct 1736; 48 L Ed 2d 201 (1976), remanded on other grounds, 535 F2d 293 (CA 5, 1976), defendant was the only one of four defendants remaining at the end of the trial as a result of guilty pleas by the other three during the course of the trial as evidence against them mounted. Noting that the "possibilities of prejudice are clearly present,” the Court concluded:
"The thorough efforts of appellate counsel aided by calm reflection and hindsight, while demonstrating the propriety of a cautionary instruction, cannot supply the lack of a timely request for it. If such a request had been made it would have been reversible error to refuse to give it. However, we may reverse for the trial judge’s failure to instruct sua sponte only upon a finding of plain error. * * * In this case, Beasley’s counsel may have opted not to request such an instruction as a matter of trial tactics, feeling that to emphasize the admitted guilt of those others named in the indictment would have been even more prejudicial.” Beasley, supra. at 240. (Emphasis added.)
Our learned brother would premise reversal in this case upon an inability to say that the trial judge’s failure to give the unrequested instruction did not result in a manifest injustice. With this conclusion we cannot agree. In addition to the cautionary instruction given by the trial judge already noted, the trial judge also instructed the jury that:
"With respect to testimony of an accomplice or an alleged accomplice, the testimony of such an alleged accomplice must be carefully scrutinized to ascertain to what extent it is corroborated by other testimony or other witnesses or circumstances. And that it will depend for its weight to what extent you believe it has been corroborated. It should be received by you with caution and care, because the interest of that witness may be such as to affect his testimony, and it may have some interest in the outcome of the trial and any desire that he may have to color his testimony.”
The facts that the codefendant had pled guilty to a reduced charge of attempted armed robbery, and that he had done so under a plea agreement requiring him to testify against defendant, were revealed by the prosecutor on direct examination and thoroughly explored by defense counsel on cross-examination. In view of the full disclosure to the jury of all of the circumstances affecting the codefendant’s testimony and the cautionary instructions given by the Jrial judge, we conclude that no manifest injustice is apparent from the record.
In addition, we think it improvident for this Court, in effect, to impose upon trial judges a duty to instruct sua sponte on the effect of a codefendant’s guilty plea whenever the potential for injustice is as attenuated as it is in this case. In view of the factors noted above militating against a finding of manifest injustice, the rule advanced by the dissent would be tantamount to a requirement that the instruction be given in every case, sua sponte.
In addition to the minor hardship imposed upon trial judges by such a rule, the important right to select and conduct one’s own defense foreseeably would be infringed thereby. The Federal rule is preferable because it puts the onus — as well as the choice — of requesting the cautionary instruction on defendant and his counsel. Our adversary system functions on the basic assumption that the parties most interested in the outcome will point out, by their motions, objections, and arguments, the correct ruling for the court. It is no remedy, but paternalism, to arrogate to the court the defense counsel’s responsibility and right to request —or not request — a cautionary instruction, particularly when defense counsel could reasonably conclude, as a matter of trial tactics in a given case, that such an instruction is more prejudicial than no instruction at all.
Finally, we note that this is an issue neither raised nor briefed by the parties, and hence decided without benefit of adversary presentation. We are thus not so well equipped as the Court in Beasley, supra, at 240, which rejected defendant’s claim of error, after "thorough” presentation by the parties, because of the lack of timely defense request for the instruction. In Bearden, supra, at 787, the Court quoted with approval from Johnson v United States, 318 US 189, 202; 63 S Ct 549, 555; 87 L Ed 704 (1943) (Frankfurter, J.):
"In reviewing criminal cases it is particularly impor tant for appellate courts to re-live the whole trial imaginatively and not to extract from episodes in isolation abstract questions of evidence and procedure. To turn a criminal appeal into a quest for error no more promotes the ends of justice than to acquiesce in low standards of criminal prosecution.”
We do not acquiesce; neither do we find error.
The conviction is affirmed.
A. E. Keyes, J., concurred
If such it is; Justice Brennan was joined in his opinion by only one of the other four justices who participated in the Hallaway decision. Two other justices concurred with Justice Williams’ separate opinion, which, although it approved the result, is silent on the issue of admission of prior consistent statements.
Indeed, under the Proposed Michigan Rules of Evidence, 801(d)(1)(B) Carelock’s prior description, which was "consistent with his testimony and [was] offered to rebut an express or implied charge against him of recent fabrication or improper influence or motive,” would not be classed as hearsay, since Carelock testified at trial and was subject to cross-examination.
Our holding makes it unnecessary to rest our decision solely on the fact that admission of the description, as related by the officer, constituted harmless error because the same facts had been shown by Carelock’s testimony. See, People v King, 58 Mich App 390, 395; 228 NW2d 391 (1975), People v Vargas, 50 Mich App 738, 741-742; 213 NW2d 848 (1973), lv den, 392 Mich 815 (1974), People v Harrison, 49 Mich App 546; 212 NW2d 278 (1973), lv den, 392 Mich 779 (1974).
Carelock observed defendant at close range for at least a minute, watched from the back of the brightly lit store for approximately ten minutes as defendant operated the cash register while his confederates waited on customers, and, further, had seen defendant in the store as a customer on at least one prior occasion.
The trial court did instruct the jury as follows, however: "As you note, other defendants are named. Their innocence or guilt as such is not for you to decide. Their alleged actions might be, but only as it relates to alleged misconduct on the part of the defendant in this case; and therefore, we ask you to consider the action of other parties as it may relate to Mr. Coles, but not decide innocence or guilt of any other persons other than Coles.” In United States v Beasley, 519 F2d 233, 241 (CA 5, 1975), vacated on other grounds, 425 US 956; 96 S Ct 1736; 48 L Ed 2d 201 (1976), remanded on other grounds, 535 F2d 293 (CA 5, 1976), the Court considered it significant that the trial judge had given an instruction quite similar to the one given by the trial judge in this case in concluding that reversal was not warranted. In Osborne v United States, 371 F2d 913, 924 (CA 9, 1967), cert den, 387 US 946; 87 S Ct 2082; 18 L Ed 2d 1335 (1967), the Court held that instructions comparable to the one above quoted, to the effect that "appellant stood alone as a defendant, and that his acts only were to be judged,” were sufficient, particularly since defendant had proffered no instruction of his own.
Our brother considers it irrelevant that in this case the codefendant’s plea was taken outside the presence of the jury, since he testified before the jury. Although we will concede that each situation (guilty plea in the presence of the jury not followed by testimony or guilty plea outside the jury’s presence followed by testimony against defendant before the jury) carries great potential for prejudice, we cannot agree that the jury’s absence during the plea is irrelevant. Among the purposes of GCR 1963, 785.7 are to insure that the plea is knowing, voluntary and accurate, to impress upon the defendant the gravity of the step he takes when he waives the constitutional rights surrounding trial, and to establish a factual basis for the plea. We are not so certain that a jury would not be more profoundly affected by observing a solemn plea proceeding than by mere testimony by a guilty-pleading codefendant who is subjected to cross-examination to bring out his bias and interest, as in this case. The theoretical distinction between the two situations has, in our opinion, at least marginal relevance.
See fn 5, supra.
In fact, a rule requiring the instruction to be given sua sponte would at least be certain of application, although equally unacceptable. Under the "manifest injustice” rule proposed by the dissent, a trial judge must, without request, take it upon himself not only to give the instruction, but also to give it only when manifest injustice would otherwise result. Thus a cautionary instruction would be required not only if defense counsel requests it, but also, absent defense request, if manifest injustice would, in the trial judge’s opinion, result if the instruction were not given. Conceivably, under this rule, the trial judge would be required to give the instruction even over defense objection and without request if, according to the standards suggested by the facts of this case, the trial judge concluded that manifest injustice would otherwise occur.
The practical problems of application of such a rule, such as the unavailability of a transcript for the trial judge to consult in making his determination of manifest injustice, are complemented by the anomalous result that might flow from giving such an instruction over defense objection. It is not difficult to conceive of an appeal by defense counsel who had elected, as a matter of trial tactics, to avoid emphasizing the codefendant’s guilty plea by not requesting a cautionary instruction regarding it, in which it could be forcefully argued that the defendant had actually been prejudiced by such an instruction. Indeed, United States v Aronson, 319 F2d 48 (CA 2, 1963), cited by the dissent, involved a claim that the trial judge’s revelation of a codefendant’s guilty plea, even though coupled with a proper cautionary instruction, had prejudiced the defendant. | [
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Bashara, J.
Defendant appeals from a jury verdict awarding damages to plaintiff. Plaintiff claimed that his termination from defendant’s employ was wrongful and in breach of the employment contract.
At trial, plaintiff testified that at the time he was hired a person in defendant’s personnel department stated that plaintiff would remain employed until retirement at age 65, unless discharged for cause. Numerous exhibits were placed in evidence, two of which were defendant’s employee’s guidelines manual and a supervisor’s manual. Plaintiff claimed that the provisions of those manuals constituted part of the terms of his employment contract. The contract, except for the manuals, was entirely oral.
Plaintiffs theory of the case is rather nebulous as it relates to the term of the employment contract. Frequently plaintiff referred to an employment for life, while at one point in his testimony he stated that he was to be employed until he reached age 65. In response, defendant asserted that under Michigan law, employment for life, absent the existence of special consideration, is an employment at will, terminable at any time with or without cause.
At the conclusion of plaintiff’s case in chief the defendant moved for a directed verdict. The trial judge requested that the defendant first present its case, whereupon an opportunity would be given to make the motion with the same effect as if made at the conclusion of plaintiff’s proofs. Defense counsel acquiesced, made the motion for directed verdict subsequent to the jury’s retiring for deliberations, and the motion was denied.
The motion for directed verdict raised the statute of frauds as a defense. The trial judge stated that in his discretion the defense was not properly raised and not available to the defendant. Defense counsel stated that he did not raise the statute as a defense because the claim that the employment was for a specified term was not raised until plaintiff gave testimony at trial.
It is defendant’s contention that the policy man ual provisions did not constitute legally enforceable contract terms. Further, defendant claims that plaintiffs allegation as to permanent employment, under Michigan law, creates an employment at will, terminable at any time with or without cause. Therefore, defendant, as a matter of law, has no liability to plaintiff based upon breach of contract.
Alternatively, defendant contends that if plaintiff sought to establish an employment for a specified term exceeding one year, the statute of frauds precludes plaintiffs recovery. As a corollary, defendant claims that the denial of its motion for directed verdict was erroneous.
We must determine whether the distribution of policy and procedure manuals by an employer to an employee at the inception of the employment relationship can constitute terms which are contractually binding.
As with contracts generally, a contract of employment must be the result of a voluntary act, importing the mutual intent of the parties to be bound by its terms and provisions. See McDonald v Boeing, 43 Mich 394; 5 NW 439 (1880). Where, as in this case, there is no written evidence of mutual intention, the formation of the contract and its terms are necessarily a question to be resolved by the trier of fact.
We cannot say, as a matter of law, that the trier of fact could not find that the policy manual provisions were made part of the employment contract. There is no claim by the defendant that the jury’s finding on this issue of fact was contrary to the great weight of the evidence. Consequently, it must remain undisturbed.
However, only a clear preponderance of the evidence will sustain a finding of mutual intent to incorporate the provisions of an employer’s policy manual into an employment contract. Such manuals often describe the business purpose and scope of the enterprise’s product line or services so as to acquaint the new employee with the employer. Those aspects of the business, as well as many operating policies deployed in the management of an enterprise, require flexibility of amendment or discontinuation if management is to have the ability to cope with rapid changes in the economic environment. This Court is loath to destroy that essential flexibility by sustaining a finding of vested employee rights in such manuals, absent supporting evidence that such was the mutual intent of the parties.
We must also determine whether, as a matter of law, an employee can sustain a claim for damages from wrongful discharge where the contract of employment is at will. It is our conclusion that he cannot, absent some claim of special consideration passing from the employee to the employer or that the discharge contravenes some settled public policy.
The principle is well established in Michigan that a contract for permanent employment or employment for life is a contract for an indefinite period and terminable at the will of either party. Adolph v Cookware Company of America, 283 Mich 561; 278 NW 687 (1938), Lynas v Maxwell Farms, 279 Mich 684; 273 NW 315 (1937). An employee under such a contract may be terminated with or without cause, the decision being solely within the determination of the employer. Percival v General Motors Corp, 539 F2d 1126 (CA 8, 1976), applying Michigan law, McLaughlin v Ford Motor Co, 269 F2d 120 (CA 6, 1959).
Even if the jury found that the provisions of defendant’s policy manuals were part of the employment contract, the judgment could not be sustained if the contract was terminable at will. This perforce follows from the mutual ability of the employer and employee to end the contract at any time, i.e., the operative force of the contract terms ceases when the continuation of the contract is terminated. Therefore, a contract of indefinite duration cannot be made other than terminable at will by a provision that states that an employee will not be discharged except for cause.
Thus, if plaintiff’s recovery is to be sustained, it must be premised upon a jury finding that the oral contract was for a specified term. Any other conclusion would lead to the legally incongruous result that a contract terminable without cause is actionable for damages if the jury finds no cause for an employee’s discharge. Further, this Court has held that even an arbitrary and capricious discharge is not actionable under a contract terminable at will. Hernden v Consumers Power Co, 72 Mich App 349; 249 NW2d 419 (1976).
Whether the parties intended that an employment contract be made for a specified term is a question of fact. Paxson v Cass County Road Commission, 325 Mich 276; 38 NW2d 315 (1949). Here, that question was apparently resolved by the jury in plaintiff’s favor. It, therefore, becomes necessary for us to determine whether defendant properly raised the defense of the statute of frauds, since an employment contract for a term exceeding one year comes within the statute. Ambrose v Detroit Edison Co, 367 Mich 334; 116 NW2d 726 (1962), Commercial Factors Corp v Zephyr Awning Corp, 353 Mich 251; 91 NW2d 511 (1958).
We start with the basic principle that the statute of frauds is an affirmative defense, which must be specifically pleaded. 1963 GCR 111.7, Trisch v Fairman, 334 Mich 432; 54 NW2d 621 (1952). Although defendant did not raise the statute as an affirmative defense in his pleading, our inquiry does not end there. Two aspects of this case lead us to conclude that the defense was properly raised, notwithstanding the apparent omission.
In Downing v Underwood, 216 Mich 401; 185 NW 777 (1921), the Supreme Court, in deciding that the statute of frauds defense was not properly raised, stated:
"The plea was the general issue; there was no notice under it of the defense of the statute of frauds, nor was there any motion for a directed verdict on the ground that the contract claimed by plaintiff to have been made was void under the statute of frauds, nor was there any objection to testimony on the ground of the statute of frauds, nor was the statute of frauds mentioned in any request preferred by defendant. Under these circumstances the question is not before us.” Id. at 403; 185 NW 778. (Emphasis added.)
Here, at the conclusion of plaintiffs case, the defendant moved for a directed verdict. At the behest of the trial judge, defendant went forward with its proofs in reliance on the trial judge’s statement that it could make the motion at the conclusion of its case with the same effect as if made when the plaintiff rested. However, when the motion was made, the trial court rejected the statute of frauds defense as not properly raised.
An additional aspect of this case warrants our holding that the statute of frauds was available to defendant. Apparently until plaintiffs testimony was given on direct examination, no specific term of employment was claimed. In his testimony plaintiff asserted the claim that the contract was for employment until he attained the age of 65. Compounding the confusion, plaintiff stated in his rebuttal argument to the jury that he did not claim the contract term was specific. Nevertheless, the issue of contract term was submitted to the jury.
Under the circumstances, the confusion underlying plaintiffs contract claim could have misled defendant, resulting in the omission of the defense from its pleading. The statute of frauds is not a defense to an ordinary employment contract terminable at the will of either party. Thus, if plaintiffs claim was predicated upon such a contract, no reason existed to raise the statute as an affirmative defense.
The committee comment to GCR 1963, 13, states that an objective in drafting the court rules was to "de-emphasize procedural niceties so that eases can more readily be disposed of on their merits”, and that application of the rules "should not become a fetish to the extent that justice in an individual case is not done”. See 1 Honigman & Hawkins, Michigan Court Rules Annotated, Rule 15. Further, the concluding clause following the nonexclusive catalog of affirmative defenses in GCR 1963, 111.7, states, "and any ground of defense which, if not raised in the pleading, would be likely to take the adverse party by surprise”. The apparent intent of the rules is to avoid prejudicing the substantial rights of a claimant by precluding a party from raising a defense at a point in the proceedings where the claimant is unable to prepare a rebuttal.
From the record, it is apparent that plaintiff had knowledge during the presentation of his case in chief that the defendant raised the statute of frauds as a defense. This was asserted by defendant at the commencement of the third day of trial, in conjunction with a request to present witnesses not listed on the pretrial summary. The only objection proffered by plaintiff’s counsel was to the admission of the witnesses’ testimony.
We conclude on the basis of the circumstances presented, that the statute of frauds defense was available to the defendant. Accordingly, it was error for the trial judge to deny defendant’s requested jury instruction on that defense.
We reject plaintiff’s contention that partial performance would remove the contract from the statute. Nothing in the performance of plaintiff’s function with defendant would be objectively referable to establishing the existence of a contract for a specific term.
In view of our holding regarding employment contracts terminable at will and the availability of the statute of frauds defense, we further conclude that the defendant’s motion for directed verdict should have been granted. Plaintiff could not recover, as a matter of law, on either theory underlying his claim. No liability would result from plaintiff’s discharge under a contract at will and the statute of frauds precludes enforcement of a contract, the performance of which, by its terms, is not to be completed within one year. Thus, remanding the case for retrial because of the erroneous omission of an instruction is unwarranted.
Accordingly, we reverse the judgment of the trial court and remand with instructions to enter a judgment for defendant.
Reversed. Costs to defendant.
The applicable section of the statute is as follows:
"In the following cases specified in this section, every agreement, contract and promise shall be void, unless such agreement, contract or promise, or some note or memorandum thereof be in writing and signed by the party to be charged therewith, or by some person by him thereunto lawfully authorized, that is to say:
“1. Every agreement that, by its terms, is not to be performed in 1 year from the making thereof * * * ”, MCLA 566.132; MSA 26.922.
The special consideration referred to must be something other than the employee’s promise to render the services contemplated by the contract. See Adolph v Cookware Co of America, 283 Mich 561; 278 NW 687 (1938).
See, e.g., Sventko v Kroger Co, 69 Mich App 644; 245 NW2d 151 (1976).
The following colloquy, occurred:
"THE COURT: Mr. Page?
"MR. PAGE [defense counsel]: Your Honor, at this time, we intend to move for directed verdict.
"THE COURT: Why don’t we go ahead with your proofs and you’ll be afforded the opportunity to formally make your motion at some later time, as if it had been made at the exact — completion of the Plaintiffs proofs, is that satisfactory?
"MR. PAGE: Yes, sir. Thank you, Your Honor.” | [
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Danhof, C. J.
On July 8, 1976, plaintiff brought suit in circuit court to recover for alleged violations of the Michigan Minimum Wage Law, MCLA 408.381 et seq.; MSA 17.255(1) et seq. Plaintiff contended that although defendant’s nominal wage rate met the statutory requirements, the actual wages received by defendant’s employees were insufficient because of illegally excessive deductions made to cover the cost of meals provided by defendant to its employees.
In an opinion dated October 7, 1976, and an order dated November 17, 1976, the circuit court granted summary judgment in favor of defendant. In its opinion the circuit court stated that the plaintiff had an adequate administrative remedy which must be exhausted before suit could be brought in circuit court. In its order the circuit court stated that the summary judgment was being granted pursuant to GCR 1963, 117.2(1), failure to state a claim upon which relief can be granted. From this order plaintiff appeals as of right.
Plaintiff argues that the relevant statutory language provides an employee the options of either bringing an action in circuit court or filing a complaint with the Department of Labor, or both. We agree. MCLA 408.393; MSA 17.255(13) reads:
"If any employer pays any employee a lesser amount than the minimum wage provided in this act, the employee, at any time within 3 years, may (a) bring a civil action for the recovery of the difference between the amount paid and the minimum wage provided in this act and an equal additional amount as liquidated damages together with costs and such reasonable attorney’s fees as may be allowed by the court, and/or (b) file a claim with the commissioner who shall investigate the claim. If the commissioner determines there is reasonable cause to believe that the employer has vio lated the provisions of this act and the commissioner is subsequently unable to obtain voluntary compliance by the employer within a reasonable period of time, the commissioner shall bring a civil action under the procedures and remedies as provided in clause (a). No contract or agreement between the employer and the employee or any acceptance of a lesser wage by the employee shall be a bar to the action.”
In Michigan Public Service Co v Cheboygan, 324 Mich 309, 341; 37 NW2d 116 (1949), the Court considered albeit in a different context the meaning of the phrase "and/or”. The Court stated in part:
"At the outset we should make it plain that the use of the phrase 'and/or’ is the subject of frequent abuse and should be avoided.
" 'And’ is a conjunctive, used to denote a joinder, a union. 'Or’ is the opposite, a disjunctive, used to indicate a disunion, a separation, an alternative. There are occasions where intent may properly be expressed by 'and/or,’ indicating 'both, or either.’ ”
As we read the relevant section of the Minimum Wage Law, the phrase "and/or”, as used therein, properly expresses the intent of indicating both or either. This is the plain meaning of the words as used. The Legislature has given the employee the options of pursuing either one or both of two methods of redress. Consequently, no requirement of exhaustion of administrative remedies as a prerequisite to bringing suit in circuit court exists. The Legislature has obviated such a requirement by the plain language of this statute. See Dussia v Monroe County Employees Retirement System, 386 Mich 244; 191 NW2d 307 (1971).
Since there exists no prerequisite of exhaustion of administrative remedies in this case, it was error for the circuit court to grant summary judgment on that basis.
Defendant asserts' that plaintiff has admitted payment of the minimum wage, that plaintiff only claims that the deductions are excessive, that therefore plaintiff does not state a cause of action under subdivision (a) of § 13 of the Minimum Wage Law because the act only applies "[i]f any employer pays any employee a lesser amount than the minimum wage provided in this act”, and that therefore summary judgment was proper. We disagree. Plaintiffs complaint reads in part:
"The deduction [sic] which have been made from the wages paid to plaintiff and to members of the class were not based on the meals provided and the number of hours worked and exceeded the maximum perissible [sic] deductions under Rule 408.702, in violation of the Michigan Minimum Wage Law.”
Plaintiff contends that defendant set a wage rate which complied with the act but through impermissibly excessive deductions, the actual payment to plaintiff was a lesser amount than the minimum wage. This states a cause of action under the statute. To hold otherwise would be to allow easy avoidance of the provisions of subdivision (a) of § 13 of the act. We do not believe that the Legislature intended such a result.
Defendant also contends that plaintiff was required to petition for a determination of the proper meal deductions pursuant to MCLA 408.387; MSA 17.255(7) before plaintiff could assert that the deductions made from employee wages were excessive. Defendant contends that "[t]he stature [sic] clearly provides for a case by case determination of what are reasonable deductions”. We find this argument unpersuasive. The wage deviation board has promulgated 1970-1971 AACS, R 408.702 covering allowable meal deductions. It is this determination upon which plaintiff relies to establish the proper amount deductible. It is defendant who has the burden of petitioning for a redetermination if defendant is dissatisfied with the existing rule.
Defendant also contends that the provisions of the Michigan Minimum Wage Law simply do not apply to defendant because MCLA 408.394; MSA 17.255(14) exempts agricultural employers who contract for harvesting of their crops by piecework and that "[t]he Defendant is undisputably an agricultural employer who traditionally contracts for the harvesting of the mushrooms on a piece work basis”. The act granted an exception for certain agricultural employers until an equivalent piecework rate could be determined. Such determinations were to be made no later than May 1, 1967. The fact that no piecework equivalent scale for mushroom harvesting was determined was an implicit finding that the defendant was not an exempt agricultural employer. If the defendant disputes this, then it is the defendant not the plaintiff who has the burden of petitioning the Department of Labor "to establish the proper piecework rate”.
We do not intend that anything in this opinion be taken as a comment on the question of whether or not defendant was paying its employees less than minimum wage. We merely hold that summary judgment was not properly granted on any of the grounds advanced by the defendant.
Reversed and remanded. Costs to plaintiff. | [
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Beasley, J.
In a nonjury trial in the Traffic and Ordinance Division of the Detroit Recorder’s Court, defendant was convicted of failing to stop and identify himself at the scene of a personal injury automobile accident in which he was involved. Defendant was sentenced to serve one year in the Detroit House of Correction. He appeals as of right.
Defendant claims the actions, comments and conduct of the trial judge, taken together as a whole, indicate bias and deprived defendant of a fair and impartial trial.
Review of the record as a whole indicates that the trial judge chose to ask questions of witnesses far more often than seemed necessary. Also, on several occasions, he accompanied his rulings with argumentative statements that invited argumentative responses by counsel. There were interruptions by the trial judge of questioning by the attorneys and of testimony of witnesses that would have been better omitted. A judge should learn to discipline the urge to inject himself into the advocates’ roles and to let trials take their course; the umpire should not try to participate in the contest. However, this record does not indicate that the trial judge was biased; in fact, it is a fair conclusion that he believed he was helping both sides. The conduct of the trial judge did not deny defendant a fair trial, and did not rise to the level that would require reversal.
Furthermore, no objection was made at trial to the alleged errors now asserted. The general rule is that failure to make timely objection precludes appellate review.
Defendant also complains that the trial judge found defendant guilty of a different charge than that made by the prosecutor. Defendant says the trial judge erroneously believed intent was a necessary element of the offense. In his findings, the trial judge found defendant intentionally inflicted injury upon the complainant with his car. While intent to injure is not a necessary element of the offense charged against defendant, if the trial judge believed otherwise, the effect was to impose a greater burden of proof on the prosecution than the law required. Consequently, there was neither harm nor prejudice to defendant, even if the facts were as defendant asserts.
Defendant’s final claim is that sentence should not have been imposed prior to the completion of a pre-sentence report. We agree.
Michigan law, by statute, requires that a written report be prepared by the probation officer prior to the sentencing of any person charged with a felony. At the time of defendant’s offense, the statute then in effect did not specifically state that the offense was a felony. However, the maximum possible penalty was five years in the state prison. Since this maximum penalty would cause the offense to be classified as a felony, a pre-sentence report was required.
Therefore, defendant’s conviction is affirmed, and we remand for resentencing in accordance with our opinion. We retain no jurisdiction.
MCLA 257.617; MSA 9.2317.
MCLA 771.14; MSA 28.1144.
1958 PA 35.
MCLA 761.1(g); MSA 28.843(g). | [
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On Rehearing
Per Curiam.
This case has been before this Court on two prior occasions. Originally, this Court reversed a lower court finding of intentional trespass, 68 Mich App 342; 242 NW2d 576 (1976), because plaintiffs had not sustained their burden of proof.
That decision was reversed by the Supreme Court, 399 Mich 653; 252 NW2d 766 (1977), reh den, 400 Mich 1029, remanding the case to us for consideration of the remaining issues raised by defendants on appeal.
Confining ourselves to the issue of damages, we held that the trial court did not err by instructing the jury that it could consider replacement costs in determining damages. 77 Mich App 681; 259 NW2d 357 (1977).
Defendants-appellants moved for rehearing, arguing that this Court’s opinion on remand misread the cases cited as authority for its conclusion. We are constrained to agree.
The cases cited in the remand opinion for the proposition that replacement and restoration costs are proper elements for the jury to consider in assessing damages involved special circumstances not present in this case.
In Kelly v Fine, 354 Mich 384; 92 NW2d 511 (1958), the owner of an occupied residential lot recovered costs to replace topsoil, which was intended to complete landscaping on the property.
In Schankin v Buskirk, 354 Mich 490; 93 NW2d 293 (1958), the owners of a residential lot recovered the value of ornamental shade trees, which affected the aesthetic value of the property. In Schankin, however, the Supreme Court made the following statement about the measure of damages in trespass cases:
"Generally speaking, damages in trespass to land are measured by the difference between the value of the land before the harm and the value after the harm, but there is no fixed, inflexible rule for determining, with mathematical certainty, what sum shall compensate for the invasion of the interests of the owner. Whatever approach is most appropriate to compensate him for his loss in the particular case should be adopted.
"We are not, with respect to ornamental or shade trees, restricted solely to a value-before and a value-after test for injury to the freehold. These are proper elements for the jury’s consideration but it may consider, as well, the value of the trees themselves to the contemplated or existing uses of the land, including the cost of replacement or restoration, in those cases where, as here, the property destroyed has a unique value of its own.” 354 Mich at 494, 496.
In this case there is no allegation that either the fill removed from the plaintiffs land or the trees destroyed in the earth moving process had any unique value of their own or any special aesthetic value to the owners. The proper measure of damages, therefore, is the difference between the value of the land before the trespass and the value of land after the trespass. See Governale v City of Owosso, 59 Mich App 756; 229 NW2d 918 (1975).
This case is reversed, therefore, and remanded to the trial court for a new trial on the issue of damages. The trial court shall instruct on diminution of value as the measure of damages, taking into consideration the above-quoted language of Schankin v Buskirk, supra. Additionally, because of the length of time already expended in the adjudication of this cause, the trial court is directed to hear this case as soon as is expeditiously possible. We do not retain jurisdiction.
Reversed and remanded.
It should be noted that the commercial value of the timber, minerals or other materials removed in a trespass to land may be considered in determining the diminution in the value of the freehold. Gates v Comstock, 113 Mich 127; 71 NW 515 (1897). If the commercial value of what was removed by the trespass exceeds the diminution in the value of the freehold, it would be proper for the jury to award damages in an amount equal to the value of what was removed. See, Bockes v A McAfee & Son Co, 165 Mich 7, 10; 130 NW 313 (1911). | [
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Per Curiam.
Defendant was convicted of knowingly or intentionally possessing heroin, contrary to MCLA 335.341(4)(a); MSA 18.1070(41)(4)(a). He was sentenced to 30 to 48 months imprisonment and appeals as of right.
The evidence showed that on October 24, 1972, the police came to the house where the defendant was located pursuant to information that two suspects, neither of whom was the defendant, could be found there. While positioned outside the premises, one officer observed the defendant throw a gun and green garbage bag from a second story window of the house. The officer opened the garbage bag, observed what appeared to him to be suspected narcotics and alerted the other officers that a man upstairs had just thrown a gun and suspected narcotics from the window. The officer then confiscated the gun and garbage bag.
Another officer, after entering the premises, proceeded to the second floor where he encountered the defendant in a bedroom with a broken window, a pushed out screen and powder on the defendant’s clothing. At that time, the officer observed the defendant drop a bottle to the floor. The officer scraped some of the powder from the floor and placed it along with the plastic bottle into evidence.
On appeal, defendant first claims that the gun was erroneously admitted into evidence over defendant’s trial objection that the evidence was irrelevant, immaterial and prejudicial.
The general rule is that evidence tending to show the commission of other criminal offenses by the defendant is inadmissible on the issue of his guilt or innocence of the offense charged, because whatever probative value such evidence has is outweighed by the disadvantage of diverting the trier of fact from the objective appraisal of the defendant’s guilt or innocence. People v Der-Martzex, 390 Mich 410, 413; 213 NW2d 97 (1973). However, such evidence is admissible under the common law exception to the general rule barring proof of other crimes. In People v Savage, 225 Mich 84, 86; 195 NW 669 (1923), the Court stated:
"It is elementary that the acts, conduct and demeanor of a person charged with crime at the time of, or shortly before or after the offense is claimed to have been committed, may be shown as a part of the res gestae. Proof of such acts is not rendered inadmissible by the fact that they may tend to show the commission of another crime. ” (Emphasis supplied.)
Accord, People v Scott, 61 Mich App 91, 95; 232 NW2d 315 (1975).
With respect to what is part of the res gestae, in People v Kayne, 268 Mich 186, 191-192; 255 NW 758 (1934), the Michigan Supreme Court stated:
" ’Res gestae are the circumstances, facts and declarations which grow out of the main fact, are contemporaneous with it, and serve to illustrate its character.
" 'No inflexible rule has ever been and probably never can be adopted as to what is a part of the res gestae. It must be determined largely in each case by the peculiar facts and circumstances incident thereto; but it may be stated as a fixed rule that, included in the res gestae are the facts which so illustrate and characterize the principal fact as to constitute the whole one transaction, and render the latter necessary to exhibit the former in its proper effect.’ ” (Citations omitted.) (Emphasis supplied.)
Accord, People v Eisenberg, 72 Mich App 106, 118; 249 NW2d 313 (1976).
Here the defendant simultaneously threw the gun and the heroin from the window. Defendant’s actions invoked the police entry into the apartment and the defendant’s arrest. Defendant’s throwing of the gun was part of the police discovery that he was in possession of heroin, and served to illustrate the latter. Accordingly, the throwing of the gun and heroin constituted one transaction and, therefore, the trial court did not err in allowing evidence of the gun on the basis that it was part of the res gestae. People v Gould, 61 Mich App 614; 233 NW2d 109 (1975).
Next, the defendant claims that the trial court reversibly erred by refusing to allow defense counsel to inquire during cross-examination into the officer’s prior testimony concerning the police entry into the premises and whether the apartment door had been forced open.
While the manner of the police entry was probative of the pretrial issue of the propriety of the defendant’s arrest, it had no relevancy to the issue at trial, namely the defendant’s possession of heroin. Thus it was a collateral matter. It is established law in Michigan that the discretion of the trial judge controls the nature and extent of the introduction of collateral matters upon cross-exam ination and will not be reviewed except in cases of clear abuse. People v MacCullough, 281 Mich 15, 24-25; 274 NW 693 (1937), People v Joseph Barbara, Jr., 23 Mich App 540, 548; 179 NW2d 105 (1970), People v Eisenberg, supra, at 119. We find no abuse of discretion in the trial court’s ruling and no improper restriction of defense counsel’s scope of cross-examination. People v Lindsey, 56 Mich App 458, 461; 224 NW2d 273 (1974).
At trial, the forensic chemist was permitted to testify over defendant’s objection as to the chemical make-up of the substance confiscated by the police and the percentage of heroin contained therein. The witness testified that the substance contained a higher percent of heroin than normally found in "street type” heroin. The prejudicial potential of such testimony was that it raised by implication the possibility that the defendant distributed and/or delivered heroin, a criminal offense different from the one with which he was charged. Cf. People v Mumford, 60 Mich App 279; 230 NW2d 395 (1975), People v Gould, supra.
In People v Morris, 69 Mich App 545, 550; 245 NW2d 126 (1976), the Court said:
"Evidence of other crimes is usually excluded because it is irrelevant to the issue of the defendant’s guilt but increases the chances of conviction because it tends to depict the defendant as an habitual criminal. But if the evidence is legally relevant to a material issue, it is admissible if its proper probative value outweighs its improper prejudicial effect.”
The expert testimony explaining the percentage of diluents usually present in street type heroin, the fact that a much lesser percentage of diluents was found in the substance seized from the defendant’s possession, and that such substance would have to be further "cut” to render it street type heroin provided the jury with a lay person’s context for understanding the quantity of heroin the defendant was charged with knowingly possessing. Thus, such testimony was helpful in throwing light upon a material point in issue and was therefore probative and logically relevant. The determination of whether or not the probative value of logically relevant evidence is substantially outweighed by its unfairly prejudicial effect rests within the discretion of the trial judge, and will not be disturbed on appeal absent a clear abuse of discretion. People v Rimson, 63 Mich App 1, 4; 233 NW2d 867 (1975), People v Becker, 300 Mich 562, 565; 2 NW2d 503 (1942). Reviewing the record, we cannot conclude that the probative value of the expert testimony was so minimal and the prejudicial effect so great that the trial court clearly abused its discretion by allowing the testimony.
Finally, the defendant argues that the trial court erred in permitting the prosecutor to impeach the defendant by use of defendant’s prior conviction for attempted possession of marijuana. Use of a defendant’s prior felony conviction for impeachment purposes is within the discretion of the trial court. People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). The trial court must positively indicate its exercise of discretion. People v Cherry, 393 Mich 261; 224 NW2d 286 (1974). This Court has held that in order to meet the Jackson-Cherry requirements a trial judge need not expressly state that he is exercising his discretion, so long as it appears on the record that he is aware that he had discretion to disallow the evidence of prior conviction and that he does in fact exercise it. People v Burse, 62 Mich App 204; 233 NW2d 232 (1975), People v Pleasant, 69 Mich App 322; 244 NW2d 464 (1976). The record shows that the trial court was aware of its discretion, knew the nature and date of the defendant’s prior conviction, and determined that the admission of the conviction would shed light on the defendant’s credibility as a witness. Thus, there was a sufficient showing on the record that the trial court did in fact exercise its discretion.
Subsequent to the defendant’s conviction, a majority of the Supreme Court in People v Sinclair, 387 Mich 91; 194 NW2d 878 (1972), though for different reasons, held that the statute under which defendant was convicted was unconstitutional. See People v Bercheny, 387 Mich 431, 435; 196. NW2d 767 (1972) (T. G. Kavanagh, dissenting). The central holding of Sinclair, supra, was that the inclusion of marijuana within the definition of narcotics contained in MCLA 335.151; MSA 18.1121 is unconstitutional. People v Elwell, 54 Mich App 306; 220 NW2d 770 (1974). Though a majority of the Court could not agree as to why the inclusion was unconstitutional, they agreed that the holding of the Sinclair opinion was binding precedent on the lower courts (People v Waxman, 388 Mich 774; 200 NW2d 322 [1972]), and was to be applied retroactively. Accordingly, the convictions and sentences of all defendants convicted under the statute prior to the Sinclair decision were reversed and vacated, either on appeal or by the trial judges. See People v Doane, 387 Mich 608; 198 NW2d 292 (1972), People v Albert White #1, 387 Mich 774; 196 NW2d 313 (1972), People v Griffin, 39 Mich App 464; 198 NW2d 21 (1972), People v D'Argis, 44 Mich App 186; 205 NW2d 19 (1972), People v Goins, 54 Mich App 456; 221 NW2d 187 (1974), People v Atley, 392 Mich 298; 220 NW2d 465 (1974). Furthermore, on March 7, 1972, the Supreme Court entered a writ of habeas corpus, ordering the release of 128 persons whose names were attached to the petition for the writ,
"for the reason that the restraint of these 128 persons pursuant to convictions for possession or attempted possession of marijuana is unlawful in light of this Court’s decision in People v Sinclair, 387 Mich 91 [194 NW2d 878] (1972), by which a majority of this Court held unconstitutional the possession provisions of MCLA 335.153; MSA 18.1123.” See People v Cannon, 41 Mich App 85, 87; 199 NW2d 657 (1972).
Accordingly, if the present defendant had petitioned to have his conviction and sentence for attempted possession of marijuana vacated, his petition would have no doubt been granted. See People v Cannon, supra, at 88. Defendant made no attempt to have his earlier conviction vacated. The issue raised by this appeal is whether the trial court abused its discretion by allowing the prosecutor to impeach the defendant with a conviction under a law which had been declared unconstitutional prior to the time of impeachment.
Under the facts of this case, we agree that the trial court’s ruling was probably an abuse of discretion. The record indicates that the trial court reached its ruling at least in part on an erroneous interpretation of the Sinclair opinion.
However, we conclude that the erroneous impeachment of the defendant’s testimony was harmless error and therefore does not require reversal. The verdict in this case was obviously based not only on the jury’s belief of the police officers’ testimony and the substantial evidence against the defendant presented therein, but also on the jury’s disbelief of the testimony of the four res gestae witnesses as well as that of the defendant. Therefore, the fact that the defendant’s testimony was erroneously impeached had a minimal impact on the jury verdict of guilt and resulted in little or no prejudice to the defendant.
Further, possession of marijuana and possession of heroin are two very distinct crimes. Cf. People v McCarver, 72 Mich App 311, 318; 249 NW2d 403 (1976). Therefore, we cannot say that the defendant was unfairly prejudiced by the similarity of the conviction used for impeachment purposes and the crime charged. As it does not appear that the trial court’s erroneous admission of the defendant’s prior conviction resulted in a miscarriage of justice, we conclude that defendant’s conviction should be affirmed. | [
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W. F. Hood, J.
Upon leave granted, plaintiffs appeal from a summary judgment in favor of all defendants other than Monsanto Company. Defendants other than Monsanto moved for accelerated judgment in their favor on the ground that they were immune from suit by virtue of MCLA 691.1407; MSA 3.996(107). Plaintiffs elected to treat the motion as one for summary judgment under GCR 117.2(1) and it was summary judgment which the trial court ordered to be entered.
A motion for summary judgment under GCR 1963, 117.2(1) is a proper way to present to the court the issue of governmental immunity. This is made clear by the opinion of Justice Ryan in McCann v Michigan, 398 Mich 65, 74; 247 NW2d 521 (1976). Such motion tests the sufficiency of the complaint in pleading facts in avoidance of immunity.
Plaintiffs alleged in substance that defendants City of Trenton and its named elected and appointed officers maintained and operated a pistol shooting range for the use of the Trenton Police Department, on land leased for the purpose by the city, as lessee, from Monsanto Company. On April 24, 1973, plaintiffs’ decedent, Larry Dionne, aged 10, came upon the premises to play and was there shot and killed by the son of a Trenton city police officer. It is alleged the death of the decedent was proximately caused by negligence of the defendants in maintaining the shooting range at that location, and in failing to use due care in operating and controlling the shooting range.
In avoidance of the doctrine of governmental immunity, plaintiffs allege the existence of the shooting range at its location constituted a nuisance and claim that, as such, it is an exception to the doctrine of governmental immunity. Secondly, plaintiffs claim the operation of the shooting range was a municipal and proprietary function, and not a governmental function.
In support of the contention that a nuisance existed, plaintiffs urge that a shooting range in the area, which plaintiffs allege to be a residential area, was an inherently dangerous condition. Plaintiffs also claim that the existence of the shooting range at that location violated the zoning ordinance of the city, and point out that the statute authorizing zoning ordinances provides in part:
"(U)ses carried on in violation of any provision of local ordinances or regulations made under the authority of this act are hereby declared to be a nuisance per se.” MCLA 125.587; MSA 5.2937.
Plaintiffs’ implied syllogism is defective, however, in its major premise — that nuisances, as such, are exempt from the application of the doctrine of governmental immunity. The nuisance exception to governmental immunity originated and existed as a common law exception to common law immunity. Common law immunity has been abrogated in this jurisdiction. It was abolished with reference to municipal corporations by Williams v Detroit, 364 Mich 231; 111 NW2d 1 (1961), and with reference to the state and its agencies, including school districts, by Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976). The common law nuisance exception cannot survive the demise of the doctrine on which it was en-grafted.
Governmental immunity now exists as defined by statute, and the immunity statute does not list nuisances among its exceptions. Exceptions, of course, may be imposed by the paramount authority of the constitution. When an activity or condition (possibly termed a "nuisance”) occurring on a defendant’s property reaches across the property line to trespass upon or otherwise interfere with the use or enjoyment of another’s property,. the constitutional prohibition against taking private property without just compensation may preclude application of the statutory grant of immunity. Buddy v Department of Natural Resources, 59 Mich App 598; 229 NW2d 865 (1975). Such constitutional conflict does not arise in the case before us, however, because the tragedy for which plaintiffs seek redress did not occur outside the defendants’ premises, but within it.
Plaintiffs’ argument that the allegations of the complaint are sufficient to avoid immunity on a nuisance theory, therefore, must fail.
Plaintiffs also contend the allegations of the complaint are sufficient to avoid immunity on the ground the alleged tortious conduct occurred in the performance of a proprietary function, not a governmental function.
MCLA 691.1407; MSA 3.996(107) provides in part:
"Except as in this act otherwise provided, all governmental agencies shall be immune from tort liability in all cases wherein the government agency is engaged in the exercise or discharge of a governmental function.”
MCLA 691.1413; MSA 3.996(113) prescribes in part that "(t)he immunity of the state shall not apply to actions to recover for bodily injury or property damage arising out of the performance of a proprietary function as herein defined. Proprietary function shall mean any activity which is conducted primarily for the purpose of producing a pecuniary profit for the state, excluding, however, any activity normally supported by taxes or fees”.
Plaintiffs’ complaint alleges no facts from which it may be adduced the shooting range was conducted primarily for a pecuniary profit; therefore, the conclusionary allegation in the complaint that the range was operated as a proprietary function must be disregarded.
Our Supreme Court has informed us, however, that while historically the cases have tended to separate activities of the state and governmental agencies into the two categories of governmental function and proprietary function, this should not control the scope of inquiry in every case, because there are certain activities that fit into neither category. Opinion of Justice Ryan in McCann v Michigan, supra, at 78, 79. The statute grants immunity only in cases wherein the governmental agency is engaged in the exercise or discharge of a governmental function. Therefore, it is not necessary to the avoidance of immunity to establish that the injury arose out of the performance of a proprietary function; it is only necessary to establish it did not arise out of the exercise or discharge of a governmental function.
Thomas v Department of State Highways, 398 Mich 1; 247 NW2d 530 (1976), discusses the meaning of the term "governmental function” as follows:
"The term 'governmental function’ is nowhere defined in the statute. However, this does not mean that we have been left with no guidelines in determining what the Legislature intended by adopting this particular phraseology.
" 'Governmental function’ is a term of art which has been used by the courts of this state to describe those activities of government which due to their public nature should not give rise to liability at common law.” Thomas, supra, at 9.
"The question whether or not a government agency was engaged in a governmental function will not always be easily answered. In many instances governmental activities have never been examined in terms of whether they constitute governmental function and in others the case-law precedent is less than clear. In those cases the courts will be forced to adapt case-law precedent as best they can and will no doubt be called upon to use their own creative genius to resolve the case.” Thomas, supra, at 11.
Under these guidelines, we would have little hesitation in finding that the training of police officers, including the establishment and operation of a shooting range to accomplish that purpose, is of a public nature, for the public good, and the exercise of a governmental function. If the injury had occurred as the result of a shot negligently fired by a policeman or by an instructor in the course of police training, there would be a basis for holding that immunity from liability existed.
The injury in this case did not come, however, from the training of a police officer, but was inflicted by a gun fired by a non-policeman. Allowing the presence on and use of the shooting range by a private person, whether or not a relative of a policeman, does not appear to have had any purpose of police training; nor to have been done pursuant to any duty owed to the general public or "for the common good of all”. If there was negligence on the part of the city involved in permitting such person to shoot at that time and place, without proper supervision, and for private purposes, this would be negligence occurring other than in the exercise of a governmental function and would not be immune from liability.
It is true that the plaintiffs’ complaint is couched in terms of liability for nuisance, which we conclude is not an appropriate theory. Construing the complaint broadly, however, we find its allegations are sufficient to avoid immunity on the ground that the injury did not arise out of the exercise or discharge of a governmental function.
The sufficiency of the allegations as to the liability of the individual defendants is a question that has not been briefed or presented in this appeal; therefore, we do not discuss that question. It appears, however, that summary judgment in favor of such defendants was granted on the premise that because the city was immune from liability, so were the individual defendants. Since we find error in the lower court’s decision that the city was immune, we also reverse the decision as to the individual defendants.
Reversed and remanded. Costs to plaintiffs.
No issue has been raised in this appeal concerning the propriety of the parents of the deceased joining, in their individual capacity, as parties plaintiff in this suit. Such joinder appears to contravene MCIA 600.2922; MSA 27A.2922, which provides that actions for wrongful death shall be brought only under that statute and shall be brought by and in the name of the personal representative of the deceased.
MCLA 691.1401 et seq.; MSA 3.996(101) et seq.
Const 1963, art 10, § 2.
Gunther v Cheboygan County Road Commissioners, 225 Mich 619; 196 NW 386 (1923), quoted in McCann v Michigan, supra, at 79. | [
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Per Curiam.
Defendant pled guilty to armed robbery and felony firearm, contrary to MCL 750.529; MSA 28.797 and MCL 750.227b; MSA 28.424(2).
On appeal defendant asks this Court to remand his case back to the circuit court for resentencing because defendant was not present in the judge’s chambers at a presentencing conference. People v Briggs, 94 Mich App 723; 290 NW2d 66 (1980), and People v Worden, 91 Mich App 666; 284 NW2d 159 (1979), hold contrary to defendant’s position.
Affirmed. | [
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E. E. Borradaile, J.
Plaintiffs filed a complaint for declaratory judgment and injunction in circuit court against defendant City of Zeeland on September 22, 1978, challenging an ordinance which prohibited the sale of liquor within the city. The circuit judge ruled the challenged section of the ordinance was preempted by state law and was thus void. Defendant appeals as of right.
The parties submitted the case on the following stipulated statement of facts:
"The plaintiffs, Emeline Oppenhuizen and Kemma J. Sneller, residents of the City of Zeeland, applied to the State of Michigan, Department of Commerce, Liquor Control Commission, (hereinafter referred to as the 'Commission’) on March 23, 1977, for an SDM license for a business to be located at 338 West Washington, Zeeland, Michigan. Pursuant to Rule 3(2) of the Commission, the application was referred to the City of Zeeland to determine if the application for license complied with all of the appropriate State and local building, plumbing, zoning, fire, sanitation, and health laws as determined by the appropriate local law enforcement officials. Upon referral, the City of Zeeland reported to the Commission that the license application violated Section 15.2 of the Ordinance Code of the City of Zeeland which reads as follows:
" 'Sec. 15-2. Alcoholic beverages — Sale or gift of intoxicating liquor prohibited; exceptions.
" 'No person shall sell or give away within the city any spiritous, fermented or intoxicating liquor.
" 'The provisions of this section shall not apply to druggists or registered pharmacists, selling the same for medicinal, sacramental, mechanical or chemical purposes according to law, nor to a licensed physician prescribing the same.’
"On or about August 8, 1977, the Commission denied the application for the SDM license based upon the plaintiffs’ ability to comply with the provisions of 15-2 of the Ordinance Code of the City of Zeeland. For purposes of the factual review of this matter, the parties will stipulate as to the exhaustion of administrative remedies before the Commission.
"The parties further stipulate to the fact that the City of Zeeland is organized and operates pursuant to the Michigan Home Rule Act, MCLA 117.1 et seq.; MSA 5.2071 etseq.”
Plaintiffs had sued on the theories that the Michigan Constitution and 1933 (Ex Sess) PA 8 preempted the local ordinance, that the ordinance conflicted with 1933 (Ex Sess) PA 8, that the city did not have authority under the home rule act or the city charter to adopt the ordinance, and further that application of the ordinance to plaintiffs violated their due process rights under the Federal and Michigan Constitutions.
The trial court did not rule on the due process issue, having based its opinion on preemption. This Court sustains the decision of the trial court on the same basis and consequently also does not discuss the due process issue.
Appellant city’s basic argument is that Const 1963, art 7, § 22 is a broad grant of authority to municipalities; and that Const 1963, art 4, § 40 permits the Legislature to act as to control of traffic in alcoholic beverages, if it desires, but that because of many exceptions the Legislature has not seen fit to totally preempt the field._
Appellant stresses that the Supreme Court in Mutchall v Kalamazoo, 323 Mich 215; 35 NW2d 245 (1948), and Mallach v Mt Morris, 287 Mich 666; 284 NW 600 (1939), recognized the authority exercised by it in this case.
Without change except for improvement in phraseology, the 1963 Michigan Constitution contains the same provisions as contained in the 1908 Constitution for control of the sale of liquor in Michigan. The Legislature in § 1 of 1933 (Ex Sess) PA 8 provided that sale of alcoholic liquor was lawful "only as provided for in this act”.
The Michigan Supreme Court, struggling with the question of preemption in the area of pornography, developed in People v Llewellyn, 401 Mich 314, 322-324; 257 NW2d 902 (1977), the analysis to be employed in determining whether a municipal ordinance is preempted by a state statutory scheme as follows:
"A municipality is precluded from enacting an ordinance * * * if the state statutory scheme pre-empts the ordinance by occupying the field of regulation which the municipality seeks to enter, to the exclusion of the ordinance, even where there is no direct conflict between the two schemes of regulation.
"In making the determination that the state has thus pre-empted the field of regulation which the city seeks to enter in this case, we look to certain guidelines.
"First, where the state law expressly provides that the state’s authority to regulate in a specified area of the law is to be exclusive, there is no doubt that municipal regulation is pre-empted. Noey v Saginaw, 271 Mich 595; 261 NW 88 (1935).
"Second, pre-emption of a field of regulation may be implied upon an examination of legislative history. Walsh v River Rouge, 385 Mich 623; 189 NW2d 318 (1971).
"Third, the pervasiveness of the state regulatory scheme may support a finding of pre-emption. [Citations omitted.] While the pervasiveness of the state regulatory scheme is not generally sufficient by itself to infer pre-emption, it is a factor which should be considered as evidence of pre-emption.
"Fourth, the nature of the regulated subject matter may demand exclusive state regulation to achieve the uniformity necessary to serve the state’s purpose or interest.” (Footnotes omitted.)
With the adoption of the home rule act, cities felt they had powers previously not possessed. In Kalamazoo v Titus, 208 Mich 252, 260-261; 175 NW 480 (1919), this attitude is addressed:
"There is apparent a widely spread notion that lately, in some way, cities have become possessed of greatly enlarged powers, the right to exercise which may come from mere assertion of their existence and the purpose to exercise them. Whether these powers are really inherent in the community, but their exercise formerly was restrained, or are derived from a new grant of power by the State, or may be properly ascribed to both inherent right and to a new grant, are questions which do not seem to bother very much the advocates of the doctrine that they in any event exist. On the other hand, there is expression of grave doubt whether, in the view of the law, there has been any enlargement or extension of the subjects of municipal legislation and control or of the powers of cities except as those subjects and powers are specifically enumerated and designated in the Constitution itself and in the home rule act.”
In Richards v Pontiac, 305 Mich 666, 673; 9 NW2d 885 (1943), the Supreme Court quoted from National Amusement Co v Johnson, 270 Mich 613, 616; 259 NW 342 (1935), as follows:
"It is the rule that, in the absence of specific statutory or charter power in the municipality, the provisions of an ordinance which contravene a State law are void. * * * What the Legislature permits, the city cannot suppress, without express authority therefor.”
In Mallach v Mt Morris, supra, the Supreme Court in interpreting Const 1908, art 16, § 11 said the Legislature could grant cities power to prohibit sale of alcoholic beverages on Sundays and other specified days. "It is to be noted that the constitutional provision grants complete control to the liquor control commission subject, however, to statutory limitation.” Mallach, supra, 669.
The Michigan Liquor Control Commission (MLCC), pursuant to authority granted to it by MCL 436.7; MSA 18.977, adopted the following regulation:
"(3) An applicant for a new license, or for a transfer of location of an existing license, shall be denied if the commission is notified in writing that the applicant does not meet all appropriate state and local building, plumbing, zoning, fire, sanitation, and health laws and ordinances as certified to the commission by the appropriate law enforcement officials.” 1978 AACS R 436.1105(3).
As with the right of any municipality to regulate businesses as discussed in Mallach and Mute-hall, supra, the MLCC regulation recognizes the authority of the municipality over those areas of local control which involve all commercial activity. As was said in Tally v Detroit, 54 Mich App 328, 334; 220 NW2d 778 (1974), citing Johnson v Liquor Control Comm, 266 Mich 682; 254 NW 557 (1934):
"Due to the nature of the liquor business, the City of Detroit has the power to regulate the traffic within its own bounds through the exercise of its police powers, subject to the authority of the Liquor Control Commission only when a conflict arises.”
The home rule act allows a city to regulate trades, occupations and amusements within its boundaries, "not inconsistent with state and federal laws * * *”. MCL 117.4i(4); MSA 5.2082(4). (Emphasis added.)
The Legislature, consistent with the constitutional authorization, created the Liquor Control Commission under the Michigan Liquor Control Act, MCL 436.1 et seq.; MSA 18.971 et seq. Among other things, this act allows the manufacture for sale and selling of any alcoholic liquor subject to the terms, conditions, limitations and restrictions of the statute. It further states that:
"Except as by this act otherwise provided, the commission shall have the sole right, power and duty to control the alcoholic beverage traffic and traffic in other alcoholic liquor within the state of Michigan, including the manufacture, importation, possession, transportation and sale thereof.” MCL 436.1; MSA 18.971.
When a constitutional or statutory provision contains clear and unambiguous language it is not open to judicial construction and effect is given to the plain meaning of the words used. Shulevitz v Dep’t of Treasury, 78 Mich App 655; 261 NW2d 31 (1977), American Youth Foundation v Benona Twp, 8 Mich App 521; 154 NW2d 554 (1967).
The Michigan Constitution is quite clear that once the Legislature acts to create a Liquor Control Commission, that commission shall have complete control of the alcoholic beverage traffic within the state, including the retail sales thereof. Only if a majority of the electors in a county prohibit manufacture or sale is the commission prohibited from authorizing manufacture or sale therein.
There is no inconsistency between that provision and the home rule provision, all resolutions and ordinances being expressly made "subject to the constitution and law”. Const 1963, art 7, § 22; see also MCL 117.4j(3); MSA 5.2083(3). There being no showing that Ottawa County has by a majority of its electors prohibited manufacture or sale of alcoholic beverages in the county, no legislative body within that county may do what the voters have not authorized for the county at large.
There is no need to deal with plaintiffs’ due process question because of the findings relating to preemption.
Affirmed. No costs, a public question being involved.
Const 1963, art 7, § 22 provides in pertinent part:
"Each such city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law. No enumeration of powers granted to cities and villages in this constitution shall limit or restrict the general grant of authority conferred by this section.”
Const 1963, art 7, § 34 provides in relevant part:
"The provisions of this constitution and law concerning counties, townships, cities and villages shall be liberally construed in their favor.”
Const 1963, art 4, § 40 provides in pertinent part:
"[T]he legislature may by law establish a liquor control commission which, subject to statutory limitations, shall exercise complete control of the alcoholic beverage traffic within this state, including the retail sales thereof. The legislature may provide for an excise tax on such sales. Neither the legislature nor the commission may authorize the manufacture or sale of alcoholic beverages in any county in which a majority of the electors voting thereon shall prohibit the same.”
Kalamazoo v Titus, supra, 261, quotes from Cooley’s Constitutional Limitations (7th ed), pp 163, 264 et seq., as follows:
" 'One of the settled maxims in constitutional law is, that the power conferred upon the legislature to make laws cannot be delegated by that department to any other body or authority. Where the sovereign power of the State has located the authority, there it must remain; and by the constitutional agency alone the laws must be made until the Constitution itself is changed. * * *
" 'It has already been seen that the legislature cannot delegate its power to make laws; but fundamental as this maxim is, it is so qualified by the customs of our race, and by other maxims which regard local government, that the right of the legislature, in the entire absence of authorization or prohibition, to create towns and other inferior municipal organizations, and to confer upon them the powers of local government, and especially of local taxation and police regulation usual with such corporations, would always pass unchallenged. The legislature in these cases is not regarded as delegating its authority, because the regulation of such local affairs as are commonly left to local boards and officers is not understood to belong properly to the State; and when it interferes, as sometimes it must, to restrain and control the local action, there should be reasons of State policy or dangers of local abuse to warrant the interposition.
" 'The people of the municipalities, however, do not define for themselves their own rights, privileges, and powers, nor is there any common law which draws a definite line of distinction between the powers which may be exercised by the State, and those which must be left to the local governments. The municipalities must look to the State for such charters of government as the legislature shall see fit to provide; and they cannot prescribe for themselves the details, though they have a right to expect that those charters will be granted with a recognition of the general principles with which we are familiar. The charter, or the general law under which they exercise their powers, is their constitution, in which they must be able to show authority for the acts they assume to perform. They have no inherent jurisdiction to make laws or adopt regulations of government; they are governments of enumerated powers, acting by a delegated authority; so that while the State legislature may exercise such powers of government coming within a proper designation of legislative power as are not expressly or impliedly prohibited, the local authorities can exercise those only which are expressly or impliedly conferred, and subject to such regulations or restrictions as are annexed to the grant.’ Cooley’s Constitutional Limitations (7th Ed.), pp. 163, 264 et seq. ”
See also Note: Conflicts Between State Statutes and Municipal Ordinances, 72 Harvard L Rev 737, 740-741 (1959), which states:
"Thus, while a home-rule grant is generally held to permit a municipality to act in the fields of taxation, public utilities, education, health, liquor regulation, traffic control, and rent control, nonetheless when such ordinances conflict with state legislation, they have been held not to prevail.”
See also Florentine Ristorante, Inc v Grandville, 88 Mich App 614; 278 NW2d 694 (1979), under the 1963 Constitution. | [
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Mackenzie, J.
Defendant, Duane Henry, was convicted of armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm in the commission of a felony, MCL 750.227b; MSA 28.424(2), by a Detroit Recorder’s Court jury on May 30, 1978. Defendant was sentenced to serve a mandatory, two-year prison term for violation of MCL 750.227b; MSA 28.424(2) and a consecutive prison term of 20 to 40 years for the armed robbery conviction. Defendant files a delayed appeal pursuant to GCR 1963, 806.4(2).
Prior to trial, the court denied defendant’s motion in limine to suppress the use of his prior conviction for armed robbery for impeachment of the defendant should he take the stand. This conviction occurred in 1969, and defendant was confined for this offense until 1972.
Defendant’s first claim of error pertains to the prosecutor’s failure to indorse a witness named Delaney Windom at the time the information was filed. The trial court permitted the indorsement of Windom at trial four days before he testified on behalf of the prosecution. MCL 767.40; MSA 28.980 requires a prosecutor to indorse, on the information, the names of witnesses known to him at the time of filing the information. This statute has been interpreted to require the prosecutor to indorse only res gestae witnesses. See People v Carter, 87 Mich App 778; 276 NW2d 493 (1979), People v Harrison, 44 Mich App 578; 205 NW2d 900 (1973), People v Tann, 326 Mich 361; 40 NW2d 184 (1949), and People v Keywell, 256 Mich 139; 239 NW 288 (1931). In the instant case, the trial court determined that Windom was not a res gestae witness, and we agree. Windom clearly was not involved in the robbery. Nor was he at the scene of the robbery. No evidence was produced to indicate that he was in any way involved in the planning of the robbery. He was merely arrested a couple of hours after the crime as he was riding in the vehicle used in the crime with three other individuals, two of whom were involved in the robbery. Since Windom was not a res gestae witness, there is no requirement that he be indorsed at the time of the filing of the information.
Assuming, arguendo, that Windom should have been indorsed prior to trial, it was still within the judge’s discretion to allow indorsement at trial. The statute, MCL 767.40; MSA 28.980, provides in part that:
"Names of additional witnesses may be indorsed before or during trial by leave of the court and upon such conditions as the court shall determine.”
The Supreme Court in People v Tamosaitis, 244 Mich 258, 260-261; 221 NW 307 (1928), interpreting this statute’s forerunner, explained that this particular section was to vest wide discretion in the trial court. This discretion is, of course, reviewable. Since the purpose of requiring indorsement is to allow the defendant to prepare for trial, any error must be measured by the extent that the right was impaired. People v Hocquard, 33 Mich App 325, 327; 189 NW2d 750 (1971).
In the case at bar, the trial court permitted the indorsement of Windom on May 26, 1978. At that time, defense counsel was offered the opportunity to examine a statement given by Windom on November 20, 1977, to the police. Windom then did not testify until Tuesday, May 30, 1978. Defendant had ample time to interview the witness and to investigate facts bearing on his credibility. Defendant had more time than that found adequate in People v Zaluski, 28 Mich App 647; 185 NW2d 198 (1970). Because such opportunity to prepare for the witness existed and no prejudice to the defendant has been shown, the late indorsement was not error.
The defendant next contends that the trial court committed reversible error in allowing the prosecutor to impeach defendant Henry’s credibility by the introduction of evidence of a prior conviction for armed robbery. Defendant argued that the trial court did not exercise its discretion when ruling on defendant’s motion to suppress evidence of the conviction and, if it did, that the discretion was not exercised correctly because it failed to consider the factors presented in People v Crawford, 83 Mich App 35; 268 NW2d 275 (1978).
Our Supreme Court, in People v West, 408 Mich 332, 340; 291 NW2d 48 (1980), recently reiterated the trial court’s obligation:
"The law in Michigan is clear that the trial judge must recognize that he has the discretion to exclude reference to prior convictions for impeachment purposes. [People v] Jackson, 391 Mich [323,] 336[; 217 NW2d 22 (1974)]. When defendant moves to exclude reference to the convictions, the trial court 'must positively indicate and identify its exercise of discretion’. [People v] Cherry, [393 Mich 261; 224 NW2d 286 (1974)]. In this case the words "Motion in limine denied’ do not comply with the dictates of Cherry and Jackson. ”
The record in the instant case, as contrasted to West where the Court simply stated "motion in limine denied”, indicates the defense attorney, the prosecutor, and the court discussed at length the requirements of Crawford, only recently released at time of trial. In Crawford, supra, 39, this Court held that, when called upon to exclude evidence of prior convictions, a trial judge must exercise his discretion with respect to three specific criteria:
"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 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?). See, People v Farrar, [36 Mich App 294; 193 NW2d 363 (1971)], People v McCartney, [60 Mich App 620; 231 NW2d 472 (1975)].”
The record in this case leaves no doubt that the trial judge was aware that he had discretion to either admit or deny the admission of evidence of the defendant’s prior conviction; also, he was not unaware of the Crawford criteria because defense counsel had argued for exclusion on the basis of the Crawford factors. The trial judge’s statement in giving his decision to admit evidence of defendant’s prior conviction contained no analysis of the three specific Crawford criteria with respect to defendant.
Analyzing the instant case in terms of Crawford, we recognize that (1) the prior offense does bear directly on credibility and (2) the prior conviction concerned exactly the same conduct (armed robbery), creating the danger that the jury could conclude that, because defendant previously committed a similar crime, he had likely committed the present crime. In addition, defendant’s prior conviction was remote — he was convicted nine years previous to the trial and had been released six years previously, after which he had led a legally-blameless life. See Gordon v United States, 127 US App DC 343; 383 F2d 936 (1967). Thus, the admission of evidence of defendant’s prior conviction was extremely prejudicial but not particularly probative, leading us to the conclusion that Crawford’s second factor was not properly weighed by the trial judge.
The trial judge, in giving his reasoning regarding his decision to admit evidence of defendant’s prior conviction, stated:
"It has been the position of this Court — and it is in this case — that the defendant is here to have his day in Court, which he is entitled to; that if he chooses to take the Stand, which he is entitled to, he has got to subject himself to the Jury, and that Jury of twelve people have to know who the witness is and I think they are entitled to know as it effects [sic] his credibility, because he is going to be testifying and telling something or other about this case, as to whether they can believe this witness.
"Again, I repeat, I would give a cautionary instruction, obviously at the end of the case and even when the defendant testified if he so chooses to testify, that the purpose of getting involved in whether he has a record or not is merely an [sic] only for the purpose of impeachment, for the purpose of attacking credibility, for the purpose of the Jury determination. It is no different for your client than it would be for any witness on the Stand at any point. They are all subject to the rulings of impeachment, credibility, and the Jury as being twelve members of the community. Twelve peers of the defendant, and are entitled to know about the People before them, and I am sure we will get a Jury who will be able to listen to The Court and listen to the — and follow the law. That is the purpose of the instructions.” (Emphasis added.)
The trial court’s failure to distinguish the defendant from any other witness disregards any consid eration of the third Crawford factor, that is, the effect on the decisional process if the accused does not testify out of fear of impeachment by evidence of prior convictions. Defendant did not testify and failed to present a witness that gave the jury his side of the story. The defendant’s decision not to testify may have been made pursuant to the trial court’s ruling to admit the evidence of the prior conviction. See People v Denny, 86 Mich App 40; 272 NW2d 332 (1978). Although the evidence against defendant was substantial, it cannot be said that the error was harmless beyond a reasonable doubt.
Reversed and remanded for a new trial. | [
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Per Curiam.
The defendant, Jamel Mohammad Ideis, was charged with assault with intent to do great bodily harm less than murder in violation of MCL 750.84; MSA 28.279, and possession of a firearm in the commission of a felony in violation of MCL 750.227b; MSA 28.424(2). On June 11, 1979, the defendant pled guilty to the lesser included offense of felonious assault and the felony-firearm charge was dismissed. On June 26, 1979, the prosecutor asked that the trial court reinstate the felony-firearm charge in light of the Supreme Court decision declaring the felony-firearm statute constitutional. The trial court reinstated the charge and the defendant withdrew his guilty plea. On July 2, 1979, the defendant went to trial in Recorder’s Court. On July 3, 1979, the defendant was convicted by a jury of the lesser included offense of felonious assault and of the felony-firearm offense. On July 3, 1979, the defendnt received a suspended sentence for the felonious assault conviction and the mandatory 2 years for the felony-firearm conviction. The defendant appeals as a matter of right.
The defendant raises several issues on appeal, one of which requires reversal. The defendant contends that the court erred by failing to give a proper instruction on intent when instructing on the lesser included offense of felonious assault. We agree.
The trial court gave CJI 17:4:01, the recommended jury instruction on felonious assault. CJI 17:4:01 states:
"(1) The defendant is charged with felonious assault. Any person who shall assault another with a [gun/ revolver/pistol/knife/iron bar/club/brass knuckles/dangerous weapon] but without intending to commit the crime of murder and without intending to inflict great bodily harm less than murder is guilty of this charge.
"(2) The defendant pleads not guilty to this charge. To establish this charge the prosecution must prove each of the following elements beyond a reasonable doubt:
"(3) First, that the defendant assaulted [name complainant]. An assault is an attempt or threat, with force and violence, to do immediate bodily harm to another by one who has the present means of doing such harm.
"(4) Second, that the defendant committed such assault by the use of a dangerous weapon, that is, as alleged in this case, a [gun/revolver/pistol/knife/iron bar/club/brass knuckles/(s£a£e other dangerous weapon)]. ”
The trial court also gave CJI 17:4:07, which states:
"The statute in question here forbids the purposeful pointing of a gun [revolver/pistol] at another in a threatening manner.”
We realize that at the time of trial the trial judge did not have the benefit of the Supreme Court’s decision in People v Joeseype Johnson, 407 Mich 196; 284 NW2d 718 (1979). In that case, the trial court refused the defendant’s request to instruct the jury that the crime of felonious assault includes the specific intent to inflict an injury on another and instead instructed the jury that a felonious assault must be an "intentional assault”. On appeal, the Supreme Court stated that the trial court’s instruction constituted reversible error in that it failed to adequately inform the jury of the intent requirement. The Court held that the jury should have been instructed that there must be either an intent to injure or an intent to put the victim in reasonable fear or apprehension of a battery. People v Joeseype Johnson, supra, 210. In the case at bar, the instruction given by the trial court was incorrect under Joeseype Johnson. Because the Court in Joeseype Johnson did not an nounce a new rule but merely clarified existing law, the holding applies to the instant case and defendant is entitled to reversal.
We recognize that defendant did not request this instruction. We are not, however, precluded from considering this claim of error on appeal. The trial court is required to charge the jury concerning the law applicable to the case. People v Liggett, 378 Mich 706, 714; 148 NW2d 784 (1967), People v Oberstaedt, 372 Mich 521, 526; 127 NW2d 354 (1964), People v Lewis, 91 Mich App 542; 283 NW2d 790 (1979). The defendant’s defense at trial was that the shooting was accidental so that the improper instruction went to a controlling issue.
Reversed and remanded for a new trial. | [
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Per Curiam.
The trial judge granted the defendant’s motion for an order to proceed with arbitration. Plaintiffs appeal and we reverse.
In September, 1976, Debra Troy was pregnant and being treated by defendant. During the next two months she complained of vaginal spotting and vaginal discharges. Defendant advised her that the spotting was due to a weak cervix and prescribed vaginal suppositories for the discharge.
On the morning of November 10, 1976, Mrs. Troy called defendant and told him that she was having pains three to twelve minutes apart. At 4 p.m., Mrs. Troy went to the emergency room of Blodgett Hospital and from there to the labor room. At 5:20 p.m., she gave birth to a 1-pound, 9-ounce son, Chad Troy.
The next day, Mrs. Troy signed an arbitration agreement with Blodgett Hospital whereby she agreed to arbitrate any claim arising out of the health care rendered to her during her hospital stay. No agreement was signed on behalf of the infant son. The infant, Chad Troy, died on April 24, 1977.
Plaintiffs’ complaint states:
"That defendant Joseph H. Leep, M.D. breached said duty in the following manner:
"(a) That a reasonable and prudent licensed and practicing physician and surgeon specializing in obstetrics and gynecology, when faced with a pregnant woman in her third month experiencing a weak cervix, would attempt to suture said cervix to prevent the premature birth of a child.
"(i) Defendant failed to do this and his failure was a deviation of the acceptable standard of care.”
Defendant filed a motion in the trial court asking that the court order the plaintiffs to proceed with arbitration. The court granted the motion and plaintiffs appeal.
The arbitration agreement reads:
"I understand that this hospital and I by signing this document agree to arbitrate any claims or disputes (except for disputes over charges for services rendered) which may arise in the future out of or in connection with the health care rendered to me during this hospital stay and/or emergency room visit by this hospital, its employees and those of its independent staff doctors and consultants who have agreed to arbitrate.”
The defendant has signed a separate document wherein he also had agreed to submit such controversies to arbitration.
The arbitration agreement only covered actions for health care rendered while the patient was in the hospital. Plaintiffs in this case have alleged that defendant committed negligent actions prior to Debra Troy’s admission to the hospital. The arbitration agreement does not cover such actions.
The order of the trial court for the parties to arbitrate is reversed and set aside and the cause is remanded for trial.
Reversed. Costs to plaintiffs. | [
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Per Curiam.
The judgment of divorce, terminating the marriage between plaintiff and defendant, awarded custody of the parties’ three minor children to the plaintiff and provided that she must notify the court of any change of address and could not change the children’s domicile to outside the State of Michigan without prior court approval.
Defendant filed a petition for change of custody, and plaintiff appeals as of right the court order changing the children’s custody from herself to defendant.
Defendant petitioned for a change of custody below, alleging that on March 19, 1979, plaintiff removed herself and the children to Florida without prior court approval and established permanent residence there. The petition further alleged that, while in Florida, the children were subjected to an atmosphere of drinking and filth and had requested to live with defendant. Defendant asked that plaintiff be found in contempt of court for removing the children to Florida without prior court approval and that he be granted custody. Defendant had driven to Florida and brought the children back to Michigan with him just prior to filing the petition.
Plaintiff was personally served in Florida with notice of the hearing on defendant’s petition. Plaintiff did not appear at the hearing, but her counsel did. Defendant appeared with counsel. Plaintiff’s counsel informed the court that plaintiff would not be at the hearing. Plaintiff’s attorney offered to demonstrate "adequate reasons” why plaintiff was not present, reminded the trial judge that no change of custody could validly take place without considering the best interests of the children pursuant to MCL 722.23; MSA 25.312(3), and added that "[w]e’re here and ready to proceed at this time even though my client is not”. The trial judge rejected counsel’s offer and concluded the hearing by changing custody of the children to defendant, stating:
"She [plaintiff] had custody but removed custody of the children from this State without the authority, permission or consent of this Court. She is in violation of an order of this Court, the children are now back within the State of Michigan in the jurisdiction of the Court that had original jurisdiction. The parent that has custody had petitioned for a change of custody and this matter was set for hearing today to determine such through an advocacy proceeding.
"Inasmuch as the mother is not present, her default may be entered and the custody of the children will remain with the father under the jurisdiction of this Court until the further order of this Court.”
Plaintiff, on appeal, contends that the court committed reversible error by changing custody of the children to defendant without determining what the best interests of the children were pursuant to the Child Custody Act of 1970, MCL 722.21 et seq.; MSA 25.312(1) et seq. We agree.
In Dowd v Dowd, 97 Mich App 276, 278-279; 293 NW2d 797 (1980), this Court stated:
"The [Child Custody Act of 1970] provides that in a custody dispute between parents the best interests of the child shall control, MCL 722.25; MSA 25.312(5), and indicates that modification of previous orders providing for custody should not occur unless the modification is in the best interests of the child. MCL 722.27; MSA 25.312(7). The act contains an extensive list of factors to be considered in determining the best interests of the child.
"The trial court must evaluate each of the factors to determine the best interests of the child before deciding a custody or visitation rights dispute. Flaherty v Smith, 87 Mich App 561; 274 NW2d 72 (1978), Troxler v Troxler, 87 Mich App 520; 274 NW2d 835 (1978), Stevens v Stevens, 86 Mich App 258; 273 NW2d 490 (1978). * * * Furthermore, the trial court was required by GCR 1963, 517.1 to make definite findings of fact and to state its conclusions of law; a duty which extends to the determination and explicit consideration of each of the 'best interests’ factors listed in the act. Lewis v Lewis, 73 Mich App 563; 252 NW2d 237 (1977).”
Because the trial court declined to take any evidence regarding the best interests of the chil dren and based the change of custody solely upon plaintiffs "default”, we reverse and remand for a hearing within 30 days to determine the children’s best interests and custody pursuant to the Child Custody Act. Notice of that hearing upon plaintiffs counsel of record shall be sufficient notice to the plaintiff. There is no requirement that plaintiff be personally present in order for the trial court to act on the petition. Plaintiffs counsel shall be afforded the opportunity to present whatever proofs he deems appropriate and to cross-examine any witnesses that may appear.
Reversed and remanded. | [
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H. E. Deming, J.
Plaintiffs, Village of Franklin and Lilyan Victor, appeal as of right from the circuit court’s award of summary judgment in favor of defendants and subsequent denial of plaintiffs’ motion for rehearing.
In March, 1978, the Southfield City Council approved a site plan for a proposed residential and commercial development called Park LaSalle and authorized the issuance of building permits. Plaintiffs appealed to the Southfield Board of Zoning Appeals, challenging the approval. The board, acting on the advice of the city attorney that it lacked jurisdiction, refused to hear the appeal. Plaintiffs then filed a complaint in circuit court seeking injunctive relief and an order requiring the board to hear their appeal. Both sides filed motions for summary judgment, and, on March 13, 1979, Circuit Court Judge William J. Beer issued an opinion holding that defendants were entitled to summary judgment because plaintiffs, having failed to allege and prove special damages, lacked standing under the zoning enabling act, MCL 125.581 et seq.; MSA 5.2931 et seq. Plaintiffs filed a motion for rehearing and/or reassignment which was denied on May 16, 1979.
In order for a party to have standing in court to attack the actions of a zoning board of appeals, the party must be an aggrieved party, and standing cannot be based solely on the fact that such party is a resident of the city. Marcus v Busch, 1 Mich App 134; 134 NW2d 498 (1965). In the present case, the circuit court relied on MCL 125.590; MSA 5.2940, which authorizes an appeal to circuit court by a "party aggrieved” by a board of zoning appeals decision. We agree with the circuit court’s decision that the present plaintiffs lacked standing because they were not aggrieved parties.
In Unger v Forest Home Twp, 65 Mich App 614; 237 NW2d 582 (1975), this Court held that a party, seeking to establish his status as a person aggrieved, must allege and prove that he has suffered special damages not common to other property owners similarly situated. The Court referred to Joseph v Twp of Grand Blanc, 5 Mich App 566; 147 NW2d 458 (1967), which held that mere increase in traffic volume resulting from the challenged action does not constitute special damages nor is proof of general economic and aesthetic loss sufficient. In the present case, plaintiff Village of Franklin relies on its status as an adjoining community to establish its standing. No special damages were alleged or proven, and we agree with the circuit court’s conclusion that this plaintiff was not aggrieved and therefore lacked standing.
Plaintiff Lilyan Victor relies on her status as the owner of land adjoining the proposed development site to establish standing and likewise failed to allege or prove special damages. The cases discussed above did not involve abutting landowners; however, in Western Michigan University Board of Trustees v Brink, 81 Mich App 99, 103 fn 1; 265 NW2d 56 (1978), the plaintiff claimed standing to appeal a zoning board decision by virtue of its ownership of property adjoining property affected by the decision. This Court found the issue was not properly preserved for appeal, but commented as follows:
"Even if this issue were preserved for review we would be little impressed by plaintiff’s argument. Our research has revealed no Michigan case on point; for eign jurisdictions split on the question. See Comment, Standing to Appeal Zoning Determinations: The Aggrieved Person’ Requirement, 64 Mich L Rev 1070, 1079 (1966), and cases therein cited; 4 Anderson, American Law of Zoning (2d ed), 25.18, pp 231-237; 2 Rathkopf, The Law of Zoning and Planning (3d ed), pp 63-21 to 63-23. See also 1 Yokley, Zoning Law and Practice (2d ed), § 172, pp 427-434. We see little reason for abandoning the general rule that '[t]hird parties will be permitted to appeal to the courts as persons aggrieved if they can "show that * * * their property will suffer some special damages as a result of the decision of the board complained of, which is not common to other property owners similarly situated” ’. Comment, 64 Mich L Rev, supra, at 1078-1079. (Footnotes and citation omitted.) If adjoining landowners could suffer such special damages, then they can easily plead them. If the board’s decision does not pose a threat of unique harm to the neighbor, then the courts would be ill-served by a rule allowing his suit.”
We see no reason for presuming that plaintiff Victor was aggrieved absent proof of special damages. The circuit court correctly ruled that she lacked standing.
We do not address plaintiffs’ claim that the environmental protection act, MCL 691.1201 et seq.; MSA 14.528(201) et seq., conferred standing because the claim was not presented below. The record does not support plaintiffs’ allegation that their action was consolidated with another circuit court action based on the environmental protection act.
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