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D. E. Holbrook, Jr., J.
The instant case involves a so-called "pistol zone” annexation matter. Some years ago Michigan State University was annexed to the City of East Lansing; subsequently, the University built new dormitories. As it turned out the line dividing the annexed portions of the University campus from those portions which remained in the Charter Township of Meridian ran through the dormitories, so that some university students living inches from one another were required to vote in different municipalities. On July 26, 1979, petitions were presented to the Ingham County Clerk pursuant to § 34(5) and (6) of the charter township act, MCL 42.34; MSA 5.46(34), seeking annexation of the "pistol zone” to the City of East Lansing. On August 15, 1979, the clerk certified the petitions as containing the requisite number of signatures and being in suitable form and, pursuant to the Charter Township statute, directed that the annexation matter be submitted at the November 6, 1979, general election. The Election Scheduling Committee of the County of Ingham on August 29, 1979, confirmed the election date. At the general election then held, the annexation petition was approved by a two-to-one vote of East Lansing voters and by an almost four-to-one margin by those living in the "pistol zone” itself.
Upset with the loss of possibly more than $100,-000 annually in Federal and state revenue sharing funds, the Charter Township of Meridian attempted to invalidate the annexation referendum. On January 23, 1980, the Ingham County Circuit Court declared the annexation election invalid on the grounds that subsections (5) and (6) of § 34 of the charter township act, MCL 42.34; MSA 5.46(34), were unconstitutional. Defendant City of East Lansing appealed as of right. Pending deci sion, this Court issued an order staying the circuit court judgment.
The trial court held that 1978 PA 591, essentially a properly edited version of 1978 PA 242, amends § 9(11) of the home rule cities act, MCL 117.9(11); MSA 5.2088(11), in violation of Const 1963, art 4, § 25, which provides:
"No law shall be revised, altered or amended by reference to its title only. The section or sections of the act altered or amended shall be reenacted and published at length.”
The trial court held that subsections (5) and (6) of § 34 of the charter township act are a wholesale repeal of § 9(11) of the home rule cities act, and accordingly in violation of art 4, § 25.
In this conclusion the trial court erred. 1978 PA 591, the statute at issue, is an act complete within itself, containing provisions regarding annexation of portions of charter townships to contiguous cities or villages. The act requires reference to no other act regarding annexation for a determination of the import of its provisions or in order for it to be effectuated. An act thus complete within itself, even though repealing by implication another statute, is not one of the evils sought to be prevented by art 4, § 25 and is thus not a violation of that constitutional provision. In re Wright, 360 Mich 455; 104 NW2d 509 (1960), Washtenaw County Road Comm’rs v Public Service Comm, 349 Mich 663; 85 NW2d 134 (1957), Lafayette Transfer & Storage Co v Public Utilities Comm, 287 Mich 488; 283 NW 659 (1939), Spillman v Weimaster, 275 Mich 93; 265 NW 787 (1936), People v Marxhausen, 204 Mich 559; 171 NW 557 (1919), People v Daily, 178 Mich 354; 144 NW 890 (1914), People v Walter Johnson, 85 Mich App 654, 659-660; 272 NW2d 605 (1978).
The second reason advanced by the trial court, that the act fails to indicate sufficient standards for exercise of the authority granted and delegated to the county clerk therein, is likewise unsupportable on this record. The pertinent section is subsection (6), which provides, in relevant part:
"If a petition is filed pursuant to subsection (5), the county clerk, after determining the validity of the petition, shall order a referendum on the question of annexation.”
The county clerk testified that in determining the validity of the petition, he referred to other statutes, including the home rule cities act, which contain specifications for the form, circulation, and notarization of petitions relating to election matters. The trial court felt that this involved unbridled discretion by the county clerk. This conclusion was clearly erroneous.
Numerous statutes in this state deal with the form of petitions and the manner by which signatures on petitions are checked for validity. No allegation has been made in this case that the county clerk applied any inappropriate standard in certifying the petitions filed with him regarding this annexation as valid, or that some other standard should have been applied and, if applied, would have led to the invalidating of these petitions.
Matters of concern to one inquiring as to the validity of petitions would be whether the requisite number of signatures required by the statute, in this case 20 percent of the electors of the city, are present, meaning that the signatures must be checked, as with any election petition, against those on file with the county clerk regarding eligible voters. The petitions must have been circulated only in the affected area, must bear the names and signatures of the circulators, and must be in sufficiently clear terms so that those signing the petition can be assumed to have understood to what it was they were appending their signatures. As a 200-year history of democracy in this country and nearly 150 years in this state have given county clerks substantial experience in such matters, ample standards exist by which clerical discretion in determining the validity of such petitions can be guided, measured, and restricted. As a general principle, all doubts as to technical deficiencies or failure to comply with the exact letter of procedural requirements are resolved in favor of permitting the people to vote and express their will on any proposal subject to election. Boucher v Engstrom, 528 P2d 456, 562 (Alas, 1974), Cope v Toronto, 8 Utah 2d 255; 332 P2d 977 (1958); see also, Thompson v Secretary of State, 192 Mich 512, 521-522; 159 NW 65 (1916), Alexander v Mitchell, 119 Cal App 2d 816; 260 P2d 261 (1953), Brownlow v Wunsch, 103 Colo 120; 83 P2d 775 (1938). The results of the election may be deemed to cure any procedural deficiencies resulting in placement of the question on the ballot. State ex rel Graham v Board of Examiners, 125 Mont 419; 239 P2d 283 (1952), Brown v Morris, 365 Mo 946; 290 SW2d 160 (1956), City of Jackson v Comm’r of Revenue, 316 Mich 694, 716-719; 26 NW2d 569 (1947).
In view of the foregoing the judgment of the trial court is reversed and the annexation held valid by this Court. No costs, a public question involved. | [
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Per Curiam.
Joyce Belfiori, former plaintiff-ad-ministratrix of the estate of Charles Belfiori, filed a wrongful death products liability action in Ma-comb County Circuit Court on November 26, 1979. On April 7, 1980, the circuit judge denied defendant’s motion for summary judgment but, at defendant’s request, ordered plaintiff to post a $1,500 security bond. By order dated May .5, 1980, plaintiff was given two weeks to post the bond. Following plaintiff’s failure to post bond in accordance with the order, the judge dismissed plaintiff’s case with prejudice on June 3, 1980. Plaintiff appealed as of right. Entitlement of this appeal was amended by order of this Court to reflect that Samuel J. Belfiori, Jr., is the present administrator of this estate.
Plaintiff’s decedent, Charles Belfiori, was an employee of the Ford Motor Company. On or about June 11, 1979, a "Hi Lo” forklift truck, manufactured by defendant and purchased by Ford, fell off a loading dock and into a well at Belfiori’s work place. Belfiori supervised a group of employees who were attempting to lift the forklift out of the well. A cable from an overhead crane was attached to an eyelet at the top of the forklift’s mast. As the forklift was raised off the ground, its weight shifted, and Belfiori was fatally crushed.
Plaintiff’s complaint alleged negligence and breach of warranty against defendant, Allis-Chal-mers, Inc. In its motion for summary judgment defendant claimed that "[a]s a matter of law, there is no duty on the part of the manufacturer of a product to provide devices and/or instruction regarding recovery of that product after a wreck”. On April 7, 1980, following the hearing on its motion, defendant orally requested the trial court to set a bond to secure costs:
"[Defense Counsel]: Your Honor, will you set a bond to secure costs?
"The Court: Yes, I will. What are you asking for to take the proceedings from here on out?
"[Defense Counsel]: Fifteen hundred dollars, Your Honor.
"The Court: Fifteen hundred dollars bond, counsel.
"[Defense Counsel]: Thank you, Your Honor.”
This ruling came immediately after the judge denied defendant’s motion for summary judgment. Although the judge believed that plaintiffs theory of liability was tenuous, in his discretion, he decided to allow plaintiff to pursue further discovery. Plaintiff voiced no objection to defendant’s request for a bond nor to the amount at which it was set. Plaintiff did not post the bond or file an affidavit showing that plaintiff was unable to do so, and the case was dismissed. On appeal, plaintiff challenges the propriety of the lower court’s actions.
Plaintiff’s chief contention on appeal is that the court erred in failing to assess plaintiffs financial ability to post bond and in failing to inquire of defendant about the necessity of the amount requested. GCR 1963, 109, provides in pertinent part:
"In any civil actions, upon motion made by any defendant, any plaintiffs, when it appears reasonable and proper to the court, may be required to file with the clerk of court a bond to the defendant with sureties to be approved by the court in an amount sufficient to cover all costs which may be awarded by the trial court, or, if the plaintiff appeals, by both the trial and appellate courts, such amount to be determined by the court in its discretion. Notwithstanding the above:
"(1) any plaintiff who shows by affidavit that he is financially unable to furnish a security bond and whose complaint states a meritorious claim may be allowed to proceed without furnishing security for costs * * (Emphasis added.)
Gaffier v St John’s Hospital, 68 Mich App 474; 243 NW2d 20 (1976), is one of the few reported appellate cases interpreting GCR 109. In Gaffier, plaintiff was an elderly woman whose sole income came from a monthly social security check of $197. She brought a $6,000,000 malpractice suit against the defendant hospital and five doctors. At the request of the defendant hospital, the trial court ordered plaintiff to file a $2,500 surety bond with the court clerk. Plaintiff appealed by leave granted, and this Court reversed the trial court’s order requiring the bond.
In Gaffier, after noting that the security provided to the defendant hospital was more than plaintiffs yearly social security income, the Court held that the trial judge abused his discretion in ordering plaintiff to post the security bond:
"Defendant’s motion gave no explanation of the necessity of that sum, nor indicated any particular hardship that would result were the bond to be denied. We cannot bar this plaintiff from the courts because of her poverty.” Id., 479.
The Gaffier Court also stated that a security bond should be ordered only upon the "movant’s showing substantial reason”. Id., 478. At several points throughout the opinion, the Court noted that the decision whether or not to grant a bond and the amount of the bond rests within the sound discretion of the trial court. Id., 477-479. That trial courts are vested with a large degree of discretion in the matter of setting security bonds is well established. In the case of In re Ford’s Estate, 339 Mich 339, 346; 63 NW2d 417 (1954), our Supreme Court, quoting from Goodenough v Burton, 146 Mich 50; 109 NW 52 (1906), and Balahoski v Kent Circuit Judge, 243 Mich 70; 219 NW 597 (1928), held that:
" 'This Court will not review the discretion of the circuit judge who makes or denies an order for security for costs.’ ”
While the legal principles stated in Gaffier are instructive, the present case is distinguishable as the present plaintiff has made absolutely no showing of indigency. Plaintiff failed not only to interpose an objection at the time the bond was originally set but also has failed to file an affidavit demonstrating a financial inability to post the bond.
On appeal, our sole function is to determine whether the trial court abused its discretion in setting the bond. In re Ford’s Estate, supra, 346. Our review of the record convinces us that the judge did not. Prior to ordering the bond, the judge had listened to the attorneys argue a summary judgment motion. Based on the arguments presented, as well as the file that existed at the time, he probably could have granted defendant’s motion. He denied it, however, choosing to give plaintiff more time to develop plaintiff’s case. We are of the opinion that the very fact that plaintiff’s theory of liability was so tenuous provided the "substantial reason” for granting the motion for a security bond. See Flanagan v General Motors Corp, 95 Mich App 677; 291 NW2d 166 (1980).
We are also of the opinion that the judge did not abuse his discretion in setting the bond at $1,500. Clearly, a trial judge will set the bond in light of his own experience. This fact was recognized and approved by the Supreme Court in In re Ford’s Estate, supra, 346-347, where it stated:
"The unanswered allegations of defendants’ motion and supporting affidavit regarding plaintiff’s claim, the hies of this case containing that claim, and the hies in other cases in that court (of which it might properly take judicial notice — Wilkinson v Conaty, 65 Mich 614 [32 NW 841 (1887)], People v Fleisher, 322 Mich 474 [34 NW2d 15 (1948)], disclosing the extent to which costs may reasonably be expected to mount in proceedings such as this, afforded ample basis for the probate court’s exercise of its discretion and its finding that it appeared to be reasonable and proper, as provided in section 5 of the statute, to require security for costs in the amount ordered.” (Emphasis added.)
We conclude, therefore, that there was substantial reason for setting the bond in the instant case and that the amount of the bond was not unreasonable. In order to facilitate meaningful appellate review, however, we urge trial judges in the future to articulate the basis for their decision to set bond and, if possible, the basis for the amount set.
Finally, we conclude that the trial court did not abuse its discretion by imposing the sanction of dismissal for plaintiffs failure to comply with its order requiring security to be posted. Our Supreme Court continually has held that a trial court properly may dismiss an action where the plaintiff fails to comply with such an order. Goodenough, supra, 52, Balahoski, supra, 72, Lott v Hirsch, 342 Mich 376, 377; 70 NW2d 818 (1955).
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Per Curiam.
In this case, we are asked to determine the priority of a state sales tax lien imposed under MCL 205.63; MSA 7.534, since repealed, 1980 PA 164, and placed upon a quantity of money found in the defendant’s home. The state claims that its lien takes precedence over an attorney’s charging lien placed upon the money by the appel-lees (defendant’s attorneys) to secure payment for extensive legal services provided to the defendant.
On November 1, 1979, the lower court granted a defense motion for summary judgment on the basis that the state’s lien had no priority over the appellee’s charging lien. The lower court’s opinion found first that the state was guilty of laches since it waited until April 9, 1979, to seek to impress the lien with knowledge that defendant’s attorneys had been working on various aspects of the defendant’s case since February, 1975. The court also based its opinion upon a finding that defendant’s attorneys were "purchasers for value” of an interest in the disputed fund and thus were exempt under MCL 211.686; MSA 7.753(56) from the statutory priority otherwise accorded to state liens by MCL 205.63; MSA 7.534. Finally, the court found the charging lien to be equitable in nature and thereby entitled to priority. Plaintiff appeals the order of summary judgment by leave granted.
On February 27, 1975, Chester Wheeler Campbell was arrested for an unrelated offense. Pursuant to a subsequently obtained warrant, a search of his residence was conducted, resulting in a seizure of firearms, contraband, and cash in the amount of $280,100. The following day, the Internal Revenue Service (IRS) issued a jeopardy assessment and attached $137,823 of the seized funds for satisfaction of taxes due. That day the State of Michigan also issued a jeopardy tax assessment against Campbell for $314,304.90 for sales taxes allegedly due between September 1 and December 31, 1974.
On July 31, 1975, Federal District Judge Charles W. Joiner ordered that the money seized by Detroit police and turned over to the IRS be returned to Mr. Campbell. This order was appealed to the United States Sixth Circuit Court of Appeals, which affirmed the order in an opinion issued March 16, 1976. Campbell v United States, 532 F2d 1057 (CA 6, 1976). On March 26, 1979, Judge Joiner again ordered the return of the money to Mr. Campbell, plus interest at the rate of 4% per annum from July 31, 1975, to the date of payment.
The IRS began an entirely new proceeding against Mr. Campbell on March 9, 1975, by sending him a notice of deficiency for the taxable year 1974. Mr. Campbell then filed suit in the U.S. Tax Court for a redetermination of his tax liability. Campbell v Comm’r of Internal Revenue (Docket No. 4774-76, decided June 16, 1980 [unreported]).
The IRS entered a new jeopardy assessment against Campbell on April 27, 1976, and petitioned the Federal district court for permission to continue to hold the funds until the tax court rendered its decision. The Federal district court granted this request, which decision was also appealed by Campbell to the Sixth Circuit Court of Appeals. On February 5, 1979, that court again ordered that the funds held by the IRS be returned to Campbell. Campbell v United States, 592 F2d 309 (CA 6, 1979).
In the meantime, action had also been taken by the defendant regarding the matter of the jeopardy tax assessment issued by the State of Michigan on February 28, 1975. After he received notice of the state’s action, Defendant requested, on March 25, 1975, an informal hearing on the validity of the state assessments. On April 1, 1975, Campbell received a form letter from the state, indicating that his request was timely. The letter also described the procedure for appeal on an "intent to assess” and advised the defendant to ignore any additional state assessments based upon the "intent to assess”. See Campbell v Dep’t of Treasury, 77 Mich App 435, 437; 258 NW2d 508 (1977).
On July 11, 1975, an order issued by the Commissioner of the State Department of Treasury effectively blocked the defendant’s informal appeal. The order disclosed the department’s practice of holding informal hearings on both jeopardy assessments and intent to assess matters. However, the commissioner relied upon advice of the Michigan Attorney General to hold that the department had no statutory jurisdiction to hold such jeopardy assessment hearings. Id., 438. A subsequent appeal of this decision to the Board of Tax Appeals was dismissed for lack of jurisdiction on October 23, 1975. This determination was again appealed, and, on August 22, 1977, this Court remanded the action to the Board of Tax Appeals for a hearing. Id., 443. On October 30, 1978, the Board issued an opinion and order refusing to cancel the assessment because such relief was said to be beyond the powers of that tribunal. The defendant did not pursue an appeal of this order.
On March 26, 1979, Judge Joiner issued an order directing the United States to issue a check for $137,823, plus interest, to Mr. Campbell and to deliver the check to the U.S. District Court on April 10, 1979. The order also required the United States, prior to delivery of the check, to give the State of Michigan notice of the time and place of delivery. The required date of delivery was later changed to April 13, 1979, in an order signed by U.S. District Judge Thomas P. Thornton.
On April 9, 1979, the State of Michigan filed its complaint in this action and obtained a temporary restraining order enjoining Campbell and his attorneys from releasing, transferring, cashing, depositing, assigning, or otherwise disposing of the check. In response, the defendants filed the motion for summary judgment from which this appeal is brought.
I
We first address the scope of MCL 205.63; MSA 7.534, the provision establishing the priority of state tax liens, in light of the attorney’s charging lien. The statute provides in part:
"The tax herein imposed in addition to the interest and penalties provided in sections [MCL 205.59] and [MCL 205.61] hereof, and costs that may accrue in addition hereto, shall be a lien in favor of the state against all property and rights of property, both real and personal, then owned or afterwards acquired by any person or persons, firm, association or corporation, liable therefor, to secure the payment of such tax, interest, penalties and costs, which lien shall attach to the property from and after the date that any report upon which the specific tax is computed is required by this act to be filed. Such lien shall take precedence over all other liens and incumbrances whatsoever, irrespective of character or date, except previously recorded bona ñde financing. ” (Emphasis added.)
Unlike the state’s statutorily created incumbrance, an attorney’s charging lien was recognized at common law and attaches to a judgment or fund resulting from the providing of legal services. Miles v Krainik, 16 Mich App 7, 9; 167 NW2d 479 (1969), citing Shank v Lippman, 253 Mich 451; 235 NW 216 (1931).
In construing the disputed statute, we are governed by traditional rules of interpretation. First, a statute unambiguous on its face will not be subject to further interpretation or construction. Charter Twp of Pittsfield v City of Saline, 103 Mich App 99; 302 NW2d 608 (1981), Detroit v Twp of Redford, 253 Mich 453; 235 NW 217 (1931). Where ambiguity is found, however, it is our duty to give effect to the intention of the Legislature which enacted the provision. Melia v Employment Security Comm, 346 Mich 544; 78 NW2d 273 (1956). To determine the meaning of ambiguous terms, we will look to the object of the statute and the problem which it is intended to remedy and will apply a reasonable interpretation which best accomplishes its remedial purpose. Bennetts v State Employees Retirement Board, 95 Mich App 616; 291 NW2d 147 (1980). Also, statutes not clear on their face will be interpreted as a whole and construed so as to give effect to each provision and to produce a harmonious and consistent result. In re Petition of State Highway Comm, 383 Mich 709; 178 NW2d 923 (1970), People v Miller, 78 Mich App 336; 259 NW2d 877 (1977). Finally, specific words in a disputed statute will be given their ordinary meaning absent evidence of a contrary legislative intent. Oshtemo Twp v Kalamazoo, 77 Mich App 33, 39; 257 NW2d 260 (1977), MCL 8.3a; MSA 2.212(1).
To the above rules of construction, we add the additional principle that the Legislature, in enacting a statute, is presumed to have knowledge of contrary common-law rules which the statute will abrogate. Garwols v Bankers Trust Co, 251 Mich 420, 424; 232 NW 239 (1930), 2A Sutherland, Stat utory Construction (4th ed), § 50.01, p 268 ("In cases of conflict between legislation and the common law, legislation is superior, and, being the latest expression of the law, it will govern.”)
We do not think that the Legislature could have been more clear in drafting the statute at issue. By its terms, the state’s lien takes priority over all competing liens, regardless of their date or character. The absolute language employed by the Legislature in describing the precedence of state tax liens cannot be circumvented by judicial interpretation. We thus find the state’s tax lien has priority over that urged by defendants.
II
We next address the lower court’s conclusion that the defense of laches is available to bar enforcement of the state’s statutory lien. Plaintiff cites numerous decisions from other states which uniformly bar application of the defense of laches, in whole or part, to suits initiated by government agencies to enforce so-called "public rights”. We find these decisions inapplicable, however, in light of the Supreme Court’s decision in Twp of Royal Oak v School Dist No 7, Royal Oak Twp, 322 Mich 397; 33 NW2d 908 (1948). In that decision, the Supreme Court rejected the plaintiff’s argument against applying laches, by quoting language presently found at 30A CJS, § 114, pp 34-37. The Court held:
"We are not in accord with plaintiff’s claim that the doctrine of laches is not applicable against a municipal corporation seeking enforcement of public rights.” Id., 403.
Admittedly, the Royal Oak decision, like all other reported Michigan cases involving the defense of laches against a suit initiated by a government agency, involved an action brought against a second public entity. We can see no reason, however, why laches should not be similarly available to an individual responding to a government initiated action. The general language employed by the Royal Oak Court, particularly in light of that Court’s summary of the plaintiffs position, suggests that the availability of the defense of laches was intended to include cases similar to the instant dispute.
Having found laches to constitute a potential defense in cases like the present, we must determine whether the defense was properly invoked to bar the state’s cause of action. It has long been held that the mere lapse of time will not, in itself, constitute laches. Tray v Whitney, 35 Mich App 529; 192 NW2d 628 (1971), Sanders v Campbell, 231 Mich 592; 204 NW 767 (1925). The defense, to be raised properly, must be accompanied by a finding that the delay caused some prejudice to the party asserting laches and that it would be inequitable to ignore the prejudice so created. Tray, supra, Spencer v Childers, 307 Mich 145, 148; 11 NW2d 837 (1943). Finally, "[t]he delay in moving may always be explained, and, if satisfactorily accounted for, relief will be granted, notwithstanding the lapse of time”. Bayley v Friedberg, 226 Mich 125, 129; 197 NW 559 (1924). See also Carpenter v Mumby, 86 Mich App 739; 273 NW2d 605 (1978).
The plaintiff alleges that it is excused from the effect of its four-year delay because the state was foreclosed under MCL 205.62; MSA 7.533, since repealed, 1980 PA 164, from enforcing its jeopardy tax assessment. We agree. The statute provides in relevant part:
"If the tax imposed by this act is not paid within the time allowed by section [MCL 205.56] of this act or as otherwise required by law, the department, or some person designated by it, may cause a demand to be made on the taxpayer for the payment thereof. If such tax remains unpaid for 10 days after such demand has been made and no proceedings have been taken to review the same, the department may issue a warrant under the official seal of its office, directed to the sheriff of any county of the state or to any state officer authorized to serve process, commanding said sheriff or other officer to levy upon and sell the real and personal property of the taxpayer, without exemption, found within his jurisdiction, for the payment of the amount thereof with the added penalties, interest and the cost of executing the warrant.”
Applying the rules of statutory construction summarized above, we find this provision to be unambiguous on its face and not subject to further interpretation. The statute clearly precludes the state from attempting to enforce a demand for payment of sales taxes during the period in which an appeal of the assessment is pending. In this case, defendant Campbell initiated informal review proceedings on March 25, 1975, which proceedings were not finally concluded until October 30, 1978. The plaintiff filed the complaint in this case on April 9, 1979. Viewing these circumstances in their entirety, we do not agree with the lower court that the state stood idly by, refusing to pursue available remedies, while the appellee law firm performed extensive legal work on behalf of defendant Campbell. Rather, the state’s hands were statutorily tied for most of the period during which the appellee performed work for defendant Campbell. We hold, therefore, that the lower court erred in basing its order of summary judgment on a finding that the state was guilty of laches.
Ill
The plaintiff lastly alleges as error the lower court’s holding that the appellee law firm was a purchaser for value of a portion of the money discovered in defendant’s home, thus rendering the firm’s interest in the property superior to the state’s lien pursuant to MCL 211.686; MSA 7.753(56). The statute states:
"A state tax lien not filed or recorded pursuant to this act shall be void against any mortgagee, pledgee, purchaser (including land contract purchaser) or judgment creditor who secured any interest in the property subject to the lien prior to the time such notice of lien was filed or recorded, as provided for in this act.”
The meaning of "purchaser” in this provision has not been previously determined. However, we note a similar Federal provision establishing the priority of certain interests in property over the Federal government’s lien on the real and personal property of delinquent taxpayers:
"Purchasers, holders of security interest, mechanic’s lienors, and judgment lien creditors.
"The lien imposed by section 6321 shall not be valid as against any purchaser, holder of a security interest, mechanic’s lienor, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) [26 USC 6323(f)] has been filed by the Secretary.” 26 USC 6323(a).
The Federal statute is similar to our own, particularly in its reliance on the lien’s filing date (subsection [f]) as determinative of the priority of conflicting property interests. The Federal statute is more detailed, however, and provides the following definition of purchaser:
"Purchaser.
"The term 'purchaser’ means a person who, for adequate and full consideration in money or money’s worth, acquires an interest (other than a lien or security interest) in property which is valid under local law against subsequent purchasers without actual notice. In applying the preceding sentence for purposes of subsection (a) of this section, and for purposes of section 6324
"(A) a lease of property,
"(B) a written executory contract to purchase or lease property,
"(C) an option to purchase or lease property or any interest therein, or
"(D) an option to renew or extend a lease of property, "which is not a lien or security interest shall be treated as an interest in property.” (Emphasis added.) 26 USC 6323(h)(6).
In prior cases, we have looked to comparable Federal tax statutes to determine the scope of their Michigan counterparts. See Fremont Mutual Ins Co v Dep’t of Treasury, 73 Mich App 526; 252 NW2d 837 (1977). We find that the statutory definition of purchaser in 26 USC 6323(h)(6) reflects the intent of our Legislature in enacting MCL 211.686; MSA 7.753(56). In so holding, we distinguish factually In re Washington Square Slum Clearance, 5 NY2d 300; 184 NYS2d 585; 157 NE2d 587 (1959), Dreiband v Candler, 166 Mich 49, 51; 131 NW 129 (1911), and Weeks v Wayne Circuit Judges, 73 Mich 256; 41 NW 269 (1889), since those decisions found purchased interests on behalf of the respective attorneys based upon specific agreements to assign a portion of whatever the attorney obtained. The instant facts disclose no such agreement between the appellee and Campbell until May 10, 1979, well after the state filed its lien. We thus find that the trial court erred in its decision granting summary judgment on this basis.
The lower court opinion and order granting appellee’s motion for summary judgment is reversed and the cause remanded for a trial on the merits of the plaintiff’s claim.
Reversed and remanded.
The basis for the plaintiffs argument was the following passage, quoted by the Supreme Court:
"The doctrine of laches cannot be applied against public rights. Thus, while the contrary has been held, by the weight of authority the defense of laches is not available against the government, state or national, in a suit by it to enforce a public right or to protect a public interest, or, as the rule is sometimes expressed, the laches of its officers or agents will not be imputed to the government.
"In some jurisdictions the rule exempting the government from the operation of the doctrine of laches applies in favor of municipal corporations and other governmental agencies when the right sought to be enforced by them is public or governmental in character, but not otherwise; in other jurisdictions laches is pleadable against such corporations and agencies the same as against an individual.”
See e.g., School Dist No 14, Fractional v School Dist No 1, 266 Mich 479; 254 NW 174 (1934), Twp of Sheridan v Twp of Frost, 62 Mich 136; 28 NW 747 (1886), and Board of Supervisors of the County of Kent v Grand Rapids, 61 Mich 144; 27 NW 888 (1886).
We do not dispute the fact that the appellee’s charging lien constitutes a valid basis for their assertion of an interest in the disputed fund. This interest does not, however, rise to the level of a "purchaser” for the purpose of utilizing the statutory exemption in MCL 211.686; MSA 7.753(56). | [
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Per Curiam.
Plaintiff appeals as of right from a lower court order denying her motion to set aside a release and granting defendant’s motion for accelerated judgment based upon that release. We affirm.
Plaintiff alleged that on July 3, 1979, while shopping in one of defendant’s stores, she slipped and fell on the spilled contents of a broken bottle of mayonnaise. Her complaint stated that the fall severely aggravated a previously existing arthritic condition. It further averred that plaintiff herself was free from any negligence.
The release in question was signed on July 16, 1979, after plaintiff had already received medical attention. By its language it purports to release defendant from any and all claims, demands or suits with respect to all personal injury or property damage resulting from the accident. The release was contained on the back of a settlement draft in the amount of $278.80. The lower court concluded that there was no fraud or mutual mistake which would warrant setting the release aside.
In Denton v Utley, 350 Mich 332; 86 NW2d 537 (1957), the Supreme Court stated that, to be sustained as valid, a release must be fairly and knowingly made. When a release is challenged, the plaintiff has the burden to make out a preponderate case for setting it aside. Van Avery v Seiter, 383 Mich 486; 175 NW2d 744 (1970).
In the present case, plaintiff argues that the release was unfair. She alleges: (1) she was contacted by a representative of defendant and induced to execute the release; (2) she was still suffering from the ill effects of the accident and did not know the full extent of her injures; (3) the release was executed a short time after the accident; (4) the release was executed for a nominal sum; and (5) she did not believe that the release would bar her from bringing a future lawsuit.
With regard to the fairness requirement, the Denton Court observed that a release would be invalid if: (1) the releasor was dazed, suffering from shock or under the influence of drugs; (2) there was misrepresentation as to the nature of the instrument; or (3) there was other fraudulent or overreaching conduct. Id., 343. In addition, the Court stated that where fraud or mistake is alleged, the intent of the parties should be considered.
"The intent involved being a question of fact, we will observe, in its determination, among other pertinent factors bearing upon the issue, the haste, or lack thereof, with which the release was obtained, the sum of money involved as consideration, and all the circumstances surrounding the release, including, of course, the conduct and intelligence of both the releasor and the releasee.” Id., 345.
An additional factor to be considered is the actual presence of an issue of liability. Van Avery, supra, 489-490.
Plaintiff failed to sustain her burden of proof below in attacking the release. Initially, we note that plaintiff has not alleged sufficient facts to show that the release was not entered into fairly. For example, plaintiff alleges that she was induced by defendant’s representative to sign the release while she was still suffering from the ill effects of the accident. These allegations, without other facts to substantiate them, are insufficient to establish that the release was not executed in a fair and knowing manner. There is no indication that plaintiff was dazed, in shock or otherwise not possessing full mental faculties. Plaintiff does not allege that defendant’s representative misrepresented the nature of the release. Although the release was executed 13 days after the accident and for $278.80, the facts alleged do not point to fraud or overreaching by the defendant.
Plaintiff did allege that she did not think that the release would bar a future lawsuit and that it was only in return for reimbursement for her out-of-pocket expenses up to that time. However, the fact that plaintiff might not have understood the full legal import of the release does not abrogate it. Schmalzriedt v Titsworth, 305 Mich 109, 118-120; 9 NW2d 24 (1943), Malone v SCM Corp, 63 Mich App 11, 14; 233 NW2d 872 (1975). Further, defendant’s liability is not clearly indicated. This fact tends to mitigate plaintiffs claim that the release was unfair or intended to be limited in scope. Taking all of the facts plaintiff has alleged into consideration, plaintiff has failed to establish that the release was invalid.
There being no error, we conclude that the trial court properly denied plaintiffs motion to set the release aside and granted accelerated judgment.
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Per Curiam.
Defendant was charged with armed robbery and tried by a jury in August, 1979. When the jury was unable to reach a verdict, a mistrial was declared and a second trial was held in November, 1979. On November 15, the second day of trial, the prosecutor moved to add Ernest Doster, the owner of the stolen car used in the robbery, to the information as a witness. Despite objections by defense counsel, the trial court allowed the witness to be added.
The jury returned a verdict of guilty as charged, and on December 7, 1979, defendant was sentenced to from 4 to 20 years in prison. He appeals of right claiming that the trial court erred by adding Doster, a non-res gestae witness, to the witness list, thus allowing Doster to testify about another crime with which defendant was not charged.
Complainant had just stepped out of her car in the Emerald Isle Pub parking lot in Detroit when another car pulled up and a man alleged to be defendant’s accomplice got out of the passenger side and robbed complainant of her purse, using a handgun. Shortly thereafter, complainant attracted the attention of an on-duty police officer, who radioed a description of the car and the assailant to other officers in the area. Two officers in an unmarked police car noticed the car used in the robbery and pursued it. They lost sight of it momentarily when it pulled into an alley, and when they saw it again it was stopped, both front doors were open, and two men were running down the alley. The police circled the block and arrested defendant as he emerged from between two houses. The officers testified that they found complainant’s wallet in defendant’s coat and complainant’s purse and a handgun between the houses near the tracks which defendant left in the snow.
Ernest Doster, owner of the automobile, testified during trial that it had been stolen from in front of his home some time prior to 11:30 p.m. on the night of the robbery. The trial court then instructed the jury that this evidence was to be considered only for the purpose of showing that whoever was using the automobile was acting purposefully and that his actions were not the result of accident, mistake, or misjudgment. Defendant argues on appeal that this evidence should have been excluded under the prior bad acts exclusionary rule on the ground that whatever probative value the evidence contained was outweighed by the prejudicial effect it would have upon the jury’s view of defendant. We disagree.
The rule regarding the admissibility in evidence of prior bad acts is summarized in People v Berry, 101 Mich App 399, 403-404; 300 NW2d 575 (1980):
"The admissibility of evidence of a defendant’s other bad acts should be carefully considered by the trial court because of the great potential that its probative value is outweighed by the likelihood that it will prejudice the jury against the defendant. People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976).
"This Court in People v Wilkins, 82 Mich App 260, 267-268; 266 NW2d 781 (1978), lv den 406 Mich 857 (1979), rev’d on other grounds 408 Mich 69; 288 NW2d 583 (1980), stated that three requirements must be met before evidence of prior bad acts may be admitted:
"(1) There must be substantial evidence that the defendant actually perpetrated the bad act sought to be introduced.
"(2) There must be a showing that the 'facts’, or circumstances of the other bad acts are probative of the defendant’s motive, intent, absence of mistake or accident, scheme, plan, or system in committing the charged offense.
"(3) Defendant’s motive, intent, absence of mistake or accident, scheme, plan, or system must be material to the determination of defendant’s guilt of the charged offense.
"The general rule is that evidence of other bad acts may be introduced only when the matter which they tend to prove is disputed. Wilkins, supra, 268.”
The three requirements set forth in Wilkins, supra, have been met in the instant case. There was substantial evidence that defendant participated in the theft of the automobile. The police testimony indicated that defendant was apprehended late at night, shortly after the armed robbery, in possession of the victim’s wallet and purse, in the vicinity of the stolen automobile, and in the location where one of the persons in the automobile had fled. The jury justifiably could have concluded from this evidence that defendant was in the automobile. It is a well-established principle that possession of recently stolen property permits an inference that the possessor committed the theft. People v Bradley, 54 Mich App 89, 93; 220 NW2d 305 (1974), People v Helcher, 14 Mich App 386, 388; 165 NW2d 669 (1968).
The use of a stolen automobile in an armed robbery generally is considered to be indicative of motive, intent, absence of mistake or accident, scheme, plan, or system of committing the charged offense. It significantly minimizes the chances of being apprehended by the police.
Moreover, the evidence of the car’s theft was admissible as part of the res gestae of the crime. People v Castillo, 82 Mich App 476, 479; 266 NW2d 460 (1978), 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.)
" ’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.’ ”
See also People v Cramer, 97 Mich App 148, 156, 158; 293 NW2d 744 (1980).
The trial court did not err by allowing admission of evidence pertaining to the theft of the automobile.
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Per Curiam.
Plaintiff, City of Pontiac, requested that defendant, Consumers Power Company, remove and relocate two electric power lines it maintained on the west side of Johnson Avenue in the City of Pontiac to the east side of Johnson Avenue. The reason for this request was the beginning of construction and renovation of plaintiffs Pontiac General Hospital. The city asserted that the continued presence of the lines in their site abutting the present Pontiac General Hospital would pose a safety hazard to construction equipment and personnel on the construction site.
Pursuant to the plaintiffs motion, the circuit court issued a preliminary mandatory injunction which ordered the defendant to relocate its lines to the east side of the street. The Court of Appeals vacated the order for the preliminary mandatory injunction (Docket No. 99367, order of April 12, 1979), subject to the provision that the injunction could be reinstated if the plaintiff city advanced the defendant the cost of relocation. Prior to the time when the Court of Appeals vacated the injunction, the defendant had commenced relocating its lines in order to be able to comply with the terms of the preliminary mandatory injunction. The defendant completed the relocation despite the vacation of the injunction. Defendant counterclaimed for the cost of relocating the poles and lines. The trial court recognized the defendant’s property interest in the location of the transmission lines but found that public necessity required relocation of the lines, and so the defendant was required to bear the cost of relocation, stipulated to be about $66,886.17. The trial court disregarded the proprietary/governmental function distinction because it found that the possibility of danger to the public from the construction equipment coming into contact with the power lines caused the city’s request for the relocation to be an exercise of the city’s police power.
The Michigan Supreme Court has declined to decide whether a public utility’s equipment relocation can be required without compensation by governmental authority in Detroit Board of Education v Michigan Bell Telephone Co, 51 Mich App 488; 215 NW2d 704 (1974), aff'd 395 Mich 1; 232 NW2d 633 (1975). In doing so, the Supreme Court let stand the Court of Appeals decision requiring a school board to compensate a utility for relocation of its utility equipment to accommodate a school district’s building expansion program. The school board proposed to vacate certain plats and an alley in order to construct additions to a school. The utility asserted that it was entitled to retain an easement in the property or be compensated for the cost of relocation. The Supreme Court decided that, because the school board was not empowered by the Legislature in the School Code, MCL 340.192; MSA 15.3192, to order relocation, it was unnecessary for the Court to decide "whether relocation without compensation can be required by a governmental authority in any circumstances * * 395 Mich 1, 5.
The Court of Appeals decision in Michigan Bell focused on the fact that the vested property right of the utility was not only being infringed upon but was being taken by the school board’s actions.
In the instant case, defendants are not being required to give up the utility easement but, rather, are being asked to relocate the easement because of the hospital construction.
The franchise contract between the defendant utility and plaintiff municipality provides that the city, through its governing body, retains the right to specify "the designation and location of all lines of poles and wires”. 1905 PA 264. The city has exercised that right in originally directing the power company, defendant’s predecessor, to locate the transmission lines on the west side of Johnson Avenue. Nothing in the act suggests that the city has the right thereafter to direct the relocation of poles and wires and to place the burden of relocation costs on the utility.
McQuillin, Municipal Corporations, § 34.74(a), 184 states the general principle in utility relocation cases. Relocation costs must be borne by the utility if necessitated by the city’s discharge of a governmental function, whereas the expenses must be borne by the city if necessitated by its discharge of a proprietary function. Whether the utility has located its transmission facilities by virtue of an easement, franchise, plat, or other grant is irrelevant; all are treated identically.
Detroit Edison Co v Detroit, 332 Mich 348; 51 NW2d 245 (1952), involved the relocation of an electric transmission line necessitated by the construction of a city sewer system, a function then, as now, held to be governmental in nature. The Court in that case held that the relocation costs must be borne by the utility company. The Michigan Supreme Court in Parker v Highland Park, 404 Mich 183; 273 NW2d 413 (1978), held that the day-to-day operation of a municipal hospital is a proprietary function within the meaning of the governmental tort liability act. The Court held that the day-to-day operation of a public hospital is not a governmental function because the activity is not of such a peculiar nature that it can only be done by government. It logically follows that, although construction of a public hospital facility is not a "day-to-day” activity of a public hospital, it is vital to the operation of such hospital. The hospital operation necessarily requires a physical facility. Because the construction of buildings is necessary to the operation of the hospital, we do not see how the building construction and renovation can be treated other than as a part of the ongoing process of the hospital’s operation.
It is the plaintiff city’s construction activities, pursuant to its proprietary function of operating the Pontiac General Hospital, which made the relocation of the utility lines necessary. If a private hospital had engaged in the same construction and had required the relocation of the lines, there would have been no question that the hospital would have had to shoulder the cost of moving the utility lines.
We find that the rule of Parker, supra, applies to the present case in the determination of whether this plaintiff is engaged in a governmental or proprietary function in undertaking construction in its public hospital. Here, it is equitable that the governmental entity which is operating in a proprietary function should be required to bear the cost of utility service relocation which is made necessary because of its activities.
We remand for a determination of the amount of the costs of relocation.
Reversed and remanded. No costs, a public question. | [
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R. M. Maher, J.
Defendant was convicted, following a jury trial, of possession of marijuana with intent to deliver. MCL 335.341(l)(c); MSA 18.1070(41)(l)(c). He was sentenced to three years probation, the first five months to be spent in the county jail, and now appeals by right.
Before trial defendant contested the validity of a search and the resulting seizure of about five pounds of marijuana and assorted paraphernalia. At the suppression hearing Schoolcraft County Friend of the Court John Carstensen testified that on August 17, 1978, he obtained a bench warrant for the arrest of one Austin John Diller. The warrant was based on Diller’s failure to appear on an order to show cause regarding his failure to pay child support. Carstensen testified that he turned the warrant over to the sheriffs department that same day and that he included Diller’s official address of Gulliver, Michigan. He also told the sheriffs department that there was information indicating that Diller could be found at an upstairs apartment at 220 Elk Street in Manistique, Michigan. This information had come from Gary Dem-ers, a social worker with the Department of Social Services, who testified that he had noticed Diller leaving the Elk Street address on two occasions at around 5:30 or 5:45 in the evening. Demers also testified that he did not know if Diller lived at the Elk Street address. Demers relayed this information to Carstensen, who relayed it to the sheriffs department along with the warrant.
The parties stipulated to the admission of the preliminary examination testimony at the suppression hearing. At the preliminary examination Deputy Robert Fisk testified that on the evening of August 19, 1978, he and his partner, Deputy Gerald Jack, proceeded to the Elk Street address in order to attempt to arrest Diller. Fisk testified that an index card and a piece of paper attached to the warrant indicated that Diller might be found at the Elk Street address. Upon arriving, Fisk ascended the stairs to the entrance of the second floor apartment while Jack headed around back to cover any rear exits. Fisk testified that he heard two male voices and music playing. After knocking on the door, calling Diller’s name, identifying himself as a police officer, and indicating that he had a warrant for Diller’s arrest, Fisk heard his partner call out that someone was attempting to leave through a rear window. Fisk then tried to open the door, which was unlocked but held in place by a night chain. While Fisk was pounding on the door to break the chain the defendant appeared at the door and unfastened the chain. Fisk knew Diller on sight and asked defendant where Diller was. When defendant stated that Diller was not there, Fisk proceeded to conduct a search of the apartment in order to locate Diller. Deputy Jack arrived inside the apartment and identified the defendant as the person he had seen trying to open the rear window. No one other than the defendant was found in the apartment. While Fisk was conducting his search, he observed the items seized laying on a bench in a bedroom believed to be defendant’s.
Pursuant to the observations made by Fisk, two seárch warrants were obtained and the marijuana and paraphernalia were seized. While the warrants were being sought, David Neville and his partner from the Manistique police department were stationed inside the apartment. Officer Ne-ville testified that while he was in the apartment Diller walked in and was arrested.
From the testimony introduced at the trial, it appears that the apartment in question was rented to a Christine Beahn, who in turn had sublet a room to the defendant. Beahn was Diller’s fiancee, so that he often spent time at the apartment.
Because the search warrants were issued on the basis of Fisk’s observations, the question is whether Fisk was legally in the apartment at the time he observed the marijuana and paraphernalia. The entry would appear to be supported by MCL 764.21; MSA 28.880, which provides:
"To make an arrest, a private person, if the offense be a felony committed in his presence, or a peace officer with a warrant or in cases of felony when authorized without a warrant, may break open an inner or outer door of any building in which the person to be arrested is or is reasonably believed to be if, after he has announced his purpose, he is refused admittance.”
Defendant first argues, however, that the statute is unconstitutional as applied to the instant case insofar as it purports to dispense with the need for a search warrant (or the showing of circumstances amounting to a traditional exception to the search warrant requirement) as a prerequisite to the search of a third party’s home in the attempt to apprehend a person named in a valid arrest warrant. Const 1963, art 1, § 11, US Const, Am IV, Am XIV.
This issue has engendered much recent case law. The United States Supreme Court began by deciding a similar issue in Payton v New York, 445 US 573; 100 S Ct 1371; 63 L Ed 2d 639 (1980). In the two separate cases consolidated under that title, police had entered the homes of two different suspects in order to make routine felony arrests without any sort of warrant. The defendants sought to suppress evidence which had been seized during the arrests, but suppression was denied on the basis of a New York statute similar to the Michigan statute quoted above. Based on extensive analysis of the common-law antecedents to the Fourth Amendment, and the positions of the various states and federal circuits on the issue of arrests in the home, the Court held that "the Fourth Amendment to the United States Constitution, made applicable to the States by the Fourteenth Amendment * * * prohibits the police from making a warrantless and nonconsensual entry into a suspect’s home in order to make a routine felony arrest”. Payton, supra, 576. The Court also held that in cases such as those before it, where the home to be entered is the suspect’s home, only an arrest warrant was necessary.
"It is true that an arrest warrant requirement may afford less protection than a search warrant requirement, but it will suffice to interpose the magistrate’s determination of probable cause between the zealous officer and the citizen. If there is sufficient evidence of a citizen’s participation in a felony to persuade a judicial officer that his arrest is justified, it is constitutionally reasonable to require him to open his doors to the officers of the law. Thus, for Fourth Amendment purposes, an arrest warrant founded on probable cause implicitly carries with it the limited authority to enter a dwelling in which the suspect lives when there is reason to believe the suspect is within.” Payton, supra, 602-603. (Emphasis added.)
The Court was careful to point out that Payton did not "raise any question concerning the authority of the police, without either a search or arrest warrant, to enter a third party’s home to arrest a suspect”. Payton, supra, 583. Accordingly, the Court left open the question of the legality of an entry into a third party’s home, and more precisely the question of whether a search warrant is needed for such an entry. Much of the Court’s analysis in Payton nevertheless pointed to the ultimate resolution of these remaining questions. The Court in Payton quickly determined that "[t]he simple language of the [Fourth] Amendment applies equally to seizures of persons and to seizures of property” and that the "analysis in this case may therefore properly commence with rules that have been well established in Fourth Amendment litigation involving tangible items”. Payton, supra, 585. Turning to those cases, the Court reiterated that the "physical entry of the home is the chief evil against which the wording of the Fourth Amendment is directed”, Payton, supra, 585, quoting United States v United States District Court, 407 US 297, 313; 92 S Ct 2125; 32 L Ed 2d 752 (1972), and that "[i]t is a 'basic principle of Fourth Amendment law’ that searches and seizures inside a home without a warrant are presumptively unreasonable”. Payton, supra, 586. (Footnote omitted.) The Court then concluded this section of its analysis by stating: ''In terms that apply equally to seizures of property and to seizures of persons, the Fourth Amendment has drawn a firm line at the entrance to the house. Absent exigent circumstances, that threshold may not reasonably be crossed without a warrant.” Payton, supra, 590. These Fourth Amendment interests could be protected by an arrest warrant in a case where the suspect’s own home was to be searched since the arrest warrant reflects a determination sufficient to invade that person’s reasonable expectations of privacy. An arrest warrant in no way considers the privacy interests a third party has in his or her own home, however, so that it was reasonable to conclude that if a warrant of some sort was needed before any home could be searched for a suspect, a search warrant, or some exception, would be needed when that home belonged to a third party.
Subsequent to the decision in Payton, two cases decided by the federal circuit courts of appeal answered the questions left open in Payton by indicating that a search warrant, or an exception, was required for the search of a third party’s home. At issue in Wallace v King, 626 F2d 1157 (CA 4, 1980), was the legality of searches conducted at the homes of two separate couples without a search warrant. The goal of these searches was the arrest of a woman named in a valid arrest warrant who was being sought for her refusal to obey a court order in a child custody matter. The police had information indicating that the woman might be found at the homes of the two couples. The homes were searched solely on the basis of the arrest warrant and the information indicating that the woman might be present on the premises searched. After recognizing that Payton had laid the groundwork for its decision, the Court held:
"Reasonable or probable cause to believe that a person for whom an arrest warrant has been issued is on the premises, standing alone, is not sufficient. Although Payton held that an arrest warrant requires that a suspect 'open his doors to the officers of the law,’ that holding was specifically limited to the 'dwelling in which the suspect lives.’ 445 US at 603; 100 S Ct at 1388. An arrest warrant indicates only that there is probable cause to believe the suspect committed a crime; it affords no basis to believe that the suspect is in a stranger’s house.” Wallace, supra, 1161.
In United States v Adams, 621 F2d 41 (CA 1, 1980), federal agents and local police searched the defendant’s home looking for an escaped prisoner whom they had reasonable cause to believe was staying with the defendant. No warrant of any sort was obtained. The trial court suppressed evidence of the fugitive’s arrest in the defendant’s home at the defendant’s trial for harboring a fugitive and the first circuit affirmed on appeal. Although the court specifically declined to decide what sort of warrant was required since no warrant at all hád been obtained, Adams, supra, 44, fn 7, the court did hold that the search could be upheld only if there were exigent circumstances. Because the presence of exigent circumstances, coupled with probable cause (which existed in Adams) constitutes a recognized exception to the requirement of a search warrant, the court’s holding supported the view that either a search warrant or a recognized exception to the requirement of such a warrant is needed.
After submission of the instant case the United States Supreme Court resolved the questions left open in Payton in a manner consistent with the decisions in Wallace and Adams. In Steagald v United States, — US —, —; 101 S Ct 1642; 68 L Ed 2d 38 (1981), agents of the Drug Enforcement Administration received information indicating that Ricky Lyons, the subject of an outstanding arrest warrant, could be found at a home in the Atlanta, Georgia, area. Three people lived at this home, including Gary Steagald, and all three were present when 12 law enforcement officers arrived with the arrest warrant looking for Lyons. The home was searched and, while Lyons was not found, a substance thought to be cocaine was. Based on the officers’ observations, a search warrant was obtained and 43 pounds of cocaine were discovered,. Steagald was arrested and indicted on federal drug charges. His motion to suppress the evidence was denied and he was convicted on the charges.
The Supreme Court began by stating "[t]he issue in this case is whether, under the Fourth Amendment, a law enforcement officer may legally search for the subject of an arrest warrant in the home of a third party without first obtaining a search warrant”. Steagald, supra, 68 L Ed 2d 38, 41. In analyzing this issue, the Court began by reiterating Payton’s holding that a warrant is needed before entering a home to search for either property or persons. Steagald, supra. The Court then distinguished the interests protected by an arrest and a search warrant, noting that the arrest warrant for Lyons did nothing to protect Steagald’s interests in the privacy of his home. The Court resolved the stated issue by concluding that, absent exigent circumstances or consent, a search warrant is needed before the home of a third party may be searched for a suspect named in an arrest warrant.
In the instant case neither consent nor exigent circumstances were demonstrated. Although it is true that the defendant opened the door to the apartment before Deputy Fisk broke it open, the circumstances do not support a finding that defendant, or anyone else, consented to a search of the premises. The prosecution suggests that the apparent attempt of someone to escape out a back window gave rise to exigent circumstances justifying the warrantless search. While it is true that an attempted escape by the accused may give rise to exigent circumstances, People v Strelow, 96 Mich App 182, 189; 292 NW2d 517 (1980), People v Harris, 95 Mich App 507, 510; 291 NW2d 97 (1980), the argument is misplaced under the circumstances of this case. The rationale underlying the exigent circumstances exception is that "when the police have the probable cause necessary to secure a warrant, but circumstances make it impossible for them to obtain the warrant in time, then it is 'reasonable’ under the Fourth Amendment to conduct a search * * People v Dugan, 102 Mich App 497, 503; 302 NW2d 209 (1980). In the instant case the warrant for Diller’s arrest had been issued two days prior to the search, and since at least the date of its issuance the authorities suspected that Diller might be found at the Elk Street apartment. Accordingly, there was more than sufficient time in which to attempt to secure a search warrant, and the failure to do so cannot be justified on the basis of exigency.
Because there was no search warrant and no circumstances supporting an exception to the requirement of such a warrant, the search was illegal and the trial court’s refusal to suppress the evidence seized pursuant to observátions made during the search was clearly erroneous. The evidence should have been suppressed. Because of our disposition of this case, we do not need to address defendant’s alternative argument concerning the legality of the search.
Reversed.
The statute has since been repealed. Now see MCL 333.7401(2)(c); MSA 14.15(7401)(2)(c).
In People v Talley, 410 Mich 378; 301 NW2d 809 (1981), the Supreme Court specifically disapproved of the practice of relying exclusively on preliminary examination transcripts to decide suppression motions. The suppression hearing in the instant case was held well before the date that Talley was decided, and we note that the trial court did not "exclusively” rely on the transcripts of the examination in deciding the motion.
At defendant’s trial Diller testified that he had been in the apartment, but that he had managed to leave by way of a side window.
The prosecution conceded that the second of these warrants was defective.
On appeal, the prosecution does not argue that the apartment was Diller’s home, but rather addresses the issue in terms of an entry into a third party’s home.
Prior to the Supreme Court’s decision in Payton the circuits were split on the question of whether a search warrant was needed before the police could legally search -the home of a third party for a suspect named in an arrest warrant. See, e.g., Government of the Virgin Islands v Gereau, 502 F2d 914, 928-930 (CA 3, 1974), cert den 420 US 909; 95 S Ct 829; 42 L Ed 2d 839 (1975) (search warrant required), United States v Cravero, 545 F2d 406, 420-421 (CA 5, 1976), cert den 429 US 1100; 97 S Ct 1123; 51 L Ed 2d 549 (1977) (arrest warrant alone sufficient).
See, also, Gereau, supra, note 6, 928. | [
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Per Curiam.
Plaintiff, James Lumber Company, Inc. (hereinafter James Lumber), furnished materials to defendant J & S Construction, Inc. (hereinafter J & S), which were used in several Michigan construction projects. On September 1, 1976, plaintiff initiated this action pursuant to the Michigan building contract fund act, MCL 570.151 et seq.; MSA 26.331 et seq., against defendant J & S and defendant Steve Serges as a director of defendant J & S. On March 15, 1977, default judgment was entered against defendant J & S only in the amount of $19,832.19. Defendant J & S is insolvent. The present action proceeded to trial on December 13, 1977, against defendant Serges only. The trial without jury was held in Genesee County Circuit Court. On April 4, 1978, the trial court entered its findings of fact and conclusions of law granting judgment in favor of plaintiff against defendant Serges in the amount of $14,100. Defendant Serges then moved for a judgment notwithstanding the verdict. On November 29, 1978, the trial court granted Serges’ motion and vacated the judgment against him. Plaintiff appeals as of right.
The trial court made the following findings of fact. Defendant Serges was a director of J & S. James Lumber was owed $15,729.53 by J & S for materials furnished on several projects. J & S was paid at least $14,000 on these projects. In its initial opinion, issued April 4, 1978, the trial court held that defendant Serges had the burden of proof on the issue of whether the money which J & S received on the projects was properly paid over to the laborers, subcontractors, and material-men and that defendant Serges had not met this burden. The trial court’s opinion granting defendant Serges’ motion for a judgment notwithstanding the verdict indicated that it was not found that defendant Serges personally received or misapplied the money received or that he knew or approved, of any conversion of this money. The trial court concluded that the director of a construction company could not be held personally liable under MCL 570.151 et seq.; MSA 26.331 et seq., without proof of knowledge or approval of the misuse of the money received by the construction company.
This issue is one of first impression in Michigan. We agree with the trial court that the plaintiff in this case has the burden of proof with regard to his claim that defendant Serges, director of J & S, should be held liable under the Michigan building contract fund act and that plaintiff has not met this burden. The purpose of MCL 570.151 et seq.; MSA 26.331 et seq. (hereinafter the act), is to create a trust fund for the benefit of materialmen and others under private construction contracts. The act provides a civil remedy as well as a criminal penalty. National Bank of Detroit v Eames & Brown, Inc, 396 Mich 611, 621-622; 242 NW2d 412 (1976), B F Farnell Co v Monahan, 377 Mich 552; 141 NW2d 58 (1966). If the money received by the contractor in fact was used to pay laborers, subcontractors, or materialmen on the specific job in question, the purpose of the act is carried out and no remedies under the act, civil or criminal, are available to the other, unpaid laborers, subcontractors, or materialmen. National Bank of Detroit, supra, 622.
Although plaintiff was able to produce during trial the J & S articles of incorporation (showing defendant Serges as a director) and several can-celled checks signed or co-signed by defendant Serges payable to defendant Serges or to cash drawn on the J & S corporate account, plaintiff was unable to produce J & S’s corporate records. Plaintiff argues in its brief on appeal that because it was shown that J & S was paid at least $14,100 on the projects in question and defendant Serges failed to show how these funds were disbursed, it must be presumed that the projects showed a profit. Plaintiff further argues that presuming J & S made a profit on these projects, J & S and defendant Serges must have violated the act since plaintiff was not paid. However, this Court and the trial court may not presume, without proof, that the projects showed a profit:
" 'Year after year, surveys by Robert Morris Associates show that the contractor is number one on the list of loan losses by industry.” Id., 624, quoting Rogers, The Contractor — Analysis From a Credit Standpoint, J Commercial Bank Lending 19 (Feb, 1975).
Under the proofs presented during trial by plaintiff, it is possible that J & S used all money received on these projects to pay other laborers, subcontractors, and/or materialmen, that J & S did not make a profit on these projects, and that no violation of the act occurred. Plaintiff asks this Court to engage in a presumption of a violation of the act which a defendant contractor must overcome. This we will not do. The burden of proof is on plaintiff to make out his case. Kar v Hogan, 399 Mich 529, 539; 251 NW2d 77 (1976), A & A Asphalt Paving Co v Pontiac Speedway, Inc, 363 Mich 634, 638; 110 NW2d 601 (1961). Here, as in A & A Asphalt Paving, the mere making of allegations by the plaintiff, without producing evidence to support those allegations, is insufficient to make out plaintiff’s case. The trial court’s judgment notwithstanding the verdict, and the order vacating the judgment against defendant Serges was proper.
Affirmed.
Interestingly, the lower court record indicates no attempt to have a subpoena issued to defendant Serges to produce the corporate records. | [
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V. J. Brennan, J.
Defendant Blue Cross and Blue Shield of Michigan appeals from a nonjury trial on stipulated facts and exhibits. Following trial, defendant was permanently enjoined from enforcing a substitute participation agreement as to outpatient psychotherapy clinics involved in the action.
The facts which give rise to this dispute can be summarized as follows. Since 1966, defendant has offered its subscribers outpatient psychiatric benefits. This has led to increased demand for treatment and a concomitant increase in the number of outpatient psychotherapy clinics. In order for outpatient psychotherapy clinics to be eligible for reimbursement for services rendered to patients insured by defendant Blue Cross and Blue Shield, these clinics must be approved by Blue Cross and Blue Shield. Plaintiffs Midwest Mental Health Clinic and the member clinics of Michigan Association of Psychotherapy Clinics were such approved clinics.
Originally, defendant reimbursed psychiatrists, psychologists, social workers and other professionals at an average rate of $40 per treatment session. On February 23, 1979, Blue Cross and Blue Shield notified its participating clinics of modifications to its reimbursement policy to take effect May 1, 1979. This modification was to be effected by invoking a 60-day termination at will provision in defendant’s participation agreements with the 98 clinics, and by offering the clinics new participation agreements. Under the new agreements, the single rate structure would be replaced by a differential rate structure. Reimbursement would continue until December 31, 1979, for treatment begun before February 26, 1979.
On appeal defendant raises six issues. The first issue is one of jurisdiction.
At the end of trial, the court permanently enjoined Blue Cross and Blue Shield from enforcing the May 1, 1979, modifications to the OPC Program Agreement and ordered the participation agreement in effect through April, 1979, continued until further order of the court. The trial judge reasoned as follows:
"The contracts before and after May 1st are not insurance contracts, but are merely arrangements for the purchase of services to perfect cost savings and are subject to the strictures of the Sherman Act. The May 1st contract will effectively 'fix prices and restrain trade’ in violation of the Sherman Act and is within the jurisdiction of this Court for the purposes of enjoining such unlawful action upon the part of the Defendant.”
Defendant-appellant Blue Cross and Blue Shield argues that the trial court’s ruling constitutes fundamental error with respect to the circuit court’s subject matter jurisdiction as well as an erroneous application of an antitrust "price fixing” proscription. Appellant contends that state courts lack subject matter jurisdiction over a cause of action based on Federal antitrust laws and that exclusive jurisdiction is in the Federal courts. They further contend that lack of subject matter jurisdiction cannot be waived or avoided by stipulation of the parties.
Plaintiffs Midwest and Michigan Association of Psychotherapy Clinics do not dispute that an antitrust action must be brought in the Federal courts. They argue, however, that they have neither based their action upon nor sought relief under Federal antitrust laws. Rather, they argue that the complaint sounded on the unconscionability of a contract term in violation of state statutes and that under these circumstances, the courts of Michigan do have jurisdiction over original actions based on state law where a violation of Federal antitrust law is raised collaterally.
Actions to restrain violations of Federal antitrust law must be brought in Federal court. General Investment Co v Lakeshore & M S R Co, 260 US 261; 43 S Ct 106; 67 L Ed 244 (1922), Barnes v Dairymen’s League Co-op Ass’n, Inc, 220 App Div 624; 222 NYS 294 (1927). Moreover, subject matter jurisdiction may not be conferred by stipulation of the parties. Shane v Hackney, 341 Mich 91, 98; 67 NW2d 256 (1954), Eggermont v City of Clawson, 88 Mich App 246, 248; 276 NW2d 574 (1979).
In some cases, however, defendants have been allowed to raise Federal antitrust defenses to contract actions in state courts. See General Analine & Film Corp v Bayer Co, 305 NY 479; 113 NE2d 844 (1953), Vendo Co v Stoner, 105 Ill App 2d 261; 245 NE2d 263 (1969), Lyons v Westinghouse Electric Corp, 222 F2d 184 (CA 2, 1955).
In Lyons, supra, Westinghouse brought a breach of contract action in state court in which Lyons had raised a violation of Federal antitrust law as an affirmative defense. Lyons then brought an action in Federal court based on alleged Federal antitrust violations. One of the issues thus confronting the Federal court was whether the state court had jurisdiction to entertain the Federal antitrust claims. The court held that while the state court’s findings were not res judicata in the Federal courts, the state court could in fact adjudicate Federal antitrust claims raised collaterally to settle the other issues raised:
"Nor is there anything inconsistent with this in allowing violations of the Acts to be raised as valid defenses to actions brought in state courts * * * if it involves a partial enforcement of an undertaking itself forbidden.” 222 F2d 184, 190.
Two state courts have directly upheld the state court’s application of Federal antitrust laws in fairly adjudicating a contract action before it. In Vendo, supra, the action was for breach of contract, and Federal antitrust violation was alleged as a defense. The court held that the mere fact that a defense is predicated on Federal statute does not, by itself, deprive the state court of jurisdiction to hear and pass upon the defense. A similar result was forthcoming in General Analine & Film Corp, supra, wherein defendant raised violations of Federal antitrust laws as a defense in an action for breach of contract.
In Overseas Motors, Inc v Import Motors Ltd, Inc, 375 F Supp 499 (ED Mich, 1974), aff’d 519 F2d 119 (CA 6, 1975), the court dealt with an appeal from a Swiss Court of Arbitration. In addressing whether the findings of the Court of Arbitration constituted res judicata, Judge Feikens of the district court addressed the antitrust and contract issues as follows:
"Claims arising under the antitrust laws are within the exclusive jurisdiction of the federal courts. They are not subject to arbitration and no res judicata qua claim preclusion could be based on any such proceeding. As this court has previously determined, the questions submitted to the Zurich court of arbitration were not in the nature of antitrust claims. That cause of action was bottomed on contract, and in the absence of allegations that the contract itself was intrinsically violative of the antitrust laws, such actions are not preempted by this court’s exclusive authority over them. Conversely, an adverse judgment in that case is no bar to maintenance of antitrust claims arising out of the same transactions. (Citations deleted.) 375 F Supp 499, 518.
As in Lyons, Vendo and General Analine, the instant case was not premised on a charge of violation of Federal antitrust laws. The complaint was grounded on breach of contract, unconscionability of contract, interference with the practice of medicine, equitable estoppel, tortious interference with advantageous business relationships and restraint of trade and/or price fixing under Michigan antitrust laws. Since the cause of action was bottomed on contract and there were no allegations that the contract itself was intrinsically violative of antitrust laws, we find the judge’s ruling was not preempted by the Federal court’s exclusive jurisdiction over antitrust actions. Overseas Motors, Inc, supra. The mere fact that the antitrust violation raised by the judge is predicated on the Federal statute did not deprive the state court of jurisdiction to hear and pass upon it.
Defendant’s next argument is inextricably related to its first: that is, that the trial court erred by holding that the participation agreements to take effect May 1, 1979, would fix prices and restrain trade in violation of Federal antitrust law.
GCR 1963, 517.1 requires the trial court to find the facts specially and state separately its conclusions thereon. Since clear and complete findings are essential to this Court for the exercise of its appellate function, failure to comply with the rule can result in reversal regardless of whether the issue is raised by the parties. Nicpon v Nicpon, 9 Mich App 373; 157 NW2d 464 (1968). The mere statement of the court’s ultimate findings and conclusory language are not sufficient to comply with the rule. As our Supreme Court succinctly stated in Ray v Mason County Drain Comm’r, 393 Mich 294, 302; 224 NW2d 883 (1975):
"What is required under GCR 1963, 517 will vary somewhat with the type of case and the nature of the fact questions involved, but at the very least GCR 1963, 517 demands that the court’s findings be sufficiently detailed to give an indication of the factual basis for the judge’s conclusion. Honigman & Hawkins, respected commentators on Michigan laws of procedure, making the following observations with regard to the requirements of GCR 1963, 517:
" 'The findings of fact must include as much of the subsidiary facts as is necessary to disclose the steps by which the trial court reached its ultimate conclusion on each factual issue. The findings should be made at a level of specificity which will disclose to the reviewing court the choices made as between competing factual premises at the critical point that controls the ultimate conclusion of fact. That is, at the point where a given choice as to the concrete facts leads inevitably to the ultimate conclusion, the findings should disclose the choice which was made, so that the appellate court may test the validity of its evidentiary support.’ 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 594.”
In the instant case the court merely said that the contract would "fix prices and restrain trade”. What this Court needs to know is how the contract would fix prices and restrain trade. The trial court also made no findings as to whether these contracts involved interstate commerce, a necessary element for making out a cause of action under the Sherman Antitrust Act. See 15 USC 1.
In concluding that implementation of the modified participation agreements would fix prices and restrain trade the trial court relied on Group Life & Health Ins Co v Royal Drug Co, 440 US 205; 99 S Ct 1067; 59 L Ed 2d 261 (1979).
In Royal Drug, 18 owners of independent pharmacies in San Antonio, Texas, brought an antitrust action in a Federal district court against the defendants, Group Life and Health Insurance Co, known as Blue Shield of Texas (Blue Shield), and three pharmacies also doing business in San Antonio. The complaint alleged that the defendants had violated § 1 of the Sherman Act, 15 USC 1 et seq., by entering agreements to fix the retail prices of drugs and pharmaceuticals, and that the activities of the petitioners had caused Blue Shield’s policyholders not to deal with certain of the plaintiffs, thereby constituting an unlawful group boycott.
The facts which gave rise to that case can be summarized as follows. Blue Shield offered insurance policies which entitled policyholders to obtain prescription drugs. If the insured selected a pharmacy which had entered into a "Pharmacy Agreement” with Blue Shield, and was therefore a participating pharmacy, the insured was required to pay only $2 for every prescription drug. If, on the other hand, the insured selected a pharmacy which had not entered into a Pharmacy Agreement, and was therefore a nonparticipating pharmacy, he was required to pay the full price charged by the pharmacy. The insured could then obtain reimbursement from Blue Shield for 75% of the difference between that price and $2.
Blue Shield offered to enter into a Pharmacy Agreement with each licensed pharmacy in Texas. Under the Agreement, a participating pharmacy agreed to furnish prescription drugs to Blue Shield’s policyholders at $2 for each prescription, and Blue Shield agreed to reimburse the pharmacy for the pharmacy’s cost of acquiring the amount of the drug prescribed. Thus, only pharmacies that could afford to distribute prescription drugs for less than the $2 markup could profitably participate in the plan.
The trial court granted summary judgment to the defendants on the ground that the challenged agreements were exempt from the antitrust laws under § 2(b) of the McCarran-Ferguson Act, 59 Stat 34, as amended, 61 Stat 448; 15 USC 1012(b) because the agreements were the "business of insurance”, were regulated by Texas law, and were not "boycotts” within the meaning of § 3(b) of the act, 59 Stat 34; 15 USC § 1013(b). Royal Drug Co v Group Life & Health Ins Co, 415 F Supp 343 (WD Tex, 1976). The Court of Appeals for the Fifth Circuit reversed, holding that the agreements in question were not the "business of insurance” within the meaning of § 2(b) of the act. Royal Drug Co v Group Life & Health Ins Co, 556 F2d 1375 (CA 5, 1977). The United States Supreme Court granted certiorari to consider whether the Court of Appeals was correct in concluding that these Pharmacy Agreements were not the "business of insurance” within the meaning of § 2(b) of the McCarran-Ferguson Act. Group Life & Health Ins Co v Royal Drug Co, 440 US 205; 99 S Ct 1067; 59 L Ed 2d 261 (1979).
The Supreme Court explained that the exemption carved out in the McCarran-Ferguson Act is for the "business of insurance” not the "business of insurers”. Finding that the primary elements of an insurance contract are the spreading and underwriting of the policyholder’s risk, the Supreme Court concluded that Blue Cross and Blue Shield’s contract with its participating pharmacies served only to minimize the costs incurred by Blue Cross and Blue Shield in fulfilling its underwriting obligations and, as such, was not concerned with the spreading and underwriting of the policyholder’s risk. Accordingly, the Pharmacy Agreements were not exempt from examination under the antitrust laws. The Court explicitly did not rule on the illegality of the Agreements. "Whether the Agreements are illegal under the antitrust laws is an entirely separate question not now before us.” Id., 210. In fact, the Court points out in fn 5: "It is axiomatic that conduct which is not exempt from the antitrust laws may nevertheless be perfectly legal. The United States in its amicus brief urging affirmance has taken the position that the Pharmacy Agreements probably do not violate the antitrust laws, though recognizing that that issue is not presented here.” Id.
We recognize that the failure to comply with GCR 1963, 517.1, does not automatically require remand. People v Cook, 89 Mich App 72, 80-81; 279 NW2d 579 (1979). We believe that under the circumstances presented here this Court would be ill-advised to assume the responsibilities of fact-finding charged to the trial court. Accordingly, the original record is remanded to the trial judge "for preparation and certification of findings of fact”. Dauer v Zabel, 381 Mich 555, 558; 164 NW2d 1 (1969).
Blue Cross and Blue Shield also charges as error the trial court’s holding that the May 1, 1979, participation agreement invades the physician-patient relationship and usurps a psychiatrist’s control over the practice of mental health care. Blue Cross and Blue Shield reasons that MCL 550.312(2); MSA 24.602(2) permits it to provide payment for all, some or none of the health care services received by its subscribers. The contract determines what payments are made for which services.
The plaintiffs argue that the May 1, 1979, participation agreement requires each clinic to employ a psychiatrist to assume overall responsibility for patient care, attempts to regulate the practice of those psychiatrists by defining those categories of therapists to whom the psychiatrist might delegate aspects of treatment, and interferes with the free choice of doctors by patients, since patients would be forced to choose psychiatrists whose practice conforms to defendant’s standards or to forego benefits.
We find plaintiffs’ argument unpersuasive.
MCL 550.310; MSA 24.600 provides:
"Each doctor of medicine, licensed and registered under Act No 237 of the Public Acts of 1899, as amended, being sections 338.51 to 338.59 of the Michigan Compiled Laws, or each doctor of osteopathic medicine licensed under Act No 162 of the Public Acts of 1903, as amended, being sections 338.101 to 338.109 of the Michigan Compiled Laws, or each doctor of surgical chiropody or podiatry licénsed and registered under Act No 115 of the Public Acts of 1915, as amended, being sections 338.301 to 338.308a of the Michigan Compiled Laws, or each doctor of chiropractic licensed and registered under Act No 145 of the Public Acts of 1933, as amended, being sections 338.151 to 338.159 of the Michigan Compiled Laws, practicing legally in this state shall have the right to register with the corporation for general or special medical care. A nonprofit medical care corporation shall not impose restrictions on the doctors of medicine, doctors of osteopathic medicine, or doctors of surgical chiropody or podiatry, or doctors of chiropractic, who treat its subscribers as to methods of diagnosis or treatment. The private physician-patient relationship shall be maintained and the subscriber shall at all times have free choice of doctor of medicine, doctor of osteopathic medicine, or doctor of surgical chiropody or podiatry, or doctors of chiropractic. An employee, agent, officer, or member of the board of directors of such a corporation who influences or attempts to influence a person in the choosing and selecting of his own physician, is guilty of a misdemeanor.”
And MCL 550.312; MSA 24.602 provides in pertinent part:
"(1) The medical care rendered on behalf of a nonprofit medical care corporation shall be in accordance with the accepted medical practice in the community at all times.
"(2) For the purposes of this act a nonprofit medical care corporation may furnish as a benefit any health care by a person licensed or certified under Act No 185 of the Public Acts of 1973, as amended, * * (Emphasis added.)
While MCL 550.310 prohibits Blue Cross and Blue Shield from imposing restrictions on doctors of medicine who treat subscribers as to methods of diagnosis or treatment, MCL 550.312(2); MSA 24.602(2) provides that Blue Cross and Blue Shield is not required to reimburse for all methods of diagnosis and treatment.
Based on our reading of both these statutes, we do not believe that the May 1, 1979, participation agreement invades the physician-patient relationship. Physicians remain as unfettered under this new agreement as under the former to treat and diagnose patients in the manner they wish. We do not find that Blue Cross and Blue Shield’s refusal to reimburse for treatment performed by social workers without a master’s degree is the species of restriction intended by the Legislature in passing MCL 550.310. Doctors are still free to use social workers without master’s degrees in their clinics. The only difference is the financial source to which they must now look for compensation.
Blue Cross and Blue Shield also argues that the court erred in finding the 60-day termination clause in the April, 1979, participation agreement unreasonable because it allowed defendant to "put a clinic out of business at a whim”. We agree. The specific clause in question allowed either party to terminate the terms of the contract without cause upon 60 days written notice.
We start our analysis with the general principle that individuals are fully competent to enter into any contract which they wish to enter into and may obligate themselves to perform in any manner provided the contract is not in violation of any penal laws or public policy of the state. The court has no authority to change the terms of a contract simply because it might feel that it was an unwise contract for a party to have entered into. Mullally v Bey, 15 Mich App 248; 166 NW2d 500 (1968).
Plaintiff relies upon Allen v Michigan Bell Telephone Co, 18 Mich App 632; 171 NW2d 689 (1969), to support its premise that the 60-day termination clause is unreasonable. In Allen, this Court refused to enforce a contract clause which limited the telephone company’s liability for damages when it failed to publish plaintiff’s advertisement in the yellow pages as it had contracted to do. This Court’s primary concern in denying effect to the exculpatory clause was that plaintiff was contracting with a public utility which, in essence, had a monopoly on the type of advertising sought. There being no realistic alternative means for the plaintiff to communicate with the same audience which the yellow pages reaches, the Court found that the nonliability term was offered on a "take it or leave it” basis, that the term was unreasonable and, in effect, unconscionable. The Court concluded by stating:
"We believe the law in Michigan to be that, where goods or services used by a significant segment of the public can be obtained from only one source, or from limited sources on no more favorable terms, an unreasonable term in a contract for such goods or services will not be enforced as a matter of public policy.” 18 Mich App 632, 640.
Plaintiffs point to Allen and argue that based on the disparity in bargaining power between the individual clinics and Blue Cross and Blue Shield, the 60-day termination clause was unreasonable.
We disagree. The fact that parties to an agreement "have different options or bargaining power, unequal or wholly out of proportion to each other, does not mean that the agreement of one of the parties to a term of a contract will not be enforced against him; if the term is substantively reasonable it will be enforced”. 18 Mich App 632, 638.
Our review of the facts and circumstances of this case do not persuade us that the 60-day notice of termination was unreasonable. Although plaintiffs make much of their allegations that the 60-day termination will in effect put plaintiffs out of business, we are not so persuaded. We note that plaintiffs will now be reimbursed $4 more per psychiatric treatment session, and $1 more per psychologist treatment session, than under the prior agreement. Moreover, plaintiffs can continue to utilize social workers without master’s degrees in social work. The only difference is that plaintiffs will now be required to look to their patients instead of Blue Cross and Blue Shield for reimbursement. Whether a contractual provision is substantively unreasonable or unconscionable depends on the commercial setting, purpose and effect of the provision. Reed v Kaydon Engineering Corp, 38 Mich App 353; 196 NW2d 487 (1972). While a two-year termination provision might have been preferable, it is not the court’s place to rewrite the parties’ agreement.
Finally, we note the factual distinctions between Allen and the instant case. In Allen plaintiff could not get a comparable "Yellow Pages” listing from any other source. In the instant case, although Blue Cross and Blue Shield is a major health insurer in Michigan, it is not the only health insurer. And most significantly, defendant in Allen was attempting to exculpate itself from its own negligence, a position generally closely scrutinized. Such is not the case here.
We do not address the last two allegations of error.
Defendant claims that the May 1, 1979, participation agreement did not violate Michigan antitrust law, MCL 445.701 et seq.; MSA 28.31 et seq. Plaintiff, Midwest Mental Health Clinic, argues that defendant’s new reimbursement policy constitutes tortious interference with plaintiff’s contractual and advantageous business relationships.
The trial court did not discuss or refer to Michigan antitrust law, or to tortious interference with contractual relationships. A claim which did not control the disposition of the case in the lower court and in fact was not passed on at all need not be determined on appeal. Bentley v Shifflet, Cumber & Co, 238 Mich 5, 9-10; 213 NW 152 (1927).
Remanded for findings of fact as to the questions of restraint of trade and price fixing only, the other issues raised having been disposed of in this opinion.
We retain jurisdiction.
The existing form contracts provided, in part, that:
"The parties agree that this agreement may be terminated without cause by either party on the day following a previous written notice to the other party of at least sixty (60) days.”
The new rate structure would reimburse psychiatrists up to $49 per treatment session; psychologists up to $41 per treatment session; and social workers with a master’s degree in social work up to $33 per treatment session. Treatment performed by persons not in these three categories would not be reimbursed.
GCR 1963, 517.1 provides as follows:
“In all actions tried upon the facts without a jury or with an advisory jury, the court shall find the fact specially and state separately its conclusions of law thereon and direct the entry of the appropriate judgment. It will be sufficient if the court makes brief, definite, and pertinent findings and conclusions upon the contested matters without over elaboration of detail or particularization of facts. 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 and conclusions of law are unnecessary on decisions of motions except as provided in subrule 504.2. Requests for findings are not necessary for purposes of review. No exception need be taken to any finding or decision. 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.”
See footnote 1, supra. | [
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Bronson, J.
Plaintiff, Betty Earls, appeals by right from an order directing a verdict against her both individually and in her capacity as next friend of Raymond Earls in an automobile negligence action. The basis of the order was that neither Betty Earls’ nor Raymond Earls’ injuries satisfied the threshold requirement of "serious impairment of body function” or "permanent serious disfigurement” imposed by the no-fault act as a condition precedent to a finding of tort liability of defendants Herrick and Reilly. MCL 500.3135; MSA 24.13135. Herrick and Reilly, hereinafter defendants, cross-appeal, alleging that the trial court should have granted a directed verdict on the basis that plaintiff failed to make out a prima facie case of negligence.
Plaintiff filed suit on behalf of herself and her 10-month-old son in the Wayne County Circuit Court on May 25, 1976. The action arose out of a July 13, 1975, collision between an automobile in which plaintiff and her son were passengers and a vehicle driven by defendant Herrick which was owned by defendant Reilly. Trial was conducted February 4-5, 1980.
Betty Earls testified that her husband, Terry, was proceeding east on Panama in the City of Detroit when he arrived at that street’s intersection with Central. She further stated that Terry stopped the automobile, and both of them looked both ways down Central. They saw no cars coming in either direction. Thereafter, they proceeded through the intersection and when they had almost gotten across Central they were hit by defendants’ automobile which was proceeding north on Central.
Gary Herrick, the driver of defendants’ car, stated that he first saw plaintiff’s car when it was at the corner of Panama and Central, and at this point the car was proceeding toward the intersection but had not yet reached Central. He further indicated the car plaintiff was traveling in did not stop. Mr. Herrick testified that the streets were wet on the night of the accident. He also testified that he was traveling 25 miles per hour, which was the legal speed limit. However, in a deposition taken in June, 1977, Mr. Herrick testified that his rate of speed was "probably around 30” miles per hour.
As to the injuries in dispute, Mrs. Earls sustained lacerations on her face and arm and also suffered a fractured left humerus. She remained in the hospital for approximately four days following the accident. Plaintiff testified that her arm was placed in a cast extending from just below her shoulder to her wrist. This cast remained on her arm for some six weeks. Mrs. Earls also required stitches for the lacerations on her arm and head.
Plaintiff testified that she had difficulty caring for her 10-month-old son, Raymond, as a result of the cast. The cast interfered with her ability to diaper and feed Raymond. It was also difficult to wash dishes, cook, and clean. She dropped a lot of dishes. Mrs. Earls indicated that, three or four times since late 1975, she had experienced a sharp pain in her arm and had sought medical treatment for it. Plaintiff also has scars on her left arm which turn pinkish-red in hot weather and cause embarrassment. A scar on her forehead does not turn red.
On cross-examination, Mrs. Earls said she could not drive a car while the cast was on. However, she admitted that she was able to perform all of her household chores, but that the cast made it more difficult. She further stated that a doctor had told her that the scars were permanent. This doctor was not a plastic surgeon.
As to Raymond Earls, the baby was also scarred. All trial counsel gave their impressions about the scar’s length. The smallest estimate was that the scar was about three-quarters of an inch long across the face and then downward another inch or so.
Further testimony will be set forth where relevant to specific issues raised on appeal.
The first problem we must resolve is who exactly is appealing. Defendants state that a claim of appeal was taken only as to Betty Earls, individually, and not in her capacity as next friend of Raymond Earls. Plaintiffs brief, however, is premised on the idea that the appeal is in respect to Betty Earls in both her individual capacity and as next friend of Raymond Earls. None of the parties actually address this issue but, rather, simply make conclusory statements concerning the scope of appeal. This problem arises because of plaintiffs attorney’s entitlement of the notice of the claim of appeal. This document simply lists Betty Earls as plaintiff-appellant without indicating her separate statuses in this case. GCR 1963, 805(1) requires that a claim of appeal filed in this Court shall name and designate the parties in the same order as in the original proceedings, except adding appellant or appellee as appropriate. Plaintiff’s counsel did not correctly follow this rule. The effect of the failure to strictly comply with GCR 1963, 805(1) has never been addressed in Michigan.
On the facts of this case, we find that the entitlement was sufficient to preserve the appellate rights of plaintiff in both her individual capacity and as next friend of Raymond Earls. GCR 1963, 201.5(1) requires any infant or incompetent person to have his interests represented by an adult. The minor party has no right to bring an action in his own name. While judgments against an infant where no guardian has been appointed are not void, they are voidable. DeGuzman v Wayne Circuit Judge, 225 Mich 606, 610-611; 196 NW 523 (1923). Technically, there was only one plaintiff in this case, to-wit: Betty Earls, because her son lacked the capacity to sue. As such, we do not believe counsel’s entitlement of the claim of appeal listing solely Betty Earls as plaintiff-appellant constitutes a fatal defect as to the action she brought on behalf of her son.
We will first address the issue, raised by defendants’ cross-appeal, that plaintiff did not make out a prima facie case of negligence. While the evidence adduced by plaintiff was not overwhelming, it was sufficient to raise a jury question.
MCL 257.627(1); MSA 9.2327(1) provides:
"A person driving a vehicle on a highway shall drive at a careful and prudent speed not greater than nor less than is reasonable and proper, having due regard to the traffic, surface, and width of the highway and of any other condition then existing. A person shall not drive a vehicle upon a highway at a speed greater than that which will permit a stop within the assured, clear distance ahead.”
The assured clear distance rule applies to motorists approaching intersections. Breker v Rosema, 301 Mich 685; 4 NW2d 57 (1942), Ortega v Lenderink, 10 Mich App 190, 193; 159 NW2d 140 (1968), aff'd in part 382 Mich 210; 169 NW2d 467 (1969), rev’d in part on other grounds 382 Mich 218; 169 NW2d 470 (1969). In the instant case, Herrick admitted that the pavement was wet and that the intersection was obstructed except on Panama very close to where it came to Central. Betty Earls testified that when she looked down Central while stopped at Panama she saw no cars for two or three full blocks. The car she was riding in was subsequently hit by defendants’ vehicle. From this testimony, if believed, the jury could have inferred that defendant Herrick was not paying sufficient attention to what was happening ahead and consequently ran into the Earls’ vehicle.
Additionally, although. Mr. Herrick stated at trial that he was traveling at 25 miles per hour, the legal speed limit, in his deposition testimony he indicated that his rate of speed was probably about 30 miles per hour. MCL 257.649(e); MSA 9.2349(e) provided at the time the accident occurred:
"The driver of any vehicle traveling at an unlawful speed shall forfeit any right of way which he might otherwise have hereunder.”
If the jury concluded Herrick was speeding, in conjunction with the testimony that the pave ments were wet and the intersection of Panama and Central was obstructed, it surely would be within the jury’s right to conclude that he was negligent. While defendants were not negligent as a matter of law, a fact question was raised. See Rathburn v Riedel, 291 Mich 652; 289 NW 285 (1939), Clark v Naufel, 328 Mich 249; 43 NW2d 839 (1950).
We now turn to the question of whether the trial court correctly concluded that plaintiff failed to adduce sufficient evidence of "serious impairment of a body function” and "permanent serious disfigurement” as to her injuries and sufficient evidence to establish "permanent serious disfigurement” as to her son’s injuries. Unless it can be said that, viewing the evidence in the light most favorable to plaintiff, no reasonable jury could view the injuries as constituting a serious impairment or a serious permanent disfigurement the question is one of fact for the jury. Advisory Opinion re Constitutionality of 1972 PA 294, 389 Mich 441, 477-481; 208 NW2d 469 (1973), Watkins v City Cab Corp, 97 Mich App 723; 296 NW2d 162 (1980), Abraham v Jackson, 102 Mich App 567; 302 NW2d 235 (1980).
Dealing first with the serious impairment of a body function question, we find that the following testimony made this a jury question. Plaintiff stated that her arm was placed in a cast extending from shoulder to wrist for a period of six weeks following the accident. During this time span, plaintiff found it difficult to care for her son and to do household chores. The orthopedic surgeon who set the arm was of the opinion that plaintiff had complete loss of use of her upper arm while it remained in the cast. While it is true plaintiff stated on cross-examination that she could still care for her child and do her household chores with the cast on, she also indicated that this was possible only with increased difficulty. It was a question for the jury as to whether this added difficulty was severe enough to allow the conclusion that there had been a serious impairment of a body function.
Resolution of the second issue raised by plaintiff is connected with whether the trial court erred in granting a directed verdict on the question of "permanent serious disfigurement”. The trial court concluded that John McCullough, M.D., a board certified orthopedic surgeon, was not qualified to give expert testimony on whether the scars Betty and Raymond Earls possessed were permanent. The court stated, "An orthopedic surgeon is certainly never qualified as a plastic surgeon”.
The trial court applied an incorrect standard in assessing whether McCullough’s deposition testimony should have been admitted at trial. The mere fact that McCullough was not certified as a plastic surgeon did not necessarily preclude his testimony as an expert. To be qualified as a medi cal expert, it is sufficient if the witness has expertise by training or experience in the specialty in question. The witness need not actually be a practitioner of the specialty. Siirila v Barrios, 398 Mich 576, 590-594; 248 NW2d 171 (1976), Wilson v W A Foote Memorial Hospital, 91 Mich App 90, 101-102; 284 NW2d 126 (1979), lv to appeal on other grounds held in abeyance 409 Mich 868 (1980). We do not determine whether McCullough was or was not qualified, but on remand the trial court is to make this determination based on the correct standard.
There is also some suggestion in the trial court’s ruling that it believed expert testimony would not aid the trier of fact in reaching its decision. See MRE 702. Dr. McCullough’s deposition testimony contained two assertions material to this case. First, he indicated that once a scar was created it was permanent and could not be removed. Second, he stated that it was impossible to state with certainty whether plastic or reconstructive surgery could substantially reduce the noticeability of a scar.
The first assertion would obviously have aided the jury on the question of the permanency of the scars. The second assertion had the effect of rebutting an implication defense counsel made via his questioning of Mrs. Earls. On cross-examination, she was asked whether a plastic surgeon had ever told her that plastic surgery could not do any good in repairing her scars. She answered in the negative. Dr. McCullough’s second assertion had the effect of dispelling the implication that, had Mrs. Earls sought plastic surgery, she would have been informed that the noticeability of the scars could in all probability be diminished.
The underlying assumption of defendants’ motion for a directed verdict on the permanent serious disfigurement question was that plaintiff had to submit to plastic surgery before the disfigurement could be called "permanent”. However, plaintiff’s expert’s testimony would have been to the effect that any scar was permanent and that plastic surgery may or may not be able to lessen the noticeability of a given scar. Furthermore, plaintiff’s expert would have indicated that plastic surgery could in fact make a scar more noticeable. If the doctor’s deposition had been admitted into evidence, and had the jury accepted this testimony, it could have found the disfigurements permanent. Furthermore, even had plaintiff’s expert not stated that any scar was permanent, in light of his testimony that it was impossible to say whether plastic surgery would be beneficial, assuming plaintiff’s expert’s qualifications, we would not require her to submit herself or her son to a reconstructive surgical procedure. This situation might be likened to a plaintiff’s duty to take reasonable steps to avoid the harmful consequences of the initial tort. Restatement Torts, 2d, § 918, p 500. The avoidable consequences rule does not apply where the action which must be taken to lessen the severity of the harmful effects of the tort does not stand a high probability of being successful. Here, if McCullough’s testimony had been taken into evidence, the jury could have found that submission to reconstructive surgery would have had a doubtful result. Restatement, supra, 503-504. See, also, Clapham v Yanga, 102 Mich App 47; 300 NW2d 727 (1980). If Dr. McCullough had been qualified as an expert by the trial court, his testimony would have aided the finder of fact on the question of the permanency of the scars.
As to the seriousness aspect of the disfigurement, it is difficult to review how the trial court found the scars not sufficiently serious since we do not have photographs of the people involved. Nonetheless, it seems to us that the testimonial descriptions of the facial scars created a fact question as to the seriousness of the scars. Almost any facial scar which is immediately noticeable might result in serious emotional effects for the individual who must bear the scar. Such a permanent facial scar might be found to be a serious disfigurement by a jury. Similarly, a jury might have found that the scars on Betty Earls’ arm, which turned pinkish-red in hot weather and caused her embarrassment, constituted a serious disfigurement based on her testimony.
Reversed and remanded for trial. Costs to plaintiff.
If the jury concluded Herrick was speeding, his right to claim that he had the right-of-way pursuant to MCL 257.649(b); MSA 9.2349(b) would be lost.
Particularly in light of the adoption of comparative negligence in Placek v City of Sterling Heights, 405 Mich 638; 275 NW2d 511 (1979). The number of cases in which a directed verdict on the question of negligence would be appropriate are few. It may well be that the driver of plaintiffs vehicle was negligent. However, on the record at hand, we certainly cannot say that the jury would not have the right to find defendants at least partially at fault in this accident. Even if defendants were found to be only 1% at fault, they would be liable for all of plaintiff’s injuries. This Court has rejected the position that, in light of Placek, the wrongdoing of a given defendant must be assessed in relation to all wrongdoers. Weeks v Feltner, 99 Mich App 392, 395; 297 NW2d 678 (1980). While Terry Earls, the driver of the automobile in which Betty and Raymond were passengers, was added as a third-party defendant by order of the court dated January 11, 1980, he was never served in this cause. If Terry Earls was negligent, his negligence cannot be imputed to Betty and Raymond. Jackson v Trogan, 364 Mich 148; 110 NW2d 612 (1961).
While Siirila and Wilson both deal with the issue of a doctor’s competence to comment on the standard of care imposed outside his specialty, we see no indication that either decision is limited solely to testimony on the standard of care. In this case-, the permanency of the scars suffered by Betty and Raymond Earls was in issue. It is possible that McCullough had sufficient expertise to comment on this issue, despite the fact that he was not a plastic surgeon. | [
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Per Curiam.
Plaintiff filed suit against defendant under the Michigan Freedom of Information Act, MCL 15.231 et seq.; MSA 4.1801(1) et seq., praying for $500 in punitive damages due to defendant’s allegedly arbitrary and capricious delay in disclosing requested information. Plaintiff appeals from the trial court’s grant of summary judgment in favor of defendant based upon the absence of a genuine issue of material fact, GCR 1963, 117.2(3).
MCL 15.235(2); MSA 4.1801(5)(2) provides for a maximum of 15 days to respond to a request for disclosure made pursuant to the Freedom of Information Act. MCL 15.240(5); MSA 4.1801(10X5) directs the circuit court to award punitive damages in the amount of $500 to the person asserting the right to inspect or receive a copy of a public record upon finding that the public body has arbitrarily and capriciously violated the act by refusal or delay in meeting the request.
In the present case it is undisputed that there was an eight-week delay in complying with plaintiffs written request of May 6, 1977, to inspect and examine his file maintained at Jackson Prison. Plaintiffs complaint was served upon defendant by certified mail on June 22, 1977. The trial court dismissed plaintiffs claim due to improper service on July 25, 1978. In the interim plaintiff reviewed his file August 18, 1977. It was not until September 11, 1978, that plaintiff obtained personal service of his complaint upon defendant.
Subsequently defendant requested summary judgment in his favor except as to the issue of damages. Plaintiff likewise moved for summary judgment praying for compelled disclosure and punitive damages. The trial court entered an order granting summary judgment in favor of defendant with respect to the issue of disclosure, rendered moot by plaintiff’s earlier review of his file, and the claim for punitive damages.
The single issue on appeal is the propriety of the trial court’s grant of summary judgment in favor of defendant denying plaintiff’s claim of punitive damages. Defendant maintains that the eight-week delay was due to the fact that Jackson Prison had not fully implemented its procedures for processing requests under the Freedom of Information Act, which had been in effect for a very brief period prior to plaintiff’s disclosure demand. Plaintiff submits that the Michigan Department of Corrections had promulgated processing procedures prior to the effective date of the act and thus was equipped to respond promptly.
In order for plaintiff to prevail in this action for punitive damages he must demonstrate that the review of his file was the result of a court ordered disclosure and that defendant acted arbitrarily and capriciously in failing timely to comply with the disclosure request. Bredemeier v Kentwood Board of Education, 95 Mich App 767; 291 NW2d 199 (1980), and cases cited therein. Plaintiff has failed to satisfy the initial prerequisite of court ordered disclosure. Prior to personal service of the complaint upon defendant, Warden Anderson of Jackson Prison received a letter from Assistant Attorney General William Molner requesting that arrangements be made for plaintiff to inspect his institutional file. The letter explained that the absence of a record of the disclosure request was apparently due to the fact that it was made prior to full implementation of processing procedures for such requests. Ten days later and a full year prior to service of process, the file was made available for review.
Because summary judgment was appropriately granted on the above ground we need not address the trial court’s finding with respect to the existence of a genuine issue of material fact.
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M. J. Kelly, J.
Defendants appeal as of right a decision of the lower court, which reversed a decision of the Michigan Liquor Control Commission finding that plaintiff church was not located within 500 feet of defendant Jalaba’s supermarket. The conflicting decisions were made in response to the plaintiff’s challenge to Jalaba’s effort to secure an SDD (specially designated distributor) license to sell liquor at his store.
In connection with an application for an SDD liquor license submitted by defendant Jalaba, the commission conducted an investigation to determine the distance between plaintiff church and defendant Jalaba’a store, Big Top Supermarket. Big Top Supermarket is located at 3888 West Warren in the City of Detroit. On March 15, 1979, a report was submitted to the commission which noted that the church had two addresses. The report concluded that if the church address was 3945 West Warren, the church was 203 feet from the distributor’s proposed location, but if its address was 1512 West Grand Boulevard the church was 578 feet from the supermarket.
On August 16, 1979, a hearing was held to determine the street address of the church. At this hearing Reverend. Elijah Davis, a minister at the church, testified that the church is located on the corner of West Warren and West Grand Boulevard in the City of Detroit and has two entrances. The main entrance is on West Warren Avenue and consists of a large double doorway. The structure of the cathedral and the arrangement of the stairway and vestibule are designed to indicate a main entrance on West Warren. The second entrance faces West Grand Boulevard and is much smaller than the Warren entrance, the West Grand Boulevard entrance was said to be used only by those parishioners who park near that side of the church.
Two auxiliary buildings are also located on West Grand Boulevard, immediately behind and south of the cathedral. These buildings are not physically connected with the cathedral and are not used for religious services. One building is used as the church administrative office.
A letter addressed to counsel for defendant Ja-laba from the City of Detroit, Environmental Protection and Maintenance Department, House Numbering Division, was also introduced into evidence. This letter confirms that the church has addresses on both West Warren and West Grand Boulevard. The letter states in pertinent part:
"City records indicate the church building on the southeast corner of West Warren Avenue and West Grand Boulevard having two entrances consequently has two addresses, 3945 West Warren and 1512 West Grand Boulevard. However our records do not indicate when these two numbers were assigned. Presumably they were assigned when the structure was built. We can not state that for a fact. In the case of a corner property with two addresses it is left to the property owner to designate which address will be used for business purposes.
"On February 1, 1979, at the request of a church representative this officer sent a letter to the church saying city records indicate that 3945 West Warren is the street address assigned by our officer for the church building in question.”
Further testimony indicated that the West Grand Boulevard address is listed in the Detroit telephone book as the address of the church and that the Detroit Council of Churches, Bresser’s Cross Index of street addresses and the State of Michigan Corporation Section also list the West Grand Boulevard address.
The address of the building in which the church’s administrative activities are conducted is 1510 West Grand Boulevard. Reverend Davis testified that the cathedral’s 1512 West Grand Boulevard address is listed with the various agencies to facilitate mail delivery. He testified that there is no administrative office or staff located in the cathedral and that no one is present in the cathedral during the day to accept mail. The West Grand Boulevard address is used so that all the mail will be delivered to the office.
I
The appellants first argue that the lower court’s interpretation of MCL 436.17a(l); MSA 18.988(1)(1) was improper in that the distance between the properties was calculated from the church’s main entrance (West Warren) rather than the side entrance (West Grand Boulevard) listed as the address in the above noted sources. The circuit court pinpointed the specific statutory language at issue and the following rationale for reversing the commission’s determination:
"Here, the facts are clear. There is no dispute. The Warren Avenue entrance is within 500 feet of the church, and the West Grand Boulevard entrance is more than 500 feet from the church. The statute * * * requires that the distance between the two structures should be determined by using 'the street or streets of address.’ In the situation such as this where the church has two entrances, the measurements should be taken from the address which represents the main entrance to the church. Here the main entranceway is on Warren and is within 500 feet of the proposed liquor establishment.
"The amendments of 1969 to Section 17a(l) involved the addition of the words 'of address’ to the portion of the statute indicating how the distance between the two structures was to be measured. Prior to the amendment, the measurement was undertaken from the point of the church or the school closest to the proposed licensee. By amending the statute, the Legislature intended to fix a measuring point for each church or school which would best affectuate [sic] the legislative intent of separating churches and schools from liquor establishments. This intent was best brought about by fixing the point at the main entrances of the two structures, where most of the traffic would be concentrated.
"Therefore, the finding by the Liquor Control Commission that Section 17a(l), as amended, should be read to use the business address, when that address is not the one where most of the people enter the church, is not in keeping with legislative intent. The intent of the Legislature can best be effectuated by reading 'street or streets of address’ as symbolizing and meaning the main entrance to the structure. The whole purpose of the statute is to keep liquor establishments more than 500 feet away from where most people enter the church, and the main entrance to the church clearly is the one that must be considered 'street or streets of address’.”
The rules governing our interpretation of a statute are well defined. The cardinal rule in such determinations is to ascertain and give effect to the Legislature’s intent in enacting the provision. City of Lansing v Lansing Twp, 356 Mich 641, 648-649; 97 NW2d 804 (1959). If the language of the statute is unambiguous, the intent of the Legislature should be determined accordingly, Avon Twp v State Boundary Comm, 96 Mich App 736, 743; 293 NW2d 691 (1980), and further construction is precluded. Ordinary words are to be given their plain and ordinary meaning.
Where the disputed provision is subject to more than one interpretation, the purpose and objective of the enactment will be reviewed to find legislative intent. Bennetts v State Employees Retirement Board, 95 Mich App 616, 622; 291 NW2d 147 (1980), citing Davis v Board of Education of School Dist for the City of River Rouge, 73 Mich App 358, 363; 251 NW2d 585 (1977). Legislative intent may also be discerned by reference to extrinsic aids indicative of the statute’s object and the problem to which it is addressed. Consumers Power Co v Big Prairie Twp, 81 Mich App 120, 156-157; 265 NW2d 182 (1978).
Applied to the instant facts, we find the disputed phrase "street or streets of address” susceptible of more than one interpretation. Thus, as noted above, we must look to the overall objective of the statute and any additional extrinsic aids to ascertain legislative intent.
The express intent behind the Legislature’s en actment of MCL 436.17a; MSA 18.988(1) (prior to the amendment adding the words "of address” to the first section) was noted in Morse v Liquor Control Comm, 319 Mich 52, 65-66; 29 NW2d 316 (1947):
"We recognize that the stated purpose of the act is to legalize and regulate the trafile in alcohol; and we are in accord with defendant that a liberal construction of a statute purporting to regulate does not imply complete prohibition unless the import of the legislative statement is clearly to that effect. Nevertheless, we are convinced that it was the express intent and purpose of the legislature in enacting section 17a of the liquor law to protect the churches and schools of the State from any detriment stemming from the conduct of a liquor business within the immediate vicinity of those institutions.”
See also Big Bear Markets of Michigan, Inc v Liquor Control Comm, 345 Mich 569; 77 NW2d 135 (1956), and Staiger v Liquor Control Comm, 336 Mich 630; 59 NW2d 26 (1953).
In light of this express intent, we agree with the lower court that the statutory interpretation proposed by defendant Jalaba and adopted by the commission would thwart the protective intent of the act as a whole. In so holding, we note that it is not uncommon to find churches and schools with many entrances and adjoining different streets. Considering the large size of many such structures, it would not be unlikely that situations similar to that found herein would develop. We do not believe that the Legislature’s addition of the words "of address” was intended to alter the statute’s basic intent to separate churches and schools from retail liquor establishments. It is axiomatic that for most churches and schools the street of address will correspond with the structure’s mailing address and main entrance. We thus find the lower court’s interpretation of MCL 436.17a(l); MSA 18.988(1)(1) was not in error.
II
The appellants also allege reversible error in the lower court’s interpretation of MCL 436.17a(4); MSA 18.988(1)(4). The trial court stated:
"The second issue is whether the prohibition against issuing the license is mandatory if the site is within 500 feet of the church. It is the contention of the Liquor Control Commission that the flat prohibition against the issuance of a liquor license to an establishment within 500 feet of a church was changed by the 1969 amendment of the statute._
"The Court does not agree. The language of paragraph 17a(l) remains unchanged and unequivocal. The only addition was the addition of the language 'street or streets of address’. The statute says, 'A new application for a license to sell alcoholic beverages at retail * * * shall be denied in the event the contemplated location is within 500 feet of a church * * *’. Construing this language, the Court in Big Bear Markets, supra, stated, at page 575:
" 'The conclusion cannot be avoided that the legislature intended, for reasons of public policy, to impose an absolute restriction with reference to the issuance of licenses.’
"The statute has been amended, but the amendment only allows the Commission discretion with respect to certain licenses not covered under Section 17a(l). If the Legislature had intended to give the Commission discretion with respect to issuing retail liquor licenses to establishments within 500 feet of a church, the phrase 'shall be denied’ in Section 17a(l) would have been replaced with a 'may be denied’. It was not.”
Our review of subsection (4) and this Court’s decision in Westwood v Liquor Control Comm, 35 Mich App 393; 192 NW2d 534 (1971), requires a contrary finding. In Westwood, the plaintiffs application for a Class C license was denied by the Commissioner because the plaintiffs place of business was within 500 feet of a church. Subsequent to the commission’s decision, § 17a was amended to include subsection (4). The Westwood Court held that "the commission now has discretionary power to issue a Class C liquor license to the plaintiff even though plaintiffs place of business may be within 500 feet of a church”. Westwood, 394.
We find subsection (4) equally applicable to this case. The prohibition embodied in subsection (1) is limited to "retailers” of liquor whose premises are within 500 feet of a church or school. Other handlers of liquor, including wholesalers, manufacturers and warehousemen, are not so limited. Additionally, subsection (2) of § 17a specifically permits granting licenses to retailers (specially designated merchants) within 500 feet who sell only beer and wine for consumption off the premises. Therefore, the waiver provision in subsection (4) cannot refer to the licensees noted in subsection (2), since their presence within 500 feet was never prohibited.
The only type of licenses to which subsection (1) could logically apply are those given to retailers of spirits for consumption off the premises, or retailers of beer, wine or spirits who sell for consumption on the premises. Thus, the lower court erred in finding subsection (4) of the statute inapplicable to the present case.
The decision of the Wayne County Circuit Court, insofar as it found defendant Jalaba’s business to be within 500 feet of the plaintiff church, is affirmed. That aspect of the lower court’s decision finding absolute the prohibition of MCL 436.17a(l); MSA 18.988(1X1) is reversed and the case remanded to the Liquor Control Commission for a hearing pursuant to MCL 436.17a(4); MSA 18.988(1)(4). We do not retain jurisdiction.
Affirmed in part, reversed in part and remanded.
MCL 436.2p; MSA 18.972(16) provides the statutory definitions of specially designated distributor:
" 'Specially designated distributor’ shall mean a person engaged in an established business licensed by the commission to distribute alcoholic liquor other than wine under 16 per cent alcohol by volume and beer in the original package for the commission for consumption off the premises.”
The statute provides:
"A new application for a license to sell alcoholic beverages at retail, or a request to transfer location of an existing license, shall be denied in the event the contemplated location is within 500 feet of a church or a school building. The distance between the church or school building and the contemplated location shall be measured along the center line of the street or streets of address between 2 fixed points on the center line determined by projecting straight lines, at right angles to the center line, from the part of the church or school building nearest to the contemplated location and from the part of the contemplated location nearest to the church or school building.”
The statute in effect at that time was almost identical to the disputed provision in this case and stated:
"Any new application for a license to sell alcoholic beverages at retail, or any request to transfer location of an existing license, shall be denied in the event the contemplated location is within 500 feet of a church or a school building. Such distance between the church or school building and the contemplated location shall be measured along the center line of the street or streets between 2 fixed points on said center line determined by projecting straight lines, at right angles to the said center line, from the part of the church or school building nearest to the contemplated location and from the part of the contemplated location nearest to the church or school building: Provided, however, That this section shall not apply to any outstanding license issued prior to March 1, 1949, for a location within the aforesaid distance or to the renewal or transfer thereof at such location or to any resort license in effect during the 1948-1949 licensing year or to the renewal or transfer thereof at such location or to any application for a license at such location which has been approved by the commission prior to March 1, 1949, and all licenses so issued, renewed, transferred or approved shall be conclusively presumed to be valid for purposes of this amendatory act only.”
Subsection (4) provides:
"The commission may waive this section in the case of other classes of licenses. If an objection is not filed by the church or school, the commission may issue the license in accordance with this act. If an objection is filed, the commission shall hold a hearing in accordance with rules established by it before making a decision on the issuance of the license.”
A Class C license is defined in MCL 436.2t; MSA 18.972(20):
" 'Class C license’ shall mean any place licensed to sell at retail beer, wine and spirits for consumption on the premises.” | [
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Per Curiam.
The people appeal as of right from a circuit court order granting defendant youthful trainee status under the Holmes Youthful Trainee Act, MCL 762.11 et seq.; MSA 28.853(11) et seq.
Defendant was charged with involuntary manslaughter stemming from a car accident which occurred on September 9, 1979. Following a preliminary examination, he was bound over for trial on a charge of felonious driving, MCL 752.191; MSA 28.661. Defendant subsequently petitioned the court to be assigned the status of youthful trainee under the Holmes Youthful Trainee Act. At the hearing on this petition, the court noted that defendant did not meet the age requirements set forth in the act because he was 21 years old on the date of the offense. However, the judge ruled that the age requirements in the statute were invalid, stating:
"[T]he Court does feel that it has the power in reviewing that statute to determine on its own, the validity of those age requirements, and in doing so, determined that that Statute, as it applies in that regard is considered to be unconstitutional as not affording equal protection to all citizens and arbitrarily placing an age limit upon the qualifications for consideration.
"The fact that a person is older and still has a good record should go more to his credit than the fact that he is younger.” (Emphasis added.)
Defendant was then granted youthful trainee status.
The people appeal, claiming that the trial court erred in granting the petition.
The relevant statutory provision reads as follows:
"When a youth is alleged to have committed a criminal offense, other than murder in the first degree or a major controlled substance offense, between the youth’s seventeenth and twentieth birthdays, the court of record having jurisdiction of the criminal offense may with the consent of both the affected youth and the youth’s legal guardian or guardian ad litem elect to consider and assign that youth to the status of youthful trainee.” MCL 762.11; MSA 28.853(11). (Emphasis added.)
It is undisputed that defendant was not within the specified age period on the date of the offense and we therefore address the issue of whether the trial court erred in striking down the age restrictions as violative of equal protection.
Equal protection analysis requires an initial determination of the proper test to be applied. If the statute affects a fundamental interest or makes an inherently suspect classification, a strict scrutiny test is appropriate and the statute will not be upheld unless the classification is justified by a compelling state interest. Absent a fundamental interest or suspect classification, the alternative test places the burden on the party challenging the statute to show that the classification is arbitrary and not reasonably or rationally related to the object of the legislation. McAvoy v H B Sherman Co, 401 Mich 419, 452-454; 258 NW2d 414 (1977), People v Schmidt, 86 Mich App 574, 578; 272 NW2d 732 (1978).
We find that the strict scrutiny test is not proper in the instant case. Age is not a suspect classification for equal protection purposes. Massachusetts Board of Retirement v Murgia, 427 US 307, 313-314; 96 S Ct 2562; 49 L Ed 2d 520 (1976), Johnson v City of Opelousas, 488 F Supp 433 (WD La, 1980). Furthermore, differences in treatment of criminal offenders do not generally affect fundamental interests. Marshall v United States, 414 US 417; 94 S Ct 700; 38 L Ed 2d 618 (1974). Defendant’s claim that his fundamental right to liberty would be impaired by the denial of youthful trainee status is meritless because the denial of liberty would occur only after he was found guilty in a judicial proceeding at which he would be provided the full panoply of rights and protections guaranteed under the Federal and state constitutions. After such a determination of guilt, the state may circumscribe defendant’s liberty. People v McLeod, 407 Mich 632, 662; 288 NW2d 909 (1980).
Since the statute does not interfere with a fundamental right or involve a suspect classification, we examine the age requirements under the rational basis test to determine whether the classification is arbitrary and not reasonably related to the object of the legislation. The Holmes Youthful Trainee Act constitutes remedial legislation designed to alleviate problems with young offenders by permitting the use of rehabilitation procedures prior to conviction, on the petition of the defendant. People v Bandy, 35 Mich App 53; 192 NW2d 115 (1971). The age classification indicates a legislative belief that individuals in the 17 to 20 age bracket would be more amenable to the training and rehabilitation provided under the act. The statute also evidences a legislative desire that persons in this age group not be stigmatized with criminal records for unreflective and immature acts. As plaintiff correctly notes, youthful offenders under the age of 17 are generally processed by the juvenile court system while criminal defendants over 17 are treated as adults. The Legislature apparently wanted to provide an alternative procedure for those offenders still in their teenage years in order to moderate this abrupt change in status.
Although the age classification set forth in the act may be imperfect because some criminal defendants over 20 years old could benefit from youthful trainee status, that fact does not render the statute unconstitutional. The line had to be drawn somewhere and we are unwilling to hold that a cutoff point at age 20 is unreasonable or arbitrary. See, People v Sorna, 88 Mich App 351, 360-361; 276 NW2d 892 (1979). In State v Ingram, 293 A2d 289 (Del, 1972), the Delaware Supreme Court held that a statutory definition of "youthful offender” as any offender requiring incarceration who had not reached his 18th birthday was not unreasonable and arbitrary. The statute required that separate work, custody, training and treatment facilities be provided for such offenders. The following statement of the Court is applicable in the instant case:
"Chronological age alone, without regard for individual physical, mental, or emotional development, has been made the measure of maturity in many important areas of life, including the voting booth, the armed forces, marriage, contractual relations, and the courts. Practical necessity makes such automatic classifications unavoidable. While automatic classification of the individual, based upon chronological age alone, leaves much to be desired, it cannot be said that it rises to constitutional proportions of unreasonableness or arbitrariness * * *”. Id., 290.
We conclude that the age restrictions under the Holmes Youthful Trainee Act are not arbitrary and are reasonably related to the legislative purpose. Accordingly, we find that the lower court erred in striking down the act’s age requirements as unconstitutional.
Defendant also argues that, even if the age classification is upheld, the trial court nevertheless had discretion to grant him youthful trainee status. This argument lacks merit. The plain language used in the statute indicates that the trial court is granted the discretion to award youthful trainee status only where the applicant falls within the specified age group.
The trial court’s order granting defendant youthful trainee status is vacated and the case is remanded for further proceedings.
Reversed. | [
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Per Curiam.
Defendant was charged with delivery of a controlled substance (marijuana), MCL 333.7401; MSA 14.15(7401). On March 31, 1980, he pled guilty to the offense of attempt to possess a controlled substance (marijuana) with intent to deliver, MCL 333.7401; MSA 14.15(7401), MCL 750.92; MSA 28.287. On May 5, 1980, defendant was sentenced to serve six months in jail, fined $250, placed on probation for five years, and ordered to pay $1,250 in costs.
Defendant appeals by right and raises three issues, none of which require reversal.
There is no merit to defendant’s argument that the trial court erred in imposing costs in the amount of $1,250. Although case law holds that an assessment of costs in a criminal case must be reasonably related to the cost of prosecution, it is recognized that costs of probation may be a factor. People v Teasdale, 335 Mich 1; 55 NW2d 149 (1952). Specific language in MCL 771.3(3); MSA 28.1133(3) authorizes the trial court to consider all expenses, direct and indirect, which the public has been or may be put to in connection with the .apprehension, examination, trial, and probationary oversight of the probationer.
Contrary to defendant’s assertion, the trial judge did explain his basis for assessing the amount in question on the record at the motion for resentenc-ing. As the trial court noted, the costs of probationary supervision for five years is alone sufficient justification for the costs imposed.
There is no merit to defendant’s argument that the trial court lacked authority to impose a period of probation in excess of two years. Although the crime to which defendant pled guilty is labeled a two-year misdemeanor, the determination of whether it is a misdemeanor or a felony for pur poses of the limitations on length of probation in MCL 771.2; MSA 28.1132 is governed by MCL 761.1(g); MSA 28.843(g), People v Stiles, 99 Mich App 116, 121; 297 NW2d 631 (1980). Since the allowable maximum sentence exceeds one year, the crime in question is a felony and the five-year limit on probation applies.
Defendant’s challenge to the constitutionality of the statute under which he was convicted was specifically rejected in People v Trupiano, 97 Mich App 416, 420; 296 NW2d 49 (1980), lv den 409 Mich 895 (1980), and is therefore without merit.
Affirmed.
Cynar, P.J., and D. F. Walsh, J., concurred. | [
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Per Curiam.
Defendant appeals as of right from an order entered March 31, 1980, in Oakland County Circuit Court terminating the visitation rights of plaintiff, setting aside any and all arrear-age for child support, and terminating all future child support.
The sole issue raised on appeal concerns whether plaintiff may suspend child support payments as a result of being denied visitation rights.
The general rule in Michigan is that support payments may be suspended when a noncustodial parent is wrongfully denied visitation rights, unless the suspension of those payments would adversely affect the children for whose benefit the payments are made. McLauchlin v McLauchlin, 372 Mich 275, 277; 125 NW2d 867 (1964), Watkins v Springsteen, 102 Mich App 451; 301 NW2d 892 (1980).
In the case at bar, the record conclusively discloses that the defendant engaged in a protracted course of conduct designed to frustrate the visita tion rights of plaintiff. The fact is that defendant conducted a designed, concerted effort to separate the father and son identification to the point of antagonism. Such affirmative acts amount to a wrongful denial of visitation rights. See, for example, Pronesti v Pronesti, 368 Mich 453; 118 NW2d 254 (1962), Barker v Barker, 366 Mich 624; 115 NW2d 367 (1962).
Affirmed. | [
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R. M. Ransom, J.
On June 12, 1979, a warrant was issued charging defendant with larceny from the person. MCL 750.357; MSA 28.589. On July 15, 1979, a second warrant was issued charging defendant with breaking and entering a business place with intent to commit larceny therein. MCL 750.110; MSA 28.305. Defendant was arraigned on both warrants on July 15, 1979. It was alleged that the breaking and entering also took place on July 15, 1979. Pursuant to a plea bargain agreement defendant pled guilty to attempted larceny from the person and attempted breaking and entering. MCL 750.92; MSA 28.287. Defendant was sentenced to prison terms of two years to five years in each case, the sentences to run consecutively. Defendant appeals, contesting the imposition of consecutive sentences.
MCL 768.7b; MSA 28.1030(2) provides in pertinent part as follows:
"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 of the subsequent offense or acceptance of a plea of guilty, guilty but mentally ill, or nolo contendere for the subsequent offense, the following shall apply:
"(a) The sentences imposed for conviction of the prior charged offense and subsequent offense, other than a major controlled substance offense, may run consecutively.” (Emphasis added.)
Defendant argues that consecutive sentences could not be imposed since, at the time the second crime was committed (July 15, 1979), there was no case pending against him. The prosecutor argues that the outstanding warrant commenced criminal proceedings against defendant and, therefore, there was a case "pending” against defendant when the second offense was committed.
It has previously been held that 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; 126 NW2d 727 (1964), People v Leal, 71 Mich App 319; 248 NW2d 252 (1976), lv den 399 Mich 821 (1977), People v Glenn Jones, 82 Mich App 403; 266 NW2d 824 (1978), People v West, 100 Mich App 498; 299 NW2d 59 (1980). MCL 768.7b; MSA 28.1030(2) is such a statutory authorization. People v Glenn Jones, supra. This Court has also indicated that said statute should be liberally construed in order to achieve the deterrent effect intended by the Legislature. People v Mayes, 78 Mich App 618, 621; 261 NW2d 22 (1977). This statute is typically applicable where a criminal defendant has been apprehended and is then released on bond, or otherwise at large, and subsequently commits another felony. See People v Daniels, 69 Mich App 345; 244 NW2d 472 (1976).
The question presented by this appeal concerns when a defendant can be considered charged and the disposition of his case "pending”.
This Court first interpreted "pending” in terms which suggested that the statute only related to those released on bond.
"Defendant concedes that the Legislature may differentiate, as it has by the above statute, two classes of persons; those who have committed subsequent felonies while on bond and those who have not, and provide for different punishments between those classes. We think that is a wise concession. The purpose of the statute is to deter persons accused of one crime from committing others by removing the security of concurrent sentences should conviction result on any or all of the crimes so committed. Such a purpose is laudable, rational and the statute reasonably tends to achieve that purpose.” People v Bonner, 49 Mich App 153, 158; 211 NW2d 542 (1973). (Emphasis added.)
Subsequently, this Court ruled that the statute is not just applicable to those who commit crimes while on bond. The disposition of a criminal case was determined to be pending where the polling of the jury was in process and before the verdict was accepted when the subsequent offense occurred. People v Sanders, 58 Mich App 512; 228 NW2d 439 (1975), lv den 397 Mich 851 (1976). Thus, a defendant out on probation who commits another felony does not come within the ambit of the statute since the first felony prosecution is not still pending. People v Leal, supra. However, both the Sanders and Leal opinions concerned the last point in time when the first felony prosecution could still be considered "pending” against defendant. In the case at bar, we are concerned with the first point in time that the case could be considered pending.
It is relevant to consider the purpose behind the statute in question. As previously cited in People v Bonner, supra, the purpose of the statute is to "deter persons accused of one crime from committing others by removing the security of concurrent sentences”. The statute’s purpose has been further explained as follows:
"If consecutive sentences were not allowed, a defendant in a pending action would have the security of knowing that the sentence for a second felony committed will run concurrently with the sentence imposed for the first felony. The sentence for the second felony would be minimized. Thus, the Legislature passed MCL 768.7b; MSA 28.1030(2) to deter charged persons from committing a second felony by removing the security that the sentence must run concurrently with the first.” (Emphasis in original.) People v Mayes, supra, 621.
In considering this statutory purpose, we find the defendant’s first case could not be considered pending when he committed the second offense. Even though a warrant had been issued, defendant was not aware that his previous criminal activity was the subject of a criminal prosecution. The Legislature’s choice of the language "when a person, who has been charged with a felony and pending the disposition of the charge * * *” (emphasis added) implied more than the issuance of a warrant; an element of notice exists. We, therefore, conclude that defendant must be apprehended on the warrant before disposition of the charge can be considered pending within the meaning of MCL 768.7b; MSA 28.1030(2).
The prosecutor urges this Court to liberally construe the statute to maximize its deterrent effect. Laudable as that end might be, the statute must be interpreted to giye the intended deterrent effect, not the maximum deterrent effect. People v Williams, 89 Mich App 633; 280 NW2d 617 (1979), lv den 406 Mich 995 (1979). In Williams, this Court interpreted MCL 768.7b; MSA 28.1030(2) as extending no further than the deterrent purpose behind the statute would warrant:
"The intended effect of § 7b can best be seen by analyzing the deterrence situation that exists before and after a felony has been charged. In general, once a criminal defendant has been charged with a felony, the level of deterrence against his commission of a second felony drops. Section 7b restores the level of deterrence to its pre-charge plateau. It does not, however, raise the level of deterrence above that plateau.
"When a person has committed a felony for which he has not yet been charged, he has the security, under In re Carey, supra, of knowing that the sentence for any subsequent felony will run concurrently with the sentence for his first crime. The primary deterrent against his commission of a second felony at that point is the risk of being 'caught’. The further risk of receiving an additional concurrent sentence is minimal. Logically, the risk of another consecutive sentence would heighten the deterrence against his commission of the second felony. For countervailing reasons, nevertheless, the Carey Court chose not to impose that added risk, except in legislatively proscribed situations.” People v Williams, supra, 637.
Since defendant here was not in the position to know of the charges made against him, the deterrence from committing another offense is lodged in the probability of getting caught, not within the application of § 7b. A liberal construction of the statute does not lead to a contrary result when the statute is interpreted in light of its intended purpose. No statutory authorization for the imposition of consecutive sentences having been found, defendant’s sentences must run concurrently.
Remanded for resentencing. | [
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Per Curiam.
Pursuant to a plea bargain defendant pled guilty to unarmed robbery, MCL 750.530; MSA 28.798. Thereafter sentenced to a term of 7 to 15 years imprisonment, defendant appeals as of right.
On appeal it is defendant’s claim that his plea must be set aside for failure of the trial court to establish a factual basis for the plea and further because of an alleged illusory plea agreement. With defendant’s latter argument we agree and accordingly reverse.
Defendant’s plea, in the instant case, was entered on September 25, 1979, which was subsequent to the Supreme Court’s decision in People v Fountain, 407 Mich 96; 282 NW2d 168 (1979). Evidence in the record reveals that the prosecutor was aware of two prior convictions of the defendant as early as July, 1979. We also note that Fountain, supra, was a case which arose in the same county as that in which the defendant was charged in this case. Certainly the prosecuting attorney should be charged with being aware of that court’s decision in Fountain. Fountain, supra, held that a prosecutor who has knowledge of a defendant’s prior felonies must file habitual offender charges promptly, if at all. Hence an information charging same should have been filed promptly after the prosecutor had knowledge of Fountain. Yet this was not done. In fact, it never has been filed. This is true in spite of the fact that the prosecutor stated that part of the agreement was that the people would not proceed upon the habitual offender information which had already been filed.
In People v Martin, 100 Mich App 447, 459; 298 NW2d 900 (1980), this Court held that, after Fountain, a habitual offender information will not be considered "promptly” filed unless it is filed at least prior to the initiation of any plea negotiations. The Court in Martin went on to say:
"Use of the threat of supplementation in plea negotiations will always, it seems to us, carry with it the appearance at least of an attempt by the prosecutor to coerce a guilty plea which may not otherwise have been offered. Fountain changes the previous law, therefore, in that in order to avoid even the appearance of prose-cutorial impropriety it makes the Stratton/Hatt [People v Stratton, 13 Mich App 350; 164 NW2d 555 (1968), People v Hatt, 384 Mich 302; 181 NW2d 912 (1970)] procedure mandatory in the sense that failure to follow it will preclude the prosecution from proceeding on an habitual offender charge even absent a showing of prejudice to the defendant resulting, from delay in filing the supplemental information.”
Since in this case no habitual offender information was ever filed, much less prior to the initiation of any plea negotiations, we accordingly set aside defendant’s guilty plea and remand for trial.
Reversed and remanded. | [
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Bashara, P.J.
Defendant, Detroit Automobile Inter-Insurance Exchange, appeals a partial summary judgment granted to plaintiffs in their action to recover no-fault insurance benefits.
Plaintiff Francis Thompson became disabled as a result of injuries that he sustained in an automobile accident. Defendant, plaintiffs’ no-fault insurer, commenced payment of work-loss benefits to Francis Thompson. However, the benefits were reduced by the amount of social security disability benefits received by each plaintiff and their children.
Plaintiffs filed a two-count complaint seeking a declaratory judgment that defendant may deduct only the social security disability payments paid to Francis Thompson and not those paid to plaintiff Sarah Thompson and their children. The second count of the complaint seeks exemplary damages on the ground that defendant wilfully and wan tonly breached its policy, causing plaintiffs severe emotional distress.
Plaintiffs filed a motion for summary judgment pursuant to GCR 1963, 117.2(2) as to the first count. The trial court granted partial summary judgment to plaintiffs, holding that defendant may not reduce the wage-loss benefits by the amount of social security benefits received by plaintiff Sarah Thompson and the children.
On appeal, defendant alleges that the trial court erred in failing to construe the policy and the no-fault act as requiring setoff of social security benefits.
MCL 500.3109(1); MSA 24.13109(1) provides:
"Benefits provided or required to be provided under the laws of any state or the federal government shall be subtracted from the personal protection insurance benefits otherwise payable for the injury.”
The policy includes a comparable provision.
In O’Donnell v State Farm Mutual Automobile Ins Co, 404 Mich 524; 273 NW2d 829 (1979), app dis 444 US 803 (1980), the Court construed § 3109(1) as requiring setoff of social security survivors’ benefits received by the plaintiff from survivors’ benefits due under the no-fault act, MCL 500.3108; MSA 24.13108. In reaching its decision, the Court reviewed the legislative history of § 3109(1) and concluded,
"[T]he Legislature’s intent was to require a set-off of those government benefits that duplicated the no-fault benefits payable because of the accident and thereby reduce or contain the cost of basic insurance.” Id., 544.
In Mathis v Interstate Motor Freight System, 408 Mich 164, 187; 289 NW2d 708 (1980), the holding of O’Donnell was extended to require setoff of workers’ compensation benefits paid as the result of the same accident to the extent that they duplicate the no-fault benefits owing.
Justice Moody’s concurring opinion in Mathis noted that,
"[Significant questions were left unanswered in O’Donnell. * * * Indeed, issues regarding which governmental benefits may be deducted from no-fault benefits still remain largely unaddressed.” Id., 189-190.
We agree with Justice Moody’s observation that O’Donnell and Mathis do not hold that all government benefits must be set off against no-fault benefits under § 3109(1). Rather, where the government benefits duplicate the no-fault benefits, § 3109(1) is invoked.
Recently, in LeBlanc v State Farm Mutual Automobile Ins Co, 410 Mich 173; 301 NW2d 775 (1981), the Supreme Court concluded that Medicare benefits are not subject to the mandatory setoff of § 3109(1). Instead, the Court found applicable § 3109a, which allows coordination of other health and accident coverage by payment of a reduced premium to the insurer. Since the plaintiff in LeBlanc did not pay a reduced premium, he was entitled to recovery of both Medicare and no-fault benefits. Although LeBlanc was primarily concerned with interpretation of § 3109a, the opinion is germane to the controversy at bar. It again stated that the purpose of § 3109(1) is prevention of duplicative recovery. Id., 197.
Consequently, the issue before us requires review of the no-fault and social security benefits in order to determine whether they provide duplicate coverage.
No-fault work-loss benefits are calculated pursuant to § 3107(b). The benefits roughly correspond to the adjusted gross wages of the insured prior to an accident, subject to a statutorily imposed maximum. The number of dependents which the insured must support is not a factor in determining the amount of work-loss benefits owing.
Similarly, social security disability benefits paid to a wage earner are established by utilizing a formula involving his past wages. The number of dependents and their needs are not considered in establishing the wage earner’s disability benefits according to the evidence submitted in the trial court. Thus, work-loss benefits for loss of wages under the no-fault scheme is duplicative of social security disability benefits requiring setoff under § 3109(1).
However, review of the no-fault act reveals that there is no benefit corresponding to a wife’s or child’s insurance benefit under the Social Security Act, 42 USC 402. According to plaintiffs’ expert witness, those benefits are also calculated on the basis of the wage earner’s history of earnings. However, the benefits are for the support of the individual children and wife involved and remain payable even where the wife divorces the wage earner and obtains custody of the children.
Consequently, we conclude that the purpose for providing work-loss no-fault benefits to the insured is not the same as that for paying wife and child social security disability benefits. There being no duplication of benefits, the mandatory setoff provision is inapplicable.
Affirmed; no costs, a public question being involved.
According to plaintiffs’ brief, another suit is pending in the circuit court in which defendant is contesting whether or not wage-loss benefits are owing in any amount. This opinion does not address that issue as it was not raised below. We assume herein, as did the trial court for purposes of declaratory judgment, that defendant is liable under the terms of the insurance policy to plaintiffs for payment of no-fault benefits. | [
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After Remand
Before: Cynar, P.J., and Bronson and D. F. Walsh, JJ.
Per Curiam.
Defendants appeal as a matter of right from a modified judgment requiring them to pay plaintiffs’ attorneys’ fees in this class action suit. As will become clear below, this is the second appeal to this Court in this case.
Plaintiffs, motor vehicle repair facilities, originally brought this class action to recover motor vehicle repair facility registration fees collected by the defendants between March 1, 1976, and June 17, 1977, pursuant to the Motor Vehicle Service and Repair Act, MCL 257.1301 et seq.; MSA 9.1720(1) et seq. The trial court directed defendants to refund all registration fees collected from members of plaintiffs’ class during the aforementioned period. The defendants appealed. The pertinent facts pertaining to the first appeal are found in Thomas Bros, Inc v Secretary of State, 90 Mich App 179; 282 NW2d 273 (1979). There, this Court found that the registration fees were legally collected from March 1, 1976, through September 9, 1976. In addition, this Court found that the registration fees collected after September 9, 1976, but before July 22, 1977, were collected improperly because there were no validly promulgated registration fee rules in effect during this period. However, this Court permitted the defendants to retroactively apply validly promulgated rules and remanded the case to the trial court to determine whether any of the plaintiffs were overcharged during this period under the retroactively applied rules. The Supreme Court denied leave to appeal. 407 Mich 886 (1979).
On remand, the trial court awarded plaintiffs’ attorneys $153,203.50 in fees which were to be deducted from any refunds made to the plaintiffs. However, since the retroactively applied rules were identical to the rules under which the defendants had collected registration fees after Septem ber 9, 1976, but before July 22, 1977, there were no refunds.
Defendants now appeal the award of attorney fees to the plaintiffs. Plaintiffs contend that Bond v.Ann Arbor School Dist, 383 Mich 693; 178 NW2d 484 (1970), is apposite to the case at bar. There, the plaintiff in a class suit obtained a refund of fees which the school district had illegally charged its students. The Supreme Court held that attorney fees could be deducted from the sum of all such refunds before distribution of the sum to individual class members. This holding is consonant with Grigg v Michigan National Bank, 405 Mich 148; 274 NW2d 752 (1979), where the Court indicated that attorney fees "would be payable from the proceeds of the judgment prior to computation for distribution [among class members]”. Id., 192.
Bond and Grigg on their facts, however, do not dictate a judgment for plaintiffs’ attorneys in the instant case. In Bond and Grigg, the judgments yielded monetary proceeds which created a fund from which attorney fees could be deducted. In this case, judgment gave little succor to the plaintiffs. No fund was created which was to be distributed among plaintiffs’ class.
The rationale of Bond and Grigg tends to support a contrary holding in this case. Those cases merely allow attorneys litigating class action suits on a contingent fee arrangement or class representatives who undertake the burdens of financing the class action absent a contingent fee arrangement to deduct their fees or expenses from monetary judgments before the money is distributed among class members. Such a rule relieves attorneys and class representatives from the risky business of collecting fees and expenses from individ ual class members after distribution of the proceeds from judgment. If the rule were collection after distribution, few attorneys or class representatives would undertake class action litigation. The risk the attorneys in this case seek to eliminate, however, is the risk of losing. In every case, a litigant or an attorney undertakes the risk of having to bear the costs of litigation if he does not ultimately prevail. This is true in class actions, too. Bond and Grigg are not addressed to this kind of risk.
In this case, the plaintiffs and their attorneys must bear the consequences of their failure to prevail. As was previously mentioned, the plaintiffs failed to confer any economic benefit on members of their class.
Plaintiffs next argue that, since they succeeded in conferring a noneconomic benefit on their class in the form of an injunction ordering the defendants to refrain from illegally collecting registration fees, attorney fees should be awarded.
We find no Michigan cases considering whether attorney fees may be collected where the class obtains noneconomic benefits only. Fees are allowed for such noneconomic benefits in the federal courts if the benefit won is substantial. See, e.g., Mills v Electric Auto-Lite Co, 396 US 375; 90 S Ct 616; 24 L Ed 2d 593 (1970), Holodnak v Avco Corp, 381 F Supp 191 (D Conn, 1974), rev’d in part on other grounds 514 F2d 285 (CA 2, 1975). We believe the federal rule should be applied in Michigan. Various types of permanent injunctions can provide substantial noneconomic benefit to a class. In the instant case, however, plaintiffs obtained nothing of substantial value to them. Defendants’ mistake in establishing motor vehicle repair facility registration fees was in not following the com plex and elaborate procedures set forth in the Administrative Procedures Act, MCL 24.231 et seq.; MSA 3.560(131) et seq., by either extending the emergency fee rules in effect between March 1, 1976, and September 9, 1976, or by promulgating permanent fee rules. However, as this Court held in Thomas Bros, Inc, supra, 193-194, this failure did not deprive defendants of the right to collect fees for the period between September 9, 1976, and July 22, 1977. In fact, this Court’s holding specifically left open the possibility that the fees due could be greater than those actually paid during the period when monies were collected under the technically invalid rule. Thus, the injunction represented merely a Pyrrhic victory for the plaintiff class. It conferred no substantial benefit on the class. Although the injunction was not dissolved by the first appellate panel to hear this case, the injunction was obviated by the result of the panel’s holding that no registration fees had been illegally collected.
Plaintiffs finally argue that appellate review of the attorney fee issue is precluded since the defendants failed to raise the issue in their first appeal. Plaintiffs assert that the law of the case doctrine bars our consideration of this case. However, the law of the case doctrine applies only to an issue which was previously addressed in earlier proceedings between the same parties. Topps-Toeller, Inc v Lansing, 47 Mich App 720; 209 NW2d 843 (1973). In the case sub judice, the attorney fee issue was not addressed by the first appellate panel to hear this case. Furthermore, there was no need to raise the attorney fee issue in the first appeal. If defendants prevailed in that case on the merits of the substantive issues raised, the attorney award rendered below would, at a minimum, have to be modified. The reductio ad absurdum of plaintiffs’ argument is that even had they obtained absolutely no benefit following the appeal concerning the validity of the motor vehicle facility registration fees, they would still be entitled to attorney fees because this issue was not raised in the first appeal. By not raising the issue of attorney fees in the first appeal, defendants were merely conceding that if they lost that appeal on the merits, plaintiffs’ attorneys were entitled to the fees awarded by the trial court.
Reversed. No costs, a public question of first impression being involved. | [
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Per Curiam.
The defendant was charged with armed robbery in violation of MCL 750.529; MSA 28.797 and possession of a firearm during the commission of a felony in violation of MCL 750.227b; MSA 28.424(2). A jury convicted the defendant of the lesser-included offense of assault with intent to rob being armed, MCL 750.89; MSA 28.284, and found him not guilty of the felony-firearm charge. The defendant was sentenced to a term of from four to seven years in prison. The defendant appeals as a matter of right.
The complainant testified that on January 27, 1979, at 1 a.m., he was washing his car at a car wash when the defendant drove up in a burgundy Volare behind the car wash stall which the complainant was using and stated "give me your money or I’ll kill you”. The complainant stated that he didn’t pay much attention to the defendant until the defendant again threatened him. The complainant testified that he then turned a water sprayer which he was using toward the defendant. At some point during the incident, the complainant called to his friend, Joe Boyd, who was washing his car in a nearby stall, for assistance. Mr. Boyd testified that he went to the stall where the complainant was and picked up a water sprayer and started spraying the defendant. The complainant stated that the defendant pulled out a gun and pointed it at the complainant. The complainant’s testimony as to when the defendant produced a weapon was confusing. The complainant stated that the defendant pulled a gun from his waistband as he was getting out of his vehicle. Complainant also indicated that defendant pointed a gun out of the vehicle’s window. Mr. Boyd stated that defendant had something in his hands but that he could not see what the object was.
The complainant indicated that after he saw the gun he started running. Mr. Boyd also ran out of the car wash with him. After they had run across the street, the complainant realized that he had left his keys in his automobile. The complainant stated that he heard his car door slam and the engine start. The complainant saw his car being driven out of the car wash and onto Seven Mile Road. The complainant and Mr. Boyd ran back to the car wash, jumped into Mr. Boyd’s automobile and followed the complainant’s car down Seven Mile. At the corner of Seven Mile and Evergreen, the complainant’s car was involved in an accident. The defendant, who was driving the complainant’s car, ran away from the scene of the accident. Shortly thereafter, the defendant returned to the scene of the accident where Boyd and the complainant grabbed the defendant and searched him. The complainant stated that, although no gun was found in the defendant’s possession, a knife was found. No gun was found by the police officers investigating the alleged crime and none was produced at trial.
On appeal, defendant raises three issues. First, defendant contends that the jury’s verdicts of guilty of assault with intent to rob being armed and not guilty of possession of a firearm during the commission of a felony are inconsistent and therefore require reversal. This issue recently has been decided contrary to defendant’s contention. People v Vaughn, 409 Mich 463; 295 NW2d 354 (1980). In Vaughn, where the jury returned verdicts of guilty of felonious assault and not guilty of a felony-firearm charge, the Supreme Court, in reversing the Court of Appeals decision to vacate the defendant’s conviction, stated:
"Our Court has recognized the role of the jury in a criminal trial. 'Because the jury is the sole judge of all the facts, it can choose, without any apparent logical basis, what to believe and what to disbelieve. What may appeal to the judge as "undisputed” need , not be believed by a jury.’ People v Chamblis, 395 Mich 408, 420; 236 NW2d 473 (1975).
"Juries are not held to any rules of logic nor are they required to explain their decisions. The ability to convict or acquit another individual of a crime is a grave responsibility and an awesome power. An element of this power is the jury’s capacity for leniency. Since we are unable to know just how the jurors reached their conclusion, whether the result of compassion or compromise, it is unrealistic to believe that a jury would intend that an acquittal on one count and conviction on another would serve as the reason for defendant’s release. These considerations change when a case is tried by a judge sitting without a jury. But we feel that the mercy-dispensing power of the jury may serve to release a defendant from some of the consequences of his act without absolving him of all responsibility.” Id., 466.
In accordance with the Court’s holding in Vaughn, supra, the defendant’s conviction should not be vacated on the basis of inconsistent verdicts. Furthermore, the facts of the instant case indicate that a rational explanation for the jury’s verdicts exists. While the jury could have believed that defendant was not armed with the handgun and acquitted the defendant of the felony-firearm charge, the jury also could have believed that defendant was armed with a weapon when he assaulted the complainant and stole the car. Testimony at trial indicated that a knife was found in the defendant’s possession when he was searched. Thus, the jury could have decided that a dangerous weapon other than a firearm was used by defendant.
Secondly, defendant argues that the prosecutor improperly and prejudicially argued that the jury had a "duty” to find the defendant guilty. We are not so persuaded. We first note that the defendant’s counsel did not object to the prosecutor’s statement during trial. It is well settled that the absence of objection during trial precludes appellate review of alleged prejudicial remarks by a prosecutor in closing argument, unless the prejudicial effect was so great that it could not have been cured by a timely cautionary instruction. People v Rojem, 99 Mich App 452, 459; 297 NW2d 698 (1980), People v Tenbrink, 93 Mich App 326, 332; 287 NW2d 223 (1979), People v Blassingame, 59 Mich App 327, 335; 229 NW2d 438 (1975).
In some cases, a prosecutor’s appeal to the civil duty or social fears of the jurors has been held to constitute error requiring reversal. See People v Biondo, 76 Mich App 155; 256 NW2d 60 (1977), lv den 402 Mich 835 (1977), People v Gloria Williams, 65 Mich App 753; 238 NW2d 186 (1975), People v Humphreys, 24 Mich App 411; 180 NW2d 328 (1970). In general, "civic duty” arguments are condemned because they inject into the trial issues broader than a particular defendant’s guilt or innocence of the charges and encourage the jurors to suspend their own powers of judgment. For example, in Biondo, supra, this Court ruled that the prosecutor’s attempt to cajole the jury into believing that a guilty verdict would be a substantial act toward saving Detroit from financial ruin was prejudicial and not relevant to the guilt or innocence of the defendant. See People v Edward Villarreal, 100 Mich App 379; 298 NW2d 738 (1980). Additionally, it has been held that the prosecutor may not change subtly a presumption of innocence to a presumption of guilt by appealing to the jurors to perform a civic duty to support the police. People v Farrar, 36 Mich App 294; 193 NW2d 363 (1971).
In the present case, it cannot be said that the prosecutor’s remarks were so prejudicial that they could not have been cured by a cautionary instruction. There was no appeal to support the police or to save the city from crime. The prosecutor’s remarks did not inject into the trial broader issues than guilt. People v Rone (On Remand), 101 Mich App 811, 825; 300 NW2d 705 (1980). The defendant apparently recognizes the weakness of his argument since he attacks the statement from the approach that defense counsel’s failure to object denied him effective assistance of counsel. This tactic must also fail in that defense counsel’s failure to object cannot be said to have denied defendant a fair trial or resulted in a serious mistake, the absence of which would have resulted in defendant’s acquittal. See People v Garcia, 398 Mich 250; 247 NW2d 547 (1976), People v Degraffenreid, 19 Mich App 702; 173 NW2d 317 (1969).
Lastly, defendant contends that the prosecutor erroneously argued in the closing argument that certain facts and issues were either uncontested, conceded, or admitted. On this record, we are not persuaded that such remarks mandate reversal.
It should be noted first that a prosecutor’s statement that certain evidence is uncontradicted has been upheld on numerous occasions. People v LeRoy Morgan, 24 Mich App 660; 180 NW2d 842 (1970), People v Jacoboni, 34 Mich App 84; 190 NW2d 720 (1971), lv den 385 Mich 789 (1971), People v Balog, 56 Mich App 624; 224 NW2d 725 (1974), People v Rodriguez, 83 Mich App 606; 269 NW2d 199 (1978). Additionally, these cases have held that such prosecutorial remarks are not comments on the failure of the defendant to testify. Thus, the prosecutor’s statement regarding the uncontested testimony that defendant had a gun was proper.
Further, assuming that the prosecution erred by making reference to "conceded” facts, we are not persuaded that the effect was so prejudicial as to mandate reversal. The trial court sustained defendant’s objection to "conceded” facts and also affirmatively cautioned the jury that nothing was to be considered conceded. Therefore, we find no error requiring reversal.
Defendant’s conviction is affirmed. | [
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Per Curiam.
Defendant was charged with driving a motor vehicle while under the influence of intoxicating liquor, MCL 257.625; MSA 9.2325. After a bench trial, defendant was found guilty of operating a motor vehicle while his ability was visibly impaired due to the consumption of intoxicating liquor, MCL 257.625b; MSA 9.2325(2). Defendant was ordered to pay a fine of $200 or to serve 20 days in the Detroit House of Corrections. Defendant appeals as of right.
At trial, the judge of the Recorder’s Court denied defendant’s motion to dismiss the charges. Defendant’s motion to dismiss was based upon his contention that a prior circuit court restoration of defendant’s driver’s license was relevant to his criminal trial and would lead the trial court to conclude that defendant was denied a requested Breathalyzer test.
Defendant asserts that it was error for the trial judge to find defendant guilty of operating a motor vehicle while visibly impaired because defendant was refused the opportunity to take the Breathalyzer test. Although the trial judge did not specifically state whether or not he found defendant had been refused the Breathalyzer test, a judge’s failure to find facts does not require remand where it is manifest that he was aware of the factual issue, he resolved it, and it would not facilitate appellate review to require further explication of the path he followed in reaching the result. People v Robert Jackson, 390 Mich 621, 627, fn 3; 212 NW2d 918 (1973), People v Smith, 101 Mich App 110; 300 NW2d 470 (1980), People v Green, 32 Mich App 482; 189 NW2d 122 (1971), People v George Scott, 21 Mich App 217-218; 175 NW2d 312 (1970). The trial judge made specific findings upon which he based his judgment that the defendant was visibly impaired. We infer from the trial judge’s findings that he found defendant was not refused the opportunity to take a Breathalyzer test because, after the defendant’s motion to dismiss, the trial judge stated that he was aware of the law but that he would proceed to determine the factual issues. The determination of whether defendant was denied the opportunity to take a Breathalyzer test was a factual issue. The trial judge found the defendant guilty of operating a motor vehicle while visibly impaired. Therefore, it my be in ferred that the trial court did find that the defendant was not denied the opportunity to take the Breathalyzer test.
Findings by a trial judge sitting in a nonjury trial will be reviewed in accordance with GCR 1963, 517.1, which provides in pertinent part:
"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.”
A finding is clearly erroneous when "although there is evidence to support it, the reviewing court on the entire evidence is left with a definite and firm conviction that a mistake has been committed”. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976).
We find that in the present case there was sufficient evidence to support the court’s finding that the defendant was not refused an opportunity to take a Breathalyzer test. Although the defendant maintained that he requested the Breathalyzer test after being in the police station for about 45 minutes, the police officer testified that within one hour he had asked defendant three times whether he wanted to take this test and each time defendant refused. Pursuant to GCR 1963, 517.1, we will give special regard to the trial court’s opportunity to judge the credibility of these witnesses who appeared before it. Apparently, the trial judge chose to believe the police officer. We find that the trial court did not err in finding that defendant was not denied his opportunity to take a Breathalyzer test and was guilty of operating a motor vehicle while visibly impaired.
Defendant next maintains that the findings of the circuit court hearing restoring his driver’s license should be binding on the Recorder’s Court in his trial on the charge of driving a motor vehicle while under the influence of intoxicating liquor. Defendant cités no law in support of this proposition.
If a driver, arrested for drunk driving, refuses to take a Breathalyzer test, his or her driver’s license is automatically suspended for 90 days unless the driver requests a hearing. MCL 257.625Í; MSA 9.2325(6). Defendant’s driver’s license was suspended and then restored by circuit court order after a hearing. Defendant maintains that the circuit court found that he had been denied the opportunity to take a Breathalyzer test and that that finding should be binding in the Recorder’s Court trial on the charge of drunk driving.
The Recorder’s Court was not provided with a transcript of the circuit court proceedings. At the circuit court hearing, no police testimony was taken, therefore, defendant’s testimony was uncon-troverted. Defendant’s attorney stated that defendant called him after he was arrested and he advised defendant to take the Breathalyzer test. The circuit court found that defendant’s attorney offered corroborative evidence of the fact that defendant asked for a Breathalyzer test. That court also stated that it was satisfied that defendant was willing to take the test and, therefore, the license should be restored.
We find that the findings of the circuit court were not binding on the Recorder’s Court. First, although the circuit court found that the defendant was willing to take the test, it did not specifically state, as defendant contends, that the defendant was denied the opportunity to take the test. The circuit court did not have the opportunity to hear the testimony of the police officers. The Secretary of State, who was the respondent in the circuit court proceedings, presented no witnesses. Second, the proceedings in the circuit court were civil in nature, and the proceedings in the Recorder’s Court were criminal, therefore, the burdens of proof were not the same. Third, the issues presented in the two court proceedings were not the same. In circuit court, the issue was whether the defendant was entitled to continuation of the privilege of operating a motor vehicle. In Recorder’s Court, the issue was whether, beyond a reasonable doubt, defendant had violated MCL 257.625; MSA 9.2325. Finally, in other jurisdictions where the hearing on the revocation of one’s driver’s license was held subsequent to the defendant’s acquittal on a drunk driving charge, the fact of an acquittal of the criminal charge was not binding on a subsequent court in a hearing on the revocation of a driver’s license. Prucha v Dep’t of Motor Vehicles, 172 Neb 415; 110 NW2d 75 (1961), Combes v Kelly, 2 Misc 2d 491; 152 NYS2d 934 (1956), Anderson v MacDuff, 208 Misc 271; 143 NYS2d 257 (1955). We apply the rationale of these cases to the present case even though the order of proceedings is reversed. The defendant’s conviction is affirmed.
Affirmed. | [
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Per Curiam.
Defendants Gaskill and Weaver, along with a third individual, were arrested and charged with possession of marijuana with intent to deliver contrary to MCL 333.7401(1), and (2)(c); MSA 14.15(7401)(1), and (2)(c). Defendants Gaskill’s and Weaver’s applications for leave to appeal were granted by this Court after the trial court denied their motions to suppress evidence obtained without a warrant.
The pertinent facts are as follows. A patrolman and a reserve officer on patrol in a police vehicle in the City of Bronson noticed a car that crossed the center line of the road on two occasions. Weaver was the driver of the car and defendant Gaskill was the front seat passenger in the subject car. The car did not stop immediately after the police vehicle’s flashing light and spotlights were turned on. The officers testified that the car was pulled over because of the possibility that the driver was operating the vehicle while under the influence of alcohol.
After the vehicle came to a stop, the driver, Weaver, was asked to produce and did produce his driver’s license and vehicle registration. Officer Archambeau then requested that the driver exit from the car and undergo a sobriety test at the rear of the car. The driver performed the test in a manner which led the officer to believe that he was not under the influence of alcohol. During the time that the driver was complying with the officer’s request to produce the identification and to exit from the vehicle, the officer was shining his flashlight into the passenger compartment of the vehicle. The officer testified that this was when he saw a small brown box on the floor of the vehicle by the front seat passenger’s leg and that, even though he could not tell exactly what was in the box, he believed that he saw a small amount of marijuana and some rolling papers in the open box.
The driver got back into the automobile, and the two policemen met at the back of the subject vehicle. The two officers had a discussion, and Officer Archambeau asked Officer Sloane if he noticed anything. Sloane, the reserve officer, said that he thought he saw defendant Gaskill put something into his boot and that he would like to see what it was. Archambeau went to the passenger’s side of the vehicle and requested identification from defendant Gaskill and the passenger in the rear seat. At this time Archambeau testified that he observed the box that contained marijuana on the floor of the vehicle. He had the front and backseat passengers exit from the vehicle and took the box containing a small amount of marijuana from the floor of the vehicle. He then asked Weaver if there was anything else. Whereupon, Weaver gave Archambeau a plastic container which enclosed an even smaller amount of mari juana than was in the box. All of the occupants of the vehicle were searched. A roundish ball wrapped in plastic was found in Weaver’s sock. The officer believed that this substance was hashish. A roll of bills, later found to total over $6,000, was retrieved from the boot of defendant Gaskill.
The three subjects were placed in the rear seat of the police vehicle, and Officer Archambeau conducted a search of the interior of the subject car, a 1976 Lincoln Continental. The officer testified that at the time of the full search of the vehicle’s interior, after the three subjects had been searched and placed in the police vehicle, the engine of the Lincoln may still have been running. He testified that he searched under the seats and dashboard and in the glove compartment before turning the ignition off and placing the key on the dashboard of the stopped vehicle. After completing the search of the interior of the Lincoln, Archam-beau testified that he walked to the back of that vehicle and noticed that the trunk lid was ajar. He noticed this for the first time after completing the search.
At this point, the officer’s testimony given at the preliminary examination differs from that given during the trial. At the preliminary examination, Archambeau testified that the trunk lid was open from six to eight inches. During that proceeding the following colloquy took place:
”Q. [Attorney for Defendant Weaver]: Now what did you observe before you lifted the trunk lid?
’A. The trunk was open.
"Q. Did you see anything in the trunk?
"A. From the angle that I was standing, no, sir.
”Q. Why did you lift the trunk lid?
"A. Curiosity.
"Q. So, after you raised the trunk lid, what did you do?
“A. I looked in the interior of the trunk.
”Q. And, then, what did you do?
’A. That’s when I found the paper sack that was open at the top, apparently had what appeared to be marijuana in two plastic bags [sic].
"Q. What was the position of this bag?
’A. Almost center of the trunk and maybe several inches back.”
Proceeding with the search of the trunk, the officer found two garbage-type bags, opened them, and found marijuana. He also searched luggage and a camera bag that were in the trunk and found nothing.
Officer Archambeau testified that he conducted three reenactments after the evening of the stop to determine how the trunk lid opened, including an examination on the day that the vehicle was formally searched pursuant to a warrant, July 2, 1979, one day after the stop.
Defendant Gaskill raises three issues on appeal. The first of these is whether the trial court erred in denying the defendant’s motion to suppress the small plastic saltshaker containing the marijuana that was handed to the officer after he asked Weaver if there was anything else. Defendants contend that admission of the container constituted error because the evidence was obtained through a violation of defendant Weaver’s right to remain silent pursuant to Miranda. After the box containing the small amount of marijuana was found, Weaver was asked if he had anything more. Weaver responded, "yes”, and handed the police officer the saltshaker. At the time of the question and the handing over of the container, all three subjects assert that they had not been placed under arrest. The officer asserts that the subjects were placed under arrest after the box was discovered when they were asked to exit from the vehicle. Regardless of when the subjects were formally arrested, it is uncontroverted that at the time the officer asked Weaver if he had anything else none of the defendants had been apprised of their Miranda rights.
We will presume that the search of the defendants’ persons was or would have been made incident to the arrest for possession of the marijuana in the box that was found on the floor of the vehicle. Because we are not convinced that the defendants had been apprised of the fact that any statement made by them could be used against them, the handing over of the shaker container was a demonstrative statement made without benefit of Miranda warnings and without the defendants’ knowing waiver of their known right to remain silent. The shaker container given to the officer by Weaver in response to the officer’s question whether there was anything else must be suppressed and not allowed to be used as evidence of any crime.
Defendants next claim that the trial court erred in allowing the marijuana seized by the officers from the trunk of the stopped vehicle to be presented as evidence of the defendants’ guilt on the charge of possession.
After all three subjects had exited from the vehicle and the search which produced the box, the hashish, and the money had been conducted, after the money was counted, and after the subjects were put into the patrol car, Officer Archam-beau proceeded to search the Lincoln’s front and back seat area, on and under the dashboard, and in the glove compartment. At the preliminary examination, Officer Archambeau testified that he was searching for alcohol even though he had earlier determined from his sobriety test, conducted at the rear of the Lincoln, that the driver was not drunk. Nothing incriminating was found during this search of the vehicle’s interior. The officer did not recall whether the auto was running during this search. While he was engaged in searching the vehicle, the officer testified that he heard a noise at the rear of the Lincoln. Later, after he had finished his search, he walked to the back of the Lincoln at which time he noticed that the trunk was open. At the preliminary examination, the officer testified that the trunk was open from six to eight inches. During trial he testified that the trunk was open from two to three inches. But, he was not able to testify with certainty about the opening and was not able to explain the inconsistency in his testimony. At all times, the officer testified that he reached under the lid of the trunk and lifted it up.
It was the officer’s contention that during his search of the glove compartment he accidentally must have pushed (or a can opener which may or may not have been wedged in the glove compartment may have pushed) the electronic trunk release button located in the glove compartment. The button was estimated to be from 1/2 to 3/4 inches in diameter and was marked "Trunk”. The officer testified that he had been aware of such devices before the night of the stop of the Lincoln. Both of the police vehicles in use in this jurisdiction were similarly equipped. It is necessary that the Lincoln engine have been running or at least that its ignition have been turned on for the trunk release to operate. The officer testified that it was not unusual for him to have subjects exit from a vehicle before turning the vehicle off. For the engine to have been running before the glove compartment door was slammed by the officer who then heard the noise of the trunk’s opening at the rear of the vehicle, the vehicle would have been stopped at the side of the road at 2 a.m. for an estimated 45 to 50 minutes, still running.
This Court must determine whether the findings of the trial court on the defendant’s motion to suppress were clearly erroneous. People v Dunlap, 82 Mich App 171; 266 NW2d 637 (1978).
A search conducted without a warrant is unreasonable per se, the burden being upon the government to show that the search falls within a recognized exception to the warrant requirement. Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971).
One exception to the requirement for a search warrant lies when the search of a party without a warrant in an area within his immediate control is conducted as incident to, and contemporaneous with, a valid arrest. Chimel v California, 395 US 752; 89 S Ct 2034; 23 L Ed 2d 685 (1969). The protection of the arresting officers and the prevention of the destruction of evidence are the bases for this exception.
Another exception to the warrant requirement is recognized where the police stop an automobile on the highway or street and the police have probable cause to believe that it contains contraband or evidence of a crime. Carroll v United States, 267 US 132; 45 S Ct 280; 69 L Ed 543 (1925).
"In Chambers v Maroney, 399 US 42, 51; 90 S Ct 1975; 26 L Ed 2d 419 (1970), the Supreme Court explained when the warrantless search of an automobile under Carroll is constitutional:
" 'Only in exigent circumstances will the judgment of the police as to probable cause serve as a sufficient authorization for a search. Carroll, supra, holds a search warrant unnecessary where there is probable cause to search an automobile stopped on the highway; the car is movable, the occupants are alerted, and the car’s contents may never be found again if a warrant must be obtained. Hence, an immediate search is constitutionally permissible.’ ” Dep’t of Natural Resources v Hermes, 101 Mich App 517; 301 NW2d 307 (1980).
This Court has recently held in People v Dugan, 102 Mich App 497, 505; 302 NW2d 209 (1980), the longstanding principle concerning searches without warrants: "Probable cause, no matter how strong, does not alone justify a warrantless intrusion onto private property.” That case involved an officer entering a garage and finding a snowblower which had been reported to have been stolen before any "exigent circumstances” indicated that he should enter the defendant’s garage without a warrant to conduct the search. That case also discusses what is entailed in "exigent circumstances”:
"The 'exigent circumstances’ exception provides that when the police have probable cause to believe that a search of a certain place will produce specific evidence of that crime (the foundation requirements for issuance of a search warrant), there is no need for a warrant if the police also have probable cause to believe that an immediate warrantless search is necessary in order to (1) protect the officers or others, (2) prevent the loss or destruction of evidence, or (3) prevent the escape of the accused. People v Harris, 95 Mich App 507, 510; 291 NW2d 97 (1980). See United States v Chadwick, 433 US 1; 97 S Ct 2476; 53 L Ed 2d 538 (1977), People v Plantefaber, 91 Mich App 764, 770; 283 NW2d 846 (1979). The rationale of the exception is clear; when the police have the probable cause necessary to secure a warrant, but circumstances make it impossible for them to obtain the warrant in time, then it is 'reasonable’ under the Fourth Amendment to conduct a search and to seize evidence or contraband. See United States v Guidry, 534 F2d 1220, 1222-1223 (CA 6, 1976).” 102 Mich App 503.
This Court in People v Robert L Thompson, 81 Mich App 54; 264 NW2d 118 (1978), held that a search of vehicle was valid where the police officer stopped the vehicle and detected the odor of burning marijuana and validly placed the defendant under arrest at that time after the traffic stop. The Thompson Court quoted People v Whalen, 390 Mich 672; 213 NW2d 116 (1973), when it said:
"We note that the search in this case was of a motor vehicle. The standard used to determine the validity of such a search was enounced in People v Whalen, supra.
" T. Reasonableness is the test that is to be applied for both the stop of, and the search of moving motor vehicles.
" '2. Said reasonableness will be determined from the facts and circumstances of each case.
" '3. Fewer foundation facts are necessary to support a finding of reasonableness when moving vehicles are involved, than if a house or a home were involved.
" '4. A stop of a motor vehicle for investigatory purposes may be based upon fewer facts than those necessary to support a finding of reasonableness where both a stop and a search is [sic] conducted by the police.’ 390 Mich at 682.
"Applying the Whalen standard in this case, we find that the officer possessed sufficient evidence and information on which to make a warrantless search of defendant’s automobile.” 81 Mich App 57.
We distinguish the present case from Thompson. Although both stops were predicated on observed traffic violations and both investigations resulted in the discovery of a controlled substance, marijuana, we must distinguish the search of the interior of the subject’s car from that of the trunk.
While adhering to the Whalen criteria for the standard of the validity of a search of a motor vehicle, we find that although the stop of the vehicle in the instant case may have been reasonable, and the search of the interior of the vehicle may have been reasonable under the circumstances, the opening of the trunk by the officer and the search of the trunk and the articles within the trunk cannot be deemed reasonable under the circumstances. The vehicle was entirely under the control of the authorities after the three subjects exited from the vehicle and were placed in the police cruiser. A wrecker service was summoned to tow the vehicle to the appropriate impoundment lot, and the police could have, and indeed did, secure a search warrant which was executed in less than 24 hours from the time of the stop. A valid search was then performed and nothing more of consequence was found.
We find that the lifting of the lid of the trunk and the search of the interior of the trunk without a warrant and without the exigencies which would validate such a search to be the type of police conduct which shall not be condoned by the courts. Therefore, we reverse the trial court’s denial of the motion to suppress the evidence seized pursuant to the search of the trunk. Because we have held that the initial search of the trunk without a warrant was improper, it is not necessary to reach the question of the propriety of the officer’s search of the bags and containers which were in the trunk.
Reversed and remanded.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966). | [
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Per Curiam.
Defendant pled guilty to conspiracy to commit larceny under $100. MCL 750.157a, 750.356; MSA 28.354(1), 28.588. Defendant was sentenced to two years probation, with the first year to be served in jail as a condition of probation. Defendant appeals as of right.
Defendant first claims that he was deprived of effective assistance of counsel because his attorney failed to argue at the sentencing hearing that defendant’s alleged co-conspirator, who had pled guilty to receiving and concealing stolen property under $100, was sentenced to only six months probation with no jail time, and that the court should consider this factor in mitigation of defendant’s sentence. This claim is without merit. Sentences are to be individualized and tailored to fit the offender. People v McFarlin, 389 Mich 557, 574; 208 NW2d 504 (1973). There is no require ment that a court consider the sentence given to a co-participant in the crime in sentencing a defendant. People v Dorsey, 104 Mich App 528, 529; 305 NW2d 257 (1981). We decline to find defendant’s counsel ineffective for failing to argue a point which the sentencing court was not required to consider.
Defendant also argues that, because the statutory maximum sentence for the offense of which he was convicted is one year imprisonment, once he has served the one year imposed by the court he may not then be required to serve any additional probation period. We agree. There is no dispute that the maximum sentence of imprisonment which could be imposed on defendant is one year. The offense of larceny under $100 is a misdemeanor, MCL 750.356; MSA 28.588, and is punishable by imprisonment of not more than 90 days, MCL 750.504; MSA 28.772. Consequently, for the crime of conspiracy to commit larceny under $100, the maximum period of incarceration is one year under MCL 750.157a(c); MSA 28.354(l)(c).
The probation term of two years imposed by the court was within the statutory maximum provided in MCL 771.2(1); MSA 28.1132(1). Also, the court was statutorily authorized to impose the one-year sentence as a condition of probation under MCL 771.3(2)(a); MSA 28.1133(2)(a). However, once defendant has served that one-year sentence, he will have served the maximum period of imprisonment authorized by statute. Therefore, even if defendant subsequently violates the terms of his probation, he cannot be punished with any additional imprisonment because, once he is given credit for the one year that he has served, People v Sturdivant, 412 Mich 92; 312 NW2d 622 (1981), he will have already served the maximum imprisonment autho rized by statute. The sentencing court’s imposition of a period of probation to succeed defendant’s completion of the one-year jail sentence, the statutory maximum, is meaningless since the terms of probation would not be enforceable. Once the maximum sentence has been served, any additional sentence imposed is void and must be vacated. People v Rose, 117 Mich App 530, 536-537; 324 NW2d 25 (1982) (one-year maximum sentence already served, so additional sentence of three years probation vacated); see also People v Dorsey, 107 Mich App 789, 792; 310 NW2d 244 (1981). Therefore, we vacate defendant’s sentence to the extent it would impose a period of probation after defendant has completed serving the one year of imprisonment.
Affirmed, with defendant’s sentence being partially vacated. | [
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Per Curiam.
Claimant appeals as of right from an order entered in the Genesee County Circuit Court which affirmed a decision of the Michigan Employment Security Commission (MESC) reducing his unemployment benefit from $97 to $21 each week.
Claimant was employed by respondent as a teacher for approximately 23 years, retiring on July 1, 1978. During his employment, claimant contributed $14,615.13 to his retirement fund, while respondent contributed $3,223.80. Contributions to claimant’s retirement fund were also made by the State of Michigan by virtue of statutory provisions now embodied in MCL 38.1301 et seq.; MSA 15.893(111) et seq.
After being penalized the appropriate number of weeks as a consequence of his voluntary retirement, claimant began to receive unemployment benefits. MESC determined that claimant was entitled to a benefit base of $97 per week. However, because claimant was receiving a retirement benefit from a plan to which he had contributed less than half of the cost, MESC reduced his unemployment benefit by $76, representing 50% of claimant’s weekly benefit from his retirement plan.
Claimant challenged this reduction of his unemployment benefits. The matter progressed to a referee’s hearing, and the referee determined that the reduction was proper. Claimant appealed to the MESC Board of Review, which affirmed the referee’s decision.
Claimant then sought review of the MESC determination in the circuit court. In April, 1981, the court remanded the matter to the MESC for additional testimony concerning whether claimant’s contributions to his retirement fund constituted at least half of the cost of his retirement benefits.
On remand, Morris Bogrow, of the Department of Management and Budget, gave testimony before the same referee who had originally determined the propriety of the reduction in claimant’s unemployment benefits. Bogrow testified that claimant receives a monthly retirement benefit of $664.58. He further indicated that $131.13 of this benefit was from an annuity funded entirely out of claimant’s contributions, while the balance, $533.45, was a pension benefit funded entirely by respondent and the State of Michigan.
Based upon this testimony, the referee reaffirmed his earlier decision. Upon consideration of the supplemented record, the circuit court affirmed the decision of the referee.
To provide a full understanding of this case, it is necessary to briefly discuss the statutory scheme governing those situations in which a former worker receiving pension benefits also seeks unemployment benefits. For noncontributory pension plans (i.e., no employee contributions) which are financed in part by the employer who is chargeable for unemployment benefits, the claimant’s weekly unemployment benefit rate is reduced by an amount equal to the sum that the claimant receives in weekly retirement benefits. MCL 421.27(f)(1); MSA 17.529(f)(1). However, for contributory pension plans, MCL 421.27(f)(4)(b); MSA 17.529(f)(4)(b) provides:
"If a benefit such as described in subparagraph (a) is payable or paid to the individual under a plan to which the individual has contributed:
"(i) Less than half of the cost of the benefit, then only half of the benefit shall be treated as a retirement benefit.
"(ii) Half or more of the cost of the benefit, then none of the benefit shall be treated as a retirement benefit.”
Claimant asserts that MESC and the circuit court committed legal error in the method used to determine whether he contributed at least half of the cost of his retirement benefits. Claimant argues that this determination should have been made by a simple comparison of his contributions to his retirement fund to respondent’s contributions to this fund. We disagree.
A statute which is unambiguous on its face must be applied as written and is not open to further interpretation or construction of its terms. Charter Twp of Pittsfield v City of Saline, 103 Mich App 99, 104; 302 NW2d 608 (1981). We see no ambiguity in. the statute. Reading MCL 421.27(f)(1); MSA 17.529(f)(1) in conjunction with MCL 421.27(f)(4)(b); MSA 17.529(f)(4)(b), it is clear that, if the employer "has contributed” to the retirement plan, unless the employee also contributing to the plan provided more than half of the cost of the benefits, that employee’s unemployment compensation benefits must be reduced. Nothing in the statute suggests that the Legislature intended that the employer’s contributions simply be compared to the employee’s in determining if a reduction is proper.
Claimant’s reliance on In the Matter of Doris E Baird, MESC Appeal Docket No. B77-6623-55675, released December 7, 1978, and In the Matter of Alice G Shank, MESC Appeal Docket No. B7816306, released January 18, 1979, is misplaced. In those cases, although each claimant had not contributed at least half of the cost of the retirement benefits, the school district employer had contributed nothing to either claimant’s retirement fund. Instead, the State of Michigan had provided the major portion of the funds used to provide each claimant with her' pension benefits. In Baird, the MESC relied upon OAG, 1975-1976, No 5010, p 467 (May 20, 1976). There, the Attorney General determined that no reduction in unemployment benefits is permissible where a school district employer chargeable for unemployment benefits has contributed nothing to a teacher’s retirement fund. This opinion was premised on the finding that the State of Michigan could not be deemed a chargeable employer of public school employees pursuant to MCL 421.27(f)(1); MSA 17.529(f)(1). Shank simply relied upon Baird in reaching the same conclusion.
We express no opinion on the validity of the Attorney General’s construction of MCL 421.27(f); MSA 17.529(L. Suffice to say that the Attorney General’s opinion, Baird and Shank are easily distinguishable from this matter in that here respondent did contribute to claimant’s retirement fund.
Affirmed. No costs, a public question of first impression concerning the proper construction of a statute controlling the disposition of this case.
Following the first hearing, based upon claimant’s life expectancy of 14.78 years as calculated using the mortality table embodied in MCL 500.834; MSA 24.1834, the referee ascertained that claimant, if he lived out the duration of his life expectancy, would receive $117,869.90. No evidence had been adduced to show whether claimant’s contributions to his retirement fund would or would not constitute one-half or more of the costs of these benefits. Based upon the disparity between claimant’s contributions and the retirement benefits he would likely receive, the referee found it impossible to believe that claimant had contributed more than half of the cost of these benefits. Due to the lack of evidence on this issue, the circuit court remanded for further proceedings. We note that MCL 421.27(f)(4)(c); MSA 17.529(f)(4)(c) imposes on the employer the burden of proving the extent of an employee’s contributions to the cost of his retirement fund. | [
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Per Curiam.
Defendant appeals as of right from a judgment of Wayne Circuit Court Judge Thomas Roumell ordering it to pay COLA benefits to certain Wayne County Sheriff’s Department retirees for the period of July 1, 1977, through December 1, 1981.
Judge Roumell’s order was issued as a result of a show cause hearing which culminated five years of litigation over the issue of whether the county was bound by an arbitration award (the Haber Award), pursuant to MCL 423.231 et seq.; MSA 17.455(31) et seq. (1969 PA 312), which awarded COLA benefits to certain sheriff’s department retirees.
At the hearing, the county conceded its liability for COLA payments to the retirees of plaintiff Local 502-M, but contested the length of the con tract and, hence, the period for which COLA payments were owed. It also challenged the status of certain "retirees” whom the plaintiff claimed were entitled to COLA benefits. The matter of the identity of retirees was not appealed by defendant. However, the parties could not agree as to the length of the contract under which the retirees were entitled to COLA benefits.
The primary issue on appeal is whether the trial court’s determination that the terms of the Haber Award obligated the county to pay COLA benefits to Local 502-M retirees through December of 1981, as opposed to through November 30, 1979, was correct.
The contested provision of the contract states:
"Duration of Agreement
"This Agreement shall be effective July 1, 1977 and shall remain in full force and effect through November 30, 1979. Wages (including overtime, but excluding the new triple time rate and differential pay), dental insurance, cost of living allowance, and mileage shall be retroactive to July 1, 1977. The uniform allowance provision is retroactive to March 1, 1978. The provisions for Corporal; Senior Detective and the new specialty pay are to be effective July 1, 1978. Other financial provisions of the contract shall be effective July 1, 1978, along with sections dealing with hours and conditions of employment.
"This Agreement shall continue in effect for consecutive yearly periods after November 30, 1979, unless notice is given, in writing, by either the Union or the Employer to the other party at least sixty (60) days prior to November 30, 1979, or any anniversary date thereafter, of its desire to modify, amend, or terminate this Agreement.
'Tf such notice is given, this Agreement shall be open to modiñcation, amendment, or termination, as such notice may indicate, on December 1, 1979, or the subse quent anniversary date, as the case may be.” (Emphasis supplied.)
At the show cause hearing, defendant presented evidence that plaintiff union attempted to negotiate a new contract prior to November 30, 1979, the contract’s originally scheduled expiration date. On this basis, defendant argues that the contract was effectively terminated on its originally scheduled expiration date.
Plaintiff presented evidence that it did not receive written notice of termination until September 25, 1981. Plaintiff argued that the contract, therefore, did not expire until December 1, 1981. The trial court agreed with plaintiffs reading of the contract’s "Duration of Agreement” clause and awarded COLA benefits for a contract period ending December 1, 1981.
We first note that the cases relied upon on appeal by both parties involve the interpretation of termination or modification clauses in labor contracts under the NLRA, and involve relationships between private unions and private employers which implicate employees’ statutory rights to strike. By contrast, the "Duration of Agreement” clause in the contract in the case at bar must be decided with reference to public employees’ rights to bargain collectively under PERA.
In particular, the contested clause in the case at bar is part of a contract that resulted from compulsory arbitration under 1969 PA 312, MCL 423.240; MSA 17.455(40), which states:
"Sec. 10. A majority decision of the arbitration panel, if supported by competent, material, and substantial evidence on the whole record, shall be final and binding upon the parties, and may be enforced, at the instance of either party or of the arbitration panel in the circuit court for the county in which the dispute arose or in which a majority of the affected employees reside. The commencement of a new municipal fiscal year after the initiation of arbitration procedures under this act, but before the arbitration decision, or its enforcement, shall not be deemed to render a dispute moot, or to otherwise impair the jurisdiction or authority of the arbitration panel or its decision. Increases in rates of compensation [or other benefits may be] awarded [retroactively] to the commencement of [any period(s) in dispute,] any other statute or charter provisions to the contrary notwithstanding. At any time the parties, by stipulation, may amend or modify an award of arbitration.” (Emphasis supplied.)
While the decisions relied on by the parties are instructive, they must be considered with reference to the fact that under the public employment relations act and 1969 PA 312, the members of plaintiff Local 502-M have no right to strike. See MCL 423.202; MSA 17.455(2). In lieu of the right to strike, the union is entitled to resort to the compulsory arbitration procedure of MCL 423.240; MSA 17.455(40).
In Kaufman & Broad Home Systems, Inc v International Brotherhood of Firemen & Oilers, AFL-CIO, 607 F2d 1104 (CA 5, 1979), the Fifth Circuit held that, under a duration of agreement clause in that contract, notice to terminate or to modify the contract acted to prevent automatic extension of the contract into the future. The pertinent contract language in Kaufman stated:
"Section 1. This Agreement shall become effective as of November 13, 1967, and shall remain in effect until November 12, 1970, and from year to year thereafter with the provision that should either party desire to terminate this Agreement or to modify any part thereof, it shall notify the other party in writing no less than sixty (60) nor more than seventy-five (75) days prior to the end of said three-year period or the end of any subsequent one-year period that the party giving such notice desires either to terminate the Agreement at the end of such period or to negotiate amendments or changes of the terms or provisions thereof.” Kaufman, supra, p 1106.
The contract between the union and the employer in Kaufman also contained a no-strike clause.
The Kaufman court found the duration of agreement clause to be unambiguous, although the court noted that there was no explicit statement in the contract of the effect of notice to terminate or modify the contract. 607 F2d 1109. That court also found that the effect of either notice to terminate or notice to modify was termination of the contract. Id. That court was particularly persuaded by the fact that the contract contained a no-strike clause, because in the face of the no-strike clause, if notice to modify did not operate as notice to terminate, the employer could indefinitely reject the union’s offers without any fear of economic reprisal.
The Kaufman court distinguished the earlier case of International Union of Operating Engineers v Dahlem Construction Co, 193 F2d 470 (CA 6, 1951), on the grounds that in the Dahlem case, the duration of agreement clause explicitly stated that the agreement between the parties would remain in effect until a new agreement was reached.
Other cases which address the issue under the NLRA have held that, depending upon the language of the particular contract clause, notice of modification does not necessarily amount to notice of termination of a contract. Cf. Motor Carriers Counsel of St Louis, Inc v Local Union No 600, 486 F2d 650 (CA 8, 1973); see also Nashville Newspa per Printing Pressmen’s Union Local 50 v Newspaper Printing Corp, 518 F2d 351 (CA 6, 1975).
We find three reasons for distinguishing Kaufman from the instant case. First, because of the compulsory arbitration procedure available to both parties herein, MCL 423.240; MSA 17.455(40), the policy considerations governing Kaufman are not present in the instant case. The compulsory arbitration procedure provided by 1969 PA 312 eliminates the danger that the union would be forced to operate under the terms of the old agreement ad inñnitum. Second, the policy considerations governing a private employee’s statutory right to strike under the NLRA are not present in the case at bar because public employees have no right to strike. MCL 423.202; MSA 17.455(2). Finally, the defendant’s actions in providing written notice of termination in September of 1981 belies its contention that it believed that the contract terminated on November 30, 1979, the originally scheduled expiration date.
We hold that the trial court, in its findings of fact and conclusions of law, properly considered the language of the contract itself, the actions of the parties, and the evidence presented in finding that the agreement did not terminate until the county provided notice of termination in September of 1981. The judgment of the trial court is affirmed.
Finally, we hold that the trial court was not required to consider the subsequent 1969 PA 312 arbitration award (the Senter Award) in resolving this dispute.
At the show cause hearing, the county conceded that, in the five years of litigation that preceded the show cause hearing, it failed to properly object to the Haber Award of COLA benefits to retirees on the ground that such award was not a mandatory subject of bargaining. That failure to object was the basis of this Court’s prior decision affirming the trial court’s enforcement of the Haber Award. National Union of Police Officers v Wayne County Bd of Comm’rs (Docket No. 78-4141, decided February 25, 1980 [unreported]). The sole issue at the show cause hearing was whether or not the county should be held in contempt for failing to comply with the terms of the Haber Award in accordance with this Court’s and the lower court’s orders that it ought to so comply.
The county conceded that compliance was necessary. However, it did contest certain former employees’ status as retirees as well as the effect of the "Duration of Agreement” clause on its duty to pay. As noted earlier, the trial court properly found after hearing the evidence presented by the parties that the duration of agreement clause and the actions of the parties had the effect of extending the agreement which resulted from the Haber Award until December 1, 1981. As a result, the trial court held that the county was liable for COLA benefits to retirees through the period ending December 1, 1981. The subsequent resolution of the issue of whether or not the county had a duty to bargain on the issue of COLA benefits for retirees pursuant to the Senter Award has no effect on the court’s determination of the issue herein.
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W. J. Caprathe, J.
Defendant was charged with possession of heroin with intent to deliver, MCL 333.7401; MSA 14.15(7401). Detroit police officers had obtained a warrant to search a residence after a surveillance and controlled buy of heroin was made at the house. Seven persons, including the defendant, were present when the house was searched. All seven were subjected to a Terry pat-down search for weapons. During the subsequent search of the premises for drugs, the officers discovered a padlocked toolbox, which they forced open. Inside they discovered drugs and money. The police then searched those present for the key to the padlock. They discovered the key in defendant’s pocket. At the preliminary examination, the trial judge ruled that the search warrant did not extend to the search of defendant’s person and use of the key as evidence was suppressed. Since the key was a crucial link, this resulted in the case being dismissed. The prosecutor now appeals by leave granted.
The prosecutor’s argument that the search of defendant’s person was authorized by the warrant is not well-taken. Defendant had challenged the search of his pockets for the key to the box. In attempting to justify this search, the prosecutor argues that the search of defendant’s person was authorized by the warrant. We disagree, as the only person described in the warrant is someone other than the defendant. The relevant portions of the warrant are as follows:
Therefore, in the name of the people of the state of Michigan, I command that you search the following described place: The entire premises of the address known as 3151 Leland. . . .
Also the following described suspected seller: "Doug”; black male, 50 years old, 5T0", 250 lbs, large afro hair style, light complexion, mustache, and slight beard
and to seize, secure, tabulate and make return according to the law the following property and things:
Heroin and all other controlled substances, proofs of residency and/or control [sic] of the premises, all articles utilized in the sale, use, manufacturing or distribution of controlled substances, pre-recorded monies used in the purchase from the premises.
The prosecutor, however, urges us to find that the warrant authorized the search of defendant’s person because, once the locked toolbox was found and opened, the pockets of the seven persons became containers which were included in the warrant’s authority to search "the entire premises” and "seize . . . articles utilized in the sale, use, manufacturing or distribution of controlled substances.” We decline to make such a finding.
In Ybarra v Illinois, 444 US 85, 91; 100 S Ct 338; 62 L Ed 2d 238 (1979), the Supreme Court said:
The Fourth and Fourteenth Amendments protect the "legitimate expectations of privacy” of persons, not places. See Rakas v Illinois, 439 US 128, 138-143, 148-149; 99 S Ct 421; 58 L Ed 2d 387 (1978); Katz v United States, 389 US 347, 351-352; 88 S Ct 507; 19 L Ed 2d 576 (1967).
In the present case, allowing the search of the persons present on the premises who were not named in the warrant on the basis that their presence made them containers of the evidence would erode the constitutional right to the reasonable expectation of personal privacy guaranteed by the Fourth and Fourteenth Amendments. Ybarra, supra; People v Burbank, 137 Mich App 266; 358 NW2d 348 (1984), lv den 419 Mich 917 (1984), cert den — US —; 105 S Ct 962; 83 L Ed 2d 967 (1985). Therefore, we hold that unless a search of a particularly described person is expressly authorized by a warrant, a full search of a person present on the premises subject to a warrant may not be based upon the warrant. To rule otherwise would invite the argument in future cases that the search of persons present on premises subject to a warrant is justified in every case where the contraband in question is small enough to be secreted on the person, since it could be argued that the person’s pockets and clothing were containers of evidence subject to the warrant. Mere propinquity of a person to other persons or things on premises subject to a warrant cannot be the basis for denying the reasonable expectation of personal privacy. Therefore, we find that the lower court did not err in holding that the search of defendant’s pockets was not within the parameters of the search warrant in this case.
Affirmed.
Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968). | [
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Per Curiam.
Defendant, George Van Kampen, is the land contract vendor of a multiple-unit dwelling in the City of Detroit. Plaintiff, Dorothy Miller, is a land contract vendee of the property by virtue of her purchase of the previous land contract vendee’s interest in the property. The property was damaged by fire, and a dispute arose as to how the proceeds of the fire insurance policy should be applied.
Plaintiff filed a complaint in Wayne Circuit Court alleging that she had a right to use the money to repair the building damaged by fire. Defendant contended that the insurance proceeds should be applied to the balance due on the land contract. Plaintiff and defendant filed motions for summary judgment. The trial court denied defendant’s motion and, at a later date, granted plaintiff’s motion for summary judgment. The court entered an order which provided, in pertinent part:
It is hereby ordered and adjudged that Plaintiff’s Motion for Summary Judgment is hereby granted and that Defendant, George Van Kampen, forthwith endorse CNA Insurance Companies’ Draft #1148775 dated July 25, 1984, in the amount of $23,092.22, made payable to George Van Kampen and Dorothy Miller, Land Contract Purchaser, and Globe Fire Adjusters Company, Detroit, Michigan, or successor draft if same has to be reissued.
It is further ordered and adjudged that Plaintiff supply Defendant with a sworn statement of all contractors who made repairs on the building in question and discharge of lien by each party set forth in said sworn statement, to be given in exchange for endorsing said draft.
Defendant appeals, and we affirm.
On appeal, defendant contends that (1) in the absence of a specific agreement as to the application of insurance money received for a loss, the vendor of a land contract is entitled to apply the insurance to the purchase price, (2) the lower court in this case was found by the doctrine of stare decisis to follow the precedent established in Shaw v Cramton, 256 Mich 293; 239 NW 366 (1931), and Bennett v Johnson, 256 Mich 557; 239 NW 888 (1932), in determining the application of the insurance money received for the loss, and (3) plaintiff’s motion for summary judgment should not have been granted because the truth of a material factual assertion of plaintiff’s affidavit depended on plaintiff’s credibility.
First, we note that Shaw and Bennett do not control our decision in this case. In Shaw, the vendors were insured by a policy taken out by them before the sale to the vendees. The land contract provided that the vendee should keep the buildings insured with "the loss if any payable to the vendors as their interest may appear.” The vendee did not insure the premises, but the vendor had taken out a policy which was still in effect. Thus, the vendee was not entitled to have the insurance used to replace the buildings.
In Bennett, plaintiffs, the assignees of the vendee’s interest, sold the property to a third party subsequent to a fire. Plaintiffs asked that the insurance money be turned over to them or that it be placed in the hands of a trustee to insure payment on the contract; defendant asked that the insurance be applied to the balance still due on the land contract, and any surplus paid to plaintiffs. Thus, it appears that neither plaintiffs nor defendants sought to use the proceeds to make repairs.
Whether insurance proceeds are payable to the vendor or the vendee depends upon the contracts entered into by the parties. See Wilson v Fireman’s Ins Co of Newark, New Jersey, 403 Mich 339, 343-344; 269 NW2d 170 (1978), reh den 403 Mich 958 (1978). A contract should be interpreted to avoid an absurd or unreasonable result, Port Huron Area School Dist v Port Huron Education Ass’n, 120 Mich App 112, 116; 327 NW2d 413 (1982).
In this case, the land contract provided, in pertinent part:
2. (a) The purchaser agrees to purchase said land and pay the purchase money and interest thereon as above provided, and to keep the buildings now or hereafter on the premises insured against loss or damage by fire by insurance in the manner and amount approved by the Seller and to deliver the policies as issued to the Seller with the premium fully paid and to pay all taxes and assessments which shall become a lien on the premises after the date hereof within twenty-five days after the same become due and payable and to produce official evidence thereof to the Seller on demand.
(d) To keep and maintain the premises and the buildings thereon in as good condition as they are at the date hereof and not to commit waste, remove or demolish any improvements thereon, or otherwise diminish the value of the Seller’s security, without the written consent of the Seller.
The trial court ruled:
In this case we have the typical land contract arrangement. The land contract before me requires that the vendee keep the property in good repair. The land contract requires that the vendee keep the property insured with regard to repairs.
Well, that would indicate to me that there is an understanding that if the vendee has to keep the property in repair and provide insurance to cover those repairs, that when the insurance proceeds come in, they should be used to apply to those repairs.
I don’t know what other reasonable interpretation could be put on that language. In Shaw the Court said: There was no stipulation in the contract that it should be so used and after the fire, there was no oral agreement to that effect. In the absence of such an agreement, the vendee had no right to direct his application to that purpose.
Certainly, I can’t rule as a matter of law there is no agreement between the parties here. In a summary judgment, I must take the evidence in a light most favorable to the party opposing the summary judgment and give them the benefit of all reasonable inferences.
And I believe that the clear inference is that if a party is obligated to keep some property in repair and is obligated to insure it, buy insurance to provide for those repairs, that there is an implied agreement that the insurance money will be used to make those repairs.
We agree. We hold that, on the facts of this case, where a land contract provides that the vendee must purchase insurance and must maintain the premises and buildings in good condition and where the vendee is not in default, the vendee is entitled to apply the insurance proceeds to repairs actually made. See Sheridan v Peninsular Savings Bank, 116 Mich 545, 555; 74 NW 874 (1898).
In addition, we note that defendant’s argument that summary judgment was improper because plaintiffs credibility was in issue must be rejected, because plaintiff was entitled to summary judgment as a matter of law.
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Per Curiam.
Plaintiff appeals as of right from an adverse Wayne Circuit Court order of summary disposition in his tort action for injuries allegedly received through the negligence of Park Chemical Company (hereinafter referred to as defendant).
According to plaintiff’s complaint, he was employed by Dino Benson, Sr., as a laborer on June 9, 1983. Dino Benson, Sr., was a contractor for defendant, repairing the roof on one of defendant’s plants in the City of Detroit. The complaint states that plaintiff was injured when hot tar splashed onto his body, causing severe burns. Plaintiff alleges that defendant was negligent in failing to provide proper safety apparatus, clothing, procedures, equipment, and supervision.
Plaintiffs employer was apparently uninsured for workers’ compensation, in violation of MCL 418.611; MSA 17.237(611). Defendant accordingly assumed liability as a statutory employer under MCL 418.171; MSA 17.237(171). Defendant’s motion for summary disposition was based on the "exclusive remedy” provision of the Workers’ Disability Compensation Act, MCL 418.131; MSA 17.237(131). The trial court granted defendant’s motion, reasoning that workers’ compensation was plaintiffs exclusive remedy under the act. We are now called upon to decide whether the trial court erred in so holding because the exclusive remedy provision of the Workers’ Disability Compensation Act is a violation of the equal protection clauses of either the United States or Michigan Constitutions.
Liability under the Workers’ Disability Compensation Act, MCL 418.101 et seq.; MSA 17.237(101) et seq., extends to all employers under § 111, MCL 418.111; MSA 17.237(111), other than those enumerated in § 115. However, to ensure that employees in certain industries, such as construction, are extended coverage, the Legislature enacted § 171 of the act. Section 171, MCL 418.171; MSA 17.237(171), was intended to protect employees of contractors and subcontractors against their employers’ failure to obtain adequate workers’ compensation insurance. Hamilton v Superior Mushroom Co, 91 Mich App 52; 282 NW2d 831 (1979). Section 171(1) provides that whenever an employer who is subject to the act (the principal) contracts with another who is either not subject to the act or is otherwise uninsured for purposes of workers’ compensation (the contractor), the principal becomes liable for the workers’ compensation benefits due to the employees of the contractor. The section further provides that "if compensation is claimed from or proceedings are taken against the principal, then, in the application of this act, reference to the principal shall be substituted for reference to the employer.” Principals subject to workers’ compensation liability under the foregoing provision are commonly called "statutory employers.” Subsection (2) of § 171 entitles the statutory employer to indemnification from what might be called the "common-law employer.”
Defendant concedes that it is liable as a statutory employer under the act. The issue in this case arises out of the application of the "exclusive remedy provision” of § 131 to the instant case. Section 131 provides:
The right to the recovery of beneñts as provided in this act shall be the employee’s exclusive remedy against the employer. As used in this section and section 827 "employee” includes a person injured, his personal representatives and any other person to whom a claim accrues by reason of the injury to or death of the employee, and "employer” includes his insurer, a service agent to a self-insured employer, and the accident fund insofar as they furnish, or fail to furnish, safety inspections or safety advisory services incident to providing workmen’s compensation insurance or incident to a self-insured employer’s liability servicing contract. [MCL 418.131; MSA 17.237(131). Emphasis added.]
Defendant argues that the exclusive remedy provision applies to statutory employers, while plaintiff argues that it only applies to common-law employers.
Previously, this Court split on whether the ex- elusive remedy provision applied to statutory employers. Compare Drewes v Grand Valley State Colleges, 106 Mich App 776; 308 NW2d 642 (1981), lv den 419 Mich 880 (1984) (applies), with Dagenhardt v Special Machine & Engineering, Inc, 108 Mich App 75; 310 NW2d 41 (1981) (does not apply), rev’d 418 Mich 520; 345 NW2d 164 (1984), reh den 419 Mich 1207 (1984). In its reversal of Dagenhardt, the Supreme Court resolved the split, holding that the exclusive remedy provision does apply to statutory employers. 418 Mich 529. However, the Supreme Court’s analysis was limited to issues of statutory construction, since that plaintiffs equal protection claims were not preserved in the trial court. 418 Mich 527.
Here, plaintiff preserved his equal protection claim by first raising it in the trial court. However, this Court has previously addressed the same constitutional argument in Drewes, holding that an extension of the exclusive remedy provision to statutory employers did not violate the equal protection clause of either the Michigan or United States Constitutions. Drewes, supra, pp 784-788. The Drewes analysis of the equal protection issue was based on precisely the same construction of the exclusive remedy provision of the act as that adopted by the Supreme Court in Dagenhardt.
Although the challenge was brought on both state and federal grounds, the Drewes Court focused only on the state constitutional issue. However, we note that Michigan has construed its equal protection provision, Const 1963, art 1, § 2, as coextensive with that of the US Const, Am XIV. See Armco Steel Corp v Dep’t of Treasury, 419 Mich 582, 591; 358 NW2d 839 (1984); Fox v Employment Security Comm, 379 Mich 579, 588; 153 NW2d 644 (1967). Thus, because the analysis un der the United States or Michigan Constitution is the same we find ourselves in agreement with the Drewes decision.
We conclude that the exclusive remedy provision of the Workers’ Disability Compensation Act does apply to statutory employers, such as the one in this case. Thus we agree with the trial court’s order of summary disposition.
Affirmed. | [
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Per Curiam.
Defendant husband appeals as of right from the denial of his motion to set aside a default judgment of divorce for lack of subject matter jurisdiction.
Plaintiff Charlotte Pierson and defendant Ronnie Pierson were married on December 13, 1975, in Riverside, California. Two children were born during the course of the marriage: Carrie, born May 14, 1977; and Lora, born April 3, 1978. After numerous domestic arguments, plaintiff and her two daughters left the parties’ home in Santa Rosa, California, arriving in Michigan on April 14, 1981. On April 28, 1981, plaintiff filed a complaint for separate maintenance in Washtenaw County Circuit Court.
On October 15, 1981, six months and one day after her arrival in Michigan, plaintiff filed an amended complaint for divorce. No original complaint of divorce was filed.
Defendant failed to respond to the amended complaint within the 20 days allotted by statute. Accordingly, a default judgment was entered on November 20, 1981, in which plaintiff was granted custody of the two children. Defendant then filed a special appearance to attack the subject matter jurisdiction of the trial court on two separate grounds. First, defendant alleged that plaintiff had not been a resident of Michigan for at least 180 days prior to the filing of the original complaint as required by MCL 552.9; MSA 25.89. Second, defendant claimed that plaintiff failed to comply with the six-month "waiting period” specified under MCL 552.9f; MSA 25.89(6).
This motion was denied by the trial judge who reasoned that because plaintiff had been a resident of Michigan for 180 days at the time the amended complaint was filed, public policy did not require that the default judgment be overturned in order to "prevent forum shopping”. Defendant now appeals as of right from the judge’s determination that subject matter jurisdiction over the divorce existed at the time the default judgment was entered.
In order to obtain a divorce in Michigan, the following statutory residency and waiting period requirements must be met.
Under MCL 552.9; MSA 25.89,
"[a] judgment of divorce shall not be granted by a court in this state in an action for divorce unless the complainant or defendant has resided in this state for 180 days immediately preceding the filing of the complaint and the complainant or defendant has resided in the county in which the complaint is filed for 10 days immediately preceding the filing of the complaint.”
MCL 552.9f; MSA 25.89(6) requires that:
"In every case where there are dependent minor children under the age of 18 years, no proofs or testi mony shall be taken in such cases for divorce until the expiration of 6 months from the day the bill of complaint is filed.”
Plaintiff asserts that she fully complied with both of these statutory provisions. Plaintiff reaches this conclusion by using the date of the complaint for separate maintenance to fulfill the waiting period required under MCL 552.9f. Since six months and one day elapsed between the date of filing and the day proofs and testimony were taken, plaintiff claims that she complied with the statutory requirement.
Also, plaintiff contends that the 180-day residency requirement should be measured from the date she arrived in Michigan to the date she filed the amended complaint of divorce. Measuring from the date of the amended complaint for divorce, rather than the date of the complaint for separate maintenance, plaintiff argues that she satisfied the 180-day residency requirement.
We disagree.
As defendant correctly points out, GCR 1963, 118.4 requires that the October 15, 1981, date on which the amended complaint for divorce was filed relate back to April 28, 1981, the date of the original complaint for separate maintenance.
The test for determining if an amendment relates back to the date of the original proceeding is whether "the claim or defense asserted in the amended pleading arose out of the conduct, transaction, or occurrence set forth or attempted to be set forth in the original pleading”. GCR 1963, 118.4; Guerra v Bar-Har Investments, Inc, 112 Mich App 302, 306; 315 NW2d 921 (1982).
The focus is on whether the amendment springs from the same transactional setting as the original pleading. LaBar v Cooper, 376 Mich 401, 405-406; 137 NW2d 136 (1965). The relation-back provision of GCR 1963, 118.4 applies here since both the original complaint for separate maintenance and the amended complaint for divorce arose out of the breakdown of the marriage. Consequently, the trial court was without jurisdiction to render a default judgment.
This conclusion is further supported by the ruling in Bull v Bull, 109 Mich App 328; 311 NW2d 768 (1981). In Bull, this Court ruled that under GCR 1963, 118.4 the date of filing amended divorce and custody pleadings relates back to the date the original pleading was filed for the purposes of establishing or negating jurisdiction. This Court reasoned that:
"There is nothing in the act [Uniform Child Custody Jurisdiction Act] which would indicate that jurisdictional requirements may be established during the pendency, as opposed to the commencement, of the proceedings.” Bull, supra, p 341.
Therefore, the date which the trial court was to consider for the establishment of jurisdiction was the date on which the original pleading was filed, April 28, 1981. As of that date, plaintiff had not satisfied the 180-day minimum residency requirement. Consequently, the trial court lacked jurisdiction and the default judgment must be set aside.
Consistent application of GCR 1963, 118.4, however, requires a finding that plaintiff satisfied the six-month waiting period under MCL 552.9f; MSA 25.89(6). Consequently, our setting aside the default judgment of divorce is based solely on the ground that plaintiff failed to satisfy the 180-day residency requirement contained in MCL 552.9; MSA 25.89.
Although not raised by the parties, we note that an additional requirement contained in MCL 552.9f; MSA 25.89(6) appears to apply to the instant case:
"When the defendant in any case for divorce is not domiciled in this state at the time of commencing the suit or shall not have been domiciled herein at the time the cause for divorce arose, before any decree of divorce shall be granted the complainant must prove that the parties have actually lived and cohabited together as husband and wife within this state, or that the complainant has in good faith resided in this state for 1 year immediately preceding the filing of the bill of complaint for divorce.” MCL 552.9f; MSA 25.89(6).
Because the record is insufficient to determine whether the parties must comply with this requirement, we only note it here in order that it be considered should either party reinstitute divorce proceedings.
Reversed. The default judgment of divorce is set aside. | [
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Per Curiam.
Defendant was charged with first-degree criminal sexual conduct. Following a Walker [People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965)] hearing in the St. Clair Circuit Court, the court granted defendant’s motion to suppress written inculpatory statements he made following a polygraph examination, in which he admitted to having penetrated the five-year-old victim’s vagina with his finger. The statement was suppressed on the basis of involuntari ness. The people appeal by leave granted. We reverse.
On appeal from a Walker hearing, we are required to examine the entire record and reach an independent determination of the voluntariness of the defendant’s statements. People v Catey, 135 Mich App 714; 356 NW2d 241 (1984), lv den 422 Mich 940 (1985). We will affirm the trial court’s ruling unless it is clearly erroneous, such that we have a definite and firm conviction that a mistake has been made. People v Price, 112 Mich App 791; 317 NW2d 249 (1982), lv den 414 Mich 946 (1982).
The voluntariness of a confession must be determined from all of the facts and circumstances, including the duration of detention, the manifest attitude of the police toward the suspect, the physical and mental state of the suspect, and the pressures which may sap or sustain the suspect’s powers of resistance and self-control. People v Belknap, 146 Mich App 239, 241; 379 NW2d 437 (1985).
The record indicates that the written confession was the product of an interview which followed a polygraph examination voluntarily taken by defendant on December 6, 1984. At the time of the examination, a complaint had been filed by the victim’s mother and the investigation focused on defendant, but defendant had not been arrested and he remained at home with his wife.
During the morning of December 6, 1984, Detective Sergeant Gary Teter of the Michigan State Police, with whom defendant had previously discussed the matter, telephoned defendant and requested him to submit to the polygraph examination. Defendant had no objections and agreed to drive with Detective Sergeant Teter to the Madison Heights forensic laboratory for testing.
Defendant thereafter ate a bagel for breakfast at about 10:00 a.m. and smoked a marijuana cigarette at about 11:00 a.m. to calm his nerves. Teter arrived at defendant’s home at about 1:00 p.m. and they proceeded to the laboratory, accompanied by defendant’s wife, at defendant’s request. Although the polygraph procedure was not discussed during the drive, defendant was familiar with it, having previously taken one in an unrelated matter.
Defendant arrived at the laboratory at about 2:00 p.m., whereupon he was interviewed by Detective Sergeant Christopher Lanfear regarding his personal and health histories. The interview lasted from fifteen to thirty minutes, during which defendant was given his Miranda [Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966)] warnings and was instructed that the exam was voluntary and could be terminated upon his request at any time.
During the interview, defendant said that he had eaten a few hours earlier and that he had smoked marijuana. However, defendant also said that he was not under the influence of marijuana at the time, and it did not appear to Detective Sergeant Lanfear that defendant was affected by the drug. Lanfear noted on his report that the room was sixty-eight degrees with thirty percent humidity at the time of the test. Defendant never complained that he was cold.
Following the pretest interview, between 2:38 and 2:47 p.m., Lanfear discussed the case and read his proposed examination questions to defendant. The men took a break at about 2:50 p.m. Detective Sergeant Lanfear testified that the purpose of the break was to allow defendant to think about the questions and decide whether he still wanted to take the test. During the break, defendant sat with his wife in the waiting room and had access to a restroom and drinking fountain.
The examination ended at approximately 3:25 p.m. Following the examination, Lanfear informed defendant that he had failed the test. Defendant was reread and waived his Miranda rights. Lanfear then interviewed defendant again. Defendant initially testified that Lanfear told him that he would stay until midnight if necessary to obtain an admission and that if he confessed, the prosecutor would probably be lenient. However, during cross-examination, defendant suggested that Lanfear had offered to stay as long as defendant wanted or needed to be able to relate his side of the story. Lanfear denied that he threatened defendant or suggested to him that he would keep him at the laboratory until he confessed.
Detective Sergeant Teter testified that defendant was not in custody on December 6, 1984, and was free to leave at any time. Teter, who waited with defendant’s wife in a public waiting room during the pretest interview and the examination itself, did not perceive defendant to be cold or under the influence of any narcotic or alcohol. Although defendant appeared to be upset, Teter believed he was coherent and understood the proceedings. Teter also met with defendant after the examination. It was apparently at this time, at approximately 4:30 p.m., that defendant tendered the written statement.
On the other hand, defendant testified that he was cold and needed to use the restroom during the interviews and examination. He attributed his confession to the marijuana intoxication as well as Lanfear’s statements. However, defendant conceded that he was not prevented from eating or using the restroom before he left his home that morning, nor did he assert that he had complained about his discomfort while at the laboratory. De fendant also admitted that his memory of that afternoon was detailed and crystal clear.
At the close of proofs at the hearing, the court concluded that defendant’s motion should be granted. This decision was affirmed at a hearing on the people’s motion for reconsideration. Based on the court’s statements at the two hearings, it appears that it found the confession to be involuntary for three reasons: (1) because defendant’s transportation to the lab in Teter’s automobile constituted "constructive custody”; (2) because defendant believed that he was under the influence of marijuana during the polygraph examination; and (3) because Lanfear’s interview of defendant was not entirely restricted to Lanfear’s assignment as a polygraph operator.
"Custody” occurs when a person is deprived of freedom in a meaningful way, under the totality of the circumstances. The key question is whether the defendant could reasonably believe that he was not free to leave. People v Blackburn, 135 Mich App 509, 517-518; 354 NW2d 807 (1984), lv den 422 Mich 907 (1985), cert den sub nom Michigan v Blackburn, — US —; 106 S Ct 397; 88 L Ed 2d 349 (1985). In the instant case, defendant acknowledged that he agreed to the polygraph examination and had no objection to driving to it with Detective Sergeant Teter. At the time, defendant was not under arrest or incarcerated. He was picked up at his home, and later apparently returned there. Both detectives testified that defendant was free to discontinue the interviews at any time, and defendant was so advised. Defendant never claimed that he misunderstood his freedom or that he believed he could not leave. Under the circumstances, we find no basis for the circuit court’s conclusion that defendant was in "constructive custody.” Nonetheless, even if defendant was in custody, the detectives repeatedly complied with their obligation to inform him of his Miranda rights. This factor does not support the conclusion that defendant’s statement was not freely given.
We also find to be error the lower court’s (and defendant’s) reliance on defendant’s consumption of one marijuana cigarette to conclude that his statement was involuntary. The fact that a person is drugged does not per se render a statement involuntary. Rather, as stated, the voluntariness of the confession depends upon all of the circumstances. People v Dunlap, 82 Mich App 171, 176; 266 NW2d 637 (1978).
While the trial court’s findings regarding credibility are entitled to deference, People v Shelson, 150 Mich App 718, 724; 389 NW2d 159 (1986), the trial judge did not find that defendant was under the influence of marijuana at the time of his confession. Rather, at the motion for reconsideration, the court merely remarked that the defendant believed that the marijuana influenced the polygraph examination. The court did not indicate to what extent defendant was actually influenced by the marijuana, or whether the influence affected his volition rather than the outcome of the polygraph. In view of all the testimony, it is most difficult to conclude that defendant’s capacities were impaired by the marijuana. He only smoked one marijuana cigarette approximately 5 Vi hours before giving his written confession, and there was no evidence that the marijuana was unusually potent. Defendant exhibited no signs of disorientation during the afternoon and, at the hearing, he admitted that he remembered the event and his statements in great detail. Under the totality of the circumstances we conclude that the statement was not induced by marijuana intoxication.
The circuit court also ruled that the use of the polygraph examination impugned the validity of the confession. Contrary to this belief, both this Court and the United States Supreme Court have held that polygraph examinations do not render subsequent confessions involuntary. Wyrick v Fields, 459 US 42, 47-49; 103 S Ct 394; 74 L Ed 2d 214 (1982); People v Hangsleben, 86 Mich App 718, 726; 273 NW2d 539 (1978); People v Garrison, 128 Mich App 640, 644; 341 NW2d 170 (1983), lv den 419 Mich 853 (1984). In this case, where defendant was given Miranda warnings prior to both the test and the subsequent interview and the facts do not otherwise indicate that the confession was coerced, we are left with a firm and definite conviction that the court erred in suppressing the statement. Garrison, supra, at 644.
Reversed and remanded. | [
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Shepherd, P.J.
Respondent, Charles Stanley Glisson, appeals as of right from the probate court’s December 9, 1985, order assuming jurisdiction and terminating his parental rights in his minor child under MCL 712A.19a(d); MSA 27.3178(598.19a)(d). Section 19a(d) authorizes termination where the parent has been convicted of a felony the nature of which proves his unfitness to have future custody of the child or where the parent’s imprisonment will deprive the child of a normal home for more than two years. In this case, the child’s mother was dead and the respondent father was serving a life sentence for first-degree murder. We affirm the probate court’s as sumption of jurisdiction and termination of respondent’s parental rights.
Terry Lynn Hurlbut was born on October 14, 1982. The male child was born out of wedlock and the mother, Judy Hurlbut Baker, cared for the child until her death on July 29, 1985. Sue Keagle of the Lenawee County Department of Social Services immediately placed the child in temporary foster care. The following day Keagle learned of the mother’s will which named Jose and Marta Sotelo as guardians of the child and Ricardo and Sally Trevino as successor guardians.
On July 31, 1985, petitioner filed a petition alleging that the child was within the jurisdiction of the juvenile division of the Lenawee County Probate Court, pursuant to MCL 712A.2(b); MSA 27.3178(598.2)(b). The claim was based upon the allegation that the child was "without proper custody and guardianship” because the mother had died and the father was serving a life sentence for first-degree murder. At a preliminary hearing held the same day, the probate court placed the child in the temporary care of the Sotelos pending further action in the probate court. Subsequently, on October 11, 1985, petitioner petitioned for termination of respondent’s parental rights. The probate court formally assumed jurisdiction and terminated respondent’s parental rights after a hearing held on October 24, 1985.
Respondent argues on appeal that the probate court could not assume jurisdiction over the child under MCL 712A.2(b); MSA 27.3178(598.2)(b) because the child was never without proper care and guardianship due to the guardianship provisions of the mother’s will. We disagree.
MCL 712A.2(b)(1); MSA 27.3178(598.2)(b)(1) provides:
Except as otherwise provided in this section, the juvenile division of the probate court shall have:
(b) Jurisdiction in proceedings concerning any child under 17 years of age found within the county:
(1) Whose parent or other person legally responsible for the care and maintenance of such child, when able to do so, neglects or refuses to provide proper or necessary support, education as required by law, medical, surgical, or other care necessary for his or her health or morals, or who is deprived of emotional well-being, or who is abandoned by his or her parents, guardian, or other custodian, or who is otherwise without proper custody or guardianship.
At the time of Judy Hurlbut Baker’s death, her 2 bi-year-old son was left without proper custody or guardianship. The identity of the child’s father was unknown and the existence of the deceased’s mother’s will had not yet been discovered. The Lenawee County Department of Social Services was informed of the situation and immediately placed the child in temporary foster care. It was not until the following day, when a Lenawee County Department of Social Services worker spoke with Sally Trevino, that the existence of the will and the possible identity of the child’s father were discovered. Although the will named guardians and successor guardians, the will and the guardianship provisions were not self-executing and, in fact, never became effective. Guardianship is a term of art that does not exist until it is created by a court. The mere naming of a guardian in a will does not make the named person the guardian upon the death of the deceased; The will must first be probated, the named guardian must file an acceptance of appointment and then the court must sign an order creating the guardian ship and placing the guardian under the control of the court. See MCL 700.422; MSA 27.5422.
The petitioner placed the child with the Sotelos and the Trevinos as foster care parents under the supervision of the Lenawee County Department of Social Services. The Sotelos and Trevinos were not acting as guardians. Under the guardianship provisions of the Revised Probate Code, MCL 700.401 et seq.; MSA 27.5401 et seq., there are two ways a guardian could be appointed after the death of a parent. In the case of a testamentary guardianship under §422, subject to objection by the minor to the appointment under § 423, "a testamentary appointment becomes effective upon filing the guardian’s acceptance . . ., if before acceptance both parents are dead or the surviving parent is adjudged legally incapacitated.” Where a guardian has not been named in a will or where a testamentary appointment is ineffective, a person seeking appointment as the minor’s guardian may petition for appointment and the probate court may appoint a guardian under § 424 where a guardian "is necessary for the immediate physical well-being of the minor.” A § 424 appointment must be preceded by notice, hearing and a finding that the appointment is in the best interests of the minor under §427. At least prior to the termination hearing, the named "guardians” had not petitioned the court for appointment as guardians of the child under MCL 700.424; MSA 27.5424, and the mother’s attempted testamentary appointment of a guardian under MCL 700.422; MSA 27.5422 was ineffective since the father was not dead or adjudged legally incapacitated. Thus, during the course of the proceedings which resulted in the termination of respondent’s parental rights, the child was without proper guardianship.
At the time of the mother’s death, there were no relatives to care for the child. Although Aid to Families with Dependent Children records indicated the identity of the child’s father, the paternity of the child was still in question. Once paternity was established in these proceedings, the child remained without proper custody or guardianship since the child’s father was serving a mandatory term of life imprisonment for first-degree murder, and the father had no. relatives willing to provide proper care for the child. Respondent testified that he had never seen the child and did not even learn of the mother’s pregnancy or the child’s existence until after his incarceration. Rased on these facts we conclude that the probate court had jurisdiction pursuant to MCL 712A.2(b)(1); MSA 27.3178(598.2)(b)(l).
The cases cited by respondent are easily distinguishable. See In the Matter of Carlene Ward, 104 Mich 354; 304 NW2d 844 (1981), and In the Matter of Curry, 113 Mich App 821; 318 NW2d 567 (1982). These cases hold that a child who has been placed by a parent in the care of others is not subject to the jurisdiction of the probate court as long as the child is receiving adequate care. However, in each of these cases, there was a living parent who had entrusted the care of a child to others. Here, the child’s sole living custodial parent died, leaving the child without proper legal guardianship. Moreover, unlike in Ward or Curry, although here the mother provided for proposed guardians in her will, the child was not placed in their care prior to probate court intervention. In addition, in the present case the respondent father has done nothing to provide for the care and custody of the child. It was the mother who attempted to provide for the child in the event of her death by naming a guardian in her will.
We conclude that upon the mother’s death the child was left without proper custody and guardianship and, thus, was subject to the jurisdiction of the probate court. Notwithstanding other avenues that could have been pursued, such as the named guardians in the will seeking appointment as guardians, the petitioner acted properly in pursuing termination of respondent’s parental rights.
We further note that there was clear and convincing evidence presented at trial warranting termination under MCL 712A.19a(d); MSA 27.3178(598.19a)(d), which provides:
Where a child remains in foster care in the temporary custody of the court following the initial hearing provided by section 19, the court may make a final determination and order placing the child in the permanent custody of the court, if it finds any of the following:
(d) A parent or guardian of the child is convicted of a felony of a nature as to prove the unfitness of the parent or guardian to have future custody of the child or if the parent or guardian is imprisoned for such a period that the child will be deprived of a normal home for a period of more than 2 years.
The probate court found that due to the respondent’s conviction for first-degree murder, he was unfit to have future custody of the child; thus, termination was warranted. In addition, clear and convincing evidence was presented establishing that the respondent would be in prison for a lengthy period of time and the child would be deprived of a normal home life for a period in excess of two years. The probate court’s findings were clearly supported by the evidence.
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Wahls, P.J.
Defendant, David Marcus Keskinen, born on November 20, 1954, was convicted by a jury of operating a motor vehicle while under the influence of intoxicating liquor, third offense, MCL 257.625(6); MSA 9.2325(6), regarding an incident which occurred on October 7, 1986, in Redford Township. On July 10, 1987, he was sentenced by Wayne Circuit Judge Robert J. Colombo, Jr., to a term of imprisonment of forty to sixty months. We reverse defendant’s conviction and remand this case for a new trial, finding that the trial court erred in admitting into evidence, during the prosecution’s case in chief and over the objection of defense counsel, the result of a preliminary breath test administered by a police officer just prior to defendant’s arrest.
The record reveals that on October 7, 1986, at approximately 2:51 a.m., Redford Police Officers Timothy Oliver and Keith Anderson were driving in a scout car on eastbound Six Mile Road near Inkster Road when they observed a westbound automobile swerving over the central yellow line. Officer Oliver made a u-turn and began following the automobile. The officers then observed the car continue to swerve between and over the traffic lines. After traveling about 1 Vz miles, the officers stopped the car they had been following and approached the car’s driver. The driver, defendant, informed Officer Oliver that his driver’s license had been suspended and was asked to get out of his car. The officers noticed that defendant had alcohol on his breath, slurred speech ánd glassy eyes and was ^wobbly” on his feet. When asked if he had been drinking, defendant responded that he had drunk "a few beers.”
Two field sobriety tests were administered to defendant. First, he was asked to recite the alphabet and, second, he was asked to stand on one foot. Defendant failed both tests. Officer Oliver then administered a preliminary chemical breath analysis test or preliminary breath test, which revealed a 0.20 percent alcohol content. Based on defendant’s erratic driving, his unsuccessful completion of the field sobriety tests, his statement that he had been drinking and the result of his preliminary breath test, Officer Oliver concluded that defendant was intoxicated. Defendant was then arrested. After his arrest, he was transported to the police station, where he refused to submit to a Breathalyzer test. An information was filed on November 12, 1986, charging defendant with operating a motor vehicle while under the influence of intoxicating liquor, third offense, MCL 257.625(6); MSA 9.2325(6).
Defendant’s three-day trial was conducted in June, 1987. At his trial, defendant testified that the evening before he was stopped by the police he had drunk "two to three Miller light beers, 12-ounce cans” and had eaten some pizza at a friend’s house. He maintained that he had recited the alphabet correctly for Officer Oliver and stated that he could not stand on one leg due to a knee problem which was exacerbated by his having sat cross-legged while at his friend’s house. Finally, defendant asserted that he had refused to take both the Breathalyzer test at the police station and the preliminary breath test at the scene of his arrest.
In this appeal as of right, defendant first argues that the trial court erred in admitting. into evidence, during the prosecution’s case in chief and over the objection of defense counsel, the result of the preliminary breath test administered by Officer Oliver just prior to defendant’s arrest. We agree, finding that the admission of the test result violated MCL 257.625h(3); MSA 9.2325(8X3), which provides:
The results of a preliminary chemical breath analysis shall be admissible in a criminal prosecution for a crime enumerated in section 625a(l) or in an administrative hearing under section 625f, solely to assist the court or hearing officer in determining a challenge to the validity of an arrest. This subsection does not limit the introduction of other competent evidence offered to establish the validity of an arrest.
In this case, at the conclusion of defense counsel’s cross-examination of Officer Oliver, the prosecutor informed the trial court that Officer Oliver had administered a preliminary breath test to defendant at the scene of his arrest and requested that the trial court determine the admissibility of the result of the administered test. The prosecutor contended that the evidence was admissible under § 625h(3) because defense counsel, during her cross-examination of Officer Oliver, had posed questions suggesting that defendant’s arrest had been invalid. The trial court ruled that the test result was admissible, stating:
The statute does state that the results of a preliminary chemical breath analysis shall be admissible in a criminal prosecution for a crime enumerated in section 625a(l) solely to assist the Court or hearing officer in determining a challenge to the validity of an arrest.
And it seems that you’re suggesting by the cross-examination here that you’re attacking the validity of the arrest in terms of whether this particu lar individual was weaving. It seems like the statute would apply.
[I]t seems to me that MCLA 257.625h, paragraph three, authorizes it in this situation.
I’m going to rule it’s admissible under that statute.
Subsequently, Officer Oliver testified that defendant had been given a preliminary breath test which produced the result of 0.20 percent. He had earlier explained that a person is considered intoxicated and will be arrested if his or her preliminary breath test registers 0.10 percent. Immediately after Officer Oliver’s testimony, the trial court, sua sponte, gave the following cautionary instruction to the jury:
Excuse me. Ladies and gentlemen, I want to give you a cautionary instruction at this point.
That testimony as to the reading on the preliminary breathalyzer test can only be used for one purpose, and that is whether this officer had probable cause to arrest Mr. Keskinen.
It cannot be used to prove that in fact he was intoxicated. All that means is that at that time he got a reading of .20 from that machine and that machine provided a basis for arresting him, okay?
Immediately defense counsel raised questions regarding the proper factors to be considered in laying a foundation for the admission into evidence of results from preliminary breath tests, and a lengthy discussion on this issue ensued among trial counsel and the court outside the presence of the jury. When the jury returned, the court, in response to a request by defense counsel, repeated its cautionary instruction to the jury.
In examining § 625h(3), we are bound to obey its plain and unambiguous language. Jones v Grand Ledge Public Schools, 349 Mich 1, 9; 84 NW2d 327 (1957); People v Bound, 163 Mich App 261, 264; 413 NW2d 762 (1987), lv den 429 Mich 887 (1987). If an ambiguity exists, we must determine, and give effect to, the intent of the Legislature. People v 2850 Ewing Road, 161 Mich App 266, 270; 409 NW2d 800 (1987), lv den 429 Mich 884 (1987). Concerning this task, this Court, in Michigan Humane Society v Natural Resources Comm, 158 Mich App 393, 401; 404 NW2d 757 (1987), stated:
When determining legislative intent, statutory language should be given a reasonable construction considering the statute’s purpose and the object sought to be accomplished. An act must be read in its entirety and the meaning given to one section arrived at after due consideration of other sections so as to produce, if possible, a harmonious and consistent enactment as a whole. Statutes are to be construed so as to avoid absurd consequences. King v Midland Co Dep’t of Social Services Director, 73 Mich App 253, 258-259; 251 NW2d 270 (1977).
However, "[ojnce legislative intent is discerned, it must be given effect, even if doing so might appear to conflict with the letter of the statute.” People v Stoudemire, 429 Mich 262, 266; 414 NW2d 693 (1987). Criminal statutes are to be strictly construed, People v Crousore, 159 Mich App 304, 310; 406 NW2d 280 (1987), lv den sub nom People v Wyngaard, 430 Mich 893 (1988), unless the general purpose of the Legislature is manifest and is sub-served by giving the words used in the statute their ordinary meaning, United States v P Koening Coal Co, 270 US 512, 520; 46 S Ct 392; 70 L Ed 709 (1926).
We believe that the trial court in this case erred in admitting into evidence the result of defendant’s preliminary breath test. Section 625h(3) provides that the result of a preliminary breath test is admissible "to assist the court or hearing officer in determining a challenge to the validity of an arrest.” In the context of the traffic laws in which this language appears, it is clear to us that the Legislature intended that § 625h(3) address itself to the challenges brought before the trial court in the form of, for instance, a pretrial motion to dismiss due to an illegal arrest. Since the validity of an arrest is a question which is reserved for judicial officers and is to be decided as a matter of law, see City of Birmingham v 48th Dist Judge, 76 Mich App 33, 37; 255 NW2d 760 (1977); People v Rowe, 95 Mich App 204, 210; 289 NW2d 915 (1980), we do not believe that the Legislature intended, under any circumstances, that evidence admissible solely for the limited purpose of assisting a court or hearing officer in determining a challenge to the validity of an arrest be divulged to a jury during a criminal trial. Since a jury has no role in determining the validity of an arrest, the apparent and stated purpose of § 625h(3), namely, to assist in the determination of the validity of an arrest, is nonexistent in a jury context. The only "assistance” such a revelation could render is that conferred upon the prosecution by way of the obvious prejudice and harm redounding to the defendant generated by such highly incriminating evidence. This, we feel confident, the Legislature did not intend.
Moreover, we find that the unmistakable suggestion of guilt emanating from the trial court’s admission of the result of defendant’s preliminary breath test in this case could not have been removed by the trial court’s cautionary instruction and cannot be considered harmless error. MCL 769.26; MSA 28.1096; MCR 2.613(A); People v Stubl, 149 Mich App 42, 46-47; 385 NW2d 719 (1986), lv den 425 Mich 864 (1986). This is not a case in which the defendant conceded or failed to dispute that he had been given a preliminary breath test by the arresting officer. Rather, it is a case in which the defendant specifically asserted, during cross-examination, that he had never been given a preliminary breath test and that, in fact, he had refused to take a preliminary breath test. The admission into evidence of the actual result of a preliminary breath test, could only have validated the arresting officer’s testimony that such a test was administered to defendant and could only have indicated that defendant is a liar. The erosion of defendant’s credibility resulting from the wrongfully introduced evidence in this case precludes a finding of harmless error on appeal.
Second, defendant argues on appeal that "the trial court committed reversible error by admitting, during the prosecutor’s case in chief and over the objection of defendant, evidence showing that defendant refused to take a [BJreathalyzer test at the police station after his arrest.”
In People v Duke, 136 Mich App 798, 803; 357 NW2d 778 (1984), this Court, based on its consideration of MCL 257.625a(8); MSA 9.2325(1)(8), decisions from this and foreign jurisdictions, and a legal annotation, held that, generally, evidence of a defendant’s refusal to take a Breathalyzer test should not be admitted in the prosecutor’s case in chief because it constitutes neither evidence of guilt or innocence nor evidence regarding an essential element of the crime. However, the Duke Court held that evidence of a defendant’s refusal to take a Breathalyzer test may be admitted at trial in situations where "the defendant opens the controversy by a showing of lack of credibility or competence of the police officer and it is necessary to rebut defendant’s evidence,” adding:
The most obvious examples of circumstances where such evidence could be admitted are:
a. Where the defendant denies being given an opportunity to take a Breathalyzer test,
b. Where the defendant claims that he took the test and the results were exculpatory,
c. Where the defendant challenges the competency of any of the testing done by the officer, or
d. Where the defendant challenges the credibility of the officer. [136 Mich App 803.]
See also People v Stratton, 148 Mich App 70, 80-81; 384 NW2d 83 (1985).
In this case, it appears, upon first examination, that defense counsel’s challenges to the credibility of Officer Oliver were sufficient to justify the introduction of evidence of defendant’s refusal to submit to a Breathalyzer test. While cross-examining Officer Oliver concerning defendant’s preliminary breath test, defense counsel’s questions suggested that Officer Oliver either lied in testifying that he had administered a preliminary breath test to defendant or had incompetently recorded the re- suits of that test. Upon further examination, however, it becomes clear that the attack on Officer Oliver’s credibility by defense counsel was prompted by the officer’s earlier testimony during redirect examination by the prosecutor that defendant’s preliminary breath test had disclosed a 0.20 percent alcohol content. We have already held that evidence of the result of defendant’s preliminary breath test was improperly admitted by the trial court. If the result of that test had properly been excluded, the issue of Officer Oliver’s credibil ity in this matter would not have arisen at trial. Stated another way, the issue of Officer Oliver’s credibility arose by way of questions posed by defense counsel in response to evidence improperly admitted at the insistence of the prosecutor. In defendant’s retrial, evidence of the result of his preliminary breath test will not be admitted by the trial court; accordingly, the issue of Officer Oliver’s credibility, at least on this ground, will not resurface.
The two remaining questions raised on appeal concern sentencing issues and, in view of our decision to reverse defendant’s conviction and remand this case for a new trial, need not be addressed.
Reversed and remanded.
This statute provides:
If a jury instruction regarding a defendant’s refusal to submit to a chemical test under this section is requested by the prosecution or the defendant, the jury instruction shall be given as follows:
"Evidence was admitted in this case which, if believed by the jury, could prove that the defendant had exercised his or her right to refuse a chemical test. You are instructed that such a refusal is within the statutory rights of the defendant and is not evidence of his guilt. You are not to consider such a refusal in determining the guilt or innocence of the defendant.”
See Anno: Admissibility in criminal case of evidence that accused refused to take test of intoxication, 26 ALR4th 1112.
Defense counsel’s cross-examination of Officer Oliver was recorded, in part, as follows:
Q. Now, and you only did this one time; isn’t that true?
A. Did what?
Q. The [preliminary breath] test?
A. On the defendant?
Q. Correct, on Mr. Keskinen?
A. Yes, right.
Q. And is there any kind of a reading, printout of the results?
A. No, it’s just what you see on the machine.
Q. And so the test results, then, depend on your saying that you gave the test and your saying that it was properly calibrated and your saying what the results are; is that true?
A. No.
Q. Okay. What else does it depend on?
A. It depends on the defendant.
Q. You mean what Mr. Keskinen says?
A. Sure.
Q. With the results . . .
A. After I get the results, I show the defendant what the result is. I tell him you have to be at least a .10.1 said, "Here is what you blew.”
What was the other part of the question?
Q. If Mr. Keskinen said I don’t think that was an accurate test or it wasn’t a good result, then the test isn’t good?
A. That’s his right to say that. I’m telling you it was good as far as I’m concerned. It’s his right to say what he likes to say.
Q. So you’re saying that what goes into the police report or the testimony today is based on what you say that you saw on that machine that day; is that correct?
A. That’s what went into my report, un-huh.
Q. And you remember that test specifically and you remember what the results were specifically; is that your testimony?
A. It’s in the report. | [
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Per Curiam.
George Earl Beavers and Halord Swain were originally charged with delivery of over 650 grams of a mixture containing cocaine, MCL 333.7401(2)(a)(i); MSA 14.15(7401)(2)(a)(i). The defendants were tried in a bench trial held in Detroit Recorder’s Court. The trial judge found them guilty of attempted delivery rather than actual delivery and sentenced them to sixty days in jail and three years of probation. The Wayne County Prosecutor sought a writ of superintending control. This Court granted the prosecutor’s complaint and directed the parties to proceed to a hearing on the merits in the same manner as in an appeal as of right.
On appeal, the people argue that the trial court committed an error of law by finding the defendants guilty of attempted delivery of cocaine. The prosecution argues that the court erred by finding defendants guilty of a nonexistent offense, attempted delivery of cocaine.
Section 7401 of the controlled substances act makes criminal the delivery of over 650 grams of a mxiture containing a controlled substance. MCL 333.7401(2)(a)(i); MSA 14.15(7401)(2)(a)(i). Section 7105 of the same act defines "delivery” as "the actual, constructive, or attempted transfer ... of a controlled substance.” MCL 333.7105(1); MSA 14.15(7105X1). The general criminal attempt statute, MCL 750.92; MSA 28.287, is applicable only "when no express provision is made by law to punish such [criminal] attempt.” Thus, under the controlled substances act, there is no such offense as "attempted delivery of cocaine.” Any attempt is subsumed under the crime of delivery itself. See People v Wright, 74 Mich App 297, 301-302; 253 NW2d 739 (1977). Here, the trial judge claimed to be "exercising his discretion” so as to find the defendants guilty of this supposed lesser offense. What the judge was really doing was reacting to a perceived unreasonable inflexibility on the part of the prosecutor. The Supreme Court has limited the power of compromise and leniency to juries. It has disapproved those powers for a trial judge sitting without a jury. A trial judge sitting as a factfinder in a bench trial is not permitted to reach "compromise” verdicts such as this one. People v Burgess, 419 Mich 305, 310-311; 353 NW2d 444 (1984). The trial court committed a legal error by convicting defendants Swain and Beavers of a nonexistent crime.
On the basis of this error, the prosecutor urges us to vacate the trial court’s verdict and direct the trial court to enter verdicts of guilty against defendants for delivery of over 650 grams of a mixture containing cocaine. We cannot. The remedy requested is barred by the prohibition against double jeopardy.
The record below indicates that the trial judge specifically found that there was insufficient evidence of an "attempt” by the defendants to convict them of delivery of cocaine under § 7401 of the controlled substances act. However, the judge did find that there was sufficient evidence to convict the defendants of attempted delivery under the general attempt statute. A conviction for a lesser included offense operates as an acquittal of the originally charged crime. Price v Georgia, 398 US 323, 327; 90 S Ct 1757; 26 L Ed 2d 300 (1970). When a defendant has been effectively acquitted, retrial on the original offense is barred by double jeopardy even if the legal ruling underlying the acquittal is erroneous. Sanabria v United States, 437 US 54, 64; 98 S Ct 2170; 57 L Ed 2d 43 (1978). Here, the trial judge effectively acquitted the defendants of delivery of cocaine. Thus, any action on our part which would effectuate a guilty verdict for delivery of cocaine would violate the constitutional prohibition against double jeopardy. We affirm the trial court’s verdict. We do not thereby legitimize the process used by the trial court.
Affirmed.
At sentencing when the assistant prosecutor insisted that defendants should be given the statutorily mandated sentence of life imprisonment, Judge Carnovale responded:
The Court: He was found guilty of attempt either delivery or possession with intent to deliver. It’s just the same thing that the prosecutor does in allowing guilty pleas in negotiation pleas and everything, is that I did it in the manner of exercising my discretion. It’s just attempt delivery, that’s all, delivery statute, and it’s attempt—possession with intent to deliver, they’re all under the same statute.
I don’t know where the Prosecutor’s Office coming off on this thing anyway. The Prosecutor’s Office is really in a state of disarray at this point in their history, so I really don’t know what they’re coming from anyway.
People v Vaughn, 409 Mich 463; 295 NW2d 354 (1980).
People v Vaughn, supra; People v Burgess, 419 Mich 305; 353 NW2d 444 (1984). | [
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C. W. Simon, Jr., J.
In this action to recover appeal bond premiums and interest earned on the cash collateral deposited with defendant Lehigh Agency, plaintiffs appeal as of right from a final order of the Oakland Circuit Court granting partial summary disposition in favor of defendants. Defendants cross-appeal from the court’s decision that plaintiffs had standing to bring this action.
The material facts are not in dispute. In March, 1981, Marshall Stillman was convicted in a federal district court in Pennsylvania of conspiracy to import and distribute heroin. The federal court set a $300,000 appeal bond. Marshall Stillman’s attorney contacted defendant Goldfarb Bonding Agency to arrange for the bond. Beatrice and Rochelle Stillman, the mother and wife respectively of Marshall Stillman, thereafter went to the Goldfarb Agency to negotiate the terms of the bond. On May 9, 1981, an agreement was reached providing for a $30,000, or ten percent, annual premium. Additionally, Beatrice and Rochelle Stillman signed a promissory note made payable to defendants Charles and Irwin Goldfarb, who were doing business in Michigan as the Goldfarb Agency. Beatrice Stillman also executed a quitclaim deed as collateral on property located in Michigan.
The $30,000 premium was paid upon the bond agreement’s execution. In addition, $5,000 was deposited with the Goldfarb Agency for anticipated out of pocket and air travel expenses necessary to get the bond filed as soon as possible. It appears that the $35,000 was paid with funds from the plaintiff Rochelle Stillman trust.
Originally, it was anticipated that the bond would be posted in a federal court in Michigan, then transferred to the federal court in Pennsylvania. After the Pennsylvania federal court rejected this arrangement, Charles Goldfarb traveled to Pennsylvania to post the bail bond. Both Marshall Stillman and Charles Goldfarb signed the bail bond, which permitted Marshall Stillman to travel to Oakland and Wayne Counties in Michigan and set forth the terms of forfeiture. The $300,000 bail bond was actually posted through two bonds in the amount of $150,000 each written by defendants International Fidelity Insurance Company, a New Jersey corporation, and Allegheny Mutual Casualty Company, a Pennsylvania insurer. The bonds were issued through their agents, defendants Goldfarb Agency and the Lehigh Agency, a New Jersey bonding company.
After Marshall Stillman was released on bond, he returned to Michigan. Marshall Stillman subsequently agreed to substitute $100,000 cash for the quitclaim deed executed by his mother as collateral. The source of funds for the collateral was the three plaintiff trusts: the Al Wein Trust (with Rochelle Stillman and Lawrence Davidson as co-trustees), the Beatrice Stillman Trust; and the Rochelle Stillman Trust. The collateral was placed with the Lehigh Agency in two installments. The first $50,000 was paid in April, 1981; the second $50,000 was paid in August, 1981.
In between these two payments, in a letter dated April 27, 1981, Marshall Stillman’s attorney set forth the terms of the agreement reached by Marshall Stillman, the Goldfarb Agency and the Le-high Agency on the placement of the collateral and the continuation of the bond. The letter was signed by Charles and Irwin Goldfarb and Marshall Stillman. The execution of this agreement took place in Michigan. It specified that premiums after the first year would be $5,000 for each sixty-day period, that the interest on the cash collateral would be received and held by the Lehigh Agency, and that title to the cash collateral would remain in the Stillman children’s names until and unless Marshall Stillman forfeited the bond. Further, in August, 1981, the property held as collateral was quitclaimed back to Beatrice Stillman.
The $5,000 premiums needed to continue the bond after the first year were paid to the Goldfarb Agency by checks drawn on the Beatrice Stillman Trust and the Rochelle Stillman Trust. The bail bond remained in effect until July 11, 1983, when Marshall Stillman’s conviction was affirmed. On August 31, 1983, the Lehigh Agency returned the $100,000 cash collateral to Marshall Stillman’s son, plaintiff Jeffrey Stillman, but retained the $26,487.34 interest earned on that collateral.
On November 6, 1985, plaintiffs commenced this action against the two insurers, Fidelity and Allegheny, and their agents, the Goldfarb and Lehigh Agencies, as well as two individual defendants, Charles and Irwin Goldfarb. Plaintiffs, which included the three trusts that paid the premiums and provided the funds for the collateral and Marshall Stillman’s two sons, Jeffrey and Michael Stillman, alleged that defendants exacted premi urns and charges for posting the bond in excess of statutory limits, improperly retained the interest on the cash collateral, and improperly retained part of the last $5,000 premium paid. Both parties subsequently moved for summary disposition, contending that there was no genuine issue of material fact. Plaintiffs claimed that Pennsylvania law governed the bonding agreement; defendants claimed that plaintiffs lack standing to bring this action. The trial court ruled that: (1) plaintiffs had standing; (2) Michigan law governs; (3) plaintiffs were not entitled to recover the interest earned on the cash collateral; and (4) a factual question existed as to plaintiffs’ entitlement to a prorated return of the last premium. Accordingly, on October 15, 1986, the trial court granted summary disposition in favor of defendants under MCR 2.116(C)(8) as to Count i (alleged illegal contract pursuant to Pennsylvania law) and under MCR 2.116(C)(10) as to Count n (alleged illegal contract under Michigan law). Further, all defendants were dismissed from the action except for Charles and Irwin Goldfarb and the Goldfarb Agency.
On appeal, we first consider defendants’ claim that plaintiffs lacked standing to bring this action. Defendants argue that Marshall Stillman, as the person who executed the April 27, 1981, agreement, was the only real party in interest. We disagree.
Initially, we note that plaintiffs’ reliance on Citizens for Pretrial Justice v Goldfarb, 415 Mich 255; 327 NW2d 910 (1982), for their argument is misplaced. Although Goldfarb did hold that only persons who had paid such a premium fee are entitled to bring an action to recover the excess charge, the interested parties in Goldfarb were both payers of the fee and parties to the contracts. The Goldfarb Court was not faced with the factual circumstances here. Nor was the Court asked to decide whether a payer who is not a party to the bond agreement and is not the person "for whom” the bond was purchased has standing. Plaintiffs’ claims in this case are based on two allegedly illegal contracts and, thus, the central issue is whether plaintiffs may challenge the validity of those contracts.
It is clear that an action must be prosecuted by the real party in interest. MCR 2.201(B). A real party in interest is one vested with the right of action on a given claim, although the beneficial interest may be in another. Weston v Dowty, 163 Mich App 238, 242; 414 NW2d 165 (1987). This standing doctrine recognizes that litigation should be commenced only by a party having an interest that will assure sincere and vigorous advocacy. Saginaw Public Libraries Bd of Library Comm’rs v Judges of the 70th District Court, 118 Mich App 379, 385; 325 NW2d 777 (1982), lv den 417 Mich 974 (1983). Here, plaintiffs consist of three trusts and two individuals. The trusts paid the premiums set forth in the March 11 and April 27, 1981, agreements and provided funds for the cash collateral. The problem, however, is that none of the trusts were parties to the bonding agreement, and there is no indication in the record that the trusts brought this action as assignees of the contracting parties’ causes of actions or that the agreements were executed by any of the Stillmans in a trustee capacity. The trusts merely provided the funds for the premiums and collateral. Since defendants did not owe any contractual duty to the trusts, the trial court erred in finding that they were real parties in interest. Weston, supra, pp 241-243.
The standing of the two individual plaintiffs is similarly lacking with regard to any action to recover allegedly excessive premiums paid. Their status, at best, with regard to premium payments was merely that of trust beneficiaries. Their standing to bring suit to recover interest received by the Lehigh Agency on the cash collateral is more problematic. The interest clause of the April 27, 1981, agreement provided that "title of said money will remain in the Stillman childrens’ names until and unless Mr. Stillman forfeits the bonds . . . .” Moreover, the agreement provided that the Still-man children could obtain the cash collateral on demand after the bail bond was canceled in the federal court. Accordingly, it appears that the individual plaintiffs had at least a beneficial interest in the agreement.
While a mere beneficial interest in a contract is not enough to confer standing, Weston, supra, a party having the status of a third-party beneficiary to a contract has the same right to enforce that contract as the promisee. Riemersma v Riemersma, 29 Mich App 485, 487; 185 NW2d 556 (1971); MCL 600.1405; MSA 27A.1405. An objective test is applied to ascertain whether a plaintiff is a third-party beneficiary of the contract. Rieth-Riley Construction Co, Inc v Dep’t of Transportation, 136 Mich App 425, 430; 357 NW2d 62 (1985), lv den 422 Mich 911 (1984), and see Spiklevitz v The Markmil Corp, 136 Mich App 587, 592; 357 NW2d 721 (1984). Since defendant Lehigh Agency undertook to pay the cash collateral directly to Marshall Stillman’s children upon demand after the bail bond was properly canceled, we conclude that the individual plaintiffs were the real parties in interest with regard to the collateral. Spiklevitz, supra; MCL 600.1405(1); MSA 27A.1405(1).
A determination that the three trust plaintiffs lacked standing makes it unnecessary to address the two issues they raise. We shall, however, con sider plaintiffs’ issues as they pertain to the individual plaintiffs, Jeffrey and Michael Stillman.
The individual plaintiffs first claim that the trial court erred in finding that the April 27, 1981, agreement was governed by Michigan, rather than Pennsylvania law. We disagree.
The validity and construction of a contract is controlled and is to be determined by the law of the situs, or place where the contract was entered into. Rubin v Gallagher, 294 Mich 124, 128; 292 NW 584 (1940). Every presumption is, however, allowed in favor of a legal purpose and a contract will not be adjudicated to be illegal when it is capable of a construction which will hold it and make it valid. Roland v Kenzie, 11 Mich App 604, 611; 162 NW2d 97 (1968). When a contract is open to construction, the court’s duty is to determine, if possible, the parties’ true intent by considering the contract language, its subject matter, and the circumstances surrounding the making of the agreement. Damerau v C L Rieckhoff Co, Inc, 155 Mich App 307, 312; 399 NW2d 502 (1986); Stroud v Glover, 120 Mich App 258, 262; 327 NW2d 462 (1982).
In the present case, the agreement provided for premium payments and collateral. It is not disputed that the ten percent premium term was valid under Michigan law, MCL 750.167b(3); MSA 28.364(2)(3), but excessive and invalid under Pennsylvania law. Additionally, the terms of the agreement were negotiated and agreed to in Michigan. The only factors linking the agreement to Pennsylvania were the fact that Charles Goldfarb traveled to Pennsylvania to post the bail bond in federal court and the fact that Allegheny and Fidelity both conducted business in Pennsylvania. The trip was necessary only because the Pennsylvania federal court rejected the parties’ attempt to post the bond in a federal court in Michigan. From the circumstances as a whole and the express terms of the bond agreement, it is clear that the parties intended to make a valid bond agreement under Michigan law. Thus, the trial court did not err in determining that Michigan law should govern the terms of the agreement.
Next, we consider the individual plaintiffs’ contention that the trial court erred in ruling that they could not recover the interest on the collateral. The pertinent Michigan statute, MCL 750.167b(3); MSA 28.364(2)(3), provides in part:
It shall be lawful to charge for executing any bond in a criminal case, but no person engaged in the bonding business . . . either directly or indirectly, shall charge, accept or receive any sum of money or property, other than the regular prevailing fee for bonding, which shall not exceed 10% of the face value of the bond for a 12 month period or any part thereof, from any person for whom he has executed bond, for any other service whatever performed in connection with any indictment, information or charge upon which the person is bailed or held.
In Goldfarb, supra, our Supreme Court construed this statute as not intending to prohibit bondsmen from taking a security interest in collateral in addition to the ten percent premium fee. The majority in Goldfarb, however, did not discuss whether a bondsman could permanently retain interest on cash collateral where the bondsman was already receiving the statutory maximum of ten percent.
The purpose of MCL 750.167b(3); MSA 28.364(2)(3) is to authorize a fee for executing a bond and to limit the amount of the fee. 415 Mich 276. To accept defendants’ argument that only the principal deposited as collateral need be returned, while permitting a bonding agency, or a joint agency venture as in this case, to permanently retain the interest earned on that collateral, would be contrary to the clear legislative intent that no person engaged in the bonding business "either directly or indirectly . . . charge, accept or receive any sum of money or property” exceeding the maximum ten percent fee authorized by the statute. Giving every presumption in favor of the validity of the bonding agreement, as well as the language of the April 27, 1981, written agreement and the circumstances attending the placement of the $100,000 cash collateral with defendant Lehigh Agency, we conclude that the true intent of the agreement was only that the Lehigh Agency receive and hold any interest earned, like the principal sum of $100,000 itself, as available collateral.
Lastly, the instant plaintiffs contend that the $5,000 forwarded to defendants for "expenses” should be similarly prohibited as a direct charge in excess of the ten percent statutory fee.
In Tierney v Collen, 272 Mich 200, 203; 261 NW 298 (1935), our Supreme Court held that a bondsman could not charge his client $80 for travel expenses incurred in posting bond in another city. Our Supreme Court found that the bondsman’s travel expenses were part of the service that he agreed to perform for $300.
In the instant case, defendants did not agree that the travel expenses involved in posting bond were to be performed as part of defendants’ services. On the contrary, plaintiffs and defendants agreed that defendants’ travel expenses would be supplied by plaintiffs in addition to a ten percent bonding fee. Furthermore, defendants made no profits from the expense money and returned the unused portion of the expenses. Thus, in the in stant case, expenses necessitated by defendants’ travel in posting bond in another state should not be prohibited as "fees” in excess of the ten percent statutory maximum fee.
In view of our resolution of these issues, we do not address defendants’ argument pertaining to the dismissal of the two defendant insurers (Fidelity and Allegheny). We do, however, reject their argument that the Lehigh Agency was not a proper defendant in this action. The fact that the Lehigh Agency accepted the cash collateral, alone, was sufficient to raise a factual question as to the nature of the Lehigh Agency’s undertaking. Since no genuine issue of material fact has been shown and the record reveals that the Lehigh Agency was an active participant in the bond negotiations and agreed to accept and hold the cash collateral, plaintiffs can maintain an action against the agency for recovery of the interest earned on that cash collateral. Finally, we decline to review defendants’ contention that they are entitled to a setoff of $15,000 since this counterclaim was not considered or decided by the trial court. See Michigan Mutual Ins Co v American Community Mutual Ins Co, 165 Mich App 269, 277; 418 NW2d 455 (1987).
Affirmed in part and reversed in part. The case is remanded to the trial court for entry of an order requiring the defendant Lehigh Agency to pay the $26,487.34 interest earned on the cash collateral to plaintiffs Jeffrey and Michael Stillman. | [
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Per Curiam.
Respondent, City of Utica, appeals as of right from an opinion and judgment of the Michigan Tax Tribunal in a dispute over assessments for the years 1980, 1981, and 1982 on a nonprofit, federally subsidized cooperative, Carriage House Cooperative. Carriage House was built in 1971 to provide housing for low and moderate income families pursuant to the provisions of § 221(d)(3) of the National Housing Act of 1959, 12 USC 17151(d)(3).
The housing project consists of 138 townhouse units located on 10.74 acres in the City of Utica and is subject to two mortgages. Because of federal interest subsidies, the mortgages carry a below-market interest rate of three percent. The mortgage payments are spread over a forty-year period and, under hud regulations and the terms of the mortgage agreements, the mortgage obligation binds future purchasers of the property and cannot be prepaid or cancelled without prior approval of the Federal Housing Commissioner.
The members of the cooperative may negotiate the selling price of their interest but are not permitted to sell their interest for more than the maximum transfer price prescribed in the cooperative’s by-laws.
Since Carriage House is a § 221(d)(3) housing project, it is not permitted to earn a profit. However, members have substantial tax benefits from their ownership in the cooperative. They receive deductions on their federal income tax for their share of the property’s mortgage interest payments, property taxes, and depreciation.
A hearing on this matter was held before a Tax Tribunal hearing officer in January and February, 1983, in which expert appraisers testified on behalf of both parties. In an opinion dated February 13, 1985, the hearing officer adopted an income approach to valuation. Both parties filed objections and exceptions to the proposed opinion.
The Tax Tribunal accepted the hearing officer’s factual findings but rejected her conclusions. In an opinion dated January 16, 1986, the Tax Tribunal adopted petitioner’s "cooperative sales” market approach. The City of Utica appeals. We affirm.
Utica argues first that the Tax Tribunal erred by failing to retroactively apply recent amendments to MCL 211.27(4); MSA 7.27(4), regarding the use of economic versus actual income in determining the true cash value of property for tax purposes.
We initially note that, notwithstanding the fact that Utica raises this question for the first time on appeal, such a question dealing with construction of pertinent statutory provisions warrants our full review for alleged "error of law.”
Real property is assessed for taxation purposes according to its "true cash value.” Const 1963, art 9, § 3. During the times applicable in this case, MCL 211.27(1); MSA 7.27(1) defined "true cash value” as follows:
As used in this act, "cash value” means the usual selling price at the place where the property to which the term is applied is at the time of assessment, being the price which could be obtained for the property at private sale, and not at forced or auction sale. A sale or other disposition by the state or an agency or political subdivision of the state of land acquired for delinquent taxes or an appraisal made in connection with the sale or other disposition or the value attributed to the property of regulated public utilities by a govern mental regulatory agency for rate-making purposes shall not be considered controlling evidence of true cash value for assessment purposes. In determining the value the assessor shall also consider the advantages and disadvantages of location; quality of soil; zoning; existing use; present economic income of structures, including farm structures; present economic income of land if the land is being farmed or otherwise put to income producing use; quantity and value of standing timber; water power and privileges; and mines, minerals, quarries, or other valuable deposits known to be available in the land and their value. [Emphasis added.]
Prior to March 30, 1983, MCL 211.27(4) and (5); MSA 7.27(4) and (5) provided:
(4) Except as provided in subsection (5), property shall be assessed at 50% of its true cash value in accordance with section 3 of article 9 of the state constitution of 1963.
(5) Assessment of property, as required in this section, shall be inapplicable to the assessment of property subject to the levy of ad valorem taxes within voted tax limitation increases to pay principal and interest on limited tax bonds issued by any governmental unit, including a county, township, community college district, or school district before January 1, 1964, if the assessment required to be made under this act would be less than the assessment as state equalized prevailing on the property at the time of the issuance of the bonds. This inapplicability shall continue until levy of taxes to pay principal and interest on the bonds is no longer required. The assessment of property required by this act shall be applicable for all other purposes.
Pursuant to 1982 PA 539, effective March 30, 1983, both of these subsections were deleted and replaced by the following version of subsection (4):
(4) As used in subsection (1), "present economic income” means in the case of leased or rented property the ordinary, general, and usual economic return realized from the lease or rental of property negotiated under current, contemporary conditions between parties equally knowledgeable and familiar with real estate values. The actual income generated by the lease or rental of property shall not be the controlling indicator of its cash value in all cases.
As noted by Utica, this amendment was an apparent attempt by the Legislature to overrule CAF Investment Co v State Tax Comm, 392 Mich 442; 221 NW2d 588 (1974) (caf i), and CAF Investment Co v Saginaw Twp, 410 Mich 428; 302 NW2d 164 (1981) (caf ii), in which the Supreme Court held that "economic income” as used in MCL 211.27; MSA 7.27 means actual income. The Court concluded that when the income approach to valuation was used for property tax purposes in the case of property encumbered by a long term unfavorable lease, the statute requires the actual income of the property to be used. Uniroyal, Inc v City of Allen Park, 138 Mich App 156, 162; 360 NW2d 156 (1984).
In 1983, the following three sentences were added to MCL 211.27(4); MSA 7.27(4):
This subsection shall not apply to property when subject to a lease entered into prior to January 1, 1984 for which the terms of the lease governing the rental rate or tax liability have not been renegotiated after December 31, 1983. This subsection shall not apply to a nonprofit housing cooperative when subject to regulatory agreements between the state or federal government entered into prior to January 1, 1984. As used in this subsection, "nonprofit cooperative housing corporation” means a nonprofit cooperative housing corpo ration which is engaged in providing housing services to its stockholders and members and which does not pay dividends or interest upon stock or membership investment but which does distribute all earnings to its stockholders or members. [Emphasis added. 1983 PA 254, effective December 29, 1983.]
In the instant case, the 1982 and 1983 amendments did not go into effect until after the tax years in question. However, both were in effect during the interim period between the hearing and the time the tribunal issued its decision on February 13, 1985. Although acknowledging these facts and law to the contrary, Utica nonetheless argues that the Tax Tribunal erred by not applying the March 30,1983, amendment retroactively.
In a somewhat similar situation, this Court refused to apply these amendments in the case before it, simply stating:
While we realize that the Michigan Legislature has recently amended the General Property Tax Act in response to the Supreme Court’s decisions in cap i and cap ii, these amendments were not in effect for the tax years involved in the instant case and we thus do not consider the effect of such legislation on the tribunal’s valuation of the true cash value of petitioner’s office parcel. [Uniroyal, supra at 162.]
Likewise, we also decline to apply the amendments in this instance. Moreover, we are unpersuaded by Utica’s argument that these amendments were remedial in nature and thus required retroactive application. Selk v Detroit Plastic Products, 419 Mich 1, 9-10; 345 NW2d 184 (1984). Finally, the Legislative intent is that this subsection shall not apply to property when subject to a lease entered into prior to January 1, 1984, for which the terms of the lease governing the rental rate or tax liability have not been renegotiated after December 31, 1983, and to a nonprofit housing cooperative when subject to regulatory agreements between the state or federal government entered into prior to January 1, 1984.
We are next asked to decide whether the Tax Tribunal committed an error of law or adopted a wrong principle by using petitioner’s market approach to valuation.
As a general rule, there are three methods of valuation which are acceptable to the Michigan Tax Tribunal and the courts. They are the costless-depreciation approach, the capitalization-of-income approach, and the market approach. Antisdale v City of Galesburg, 420 Mich 265, 276; 362 NW2d 632 (1984). However, other valid variations of each method are not precluded. Id. at 276-277, n 1. The Tax Tribunal is charged with the duty to select the approach which provides the most accurate valuation under the circumstances of the individual case.
Any method for-determining true cash value which is recognized and reasonably related to the fair market value of the property is an acceptable indication of true cash value. Pinelake Housing Cooperative v Ann Arbor, 159 Mich App 208, 221; 406 NW2d 832 (1987). Regardless of the valuation method used, the value determination must represent the amount for which the subject property would sell, that is, the valuation must be based on current market conditions. Id.
This Court’s review of Tax Tribunal decisions, in the absence of fraud, is limited to whether the tribunal made an error of law or adopted a wrong principle. The Court accepts the factual findings of the tribunal as final, provided they are supported by competent, material, and substantial evidence. Const 1963, art 6, § 28; Fisher v Sunfield Twp, 163 Mich App 735, 741; 415 NW2d 297 (1987), and cases cited therein.
The valuation method proposed by petitioner’s appraiser, Laurence Allen, and adopted by the Tax Tribunal, is the market approach utilizing a mortgage equity technique. The value as derived under this approach is comprised of two components: (1) an "equity” component and (2) a mortgage component.
Allen calculated the "equity” component by multiplying the maximum allowable transfer price per unit, pursuant to the cooperative’s by-laws, by the total number of units in the cooperative. The mortgage component is calculated by determining the cash equivalent price or present value of the existing mortgage. As previously noted by this Court, this component "is essentially derived by determining the amount of money a prospective purchaser would need to invest as of each tax date in order to produce enough income to pay off the mortgage according to its terms.” Meadowlanes Limited Dividend Housing Ass’n v City of Holland, 156 Mich App 238, 244; 401 NW2d 620 (1986), lv den 428 Mich 866 (1987). After calculating both components, Allen added the two values together to obtain the market value of the property.
Allen’s method of valuation is a variation of the traditional approaches to valuation and has yet to be accorded approval by our courts in valuing § 221(d)(3) nonprofit property. However, in rejecting the traditional approaches to valuation, the Tax Tribunal recognized the unique restrictions and advantages of the subject property: a subsidized, nonprofit, owner-occupied cooperative apartment complex encumbered by federal restrictions. After review, we can find no indications that the Tax Tribunal committed an error of law or adopted a wrong principle by relying upon Allen’s "cooperative sales” approach. In fact, there are indications that this method is favorable in valuing § 221(d)(3) property.
First, the cost approach has been clearly recognized as "an inappropriate method to value low-income, government-subsidized housing projects,” Pinelake, supra at 222. Next, several panels of the Tax Tribunal have argued persuasively that the income approach is an inappropriate method to value nonprofit cooperatives which attract investors primarily based on their tax benefits rather than their income-producing potential. Finally, two of respondent’s income approaches to valuation failed to rely on actual income and expense figures, caf i, supra; caf ii, supra. Respondent’s valuation estimates based on the market approach were also based on erroneous premises. In Market Valuation a, respondent’s expert, Richard Razet, used for comparison conventional apartment complexes which were not subject to the same level of strict government regulations as the subject property. In Variation b, Razet failed to discount the outstanding mortgage to its present value. Tradewinds East Associates v Hampton Charter Twp, 159 Mich App 77, 91-92; 406 NW2d 845 (1987), lv den 428 Mich 920 (1987).
At trial, respondent’s experts indicated that all three standard methods of appraisal possess problems when applied to § 221(d)(3) property. Consequently, the Tax Tribunal correctly concluded that a different approach would have to be utilized.
In Meadowlanes, supra, this Court gave explicit approval, with one modification, to the mortgage component of Allen’s "cooperative sales” formula and it appeared to give approval to the basic outlines of Allen’s approach. Although that case involved valuation for a § 236 limited dividend housing project using the "income approach . . . using the mortgage equity method,” the principles are relevant and instructive to the disposition of the instant matter.
Although finding Allen’s valuation method to be a "reasonable and accurate” valuation method, the Meadowlanes Court remanded in order that the Tax Tribunal could consider what effect the interest subsidy had on the value of the federally subsidized income housing. Id. at 252. However, in Tradewinds, supra at 87-88, this Court rejected the conclusion that the Tax Tribunal must consider the value of a mortgage subsidy, if any, in valuation of property.
In light of Tradewinds, we are not willing to upset the Tax Tribunal’s decision.
We also find support for the propriety of Allen’s "equity component” as well. First, the Meadow-lanes Court appeared to approve the basic formula underlying petitioner’s approach which used both the equity and mortgage components. Additionally, respondent’s expert, Razet, found Allen’s method for calculating the equity of the property to be acceptable, even though he disagreed with Allen’s method for determining the value of the mortgage.
In sum, we can find no indication that the Tax Tribunal committed error or adopted a wrong principle by adopting Allen’s approach to assessing the true cash value of the subject property. Consequently, we affirm the Tax Tribunal’s determination.
Affirmed.
That part of the statute reads:
The actual income generated by the lease or rental of property shall not be the controlling indicator of its cash value in all cases. [Section 27(4), 1982 PA 539, effective March 30, 1983.] | [
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G. Schnelz, J.
Defendant was convicted after a jury trial in Muskegon Circuit Court of assault with intent to commit murder, MCL 750.83; MSA 28.278, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). He subsequently pled guilty to being an habitual offender, fourth offense, MCL 769.12; MSA 28.1084. Defendant was sentenced to 50 to 250 years imprisonment for the assault conviction, to be served consecutive to the mandatory two-year sentence for the felony-firearm conviction. He appeals as of right from his conviction and sentence. We reverse and remand for a new trial.
The charges giving rise to defendant’s conviction arose from a December 30, 1985, shooting incident involving defendant and Muskegon County Sheriff’s Detective Ernest Heikkila. Detective Heikkila had questioned defendant about a breaking and entering case on two occasions prior to the shooting, and was attempting to arrest defendant on the day of the shooting. Heikkila testified that, while waiting for another deputy to assist him in executing the arrest warrant, he saw defendant and a female companion leave the building where defendant was staying and get into a car parked on a lot adjacent to the building. Heikkila approached the car from the rear, and was noticed by defendant, who squirmed around in the passenger seat. Heikkila drew his gun, because he thought defendant was either trying to hide a gun or get to one in the car. Defendant got out of the car, fired twice at Heikkila, and jumped back into the car. Heikkila fired through the back window of the car two or three times. Defendant came out of the car again, and Heikkila fired one more shot at him. Heikkila was hit in the lower abdomen at some point during the exchange of fire.
Defendant asserted at trial that he fired his gun in self-defense after Heikkila shot at him first. After getting into the car and rubbing his coat to create some heat, he looked out the back window and saw Heikkila pointing a gun at him. He saw the back window "crystallize,” ducked out the passenger door, and drew his gun, firing four or five times. Heikkila fired six times, hitting defendant in the head, chest and arm. Defendant denied any intent to kill Heikkila. He further testified that he was afraid of Heikkila prior to the shooting because the detective had threatened to "burn your ass good” after their second meeting.
On appeal, defendant first argues that the trial court committed error requiring reversal when it made improper ex parte communications to the jury and in declining the jury’s requests to review certain testimony. We agree.
During deliberations, the jury sent the trial judge a note indicating, "We are down to two people from reaching a total agreement. We would welcome any input concerning this decision process. We feel we haven’t enough info. Would you reply?” The trial judge responded by writing, "Keep working.” This note was sent back into the jury room, presumably with the court clerk. Although there is no record of what occurred, it is undisputed that neither defendant nor his counsel were present in chambers or in the jury room to observe or approve of the communication.
Our Supreme Court has established a strict rule prohibiting communication with a deliberating jury outside of the courtroom and outside of the presence of counsel. See People v Cain, 409 Mich 858 (1980), reversing 94 Mich App 644; 288 NW2d 465 (1980); Zaitzeff v Raschke, 387 Mich 577, 579; 198 NW2d 309 (1972); People v Kangas, 366 Mich 201, 206-207; 113 NW2d 865 (1962). Such communications or instructions by the court to the jury, in the absence of the parties or their counsel, are grounds for a new trial regardless of whether the communications or instructions were prejudicial. Kangas, supra. In People v Lyons, 164 Mich App 307; 416 NW2d 422 (1987), this Court granted a new trial where the trial judge, without consulting the parties, told the jury to "keep on working” after receiving a note that the jury could not reach a decision.
We find the present case to be indistinguishable from People v Lyons, supra, and the cases cited above. Here, the trial judge communicated with the jury concerning its deliberations outside the presence of defendant or his counsel. The communication intruded upon the absolute sanctity of the jury’s deliberation, thereby resulting in error requiring reversal.
We also note that the trial judge’s negative response to a second jury note stating, "Would it be possible to see and review the transcripts used to varify [sic] testimonies” was error. Although the judge’s response was correct to the extent that the jury sought information from improper sources, the judge foreclosed the proper alternative of reading back to the jury portions of the trial transcript. Although discretionary, requests for reading should normally be granted absent unusual circumstances. People v Howe, 392 Mich 670, 675-676; 221 NW2d 350 (1974). Here, we find no unusual circumstances which would justify the court’s refusal to have part of the trial transcript read back to the jury. After consulting with the parties, the court should have informed the jury of this possibility.
We now consider those remaining issues raised by defendant which may arise on retrial.
Defendant argues that the circuit court erred in determining that statements made by defendant to the police from his hospital bed were voluntary. Defendant was questioned by a police officer in the hospital approximately eighteen hours after he returned from surgery. The officer was accompanied by two additional officers and a prosecutor. Before answering questions, defendant was given warnings pursuant to Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966). Defendant answered some questions, but when asked whether he intended to kill Detective Heikkila, defendant stated, "It’s too incriminating to answer that without legal representation.” At this point, the questioning ceased. The interview lasted between five and ten minutes.
We find that, because defendant’s statements were admissions of fact, rather than a confession of guilt, no finding of voluntariness by the trial court was necessary. An admission of fact is distinguished from a confession of guilt in that an admission does not by itself show guilt in the absence of proof of other facts not admitted by the defendant. People v Porter, 269 Mich 284, 290; 257 NW 705 (1934). There is no need for a determination of voluntariness pursuant to People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965), unless the defendant has confessed. People v Drielick, 56 Mich App 664, 667; 224 NW2d 712 (1974), aff'd 400 Mich 559; 255 NW2d 619 (1977). Here, defendant’s statements to the police did not indicate his guilt of the charged offense absent facts disproving his defense of self-defense. Defendant’s statements were admissible at trial for impeachment purposes without a prior determination of voluntariness. See also People v Claybon, 124 Mich App 385, 399; 335 NW2d 493 (1983).
Defendant also argues that a pretrial motion for a change of venue should have been granted. We disagree. Defendant’s pretrial motion for a change of venue was based on a single newspaper article appearing about six weeks before trial in the Muskegon Chronicle. On appeal, this Court will review based on the totality of the circumstances, including the content of news accounts and the voir dire examination transcript. People v Duby, 120 Mich App 241, 246-247; 327 NW2d 455 (1982). Upon a review of the newspaper account and the voir dire transcript, we find that defendant has not met his burden of showing actual jury prejudice or an atmosphere surrounding the trial such as to create a probability of prejudice. See People v Bloom, 15 Mich App 463, 468-469; 166 NW2d 691 (1969), lv den 382 Mich 770 (1969). Nor has defendant shown preconceived notions of guilt by the jurors resulting from actual prejudice, strong community feeling or a pattern of deep and bitter prejudice. See Sheppard v Maxwell, 384 US 333; 86 S Ct 1507; 16 L Ed 2d 600 (1966).
Defendant also argues that the trial court erred in two of its evidentiary rulings. First, we uphold the trial court’s refusal to admit transcripts of defendant’s statements to police into evidence as exhibits, because the prior statements were not substantive evidence. See People v Andre Alexander, 112 Mich App 74, 77; 314 NW2d 801 (1981); People v Rodgers, 388 Mich 513, 519; 201 NW2d 621 (1972). Second, we agree with defendant that Detective Heikkila’s rebuttal testimony following defendant’s character witness was improper because it concerned a collateral matter. See People v Guy, 121 Mich App 592, 604-605; 329 NW2d 435 (1982), lv den 417 Mich 1088 (1983).
Defendant next raises six objections to the trial court’s charge to the jury. First, we disagree that defendant was entitled to an instruction on Detective Heikkila’s threat to defendant that he would "burn [defendant’s] ass good” because it was not sufficient to put a reasonable person in fear of physical violence. See People v Shelton, 64 Mich App 154, 156; 235 NW2d 93 (1975). Second, we disagree that the trial court erred in failing to instruct that defendant’s general good character was relevant to reasonable doubt as well as credibility. Defense counsel specifically asked defendant’s character witnesses only about defendant’s reputation for truthfulness. There was no testimony offered concerning any other character trait of defendant. Thus, a jury instruction concerning evidence of general character was not required. See People v Simard, 314 Mich 624, 631; 23 NW2d 106 (1946). Third, we find that the evidence supported the trial court’s instruction that defendant had a duty to retreat. A defendant is excused from a duty to retreat only in inhabited physical structures within the curtilege of his home. People v Godsey, 54 Mich App 316, 320; 220 NW2d 801 (1974). Fourth, the trial court did not err in refusing to instruct on mitigation and imperfect self-defense. The rule regarding imperfect self-defense applies only to mitigate second-degree murder to voluntary manslaughter where the accused was the initial aggressor. People v Deason, 148 Mich App 27, 31-32; 384 NW2d 72 (1985), lv den 428 Mich 869 (1987). An instruction on this rule is clearly inappropriate here where there is no murder ánd defendant maintained that Detective Heikkila fired first. Fifth, defendant’s desired instruction concerning his right to use deadly force to defend against an unlawful arrest made with excessive force is only appropriate where defendant contests the lawfulness of the arrest at trial. Finally, we agree that the trial court erred when it instructed the jury it could find defendant guilty of count i and count ii, or not guilty. However, instructional errors are to be analyzed under a harmless error standard. See People v Thinel, 429 Mich 859 (1987). Here, given that defense counsel stipulated to defendant’s guilt on count ii if the jury found him guilty on count i, and that defendant admitted to the possession of a firearm and even to shooting the officer, we would find the instruction to be harmless error.
Defendant raises two objections to his sentence. Defendant’s first contention is without merit. Because defendant pled guilty to being an habitual offender prior to the imposition of sentence on his underlying conviction, the sentencing judge properly imposed a single sentence on the habitual offender conviction. See People v Gren, 152 Mich App 20, 27-28; 391 NW2d 508 (1986). Defendant’s second objection is more troublesome. In the event defendant is convicted after retrial, the sentencing judge may not "reverse engineer” defendant’s sentence using potential disciplinary credit and good time in arriving at a minimum sentence. See People v Fleming, 428 Mich 408, 422-427; 410 NW2d 266 (1987).
We find it unnecessary to address defendant’s remaining issues.
Reversed and remanded. | [
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R. B. Burns, J.
Defendant was convicted by a jury of one count of first-degree premeditated murder and one count of first-degree felony murder, MCLA 750.316; MSA 28.548, and appeals. We affirm in part and reverse in part.
At about 10:15 p.m. on December 22, 1975, Deborah Knapp borrowed her brother’s car and left her mother’s home in South Haven, Van Burén County, to go to a grocery store for potato chips. She did not return home. The following morning her body was found in Allegan County, nude except for socks and shoes, and with multiple stab wounds. That same morning the car was found submerged in the Black River in South Haven, with some of her clothing in the car.
Defendant lived with his wife in South Haven in the home of his mother-in-law, Mrs. Patton. Mrs. Patton went to the South Haven State Police Post in the afternoon of December 23, and told police that when defendant arrived home at 1 a.m. that morning his jacket, clothes and shoes were bloody. Defendant had explained that he was with Steve Pratt, had hit a dog, picked it up, taken it to its owner, and helped bury it. When contacted, Steve Pratt said he was not with defendant. The blood was determined to be human.
Various statements by defendant were admitted at trial. A Walker hearing was held to determine the voluntariness of these statements, at the conclusion of which the trial court determined that defendant had knowingly and intelligently waived his Miranda rights, and his statements were given voluntarily without the inducement of promises of leniency. On review, we are to examine the entire record and make an independent determination of voluntariness. Unless we are left with a definite and firm conviction that the trial judge erred, we are to affirm. See, e.g., People v McGillen #1, 392 Mich 251, 257; 220 NW2d 677, 679 (1974).
Defendant was arrested at 4:45 p.m. on December 23 in Hartford by Trooper Dell. Trooper Dell read defendant his rights and asked defendant whether he wished to waive them. As to whether he wanted an attorney, defendant said "It looks like I’m going to need one”, and defendant also indicated he wished to remain silent. Trooper Dell then drove defendant to the South Haven State Police Post without speaking to him, arriving at approximately 5:10 p.m. Defendant was taken to see Detective Rank who read defendant his rights. Defendant waived his rights, and gave approximately the same story to Detective Rank that he had given his mother-in-law. However, later in the evening, after having seen his wife, father, and mother-in-law, and having again been advised of his rights and having waived them, defendant told Detective Karsen that he had been with the victim, had engaged in intercourse with her and had struck her, but denied raping her or stabbing her to death.
Defendant repeated substantially the same story he had given Detective Karsen to Detectives Ross and Waldron on December 24 and 26. Before each session he was advised of his rights and waived them. However, at one of these sessions, Ross called defendant a liar, and defendant became angry and said "I don’t want to talk to anybody, I want to see a lawyer”. Waldron spoke to Ross, who went elsewhere in the partitioned room. Defendant then started talking about an unrelated subject, but Waldron swung the conversation around to the killing.
Detective Karsen obtained approximately the same statement from defendant again on December 30. Prior to questioning, Detective Karsen had defendant recite his rights, and asked if he would talk without an attorney or someone else present. Defendant assented. When asked if he had an attorney, defendant said no; Detective Karsen then asked if defendant wanted to talk to an attorney and defendant said he did, but he would talk to Karsen without an attorney present.
Defendant argues that all of his statements were inadmissible because they were obtained after he asserted his right to counsel to Trooper Dell and Detectives Ross and Waldron. In Miranda v Arizona, 384 US 436, 474; 86 S Ct 1602, 1628; 16 L Ed 2d 694, 723; 10 ALR3d 974, 1011 (1966), the Supreme Court wrote:
"If the individual states that he wants an attorney, the interrogation must cease until an attorney is present. At that time, the individual must have an opportunity to confer with the attorney and to have him present during any subsequent questioning. If the individual cannot obtain an attorney and he indicates that he wants one before speaking to police, they must respect his decision to remain silent.”
Read literally, this passage would seem to indicate that defendant should never have been questioned after his initial assertion of his right to counsel to Trooper Dell, since he was not provided with an attorney. However, the Supreme Court also wrote in Miranda:
"If the interrogation continues without the presence of an attorney and a statement is taken, a heavy burden rests on the government to demonstrate that the defendant knowingly and intelligently waived his privilege against self-incrimination and his right to retained or appointed counsel.” 384 US at 475; 86 S Ct at 1628; 16 L Ed 2d at 724; 10 ALR3d at 1011.
Does this latter passage apply where defendant has already requested an attorney?
Although the Supreme Court explicitly distinguished the instant situation in Michigan v Mosley, 423 US 96; 96 S Ct 321; 46 L Ed 2d 313 (1975), the Court’s reasoning in Mosley is helpful in resolving the instant ambiguity. In Mosley the Supreme Court interpreted the Miranda requirement that the interrogation must cease when an individual asserts his right to remain silent. The Court observed that the passage could be read as permitting resumption of interrogation after a momentary respite, but that such interpretation would permit continuing interrogation to undermine the will of the person being interrogated. At the other extreme, the passage could be read as requiring that interrogation never resume, which would frustrate legitimate police activity and the person’s right to subsequently waive his right to remain silent. The Court determined the critical issue to be whether the person’s right to cut off questioning was scrupulously honored.
The instant passage cannot be read as permitting resumption of interrogation after a momentary respite, for that would do violence to the language requiring the interrogation to "cease until an attorney is present”. However, the passage may be read as permitting a later interrogation after the passage of a significant period of time. To hold that the counsel right can never be knowingly and intelligently waived after having previously been asserted would tend to frustrate legitimate police activity and defendant’s right to speak without the aid of counsel. We therefore hold that, when a person asserts his right to counsel, the interrogation must cease until an attorney is present, or, after the lapse of a significant period of time, the person knowingly and intelligently waives his counsel right. See, e.g., United States v Pheaster, 544 F2d 353, 367-368 (CA 9, 1976).
Although we find a very close question as to whether defendant’s waiver of his right to counsel to Detective Rank was knowing and intelligent, due to the relatively short period of time between defendant’s assertion of his right to Trooper Dell and its subsequent waiver, we are not left with a definite and firm conviction that the trial court erred. People v McGillen, supra. Defendant’s statement that it looked like he was going to need an attorney was sufficiently equivocal to raise a doubt as to whether he in fact believed he needed an attorney; Trooper Dell scrupulously honored his right to cut off questioning and did not speak to him on the trip to the State Police Post; the subsequent waiver was to a different person at a different location; there was no evidence that psychological pressure was brought to bear to induce the waiver; and the warnings were repeated prior to the waiver. Defendant’s initial statement was substantially the same as that given to his mother-in-law, which suggests an intelligent decision that he could make a non-damaging statement without the aid of an attorney. All truly damaging statements given on December 23 came after defendant had been given his rights three times by police and his father had told him not to talk until after he had seen a lawyer. The prosecution carried its heavy burden of showing knowing and intelligent waiver.
Detective Waldron’s continuing interrogation after defendant asserted his right to counsel violated the clear Miranda requirement that the interrogation must cease until an attorney is present.
Prior to taking defendant’s statement on December 30, Detective Karsen carefully ascertained exactly what defendant desired with reference to his right to counsel. There is no indication that defendant’s waiver was the product of the now repeated failure of the police to honor his request for counsel. Although this issue also presents a close question, we again are not left with a definite and firm conviction that the trial court erred. People v McGillen, supra.
It is unclear at which interview and at which point in the interviews with Detectives Ross and Waldron defendant asserted his right to counsel. However, his statements to them were not materially different from those given to Detective Karsen or from his own testimony at trial. Thus, whatever ought to have been excluded was cumulative, and its admission harmless beyond reasonable doubt.
Defendant also argues that the statements were involuntary because he was led to believe that he would obtain leniency and psychiatric treatment in exchange for them. Cf. People v Pallister, 14 Mich App 139; 165 NW2d 319 (1968). Although there is some testimony to support defendant’s argument, the trial court found more credible testimony that no promises were made from which defendant could have inferred he would receive leniency and treatment in exchange for the statements. We are not left with a definite and firm conviction that the trial court erred. People v McGillen, supra.
Defendant also argues that the admissions were obtained as a result of an illegal arrest. The trial court took the issue under advisement, and the list of docket entries in the lower court record indicates that further testimony was taken on this issue, arguments heard, and the issue resolved against defendant by the trial court. Since we have not been supplied with a transcript of this later proceeding by defendant, GCR 1963, 812.2, we have nothing to review, and do not reach the merits of this issue.
MCLA 750.316; MSA 28.548 reads:
"All murder which shall be perpetrated by means of poison, or lying in wait, or any other kind of wilful, deliberate and premeditated killing, or which shall be committed in the perpetration, or attempt to perpetrate any arson, rape, robbery, burglary, larceny of any kind, extortion or kidnapping, shall be murder of the first degree, and shall be punished by solitary confinement at hard labor in the state prison for life.” (Emphasis added.)
As previously noted, defendant was found guilty of both premeditated murder and felony murder.
Common-law rape has been defined as "the carnal knowledge of a woman by force and against her will”. People v Crosswell, 13 Mich 427, 432 (1865).
MCLA 750.520; MSA 28.788 provided in part:
"Any person who shall ravish and carnally know any female of the age of 16 years, or more, by force and against her will, or who shall unlawfully and carnally know and abuse any female under the full age of 16 years, shall be guilty of a felony * * * .”
The above statute has been repealed, 1974 PA 266, § 3, and in its place we have MCLA 750.520b; MSA 28.788(2) which defines criminal sexual conduct in the first degree. The definition includes sexual penetration with another person where:
"(e) The actor is armed with a weapon or any article used or fashioned in a manner to lead the victim to reasonably believe it to be a weapon.
"(i) The actor causes personal injury to the victim and force or coercion is used to accomplish sexual penetration.”
This section does not necessarily require that sexual penetration be accomplished by force. It does not require the actor, armed with a weapon, to use the weapon in order to accomplish sexual penetration.
A person could be guilty of criminal sexual conduct in the first degree who would not have been guilty of rape under the prior statute.
In the present case it is not necessary to rule on this particular question but we mention the conflict to alert the Legislature and the profession of a possible conflict.
Defendant’s conviction of first-degree premeditated murder and first-degree felony murder violates double jeopardy protection. Const 1963, art 1, § 15. There was only one murder and hence one crime, albeit several of the aggravating factors which make a murder first-degree murder were present in the instant case. MCLA 750.316; MSA 28.548. There was sufficient evidence of premeditation to sustain the conviction. The felony murder conviction is reversed.
Defendant’s other assigned errors are either without merit or moot.
Affirmed in part, reversed in part.
People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965).
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966). | [
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On Rehearing
A. C. Miller, J.
These cases present another facet of the many problems arising under the Michigan no-fault insurance act, MCLA 500.3101 et seq.; MSA 24.13101 et seq. The two cases were consolidated on appeal because both present the problem of recovery by a motorcyclist where the motorcyclist collided with an automobile covered by a no-fault policy and where the motorcyclist was covered by a no-fault policy on the family car, the latter containing a $5,000 deductible on the personal protection insurance.
In the first case plaintiff Davidson was operating a motorcycle and was the "named insured” in a policy on the family car issued by Citizens Mutual Insurance Company. The policy was issued pursuant to § 3109(3); MCLA 500.3109(3); MSA 24.13109(3). At that time the commissioner had approved a $5,000 deductible. Defendant Johnson was the owner and operator of the automobile involved and was covered by a no-fault policy issued by The Farm Bureau Insurance Group. Both insurance companies were joined as defendants.
Plaintiff initially filed a common-law action, but later amended to claim no-fault benefits against one or the other of the insurance companies. The facts were stipulated and the court granted plaintiff’s motion for summary judgment and ordered defendant Farm Bureau to pay no-fault benefits to plaintiff, denied the property damage claim and denied all claims against defendant Johnson and Citizens.
In the second case plaintiff Vander Zyl was operating a motorcycle and an accident occurred with an automobile owned and operated by defendant Danevicz. Plaintiff was covered as a "name insured” by a policy issued by defendant State Farm Mutual Automobile Insurance Company containing the same deductible mentioned above. Plaintiff complained against Danevicz for the no-fault benefits and for residual losses. The latter filed a third-party complaint against State Farm for indemnity.
The principal issue in both cases is the validity of the deductible provision. Property damage and attorney fee issues are also raised.
The deductible provision was authorized pursuant to MCLA 500.3109(3); MSA 24.13109(3) which provides:
"An insurer providing personal protection insurance benefits may offer, at appropriately reduced premium rates, a deductible of a specified dollar amount which does not exceed $300.00 per accident. This deductible may be applicable to all or any specified types of personal protection insurance benefits but shall apply only to benefits payable to the person named in the policy, his spouse and any relative of either domiciled in the same household. Any other deductible provisions require the prior approval of the commissioner.”
In the cases at bar, it is the last sentence of MCLA 500.3109(3) which has caused the controversy. It is the opinion of the Court that this sentence can be interpreted two ways, but in either case the $5,000 deductible clause is invalid.
The word "provision” can be construed as referring to the "conditions” specified in the next-to-last sentence of § 3109(3). If so interpreted, the Legislature meant terms and conditions within the statutory amount of $300, and therefore the $5,000 deductible clause is invalid. The commissioner had no authority to increase the amount of the deductible. His sole authority was to authorize conditions of applicability of the limited deductible amount.
To interpret the grant of authority to mean that the commissioner can increase the deductible without limitation would be an unconstitutional delegation of legislative authority without a standard and a denial of due process. The separation of powers clause (Const 1963, art 3, § 2), states:
"The powers of government are divided into three branches; legislative, executive and judicial. No person exercising powers of one branch shall exercise powers properly belonging to another branch except as expressly provided in this constitution.”
Callaghan’s Michigan Pleading and Practice, Vol 8, § 60.13, pp 106-107, contains the following discussion of the rule:
"60.13. — Delimitation of Conferred Powers. It is for the legislative body, in delegating powers to an administrative agency, to determine and declare just what powers are delegated and the circumstances in which any delegated power is to be exercised. Accordingly, a statute conferring authority upon an agency must clearly define the power or powers conferred, and must, directly or impliedly, ñx conditions upon which the delegated authority shall become operative and prescribe defínite legal limits upon the exercise thereof.” (Emphasis added.)
If construed to permit the commissioner to increase the amount of the deductible, the subject delegation of power is unconstitutional. Department of Natural Resources v Seaman, 396 Mich 299, 240 NW2d 206 (1976), Devereaux v Township Board of Genesee Twp, 211 Mich 38; 177 NW 967 (1920), Cameron v Secretary of State, 63 Mich App 753; 235 NW2d 38 (1975). Therefore, under either interpretation, the $5,000 deductible is not valid, and each plaintiff will recover personal protection insurance benefits from his own insurer for his injuries exceeding $300.
The trial court in Davidson denied the property damage claim for the motorcycle itself; we reverse on the basis of Shavers v Attorney General, 65 Mich App 355; 237 NW2d 325 (1975), where this Court quoted Judge Horace Gilmore’s ruling which provided in part:
"G. * * * As a further consequence, the residual liability insurance coverage required by Section 3131 of The Act includes property damage liability.” Id., 360-361.
The Court affirmed that ruling:
"Our judgment is that the distinction between mov ing vehicles and other types of property found in the no fault act’s property damage provisions is an unreasonable one. The act is an attempt to assure prompt and adequate compensation for economic losses due to automobile accidents. To achieve this purpose, recovery for losses due to personal injury is had without regard to the negligence or "fault” of the injured party. Persons suffering certain types of property losses are reimbursed, under the act, without inquiry as to whether negligence caused their loss. Yet the act provides no means for compensating the owner of a vehicle damaged while it was being operated.
"Good reason can be offered, in light of the act’s objective, for treating personal injury losses differently than property losses. The tort system operated at different levels of efficiency and adequacy of compensation for these types of claims. A valid distinction could also be made based upon the different burdens these types of losses placed on society and the individuals involved. But we fail to see any reasonable basis, in view of the act’s purposes, that justifies the property damage classifications made by the act. We therefore hold that the property damage provisions are violative of equal protection.” Id., 369-370.
Since the parties stipulated to fault, property damages were properly recoverable from defendant Johnson’s insurer, Farm Bureau.
The trial court also denied attorneys fees. Section 3148(1) of the no-fault act, MCLA 500.3148(1); MSA 24.13148(1) provides:
"An attorney is entitled to a reasonable fee for advising and representing a claimant in an action for personal or property protection insurance benefits which are overdue. The attorney’s fee shall be a charge against the insurer in addition to the benefits recovered, if the court finds that the insurer unreasonably refused to pay the claim or unreasonably delayed in making proper payment.”
Thus, attorney fees are only to be charged against an insurer upon a finding that the insurer "unreasonably” delayed payment or refused to pay. Because of the substantial constitutional and statutory construction issues raised in the instant case, it cannot be said that the refusal of both insurers to pay the claimed benefits was "unreasonable”. The trial court’s denial of attorney fees was proper.
In Davidson, the order of the trial court is modified to provide that defendant Citizens Mutual Insurance Company shall pay to plaintiff personal injury protection benefits of $2,757.50 less the $300 deductible, or $2,457.50; and that defendant Farm Bureau Insurance Group shall pay to plaintiff the property damage item of $730.
In Vander Zyl, inasmuch as State Farm Mutual Automobile Insurance Company was originally named a party defendant by plaintiff in his district court action and added by stipulation as a third-party defendant in the action below, we deem it a party defendant in the instant action for all practical purposes, and therefore amend the trial court’s order to provide that State Farm shall pay to plaintiff $11,000 for no-fault benefits, less the $6,-000 already paid and less the $300 deductible, or $4,700; defendant Danevicz shall pay to plaintiff $14,000 for non-no-fault losses less the $2,277.47 already paid by his insurer, or $11,722.53.
Affirmed as modified. No costs, a public question being involved.
This opinion reverses in part and supersedes the opinion rendered July 6, 1977. The original opinion dealt with an issue broader than was necessary for the decision of the case at bar.
Section 3109a was added by 1974 PA 72, and at that time the commissioner rescinded the $5,000 deductible authorization and permitted an additional premium for the endorsement.
We need not decide here whether the delegation of this authority violates due process; since the $5,000 deductible was invalid under this construction, we refrain from unnecessarily addressing this constitutional issue. Rosenberg v Fleuti, 374 US 449, 451; 83 S Ct 1804; 10 L Ed 2d 1000 (1963). | [
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H. D. Stair, J.
On July 27, 1973, defendant-appellant Harold Allen, Jr. was sentenced to 10 to 40 years in prison following his conviction of rape. MCLA 750-520; MSA 28.788. A delayed appeal to this Court resulted in affirmance of the conviction. People v Allen, 59 Mich App 536; 229 NW2d 835 (1975). Allen then petitioned for leave to appeal to the Supreme Court. The Court, in lieu of granting leave to appeal, remanded the matter on July 8, 1976, for resentencing. The remanding order gave no directives or reasons other than that Allen be allowed his right of allocution at the resentencing. As a matter of fact, the order specifically stated that the Court was not persuaded to review Allen’s other allegations.
On August 6, 1976, the trial court held a hearing on the resentencing. At that hearing, Allen’s counsel objected to the trial court’s failure to request a new presentence report. Counsel indicated that such a report would indicate Allen’s favorable adjustment to prison life and would show how well his rehabilitation was proceeding. Counsel further protested the court’s having considered a subsequent charge against Allen in its earlier sentencing.
Allen, in exercising his right of allocution, stated:
"All I can say is that I’m innocent and at the time three years ago I was young, not too mature. I knew better, but I was * * * that’s all.”
Allen then made no further remarks.
The trial court reimposed its earlier sentence of 10 to 40 years imprisonment, giving 1,210 days credit for time already served. The present appeal then resulted.
The dispositive question in this appeal is whether a new or updated presentence report should have been prepared for the 1976 hearing.
It is firstly important to note that there is no allegation that the trial court reached any false inferences from the failure to use a second report. In point of fact, the crux of Allen’s claim is not that the first sentence was erroneous. The real contention is that the second sentencing should have taken into account Allen’s progress made since the first sentencing, i.e. that upon any resentencing, a trial court must consider prison behavior in imposing the new sentence. Such a contention is fallacious.
It has been the law since 1889, People v Meservey, 76 Mich 223; 42 NW 1133 (1889), to the present, People v Williams, 65 Mich App 531; 237 NW2d 545 (1975), that the power to commute sentences, for any reason whatsoever, rests not in the judiciary but in the executive. No court in this state, including the Supreme Court, may exercise commutation power. Moore v Parole Board, 379 Mich 624; 154 NW2d 437 (1967).
The present matter represents an oblique effort to evade this rule. Another version of such an indirect attempt was rebuffed in Williams, supra.
The instant case raises no other defect than to assert the failure to have a second presentence report. There is no plea that the first sentence was overly harsh or unrealistic. The only basis for a modified sentence, therefore, would have been Allen’s prison conduct. Rewarding this request would be tantamount to a usurpation of the executive prerogative set forth above; that is, lowering an earlier sentence for good behavior while in prison. That is the parole board’s function and not this Court’s.
Affirmed, no other issues of merit being presented. | [
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Beasley, P. J.
This case involves the application of the dead man’s statute. Plaintiff, the owner of a travel agency, retained Harold E. Mountain, a member of defendant law firm and now deceased, to represent her in selling her business. Apparently, she furnished the purchaser a false financial statement. However, she insists that she told her lawyer the financial statement was inaccurate and that he told her not to worry since it would not make any difference. She also claims that her lawyer told her that payment of the purchase price would be guaranteed by a third entity. Finally, she claims that she told the purchaser the financial statement was inaccurate.
The purchaser defaulted in payments and successfully sued plaintiff on the basis of the false financial statement she had furnished. While this suit was in progress, and after Mountain had died, she started suit against Mountain’s estate and the law firm in which he had been a partner, claiming malpractice.
Allegedly, her husband and two employees of her travel agency would testify on her behalf. In an effort to expedite trial, the parties agreed that plaintiff would make an offer of proof on a separate record after which the trial judge would rule as to application of the amended dead man’s statute.
The separate record contains the testimony of plaintiff and her husband. That testimony revealed that the husband had received substantial financial assistance from plaintiff, that the husband had recommended Mr. Mountain to his wife, and that the husband had been involved in the sales transaction. In addition, the opinion of the trial court indicates that the proceeds of the sale, as they had been received, had been deposited in a joint bank account bearing the names of plaintiff, her mother and her husband. After hearing the testimony on the separate record, the trial judge ruled that the husband "clearly has an interest in the present case which is antagonistic to that of the deceased party’s estate making the husband an opposite party under the Statute”. The judge, therefore, ruled that the husband’s testimony did not qualify as material evidence tending to corroborate plaintiff’s testimony.
Plaintiff’s offer of the testimony of her corporate employees was met by a similar ruling. The trial judge made a finding that, although the corporation was nominally a separate entity, still plaintiff’s total control of the corporation was such that its employees were, in fact, her own agents for purposes of the dead man’s statute. The em ployees’ testimony, thus, would be subject to the same restrictions as the plaintiffs and could not be used to supply the necessary corroboration. In addition, the trial court ruled that the employees’ testimony would also be precluded because it was hearsay.
Since the husband’s testimony and the employees’ testimony were all that plaintiff offered to corroborate her testimony, and since none of the offered testimony qualified as material evidence so tending to corroborate her testimony, the trial court ruled that the plaintiffs testimony was inadmissible because of the dead man’s statute. The parties and the court recognized that this ruling would have the effect of a summary judgment for defendants, and this appeal followed.
The issue now on appeal is whether the trial court correctly ruled that neither the husband’s testimony nor the offered agents’ testimony qualified as material evidence corroborating the plaintiff’s testimony for purposes of the dead man’s statute. For the following reasons, we affirm the trial court’s ruling.
The husband’s testimony will be considered first. In Michigan, a spouse is competent to testify in support of a contractual claim, brought by the other spouse, against an estate. However, as noted by the trial court, a direct interest, antagonistic to the estate, could disqualify such a spouse. Here, the trial court found that plaintiffs husband did have an interest antagonistic to the estate; that finding was based upon the financial and personal involvement of the husband in the transaction. Even under the close examination urged by appel lant, that finding, on this record, is not clearly erroneous.
The offered testimony of the two travel agency employees was the other presented source of evidence to corroborate plaintiff’s testimony. The substance of the offered testimony was that the plaintiff, while not in the presence of defendant, told the employees that the financial statements were not accurate. This was said to tend to corroborate plaintiff’s testimony in that, if plaintiff openly acknowledged the inaccuracy, it was unlikely that she had made contrary representations to her attorney, the defendant. Defendant’s first objection to this testimony was that the employees, although in name agents of the travel agency corporation, were, in fact, plaintiff’s own agents because of her total control of the corporation. The trial court’s ruling adopted defendant’s position and excluded the offered testimony.
The trial court noted that the testimony of plaintiff and her husband did not provide much information concerning the employees and their duties regarding the corporation. However, the trial court did have before it testimony concerning plaintiff’s relationship to the corporation. For example, plaintiff had difficulty testifying as to her exact salary because:
"1969, I worked only until August, but that’s, when I sold the agency, and I just can’t remember how much, because the reason why I used to draw money as I needed it and not as a salary set up. So, therefore, this is why it’s so terribly hard for me to tell you how much I made, and * * * .” (Emphasis added.)
Some evidence was introduced showing that the intermingling of corporate and personal affairs extended to areas besides salary; in particular, travel and entertainment expenses for both plaintiff and her husband were treated in the same casual manner that the salary was.
After reviewing all the evidence, the trial judge ruled, in effect, that, to an outsider, the plaintiff did not maintain the separate identities of the corporation and herself. Therefore, in his words, the trial judge "pierced the corporate veil” and treated the corporation’s agents as plaintiff’s own agents.
We have also reviewed the evidence and tested the trial court’s findings under the closer scrutiny appropriate to such nonjury determinations. As is evident from the parties’ positions, the evidence is not clear cut, and it is subject to different interpretations. In addition, we are especially sensitive to the general purpose of the dead man’s statute to prevent fraud against estates and to the general proposition that courts will not allow the separate corporate identity to be used to further fraud or injustice.
Here, we are not left with a definite and firm conviction that a mistake has been committed. Therefore, we hold that the trial judge was not clearly in error when he found that the agents of the corporation, on these facts, were agents of the plaintiff for purposes of evaluating offered testimony under the dead man’s statute.
Given our holding regarding the testimony of the corporation’s agents, it is unnecessary to decide whether that testimony also was inadmissible hearsay.
Affirmed, with costs to appellees.
MCLA 600.2166; MSA 27A.2166.
Slack v Norton, 111 Mich 213; 69 NW 497 (1896).
Beaupre v Holzbaugh, 327 Mich 101; 41 NW2d 338 (1950), Seeber v Citizens State Bank of Sturgis, 7 Mich App 33; 151 NW2d 222 (1967).
Appellant distinguishes between the husband’s interest, if any, in the original sale and his interest, if any, in the suit against Mr. Mountain’s estate. On the facts of this case, our holding would be the same even if this distinction is accepted.
Tuttle v Department of State Highways, 397 Mich 44; 243 NW2d 244 (1976).
See, 1 Fletcher, Cyclopedia Corporations, § 45, pp 252-263.
In so holding, we do not decide whether the facts would justify disregarding, for all purposes, the separate identities of plaintiff and her corporation. | [
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R. B. Martin, J.
These cases present "simple” "complex” issues. The parties agree on the facts but labelled events or procedures differently to arrive at disparate legal conclusions.
Let us detail the factual situations.
On September 20, 1973 Detroit Edison, Case No. U-4426, applied to the Michigan Public Service Commission for authority to include a fuel adjustment clause (FCAC) in residential rate schedules as permitted by MCLA 460.6a (2); MSA 22.13(6a) (2). The Attorney General intervened.
On February 4, 1974 in U-4426 the MPSC found the company "proposed to amend its electric rate schedules * * * to incorporate therein fuel clauses which will permit the adjustment of such rates to refect changes in fuel costs.” (Emphasis added.)
The commission reviewed the situation and found "Accordingly, it is proper for a fuel adjustment clause, such as proposed by Applicant, to reflect transmission system and distribution losses”.
The commission then ordered:
"A. The Detroit Edison Company is hereby authorized to incorporate fuel adjustment clauses in its electric rate * * * as contained in Exhibit A * * *
"B. The revised rate schedules attached hereto as Exhibit A are hereby approved for electric service rendered on and after February 5, 1974.”
The commission ordered the company to certify monthly the calculation of the FCAC and to state the fuel adjustment separately on its bills.
Exhibit A set out the procedure for determining the change in billing amounts and said "The adjustment shall apply to the second billing month following the calendar month in which the fuel is burned”.
On April 15, 1974, case U-4570, Edison petitioned for a rate increase to produce an additional $93,048,000 revenue.
While this petition was pending, Detroit Edison filed application F-647 on June 18, 1974, for an order permitting it to revise its accounting procedures. Its then-existing procedures caused the cost of fuel to be recorded in its books as fuel expense in the month the fuel was used. With the time lag provided in U-4426, the order of February 4, 1974, and existing procedures, fuel costs over the base of 5.87 mills per KWH in January would be billed to industrial customers in February and to domestic and commercial customers in March.
On July 29, 1974, case F-647, MPSC approved the request for the accounting change r^What happened thereafter was that Edison set forth as an asset the deferred charge it could not collect until the billing one or two months later. The amount of the bills for each month remained exactly the same under the new accounting system as they were under the old accounting method. However, because the expected increase in billing was listed as an asset, the company’s financial picture looked better. Its position in the stock and borrowing markets was enhanced.
Detroit Edison claims the increased fuel costs placed in the deferred charge asset account came to $26,349,806 for the months of December, 1974, and January, 1975.
On February 3, 1975, the U-4570 petition was acted upon. The commission granted a general rate increase to the company. The order also dealt with the FCAC. The commission said,
"Applicant’s approved fuel cost adjustment clause (FCAC) is intended to recover all increases in fuel costs which are beyond Applicant’s control on a timely basis. As is normal in a rate proceeding, the parties assumed that changes in fuel costs would therefore be reflected in timely adjustments under the FCAC as approved in Applicant’s tariffs.
"Billing Lag
"The Commission finds, however, that Applicant’s currently approved FCAC does not in fact achieve the goal of fully recognizing changes in fuel costs in a timely manner. Therefore the Commission finds it necessary to correct the operation of the clause to reduce the existing time lag between the incurring and the reflecting of increased or decreased costs of fuel in the fuel adjustment. This lag has become a significant problem with rapidly escalating cost of fuels and with the potential assessment of proposed new taxes on these fuels.
"In the Commission’s Order in Case No. F-647, dated July 29, 1974, Applicant was granted permission to record increases in the cost of fuel burned for electric generation not recovered through operation of the FCAC in a balance sheet account rather than an income statement account. This was approved since Applicant was experiencing a significant lag in the recovery of higher fuel costs. No increased revenues were received by Applicant as the result of this accounting treatment. This item was removed from an expense (or income statement) account and transferred to a deferred charge (or balance sheet) account. As a result of this accounting treatment, net income per books could no longer be adversely affected during a period of rising fuel costs by the lag contained within the FCAC provision. This was desirable since it allowed Applicant greater financing flexibility due to the improved financial position reflected on its books. Cash flow, however, continued to be adversely affected since Applicant was unable to offset a significant portion of its increased fuel expense outlays with increased revenues.
"The Commission finds that a FCAC which recognizes changes in the per unit cost of fuel burned for electric generation in a timely manner is appropriate and in the public interest. To assure fair treatment to both Applicant and the consumer, the FCAC should operate in a manner which does not erode the quality of Applicant’s earnings due to increasing fuel costs and at the same time charges the consumer no more than the actual per unit cost of fuel burned.
"The Commission finds that the existing FCAC should be modified with respect to the procedure used in determining the appropriate billing month adjustment factor so as to effectively eliminate the lag. This should be accomplished using actual figures as the basis for calculation of the adjustment factor. * * * As modified, the clause will effectively eliminate any annual under-collection or over-collection of incurred costs of fuel burned by Applicant while continuing to calculate the adjustment factor on the basis of actual fuel cost data.
"Since this modification of the FCAC effectively eliminates the lag, it also removes the need of Applicant’s accounting for deferred fuel costs as directed by the Commission’s Order in Case No. F-647. As such, Applicant should file an application with the Commission for a determination in a separate proceeding as to disposition of the accumulated fuel cost deferral up to the effective date of this order.”
We do note that the commission, on the very next page in commenting on other revisions, states,
"This Commission recognizes that a fuel cost adjustment clause is intended to reasonably reflect increases or decreases in fuel costs on a timely basis.”
In effect the commission said "Utility and customers, there’s still a real lag between expenses for fuel that is constantly rising in price and the billings. We will alter our rules. The bills sent out for a particular month should cover the actual increase of expenses because of increased fuel costs for that particular month. This must be determined, of course, on past, experience.”
Quick as a wink, on February 6, 1975, case U-4758, Detroit Edison applied for their right to collect the $26,349,806 in deferred charges shown by its books as increased costs for December, 1974, and January, 1975, waiting to be billed in following months and now not allowed.
The administrative law judge proposed Edison be allowed a surcharge for 12 months to secure this sum.
On December 22, 1975, the commission rejected this proposal and ordered Edison to write off the $26,349,806 deferred charge asset against income over ten years.
On January 19, 1976, Edison filed in circuit court to review this order. On January 21, 1976, the Attorney General, likewise, filed in circuit court appealing the December 22, 1975, order. He also intervened in the Edison appeal and Edison intervened in the Attorney General’s suit.
The circuit judge issued an opinion on August 10, 1976, and a judgment was entered on September 27, 1976. The judgment vacated the Public Service Commission order and remanded the matter to the commission to enter an order as proposed by the administrative law judge. The Public Service Commission followed this requirement on October 1, 1976.
The parties appeal in both cases. Ford Motor Company was granted the right to intervene in the appeal. Ford Motor claims that since the time the surcharge became effective, they have built and are operating electric steel furnaces. They allege the surcharge will cost them an additional $160,-000 over the usual rates and they received not one kilowatt-hour or fraction thereof of electricity in return for this surcharge.
From these given facts, Detroit Edison believes it should be allowed to surcharge against present customers the $26,349,806 of fuel costs less certain amounts which Edison recognizes as being improper to include. The present amount requested is thus $23,507,000. The PSC, the Attorney General and Ford believe such surcharges should not be allowed.
Let’s look at some of the law involved:
The commission was created with power to regulate the rates of electric utilities; MCLA 460.6; MSA 22.13(6). In determining rates the commission must consider many, many factors including the cost of fuel for the production of electric power. The rate determination may take months and months. To offset this delay the Legislature permits fuel costs adjustment charges (FCAC). They permitted it first for commercial users. 1955 PA 172 added to the rate making procedure,
"Nothing contained in this section shall be construed to prohibit the commission from permitting the incorporation of fuel adjustment clauses in rate schedules for service other than domestic service pursuant to notice and hearing thereon.”
In 1972 this clause was omitted and a new paragraph stated,
"This section or any other law does not prohibit the incorporation of fuel or purchase gas adjustment clauses in rate schedules.” MCLA 460.6a(2); MSA 22.13(6a)(2).
Michigan law gives the commission the right to set future rates so they are just, reasonable and nonconfiscatory. The PSC cannot, however, set a future rate so as to recover for a loss suffered in the past. Michigan Bell Telephone Co v Public Service Commission, 315 Mich 533; 24 NW2d 200 (1946), General Telephone Co of Michigan v Public Service Commission, 341 Mich 620; 67 NW2d 882 (1954), and Michigan Consolidated Gas Co v Public Service Commission, 389 Mich 624; 209 NW2d 210 (1973).
Rate making is a legislative and not a judicial function. Michigan Central R Co v Wayne Circuit Judge, 156 Mich 459; 120 NW 1073 (1909), Detroit v Michigan Public Utilities Commission, 288 Mich 267; 286 NW 368 (1939), and Louisville & Nashville R Co v Garrett, 231 US 298; 34 S Ct 48; 58 L Ed 229 (1913).
This raises the fundamental question as to what our fuel cost adjustment charge actually is. Is it an appendage to and part of the rate making power? If so, can the commission, by its use, set rates to cover past expenses and losses? We would think not.
Past expenses and costs are factors to be considered in determining what the new rate should be so it is fair and reasonable. Past expenses and costs are not recoverable under a future rate. If a rate structure is wrong and causes a utility to lose $1,000,000, the utility cannot recover that in its new rate. The commission must certainly raise the rates so the loss will not continue. If the rate structure is wrong so the utility gains $1,000,000 more profit than is reasonable and just, the commission cannot order a refund. It can certainly lower the rate so there will be no excess profit in the succeeding years.
Is the fuel cost adjustment charge a special power given to the commission to specifically raise rates enough to cover rapidly escalating fuel costs? We think not. We note two things: (1) The statutory language is in a section dealing with the commission’s procedures. (2) The language is not stated as an affirmative grant of power.
MCLA 460.6a; MSA 22.13(6a) deals generally with the procedure the commission must follow when getting an application for a rate increase. It grants the PSC the right to set its rules and procedures. It then says:
"This section or any other law does not prohibit the incorporation of fuel or purchase gas adjustment clauses in rate schedules.”
This is not a statute affirmatively giving the commission the power to set a rate to repay for added fuel costs. It does not try to affirmatively overrule our Supreme Court’s position that the commission cannot grant a rate increase to pay for past losses or expenses.
The Commission is simply told the law does not prohibit it from incorporating fuel or gas adjustment clauses in rate schedules. This means the PSC can insert in rate schedules a formula that will raise and lower rates, depending on whether the utility’s fuel costs rise or fall. The adjustment is made automatically per formula without the necessity of applications, hearings, staff investigations and reports. It is a method not to recoup former costs but to set rates which more accurately reflect present costs so as to more certainly give a just and reasonable income.
With this in mind, we look at just exactly what happened in our case. Petition F-647 was filed June 8, 1974. An order in F-647 was made on July 29, 1974. Therein Edison was given permission to change its bookkeeping and accounting procedures. There had been and remained a time lag of one to two months from the time fuel was purchased to the time the fuel was paid for by billings for electricity. However, the income the company expected to receive one or two months later was now listed as an asset on the company’s books even though nothing had been changed except the bookkeeping system. The December-used fuel still resulted in setting a new rate for the electric billing in January or February. The company was allowed to set this expected receipt up as an asset. This was valuable to them in the sale of stock and raising money through bond issues or other sources.
In the meantime from April 15, 1974 (before F-647 was filed) to February 3, 1975 (after F-647 was decided) the commission was holding hearings, investigating and deciding U-4570, an application for a rate increase. F-647 very carefully avoided the question of a rate increase. It went to accounting methods alone. In fact in F-647 the company specifically §£id,
"With respect to any electric rate order to be issued in Case No. U-4570 or any case subsequently filed or determined, the accounting entries, interpretation and treatment herein authorized shall not serve as a basis in whole or in part, directly or indirectly, for a rate base or cost of service greater than would be determined had such accounting entries, treatment and interpretation not been made or approved, all without prejudice to the right of The Detroit Edison Company to request the benefit in rate proceedings of future orders of the Commission which establish accounting entries, interpretations or treatments other than those established in this proceeding.
"The Detroit Edison Company understands and agrees that the Staff and the intervenors in this proceeding, and any other intervenors in Case No. U-4570 or in future electric rate cases of the Company, are totally free to show or contend that the reported net income, if any, arising from the accounting entries, interpretation or treatment approved by the Commission in this case should be considered and included as a reduction of the Company’s income and revenue requirements in Case No. U-4570 and in future electric rate cases, all without prejudice to the right of The Detroit Edison Company to contend to the contrary.”
The commission then found,
"C. The accounting treatment authorized herein, while not improving the Applicant’s cash flow, wifi provide a better matching of changes in fuel costs with fuel adjustment revenues, and thus a better definition of accounting net income. To the extent that such improvement in reported net income will assist the Applicant in sales of its debt and equity securities, the change in accounting treatment of fuel expense is in the interest and to the beneñt of the Company’s customers and investors.
"D. The accounting proposed by the Applicant will have no effect on the manner in which fuel clause billings to customers are calculated.”
The commission then ordered that the company would be authorized,
"(a) To the extent that costs of fuel burned in any month (i) are subject to billing in a later month or (ii) will produce a credit to customers, each pursuant to fuel cost, adjustment clauses, such costs or credits shall be deferred until such time as they are reflected in billing adjustments made pursuant to such fuel cost adjustment clauses.
"(b) The deferred fuel expense or fuel credit shall be charged or credited to operations in the amount of revenue billed or credit granted under the applicable approved fuel clauses for the particular month.
"2. The revised accounting procedures, as directed above, are to be effective January 1, 1974.
"3. This order shall not cause an increase in rate base or cost of service, for ratemaking purposes as set forth in the stipulation and amendment to the application recited in Finding B above. ” (Emphasis added.)
The February 3, 1975, decision in the rate case U-4570 granted a rate increase. It also considered the position of FCAC and changed the billing procedures so the rates were more nearly and quickly syncronized with the rise or fall of fuel costs. It removed the time lag in the old accounting procedures and permitted Edison to have a rate increase now based on a rise in fuel prices now. (This, of course, is not literally true to the exact dollar but is as close as mathematicians, accountants, bookkeepers and bureaucrats can attain.)
This left Edison with a deferred charge asset of some $26,000,000 on its books. It also gave it more income right now without a one or two month lag. If the fuel costs were going up at the rate of $13,000,000 a month, Edison wasn’t going to have to wait one or two months to have a rate based on the month’s $13,000,000 increase. It could add it to its base cost and to the customer’s bill and collect it now. Therefore, under U-4570 procedures with continually rising prices, Edison was collecting more in a year’s time than it would have if the procedures had not been changed. This increment to its revenue should have given it a just and reasonable rate according to the commission.
The. Court feels the commission had a right to alter the rate and accounting structure in U-4570. This left the company with a paper asset of $26,000,000 and something had to be done with it. The commission decided to permit it to be written off over ten years.
Were the commission’s actions proper? What is the extent of the power of review by the trial court?
The statute, MCLA 462.26; MSA 22.45, provides that any dissatisfied party in interest may sue the commission in the Ingham Circuit Court to request the commission’s order be vacated,
" * * * on the ground that the rate or rates * * * are unlawful or unreasonable, or that any such regulation, practice or service fixed in such order is unreasonable; * * * All suits brought under this section * * * shall proceed, be tried and determined as other chancery suits. Any party * * * may introduce original evidence in addition to the transcript of evidence of fered to said commission, and the said circuit court in chancery is hereby given jurisdiction of such suits and empowered to affirm, vacate or set aside the order of the commission in whole or in part, and to make such other order or decree as the court shall decide to be in accordance with the facts and the law;
"(e) In all actions under this section the burden of proof shall be upon the complainant to show by clear and satisfactory evidence that the order of the commission complained of is unlawful or unreasonable, as the case may be.”
This statute, of course, is controlled by Const 1963, art 6, § 28,
"All final decisions, findings, rulings and orders of any administrative officer or agency * * * shall be subject to direct review by the courts as provided by law. This review shall include, as a minimum, the determination whether such final decisions, findings, rulings and orders are authorized by law; and, in cases in which a hearing is required, whether the same are supported by competent, material and substantial evidence on the whole record.”
The dissent in Michigan Consolidated Gas Co v PSC, supra, felt that insofar as MCLA 462.26 purported to allow a de novo review it was unconstitutional. The majority did not meet this problem head on. The majority felt the trial court’s issuing of an injunction was based on evidence the commission failed to consider and the injunction was to be effective only until the commission actually set a rate.
In our case the facts are not really disputed. The review then must go, as a minimum, to determine whether the order was authorized by law. It was authorized if it was not confiscatory or unreasona ble. We should note again that F-647 was an application to amend accounting procedures. It was filed and heard during the time the rate change application U-4570 was being heard. The commission knew about and considered the accounting procedure change when it was considering the rate change request. In F-647 the company amended its application,
"With respect to any electric rate order to be issued in Case No. U-4570 or any case subsequently filed or determined, the accounting entries, interpretation and treatment herein authorized shall not serve as a basis in whole or in part, directly or indirectly, for a rate base or cost of service greater than would be determined had such accounting entries, treatment and interpretation not been made or approved, all without prejudice to the right of The Detroit Edison Company to request the benefit and rate proceedings of future orders of the Commission which establish accounting entries, interpretations or treatments other than those established in this proceeding.
"The Detroit Edison Company understands and agrees that the Staff and the intervenors in this proceeding, and any other intervenors in Case No. U-4570 or in future electric rate cases of the Company, are totally free to show or contend that the reported net income, if any, arising from the accounting entries, interpretation or treatment approved by the Commission and this case should be considered and included as a reduction of the Company’s income and revenue requirements in Case No. U-4570 and in future electric rate cases, all without prejudice to the right of The Detroit Edison Company to contend to the contrary.”
If the accounting procedures had not been changed by F-647, Edison would not have accumulated a deferred charge asset of $26,349,000. This was a paper asset created at Edison’s request by an order relative to an accounting procedure change and not created by an order relative to a rate change petition. We will not consider the wisdom of the order.
Edison claims this created a vested right, a property interest in the accounting figure asset. It did not. The commission, in F-647, was not setting a rate, was not determining what the basis for a rate should be nor was it altering any FCAC clause. It was acting on Edison’s request for a bookkeeping change to take place while the commission was considering what kind of rate change, if any, should be made to permit a reasonable profit for Edison. If the commission was guaranteeing a recoverable asset as part of a new rate base, it would not háve required the amendment to Edison’s application quoted above. If we allow it as a recoverable asset, we permit retroactive rate making to recover past costs. This we cannot do.
Edison claims the commission would deprive it of property without due process of law since the rates must be sufficient to yield a reasonable return on the value of property being used. But when the F-647 order was entered, the commission was at that time considering the total rate picture and soon afterwards entered a new rate order with the knowledge of what F-647 had done to Edison’s financial picture. Edison has not claimed the order in U-4570 did not yield a fair return. Yet that order took into consideration the accounting changes in F-647. U-4570’s order gave Edison an immediate increase in rates on the basis of all the elements determining rates, including FCAC.
We believe the commission’s order was not unlawful, unreasonable or confiscatory. At Edison’s request the commission permitted the company to improve its position in the stock, bond and borrowing market. It did not guarantee the collection of rates to cover the created bookkeeping entry. It was, at the very time, considering the whole rate picture and all the multitudinous factors that would create the rate structure. When the petition to alter accounting methods specifically said it was not to be used to create a rate base greater than could be determined had the change not been made, Edison should not now come in and claim confiscation of a paper asset.
We reverse the circuit court ruling. We affirm the December 22, 1975, order of the commission. We remand to the trial court to be further remanded to the commission for such action as is necessary to conform to this opinion. | [
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Per Curiam.
This case involves a dispute between holders of security agreements covering a bulldozer. The First National Bank of South Central Michigan (hereafter the bank) seized the bulldozer and sold it after a default in the loan given by it. Upon learning of the sale, Associates Financial Services Company, Inc. (hereafter Associates) sued in the district court for conversion, claiming that it had a valid prior security interest and was therefore entitled to the proceeds of the sale.
The bulldozer in question was sold to the Henion Development Corporation, a Michigan corporation, by D-P Equipment Co., in Michigan and delivered to a job site in Indiana. D-P Equipment received a security agreement as part of the sale which it assigned to Associates. Associates then filed a financing statement with the Indiana Secretary of State. At the time of the sale, Henion Development Corporation was involved in the development of two projects in Indiana and doing only "odd jobs” with a backhoe in Michigan.
The bank bases its claim on a loan made to Duane Henion, individually, at some later time when the bulldozer had returned to Michigan. In exchange for the loan, Duane Henion executed a security agreement which purported to give an interest in the bulldozer to the bank. The bank attempted to perfect a security interest by filing a financing statement with the Secretary of State. Associates also filed with the Michigan Secretary of State subsequent to the bank’s filing.
The parties agree that the bulldozer is the type of goods covered by UCC 9-103(2) and that this section is identical in both Michigan, MCLA 440.9103; MSA 19.9103, and Indiana, Burn’s Indiana Statutes Annotated, § 19-9-103; IC 26-1-9-103, at least insofar as it applies to this case. The parties also agree that the security interest can be perfected by filing a financing statement, UCC 9-303, and that the first to file in the correct state has priority, UCC 9-312(5)(a). •
The chief inquiry below was therefore narrowed to determining where Henion Development Corporation had its "chief place of business”. Under UCC 9-103(2), this factor determines the applicable state law and therefore, where filing is required (Michigan or Indiana).
The district court found that Michigan was the principal place of business and on review, the circuit court determined that Indiana was the correct state. We agree with the circuit court. At the time the sale was made, the purchaser gave an Indiana address and the bulldozer was delivered in Indiana. The corporation was authorized to do business in Indiana, and from the testimony at trial, it appears that its primary concern was development of Indiana property. Since only Associates had a perfected security interest in Indiana, the circuit court properly ordered the district court to enter judgment in favor of Associates.
It should be noted that there is no prohibition in the code against filing in more than one state in cases of doubt as to the chief place of business. Associates could have avoided this suit by filing originally in Michigan and Indiana and the bank, knowing of Henion Development Corporation’s interest in Indiana, could have protected itself by checking with the Indiana Secretary of State before granting this loan.
Affirmed. Costs to appellee.
Although the circuit court judge does not explicitly state what standard of review he was applying in reviewing the findings of the district court judge, the proper standard should have been the "clearly erroneous” rule. The case was appealed under GCR 1963, 701.1 and 705.1 as amended in 1969 (see 381 Mich xliii-xlv). The proceeding is designated as an appeal and it is on the record. No testimony or evidence is received by the circuit court. The same functional administrative considerations which necessitate the application of the clearly erroneous rule to appeals to the Court of Appeals also apply to appeals to the circuit court from district court decisions. Special regard should be given to the opportunity of the trial judge to observe the credibility and demeanor of the witnesses. See, GCR 1963, 517.1, DCR 517.1. The rules were amended in 1977 (see, 400 Mich lxix) and GCR 1963, 701 now controls the scope of review. These amendments did not diminish or change the importance of the considerations which underlie the clearly erroneous rule. Also, the repeal of old GCR 1963, 705.18 is consistent with applying the clearly erroneous rule as the proper scope of review. Even though the circuit court did not use the words "clearly erroneous”, his opinion indicates that he thought the facts clearly directed him to the conclusion that Indiana was the principal place of business.
The bank did not claim (and does not claim on appeal) that the principal place of business was once Indiana and later became Michigan and, therefore, Associates was required to refile in Michigan to protect its security interest. See, White & Summers, Handbook of the Law Under the Uniform Commercial Code (West Publishing Co, 1972), § 23-19, pp 852-853. The bank has only contended that Michigan was the chief place of business. | [
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Per Curiam.
This appeal involves the liability of the insurer of residential property to land contract vendors under a fire insurance policy purchased by a vendee which contains a "contract of sale” clause insuring the vendors’ interest.
Plaintiffs sold a house to Michael Lea under a land contract. Lea obtained fire insurance with defendant, Republic Insurance Company. This policy contained a "contract of sale” clause which provided in part:
"A contract for sale of the property described in this policy having been made between the insured and Maritina Root, 26205 Powers Rd., Farmington Hills, MI 48024: T. H., the interest of said last named party is also insured hereunder, but without any increase in the amount of insurance, and subject to all other terms, provisions and conditions of this policy, including any Mortgage Clause forming a part of this policy.”
The "standard mortgage clause” in the policy provides in part:
"K. STANDARD MORTGAGE CLAUSE: Applies to Building Items only; (but this entire clause is void unless name of mortgagee or trustee is inserted on the first page of this policy in space provided therefor):
"Loss or damage, if any, under this policy, shall be payable to the mortgagee [or trustee], named on the first page of this policy, as interest may appear, and this insurance as to the interest of the mortgagee [or trustee] only therein, shall not be invalidated by any act or neglect of the mortgagor or owner of the within described property, nor by any foreclosure or other proceedings or notice of sale relating to the property, nor by any change in the title or ownership of the property, nor by the occupation of the premises for purposes more hazardous than are permitted by this policy; provided, that in case the mortgagor or owner shall neglect to pay any premium due under this policy, the mortgagee [or trustee] shall, on demand, pay the same.”
No mortgagee or trustee appears in the space provided on the first page of the policy. The policy also defines the "mortgagee interests and obligations”:
"If loss hereunder is made payable, in whole or in part, to a designated mortgagee not named herein as the insured, such interest in this policy may be can-celled by giving to such mortgagee a ten days’ written notice of cancellation. If the insured fails to render proof of loss such mortgagee, upon notice, shall render proof of loss in the form herein specified within sixty (60) days thereafter and shall be subject to the provisions hereof relating to appraisal and time of payment and of bringing suit. If this Company shall claim that no liability existed as to the mortgagor or owner, it shall, to the extent of payment of loss to the mortgagee, be subrogated to all the mortgagee’s rights of recovery, but without impairing mortgagee’s right to sue; or it may pay off the mortgage debt and require an assignment thereof and of the mortgage. Other provisions relating to the interests and obligations of such mortgagee may be added hereto by agreement in writing.”
The property was destroyed by fire on May 2, 1975. Michael Lea filed a claim against Republic which eventually resulted in an award by an umpire-appraiser of $22,500, judgment for which was entered on March 12, 1976. On April 1, 1976, Republic’s counsel wrote to the Roots, advising them that Lea’s judgment would be satisfied within five days, unless the Roots objected. The Roots had not filed a claim prior to receipt of this letter. On April 15, 1976, a check for $22,500 was delivered to Lea’s counsel. Lea had continued to make payments on the land contract until April 2, 1976, reducing the balance due to $16,498.15. Lea is purportedly out of the jurisdiction and is not a party to this suit.
The Roots began the instant lawsuit on April 30, 1976, seeking recovery under the Republic policy in accordance with the contract of sale clause. The amount sought, $17,292.19 plus interest, represented the balance due on the land contract at the date of the fire.
Plaintiffs summary judgment motion was granted by the lower court. Defendant appeals of right, raising four issues.
I.
Defendant first argues that plaintiffs’ suit was barred, relying on a provision of the policy which requires "the insured” to file a proof of loss within 60 days of the loss and another provision barring suit "unless all the requirements of this policy shall have been complied with”. Plaintiffs respond that the contract of sale clause is expressly subject to "any mortgage clause forming a part” of the policy, and that under the "mortgagee interests and obligations” provision quoted above, the mortgagee is required to give proof of loss only upon notice by the insurer. No such notice was given in the instant case.
We hold that plaintiffs’ interpretation of the contract of sale provision is the correct one. The plain language of the contract of sale clause indicates that plaintiffs-vendors are treated as mortgagees by making them subject to any mortgage clause in the policy. Cf. Mundhenk v Liverpool & London & Globe Insurance Co, Ltd, 311 Mich 571; 19 NW2d 103 (1945). See, also, West v Farm Bureau Mutual Insurance Co of Michigan, 63 Mich App 279; 234 NW2d 485 (1975). As such, proof of loss is required only upon notice. As no notice was given by the insurer, plaintiffs’ suit is not barred by a failure to furnish proof of loss.
II.
Defendant also asserts that plaintiffs’ action was barred by laches.
Laches is "an affirmative defense which depends not on mere lapse of time but principally on the requisite of intervening circumstances which would render inequitable any grant of relief to the dilatory plaintiff”. Lewis v Poel, 376 Mich 167, 169; 136 NW2d 7 (1965). In the case at bar, defendant knew of plaintiffs’ interest by the terms of the contract of sale which was part of the policy. Plaintiffs were given no indication that defendant required affirmative action on their part until they received the April 1, 1976, letter. In light of facts asserted by plaintiffs that immediately upon receipt of the letter they sought a stay of judgment and also because suit was filed on April 30, 1976, we cannot say that the trial court erred in finding plaintiffs’ action not barred by laches on defendant’s summary judgment motion.
III.
Defendant’s next argument is that the trial court erred in awarding damages to plaintiffs based on the balance due on the land contract at the date of the fire and not taking into account subsequent payments by Lea on the land contract.
Generally, the rights of the parties to a fire insurance policy are fixed as of the date of the fire. Booker T Theatre Co v Great American Insurance Co, 369 Mich 583; 120 NW2d 776 (1963), Sietsema v Freemont Mutual Insurance Co, 38 Mich App 582; 196 NW2d 841 (1972). Plaintiffs’ possible liability to Lea for excess payment under the land contract does not affect defendant’s liability to plaintiffs under the insurance contract.
IV.
Finally, defendant argues that under the "mortgagee interests and obligations” provision quoted above, it may require an assignment of the land contract on which it has been ordered to pay the balance due. However, the provision relied upon applies only if the insurer claims "no liability existed” as to the mortgagor or owner. Here, the insurer admitted liability and proceeded through appraisal to fix the amount of liability. On the facts of this case, the insurer is not entitled to subrogation or an assignment.
Affirmed. Costs to appellees.
See MCLA 500.2832; MSA 24.12832.
The motion was based on GCR 117.2(2) and (3).
This is true even though the "standard mortgage clause” does not, by its terms, apply, since no mortgagee is named on page one of the policy. | [
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D. E. Holbrook, J.
Plaintiffs appeal a March 14, 1977, order issued by the Washtenaw County Circuit Court, which denied them the right to recover prejudgment interest from Transamerica Insurance Group.
On March 30, 1973, a vehicle, containing six of the plaintiffs and driven by plaintiff Edna Den-ham, was involved in an accident with defendant Thomas Bedford. Plaintiffs were traveling in a southeasterly direction on Washtenaw Avenue when a vehicle driven by Bedford veered across the centerline and struck the vehicle in which plaintiffs were riding. Bedford had been drinking at a bar operated by R. C. S., Incorporated, known as "Bimbo’s On The Hill” prior to the accident.
A negligence action was instituted against Bed-ford and a dramshop complaint was brought against the bar. After a two-week trial, a jury verdict of no cause of action was entered in favor of the defendant bar and a verdict for plaintiffs was entered against Bedford for $108,025, plus $15,403.18 in prejudgment interest.
Bedford’s insurance policy provided $40,000 maximum coverage for multiple claims arising out of one accident. The policy was issued by a subsidiary of Transamerica Insurance Group.
After the verdict, Transamerica paid plaintiffs $40,000 which represented the policy limits. Transamerica was added as a defendant and filed a motion requesting that the court determine whether it was required to pay prejudgment interest on its portion of the judgment $40,000. The prejudgment interest on the $40,000 portion of the judgment was $5,695.47. Transamerica claimed that it was not responsible for the $5,695.47 because payment of the prejudgment interest would exceed the policy limits of $40,000 already paid by Transamerica. The trial court agreed. Plaintiffs appeal as of right seeking a reversal of the trial court and a holding that Transamerica is responsible for prejudgment interest on the portion of the judgment which represented the policy limits.
The issue raised on appeal is whether the defendant’s insurer, Transamerica Insurance Group, is responsible for prejudgment interest on the portion of the judgment which represents the policy limits of the insurer.
In order to have an understanding of this issue a review of the applicable sections of defendant’s insurance policy is necessary. The policy provides in part as follows:
"I. Coverage A. Bodily Injury Liability
"To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of bodily or personal injury, sickness or disease, including death at any time resulting therefrom, and including damages for care and loss of services, sustained by any person or persons, and arising out of the ownership, maintenance, or use of the insured automobile, including the loading and unloading thereof.
"II. Defense, Settlement, Supplementary Pa yments
"1. As respects such insurance as is afforded by the other terms of this Policy under Coverages A and B, the Company shall:
"A. Defend in his name and behalf any suit against the Insured arising from any alleged claim for bodily injury or property damage, whether such suit is groundless, false, fraudulent, or otherwise, but the Company shall have the right to conduct investigations as to any such claim, negotiate for adjustment or settlement thereof, and to enter upon and conduct the defense of the Insured against the same as it may deem expedient without waiving any of the provisions of this Policy or subjecting the Company to any liability beyond the limits provided in this Policy, and
"B. (a) Pay all costs lawfully taxed against the Insured in any such suit and all expenses pertaining thereto incurred by the Company; and
"(b) Pay all interest which shall accrue after the entry of judgment and until the Company has paid, tendered, or deposited in Court such portion of any judgment not exceeding the limit of the liability of the Company; and
"(c) Reimburse the Insured for any expense, including loss of wages or salary not to exceed $25. per day, but not for loss of other income, incurred at the request of the Company.” (Emphasis supplied.)
First, plaintiffs maintain that prejudgment interest as provided by MCLA 600.6013; MSA 27A.6013 may be recovered as a cost or expense of the lawsuit. This argument is based on defendant’s insurance contract which provides as follows: "B. (a) Pay all costs lawfully taxed against the Insured in any such suit and all expenses pertaining thereto incurred by the Company”. Thus, plaintiffs reason that Transamerica is responsible for prejudgment interest under the provision in the in surance policy which provides for costs and expenses. We do not agree. We are in accord with that portion of Dittus v Geyman, 68 Mich App 433; 242 NW2d 800 (1976), lv den, 397 Mich 837 (1976), wherein the Court disallowed prejudgment interest based on it being a cost or expense of the lawsuit.
Next, plaintiffs assert that even though an insurance company can limit its risks, public policy dictates that the prejudgment interest statute should be incorporated into this insurance policy. In their brief, defendants quote a portion of the policy which provides:
"(b) Pay all interest which shall accrue after the entry of judgment and. until the Company has paid, tendered, or deposited in Court such portion of any judgment not exceeding the limit of the liability of the Company.” (Emphasis supplied.)
Defendants maintain that this provision subjects the insurance company to pay only "post-judgment” interest, thus it is not liable for prejudgment interest. We do not agree.
In Cosby v Pool, 36 Mich App 571, 578-579; 194 NW2d 142 (1971), lv den 386 Mich 782, 783 (1972), this Court was construing an insurance contract which was made prior to the prejudgment insurance statute and complied with the statute then in effect which allowed only post-judgment interest. The Court in Cosby stated at 575, 578:
"On appeal, the sole issue to be determined is whether the enactment of an amendment to MCLA 600.6013 * * * [MSA 27A.6013], which provides interest to be calculated from 'the date of filing the complaint’ becomes a part of an insurance contract which was signed prior to the amendment. If so, it effectively amends the contract clause which provides that the insurer will pay 'interest accruing on verdict or after judgment up to the date of payment’.
"Therefore, the amendment has the effect of becoming a part of the contract and replaces the clause as written. Therefore, the interest must be calculated from the date of fíling the complaint. This, however, is applicable only to that interest which accrues upon the defendant insurance company’s portion of the verdict.” (Emphasis supplied.)
In accord with Cosby, this Court holds that MCLA 600.6013; MSA 27A.6013 has the effect of becoming a part of the instant contract, thus replacing the clause as' written and mandating that the interest be calculated from the date of filing the complaint.
As to whether or not prejudgment interest would be allowed in excess of the policy limits, the Court in Cosby stated as follows at 578-579:
"It follows that the insurer should be liable only for the interest that accrues on the amount of risk it has assumed. Otherwise, it would be paying interest on a risk it did not assume and for which it did not charge premiums. In this case, the judgment was for $200,000, while the insurer’s liability was limited to $100,000.
"Therefore, the case is remanded and the plaintiffs are granted the total interest of $34,333. However, the defendant insurer is liable only for the interest on its share of the judgment which is in the amount of $17,167.”
The Court upheld the granting of prejudgment interest in excess of the $100,000 policy limit.
Also, in Stone v Fawcett, 63 Mich App 487, 489; 234 NW2d 577 (1975), an insurance policy provision similar to the provision in the instant case was construed by our Court as follows at pp 489-490:
"Recently, the Supreme Court modified the decision of the Court of Appeals in Cates v Moyses, 394 Mich 762 [228 NW2d 380] (1975), altering the basis to be used for computing prejudgment interest from the entire judgment to the policy limit amount but affirming, the remainder of the decision, including the determination of when interest begins to accrue. Hence, this Court is bound to hold the garnishee defendant liable for interest from the date of the filing of the complaint.
"Unlike Cates v Moyses, supra, garnishee defendant conceded, in its brief, liability for interest on the entire $30,500 award. However, since the Supreme Court held that DAIIE’s policy provision does not create liability on the full award prior to judgment, it would be unjust not to apply such a standard in the same situation. Therefore, DAIIE is obligated for interest on the amount of its policy limit ($10,000) beginning March 22, 1972, the date of the filing of the complaint, until October 15, 1973, the date of judgment.”
We feel it is important to deal at some length with the reasons why the statute and public policy require prejudgment interest and why the allowance of prejudgment interest in excess of the policy limits is proper.
We have ruled that MCLA 600.6013; MSA 27A.6013 required the payment of prejudgment interest. We have done so on the authority of Cosby, supra. As in Cosby, the defendant in the instant case asserts that a literal reading of the insurance contract limits payment of interest from the date of judgment. The Court in Cosby did not adopt this reasoning and neither do we. In fact, when the insurance contract in Cosby was signed, the law only required post-judgment interest. The Court amended the insurance contract to conform to the new statute.
In the instant case, the prejudgment interest statute was in effect on the date of the contract, and we are constrained to rule in accord with Cosby that the contract be amended to conform with the statute.
The statute, MCLA 600.6013; MSA 27A.6013, reads as follows:
"Interest shall be allowed on any money judgment recovered in a civil action, such interest to be calculated from the date of fling the complaint at the rate of 6% per year unless the judgment is rendered on a written instrument having a higher rate of interest in which case interest shall be computed at the rate specified in the instrument if such rate was legal at the time the instrument was executed. In no case shall the rate exceed 7% per year after the date judgment is entered. In the discretion of the judge, if a bona fide written offer of settlement in a civil action based on tort is made by the party against whom the judgment is subsequently rendered and the offer of settlement is substantially identical or substantially more favorable to the prevailing party than the judgment, then no interest shall be allowed beyond the date the written offer of settlement is made.” (Emphasis supplied.)
The purpose of this statute is to compensate the prevailing party for the delay in the payment of money damages. Waldrop v Rodery, 34 Mich App 1, 4; 190 NW2d 691 (1971). We agree with plaintiffs that it is illogical and unfair to require that the prejudgment interest come from the insured who never had the use of the money representing plaintiffs’ damages. In the instant case, Transamerica Insurance Group had full use of the $40,000 during the lawsuit and should be responsible for the prejudgment interest. The statute and public policy dictates this result, otherwise, Transamerica would receive a windfall of $5,695.47 which represents prejudgment interest on the $40,000.
The insurance company is not injured by our holding. The complaint for damages was filed in April of 1974 and had it been paid immediately, the insurance company would have paid only $40,-000. However, defendant did not pay until after entry of judgment on September 9, 1976, and then paid only the damages in the amount of $40,000 without interest. It must be noted, however, that the insurance company had the use of the $40,000 for a two-year five-month period. This money, controlled by the insurance company, is not left standing idle, but is invested. If the insurance company invests the money at 6 percent, then it loses nothing when it pays prejudgment interest at 6 percent. This is because the insurance company is only paying that which it received by holding the money. According to Best’s, Aggregates and Averages, Property-Casualty (A. M. Best Company, 1976), pp 52-53, the average rate of return in 1975 on investment assets for a casualty insurer was II. 1 percent. Thus, by holding the $40,000 for that one-year period, the insurance company would realize interest earnings of 5.1 percent in addition to the statutory prejudgment interest of 6 percent. This high rate of return on investment assets was also found in 1976 when the average rate of return was 9.6 percent.
For us to hold otherwise, an insurer would have no motivation to settle a meritorious claim. By refusing to settle, the insurer not only has a chance to wear a plaintiff down, thereby possibly settling a meritorious claim for less than its actual value, but it also knows that even if plaintiff is successful in litigation, it [the insurance company] will still be able to retain all the income made from the use of a plaintiff’s money. Such a policy is contrary to the sound administration of the judicial system and repugnant to the public policy behind the insurance laws of this state.
We are cognizant of the fact that plaintiffs do not file a complaint immediately after an accident. There are talks of settlement, investigations as to the facts, and other time-consuming procedures, all of which usually take place before a lawsuit is commenced. The Legislature, in its wisdom, has declared the public policy of this state to be that prejudgment interest shall be paid from the date of the filing of a complaint. The Legislature could have provided for prejudgment interest from the date of the injury. This they did not do. Thus, we are constrained to enforce the Legislature’s intent in this opinion and grant prejudgment interest.
Defendant insurance company states in its brief that it offered to settle the claim for. the total amount of the policy limits. There is no documentation, however, as to if and when this took place and what the terms of the offer were, nor was the money placed in the court’s hands. The offer may have been rejected by plaintiffs because of the name and retain requirement of the dramshop act, MCLA 436.22; MSA 18.993. [The dramshop act was later construed so as not to prevent settlements with the individual defendant, but merely meant that the individual defendant must be named and retained in the lawsuit], Buxton v Alexander, 69 Mich App 507; 245 NW2d 111 (1976), lv den 399 Mich 827 (1977).
This case is remanded to the trial court for entry of judgment allowing prejudgment interest.
Reversed, costs to plaintiffs.
V. J. Brennan, P. J., concurred.
MCLA 600.6013; MSA 27A.6013.
The jury had awarded plaintiffs $200,000 against defendant who had an insurance policy with a $100,000 limit. Also, plaintiffs were granted $34,333 prejudgment interest as provided by MCLA 600.6013; MSA 27A.6013.
MCLA 600.6013; MSA 27A.6013.
The policy language in Stone at 489 was:
"[A]ll interest accruing after entry of judgment until the company has paid or tendered or deposited in court such part of such judgment as does not exceed the limit of the company’s liability thereon.” (Emphasis deleted.)
The language of the policy in this case is:
"II B.(b) Pay all interest which shall accrue after the entry of judgment and until the Company has paid, tendered, or deposited in Court such portion of any judgment not exceeding the limit of the liability of the Company.”
Best’s, Aggregates and Averages, Property-Casualty (A. M. Best Company, 1977), pp 58-59.
We note that the trial judge desired to dispose of this case in the same manner as our opinion requires. But the trial court was reluctant to do the same because of the ruling in Dittos v Geyman, 68 Mich App 433; 242 NW2d 800 (1976), lv den, 397 Mich 837 (1976). | [
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J. E. McDonald, J.
Decedent Stanley Lemanski was injured on January 22, 1974, when he was struck by his own automobile while it was being driven by an employee of the service station where he had taken it to have mud flaps installed. Mr. Lemanski was standing at the back of the service bay as the employee drove the car into the bay. The car failed to stop and severely injured Mr. Lemanski’s legs. Mr. Lemanski, age 80, died in April of 1976. The cause of his death was not related to the accident.
In March, 1974, Mr. and Mrs. Lemanski filed this action. The defendants were Ford Motor Company, manufacturer of the 1974 automobile involved in the accident; Garth O’Mara, doing business as O’Mara Ford, the dealer who sold the vehicle to the Lemanskis; John Ahrens, the service station employee who was driving the car at the time of the accident; Kenneth Weber, individually and doing business as Weber’s Marathon Station, the operator of the service station and employer of Mr. Ahrens, and the Marathon Oil Company.
The suit was originally filed in Wayne County and there was a change of venue to Huron County where the matter was tried before a jury.
The case proceeded to trial against defendants Ahrens and Weber on a negligence theory; against O’Mara on breach of implied warranty; and against the Ford Motor Company on negligence, breach of express warranty and breach of implied warranty.
The trial of this matter consumed six days and resulted in a transcript of almost 900 pages. The instructions to the jury covered about 30 pages of the transcript.
The jury returned verdicts of no cause of action as against defendants Ahrens, Weber and O’Mara. Mrs. Lemanski, as executrix of her late husband’s estate, was awarded $86,626 against Ford Motor Company, and Mrs. Lemanski, individually, was awarded $48,250 against defendant Ford Motor Company. Mrs. Lemanski was 71 years of age at the time of the verdict.
Judgment was entered on the verdicts on June 24, 1976. On July 12, 1976, a motion for judgment notwithstanding the verdict, or in the alternative, for a new trial was filed by defendant Ford Motor Company. There is no brief in support of the motion made by defendant Ford Motor Company in the record of the lower court. An answer to the motion was filed by the plaintiff on August 11, 1976. There is no brief by the plaintiff in the lower court records in opposition to the motion for a new trial.
The disposition of this motion by the trial court consists of the following:
"This matter having come on to be heard before the Court on Motion of Defendant Ford Motor Company on Friday, August 20, 1976, and the Court having reviewed said Motion and plaintiff’s response thereto and having listened to the arguments of counsel;
"IT IS THEREFORE ORDERED that the Defendant’s Motion for Judgment Notwithstanding the Verdict and/ or for New Trial is denied.”
This order by the court was signed September 13, 1976, but the form indicates that several of the attorneys involved had approved it as to form and content as early as August 30, 1976. The lower court records indicate that the transcript was ordered on September 16, 1976, and that a claim of appeal was filed on the 23rd day of September, 1976, which reads as follows:
"Ford Motor Company, Defendant-Appellant, claims an appeal from the Order Denying Judgment Notwithstanding the Verdict and/or for New Trial entered September 13, 1976, in the Circuit Court for the County of Huron * * * copy of which is attached hereto.”
New trials are to be sought and granted or denied in the trial court. GCR 1963, 527.
It is only after the trial judge has exercised his discretion and has disposed of the motion that the matter may be presented to the Court of Appeals. GCR 1963, 805.
The question on review is whether or not the trial court abused its discretion in either granting or denying a motion for a new trial. GCR 1963, 812.6.
"The grant or denial of a new trial is within the sound discretion of the trial court which, if not abused, cannot be interfered with on appeal.” Kailimai v The Firestone Tire & Rubber Co, 398 Mich 230, 232; 247 NW2d 295 (1976).
The record brought to this Court for review does not contain any briefs of counsel or any argument offered in the trial court in support of appellant’s motion for a new trial or for a judgment notwithstanding the verdict.
"It was incumbent upon the appellant to prepare the record.” Kranz v Kranz, 323 Mich 680, 683; 36 NW2d 179 (1949).
"This Court is restricted to reviewing the record before it.” People v Williams, 19 Mich App 291, 306; 172 NW2d 515 (1969).
On the basis of the present record before this Court it is impossible to determine what issues were urged in the lower court as a basis for a new trial.
"This Court is limited on review to the issues decided by the trial court.” Hernandez v Consumers Power Co, 51 Mich App 288, 291; 214 NW2d 846 (1974).
In making a motion for a new trial, the burden is on the appellant-defendant to persuade the trial court of error committed during the trial of suffi cient magnitude to cause the trial court in its judicial discretion to grant a new trial.
"An appellate court will interfere with the trial court’s exercise of its discretion in this regard only if abuse of its discretion is so plain that upon consideration of the facts upon which the trial judge acted an unprejudiced person can say that there was no justification or excuse for the ruling made.” Carpenter v Cleveland, 32 Mich App 213, 215; 188 NW2d 248 (1971).
It is the responsibility of the appellant-defendant to bring before the reviewing court sufficient of the record from the lower court to indicate that the claim that the trial court abused its discretion in disposing of the motion has validity.
"The granting or denying of a motion for new trial rests within the sound discretion of the trial court and reversal of such order is a function of whether prejudicial error was committed and an abuse of discretion is found.” Durbin v K-K-M Corp, 54 Mich App 38, 57-58; 220 NW2d 110 (1974).
In Fera v Village Plaza, Inc, 396 Mich 639; 242 NW2d 372 (1976) the plaintiffs received a jury award of $200,000 for loss of anticipated profits in their proposed new business, as a result of defendant’s breach of a lease. The Court of Appeals reversed, 52 Mich App 532; 218 NW2d 155 (1974). The Supreme Court reversed and reinstated the jury award.
In his opinion reversing the Court of Appeals, Chief Justice Kavanagh said:
"The trial judge, who also listened to all of the conflicting testimony, denied defendants’ motion for a new trial, finding that the verdict was justified by the evidence. We find no abuse of discretion in that decision.
" 'As a reviewing court we will not invade the fact-finding of the jury or remand for entry of judgment unless the factual record is so clear that reasonable minds may not disagree.’ ” 396 Mich at 648.
In Kailimai v The Firestone Tire & Rubber Co, 398 Mich 230; 247 NW2d 295 (1976), the plaintiffs obtained a verdict and judgment in the circuit court. The trial court granted the defendant a partial new trial unless the plaintiff accepted a remittitur.
The Supreme Court, in a unanimous opinion by Coleman, J., said:
"The plaintiffs appealed to the Court of Appeals. The Court of Appeals peremptory order remanded the cause to Wayne County circuit court for partial new trials as to both plaintiffs, 'limited to damages only’. The Court of Appeals acted without the benefit of the trial transcript or transcripts of the post-trial proceedings.
"We granted leave on the narrow issue of whether the Court of Appeals erred in reversing the trial court’s grant of new trials without reviewing the record upon which the trial court acted or the reasons it assigned for its ruling.
"The grant or denial of a new trial is within the sound discretion of the trial court which, if not abused, cannot be interfered with on appeal.
"The Court of Appeals acted in the instant case without benefit of the record. * * * The Court of Appeals cannot decide this question without benefit of the lower court file and transcripts or a stipulated record.” 398 Mich at 232-233.
It would appear that any matter deemed by the moving party to be entitled only to a pro forma motion before the trial court and not deemed worthy of a brief in that court, supported by argument not deemed worthy of transcription by the moving party, cannot be considered in a reviewing court where the question is whether or not the trial judge abused his discretion in disposing of the motion before him.
"An appellate court, passing upon the propriety of a trial court’s denial of a motion for new trial, must view the motion through the eyes of the trial court.” People v Taylor, 383 Mich 338, 363; 175 NW2d 715 (1970).
It is axiomatic that if the moving party fails to make a motion for a new trial, error cannot be reviewed on appeal. More than a pro forma motion for a new trial is required. The requirement is that there be not only form but also substance to the motion for a new trial for it is only on the substance contained in the presentation of the motion for a new trial that the reviewing court can test whether or not the trial court in its disposition of the motion abused its discretion to the point that reversal of the trial court is required.
A perfunctory motion for a new trial followed by a perfunctory order denying that motion does not serve to catapult the issues before the trial court into the lap of the appellate court.
We note that in denying appellant’s motions the trial court did not sign and file a concise statement of his reasons as required by GCR 1963, 527.7.
We do not think any useful purpose would be served by requiring the trial court to comply with the court rule. People v Russell, 35 Mich App 387; 192 NW2d 689 (1971).
No elaborate and involved briefing or intricate and convoluted oral argument on the review level can "paper over” the lack of foundation laid in the trial court or the lack of sufficient record brought from the trial level for review.
The burden is on the moving party to show the reviewing court that the trial judge in denying its motion for a new trial abused this discretion. This appellant has failed to furnish this Court a record as a basis for holding that the trial judge abused his discretion.
The trial court’s denial of appellant’s motions for a new trial or for a judgment ngtwithstanding the verdict is affirmed.
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Per Curiam.
This is a contested election case arising out of the April 4, 1977, regular city election in Ann Arbor, Washtenaw County, Michigan. Defendant Albert H. Wheeler was issued a certificate of election to the office of Mayor of the City of Ann Arbor on the basis of official election returns showing that he had won by a single vote, having received 10,660 votes.
Thereafter, plaintiff Louis D. Belcher, who had received 10,659 votes, began this lawsuit. It is based on allegations that 23 illegal votes were cast at the election. Plaintiff asserted that 20 of the voters did not live within the city boundaries and therefore were unqualified voters because improperly registered. The allegations as to the impropriety of the remaining 3 votes are not presently before this Court.
Visiting Circuit Judge James J. Kelley was assigned to this case. On October 3, 1977, trial commenced, and 17 of the 20 voters alleged to live outside the city testified that although they were registered in Ann Arbor and had voted in the April 4, 1977, Ann Arbor city election they did not live within the city boundaries.
Plaintiff then advised the court that he intended to recall each voter witness and ask for whom each illegal vote was cast. After a brief recess, the trial court ruled, over objection, that testimony as to how each unqualified voter cast his or her vote was admissible.
Plaintiff then began recalling the voter wit nesses to the stand. Three of them answered the question, with 2 having voted for Mr. Wheeler and 1 having voted for Mr. Belcher. However, Susan Van Hattum, when recalled to the stand, refused to answer taking the position that she had a legal right not to reveal for whom she voted. After a discussion with her, the trial judge held her in contempt of court. Thereafter, Diane Lazinsky, when recalled to the stand, also refused to answer the question, taking a position similar to that of Ms. Van Hattum. The lower court then ordered a continuance of the trial.
Defendant mayor filed an application for leave to appeal in this Court together with a motion for immediate consideration and a motion for stay of proceedings. On October 10, 1977 this Court issued an order granting the motion for immediate consideration and the motion for stay of proceedings. Disposition of the application for leave to appeal was reserved so as to give other parties an opportunity to file pleadings with this Court.
Since then a motion for immediate consideration, a motion to intervene, and a motion to quash subpoenas have been filed by Ms. Van Hattum, Ms. Lazinsky, and the American Civil Liberties Union. Additionally, an answer in opposition to the application has been filed by plaintiff, and an answer in support of the application has been filed by the City Clerk of the City of Ann Arbor.
Michigan’s earlier state constitutions provided for voting by ballot except for township offices. Const 1850, art 7, § 2; Const 1908, art 3, § 7. The present constitution provides for voting by secret ballot in all elections. Const 1963, art 2, § 4. The use of the word "ballot” has long been construed by the Michigan Supreme Court to mean a secret vote, as distinguished from an announced vote. People v Cicott, 16 Mich 283; 97 Am Dec 141 (1868), overruled on other grounds, Petrie v Curtis, 387 Mich 436; 196 NW2d 761 (1972), Detroit v Board of Inspectors of Election, 139 Mich 548; 102 NW 1029; 111 Am St R 430; 69 LRA 184; 5 Am Ann Cas 861 (1905).
Further, the law is well established that a legal and qualified voter is privileged from testifying as to the candidate for whom he cast his vote; and a qualified voter is not deprived of his privilege of refusal to testify as to the contents of his ballot where the ballot itself is void. 26 Am Jur 2d, Elections, § 347, p 166.
However, it is also settled law in Michigan that the constitutional right of secrecy in voting does not extend to persons who are not qualified to vote under the constitution. People v Cicott, supra, Gardner v Board of School District No 6, Leoni Twp, 248 Mich 134; 226 NW 895 (1929), Thompson v Cihak, 254 Mich 641; 236 NW 893 (1931). A person who admits that he voted without proper qualifications can, in a judicial proceeding, be required to disclose how he voted. In the present case, determining for whom the illegal votes were cast could prevent manifest injustice if more of the qualified electors voted for plaintiff than for the defendant mayor. That is, the illegal votes of unqualified persons should not elect to office someone whom the qualified voters would not have elected to office.
This is not to imply that any of the 20 voters, including Ms. Van Hattum and Ms. Lazinsky, themselves acted improperly or illegally. From the record it appears that they went to the proper office for registration, stated their correct addresses, and were accepted for registration. The error occurred because the city officials taking the registration believed the addresses given lay within the city limits. But even though the error was inadvertent both on the part of those registering and the city officials taking the registration, the 20 persons involved were not qualified to vote. To them the right of secrecy in voting does not extend. Any other rule would permit, as it would here, nonresidents to elect to office a person not elected by resident qualified voters, or in the alternative, force a new and expensive election.
The motion for immediate consideration and the motion to intervene are hereby granted. The motion to quash subpoenas is hereby denied. The application for leave to appeal from the interlocutory order is hereby denied for failure to persuade the Court of the need for immediate appellate review, it appearing that the trial court correctly followed the law. A public question being involved, no costs are allowed. | [
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Per Curiam.
Defendant was convicted by a jury of armed robbery, MCLA 750.529; MSA 28.797. She was sentenced to a term of from 2 to 15 years, and appeals as of right. Only two issues merit discussion.
Defendant first asserts error by the prosecutor when, in his opening statement to the jury, he characterized the defendant’s relations with the complainant as prostitution.
The prosecutor’s statement only anticipated what the proofs would, and did, of necessity develop — the relations between defendant and complainant prior to the events which caused defendant’s arrest. The statement was not evidence, and it, together with the prosecutor’s voir dire of the jury on this subject, was directed as much as the character of the complainant as the defendant. Thus neither People v Buffa, 51 Mich App 680; 216 NW2d 494 (1974), nor People v Robinson, 386 Mich 551; 194 NW2d 709 (1972), applies. There is no evidence in the record of an effort by the prosecutor to inflame the jury; to the contrary, he cautioned them that defendant was not on trial for prostitution, but for armed robbery. The lack of any prejudicial impact is further demonstrated by the fact that defense counsel voiced no objection.
Defendant next finds error in the calling by the prosecutor of defendant’s probation supervisor to impeach defendant’s testimony that she had reported to probation on the day of the claimed robbery. We have no quarrel with this type of impeachment. Defendant’s account of the events of the day of the robbery centered on her visit to her probation officer. It was only in response to defense counsel’s question to the probation officer on cross examination that the officer identified herself as a drug counselor.
The same officer, after a recess, testified that during the recess she had phoned the director of the drug program who checked the defendant’s file and informed the witness that defendant had not reported to the drug program on March 14, 1975, the date of the robbery. This testimony was hearsay and should not have been admitted even though defense counsel made no objection. But noting that the witness, who was defendant’s probation supervisor, had already testified of her own knowledge that defendant had not reported to probation on March 14, we find no miscarriage of justice resulting from the admission of the hearsay testimony. MCLA 769.26; MSA 28.1096; GCR 1963, 529.1.
We affirm. | [
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A. E. Keyes, J.
In January, 1976, plaintiff Smith attempted to file proposed articles of incorporation on behalf of Freedom Mortgage Company. These proposed articles were rejected by the defendant. Plaintiff subsequently sought review of this action in the Oakland County Circuit Court. On November 12, 1976, the circuit court granted summary judgment against plaintiff who appeals that action as of right.
The rejected articles contain the following stated purpose:
"The purpose for which the corporation is organized is to provide loans to noncorporate borrowers at rates of interest in excess of 7% per annum, but less than 24% per annum, secured by second mortgages on single family residential property.”
This purpose was rejected by the defendant as not being in compliance with the requirements of the Business Corporation Act, MCLA 450.1101 et seq.; MSA 21.200(101) et seq., because it is an unlawful purpose contrary to the usury laws.
On appeal plaintiff argues first that the defendant has no authority to reject the articles and second, that the relevant Michigan usury statutes are unconstitutional.
I
Plaintiff asserts that the Business Corporation Act, (BCA), MCLA 450.1101 et seq.; MSA 21.200(101) et seq., does not give defendant legal authority to reject newly filed articles of incorporation and that, therefore, defendant is required by law to issue a certificate of incorporation to plaintiff. MCLA 450.1131; MSA 21.200(131) reads:
"(1) A document required or permitted to be filed under this act shall be filed by delivering the document to the administrator together with the fees and accompanying documents required by law. If the document substantially conforms to the requirements of this act, the administrator shall indorse upon it the word 'filed’ with his official title and the dates of receipt and of filing thereof, and shall file and index the document or a microfilm or other reproduced copy thereof in his office. * * *
"(2) The document is effective at the time it is indorsed unless a subsequent effective time is set forth in the document which shall not be later than 90 days after the date of delivery.” (Emphasis added.)
The defendant argues that the proposed articles failed to substantially conform to the requirements of the BCA because sections MCLA 450.1103; MSA 21.200(103) and MCLA 450.1251; MSA 21.200(251) require a lawful purpose which these articles do not contain. We agree that proposed articles of incorporation which state an unlawful corporate purpose do not substantially conform to the requirements of the BCA. We also agree that the defendant has no duty to accept and file such articles.
The relevant statutory provisions on interest rates are found at MCLA 438.31 et seq.; MSA 19.15(1) et seq. The interest rates set out in the proposed articles are not authorized by Michigan statute. Such rates of interest on loans secured by second mortgages on single family residential property are usurious; they would be in violation of the statute and therefore unlawful. The fact that the available statutory penalties are limited to those found in MCLA 438.32; MSA 19.15(2) does not make usurious interest rates lawful. Contracting for such rates is clearly contrary to the law in Michigan. Plaintiff points out that such contracts are not prohibited by the statute, but are merely rendered unenforceable as to their interest provisions. That, however, does not make such interest provisions lawful.
The stated corporate purpose contained in the proposed articles, contracting for unlawful interest rates, is unlawful. Therefore, the proffered articles do not conform to the provisions of the BCA and were properly rejected by defendant. We hold that the Business Corporation Act contains an implicit grant of authority to the defendant to reject such articles of incorporation.
II
Prior case law requires that the challenged
usury statutes be upheld. In Griffith v Connecticut, 218 US 563, 569; 31 S Ct 132, 133; 54 L Ed 1151, 1153-1154 (1910), Connecticut usury statutes were upheld in the face of assertions that they were repugnant to the contract clause and the Fourteenth Amendment:
"It is elementary that the subject of the maximum amount to be charged by persons or corporations subject to the jurisdiction of a state for the use of money loaned within the jurisdiction of the state is one within the police power of such state. The power to regulate existing, the details of the legislation and the exceptions proper to be made rest primarily within the discretion of the state legislature, and 'unless such regulations are so unreasonable and extravagant as to interfere with property and personal rights of citizens, unnecessarily and arbitrarily, they are within the power of the state; and that the classification of the subjects of such legislation, so long as such classification has a reasonable basis, and is not merely arbitrary selection without real difference between the subjects included and those omitted from the law, does not deny to the citizen the equal protection of the laws.’ Watson v Maryland, 218 US 173; 30 Sup Ct 644; 54 L Ed 987 (1910), and cases cited.”
In Wilcox v Moore, 354 Mich 499, 504; 93 NW2d 288 (1958), the Court found usury statutes to have a valid purpose:
"There is no need, at this late date in the law of usury (see Leviticus 25: 35-37; Deuteronomy 23: 19, 20; Saint Chrysostom’s Fifth Homily on the Gospel of St. Matthew; CL 1948, § 438.52 [Stat Ann § 19.12]) to discuss its rationale. Suffice to say that its purpose is to protect the necessitous borrower from extortion.”
We hold that the statutory classification scheme which differentiates between first and second mortgages is rational and reasonably related to the purpose set out in Wilcox, supra. That borrowers seeking loans using second mortgages as security need greater protection in the form of lower maximum permissible rates than first mortgage borrowers may be debatable, but such a judgment is one which the Legislature is entitled to make. Indeed, much of the argument made by plaintiff would more properly be addressed to the Legislature than to this Court.
Affirmed. No costs, a public question. | [
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R. M. Maher, J.
Defendant appeals from a judgment of alimony arrearage in the amount of $31,-050. The parties to this litigation were divorced on August 18, 1967. A division of the property was made and plaintiff-appellee was awarded periodic alimony of $450 per month, to be reduced to $400 per month upon the graduation from high school of the parties’ youngest child. Defendant-appellant was also ordered to pay a fixed sum of $21,075 at the rate of $300 per month from September 1, 1967, until August 1, 1969, and $275 per month thereafter until the full amount plus interest was paid.
In November, 1972, defendant discontinued payments of both the periodic alimony and the alimony in gross. Plaintiff, in April, 1976, petitioned for entry of a judgment on the amount of alimony arrearage. A judgment of alimony arrearage for $31,050 was entered on March 3, 1977. In the same judgment the trial court denied defendant’s petition to reduce or eliminate the alimony arrearage. Defendant appeals from the March 3, 1977, order as of right.
Alimony is a creature of statute. A court has no inherent jurisdiction to award it. Newton v Security National Bank of Battle Creek, 324 Mich 344; 37 NW2d 130 (1949). MCLA 552.27; MSA 25.105 provides various methods by which a court may enforce its awards of alimony. One of these meth ods is "execution for the collection of the judgment”.
Defendant argues that the court does not have the authority to enter a money judgment in the amount of the arrearage because the statute gives it none. Defendant claims the amount of accrued alimony can never be finally determined because the awards in alimony decrees in Michigan are modifiable at any time. Even accrued amounts of alimony are subject to modification. Nixon v Wright, 146 Mich 231; 109 NW 274 (1906), Loomis v Loomis, 273 Mich 7; 262 NW 331 (1935).
Alimony and maintenance decrees do not resemble judgments at law in the pecuniary obligations they impose at the time of their pronouncement. A decree of alimony is not such an unalterable and fixed judgment that an action at law can be based on it. Michigan courts have rejected claims when execution was sought directly on the divorce decree. Nixon v Wright, supra, Toth v Toth, 242 Mich 23; 217 NW 913 (1928). In these cases petitioners had not attempted to reduce the accrued amounts in question to judgment before seeking execution.
Some jurisdictions allow execution on the decree itself. Accrued and unpaid installments of alimony are treated as judgments for money upon which execution may issue without further proceedings. The right to the installment becomes absolutely vested when due. See Allingham v Allingham, 141 Colo 345; 348 P2d 259 (1959), and Brandt v Brandt, 107 US App DC 242; 276 F2d 488 (1960).
In those jurisdictions which allow the modification of alimony payments, including accrued, unpaid installments, past due amounts must be tran- ■ smuted into the form of a money judgment before a party may proceed by execution. Joseph Harris & Sons, Inc v Van Loan, 23 NJ 466; 129 A2d 571 (1957), Smith v Smith, 168 Ohio St 447; 156 NE2d 113 (1959), Snow v Snow, 8 App Div 2d 516; 190 NYS2d 902 (1959).
This practice has been sanctioned in Michigan on the ground that the proceeding fixes what had not been made final in the divorce decree. Before entering the judgment for the arrearage, the court has the opportunity to determine if the accrued amount is to be modified. After this determination, the amount owed becomes fixed.
"In the case at bar the court that granted the decree of divorce was asked by proper petition to determine the amount due under the requirement for the support of the children of the marriage. Such order was made after hearing. * * * The amount of appellant’s obligation being thus fixed, there is no merit to his contention that alimony and support provisions of the decree of divorce are subject to modification, and, hence, that a writ of execution may not properly issue.” St Ana v St Ana, 353 Mich 271, 277; 91 NW2d 292 (1958).
The practice of reducing accrued installments to a money judgment is the logical corollary to the rule that even arrears of alimony may be modified. Clark, Law of Domestic Relations, § 14.10, pp 471-472. Once it is determined that the alimony provisions are not to be modified, it is reasonable and fair to reduce the amount to a judgment on which the petitioner can execute in accord with MCLA 552.27; MSA 25.105.
In the instant case, plaintiff did not seek execution on the decree itself, as did the petitioners in Nixon v Wright, supra, and Toth v Toth, supra. The trial court was asked to reduce the arrearage to judgment; it had the opportunity and the power to reduce or eliminate the accrued alimony but chose not to. The type of action plaintiff took was expressly approved by this Court in Kavanagh v Kavanagh, 30 Mich App 636; 186 NW2d 870 (1971).
"[A] court in equity may enforce an award of alimony by issuance of a writ of execution on the husband’s property. MCLA § 552.27 (Stat Ann 1957 Rev § 25.105). It follows that when an award of execution for past due alimony is made, the amount of the obligation in arrears has been fixed.” 30 Mich App at 638.
Plaintiffs predicament in the present case demonstrates the need for and soundness of an action which allows a party to reduce accrued installments of alimony to judgment. Defendant lives in North Carolina. The North Carolina courts are not obligated to enforce the alimony provisions of a Michigan divorce decree since, on the basis of the decree itself, no vested rights exist which the courts of another state may enforce. Sistare v Sistare, 218 US 1; 30 S Ct 682; 54 L Ed 905 (1910), Barber v Barber, 323 US 77; 65 S Ct 137; 89 L Ed 82 (1944). Even if North Carolina did recognize the alimony provisions of the decree itself, the form of remedy to enforce payment of the alimony awarded is determined by the law of North Carolina, the state in which enforcement is sought. 27B CJS, Divorce, § 406, p 926. A foreign alimony award is enforceable in North Carolina by execution and not by contempt proceedings. Willard v Rodman, 233 NC 198; 63 SE2d 106 (1951). Defendant would have effectively divested himself of his legal obligation by removing himself from Michigan. Plaintiff would be without recourse. The reduction of the accrued alimony to a money decree gives plaintiff a final judgment which the North Carolina courts will recognize and upon which plaintiff can execute in the courts of that state. See Lockman v Lockman, 220 NC 95; 16 SE2d 670 (1941), Willard v Rodman, supra.
The trial court acted properly in reducing to judgment past due installments of periodic alimony. As for the alimony in gross, we note that plaintiff need not have reduced that amount to judgment. An action at law on the decree itself would have been proper since the divorce judgment set a fixed amount in gross. Bartholomae v Stellwagen, 277 Mich 618; 270 NW 159 (1936). But there is nothing incorrect in the way plaintiff chose to proceed. Given the two types of alimony provided for in the decree, having the entire amount reduced to judgment was a suitable procedure.
We find no merit in defendant’s other issue on appeal. Defendant agreed to a stipulation that the case be submitted on briefs and failed to seek discovery or a hearing afterwards.
Affirmed. Costs to plaintiff. | [
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Danhof, C. J.
The parties appeal by right from the circuit court’s summary judgment for plaintiffs holding unconstitutional several provisions of 1974 PA 300 as amended by 1976 PA 12, codified as MCLA 257.1301 et seq.; MSA 9.1720(1) et seq., and commonly known as the Motor Vehicle Service and Repair Act. The circuit judge permanently enjoined the Secretary of State from implementing or enforcing the provisions held unconstitutional, but held that they were severable from the remainder of the act and that the secretary was entitled to enforce "all sections not declared unconstitutional”.
The parties have devoted substantial portions of their briefs to arguments concerning the wisdom of the legislation before us for consideration. We do not pass upon the wisdom of legislative judgments, precisely because it is to the Legislature that the power, duty, and heavy responsibility of making such judgments is entrusted. Const 1963, art 4, § 1. Our function is confined to reviewing the questions of law presented by the trial judge’s findings of unconstitutionality.
"The primary determination of public need and character of remedy in the exercise of the police power is in the legislature. Unless the remedy is palpably unreasonable and arbitrary so as needlessly to invade prop erty or personal rights as protected by the Constitution, the act must be sustained. The presumption favors validity and, if the relation between the statute and the public welfare is debatable, the legislative judgment must be accepted.” Carolene Products Co v Thomson, 276 Mich 172, 178; 267 NW 608 (1936).
Bearing these principles in mind, we proceed to consideration of the provisions of the act held unconstitutional by the trial judge.
I
Plaintiffs maintained, and the trial judge agreed, that the legislative scheme allowing the administrator to make rules, investigate alleged violations, prosecute, adjudicate, and impose sanctions results in such a commingling of powers as to constitute a deprivation of due process under the Michigan Constitution. The trial judge concluded:
"As administrator the Secretary has the authority to investigate repair facilities. If it appears that there is a violation of the rules or statute the Secretary may prosecute and sit in judgment. The Secretary argues that due process is the embodiment of fair play. It is difficult to see how there can be fair play when a person has made a decision as to what is right or wrong (rule) and then the same person or one in the same department sits in judgment of one accused of violating that rule. Under such a system there is likely to be some bias, and unquestionably the appearance of bias on the part of the person sitting in judgment.”
Accordingly, the trial judge held that the combination of functions in the administrator violated due process of law, relying on Crampton v Department of State, 395 Mich 347; 235 NW2d 352 (1975), There is no gainsaying the trial judge’s conclusion that the act endows the administrator with comprehensive power to investigate, prosecute, adjudicate, and impose sanctions for violations of the act or rules promulgated thereunder, as is apparent from the statutory provisions set out in the margin. We disagree, however, with the trial judge’s interpretation of the Supreme Court’s decision in Crampton, supra.
Evidently the trial judge viewed Crampton as an instance of the differing treatment accorded by Federal and state courts to questions involving allegedly unconstitutional combinations of functions, noting that "State courts are more likely to give closer scrutiny on review to the combination of inconsistent functions”. See 2 Davis, Administrative Law, § 13.02, p 181 (1958). Be that as it may, it is also true that "the case law, both federal and state, generally rejects the idea that the combination with judging of prosecuting or investigating functions is a denial of due process * * * ”. Davis, supra, § 13.02, p 175, Withrow v Larkin, 421 US 35, 52; 95 S Ct 1456, 1467; 43 L Ed 2d 712, 726 (1975).
In Crampton the Supreme Court at 351, adopting the analysis of the United States Supreme Court in Withrow v Larkin, supra, at 47; 95 S Ct at 1464; 43 L Ed 2d at 723, identified four situations in which " 'experience teaches that the probability of actual bias on the part of the judge or decisionmaker is too high to be constitutionally tolerable’ ”. Here, as in Crampton, supra, at 355-356, our examination focuses on the last category of situations, in which the judge or decision maker "might have prejudged the case because of prior participation as an accuser, investigator, fact finder or initial decisionmaker”. In Crampton, plaintiff had been arrested by a member of the Lansing Police Department and convicted of driv ing under the influence of intoxicating liquor, MCLA 257.625; MSA 9.2325, and, because he refused to consent to a chemical test to determine the alcohol content of his blood, he was subjected to the license revocation .procedures provided in such cases under the implied consent law. MCLA 257.625d, e, and f; MSA 9.2325(4), (5), and (6). Under the law as it existed prior to the decision in Crampton, the license appeal board that entertained Crampton’s appeal from revocation of his driver’s license included a police officer from the local police department involved in the initial arrest and prosecution. The only questions in the appeal proceedings were
"whether his fellow police officer had (1) reasonable grounds to believe Crampton was driving while under the influence of intoxicating liquor, (2) placed him under arrest while he was in that condition, (3) advised him of his rights, and (4) requested that he submit to a chemical test and, if so, whether he reasonably refused to submit to a test.” Crampton, supra, at 356-357. (Footnotes omitted.)
Noting that "resolution of those factual issues will often turn on appraisal of the credibility of the opposing testimony of the officer and the citizen”, the Court concluded that
"The risk that they [police officers and prosecuting attorneys] will be unable to step out of their roles as full-time law enforcement officials and into the role of unbiased decisionmaker in a law enforcement dispute between a citizen and a police officer presents a probability of unfairness too high to be constitutionally tolerable.” Crampton, supra, at 357-358. (Footnotes omitted.)
For several reasons, the holding in Crampton does not dictate a conclusion that the act under consideration is unconstitutional. In contrast with the statutorily defined composition of the appeal board in Crampton, the Motor Vehicle Service and Repair Act does not mandate hearings before a "full-time law enforcement official” whose functions include not only administrative adjudication of the dispute arising under the act but also the instigation or prosecution, in separate criminal proceedings, of the same statutory violations. This conclusion derives in part from the fact that the Supreme Court gave no indication in Crampton that it found objectionable the inclusion of the Secretary of State or his representative on the appeal board, and ip part from the fact that in Wolney v Secretary of State, 77 Mich App 61; 257 NW2d 754 (1977), this Court upheld the legislative response to Crampton.
After the decision in Crampton the appeal board was replaced by a hearing officer appointed by the Secretary of State and the circuit court agreed with Wolney’s contention that "when the Legislature amended the statute by making the sole member of the hearing panel a hearing officer appointed by the Secretary of State, it continued a procedure which was defective on the same due process grounds as the predecessor statute”. Wolney, supra, at 66. On appeal, the Wolney panel observed:
"[T]he Secretary of State is not such a [full time] law enforcement officer even though the Secretary of State is given certain enforcement powers.
"In addition, the responsibilities of the Secretary of State in Crampton were delegated to an employee of the Secretary of State and in the present case the statute provides for the appointment of a hearing offi cer; in neither case has the Secretary of State given full time law enforcement personnel the duty of evaluating the credibility of other such personnel. Therefore the holding of Crampton in regard to full time law enforcement officers is not controlling in this case.” Wolney, supra, at 67.
We recognize that the administrator’s functions under this act are more comprehensive than those remitted to him under the implied consent law, since here he has investigatory and rule-making powers in addition to his adjudicative function. Cf. Wolney, supra, at 69. Nevertheless, we are persuaded, absent any indication in Crampton that the Supreme Court intended to impose, as a matter of Michigan constitutional law, due process limitations more stringent than those applicable under the Federal Constitution, that the combination of these several powers in the Secretary of State does not render the act unconstitutional. We are guided by the holding of the United States Supreme Court in Withrow v Larkin, supra, on which the Court relied in Crampton in applying the "probability of unfairness” standard enunciated in Withrow. In Withrow the Court said:
"Not only is a biased decisionmaker constitutionally unacceptable but 'our system of law has always endeavored to prevent even the probability of unfairness.’ ” 421 US at 47; 95 S Ct at 1464; 43 L Ed 2d at 723.
The Court concluded, however:
"The contention that the combination of investigative and adjudicative functions necessarily creates an unconstitutional risk of bias in administrative adjudication has a much more difficult burden of persuasion to carry. It must overcome a presumption of honesty and integrity in those serving as adjudicators; and it must convince that, under a realistic appraisal of psychological tendencies and human weakness, conferring investigative and adjudicative powers on the same individuals poses such a risk of actual bias or prejudgment that the practice must be forbidden if the guarantee of due process is to be adequately implemented.” Withrow v Larkin, supra, 421 US at 47; 95 S Ct at 1464; 43 L Ed 2d at 723-724. (Emphasis added.)
The same language from Withrow was quoted approvingly by the Court in In the Matter of Del Rio, 400 Mich 665, 690-691; 256 NW2d 727 (1977), in which the Court rejected respondent’s contention that the combination of investigative and adjudicative roles in the Judicial Tenure Commission created an "inherent” risk of bias or prejudgment. In so holding, the Court stated that "the authority is legion in support of the proposition that combining the investigative and adjudicative roles in a single agency does not necessarily violate due process in administrative adjudications”, and also observed that, as here, respondent had failed to document his charge by any showing of actual risk of bias. 400 Mich at 690-691. The Court also noted that GCR 1963, 932.10 specifically requires the appointment of an independent master to preside over the adjudicative process, a factor quite similar to that cited by the Court in With-row:
"Within the Federal Government itself, Congress has addressed the issue in several different ways, providing for varying degrees of separation from complete separation of functions to virtually none at all. For the generality of agencies, Congress has been content with § 5 of the Administrative Procedure Act, 5 USC § 554(d) [5 USCS § 554(d)], which provides that no employee engaged in investigating or prosecuting may also participate or advise in the adjudicating function * * * .” Withrow v Larkin, supra, at 51-52; 95 S Ct at 1467; 43 L Ed 2d at 726.
Our own Administrative Procedure Act, MCLA 24.282; MSA 3.560(182), provides in pertinent part:
"Unless required for disposition of an ex parte matter authorized by law, a member or employee of an agency assigned to make a decision or to make findings of fact and conclusions of law in a contested case shall not communicate, directly or indirectly, in connection with any issue of fact, with any person or party, nor, in connection with any issue of law, with any party or his representative, except on notice and opportunity for all parties to participate. This prohibition begins at the time of the notice of hearing. An agency member may communicate with other members of the agency and may have the aid and advice of the agency staff other than the staff which has been or is engaged in investigating or prosecuting functions in connection with the case under consideration or a factually related case.” (Emphasis added.)
Further, the APA provides a procedure whereby a party who has reason to believe that the adjudicating officer’s impartiality has been tainted can move for his disqualification to preside in the proceeding.
We think it significant that in Del Rio, supra, the Court did not cite or discuss its decision in Crampton, which offers inferential support for our narrow construction of the holding in that case. We agree with the Wolney panel that "Examination of the principal case upon which Crampton relies shows that the rule in Crampton should not be expanded further”. Wolney, supra, at 68.
Finally we do not believe that the added factor of the administrator’s rule-making power should alter the result. "An administrative agency may have administrative or executive, investigatory, legislative, or judicial powers or all or a combination of these.” 1 Am Jur 2d, Administrative Law, § 77, p 872.
"Some administrative agencies investigate violations of law and act as accusers as well as determine violations of their own regulations, or act as advocates or prosecutor as well as judge in the same proceeding.
"The danger of unfairness is particularly great in an agency in which there is a high degree of concentration of both prosecuting and judicial functions, especially where the functions are combined in the same men. The courts have pointed out that in such situations the agency members must be zealous in the recognition and preservation of the right to a hearing by impartial triers of the facts, and such fusion of functions has been subjected to considerable criticism. However, the combination of functions has never been held to violate constitutional right or deny due process of law.” Id. § 78, p 873.
In Hoffmann-LaRoche, Inc v Kleindienst, 478 F2d 1, 13 (CA 3, 1973), which involved an administrative proceeding that culminated in the issuance of an order of general application, the Court said:
"The fact that Hoffmann may be one of those adversely affected explains the highly adversary character of the proceeding but does not change the generalized nature of the order. Although the proceeding involved a concrete factual situation from which factual inferences provided the basis for the Director’s order, the facts and inferences therefrom were used to formulate a basically legislative-type judgment of entirely prospective application. Since the proceedings were thus in substance rule making, the separation of prosecuting and decision-making functions was not required. ” (Emphasis added.) (Citations omitted.)
In the present case the administrator has already promulgated rules having only prospective application, see 1976 AACS R 257.101 et seq., and we see no due process objection to their future enforcement in the proceedings provided under the act in light of the provisions of the Administrative Procedures Act designed to ensure that such proceedings are fair and impartial. As the Supreme Court observed in Attorney General ex rel Rich v Jochim, 99 Mich 358, 371; 58 NW 611 (1894):
"Due process is not necessarily judicial process. Administrative process, which has been regarded as necessary in government, and sanctioned by long usage, is as much due process as any other.”
Accordingly, for the foregoing reasons, we reverse the judgment of the trial court holding unconstitutional the act’s commingling of investigative, prosecutorial, rule-making and adjudicative functions in the administrator.
II
Section 9 of the act provides:
"The administrator shall * * * promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws.
"The rules shall include but not be limited to:
"(i) Definitions of unfair and deceptive practices.” MCLA 257.13090); MSA 9.1720(9)(i).
Plaintiffs contended, and the circuit judge agreed, that the act contained no standard to guide the administrator in exercising his rule-making power and that therefore this section constituted an unconstitutional delegation of legislative power to the administrator.
Here, as in Argo Oil Corp v Atwood, 274 Mich 47, 52; 264 NW 285 (1935), "The attack is upon the statute itself, not upon the discretion exercised by the secretary of State thereunder if the law be valid”. The principles governing our inquiry into the validity of a statutory delegation to the administrator of rule-making power were summarized recently in Department of Natural Resources v Seaman, 396 Mich 299, 308-309; 240 NW2d 206 (1976):
"In making this determination whether the statute contains sufficient limits or standards we must be mind ful of the fact that such standards must be sufficiently broad to permit efficient administration in order to properly carry out the policy of the Legislature but not so broad as to leave the people unprotected from uncontrolled, arbitrary power in the hands of administrative officials.
"While no hard and fast rule exists for determining whether a given statute has provided sufficient standards, a number of guiding principles have evolved in Michigan jurisprudence to assist in making a determination in this case.
"First, the act in question must be read as a whole; the provision in question should not be isolated but must be construed with reference to the entire act. Argo Oil Corp v Atwood, supra, 53.
"Second, the standard should be 'as reasonably precise as the subject matter requires or permits’. Osius v St Clair Shores, 344 Mich 693, 698; 75 NW2d 25; 58 ALR2d 1079 (1956).
"The preciseness of the standard will vary with the complexity and/or the degree to which subject regulated will require constantly changing regulation.8 * * * .
"Third, if possible the statute must be construed in such a way as to 'render it valid, not invalid’, as conferring 'administrative, not legislative’ power and as vesting 'discretionary, not arbitrary, authority’. Argo Oil Corp v Atwood, supra, 53.
Reading the act before us as a whole, it is apparent, as the trial judge himself observed, that a "legislative intent may be gleaned from a reading of the entire statute”. Focusing only on those sections that relate to "unfair and deceptive practices,” we find that the act gives content to that standard. Section 32 of the act requires the repair facility to provide a written, itemized estimate of the price for labor and parts necessary for a specific job before commencing work, prohibits charges in excess of the estimated price without first obtaining the written or oral consent of the customer, renders the customer liable for the cost of returning the vehicle to its former condition if the customer refuses authorization for repairs in excess of the estimate that are subsequently determined to be necessary by the repair facility, and requires the repair facility to itemize such costs in writing. Section 32 also requires that the cost of diagnosis shall be contained in the written estimate provided before the diagnosis is undertaken. The obvious purpose of these provisions is to permit the consumer to enter into a transaction involving the repair of a sophisticated machine with reasonably precise awareness of the cost of such services, if he or she so desires, and to prevent unilateral imposition upon the consumer by the repair facility of additional costs in excess of the estimated cost without prior notice to and consent by the consumer. The section protects the repair facility by making the consumer liable for the cost of returning the vehicle to its former condition if permission to perform additional needed repairs is refused, and also provides, alternatively, that the consumer may waive the above rights by agreeing to "pay all reasonable costs of repair up to an amount stated”. Waivers must be given "voluntarily and with full knowledge of the implications of the waiver”, and waivers may not be used to evade the act.
To ensure that these provisions are effectuated, the administrator has promulgated rules defining unfair and deceptive practices that prohibit contracts that use a waiver to circumvent or evade the act, and contracts that take "advantage of a customer’s inability to reasonably protect his interests on account of illiteracy or inability to understand the language of an agreement, if the facility knows or reasonably should know of the customer’s inability”. 1976 AACS R 257.131(l)(a) and (b). The act prohibits misrepresentations by the repair facility, and the rules promulgated by the administrator detail the meaning of this prohibition by enumerating the situations in which specific types of misrepresentations will be deemed unfair and deceptive practices. Similarly, rules have been promulgated defining as unfair and deceptive practices various types of non-compliance with § 34 of the act, which requires written statements of repairs and charges to be provided upon return of the vehicle to the customer, and § 33 of the act granting customers the right to return of replaced parts upon completion of repairs, and requiring that customers be informed of that right.
It is apparent from the foregoing, which is by no means intended as an exhaustive or exclusive exposition of the sections of the act (and the rules promulgated pursuant to them) that give meaning and precise content to the term "unfair and deceptive practice”, that § 9 does not delegate to the administrator unbridled authority or arbitrary discretion to declare practices unfair and deceptive. Rather, actions prohibited by the act, and noncompliance with the mandates of the act, constitute unfair and deceptive practices susceptible to more extensive definition by rule. The statutory provisions are precise and detailed, and provide definitive guidelines for the formulation of rules explicating fully the meaning of the statutory mandates and prohibitions.
The complexity of modern motor vehicles and the rapid advance of automotive technology make it difficult, in some cases, to diagnose mechanical problems, estimate the cost of repairs, perform the repairs, determine whether the repairs have been properly performed, and decide whether a given repair is necessary or worthwhile. Given these complexities, we are satisfied that the standard provided by §7’s prohibition against engaging or attempting to engage in "a method, act, or practice which is unfair or deceptive,” MCLA 257.1307; MSA 9.1720(7), and § 9’s delegation to the administrator of authority to define unfair and deceptive practices, is "as reasonably precise as the subject matter requires or permits”. See Department of Natural Resources v Seaman, supra, at 309. Read as a whole, the act prohibits unfair and deceptive practices defined in the sections of the act alluded to above. The Legislature’s use of the phrase "unfair and deceptive practices” as a standard to guide the administrator in the exercise of his rule-making power thus delegates that power in terms sufficiently flexible to adapt the rules promulgated pursuant to the act to changing technology and business practices, but at the same time the administrator’s discretion is limited by the parameters of the act as a whole.
Although we recognize that the strictures imposed upon the business practices of reputable repair facilities by the act and the rules promulgated pursuant thereto may produce burdensome results in some cases, we are also mindful of the gross abuses practiced by a segment of the repair industry, which the Legislature sought to remedy by this act, and of our duty to construe the statutory response to the problem so as to " 'render it valid, not invalid,’ as conferring 'administrative, not legislative’ power and as vesting 'discretionary, not arbitrary, authority’ Department of Natural Resources v Seaman, supra, at 309. In Ranke v Corporation & Securities Commission, 317 Mich 304, 307; 26 NW2d 898 (1947), the Court upheld a statute authorizing the commission to suspend or revoke real estate broker licenses for "Any other conduct whether of the same or a different character than hereinbefore speciñed, which constitutes dishonest or unfair dealing”. (Emphasis added.) The Court said:
"The limitation, placed upon the commission by the act, is that the conduct complained of must constitute dishonest or unfair dealing. The act provides a standard by which the commission shall be guided in the making of rules. It would be quite impossible for the legislature to enumerate all the specific acts which would constitute dishonest or unfair dealing upon the part of those engaged in the sale of real estate. The act authorizes the commission to enumerate additional grounds of dishonest or unfair dealing and to make rules in harmony with the subject matter legislated upon.” 317 Mich at 309-310 (emphasis added).
Although the Legislature could conceivably have provided more elaborate standards for the exercise of the administrator’s power, it is clear that there is a standard; practices prohibited by rule must be "unfair or deceptive”. This case is thus unlike Osius v St Clair Shores, 344 Mich 693; 75 NW2d 25 (1956), in which the Court found that there were no standards to control exercise of the board’s discretion. Reading the act as a whole, the "unfair or deceptive practices” standard provided by the act is sufficiently definite to render constitutional the Legislature’s delegation of rule-making power to the administrator, and accordingly the trial court is reversed.
Ill
In People v Wilde, 42 Mich App 514; 202 NW2d 542 (1972), defendant, with the assistance of a "cooperative” insurance adjuster, inflated his estimate of the cost of repairing an automobile more than $400 over the actual cost of the repairs and was convicted of obtaining money under false pretenses. This Court reversed the conviction because, since the insurance company knew that defendant’s estimate contained misrepresentations, the element of reliance by the victim was absent. The Court said:
"As offensive as cases involving people being duped by gross misrepresentations of value may be, the Legislature has failed to make such chicanery a crime.” 42 Mich App at 518.
In § 32(1) of the act before us, quoted in full at n 10, ante, the Legislature has attempted to curb such abuses by providing that "If the actual cost of repair is less than the agreed upon estimated cost, the customer shall pay only the actual cost”.
Plaintiffs argued, and again the trial judge agreed, that this sentence of the act is void for vagueness. The interpretations advanced by the parties and considered by the trial court are well summarized in the trial judge’s opinion, and will not be considered further. Our own view of the disputed sentence is different from those of the parties and the trial judge, and therefore we begin with a slate cleaned of all except what the Legislature has written.
We begin with several familiar principles of statutory construction devised by the courts to assist them in negotiating the labyrinth of legislative linguistics. Statutes come to us cloaked with a presumption of constitutional validity. Manistee Bank & Trust Co v McGowan, 394 Mich 655, 667; 232 NW2d 636 (1975). In construing a legislative act, if more than one construction is permissible, that which sustains the legislation will be adopted. Loose v City of Battle Creek, 309 Mich 1, 13; 14 NW2d 554 (1944), Evans Products Co v State Board of Escheats, 307 Mich 506, 533-535; 12 NW2d 448 (1943) (collecting rules of construction). Courts should strive to sustain the validity of a statute, if that can be done without doing actual violence to the language used in the act, People v Harper, 1 Mich App 480, 483; 136 NW2d 768 (1965), aff'd 379 Mich 440; 152 NW2d 645 (1967), appeal dismissed, 392 US 644; 88 S Ct 2296; 20 L Ed 2d 1353 (1968), and whenever possible, an interpretation that does not create constitutional invalidity is preferred to one that does. Schwartz v Secretary of State, 393 Mich 42, 50; 222 NW2d 517 (1974). The rule requiring us to choose a constitutional reading of the statute applies when the language is ambiguous, Brown v Saginaw Metal Casting, 68 Mich App 85, 89; 241 NW2d 769 (1976), and the presumption of constitutionality may justify even a construction that is rather against a natural interpretation of the language used, if necessary to sustain the enactment. People v Bandy, 35 Mich App 53, 57; 192 NW2d 115 (1971). Courts prefer to impute to the Legislature an absence of intention to take private property without just compensation therefor, on the assumption that the Legislature would not designedly commit an act of injustice. Pigorsh v Fahner, 386 Mich 508, 514; 194 NW2d 343 (1972). It is also well settled that a statutory interpretation that leads to an absurd result should be avoided. In re Lambrecht, 137 Mich 450, 454; 100 NW 606 (1904).
In construing a statute the words used are given their ordinary meaning. American Telephone & Telegraph Co v Employment Security Commission, 376 Mich 271, 279; 136 NW2d 889 (1965). Here the asserted ambiguity results from the use of the words "cost” and "actual cost” in the last sentence of § 32(1). Throughout the preceding four sentences of § 32(1) the terms "price” or "estimated price” are used. The trial judge concluded that the change in terminology had some unfathomable significance that rendered the last sentence unconstitutionally vague, but once it is recognized, first, that the words "price” and "cost” are used interchangeably in common usage, and, secondly, that it is only after a repair is completed that the actual cost to the customer can be computed, we see no insuperable obstacle to a constitutional construction of § 32(1).
Although good legislative draftsmanship would ordinarily call for use of the same term throughout the statute, the alteration in point of view that occurs between the time a repair is contemplated (estimate price) and the time the repair is completed (actual cost) explains the shift in terminology. It must be remembered that under the act the whole process of performing repairs begins with an estimate, which Websters Third New International Unabridged Dictionary (1964), defines as "a judgment made from usually mathematical calculation especially from incomplete data: a rough or approximate calculation (as of the number, amount, or size of anything)”. (Emphasis added.) Having performed the repair, the repair facility is now in a position to compute the actual cost to the consumer of the service performed. It may be that in the course of the repair a part that was thought to need replacement will have been found serviceable. In that case, the "actual cost” of repair is the "estimated price” less the cost (included in the estimated price) of the part that was not replaced. The estimated price also might be reduced by discovering, in the course of performing the repair, that a given operation, for which a labor charge was included in the estimated price, does not have to be performed, as, for example, when a part thought to need replacement or repair actually does not. In that case, the "actual cost” to the consumer is the "estimated price” less the cost of the part not replaced and the labor charge included in the estimated price for its replacement. Just as § 32(1) permits the repair facility a margin of estimational error in its favor, so it grants the customer the benefit of actual savings under the estimated price.
We construe the disputed sentence as follows: "If the actual cost of repair (being the sum of the cost to the consumer of parts actually used and labor actually required) is less than the agreed upon estimated cost, the customer shall pay only the actual cost.” So construed, the provision is not vague, circular, nor absurd. It does not take from the repair facility that margin of profit to which it is rightfully entitled. It means that the repair facility is entitled to be paid for the parts and services it actually provides, and that the customer is required to pay for only those parts and services he or she actually receives. This was manifestly the Legislature’s intent, however inartfully that intent may have been expressed, and it requires no great creative genius, but only common sense, for us to effectuate that intent.
Conclusion
As we have sustained those portions of the act held unconstitutional by the trial judge, the other questions raised on appeal need not be discussed. We express no opinion on the wisdom of the act, other than to observe that it reflects a comprehensive effort by the Legislature to remedy some of the defects in the law that prompted our comments in People v Wilde, supra, at 518. Inasmuch and insofar as it is constitutional, the act must be effectuated likewise by the courts.
The judgment below is reversed. No costs, a public question involved.
Allen, J., concurred.
MCLA 257.1308; MSA 9.1720(8), provides:
"The secretary of state or his designee shall administer this act. A person designated by the secretary of state to act in his place shall not be affiliated with a motor vehicle repair facility.”
MCLA 257.1309(i); MSA 9.1720(9X0, provides that the administrator shall:
"Promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws.
“The rules shall include but not be limited to:
“(i) Definitions of unfair and deceptive practices.
"(ii) Definitions of minor repair services.
"(iii) Criteria for determining the competency of specialty and master mechanics, as a prerequisite to continued certification under this act.
"(iv) Definition of repair categories for the certification of specialty and master mechanics.
"(v) Other rules as are necessary to implement this act.”
MCLA 257.1326; MSA 9.1720(26), provides:
"(1) The administrator shall on his own initiative or in response to complaints, make reasonable and necessary public or private investigations within or outside of this state and gather evidence against a person who violated or is about to violate this act or a rule or order hereunder.
"(2) The administrator may:
"(a) Require or permit a person to file a statement in writing or otherwise as the administrator determines as to all the facts and circumstances concerning the matter to be investigated.
"(b) Mediate disputes between parties arising from violations of this act or an administrative rule.
"(c) Develop conditions of probation or operation for the facility or mechanic mutually agreed upon and signed by the facility or the mechanic and the administrator instead of further disciplinary proceedings.
"(d) On his own inititive, conduct spot check investigations of motor vehicle repair facilities registered or required to be registered throughout the state on a continuous basis to determine whether or not the facility is in compliance with this act and rules promulgated hereunder. The administrator may not alter the odometer on a vehicle employed in such investigations or deliberately misrepresent the condition of the vehicle.
"(e) Conduct mechanical and diagnostic examinations of vehicles when there are reasonable grounds to believe that an unlawful act or practice was used to produce the repair or to make the repair.”
Under MCLA 257.1317; MSA 9.1720(17), "The registered facility or one required to be registered under this act shall be open to inspection by the administrator during reasonable business hours. A person who hinders, obstructs, or otherwise prevents an inspection is in violation of this act.” The act also requires that a repair facility "shall maintain such reasonable records as are required by rules promulgated to carry out this act. The records shall be open for reasonable inspection by the administrator or other law enforcement officials as specified by rule.” MCLA 257.1318; MSA 9.1720(18).
MCLA 257.1321(1); MSA 9.1720(21)(1), provides:
"If the administrator determines after notice and a hearing that a person has violated this act or a rule promulgated pursuant to it, or engaged in an unfair or deceptive method, act, or practice, directly or through an agent or employee, he may issue an order requiring the person to cease and desist from the unlawful act or practice or to take such affirmative action as in the judgment of the administrator will carry out the purposes of this act.”
Further, upon making "a finding of fact in writing that the public interest will be irreparably harmed by delay in issuing an order” the administrator may issue a temporary cease and desist order prior to holding a hearing on the alleged violation. MCLA 257.1321(2); MSA 9.1720(21X2). In addition, the act empowers the administrator to "deny, suspend, or revoke a registration, certificate, or mechanic trainee permit after notice and opportunity for a hearing where the administrator determines that the facility, mechanic, or trainee” engaged in one of eleven specified categories of prohibited conduct.
The act also provides an alternate, concurrent, enforcement procedure:
"If it appears that a person has engaged, is engaging, or is about to engage in a method, act, or practice in violation of this act or the rules promulgated hereunder, the attorney general or county prosecutor, may after receiving notice of an alleged violation of this act, with or without prior administrative proceedings having occurred, bring an action in the name of the people of this state to enjoin that method, act, or practice.” MCLA 257.1323; MSA 9.1720(23).
Upon receipt of notice of an alleged violation of the act, the Attorney General or prosecuting attorney "shall immediately forward written notice of the alleged violation” to the administrator. MCLA 257.1324; MSA 9.1720(24).
The act also contemplates informal resolution of disputes between parties contesting a violation of the act by means of a "voluntary assurance” by the motor vehicle repair facility that the facility will discontinue the alleged violation. MCLA 257.1327; MSA 9.1720(27). Such assurances may include provisions for refund, affirmative action by the facility to correct alleged violations, or for the deposit in escrow of money for restitution to an aggrieved consumer pending the outcome of an action pursuant to the act.
"Among the situations identified by the Court as presenting that risk are where the judge or decisionmaker
(1) has a pecuniary interest in the outcome;
(2) 'has been the target of personal abuse or criticism from the party before him’;
(3) is 'enmeshed in [other] matters involving petitioner * * * ’; or
(4) might have prejudged the case because of prior participation as an accuser, investigator, fact finder or initial decisionmaker.” Cramp-
ton, supra, at 351 (footnotes omitted).
1976 PA 9, see MOLA 257.625Í; MSA 9.2325(6), MCLA 257.322; MSA 9.2022.
MCLA 24.279; MSA 3.560(179):
"An agency, 1 or more members of the agency, a person designated by statute or 1 or more hearing officers designated and authorized by the agency to handle contested cases, shall be presiding officers in contested cases. Hearings shall be conducted in an impartial manner. On the filing in good faith by a party of a timely and sufficient affidavit of personal bias or disqualification of a presiding officer, the agency shall determine the matter as a part of the record in the case, and its determination shall be subject to judicial review at the conclusion of the proceeding. When a presiding officer is disqualified or it is impracticable for him to continue the hearing, another presiding officer may be assigned to continue with the case unless it is shown that substantial prejudice to the party will result therefrom.”
The rules promulgated pursuant to this authority appear at 1976 AASC R 257.131-257.137, and include provisions concerning contract and invoice terms, repair and parts replacement, warranties, advertising and representations, estimates and charges, and coercive practices.
The trial judge stated in his opinion:
"It is true that unfair and deceptive practices may be too numerous for the legislature to enumerate. This is evidenced by the four pages of definitions of unfair and deceptive practices contained in the rules as promulgated by the Secretary. However, there remains a question of whether there is an adequate standard to guide the Secretary in defining unfair and deceptive practices.
"The title of the Act indicates that its purpose is 'to proscribe unfair and deceptive practices.’ Little else is stated except that the Secretary may promulgate rules in this area. While a legislative intent may be gleened from a reading of the entire statute, the cases clearly indicate that there must be a reasonably precise standard. Such a standard is lacking here. The Court is of the opinion that there has been an unconstitutional delegation of legislative authority to the Secretary.”
" A standard cannot be considered 'as reasonably precise as the subject matter requires or permits’ if it does not satisfy due process requirements. See decision in State Highway Commission v Vanderkloot, 392 Mich 159, 169-178; 220 NW2d 416 (1974).
"8 See 1 Am Jur 2d, Administrative Law, § 117, p 924; 1 Sutherland Statutory Construction (4th ed, Sands), § 4.Í6, p 102.”
"Sec. 32. (1) A motor vehicle repair facility shall give to the customer a written estimate, itemizing as closely as possible the price for labor and parts necessary for a specific job prior to the commencement of work. A facility shall not charge for work done or parts supplied in excess of the estimated price or in excess of the limit stated by the customer in the waiver provided for in subsection (3) without the knowing written or oral consent of the customer which shall be obtained at some time after it is determined that the estimated price or stated limit is insufficient and before any work not estimated or in excess of the limit is done or the parts not estimated or in excess of the limit are supplied. If a waiver is not signed as provided in subsection (3) and the estimated price is exceeded by not more than 10% or $10.00 whichever is lesser, the written or oral consent of the customer for the excess charge need not be obtained unless specifically requested by the customer. This section shall not be construed as requiring a motor vehicle repair facility, mechanic, or mechanic trainee to give a written estimated price if he agrees not to perform the requested repair. If the actual cost of repair is less than the agreed upon estimated cost, the customer shall pay only the actual cost.
"(2) If the facility or mechanic informs the customer that the price for repair will exceed the written estimate or the stated limit in the waiver and the customer does not want the repair work performed then the customer is liable for all reasonable costs to return the vehicle to the condition it was when it entered the facility. These costs should be indicated in written form itemizing the costs as closely as possible with a copy given to the customer. The cost of a diagnosis to be made, whether or not the customer authorizes repairs to be performed, shall be contained in the written estimate before the diagnosis is undertaken.
"(3) If a customer initiates a request for service or parts for the repair of a motor vehicle without receiving a written estimate and voluntarily agrees to pay all reasonable costs of repair up to an amount stated by the customer, a repair facility may obtain from the customer a waiver of his right to receive a prior estimate of repair costs. The waiver shall be in 14 point or larger bold capital type face and executed with 1 copy to the customer requesting the repairs
After specifying the form of such waivers, the section provides:
"This waiver shall not be effective unless given by the customer voluntarily and with full knowledge of the implications of the waiver. A motor vehicle repair facility or anyone in its employ shall not make use of the waiver in an attempt to evade this act.” MCLA 257.1332; MSA 9.1720(32).
"Sec. 35. A resident agent, director, officer, or partner of a motor vehicle repair facility who knowingly authorizes, directs or makes a false statement or misrepresentation concerning the method or price of repair of a motor vehicle, or who knowingly fails to comply with the terms of a final cease and desist order is subject to penalties under this act. Each violation constitutes a separate offense.”
The rules define as unfair and deceptive, "A contract which has gross discrepancies between the oral representations of the facility and the written agreement covering the same transaction”, and provide that
"(2) It is an unfair and deceptive practice to:
"(a) Make, either written or orally, an untrue or misleading statement of a material fact.
(b) Fail to reveal a material fact, the omission of which tends to mislead or deceive the customer and which fact could not reasonably be known by the customer.
(d) Allow a customer to sign an acknowledgement, certificate, or other writing which affirms acceptance, delivery, compliance with a requirement of law, or other performance, if the facility knows or has reason to know that the statement is not true.” 1976 AACS R 257.131(l)(c), and (2)(a)(b) and (d).
Other rules detailing various types of misrepresentations as unfair and deceptive practices in connection with other provisions of the act include 1976 AACS R 257.132(c) and (f), 1976 AACS R 257.134 (Advertising and representations), and 1976 AACS R 257.137.
MCLA 257.1334; MSA 9.1720(34), which provides:
"Sec. 34. A motor vehicle repair facility, including a gasoline service station which performs any of the repairs listed in the repair categories of certification for specialty mechanics or developed by the administrator by rule, shall give to each customer a written statement upon return of the repaired vehicle to the customer. The statement shall disclose:
"(a) Repairs needed, as determined by the facility.
(b) Repairs requested by the customer.
(c) Repairs authorized by the customer.
(d) The facility’s estimate of repair costs.
(e) The actual cost of repairs.
(f) The repairs or services performed, including a detailed identification of all parts that were replaced and a specification as to which are new, used, rebuilt, or reconditioned.
(g) A certification that the repairs were completed properly or a detailed explanation of an inability to complete repairs properly. The statement shall be signed by the owner of the facility or by a person designated by the owner to represent the facility. The name of the mechanic or mechanics who performed the diagnosis and the repair shall also appear on the statement.”
Rules defining various types of noncompliance with § 34 of the act as unfair and deceptive practices include 1976 AACS R 257.131(2)(j)(i) through (vii), 1976 AACS R 257.132(a), (e), (0, and (h), and 1976 AACS R 257.136 (estimates and charges).
MCLA 257.1333; MSA 9.1720(33). 1976 AACS R 257.136(d) provides that "It is an unfair and deceptive practice to: * * * Fail to inform a customer, at a time prior to the customer executing a document or engaging the facility for the work, by the use of a notice as required by section 33 of the act, of his right to receive or inspect replaced parts for which he will be charged in the repair of his motor vehicle.”
Plaintiffs’ reliance on McKibbin v Corporation & Securities Commission, 369 Mich 69; 119 NW2d 557 (1963), is misplaced. Although that case involved the same statute upheld in Ranke, the question was whether the anti-discrimination rule adopted by the commission was within the scope of its legislatively delegated power. 369 Mich at 78, 81. McKibbin involved a challenge of a rule promulgated pursuant to the statute, whereas Ranke involved a challenge of the statute itself. Compare Argo Oil Corp v Atwood, supra, at 52.
The inflated estimate included a kickback for the adjuster and a charge for repairing non-existent damage, as well as a paint job for the entire car included to induce the owner of the car to go along with the scheme.
The trial judge reasoned as follows:
"Section 32, the section providing for estimates, is the target of the vagueness attack. As mentioned earlier that section provides that the facility shall give the customer a written estimate of the price for labor and parts for a specific job. It also provides that 'if the actual cost of repair is less than the agreed upon estimated cost, the customer shall pay only the actual cost.’ What meaning should be given to this statement?
"It would appear that the 'estimated cost’ refers to the written price estimate that must be given to the customer. The term 'actual cost of repair’ on its face would appear to mean the cost to the garageman for completing the repair. Therefore, the statement in question would mean that if the cost to the garageman to complete the repair is less than the estimated price then the customer pays only what it cost the garageman to complete the repair. The Defendant argues that such an interpretation would be absurd. The Plaintiff argues that such an interpretation would be a taking without due process in violation of the Fourteenth Amendment because it denies the garageman his profit.
"What then is the correct interpretation? The Defendant asserts that the term 'cost’ refers to the amount of money a customer will actually pay the facility for a given repair. Under the Defendant’s view, the actual cost of repair would be the amount the customer actually pays. Therefore, the statement in question would read: If the amount of money the customer actually pays is less than the agreed on estimated cost the customer shall pay only the amount the customer actually pays. Aside from making very little sense the statement provides no definitive guideline as to how the actual cost of repair is to be measured. While the Defendant seems to have no problem with the term 'actual cost of repair’ the garageman would be at a loss as to what the term means and how it is to be measured.
"Confusion is added by the Defendant’s assertion that 'if the actual work performed has a value or price or cost to the consumer less than that estimated, then the consumer should only pay that which is the lesser.’ While 'price’ may be included in the term 'cost’ where does 'value to the customer’ come in? Such a term is nebulous at best, and when inserted into the statute it is apparent that reasonable minds would have to guess as to its meaning. The garageman has no way of knowing what the value of the repair is to the consumer. If the consumer knows he will pay only the value of the repair he will obviously state that the repair is of little value.
"Based on the preceding discussion the Court can only conclude that the statement 'if the actual cost of repair is less than the agreed on estimated cost, the customer shall pay only the actual cost’ appearing in Section 32 of Public Act 300 is unconstitutionally vague.”
Webster’s Third New International Unabridged Dictionary (1964) defines "price” as "the quantity of one thing that is exchanged or demanded in barter or sale for another: a ratio at which commodities and services are exchanged”, or "the amount of money given or set as the amount to be given as a consideration for the sale of a specified thing”. "Cost” is defined as "the amount or equivalent paid or given or charged or engaged to be paid or given for anything bought or taken in barter or for service rendered: Charge, price”. (Emphasis added.) "Actual cost” is "cost based on the most factual allocation of historical cost factors” and "estimated cost” is "cost in cost accounting estimated in advance of production or construction”.
This is not to say that the repair facility cannot charge the consumer for the labor expended in determining that the part did not need replacement. Nor do we see anything in the act that would forbid a repair facility to compute its labor charges based on the "flat rate manual” compiled by automobile manufacturers for use in computing payments to dealers for repairs performed in fulfillment of the manufacturer’s warranty, so long as that method of computation is disclosed to the customer upon request. See 1976 AACS R 257.136(1). We do not perceive any legislative intent to penalize a repair facility for its efficiency, and it would seem to be in the manufacturers’ interest to ensure that such "flat rates” are reasona ble approximations of the time required for a normally skilled mechanic to perform the repair. On the other hand, if labor charges included in the estimated price are actual estimates of the time required ("judgment times”), rather than "flat rates”, as plaintiif Ramsay testified they sometimes are when the flat rate manual does not list a given operation, and the actual time it takes to perform the operation is less than the estimated time, the consumer is entitled to the benefit of this error in judgment, and under the act he may be charged only for the actual time it took to perform the operation.
"If a waiver is not signed as provided in subsection (3) and the estimated price is exceeded by not more than 10% or $10.00 whichever is lesser, the written or oral consent of the customer for the excess charge need not be obtained unless specifically requested by the customer.” MCLA 257.1332(1); MSA 9.1720(32)(1). | [
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J. H. Gillis, P. J.
In November, 1976, the voters of Kalamazoo County reelected defendant to the office of sheriff of said county. Defendant was to commence his second term of office on January 1, 1977. Prior to that date, defendant sent a letter to 11 deputies who had served under him during his prior term, informing them of the fact that they would not be reappointed when defendant began his second term of office. After receiving this notification, the 11 deputies and the Fraternal Order of Police, Lodge #98 commenced an action against defendant and Kalamazoo County, alleging that the discharge violated the provisions of the collective bargaining agreement executed between Kalamazoo County and Lodge #98. As a result of this suit, a restraining order with order to show cause was issued by the Kalamazoo County Circuit Court. Upon receipt of the restraining order, defendant, through his attorney, filed a motion to dissolve the order and objected to the jurisdiction of the court to entertain the matter. The motion was granted.
Plaintiff-deputies then filed another proposed restraining order with an order to show cause and the court issued a second restraining order against defendant on December 31, 1976.
Following the issuance of this order, defendant took no action and did not reappoint any of the plaintiffs. Defendant contended that plaintiffs’ terms of employment expired on December 31, 1976, and, therefore, his failure to act did not violate the terms of the restraining order.
On January 7, 1977, a hearing was conducted which resulted in the restraining order being continued as a preliminary injunction until the entire matter could be heard on the merits on January 14, 1977.
A pretrial hearing was conducted on January 11, 1977, at which time a petition of contempt was filed against defendant for alleged violation of the restraining order. The matter was referred by the presiding judge to the judge who issued the original restraining order. An informal hearing was conducted at the home of the latter judge, which resulted in defendant being ordered to appear the following morning in court to show cause why he should not be held in contempt of court.
At the hearing, defendant was found to be in contempt of the court’s restraining order of December 31, 1976, and was sentenced to 30 days in jail along with being fined $250. Defendant was further ordered to pay damages to Kalamazoo County for the wages paid to the plaintiffs during the period of January 1, 1977, to January 11, 1977. Execution of sentence was postponed pending appeal.
Defendant now appeals as of right from the order finding him in contempt of court.
Defendant first contends that the trial court erred in refusing to grant his motion for adjournment in respect to the contempt hearing since defendant’s attorney did not have sufficient time to prepare for the proceedings.
It is well established that when a contempt is committed outside the presence of the court, the law requires that defendant be advised of the charges against him, afforded a hearing upon those charges, and given a reasonable opportunity to meet the charges by defense or explanation. In re Henry, 32 Mich App 654; 189 NW2d 96 (1971). These minimal due process safeguards require that defendant be given a reasonable time in which to prepare a defense to the charges.
In determining what constitutes a reasonable time for preparation, it is necessary to view the notice requirements in the context of the entire situation. Cross Co v UAW Local No. 155, 377 Mich 202; 139 NW2d 694 (1966).
In respect to whether or not defendant had adequate time to prepare for the hearing, the trial court concluded:
"Now, what is a reasonable time in this case? Could the sheriff have anticipated that legal proceedings, would flow from the letters that he has alleged to have written, and which the court will assume for the purposes of the motion of adjournment to be true. [Letters to deputy sheriffs that they would not be reappointed.] Could he have reasonably expected that legal proceedings would flow from these letters?
"The court feels that he certainly should have anticipated that legal proceedings would result, and that he could have anticipated within rather narrow limits the course of conduct, and the path that the litigation would take, because the legal issues involved are well known.”
In denying defendant’s motion for adjournment, the court also placed heavy emphasis on the fact that there was a great public interest in seeing that the matter be quickly resolved.
However, the fact that defendant may have anticipated the legal proceedings in the instant case is no reason to deny defendant adequate time in which to prepare a defense to the charges. Also, while the trial court was correct in concluding that the public had an interest in seeing that the litigation be promptly resolved, the fact that a full hearing on the merits was scheduled for January 14, 1977, leads us to the conclusion that the matter could have been adjourned without interfering with any substantial public interest.
The time period from 5:30 p.m. on January 11, 1977, to 9:30 a.m. on January 12, 1977, was certainly not a reasonable time in which defendant could prepare his defense, especially in light of the fact that defendant claimed he was not in violation of the restraining order.
Accordingly, we find that defendant should have been given.hiore time to prepare for the contempt proceedings, and the failure of the trial court to grant additional time denied defendant due process of law.
It should also be noted that when defendant was ordered to show cause why he should not be found in contempt of court, he was not informed as to whether the contempt proceedings filed against him were civil or criminal in nature. This is particularly important in light of the procedural safeguards due a defendant in a criminal proceeding as well as the quantum of proof necessary to find defendant guilty. In a criminal contempt case it is necessary to find defendant guilty beyond a reasonable doubt. People v Randazzo, 21 Mich App 215; 175 NW2d 333 (1970).
The difference between civil and criminal contempt has been pointed out in Jaikins v Jaikins, 12 Mich App 115, 120; 162 NW2d 325 (1968). There it was held:
"Essentially, the difference between civil and criminal contempt is that the former seeks to change respon dent’s conduct by threatening him with a penalty if he does not change it, while the latter seeks to punish him for past misdoings which affront the dignity of the court. Criminal contempt being for past misconduct, there is no way for one so convicted to purge himself of the contempt.”
In the instant matter, none of the papers filed in or issued by the court informed defendant of the nature of the proceedings against him.
It should also be noted that the contempt hearing was noticed on the civil docket.
Under such circumstances, defendant could not be properly convicted of criminal contempt. See People v Johns, 384 Mich 325; 183 NW2d 216 (1971).
The other issues raised on appeal do not merit discussion by this Court.
Reversed. No costs, a public question being involved.
The Fraternal Order of Police, Lodge #98, represents the plaintiffs in contract negotiations with Kalamazoo County.
It appears that the county paid the wages of the plaintiffs between January 1, 1977, and January 11, 1977, believing that the restraining order required them to do so. The trial court held defendant liable for these wages since he prevented plaintiffs from working during this period.
We do not pass on the validity of awarding such damages in the case at bar, but urge the trial judge to review MCLA 600.1721; MSA 27A.1721. | [
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Per Curiam.
Plaintiff, Township of Gaines, appeals as of right from a judgment entered by the Genesee County Circuit Court on July 19, 1976. The judgment confirmed an arbitration award made pursuant to a contract executed between plaintiff and defendant, an engineering firm.
On June 12, 1969, the parties entered into a contract in which defendant was to supply engineering services for the construction of a sewer system plaintiff desired to build.
The contract provided that defendant 1) prepare a feasibility study for a lump sum payment of $1,000, 2) prepare construction plans and specifications, and 3) supervise construction and prepare drawings. Defendant was to be paid for the second and third phases of its work on the basis of a defined percentage of the construction costs of the project.
The contract also contained the following provisions:
"E. In case the final plans and specifications are completed and, for any reason, construction is not undertaken, fees will be based on the bid price of the lowest qualified bidder or if bids are not taken, on the ENGINEER’S final cost estimate.
"F. If any work is abandoned or suspended the ENGINEER shall be paid for services performed on account of it prior to receipt of written notice from the OWNER of such abandonment or suspension, together with any terminal expense and including a reasonable profit.
"C. Any controversy or claim arising out of or relating to this content [sic] or breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association and judgment upon the award rendered by the Arbitrator may be entered in any Court having jurisdiction thereof.”
The defendant worked on the project from 1969 until late in 1972. In September of 1972 the project was placed on the ballot for the people of Gaines Township to vote in a referendum. The referendum failed and all work on the project had to terminate.
Defendant then sent plaintiff a bill for services rendered and received no reply. Defendant continued to bill plaintiff with no success over the next three years.
On January 24, 1975, defendant instituted proceedings to settle the matter by arbitration, pursuant to article III of the contract. Plaintiff refused to submit to the arbitration proceedings claiming that the contract was void in that the township had no authority to enter into such an agreement.
The arbitration proceedings resulted in an award of $81,303 to the defendant. Defendant subsequently moved to confirm the award in circuit court pursuant to the terms of the contract.
The circuit court ruled that the plaintiff had entered into a valid contract with the defendant, and confirmed the arbitration award.
Plaintiff appeals contending that the contract is void in that the township had no authority to enter into such an agreement.
Several statutes have been enacted which empower a township to enter into a contract for the construction of a sewer system.
Plaintiff refers us to MCLA 46.171 et seq.; MSA 5.2767(1) et seq., claiming the contract was to be based on this legislation, and that the statutory requirements were not met. Hence, no valid contract exists between the parties.
However, MCLA 46.171 et seq.; MSA 5.2767(1) et seq. is not applicable to the case at bar. This statute deals with contracts between a county and another unit of government, (city, village, township), not with contracts between a unit of government and a private firm.
Defendant directs us to MCLA 141.101 et seq.; MSA 5.2731 et seq., which has been interpreted by the Supreme Court of this state to empower a township to enter into a contract for the construction of a sewer system.
"It was clearly the intention of the legislature to give townships the power and authority under the revenue bond act of 1933 to purchase, acquire, construct, improve, enlarge, extend, or repair a water supply system and a sewage disposal system, and to own, operate, and maintain the same, notwithstanding no bonds are issued in connection therewith.” Seltzer v Sterling Twp, 371 Mich 214, 219; 123 NW2d 722 (1963).
"Section 1 of Act No. 94, Pub. Acts 1933, as amended by Act No. 66, Pub. Acts 1935 (Stat Ann § 5.2731), authorizes townships and other municipalities to acquire or construct various public improvements including water supply systems. This act has been held constitutional. Young v City of Ann Arbor, 267 Mich 241 [255 NW 579 (1934)].
"Section 2 of the act (Stat Ann § 5.2732) provides: 'This act shall be construed as cumulative authority for the purposes named in section one * * * it being the purpose and intention of this act to create an additional and alternate method for the purposes herein named.’
"Sections 5, 6, and 7 of the act direct the manner in which self-liquidating bonds may be issued and give authority for the issuance of such bonds, if the township so elects.
"The title of the act is so worded as to give first to the municipalities, including townships, authority lto acquire or construct certain improvements (including water supply systems) and then, as an aid to carrying out such projects, the power to issue self-liquidating bonds. We can find nothing in the act which provides that only the money raised by such bond issue may be used to pay for such construction.
"With authority being given to acquire or construct a public project as defined in the act, it must necessarily follow that authority to pay for the project is at the same time granted. The issuance of self-liquidating bonds is authorized as one means of so making payment, but it is not made an exclusive means of obtaining funds for such payment.” Morley Brothers v Township of Carrollton, 305 Mich 285, 288-289; 9 NW2d 543 (1943).
Defendant contends that Gaines Township has the authority to enter into a contract for the construction of a sewer system under this act regardless of how the project is financed. The aforementioned cases clearly support such a conclusion.
Accordingly, we rule that plaintiff possessed the power and did in fact enter into a contract for engineering services in connection with the sewer system project.
Plaintiff next contends that the arbitration proceedings were invalid on the basis of several grounds.
Plaintiff first claims that the contract executed between the parties contained a common-law arbitration clause, and therefore either party could repudiate the arbitration proceedings at anytime.
Historically, common-law arbitration agreements could be revoked or repudiated at will by a party at any time prior to announcement of the award. Statutory arbitration is controlled by MCLA 600.5001 et seq.; MSA 27A.5001 et seq. and is irrevocable without consent of the other party, and "if either party neglects to appear before the arbitrators after due notice, the arbitrators may nevertheless proceed to hear and determine the matters submitted to them upon the evidence produced by the other party”. MCLA 600.5011; MSA 27A.5011.
This Court has held in EE Tripp Excavating Contractor, Inc v Jackson County, 60 Mich App 221; 230 NW2d 556 (1976), lv den, 394 Mich 834 (1975), that parties to a contract must clearly express their intent to invoke statutory arbitration in the contract.
To express this intent, the Tripp Court recommended the following language.
" 'Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrator(s) may be entered in any Court having jurisdiction thereof.’ ” Tripp, supra, at 241.
The language in the instant contract is virtually the same as the language set forth in the Tripp case, supra.
Consequently, we rule that the plaintiff did not possess the power to repudiate the arbitration agreement at will.
Plaintiff finally contends that the arbitrator exceeded his authority by including interest and attorney fees in the arbitration award.
Article II, § F of the contract called for payment for the engineering services "together with any terminal expense and including a reasonable profit”.
The arbitrator interpreted this language to in- elude interest and attorney fees. While this Court can find no authority for awarding attorney fees under the circumstances in the instant matter, we are precluded from questioning the nature of the relief granted on the basis that such relief would not or could not be granted by this Court.
GCR 1963, 769.9(1) provides:
"Upon application of a party, the court shall vacate an award where:
"(a) The award was procured by corruption, fraud or other undue means;
"(b) There was evident partiality by an arbitrator appointed as a neutral or corruption in any of the arbitrators or misconduct prejudicing the rights of any party;
"(c) The arbitrators exceeded their powers; or
"(d) The arbitrators refused to postpone the hearing upon sufficient cause being shown therefor or refused to hear evidence material to the controversy or otherwise so conducted the hearing as to prejudice substantially the rights of a party.
"But the fact that the relief was such that it could not or would not be granted by a court of law or equity is not ground for vacating or refusing to confírm the award.” (Emphasis supplied.)
It should also be noted that the plaintiff failed to file an application to vacate the arbitration award within the 20-day time period prescribed by the court rule. GCR 1963, 769.9(2).
Accordingly, we confirm the arbitrator’s award.
Affirmed. Costs to appellee.
Carlson, Hohloch, Mitchell and Piotrowski, Inc.
"Any controversy or claim arising out of or relating to this content [sic] or breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association and judgment upon the award rendered by the Arbitrator may be entered in any Court having jurisdiction thereof.”
MCLA 46.171 et seq.; MSA 5.2767(1) et seq., MCLA 141.101 et seq.; MSA 5.2731 et seq., MCLA 41.411 et seq.; MSA 5.2411 et seq., MCLA 41.721 et seq.; MSA 5.2770(51) et seq.
While E E Tripp Excavating Contractor, Inc v Jackson County, 60 Mich App 221; 230 NW2d 556 (1975), was.decided after the formation of the contract in the instant matter, the Revised Judicature Act, which has been in effect since January 1, 1963, prescribes nearly identical language for the parties to use when expressing their intent to invoke statutory arbitration. MCLA 600.5001; MSA 27A.5001. | [
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D. C. Riley, J.
The present appeal involves a challenge to the constitutionality of MCLA 600.5839(1); MSA 27A.5839(1), the statute of limitations applicable to suits against licensed architects and engineers arising from work done in connection with improvements to real property. A short recitation of the factual and procedural history of the cases is necessary prior to our discussion of the issue.
In 1964, Metro Town Houses, Inc. contracted with Dembs Building Company for construction of a townhouse complex in Mount Clemens, Michigan. Dembs in turn contracted the design of the drainage system for the townhouse buildings to Lehner Associates, Inc., a professional engineering firm.
In 1965, three of the townhouses were sold by Metro to plaintiffs Charlotte Muzar, Carrie Ledbetter, and Agatha Malinowski. All three of the townhouses were contained within the same building. State Farm Fire and Casualty Co. insured plaintiffs against damage, including collapse, to the common building.
On January 3, 1973, the building housing the plaintiffs’ townhouses collapsed, allegedly due to defects in the construction of the drainage system. In July, 1973, plaintiffs sued Metro and State Farm, jointly and severally, for breach of warranty. After Metro was discovered to be defunct, State Farm settled the plaintiffs’ suit for $40,000.
In December, 1975, State Farm brought a third-party complaint against Dembs, claiming that it was subrogated to the original plaintiffs’ right to seek recovery of the $40,000 from the construction company. In turn, Dembs filed a third-party action for indemnity against Lehner Associates, alleging that the collapse was caused by defective design of the drainage system.
Concurrent with these proceedings, the original plaintiffs instituted a separate lawsuit directly against Dembs, alleging a breach of warranty. Dembs again filed a third-party complaint for indemnity against Lehner.
On August 11, 1976, Lehner filed motions for accelerated judgment against Dembs in both suits, arguing that the actions were barred by MCLA 600.5839(1); MSA 27A.5839(1), since the building collapsed more than six years after completion of the work done by Lehner. In answer to the motion Dembs contended that the statute was unconstitutional as a violation of equal protection. On December 13, 1976, the trial court issued an opinion upholding the constitutionality of the statute and granting accelerated judgment to Lehner in both lawsuits. Dembs appealed the accelerated judgments to this Court, which has consolidated the matters due to the identity of the issues.
Appellant Dembs contends that the statute violates equal protection since it sets up a limited class (licensed architects and professional engineers) and exempts them from tort liability after a set time period without extending the same protec tions to other entities (contractors, materialmen, etc.) engaged in the construction industry and subject to related liabilities. Dembs argues that the statute arbitrarily discriminates between persons in the construction industry, claiming that none of the various justifications expressed in support of the legislation apply only to architects and engineers,
Lehner responds that the Legislature may validily limit the scope of the statute to a particular occupational class provided that there is a rational basis for the classification scheme. Lehner finds such a rational basis for this statute in the allegedly unique position of architects and engineers facing potential liability for work in connection with real property.
From the proceeding discussion it is evident that before the equal protection challenge can be reviewed and decided we must specify the standard by which we will judge the constitutionality of the statute. Under classic equal protection analysis the applicable standard depended on whether the legislation affected a "suspect” class or a fundamental right. If so, the reviewing court would apply a "strict scrutiny” test, which would require the state to show a compelling interest justifying the legislation. Manistee Bank & Trust Co v McGowan, 394 Mich 655; 232 NW2d 636 (1975). If the legislation did not affect a suspect class or fundamental right, the burden would be on the person challenging the statute to show that there was no reasonable or rational basis for the classifications at issue. Manistee Bank, supra. In the majority of cases it appeared that the choice of the test predetermined the result, since few pieces of discrimina tory legislation could withstand strict scrutiny, but some rational basis for a classification could be found.
In more recent cases many courts, apparently dissatisfied with the rigidity of the two-test approach, have adopted a third test as a middle-ground standard for equal protection challenges. In Manistee Bank, supra, the Michigan Supreme Court termed this test as the "fair-and-substantial-relation-to-the-obj ect-of-the-legislation” standard. Manistee Bank, supra at 670. The Court stated:
"A commentator writes that the California Supreme Court 'applied a somewhat redefined standard of equal protection — a standard requiring a "realistic”, rather than. merely a "legitimate”, state purpose which is substantially, rather than merely rationally, supported by the classification system set up by the legislature. * * * The Court in Brown [Brown v Merlo, 8 Cal 3d 855; 106 Cal Rptr 388; 506 P2d 212 (1973)] refused to attribute to the legislature a "theoretically 'conceivable’, but totally unrealistic, state purpose that might support this classification scheme” * * * ’. (Emphasis in original.) In short, the California Supreme Court approached its reviewing function in a manner Professor Gunther identifies as 'means scrutiny’ or 'equal protection bite without "strict scrutiny” ’.
"Whatever label is attached to the analysis ,* * * 'the governing rule is one of reason: The Equal Protection Clause, like the Due Process Clause, is a guaranty that controls the reasonableness of governmental action’. The classification must be a reasonable one, and it must bear a reasonable relation to the object of the legislation.” (Footnotes omitted.) Manistee Bank, supra at 670-671.
The Manistee Bank Court went on to state that the "reasonable relation to the object of the legislation” test should be applied where the statute creates an exception to a general rule and that exception is no longer experimental. 394 Mich at 671-672. The Court then applied the test to hold Michigan’s guest-passenger statute unconstitutional.
We believe that the Manistee Bank test should be applied in the case at bar. No argument has been, or reasonably can be, made that the statute affects a suspect class or fundamental right, thereby eliminating the "strict scrutiny” alternative. We believe further that the statute does not fit into the category of experimental legislation that would justify application of the lower standard of review provided by the "rational basis” test. Hence, we conclude that the proper test was set out in Manistee Bank, supra.
As we will discuss in the remainder of this opinion, numerous cases from other jurisdictions have dealt with equal protection challenges to statutes similar to Michigan’s. In the course of those cases, the gamut of justifications expressed in support of the statutes has been analyzed and reanalyzed.
"Where a classification scheme creates a discrete exception to a general rule and has been enforced for a sufficiently long period of time that all the rationales likely to be advanced in its support have been devel oped, a court should fully examine those rationales and determine whether they are sound.
"It is understandable that a court reviewing what may be 'experimental’ legislation would say, as did this Court in Naudzius, [Naudzius v Lahr, 253 Mich 216; 234 NW 581 (1931)] '[p]erhaps the legislature also had other reasons for the law’. Where, however, it can no longer be claimed that the legislation is experimental, where all possible rationales have been developed, a court should not dismiss a constitutional challenge on that hypothesis.” Manistee Bank, supra at 672.
Although we note that no previous cases have challenged Michigan’s law, we find that the cases construing similar statutes have removed this area of legislation from the experimental class, and thus call for application of the "reasonable relation to the object” standard.
Applying this standard, we hold that MCLA 600.5839(1); MSA 27A.5839(1) unconstitutionally violates equal protection in that it distinguishes between licensed architects and professional engineers on the one hand and other members of the construction industry on the other without a reasonable relation to the objects of the act. We find support for this conclusion in the review given by our sister states to their similar statutes.
In response to what had become a rising trend of lawsuits directed against members of the construction business resulting from allegedly defective or negligent work, a number of states passed laws seeking to limit the liability of these parties. See Comment, Limitation of Action Statutes for Architects and Builders — Blueprints for Non-action, 18 Catholic U L Rev 361 (1969). On review some of these statutes have been struck down on constitutional grounds.
In Skinner v Anderson, 38 Ill 2d 455; 231 NE2d 588 (1967), the Illinois Supreme Court found their statute to be unconstitutional because it singled out architects and contractors for protection not granted to similarly situated parties:
"The arbitrary quality of the statute clearly appears when we consider that architects and contractors are not the only persons whose negligence in the construction of a building or other improvement may cause damage to property or injury to persons. If, for example, four years after a building is completed a cornice should fall because the adhesive used was defective, the manufacturer of the adhesive is granted no immunity. And so it is with all others who furnish materials used in constructing the improvement. But if the cornice fell because of defective design or construction for which an architect or contractor was responsible, immunity is granted. It can not be said that the one event is more likely than the other to occur within four years after construction is completed.” 38 Ill 2d at 460; 231 NE2d at 591.
The Skinner Court held that in order for a legislative classification to be valid, it had to be "reasonably related to the legislative purpose”. Skinner, supra at 460.
Although the Skinner decision was founded on a specific section'hf the Illinois constitution, which forbids the state Legislature from granting any special or exclusive privileges, the analysis undertaken by the Skinner Court applies by analogy to a more general equal protection argument. This is especially so since the Skinner Court employed the "reasonably related to the purpose” test for challenges under the state constitutional provision.
The Hawaii Supreme Court reached a similar result in Fujioka v Kam, 55 Hawaii 7; 514 P2d 568 (1973). The Hawaii statute limited actions against "any registered and/or duly licensed person” who furnished services in the design, planning or construction of improvements to real property to those brought within ten years of completion of the work. In Fujioka, a plaintiff injured by the collapse of a supermarket roof sued the owners of the store, who in turn brought a third-party complaint against the engineer and general contractor who had constructed the roof. The third-party defendants successfully moved for summary judgment on the basis of the statute. The owners appealed, alleging a violation of equal protection.
The Fujioka Court, citing Skinner v Anderson, supra, held the statute unconstitutional:
"It is clear that the classification does not rest upon some reasonable consideration of differences (between the classes under the same circumstances), which have a fair and substantial relation to the object of the legislation. Nor is the classification founded upon a reasonable distinction or difference necessitated by state policy. A statute making such an unsupportable classification fails to meet the requirements of the equal protection guaranty.
"As we have said, the general requirement of the principle of 'the equal protection clause is that all persons shall be treated alike under like circumstances and conditions, both in privileges conferred and in the liabilities imposed.’ State v Johnston, 51 Haw 195, 202, 456 P.2d 805, 809 (1969).
"Here, it is clear that the statute calls for arbitrary and capricious discrimination and must therefore be declared an invidious discrimination violative of the equal protection guaranty.” 55 Hawaii at 12, 13; 514 P2d at 571, 572.
In Kallas Millwork Corp v Square D Co, 66 Wis 2d 382; 225 NW2d 454 (1975), the Supreme Court of Wisconsin, employing a "rational and reasonable justification for the classification” test for equal protection, struck down their statute limiting actions against "any person performing or furnishing the design, planning, supervision of construction or construction” of improvements to real property. Relying on Skinner, supra, and Fujioka, supra, the Court in Kallas Millwork stated:
"We find the rationale of Skinner and Fujioka persuasive and applicable to the interpretation of sec. 893.155, Stats., and the facts of this case. We adopt their position and conclude that the legislative classification that gives special protection to the protected group is unreasonable. While there are public policy reasons that might justify a limitations period that takes into consideration those who are engaged in the construction business, there appears no reason why only a very restricted class of those thus occupied is protected by the statute.
"As pointed out by Mr. Justice Schaeffer, it is ludicrous to permit a recovery against a manufacturer of a negligently formulated mortar or adhesive, but to deny a recovery against an architect who negligently designed a cornice or facade so that its fall was inevitable.” 66 Wis 2d at 392-393; 225 NW2d at 459.
While Skinner, Fujioka, and Kallas Millwork are certainly relevant to the present matter, they are not the only opinions on this subject. Other jurisdictions have upheld similar statutes against equal protection challenges. Not wishing to discuss at length our disagreements with those opinions, we quote with approval the language of Justice Heifernan in Kallas Millwork:
"The defendant also relies on Rosenberg v Town of North Bergen (1972), 61 N.J. 190, 293 A.2d 662, and Carter v Hartenstein (1970), 248 Ark. 1172, 455 S.W.2d 918. Those cases together with Yakima Fruit & Cold Storage Co. v. Central Heating & Plumbing Co. (1972), 81 Wash.2d 528, 503 P.2d 108, do indeed support the defendant’s contention that sec. 893.155, Stats., is constitutional. None of those three cases is persuasive. Each of them recites the truism that the legislature can make reasonable classifications of persons or things and accord different treatment to different classes. None of these cases, however, justify the special immunity accorded to the protected class but denied to others similarly situated. The cases relied upon, which fail to find statutes similar to sec. 893.155 unconstitutional, do not come to grips with the real problem presented — what factors distinguish the favored class so that it requires or deserves an immunity not accorded others who appear to be similarly situated.
"The cases relied upon by the defendant to sustain the constitutionality of sec. 893.155, Stats., are not persuasive, and we reject them.” 66 Wis 2d at 392-393; 225 NW2d at 460.
Applying the reasoning of the cited cases to Michigan’s statute, we reach the inescapable conclusion that the classification limited to "licensed architects and professional engineers” is arbitrary and without reasonable relation to the object of the legislation. Appellee has argued a number of justifications for the time limitations of the statute, including prevention of stále claims, the burdens of keeping records concerning work done many years in the past, the probabilities that defects in construction will not appear for long periods of time, and the lack of knowledge pos sessed by nonoccupiers of property as to alterations and/or lack of maintenance that may have contributed to or even caused the damages. Even if we agree that the statute is intended to remedy these potential problems, we remain unconvinced that any of these rationales support the classification made in the legislation. The difficulties faced by architects and engineers suddenly subject to liability for work done a significant time in the past are equally present when contractors, materialmen, etc. face similar liability. We concur with Justice Schaeffer in Skinner, supra, by noting the arbitrary nature of legislation which allows a defendant to be held liable without recourse of indemnity against a similarly situated person who may in fact have caused the injury.
In addition, Michigan’s statute is even more discriminatory than those struck down in Skinner, Fujioka, and Kallas Millwork. All of the statutes of these states included contractors, such as appellant Dembs, within the protection of their statute. While we might find some justification for the exclusion of persons in possession and control if we were squarely faced with that situation, we can conceive of no reasonable relationship to the object of this statute which allows for a distinction between contractors and materialmen on one hand and architects and engineers on the other. We hold that the grant of summary judgment in favor of appellee Lehner denied appellant Dembs equal protection of the law.
Having found the statute unconstitutional as a violation of equal protection, we. are not required to reach the remaining issues raised by Dembs. However, one issue bears discussion in the event the Legislature should attempt statutory revision.
Dembs argues that the statute violates due process in that it allows the limitation period to run before the cause of action accrues (i.e., before the damages occur). The statute, it is thus argued, eliminates a claim before it can be factually asserted.
It is essential to note, however, that the Legislature may abrogate a cause of action which has not vested. Grubaugh v City of St Johns, 384 Mich 165; 180 NW2d 778 (1970), Snow v Freeman, 55 Mich App 84; 222 NW2d 43 (1974). The method of accomplishing this purpose was discussed in Dyke v Richard, 390 Mich 739, 745-747; 213 NW2d 185 (1973):
"It is helpful to keep in mind the distinction between a statute which is intended to abrogate a common-law cause of action and a statute of limitation.
"A statute which expressly extinguishes a common-law right may be regarded as a proper exercise of legislative authority. For example, 1935 PA 127; MCLA 551.301; MSA 25.191, which abolished the common law cause of action for alienation of affections, criminal conversation, seduction and breach of contract to marry was held to be constitutional in Bean v McFarland, 280 Mich 19; 273 NW 332 (1937).
"Since '[i]t is of the essence of a law of limitation that it shall afford a reasonable time within which suit may be brought * * * ’, Price [v Hopkin, 13 Mich 318 (1865)] a statute which extinguishes the right to bring suit cannot be enforced as a law of limitation.”
If the Legislature chooses to re-enact a statute which bars claims based upon a construction or design defect in an improvement to real property which arises after a set period of time from the date the work was completed, the title of the act should clearly set forth the intent of the Legislature to abolish this right of suit, and not term the legislation to be a statute of limitations.
Reversed and remanded for reinstitution of the third-party complaints. No costs, a public question being involved.
The statute reads:
"No person may maintain any action to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained as a result of such injury against any state licensed architect or professional engineer performing or furnishing the design or supervision of construction of such improvement more than 6 years after the time of occupancy of the completed improvement, use or acceptance of such improvement. This limitation shall not apply to actions against any person in actual possession and control as owner, tenant or otherwise, of the improvement at the time the defective and unsafe condition of such improvement constitutes the proximate cause of the injury or damage for which the action is brought.”
GCR 1963, 116.1(5).
Manistee Bank & Trust Co v McGowan, 394 Mich 655, 669; 232 NW2d 636 (1975). See also Note, Developments in the Law: Equal Protection, 82 Harv L Rev 1065 (1969), and Gunther, Foreword: In Search of Evolving Doctrine on a Changing Court: A Model for a Newer Equal Protection, 86 Harv L Rev 1 (1972).
See Reed v Reed, 404 US 71; 92 S Ct 251; 30 L Ed 2d 225 (1971).
MCLA 257.401; MSA 9.2101.
For an example of a situation of where a legislative experiment is afforded a greater amount of judicial deference through use of the rational basis test, see the treatment of challenges to Michigan’s no-fault automobile insurance law in Shavers v Attorney General, 65 Mich App 355, 366-368; 237 NW2d 325 (1975), lv granted 396 Mich 869 (1976), and Schigur v Secretary of State, 73 Mich App 239, 248; 251 NW2d 567 (1977).
This trend was prompted by two factors: (1) abolition of the privity of contract requirement, and (2) rejection of the doctrine that liability ended when the work was accepted.
S.H.A. Const, art 4, § 22.
HRS §657-8.
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D. E. Holbrook, Jr., P. J.
This rear-end collision case resulted in a jury verdict of no cause of action. During the course of trial plaintiffs moved for a directed verdict, which motion was denied. Subsequent to the jury verdict plaintiffs moved for a new trial, which motion was also denied, and plaintiffs appeal. The facts necessary to resolve this dispute will be hereafter set forth where nécessary and applicable.
On appeal plaintiffs claim first, that the sudden emergency defense should not be extended to excuse violation of the brake equipment statute, MCLA 257.705; MSA 9.2405; second, that, if we do allow the sudden emergency defense to be available in brake failure cases, we should limit same to such situations where the defendant has presented clear and convincing evidence corroborating his claim; and, third, that the verdict of the jury was contrary to the great weight of the evidence. In answering appellant’s contentions, although not necessarily seriatim, we find ourselves compelled to turn to three Michigan cases.
In Zeni v Anderson, 397 Mich 117; 243 NW2d 270 (1976), the Supreme Court, speaking through Mr. Justice Williams, at 129 and 130 stated:
"In a growing number of states, the rule concerning the proper role of a penal statute in a civil action for damages is that violation of the statute which has been found to apply to a particular set of facts establishes only a prima facie case of negligence, a presumption which may be rebutted by a showing on the part of the party violating the statute of an adequate excuse under the facts and circumstances of the case. The excuses may not necessarily be applicable in a criminal action, since, in the absence of legislatively-mandated civil penalties, acceptance of the criminal statute itself as a standard of care in a civil action is purely discretionary. See Comment and Illustrations, 2 Restatement Torts, 2d, § 288A, pp 33-37.
"Michigan cases have in effect followed this rule.” (Emphasis supplied.)
At 143 Justice Williams continued:
"We have seen, therefore, that while some of our Michigan cases seem to present negligence per se as an unqualified rule, the fact of the matter is that there are a number of qualifications which make application of this rule not really a per se approach at all. Not only must the statutory purpose doctrine and the requirement of proximate cause be satisfied, but the alleged wrongdoer has an opportunity to come forward with evidence rebutting the presumption of negligence.
"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 Under of fact whether the party accused of violating the statute has established a legally sufficient excuse. If the finder of fact determines such an excuse exists, the appropriate standard of care then becomes that established by the common law. Such excuses shall include, but shall not be limited to, those suggested by the Restatement Torts, 2d, §228A, and shall be determined by the circumstances of each case.” (Emphasis supplied.)
In Szymborski v Slatina, 386 Mich 339; 192 NW2d 213 (1971), which was also a rear-end collision case, plaintiff claimed, among other things, that the trial court erred in its charge to the jury by failing to instruct them that the statutory presumption of negligence arising from a rear-end collision could only be overcome by clear, positive and credible evidence and further by failing to instruct the jury that the defendant had the burden of proof upon the question of "sudden emergency”. In resolving these claims of error the Court stated at 340 and 341:
"On the statutory presumption:
" 'Where, however, we are dealing with the rear-end presumption, it appears that the standard urged by the plaintiff is pertinent only to the issue of whether the presumption has been rebutted as a matter of law. Petrosky v Dziurman (1962), 367 Mich 539, 547. This standard is one for the judge. If the evidence is less than clear, positive and credible, ’’the question whether such presumption has been overcome should be settled —on proper instruction of course — in the jury room.” Petrosky v Dziurman, supra, 544, 545, citing Garrigan v LaSalle Coca-Cola Bottling Co. (1961), 362 Mich 262. The trial court did not err in refusing to instruct that the jury could find that the presumption was rebutted only upon clear, positive and credible evidence.’
"On sudden emergency:
"' ’’The doctrine of sudden emergency is a 'logical extension of the "reasonably prudent person” rule,’ and as such is not an affirmative defense. Baker v Alt (1965), 374 Mich 492, 496. As it was said in Baker, at p 496, the ’test to be applied is what that hypothetical, reasonably prudent person would have done under all the circumstances of the accident, whatever they were.’ ” (Emphasis supplied.) Since the ’’sudden emergency” rule is not an affirmative defense, it was not incumbent upon the defendant to establish by a preponderance of the evidence that an emergency existed nor was it error for the judge to refuse to so charge. ’ ” (Emphasis supplied.)
In Lucas v Carson, 38 Mich App 552, 557; 196 NW2d 819 (1972), then Judge, now Justice, Fitzgerald, speaking for the Court, in addressing the issue of what evidence is necessary to rebut the presumption of negligence arising from violation of a penal statute wrote as follows:
"The general rule appears to be that evidence required to rebut this presumption as a matter of law should be positive, unequivocal, strong, and credible. Krisher v Duff, 331 Mich 699 (1951); Petrosky v Dziurman, 367 Mich 539 (1962). In the case at bar, defendant driver contended that she was at all times driving in a reasonable and prudent manner.
"Although the issue presented here is a close one, the trial court was correct in its decision that there was sufficient evidence on the issue of reasonable care to present a factual consideration for the jury and to preclude a directed verdict for plaintiff as a matter of law. Although the statutory presumption of negligence was certainly not rebutted by defendants’ evidence as a matter of law, the trial court decided that there was sufficient evidence at least to generate a jury question regarding rebutting of the presumption.”
The foregoing standard was cited and adopted by the Supreme Court in Zeni v Anderson, supra at 133, 134, 135.
From the above cited cases we conclude that (1) a violation of a penal statute creates a prima facie case of negligence, a presumption which can be rebutted by affording the alleged wrongdoer an opportunity to come forward with evidence showing an adequate or legally sufficient excuse under the facts and circumstances of the case; (2) whether the party accused of violating the statute has established an adequate or legally sufficient excuse is a determination to be made by the finder of fact on proper instruction; (3) the test to be applied by the finder of fact is what a reasonable prudent person would have done under all the circumstances of the accident; (4) the clear, posi tive and credible test set forth in Szymborski, supra, the positive, unequivocal, strong and credible test adopted by Lucas, supra, and, as previously stated, approved of by the Supreme Court in Zeni v Anderson, supra at 133, 134, 135, and the clear and convincing test urged upon us by the plaintiffs in the instant case apply only to the question of whether the presumption of negligence for violation of a penal statute has been rebutted as a matter of law and do not control the issue of whether the facts in a particular case should be submitted for jury determination; (5) the "sudden emergency” doctrine is not an affirmative defense; and, (6) it is not incumbent upon the defendant to establish by a preponderance of the evidence that an emergency existed and therefore as to such issue defendant does not have the burden of proof.
Plaintiffs’ contention that the sudden emergency defense should not be extended to excuse violation of the brake equipment statute is without merit. When the brake equipment statute is read in conjunction with the defective equipment statute, MCLA 257.683; MSA 9.2383, it is apparent that violation of the brake equipment statute constitutes a misdemeanor thereby rendering same a penal statute. As such, a prima facie case of negligence is established subject to rebuttal by the wrongdoer coming forward with evidence showing an adequate or legally sufficient excuse. Zeni v Anderson, supra.
Plaintiffs’ second allegation, that if we extend the sudden emergency defense to excuse a violation of the brake equipment statute we should limit same to such situations where the defendant has presented clear and convincing evidence corroborating his claim, is equally without merit. From the above cited cases we have already con- eluded that the clear, positive and credible test set forth in Szymborski, supra, the positive, unequivocal, strong and credible test adopted by Lucas, supra, and Zeni, supra, and the clear and convincing test urged upon us by plaintiffs, in the instant case, applies only to whether the presumption of negligence for violation of a penal statute has been rebutted as a matter of law and does not control the issue of whether the facts in a particular case should be submitted for jury determination. If the evidence is less than clear, positive and credible the question of whether the presumption has been overcome should be settled on proper instruction— in the jury room. Szymborski, supra, and Lucas, supra. There the question to be decided is whether the alleged wrongdoer has come forward with evidence showing an adequate or legally sufficient excuse under the facts and circumstances of the case with the test to be applied, by the finder of fact, to be what a reasonable, prudent person would have done under all the circumstances of the accident. Zeni, supra, and Szymborski, supra.
With respect to plaintiffs’ final assertion of error, that the verdict of the jury was contrary to the great weight of the evidence, we turn to the above cited authority together with the facts as testified to by the defendant and investigating officer.
During the month of June of 1971 defendant was operating his 1965 Ford Galaxie in the City of Saginaw on the Holland Street Bridge at a speed of 20 to 25 miles per hour. As he reached the crest of the bridge and commenced his descent he noticed flashing lights which indicated that a train was approaching. He also noticed traffic stopped for the train. Knowing he would have to stop he applied his foot to the brake pedal. The pedal went straight to the floor. To avoid an accident defendant testified that he turned off his engine and attempted to apply his parking brake but to no avail. As a result he rear-ended the plaintiffs’ car which was stopped for the train. Defendant further testified he had never previously experienced any difficulty with his brakes and in fact that his brakes had worked three to four blocks earlier when he had experienced no previous brake line leaks or any indication of a soft pedal. He further testified that following the accident there was brake fluid on the highway, which testimony was contradicted by the investigating officer.
The investigating officer testified that he checked the brakes and that they did in fact go straight to the floor. Also he failed to observe any skid marks on the pavement. He further testified that he checked the master cylinder and wheel cylinders and that said systems had no brake fluid so as to enable same to function properly. He also testified that the braking system was not working properly to stop the vehicle.
Considering the foregoing evidence we hold there to have been sufficient evidence to go to the jury on the theory of sudden emergency and that the trial court properly denied plaintiffs’ motion for a directed verdict. Certainly the evidence in the instant case is equal to if not stronger than the testimony of the defendant in Lucas v Carson, supra, where defendant testified she was at all times driving in a reasonable and prudent manner.
As in Lucas the issue presented here is a close one. While the statutory presumption of negligence was certainly not rebutted by defendant’s evidence as a matter of law, the trial court correctly decided that there was sufficient evidence at least to generate a jury question regarding rebutting of the presumption of defendant’s negligence.
Contrary to the law the trial judge instructed the jury that the defendant had the burden of proof of his claim that he was confronted with a sudden emergency1 not of his own making and that he was not negligent in the occurence of the accident. In explaining what is meant by "burden of proof’ the court instructed the jury that the evidence must satisfy them that the proposition on which a party has the burden of proof has been established by a preponderance of the evidence. By so instructing the jury the trial judge placed on the defendant a higher degree of proof than required by the above cited cases. Hence, while the instruction was error the error inured to the plaintiffs’ benefit since the instructions given by the court not only are more than the law requires but are also more stringent than the test plaintiffs seek us to adopt.
Affirmed. Costs to appellee.
Allen, J., concurred. | [
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D. F. Walsh, J.
This is a consolidated appeal from summary judgments entered in favor of defendants Lester Johnson and Genesee Merchants Bank & Trust [hereinafter Bank]. GCR 1963, 117.2(3).
Plaintiffs brought separate causes of action on behalf of four minors injured by the explosion of a 55-gallon fuel drum. Liability was predicated on negligence and breach of warranty. The pertinent facts follow.
Defendant Garlock contracted with defendant Johnson to have the latter serve as auctioneer at a sale of Garlock’s farm tools, machinery, hardware and furniture, for which Johnson would receive 7-1/2 percent of the sales price.
In turn Johnson hired defendant Bank to provide clerking and cashiering services at the auction for which Johnson paid, out of his share, 2 percent of the sales price. The Bank had no contract with Garlock and exercised no control over the auctioneer, the goods being sold or the prices asked.
On the day of the auction (and through prior advertisement) Johnson disclosed that Garlock was the owner of the goods to be auctioned. No representations regarding the quality or fitness of the drums in question were made by Johnson or by the Bank.
Defendant Robb purchased the drums at the auction and took them to his farm. More than 2 years later the four minors were playing with a cigarette lighter near one of the drums when it exploded, injuring them.
Plaintiffs’ challenge to the summary judgment granted to defendants Johnson and Bank requires us to answer the following questions:
(1) Was there a genuine issue as to a material fact concerning defendant Johnson’s liability?
(2) Did defendant Johnson, the auctioneer, have a duty to inspect the drums and to warn defendant Robb of their dangerous propensities?
(3) Did defendant Bank have a duty to inspect the drums and to warn defendant Robb of their dangerous propensities?
(4) Was the Bank engaged in a joint venture with Johnson and Garlock so as to render it jointly and severally liable for their actions?
The first question concerns the existence of material factual issues. The affidavits and depositions offered in support of defendant Johnson’s motion for summary judgment established that he was hired as an auctioneer, that he did not inspect the drums and that he made no representations as to their quality or fitness. In their argument plaintiffs relied on those same documents and offered no other proofs.
The trial court was correct in finding the above facts undisputed. Whether summary judgment was proper turns on the resolution of the next issue.
"In negligence cases, even though there may be no dispute as to the quantitative or physical facts, summary judgment will almost always be inappropriate * * * unless on the undisputed physical facts a judge would say that a directed verdict would be required [because of the absence of a] negligence issue for the jury.” Durant v Stahlin, 375 Mich 628, 653; 135 NW2d 392 (1965) (Opinion of Souris, J.).
In negligence cases a duty may be defined as an obligation to which the law will give effect and recognition to conform to a particular standard of conduct toward another. Farwell v Keaton, 396 Mich 281; 240 NW2d 217 (1976). Essential to the determination of the existence of a duty is consideration of the reasonableness of the risk created by the defendant’s conduct. In that sense, duty is a policy question indistinguishable from the question of proximate cause. Moning v Alfono, 400 Mich 425; 254 NW2d 759 (1977), see, Prosser, Torts (4th ed), § 37, pp 206-207.
The reasonableness of the risk of harm whether analyzed in terms of duty, proximate cause or specific standard of care turns on how the utility of the defendant’s conduct is viewed in relation to the magnitude of the risk thereby created. Moning v Alfono, supra. In any case where there might be a reasonable difference of opinion regarding how that balance should be resolved, the question is for the jury, subject to instructions as to the legal conclusion to be drawn from its determination. Moning v Alfono, supra, Bonin v Gralewicz, 378 Mich 521; 146 NW2d 647 (1966).
However, a court may decide that the utility of the defendant’s conduct so overrides the degree of risk thereby created that juries will not be permitted to impose liability upon the defendant for the resultant harm. Moning v Alfono, supra, cf. Holloway v Martin Oil Service, Inc, 79 Mich App 475; 262 NW2d 858 (1977).
In the instant case plaintiffs ask us to recognize an auctioneer’s obligation to inspect all goods sold at a farm auction. We must determine whether, given the social utility of such auctions, the magnitude of risk of the auctioneer not inspecting the items for sale justifies the burden imposed by such an obligation.
Farm auctions serve both public and private interests. To the seller they provide an efficient and inexpensive means of liquidating personal property; for a. modest fee he may avail himself of the experience and expertise of the auctioneer in arranging and executing the sale of such property. The public benefits from the existence of a marketplace where a panoply of items can be purchased at low prices, thus facilitating the exchange of goods to the benefit of all concerned. The social value of such an arrangement is self-evident.
In determining the magnitude of risk we must assess the number of people likely to be injured due to discoverable dangerous conditions present in items purchased at farm auctions. In this regard we note that the vast majority of such items are not inherently dangerous. Also pertinent is the general recognition that farm auctioneers have no special expertise concerning the goods being sold ; their skill is in organizing and executing the auction itself. Consequently, rather than rely upon the auctioneer to assess the quality and fitness of the sale goods prospective purchasers themselves almost invariably inspect and make their own assessment. Furthermore, the awareness that used goods are being auctioned is likely to increase the buyer’s vigilance regarding the quality and fitness of the product.
Given the relatively small number of auctioned items containing discoverable dangerous conditions and the near certainty that the purchaser will inspect the goods before using them , we find an extremely low probability that an auctioneer’s failure to inspect sale items at a farm auction will result in bodily injury. Thus, the magnitude of risk is minimal.
On the other hand, the burden that would be imposed upon farm auctions by requiring inspection would be considerable. An auctioneer would have to become qualified to detect potentially dangerous conditions in a wide variety of goods or risk considerable liability each time he sold an item. Those who did not go out of business would certainly raise their rates to reflect the added expense and risk. Given the increasingly large awards in personal injury cases and the comparatively small amount of money realized by auctioneers for their labors we find that the detrimental impact upon farm auctions would be substantial.
In light of the foregoing considerations we conclude that all reasonable persons would agree that the risk created by an auctioneer’s failure to inspect the items to be sold at a farm auction is a reasonable risk. Therefore, defendant’s liability may not be predicated upon his failure to inspect the drums in question. The summary judgment in favor of defendant Johnson is therefore affirmed. Moning v Alfono, supra; Prosser, Torts (4th ed), § 45, p 290.
In their argument on the third question plaintiffs ask that we impose upon the Bank the duty discussed in the immediately preceding pages. Having rejected that argument for the auctioneer, we see even less reason to impose that duty on the Bank, whose participation in the sale, of the goods was limited to collecting the purchase money. We think it clear that the relationship of the Bank, acting as no more than clerk and cashier, to the purchasers at the auction was insufficient to require the Bank to inspect the sale items. Moning v Alfono, supra.
In their final argument plaintiffs attempt to attach liability to the Bank on the theory that it was a joint venturer in the auction with Garlock and Johnson. Their contention is devoid of merit.
The elements of a joint venture are:
(a) an agreement indicating an intention to undertake a joint venture;
(b) a joint undertaking of
(c) a single project for profit;
(d) a sharing of profits as well as losses;
(e) contribution of skills or property by the parties;
(f) community interest and control over the subject matter of the enterprise. Goodwin v S A Healy Co, 383 Mich 300; 174 NW2d 755 (1970), Hathaway v Porter Royalty Pool, Inc, 296 Mich 90; 295 NW 571 (1941).
In the instant case there was no evidence of an agreement between Garlock and the Bank, there was no provision for the mutual sharing of profits and losses and there was no evidence that the Bank exercised any control over the subject matter of the auction.
The summary judgment in favor of the Bank is affirmed.
Affirmed. Costs to appellees.
In a strict analytical sense duty is no more than the judicial recognition of a relationship between two parties upon which liability for negligence may be premised. It does not include the nature of the obligation (the general standard of care and the specific standard of care), but only its existence. Moning v Alfono, 400 Mich 425; 254 NW2d 759 (1977). However, as the text of this opinion shall illustrate, consideration of the defendant’s conduct is necessary, as a practical matter, to deciding whether to impose a duty upon him.
For a detailed statement of specific factors to be considered in this type of analysis see Moning v Alfono, supra; 2 Restatement Torts, 2d, §§ 292-293.
More precisely the question is how many of those injuries are attributable to the auctioneer’s failure to inspect. However, given the nature of the factors considered in the text, that additional analytical step is of little significance to our risk assessment.
This distinguishes farm auctions from those involving more specialized goods, e.g-, art auctions, in which a buyer may sometimes rely upon the auctioneer’s assessment of the quality and value of the product in deciding whether to purchase it.
We do not consider such inspection as an intervening independent event that would exculpate an otherwise liable auctioneer. Rather, we attach importance to the likelihood of these inspections because they significantly reduce the probability that dangerous conditions undiscovered by the auctioneer will actually result in bodily injury.
The complaint alleged that the defendant "knew or should have known” of the dangerous condition of the drums. The absence of an obligation to inspect disposes of the allegation that defendant Johnson "should have known” of the danger.
Although the question of Johnson’s liability premised on his actual knowledge of the danger raises an issue distinct from his duty to inspect, it does not alter our decision in this case. According to the affidavit and depositions in the record, Johnson’s knowledge was limited to the fact that the drums were fuel drums, and he so advised the purchasers. His sworn deposition avers that he never inspected the drums, and plaintiffs could point to no contrary evidence indicating that he had any knowledge of the presence of fuel in the drums.
By hypothesis, liability premised on actual knowledge requires proof of that element. The total absence of any such proof in this case would have justified a directed verdict for the defendant. Summary judgment was, therefore, proper. Durant v Stahlin, 375 Mich 628; 135 NW2d 392 (1965) (opinion of Souris, J.). | [
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Per Curiam.
Defendant pled guilty to embezzlement by an agent, in violation of MCL 750.174; MSA 28.371. This crime was committed during a period when defendant had escaped from furlough status for a previous embezzlement conviction. For this second crime, defendant was sentenced in Detroit Recorder’s Court for imprisonment for a term of from 6 to 10 years. Defendant appeals this conviction as of right.
The single issue raised by defendant’s appeal is a violation of the 180-day rule of MCL 780.131; MSA 28.969(1). Defendant’s claim is that the passage of over 200 days from his return to custody to his trial violated the 180-day rule and prevented the court from exercising jurisdiction, according to MCL 780.133; MSA 28.969(3). _
While People v Moore, 96 Mich App 754; 293 NW2d 700 (1980), held that the 180-day rule specifically applies to offenses committed during incarceration, we are convinced that People v Loney, 12 Mich App 288; 162 NW2d 832 (1968), and People v Ewing, 101 Mich App 51; 301 NW2d 8 (1980), represent the better view.
Where a person incarcerated in a penal institution is convicted and sentenced for committing a crime while incarcerated or during escape or an attempt to escape, the term of sentence imposed for a crime so committed shall commence at the expiration of the sentence which the person is serving. MCL 768.7a(1); MSA 28.1030(1)(1).
People v Loney, supra, expressed the opinion that the 180-day statute did not apply to the offenses committed while in prison, for which offenses mandatory consecutive sentences are to be served, reasoning:
" 'In formulating the statutory language, the legislature sought to protect those who face multiple charges against undue delay in trial when they are jailed in State prison while untried charges are still pending. The statute seeks to secure to those serving sentences in a State prison the enjoyment of the rule of law which in the absence of a statute otherwise providing, prohibits imposition of a sentence to commence upon completion or expiration of another sentence.’ People v Williams, 9 Mich App 676, 682 (1968), citing In re Carey, 372 Mich 378 (1964).
"The purpose of the statute is clear. It was intended to give the inmate, who had pending offenses not yet tried, an opportunity to have the sentences run concurrently consistent with the principle of law disfavoring accumulations of sentences. This purpose, however, does not apply in the instance of a new offense committed after imprisonment, nor where the statute, as in the case of an escape or attempted escape, sets up a mandatory consecutive sentence. The legislature was not concerning itself with the need for dispatch in the handling of a charge brought against an inmate for offenses committed while in prison.
"For the foregoing reasons, it is the opinion of this Court that the 180-day statute does not and was not intended to apply to offenses committed while in prison and for which offenses mandatory consecutive sentences are provided.” People v Loney, supra, 292-293.
The case of People v Hill, 402 Mich 272; 262 NW2d 641 (1978), is distinguishable because there the charges arose out of incidents which occurred prior to the defendant’s incarceration.
Furthermore, even if we were to assume for purposes of argument that People v Moore, supra, should be followed, we would not dismiss but would remand for an evidentiary hearing concerning the reason for the delay.
Affirmed.
While on furlough status, defendant resided in a "halfway house” and was subject to rules and regulations of the Department of Corrections. During this time, defendant was still considered a prisoner. See People v Mayes, 95 Mich App 188; 290 NW2d 119 (1980). See also People v Smith (On Rehearing), 89 Mich App 478; 280 NW2d 862 (1979).
MCL 780.131; MSA 28.969(1) provides:
"Whenever the department of corrections shall receive notice that there is pending in this state any untried warrant, indictment, information or complaint setting forth against any inmate of a penal institution of this state a criminal offense for which a prison sentence might be imposed upon conviction, such inmate shall be brought to trial within 180 days after the department of corrections shall cause to be delivered to the prosecuting attorney of the county in which such warrant, indictment, information or complaint is pending written notice of the place of imprisonment of such inmate and a request for final disposition of such warrant, indictment, information or complaint. The request shall be accompanied by a statement setting forth the term of commitment under which the prisoner is being held, the time already served, the time remaining to be served on the sentence, the amount of good time earned, the time of the parole eligibility of the prisoner and any decisions of the parole board relating to the prisoner. The written notice and statement provided herein shall be delivered by certified mail.”
MCL 780.133; MSA 28.969(3) provides:
"In the event that, within the time limitation set forth in section 1 of this act, action is not commenced on the matter for which request for disposition was made, no court of this state shall any longer have jurisdiction thereof, nor shall the untried warrant, indictment, information or complaint be of any further force or effect, and the court shall enter an order dismissing the same with prejudice.”
MCL 768.7a(1); MSA 28.1030(1)(1) provides:
"A person who is incarcerated in a penal or reformatory institution in this state, or who escapes from that institution, and who commits a crime during that incarceration or escape which is punishable by imprisonment in a penal or reformatory institution in this state shall, upon conviction thereof, be subject to sentence therefor in the manner provided by law for such crimes. The term of sentence imposed for the crime shall commence at the expiration of the term or terms of sentence which the person is serving or has become liable to serve in a penal or reformatory institution in this state.” | [
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Per Curiam.
Defendant Rodney Veal was charged with one count of delivery of heroin, MCL 333.7401(2)(a); MSA 14.15(7401)(2)(a). Defendant Murphy Lloyd was charged with one count of knowingly or intentionally possessing heroin, MCL 333.7403(1); MSA 14.15(7403)(1)._
During the preliminary examination the magistrate dismissed the charges against both defendants for want of probable cause to arrest and because of the illegality of the subsequent search. The people filed a complaint for an order of superintending control to vacate the magistrate’s dismissal of the case. Judge Richard D. Dunn denied the people’s request and dismissed the complaint for superintending control. The people appeal as a matter of right pursuant to GCR 1963, 806.1, alleging that the magistrate abused her discretion by failing to bind the defendants over for trial.
At the preliminary examination, the people are required to show that a crime has been committed and, if so, that there is probable cause to believe the defendant committed it. People v Duncan, 388 Mich 489, 499; 201 NW2d 629 (1972). People v Charles D Walker, 385 Mich 565; 189 NW2d 234 (1971).
It is the duty of the magistrate to bind the defendant over for trial if it appears at the conclusion of the preliminary examination that a felony has been committed and there is probable cause to believe that the defendant committed it. People v Doss, 406 Mich 90; 276 NW2d 9 (1979).
The sufficiency of the evidence produced at a preliminary examination was discussed in People v Oster, 67 Mich App 490, 495; 241 NW2d 260 (1976), wherein a panel of this Court stated:
"It is axiomatic that at the preliminary examination the prosecutor must show that the offense charged has been committed. While positive proof of guilt is not required, People v Martinovich, 18 Mich App 253, 257; 170 NW2d 899 (1969), there must be evidence on each element of the crime charged or evidence from which those elements may be inferred * * * People v Juniel, 62 Mich App 529, 536; 233 NW2d 635 (1975).”
In reviewing the decision of the magistrate, a superintending court does not substitute its judgment or discretion for that of the magistrate. It examines the record to determine whether there was an abuse of discretion amounting to a failure to perform a clear legal duty. If such is the case, the superintending court orders the magistrate to perform his or her duty. The denial of an order of superintending control is within the discretion of the trial court and, absent an abuse of discretion, will not be disturbed by this Court on appeal. Attorney General v Recorder’s Court Judge, 92 Mich App 42; 285 NW2d 53 (1979).
At the preliminary examination, police officer Kevin Green, assigned to the narcotics section for approximately two years, testified that at about noon on January 8, 1979, he and his partners were in plain clothes and on routine patrol in an unmarked car in the area of Beaubien and Alfred. They had been assigned to patrol this area because it was a district known to have a high incidence of narcotics traffic. While driving south on Beaubien, Officer Green, from approximately 20 feet away, saw Lloyd hand Veal a quantity of money and receive from Veal a 2" x 2" opaque coin envelope. Lloyd placed this envelope in his pocket and started to cross the street.
After observing this exchange, Officer Green stopped his car, approached Lloyd, made an arrest, removed the coin envelope from his person, opened it and found an off-white powder which he believed to be heroin. Officer Green then told his fellow officers to arrest Veal. For the purpose of the preliminary examination the prosecutor and defense counsel stipulated that the coin envelope contained 0.9 grams of powder containing heroin.
The people contend that an arresting officer’s suspicion that illegal activity is taking place may be elevated to the level of probable cause when: (1) the arresting officer observes the defendants exchange currency for a coin envelope and (2) the officer knows from prior experience that illicit drug transfers are accomplished in such a manner.
In People v Falconer, 76 Mich App 367; 256 NW2d 597 (1977), the arresting officer was on duty "on observation for narcotics activity” when on two occasions he saw unknown males walk up to the defendant and hand him money. Both times the defendant walked to a car, unlocked the passenger door and removed a manila coin envelope from the car. After this occurred a third time, the officer arrested the defendant and searched him. When the search produced neither a weapon nor contraband, the officer removed a key from the defendant’s pocket, unlocked the car door and seized a bag containing heroin. A panel of this Court upheld the lower court’s dismissal of the case, stating that probable cause either for the arrest of the defendant or for the search of the car did not exist since "[t]he sole ground of the arrest and search was the officer’s suspicion that the manila coin envelopes contained narcotics”. Id., 369. (Emphasis added.)
In finding the search and subsequent seizure of the coin envelopes unlawful the Falconer Court pointed out:
"There was no testimony that the officer was in possession of any information from any source linking the defendant, any of the persons who approached the defendant, the car, or the locality, with prior narcotics involvement.” Id.
Presumably, testimony establishing one or more of the above circumstances would have elevated the officer’s suspicion to probable cause for the arrest of defendant and the subsequent search of defendant’s car.
In the instant case the surveillance took place in what was known as an area in which frequent and numerous narcotics transactions occurred. Moreover, the arresting officer had prior experience in narcotics law enforcement and thus was very much aware of the customary manner of packaging and transporting heroin. In fact, Officer Green testified that in the past he had observed that similar envelopes contained heroin.
The importance of such experience and the vital role which the magistrate should allow it to play when the evidence is examined to determine whether probable cause exists is illustrated by People v Ridgeway, 74 Mich App 306, 314; 253 NW2d 743 (1977):
"We now consider the strongest support for a finding of probable cause, viz., the officer’s knowledge that tinfoil packets like the one on the floor of the car often contain narcotics. Given the officer’s experience in narcotics law enforcement, his suspicion that the packet contained some controlled substance must be respected. The question is extremely close, but we believe that the officer did have probable cause to believe that the packet contained a controlled substance.
"Given that the seizure and search were proper, the officer obviously had probable cause to make a warrant-less arrest for possession of a controlled substance.” (Emphasis added.)
We find that the arresting officer’s observations of the two defendants, his duties as a narcotics officer, his experience and knowledge of the common use of coin envelopes in drug trafficking, his personal observation of the actual delivery and exchange of currency, and the fact that this inci dent occurred in an area known for its high narcotics activity, were clearly sufficient to support a finding of probable cause. Thus the examining magistrate abused her discretion in failing to bind defendants over as charged.
Reversed and remanded for trial. | [
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Danhof, C.J.
Defendant, Harold Freeland, and his wife, Pamela Jane Freeland, were charged with larceny in a building, contrary to MCL 750.360; MSA 28.592, as a result of their alleged theft of a tent from a K-Mart store. Defendant’s wife pled guilty and was sentenced to two years probation. Defendant was convicted by a jury of the charged offense and also pled guilty as a third felony offender under the habitual offender statute, MCL 769.11; MSA 28.1083. He was sentenced to a prison term of from five to eight years and appeals as of right.
Defendant first claims the evidence was insufficient to support his conviction. The record reveals that defendant and his wife entered the store on August 5, 1977, bringing along a toy wagon containing a sleeping bag and their infant son. Their activities in the store were observed by security personnel. They entered the sporting goods department, where defendant picked up a box containing a folded tent and left that department with defendant’s wife carrying the tent while he pulled the wagon. Next, they entered the record department and were out of sight of the observing employees. When they emerged, the tent had disappeared and the sleeping bag in the wagon had been rearranged. The family left the store and were stopped by security personnel in the parking lot. The tent was discovered concealed under the sleeping bag in the wagon.
In reviewing a claim of insufficient evidence, the evidence is viewed in a light most favorable to the prosecution. In proceedings below, the prosecutor was required to introduce some competent direct or circumstantial evidence as to each element of the crime charged so as to support the jury’s finding of guilt beyond a reasonable doubt. People v Gibson, 94 Mich App 172; 288 NW2d 366 (1979). The defense theory in the present case was that defendant’s wife concealed the tent under the sleeping bag without his knowledge. We believe the jury could easily find otherwise based on the evidence presented. See People v David Thomas, 407 Mich 936; 285 NW2d 658 (1979). The evidence was sufficient to support defendant’s conviction.
Next, defendant argues that the trial court erred in refusing to give Michigan Criminal Jury Instruction 3:1:10(7) which states:
"If the evidence is open to two reasonable constructions, one indicating guilt and the other innocence, it is your duty to accept the construction indicating innocence.”
We disagree. The case against defendant was based on circumstantial evidence, since there were no witnesses to the actual concealment of the tent in the wagon, and proper jury instructions on the use of such evidence were given. The disputed instruction was properly omitted because the construction of the evidence favoring defendant’s theory of innocence was not reasonable in comparison with the construction favoring guilt. It strains logic to believe that defendant’s wife could have concealed the tent without his knowledge under the circumstances. General use of this instruction in cases involving circumstantial evidence would make it extremely difficult to obtain convictions. See, People v Edgar, 75 Mich App 467; 255 NW2d 648 (1977). We believe its use is properly confined to cases where, unlike the present case, the circumstantial evidence against a defendant is weak.
The third issue raised by defendant concerns the prosecution’s use of evidence of his wife’s silence to impeach her testimony that she acted without defendant’s knowledge. During cross-examination, the prosecutor questioned Mrs. Freeland about her failure to inform the police that her husband was innocent. Police Officer Melvin Hartman, called in rebuttal by the prosecutor, testified that on August 19, 1978, he read Mrs. Freeland her Miranda rights and asked to interview her whereupon she replied that she had nothing to say. In closing argument, the prosecutor argued that Mrs. Free-land’s silence prior to trial cast doubt upon her testimony that her husband was innocent.
Defendant claims that the evidence of Mrs. Free-land’s silence was irrelevant and improperly admitted. Silence of an accused at the time of arrest is the exercise of a constitutional right and cannot be used as evidence against the accused. People v Bobo, 390 Mich 355; 212 NW2d 190 (1973). In Bobo, the Supreme Court stated that nonutterances are not statements and that a witness’s failure to make a statement could be shown only to contradict the witness’s assertion that he did make a statement. However, the Court was addressing a situation where the witness was the defendant and the use of his silence for impeachment restricted the exercise of his constitutional right to remain silent in the face of accusation. The present case differs because the use of Mrs. Freeland’s silence to impeach her testimony that she acted alone in no way restricted her right to remain silent. She had already pled guilty to larceny in a building at the time of trial and the evidence of her silence had no bearing on her own guilt.
The credibility of a witness may be attacked by showing that he failed to speak or act when it would have been natural to do so if the facts were in accordance with his testimony. People v McClow, 40 Mich App 185; 198 NW2d 707 (1972). In McClow, the defendant argued that the trial judge erred in allowing the prosecution to cross-examine an alibi witness on his failure to come forward with the alibi prior to trial and emphasize such failure during closing argument as bearing on the witness’s credibility. This Court disagreed. We find McClow persuasive and hold that use of Mrs. Freeland’s silence to impeach her credibility was not improper.
Defendant next raises a number of issues relating to failure of the prosecution to produce indorsed res gestae witness Timothy Rosencrants at trial. K-Mart’s security manager Dan Ady testified that he and Rosencrants observed the Freelands’ activities in the store and that Rosencrants went out on the floor of the store when the suspects were lost from view in the record department. Ady’s testimony also indicated that Rosencrants assisted in apprehending the suspects and marking the evidence. On the first day of trial, following Ady’s testimony, the jury was excused and the prosecutor stated that Rosencrants, who was indorsed on the information as a res gestae witness, would not be produced. Defense counsel requested a showing of due diligence and the prosecutor called Detective James Muma of the Jackson Police Department. Muma stated that on April 13, 1978, he learned that Rosencrants had moved from his known address and then detailed his unsuccessful efforts to locate this witness. Muma claimed that two days before the trial he learned that Rosencrants was living in Tampa, Florida. He stated that on the morning of the first day of trial, he obtained the witness’s telephone number and turned it over to the prosecutor. The prosecutor himself then took the stand and stated that he had spoken to the witness on the telephone that day and requested his presence whereupon Rosencrants replied that he would not voluntarily attend the trial. The court found that the prosecution had exericsed due diligence in attempting to produce the witness, but, at defense counsel’s request, agreed to submit the question to the jury. The jury was recalled and Muma and the prosecutor again testified regarding their efforts to locate and produce the witness.
The prosecution has the duty to indorse all res gestae witnesses on the information and produce them at trial. MCL 767.40; MSA 28.980, People v Harrison, 44 Mich App 578; 205 NW2d 900 (1973). If the prosecution is unable to produce an indorsed res gestae witness at trial, it is excused from the requirement if it exercised due diligence in attempting to produce the witness. See, People v Willie Pearson, 404 Mich 698; 273 NW2d 856 (1979). In the present case, defendant argues that the finding of due diligence was precluded by the prosecutor’s failure to utilize the statutory procedures for securing the presence of out-of-state witnesses, MCL 767.91 et seq.; MSA 28.1023(191) et seq. In People v Serra, 301 Mich 124, 131; 3 NW2d 35 (1942), the Supreme Court rejected an identical claim, stating:
"The Michigan law does not make it mandatory that the prosecution apply to the court in another State for process to compel return of a witness to this State. The procedure is optional with either the prosecution or the defense. In the case at bar, the defendants had full knowledge, and equal opportunity. The showing of diligence was sufficient to excuse the people from the requirement to produce Briggs as a witness. The prosecutor is not required to resort to the procedure referred to in this statute.”
Standing in defendant’s favor is a line of decisions of this Court beginning with People v Nieto, 33 Mich App 535; 190 NW2d 579 (1971), which states that Serra is no longer valid due to the increased cooperation between the states in the area of production of out-of-state witnesses in criminal proceedings. However, we acknowledge that the portion of the Serra rationale quoted above remains viable.
In People v Gaffney, 51 Mich App 526, 531; 215 NW2d 587 (1974), lv den 392 Mich 806 (1974), the Court again addressed the instant question and prefaced its holding with the statement that it was devoid of rulemaking power to deal with the problem and by indicating that the decision would only bind trial courts until the Supreme Court overruled it or another Court of Appeals panel took a contrary position on the issue. The Court then stated:
"We here hold that where an indorsed res gestae witness is without this state and the prosecution knows what court of record, if any, in the involved state has jurisdiction to compel attendance, it is the obligation of the prosecution to present to a judge of that court process comporting in form and in substance with the requirements of the uniform statute.
"If the information as to the location of the witness comes to the prosecution too late to institute proceedings and obtain a judicial determination before the time set for trial it is the further burden of the prosecution to move for an adjournment on this ground, which should be granted by the trial judge of right.
"All of the foregoing is, of course, subject to the right of the defendant to waive on the record the necessity of the production or attempt to produce the witness. In that event the trial will go forward as scheduled and error may not be assigned for lack of due diligence. We hold the foregoing requirements to be effective as of the date of the release of this opinion.”
Serra was distinguished on the grounds that it was decided at a time when fewer states had enacted a uniform statute dealing with the procurement of witnesses and that the constitutionality of the uniform statute was being challenged in several states when that case was decided. Other cases in accord with Gaffney include People v Harrison, 44 Mich App 578; 205 NW2d 900 (1973), People v Kimble (After Remand), 64 Mich App 484; 236 NW2d 109 (1975), and People v Biondo, 89 Mich App 96; 279 NW2d 330 (1979).
In the present case, the location of the missing witness was determined only two days before the trial and contact with the witness was made on the first day of trial. We follow Gaffney and hold that the finding of due diligence was erroneous. The prosecution was required to move for an adjournment and attempt to secure the attendance of the witness through the statutory procedure. However, the error does not automatically entitle defendant to a new trial. In Willie Pearson, supra, the Supreme Court held that in a case where the lower court’s finding that the prosecution exercised due diligence in attempting to produce a res gestae witness is overturned on appeal, the defendant’s right to a new trial should be conditioned upon the prosecutor’s right to establish a lack of prejudice. Defendant argues that the prosecution should not be allowed to demonstrate lack of prejudice because of misconduct committed in the proceedings below. Based on the lack of any objection below and the absence of manifest injustice, we find that the misconduct issues were not properly preserved for appeal. People v Stinson, 88 Mich App 672; 278 NW2d 715 (1979). For the same reason, we find that the issue regarding the propriety of the trial court’s res gestae instruction is not properly before this Court.
Defendant’s final argument is that the prosecution abused its discretion in charging him with the felony of larceny in a building instead of the misdemeanor of simple larceny under $100, MCL 750.356; MSA 28.588. This Court is split on the issue. Compare, People v Carmichael, 86 Mich App 418; 272 NW2d 667 (1978), lv den 406 Mich 949 (1979), with People v Evans, 94 Mich App 4; 287 NW2d 608 (1979). We follow the majority in Evans and hold that both statutes were applicable and the prosecution had the discretion to choose between them in charging defendant. There was no abuse of discretion.
Based on the error on the res gestae issue and Willie Pearson, supra, we hold that the prosecutor has 30 days from the release date of this opinion to seek a hearing to determine whether defendant suffered prejudice as a result of its failure to produce the missing res gestae witness. This Court retains jurisdiction to review the hearing record upon application of either party within 30 days of the entry of the judge’s order. If the prosecutor fails to seek a post-remand hearing within 30 days, defendant’s conviction shall be deemed vacated and the prosecutor may commence a new trial.
M. J. Kelly, J., concurred.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966).
MCL 767.93(1); MSA 28.1023(193)(1) states:
"If a person in a state, which by law provides for commanding persons within its borders to attend and testify in criminal prosecutions, or grand jury investigations commenced or about to commence, in this state, is a material witness in a prosecution pending in a court of record in this state, or in a grand jury investigation which has commenced or is about to commence, a judge of the court may issue a certificate under the seal of the court stating these facts and specifying the number of days the witness will be required. The certificate may include a recommendation that the witness be taken into immediate custody and delivered to an officer of this state to assure his attendance in this state. This certificate shall be presented to a judge of a court of record in the county in which the witness is found.” | [
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Per Curiam.
Defendant, City of Dearborn, appeals from an order of April 16, 1980, denying its motion for new trial and affirming an earlier order of declaratory judgment entered on June 4, 1979, in the Wayne County Circuit Court which held that plaintiff, Mark L. Saunders, was a permanent, not a probationary, employee at the time of the termination of his employment with defendant’s police department. Defendant was also ordered to reinstate plaintiff as a permanent employee.
Plaintiff was hired by defendant as a police officer on August 3, 1976. At that time, a certain collective bargaining agreement, having a termination date of June 30, 1978, was in effect. Appended to this agreement was a civil service rule promulgated by defendant’s civil service commission providing that a newly hired police officer must serve a probationary period which could not exceed 24 months. The civil service rules were incorporated into the agreement. The civil service rule provided that one terminated during his period of probation would have no right of appeal. The contract itself provided that an employee who was discharged for cause (apparently only applicable to permanent employees) had the right to choose one of three appellate remedies: (1) an appeal to the civil service commission; (2) use of the contractual grievance procedure; or (3) use of any remedy available by statute to veterans.
By letter dated July 6, 1978, plaintiff was notified by John T. Connolly, defendants chief of police, that effective July 11, 1978, plaintiff would be terminated as a probationary employee. At that time, plaintiff had served over 23 months of his probationary period.
At the time plaintiff received notice of his termination as a probationary employee, he was not entitled to an appeal under the contract. However, as a veteran, plaintiff was afforded a veteran’s preference hearing by operation of law. See the veteran’s preferred employment act, MCL 35.401 et seq.; MSA 4.1221 et seq.
On January 19, 1979, plaintiff was informed by Dearborn’s mayor that, after reviewing the transcript of the veteran’s preference hearing, he was sustaining plaintiff’s termination. See MCL 35.402; MSA 4.1222.
In February of 1979, plaintiff learned of a new collective bargaining agreement which had been entered into between defendant and the Dearborn Police Officers Association. Appended to this contract was a civil service rule providing that an officer’s probationary period could not exceed 18 months. This agreement stated that its provisions would become effective as of July 1, 1978. As defendant was notified that his termination would be effective July 11, 1978, it would appear that the new contract had taken effect by that date. Defendant, however, contends that because the new contract had not been approved by the City Council, it had, despite the July 1 date contained therein, not truly "taken effect”.
By letter dated February 28, 1979, plaintiff’s counsel requested a rehearing on plaintiff’s discharge stating that, by virtue of the latter collective bargaining agreement, plaintiff was a permanent employee as of the date of his termination because he had served a probationary period in excess of 18 months. Defendant did not respond to plaintiff’s request.
Plaintiff filed his complaint for declaratory judgment on April 12, 1979. At the hearing on the declaratory judgment, plaintiff argued that the latter contract was in effect at the time of plaintiff’s discharge, that plaintiff was, therefore, not a probationary employee at that time and that plaintiff was entitled to be given the rights of a permanent employee under the latter agreement. Defendant argued that the particular provision of the contract upon which plaintiff relied was not intended to apply to him. Defendant also argued that there was at least an ambiguity as to what was intended by the drafters of the agreement when they provided that the agreement would be effective as of July 1, 1978. Defendant sought to present testimony on that matter.
The court ruled that plaintiff was a permanent employee as of July 1, 1978. An order was entered on June 4, 1979, declaring plaintiff to have been a permanent employee at the time of his discharge, ordering defendant to reinstate plaintiff in that position and further ordering defendant to give plaintiff those rights to which he would be entitled under the latter agreement.
Defendant subsequently made a motion for new trial. At that time, defendant argued that plaintiff had failed to exhaust his administrative remedies and also sought to admit affidavits from certain persons involved in the negotiations of the latter agreement stating that the provisions concerning the probationary period were not intended to apply to someone in plaintiff’s position. The court did not rule either in favor of or against the admissibility of those affidavits. The court indicated that the instant action was a proper subject for declaratory judgment but indicated that it wanted to consider further the argument that the latter contract was not intended to apply to plaintiff. With that comment, the hearing was concluded. On March 25, 1980, the court issued an opinion, the totality of which was as follows:
"The defendant, City of Dearborn, et al., has filed and argued a motion for a new trial. Legal memoranda were submitted also.
"The court has considered all the issues raised, and it is the opinion of the court that the motion for new trial should be and is hereby denied.
"An order may be presented.”
An order was entered on April 16, 1980, denying defendant’s motion for new trial and affirming the court’s previous order.
On appeal, defendant first argues that plaintiff failed to exhaust his administrative remedies by neglecting to submit his dispute concerning the interpretation of the collective bargaining agreement to the Michigan Employment Relations Commission, and, therefore, the declaratory judgment action was improper.
Defendant states that a declaratory judgment action cannot be maintained to resolve disputes within the exclusive jurisdiction of an administrative agency and that the Michigan public employment relations act (PERA), MCL 423.201 et seq.; MSA 17.455(1) et seq., is the dominant law regarding public employee labor relations. Defendant further argues that the instant case is also governed by the police and fireman’s compulsory arbitration act, MCL 423.231 et seq.; MSA 17.455(31) et seq. (hereinafter referred to as the arbitration act). Because it alleges that exclusive jurisdiction rested in the appropriate administrative agency, defendant argues that the trial court improperly exercised jurisdiction. In support of its position defendant cites Local 1325, Council No 55, AFSCME v McKervey, 62 Mich App 689; 233 NW2d 836 (1975). In McKervey, this Court interpreted the arbitration act to be in pari materia with PERA. This Court noted that § 7 of PERA allowed mediation of individual grievances and, thus, concluded that individual contractual disputes could properly be brought under the arbitration act.
Subsequent to the Court of Appeals decision in McKervey, but prior to the period of time in which the incidents giving rise to the instant action occurred, the section of the arbitration act pertaining to, arbitration of contractual disputes was amended to provide as follows:
"Whenever in the course of mediation of a public police or fire department employee’s dispute, except a dispute concerning the interpretation or application of an existing agreement (a 'grievance’ dispute), the dispute has not been resolved to the agreement of both parties within 30 days of the submission of the dispute to mediation, or within such further additional periods to which the parties may agree, the employees or employer may initiate binding arbitration proceedings by prompt request therefor, in writing, to the other, with copy to the employment relations commission.” MCL 423.233; MSA 17.455(33). (Emphasis added.)
The Supreme Court recently determined that the act, as amended, repudiates the language of Mc-Kervey, and also stated that:
"We are of the opinion that the Legislature did not intend that MCL 423.233; MSA 17.455(33) would apply to individual grievance disputes. The sophisticated provisions of the police and fire department compulsory arbitration act, MCL 423.231 et seq.; MSA 17.455(31) et seq., of which MCL 423.233; MSA 17.455(33) is a part, are directed toward the resolution of major collective bargaining impasses and the prevention of police and fire department employee strikes. They are inapposite to the resolution of individual employee grievance disputes, which may involve matters as trivial as the length of an employee’s hair or the shine on his or her shoes.” Local 1518, Council No 55, AFSCME v St Clair County Sheriff, 407 Mich 1, 12-13; 281 NW2d 313 (1979). (Footnote omitted.)
Defendant is, thus, incorrect in claiming that the jurisdiction of the lower court did not extend to the instant action because of the arbitration act.
Each of the other cases cited by defendant implying that plaintiff should have submitted his dispute to the Michigan Employment Relations Commission concerns allegations of unfair labor practices against the employer. There are no allegations in the instant case that defendant engaged in any unfair labor practices in violation of § 10 of PERA, MCL 423.210; MSA 17.455(10). Rather, the instant case is solely one of contract interpretation. The commission has held that when the action involves a good-faith dispute as to contract interpretation, it will not assert jurisdiction. Cass City Public Schools, 1980 MERC Lab Op 956, 960.
The only remaining avenues of relief available to plaintiff would be those available under the contract. As noted in the statement of the facts, plaintiff requested a rehearing on his discharge when he learned of the new collective bargaining agreement. That request was never responded to by defendant. Thus, defendant cannot now come before this Court and assert that plaintiff failed to exhaust his contractual remedies on this particular issue. We therefore conclude that the trial court was correct in ruling that a declaratory judgment action was the proper remedy available to plaintiff.
Defendant next challenges the trial court’s ruling that the latter collective bargaining agreement was effective as of the date of plaintiff’s discharge from employment thus making plaintiff a permanent employee as of that date.
This Court’s review of a lower court’s decision in a declaratory judgment action is de novo. Curbelo v Macomb County Community College Trustees, 38 Mich App 432, 433; 196 NW2d 843 (1972), Lenawee County Board of Comm’rs v Abraham, 93 Mich App 774, 779; 287 NW2d 371 (1979). However, this Court will not reverse a trial court’s factual findings unless they are clearly erroneous. Welfare Employees Union v Civil Service Comm, 28 Mich App 343, 349; 184 NW2d 247 (1970).
Neither plaintiff nor defendant cites any case law or other authority to support his or its respective position on this issue. As plaintiff points out, the contract specifically provided that its articles would be effective as of July 1, 1978. Defendant argues that the intent of the parties was that only those articles concerning economic provisions were to be effective as of that date. In support of that position, defendant sought to introduce affidavits of certain individuals who took part in the negotiations stating that it was not the intention of the parties to make the shorter probationary period applicable to a person in plaintiff’s position. Plaintiff argues that the lower court properly excluded those affidavits from admission. If the court did make its determination that the latter contract was effective as of the date of plaintiff’s termination, it would apparently have to be for the reason that the court ultimately determined that the contractual provision stating that the effective date of the contract would be July 1, 1978, was unambiguous and did not require interpretation. Neither party cites, nor does research disclose, any authority which indicates that such a determination is clearly erroneous. Thus, this Court concludes that the trial court was not in error in making its determination that the latter collective bargaining agreement was effective as of the date of plaintiff’s termination from employment and that, for that reason, plaintiff was a permanent employee and entitled to all rights afforded such employees under the contract.
This opinion is, in no way, meant to foreclose any avenues defendant may wish to pursue if it again seeks to terminate plaintiff from employment. Any procedures must, however, be in accordance with plaintiffs status as a permanent employee.
Affirmed. No costs, a public question involved. | [
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Per Curiam.
Defendant appeals as of right from an order revoking her probation and sentencing her to a prison term of from 2 to 12 years.
On appeal, defendant argues that she was not advised that she had a right to a contested hearing on the probation revocation. We adhere to the position that the statements in the notice of probation violation or in the bench warrant referring to a "pending violation hearing” may provide sufficient notice of the right to a contested hearing. People v Darrell, 72 Mich App 710, 713; 250 NW2d 751 (1976). However, in the instant case the record is void of the minimal evidence that these documents were ever served upon defendant or otherwise brought to her attention. Absent any evidence that defendant was in some manner made aware of the right to a contested hearing, we must reverse and remand. People v Darrell, supra, People v Brooks, 91 Mich App 624; 283 NW2d 817 (1979).
Reversed and remanded. | [
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Per Curiam.
The prosecution appeals from a January 30, 1980, order of the Circuit Court for Ingham County dismissing a charge of conspiracy to deliver cocaine, MCL 750.157(a); MSA 28.354(1) and MCL 333.7401(1); MSA 14.15(7401). The order was entered when, following a three-day hearing, the circuit court granted defendant’s pretrial motions to quash the information, to quash search warrants, and to suppress evidence.
Testimony revealed that on the afternoon of March 20, 1979, Miklos Szilagyi, a Lansing police officer assigned to the Metro Narcotics Squad and investigator for the Ingham County Citizens Grand Jury, drove to the house of Randall Lee Seaver at 830 Lake Lansing Road. There he observed defendant drive a white Pontiac, which was later determined to be a rented vehicle, into Seaver’s driveway. Defendant left the car, entered the house, then returned, opened a suitcase in the trunk of the car, and removed something from the suitcase. Defendant placed something in his jacket, closed the suitcase, then the trunk, and returned to the house. Defendant left the house a few moments later and drove away.
A surveillance team of the Metro Squad followed defendant to an address on Pine Tree Road. There, defendant talked on the front porch for a while, entered the house, remained for about 20 minutes, and then drove to a gas station where he made a telephone call from a phone booth. He then returned to the Pine Tree Road house, remained inside for another 20 minutes, then drove to another pay phone booth, and made another phone call. The surveillance team lost track of the defendant’s car but located it again later at Seaver’s house.
Later that day, defendant was followed as he drove southeastward for approximately 50 miles. Near Milford, not far from the intersection of M-59 and US-23, the surveillance team spoke to a state trooper, indicating that they wanted defendant’s car stopped to ascertain his identity. A trooper pulled the car over. Defendant showed him a driver’s license which indicated that his name was Kenneth Watson of Plantation, Florida. The defendant said that he worked for a travel agency and was on his way to the airport to catch a plane. Defendant was released, and no traffic citation was issued. The trooper later told a narcotics squad officer that the stop was made because defendant had made an illegal turn.
The surveillance team continued to follow defendant but ended surveillance for the day after they observed defendant sitting in a parked car, reading a road map.
One member of the surveillance team, Officer Boyd of the Tri-County Metro Narcotics Unit, checked with the rental agency and determined that the car had been leased by Kenneth Watson of Plantation, Florida. The next morning, Officer Boyd ran a LEIN check and learned that Watson had been arrested after one pound of cocaine was seized from him, but the case had been dismissed. Police also learned that a man who was killed in an apparently drug-related homicide had placed a call shortly before his death to the Pine Tree Road residence that defendant visited on March 20.
On the afternoon of the following day, March 21, the surveillance team again spotted defendant’s car parked in the driveway at Seaver’s home. Observation of the house and car was made by Officer Szilagyi from the vantage point of a neighbor’s yard, some 125 feet away. From this location, Szilagyi took pictures using two different camera lenses, a 300 mm and 200 mm lens. His observations were in turn relayed by radio to Officer Boyd who was sitting in his car in a 7-11 parking lot a short distance from Seaver’s house. Boyd received a radio message from Szilagyi that defendant had just emerged from the Seaver residence carrying a clear glassine baggie the size of several hot dogs containing white powder and that defendant had climbed into the car trunk and was hiding the baggie in the trunk liner. Eight photographs were taken and introduced into evidence at the suppression hearing. They showed defendant climbing into the car trunk but did not show a glassine package.
Via radio, Boyd then asked Szilagyi whether he "felt certain about what he had seen”. Szilagyi replied that he did and added that defendant was just driving away. Boyd followed. When defendant turned into a gas station at the intersection of Lake Lansing and Abbott Roads, Boyd pulled his car in front of defendant’s, exited from his car with his gun drawn and ordered defendant out of defendant’s car. When defendant got out of his car, Boyd searched him and told him that he was under arrest for violation of the controlled substances act. This was about 3 p.m. No cocaine was found in defendant’s possession. The car was then towed to the East Lansing police station, and the trunk was opened and searched after a warrant for search of the car was secured at about 6:28 p.m. Some Quaaludes and white note paper were found in the upper portion of the trunk, but no cocaine or glassine packet was discovered. Meanwhile, and before a warrant was obtained for search of the Seaver house, police entered the house at about 3:30 p.m. There they made plain-view observations of items in the house and detained Seaver and his girlfriend for approximately five hours while they waited for a search warrant. While waiting, the police officers found cocaine and related paraphernalia in one bedroom. In a dresser drawer, which they said was pulled out, they observed a bank bag containing 25 small glass vials holding pills. In an open footlocker, they saw two, clear gallon-sized baggies containing psilocybin mushrooms. During the waiting period, the officers field tested the cocaine and took photographs. After the search warrant arrived, police completed the search of the Seaver house within minutes.
In a 52-page opinion delivered verbally from the bench on November 29, 1980, the trial court granted defendant’s motion to suppress the evidence on the following grounds: (1) the police made an improper pretext stop of defendant on March 20, near the intersection of US-23 and M-59 near Milford; (2) the observations of defendant through a 300 mm lens from a neighbor’s yard were inadequate to support a finding of probable cause for defendant’s arrest; (3) because the affidavit in support of the warrants to search defendant’s car and the Seaver residence relied on Officer Szilagyi’s positive assertion that defendant hid a bag of white powder in his car and a subsequent extensive search failed to uncover the bag, the warrants to search were invalid; and (4) the evidence seized at Seaver’s residence pursuant to the search warrants was the fruit of the poisonous tree. As articulated by the trial judge:
"What we’re really talking about is a search here that is intimately related to, at least, two prior unlawful intrusions into the defendant’s person and into his automobile, and that it was those intrusions that — as a matter of fact, it’s the alleged possession of the cocaine and the glassine packet with the white powder that caused the prosecuting attorney, apparently, to suggest that they secure the house, on the basis upon which they entered the house and observations made of the defendant and items which were alleged to be in his possession. They cannot be separated. So I think that the intrusion into the house must be viewed in light of the prior ongoing transactions.
"What I suggest that we really got here is a fruit of the poison tree. So the standing, although I’m satisfied that under all the circumstances there is standing, I’m not sure that it’s even required because of the source of the information which lead to the seizure of the house.
"In this particular case, without the unlawful stop at Milford, Michigan, the identity of this defendant could not have been known, and the only way it was was that stop coupled with the illegal arrest at the gas station at Abbott Road and Lake Lansing Road.”
The propriety of each of the trial court’s grounds for suppression of evidence is discussed in the balance of this opinion.
I. The alleged pretext stop.
At the suppression hearing, Officer Boyd testified that Metro Narcotics Squad officers asked a state trooper to pull over defendant’s car in order to learn defendant’s identity. He also stated that the trooper claimed that he stopped defendant for failing to signal a turn. This testimony was greeted by laughter in the courtroom. No evidence was presented that a citation was issued for an improper turn or for any violation. Relying largely on the fact that no citation was issued, the trial court found that the stop was a pretext stop.
Though the prosecution argues on appeal that the stop was made because the trooper observed an illegal turn, we cannot fault the trial judge for concluding that no illegal turn was made and thus the stop was a pretext stop. However, the fact that no violation occurred does not render the stop and the information as to defendant’s identity obtained therefrom invalid. The stop may be validated as a Terry- Whalen type investigatory stop. In People v Whalen, 390 Mich 672, 682; 213 NW2d 166 (1973), our Supreme Court set forth a four-pronged test to determine the reasonableness of an investigatory stop:
"1. Reasonableness is the test that is to be applied for both the stop of, and the search of moving motor vehicles.
"2. Said reasonableness will be determined from the facts and circumstances of each case.
"3. Fewer foundation facts are necessary to support a finding of reasonableness when moving vehicles are involved, than if a hoúse or a home were involved.
"4. A stop of a motor vehicle for investigatory purposes may be based upon fewer facts than those necessary to support a finding of reasonableness where both a stop and a search is conducted by the police.”
We find that at the time the defendant was stopped for investigatory purposes the police had adequate grounds for making such a stop. They had observed the defendant at the house of a suspected large-scale cocaine dealer. They had witnessed the defendant carrying something into that house, and they had observed the defendant as he made telephone calls from various pay phones. It was unnecessary that the officers have sufficient evidence to believe that a crime had been committed. As was stated in People v Olson, 98 Mich App 207, 211; 296 NW2d 218 (1980), defendant’s unusual though not illegal activity provided a reasonable basis for a subsequent stop of defendant’s vehicle "even though the officers did not have sufficient evidence to believe that a crime had been committed”.
In People v Bloyd, 96 Mich App 264, 267; 292 NW2d 546 (1980), this Court upheld an investigatory stop where the sole ground for stopping was that the defendant’s automobile was seen leaving the parking lot of a place of business in the early morning hours. The Court said:
"Defendant first challenges the legality of the police officer’s stop. Police officers may 'in appropriate circumstances and in an appropriate manner approach a person for purposes of investigating possible criminal behavior even though there is no probable cause to make an arrest’. Terry v Ohio, 392 US 1, 22; 88 S Ct 1868; 20 L Ed 2d 889 (1968). Stops may be made to determine a person’s identity, Adams v Williams, 407 US 143, 146; 92 S Ct 1921; 32 L Ed 2d 612 (1972), or to obtain information on crimes. Id., People v DeFillippo, 80 Mich App 197, 202; 262 NW2d 921 (1977), rev'd on other grounds 443 US 31; 99 S Ct 2627; 61 L Ed 2d 343 (1979), People v Jeffries, 39 Mich App 506, 511; 197 NW2d 903 (1972).” (Emphasis supplied.)
See also People v Martin, 99 Mich App 570; 297 NW2d 718 (1980). Since the stop was reasonable, the identity of the defendant and the knowledge that defendant had been arrested in Florida on a cocaine charge should not have been suppressed.
II. Observations made with a telephoto lens.
On appeal, defendant argues that observations made by Officer Szilagyi from the neighbor’s yard 125 feet from the Seaver residence through a telephoto lens constituted a search without a warrant. While this objection was not raised at the suppression hearing, the trial judge did discount the evidence for the reason that he could "not believe that an observation [made] from 125 feet through a telephoto camera, or otherwise, gives probable cause”. No Michigan court has discussed whether the use of telephoto lenses, binoculars, or telescopes violates the right to be free from unreasonable searches. However, the decision of whether such observations violate Fourth Amendment protections depends upon whether the person being observed had a reasonable expectation of privacy. In order for the constitutional protections to apply, a defendant must show that a search invaded his reasonable expectation of privacy. Katz v United States, 389 US 347; 88 S Ct 507; 19 L Ed 2d 576 (1967). Where a telephoto lens has been used to view activities outside a residence, other courts have found no error. United States v Gibson, — US App DC —; 636 F2d 761 (1980), United States v Allen, 633 F2d 1282 (CA 9, 1980), United States v Minton, 488 F2d 37, 38 (CA 4, 1973), United States v Grimes, 426 F2d 706 (CA 5, 1970).
We observe that a defendant may have a reasonable expectation of privacy in secluded areas outside the four walls of his home. Where a defendant conducts activities that are within the view of passersby and neighbors, we find that no reasonable expectation of privacy exists. In the instant case, defendant’s car was parked in the driveway of Seaver’s home where it could be seen and photographed from a neighbor’s house. Thus, the neighbor could have made the same observations. Accordingly, we find that no reasonable expectation of privacy existed and that the use of the telephoto lens to enhance the viewing officer’s observations was not violative of defendant’s rights. We also note that a 200 mm lens gives a magnification of approximately four power, thus equating the observation to an observation made without magnification from a distance of 31 or 32 feet.
III. Alleged invalidity of the search warrants.
A. Search of car.
The key issue at both the preliminary examination and the suppression hearing concerned Officer Szilagyi’s statement that he had observed defendant carrying a glassine baggie the size of several hot dogs containing white powder and had seen him concealing the package in the trunk of his car. The trial court observed:
"It was clear in this case that the observations of the glassine packet with the white powder the size of several hot dogs did not exist.
"So far as I’m concerned, this was erroneous information, and although the magistrate did not know it, he’s not entitled to consider it, and without it the warrant on its face must fall.
"I am not prepared to say today and there is no necessity for the court today to get into a question of whether there was indeed deliberate falsehood or reckless disregard of the truth. I don’t need to do that because I don’t think that that’s a standard to be applied. If an appellate court decides that it is, then this court will at that point consider whether there was such reckless disregard or deliberate falsehood in this case. But I decline to do that because of the court not needing to, and that generally being the policy, the courts will not address those issues where there is no necessity to do so.
"That affidavit is insufficient to give the right to have access to the automobile and the warrant must be quashed and the evidence seized as the result thereof may not be received into evidence.”
The court did not determine whether the officer’s information was given in reckless disregard of the truth or was an intentional misrepresentation.
The standards for determining whether erroneous information in an affidavit for a search warrant should be excluded in determining whether probable cause existed to issue the search warrant were set out in Franks v Delaware, 438 US 154, 155-156; 98 S Ct 2674; 57 L Ed 2d 667 (1978). The Franks court stated:
"[W]e hold that, where the defendant makes a substantial preliminary showing that a false statement knowingly and intentionally, or with reckless disregard for the truth, was included by the affiant in the warrant affidavit, and if the allegedly false statement is necessary to the finding of probable cause, the Fourth Amendment requires that a hearing be held at the defendant’s request. In the event that at that hearing the allegation of perjury or reckless disregard is established by the defendant by a preponderance of the evidence, and, with the affidavit’s false material set to one side, the affidavit’s remaining content is insufficient to establish probable cause, the search warrant must be voided and the fruits of the search excluded to the same extent as if probable cause was lacking on the face of the affidavit.”
The court later explained:
"There is, of course, a presumption of validity with respect to the affidavit supporting the search warrant. To mandate an evidentiary hearing, the challenger’s attack must be more than conclusory and must be supported by more than a mere desire to cross-examine. There must be allegations of deliberate falsehood or of reckless disregard for the truth, and those allegations must be accompanied by an offer of proof. They should point out specifically the portion of the warrant affidavit that is claimd to be false; and they should be accompanied by a statement of supporting reasons. Affidavits or sworn or otherwise reliable statements of witnesses should be furnished, or their absence satisfactorily explained. Allegations of negligence or innocent mistake are insufficient. The deliberate falsity or reckless disregard whose impeachment is permitted today is only that of the affiant, not of any nongovernmental informant.” Id., 171. (Emphasis supplied.)
Our Supreme Court has suggested that Franks now controls in Michigan. It remanded the case in People v Price, 406 Mich 881; 279 NW2d 293 (1979), to the Court of Appeals for reconsideration in light of Franks. On remand, this Court applied Franks and held that a showing of an innocent or negligent mistake was insufficient to set aside the erroneous information in an affidavit. People v Price (On Remand), 91 Mich App 328, 331; 283 NW2d 736 (1979). The Franks rule was also applied in People v Poindexter, 90 Mich App 599, 605; 282 NW2d 411 (1979).
The trial court did not hold the standard set forth in Franks, supra, is controlling but graciously observed that "[i]f an appellate court decides that it is, then the court will at that point consider whether there was such reckless disregard or deliberate falsehood * * *”. In our opinion, the trial court erred in not applying the Franks standard. However, we temporarily withhold decision as to reversal or other appropriate remedial action until we have determined the propriety of the search of the Seaver home.
B. Search of the Seaver home.
The trial court found that the search of the Seaver residence at 830 Lake Lansing Road was improper on the dual grounds (a) that the affidavit in support of the search basically repeats the same allegations found insufficient to support a warrant for the search of the car and (b) thát until the warrant arrived five hours later, there was no right to enter the house, make observations, or field test substances found therein. For the reasons set forth in part IIIA, supra, we disagree with the trial court that the affidavit supporting the warrant for the search of the home was insufficient. We agree with the trial court’s finding that with out a warrant entry into the home was illegal. Entry was made during business hours on a weekday when a magistrate reasonably was available. Police gave no indication of exigent circumstances which would justify an entry without a warrant. Defendant’s arrest some 30 minutes earlier at the gas station was not observable from the home, and thus persons in the home would have no reason to destroy any drugs contained therein. Seaver and his girlfriend were sequestered without warrants for their arrest for five hours while officers roamed the house at will. Similar conduct was soundly condemned in United States v Marshall, 488 F2d 1169 (CA 9, 1973), and People v Summers, 407 Mich 432; 286 NW2d 226 (1979). However, the prosecution challenges the defendant’s standing to attack the search of the Seaver residence. Because any decision on the issue of standing is interrelated with the question of whether the trial court erred in concluding that the cocaine and drug paraphernalia seized in the Seaver home was the fruit of the poisonous tree, the standing issue is discussed in the following portion of this opinion.
IV. Fruit of the poisonous tree.
Under the exclusionary rule, evidence obtained by methods violating constitutional proscriptions is excluded from use in criminal prosecutions. Mapp v Ohio, 367 US 643; 81 S Ct 1684; 6 L Ed 2d 1081 (1961), People v Pennington, 383 Mich 611, 619-620; 178 NW2d 471 (1970). Fruits of evidence so obtained are excluded as well. Wong Sun v United States, 371 US 471; 83 S Ct 407; 9 L Ed 2d 441 (1963). Where tainted information constitutes "more than a very minor portion” of the information in an affidavit supporting a search warrant, the warrant is invalid. United States v Langly, 466 F2d 27, 35 (CA 6, 1972).
The trial court held that the cocaine found in Seaver’s home and Seaver’s testimony against defendant at the preliminary examination were basically the product of two unlawful intrusions of defendant’s privacy: the pretext stop on March 20, from which the police learned for the first time the name, address, and age of defendant and from which information the police were able to run a LEIN check and ascertain that defendant had been arrested for possession of cocaine in Florida, and the observation through the telescopic lens that defendant had concealed a glassine packet containing white powder in the trunk of his car. We disagree for four reasons. First, as we have already stated in part I of this opinion, the stop of defendant’s car was a justifiable Terry-Whalen investigatory stop. Second, as determined in part II of this opinion, observations made through the telescopic lens were not unlawful intrusions into defendant’s privacy. Third, defendant’s car was not searched until two hours after the police had entered the home, and thus it is error to claim that the search of defendant’s car precipitated the search of the house. Fourth, the items seized in the home were taken before the search warrant for the house was issued several hours later. Additionally, it should be noted that no cocaine was found in the trunk of the car. Thus, the search was not the product of any prior illegal search, and defendant’s claim that the search was the product "of the poisonous tree” must fall.
In the absence of a showing that the search of the home without a warrant was the fruit of any prior illegal conduct against the defendant, defendant must demonstrate standing to challenge the search. Standing has been defined by our Court as follows:
"The test for determining standing is summarized in Brown v United States, 411 US 223, 229; 93 S Ct 1565; 36 L Ed 2d 208 (1973), as follows:
" '[TJhere is no standing to contest a search and seizure where, as here, the defendants: (a) were not on the premises at the time of the contested search and seizure; (b) alleged no proprietary or possessory interest in the premises; and (c) were not charged with an offense that includes, as an essential element of the offense charged, possession of the seized evidence at the time of the contested search and seizure.’
"A defendant need only qualify under one of the three sections to contest a search. People v Ray Jackson, 71 Mich App 487, 489; 247 NW2d 382 (1976), People v Morgan Clark, 68 Mich App 674, 692; 243 NW2d 914 (1976) (Noble, J., dissenting). Yet, as Brown, supra, indicates, defendant must normally demonstrate some legitimate interest in the premises searched or the objects seized, United States v Hunt, 505 F2d 931, 939-940 (CA 5, 1974), cert den 421 US 975; 95 S Ct 1974; 44 L Ed 2d 466 (1975), and such inquiry has characteristically turned on the scope of defendant’s 'reasonable expectations of privacy’.” People v Greenwood, 87 Mich App 509, 512-513; 274 NW2d 832 (1978).
Except for staying overnight on one occasion early in 1979, defendant had no possessory interest in the Seaver home. He had never lived in the house or paid rent. Further, he was not at the premises when the search was conducted.
In Rakas v Illinois, 439 US 128, 143; 99 S Ct 421; 58 L Ed 2d 387 (1978), the United States Supreme Court held that Fourth Amendment rights are personal rights and cannot be asserted vicariously by a third party who does not possess a reasonable expectation of privacy. The Rakas test of standing has been adopted in Michigan. People v Mack, 100 Mich App 45, 47; 298 NW2d 657 (1980). The old "automatic standing” rule announced in Jones v United States, 362 US 257; 80 S Ct 725; 4 L Ed 2d 697 (1960), and followed by one panel of this Court in People v Godwin, 94 Mich App 286, 288, fn 1; 288 NW2d 354 (1979), was recently overruled in United States v Salvucci, 448 US 83, 95; 100 S Ct 2547; 65 L Ed 2d 619 (1980).
"As in Rakas, we find that the Jones standard 'creates too broad a gauge for measurement of Fourth Amendment rights’ and that we must instead engage in a 'conscientious effort to apply the Fourth Amendment’ by asking not merely whether the defendant had a possessory interest in the items seized, but whether he had an expectation of privacy in the area searched. Thus neither prosecutorial 'vice’, nor the underlying assumption of Jones that possession of a seized good is the equivalent of Fourth Amendment 'standing’ to challenge the search, can save the automatic standing rule.” (Emphasis added.)
Our final reason for holding that defendant is without standing to challenge the search and seizure in the instant case is that defendant is not charged with possession of cocaine but with conspiracy to deliver that narcotic. Coconspirators have been held to possess no special standing. Alderman v United States, 394 US 165, 172; 89 S Ct 961; 22 L Ed 2d 176 (1969), People v Atkins, 96 Mich App 672, 678; 293 NW2d 671 (1980). Consequently, even though the police violated Seaver’s Fourth Amendment right, defendant Ward is without standing to challenge the violation.
V. In summation.
At this point it will be helpful to summarize our findings and to state whether or not the trial court erred in dismissing the charge of conspiracy to deliver cocaine. In our opinion, the trial court erred in finding: (1) that the police made an illegal pretext stop of defendant on March 20, 1979; (2) that the enhanced view through a camera lens could not be used to support a finding of probable cause for defendant’s arrest; (3) that it was unnecessary for the court to follow the standard set forth in Franks, supra, and to determine whether the police acted in reckless disregard of the truth in making the affidavits in support of the warrant to search defendant’s car; (4) that the evidence seized at the Seaver house was the fruit of the poisonous tree; and (5) that defendant had standing on Fourth Amendment grounds to contest the search and seizure at the Seaver home. The trial court did not err when it found that the search without a warrant of the Seaver home was an illegal act. However, because the right to be protected from such unlawful searches is a personal right which may not be asserted vicariously by a third party who does not possess a reasonable expectation of privacy, Rakas, supra, the evidence seized should not have been suppressed in the instant case. Accordingly, we reverse and remand the case to the trial court for trial on the merits.
VI. Constitutionality of the Public Health Code of 1978.
On appeal, defendant contends that in the event this Court finds that the trial court erred in quashing the search warrants and suppressing evidence, the charge against defendant should be dropped because the Public Health Code, 1978 PA 368; MCL 333.1101 et seq.; MSA 14.15(7101) et seq., violates the title-object clause of the Michigan Constitution, Const 1963, art 4, § 24. Defendant’s argument has recently been before this Court in People v Trupiano, 97 Mich App 416, 420; 296 NW2d 49 (1980), lv den 409 Mich 895 (1980). In Trupiano, this Court found that the Public Health Code did not embrace more than a single object. We now hold likewise. We also find that that object is adequately expressed in the act’s title. A general statement of the object is adequate, as all the details of a statute need not be set out in the statute’s title, People v Sowall, 279 Mich 261, 266; 271 NW 751 (1937), and the act’s title should be given a broad reading. People v Denmark, 74 Mich App 402; 254 NW2d 61 (1977).
Reversed and remanded to the trial court in accordance with this opinion.
Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968).
In People v Beavers, 393 Mich 554, 580; 227 NW2d 511 (1975), Chief Justice Coleman, dissenting, indicated that participant monitoring was no worse than viewing a premises through binoculars. In United States v Lee, 274 US 559, 563; 47 S Ct 746; 71 L Ed 1202 (1927), the Court stated: "Use of a search light is comparable to the use of a marine glass or field glass. It is not prohibited by the Constitution.”
The trial court relied on the earlier cases of People v Brolio, 58 Mich App 547; 228 NW2d 456 (1975), and People v Staffney, 70 Mich App 737; 246 NW2d 364 (1976), stating that they expressed "the more sound reasoning”. But as noted earlier, the Supreme Court appears to have held that Franks controls.
The people called Randall Seaver as their first witness at the preliminary examination. He stated that he was testifying pursuant to a plea bargain that charges of conspiracy to deliver cocaine and possession of cocaine would be dropped if he testified as to his dealings with defendant. He then stated that on several occasions defendant had brought cocaine to the house at 830 Lake Lansing Road and that on March 21, 1979, defendant had brought one-half pound to the house in two plastic bags and that he then paid defendant for the cocaine.
Defendant was arrested at approximately 3 p.m., and the car was towed to the police garage pending issuance of a search warrant for the search of the trunk. The Seaver home was entered at about 3:30. The warrant for search of the car was issued at 6:28, and the search of Seaver’s home was conducted at about 8:30. | [
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Per Curiam.
Plaintiff sued to recover survivor’s loss benefits for her husband’s death from his no-fault insurance carrier. Defendant’s motion for summary judgment was granted pursuant to GCR 1963, 117.2(1), and plaintiff appeals.
On January 26, 1979, plaintiff’s decedent was in the process of conducting his normal door-to-door produce business from his truck when he was confronted by an unknown armed assailant who robbed and killed him. Plaintiff’s claim for benefits from defendant was denied.
This case involves the question of whether the death of plaintiff’s decedent arose out of the ownership, operation, maintenance, or use of his vehicle. The trial court found that the assault was entirely unrelated to the decedent’s use of his vehicle.
A number of recent cases decided by this Court have construed the phrase "arising out of the * * * use of a motor vehicle” and have uniformly required that the injured person establish a causal connection between the use of the motor vehicle and the injury. MCL 500.3105; MSA 24.13105. Such causal connection must be more than incidental or fortuitous. The injury must be foresee-ably identifiable with the normal use of the vehicle. Further, this Court has stated that an assault by an armed assailant upon the driver of a car is not the type of conduct that is foreseeably identifiable with the normal use of a motor vehicle. Detroit Automobile Inter-Ins Exchange v Higgin-botham, 95 Mich App 213; 290 NW2d 414 (1980), Hamka v Automobile Club of Michigan, 89 Mich App 644; 280 NW2d 512 (1979), O’Key v State Farm Mutual Automobile Ins Co, 89 Mich App 526; 280 NW2d 583 (1979), Kangas v Aetna Casualty & Surety Co, 64 Mich App 1, 17; 235 NW2d 42 (1975).
Plaintiff attempts to distinguish this case from the above cases on the basis that the above cases involved privately insured vehicles while the present case involves a commercially insured vehicle. Therefore, plaintiff argues, the relationship between plaintiffs decedent’s death and the use of his commercially insured vehicle is clearly more than incidental or fortuitous; it was foreseeably identifiable with the use of his vehicle because the decedent collected money which increased the risk of being assaulted.
We find that the cases previously decided by this Court and the present case are not distinguishable. The fact that the decedent’s vehicle was commercially insured is inconsequential to this issue, even though the decedent collected money which may have increased his chances of being assaulted while in his vehicle. An assault by an armed assailant upon the driver of a commercially insured vehicle, no matter what the nature of his business, is no more foreseeably identifiable with the normal use of the vehicle than an assault upon the driver of a privately insured vehicle. The vehicle itself was not connected with the assault; it was not the instrumentality of the injury, and its role remained merely incidental. The trial court properly granted defendant’s motion for summary judgment. Partrich v Muscat, 84 Mich App 724, 729-730; 270 NW2d 506 (1978).
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Per Curiam.
Plaintiffs Frank Kuriakuz and Great Savings Market appeal from an August 11, 1980, order entered in Oakland County Circuit Court granting summary judgment, pursuant to GCR 1963, 117, in favor of defendant Community National Bank of Pontiac. This order dismissed plaintiffs’ complaint without prejudice.
Plaintiffs filed their complaint on February 26, 1980. The complaint alleged that in 1977 defendant entered into an oral agreement with plaintiff Frank Kuriakuz (who was co-owner of Great Savings Market) whereby defendant was to make certain loans to Kuriakuz so that he could remain in business. It also alleged that plaintiff Kuriakuz detrimentally changed his position in reliance on this oral agreement and that the loan was subsequently denied by defendant without notice or satisfactory explanation.
Kuriakuz contends that he was forced into bankruptcy because of his detrimental reliance. As one of its affirmative defenses, defendant alleged that plaintiff Kuriakuz is an adjudicated bankrupt, and, therefore, not the owner of the claim which forms the basis of this lawsuit. Defendant maintained that only the trustee in bankruptcy could assert this claim.
Attached as an exhibit to defendant’s motion for summary judgment was plaintiff Kuriakuz’s voluntary petition for bankruptcy, filed in November of 1978, and the schedules listing all of his assets.
The sole issue raised on appeal is whether a bankrupt is barred from bringing suit on a right of action which accrued prior to his filing for bankruptcy where the bankrupt did not disclose the right of action on the asset schedules filed with the bankruptcy court.
Section 70(A) of the old Bankruptcy Act, 11 USC 110(a), provided in pertinent part:
"(a) The trustee of the estate of a bankrupt and his successor or successors, if any, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt as of the date of the filing of the petition initiating a proceeding under this title, except insofar as it is to property which is held to be exempt, to all of the following kinds of property wherever located * * * (6) rights of action arising upon contracts, or usury, or the unlawful taking or detention of or injury to his property * * *.”
When plaintiff Kuriakuz filed his petition for voluntary bankruptcy, all of his assets, including the right of action which forms the basis of the instant suit, became vested in the trustee in bankruptcy by operation of law. Section 70. This right of action remained vested in the trustee during pendency of the bankruptcy proceedings, even though the asset was not listed on the schedule of assets plaintiff Kuriakuz was required to file with the bankruptcy court. See e.g., Moore v Slonim, 426 F Supp 524, 527-528 (D Conn, 1977), aff'd 562 F2d 38 (CA 2, 1977), Scharmer v Carrollton Manufacturing Co, 525 F2d 95 (CA 6, 1975), In re Thomas, 204 F2d 788 (CA 7, 1953).
Once a right of action vests in a trustee, the only way that a bankrupt may bring suit on that right of action, at least during the pendency of the bankruptcy proceedings, is by showing abandonment or by receiving permission from the bankruptcy court. See Taylor v Swirnow, 80 FRD 79, 82 (D Md, 1978), Riverside Memorial Mausoleum, Inc v Umet Trust, 469 F Supp 643 (ED Pa, 1979). It is equally clear that a bankrupt may never assert, during the pendency of his bankruptcy proceedings, that a trustee has abandoned an asset if that asset has not been listed on the asset schedule. See Moore, supra, Scharmer, supra, In re Thomas, supra.
At the hearing on the motion for summary judgment, plaintiff Kuriakuz’s attorney stated that Kuriakuz was discharged in bankruptcy in March of 1979. Thus, the question presented in the instant case is whether title to this right of action revested in the bankrupt (plaintiff Kuriakuz) after the close of his bankruptcy estate, even though the asset was not listed on the schedule he filed with the bankruptcy court.
An early Supreme Court case addressed this issue and stated:
"It cannot be that a bankrupt, by omitting to schedule and withholding from his trustee all knowledge of certain property, can, after his estate in bankruptcy has been finally closed up, immediately thereafter assert title to the property on the ground that the trustee had never taken any action in respect to it. If the claim was of value * * * it was something to which the creditors were entitled, and this bankrupt could not, by withholding knowledge of its existence, obtain a release from his debts, and still assert title to the property.” First National Bank v Lasater, 196 US 115, 119; 25 S Ct 206; 49 L Ed 408 (1905).
Although there is some authority to the contrary, see Collier on Bankruptcy (14th ed, 1974), § 79, pp 94-96, we find the position expressed in Lasater, supra, to be persuasive. As was similarly stated in Grauman v City Company of New York, 113 F Supp 437, 438 (SD NY, 1941):
"In filing his schedules, the bankrupt failed to list the causes of actions upon which he now sues the defendants. Nor, so far as appears has he ever informed his trustee of the existence of the claims here asserted. His creditors, apparently, have fallen far short of receiving the face value of their respective claims. So far as can be ascertained, neither the bankrupt’s trustee, nor his creditors, have any knowledge of the right of recovery to which this court is requested to give attention.
"The right, concerning which Barker here sues, is one which, in the ordinary course of events, would have passed to his trustee in bankruptcy. Such trustee, having had no notice of the existence of the claims on which Barker’s claims are predicated, cannot rightfully be said to have abandoned the same. In the absence of evidence that the bankrupt’s trustee is not desirous of litigating the issues which Barker tenders to the defendant, I see no reason why he should be permitted to prosecute them. If the claims have merit, it seems to me that Barker’s duty is to inform his trustee of their existence, and to permit him, rather than himself, to reduce them to possession.”
Based on the foregoing authority, we affirm the trial court’s grant of summary judgment in favor of defendant. In so doing, however, we note that, since the action below was dismissed without prej udice, plaintiff Kuriakuz can petition the bankruptcy court to reopen his estate pursuant to bankruptcy rule 515. If the estate is reopened, the trustee will have the option of pursuing this action or abandoning it. In the alternative, the bankruptcy court could give plaintiff Kuriakuz permission to bring this action himself. Such procedure will protect the interests of plaintiff Kuriakuz’s creditors.
Affirmed. Costs to defendant. | [
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Per Curiam.
Plaintiffs appeal as of right a January 9, 1980, decision and a January 30, 1980, judgment dismissing plaintiffs’ complaint for damages.
Defendants invited bids for construction projects involving the widening and paving of Newburgh Road at its intersection with other streets in the cities of Westland and Wayne in Wayne County. Since these roads do not constitute a part of the state trunkline highway system, the financing of the project was to be shared by the Federal Highway Administration, Wayne County Road Commission, and the cities of Westland and Wayne. Defendants were to act as the agent of the local governmental entities.
Bid proposals for the proposed project were opened on June 19, 1974, and on June 21, 1974, plaintiffs were determined to be the lowest bidder on the project. However, plaintiffs’ bid exceeded defendants’ cost estimate by 31.7 percent. On June 25, 1974, defendants rejected all bids.
Upon receiving notice of the rejection of all bids, DiPonio contacted the Director of the Department of State Highways and Transportation and learned that the funding entities would not increase their share of the project’s cost in order to provide for the excess over the cost estimate. DiPonio was advised that if the local units of government would increase their proportionate share of funding, the project could go ahead. DiPonio contacted the local units of government, who later advised defendants that they would increase their proportionate share of funding necessary to cover plaintiffs’ bid.
On July 12, 1974, defendants forwarded to plaintiffs unsigned contract forms accompanied by a cover letter which indicated that execution of the contract forms by plaintiffs did not constitute an award of the contract. Thereafter, defendants contacted plaintiffs and scheduled a preconstruction meeting for July 19, 1974. The preconstruction meeting was held as scheduled, and the minutes of the meeting were forwarded to plaintiffs. The Federal Highway Administration wrote defendants on August 8, 1974, and advised them that it would be in the public interest to reject all bids and to readvertise the project. Therefore, defendants advised plaintiffs on August 16, 1974, of the decision to reject all bids and to readvertise the project. The project was rebid by defendants on July 16, 1975, and the contract was awarded to another contractor, whereupon plaintiffs filed suit for damages.
The trial court found from the evidence that defendants expressed an intent not to be bound until the contract was executed by the commission and the work was authorized. Therefore, the trial court found that the contract had not arisen. We agree.
The thrust of plaintiffs’ argument is that they were not notified that there were any contingencies prior to the awarding of the contract, that all steps necessary for commencement of construction were taken by both parties, and that therefore the bid was accepted and a contract arose between the parties. However, the central question is whether defendants expressed an intent not to be bound until execution of the written instrument.
In support of their contention, plaintiffs argue that they were never notified prior to the receipt of the contract documents on July 12, 1974, or at the preconstruction meeting on July 19, 1974, that the contract award was contingent on funding. Plaintiffs further argue that there was no reason for them to believe that all approvals had not been obtained at the time they received the contract documents for completion and return. However, plaintiffs were notified on June 25, 1974, that all bids were rejected. The bids were rejected because the lowest bid was 31.7 percent above the estimate, said rejection being pursuant to 1973 Standard Specifications for Highway Construction, § 1.03.01, which allows the commission to reject any or all proposals. After receiving the notice of rejection, DiPonio contacted the Director of State Highways and discovered that the bids were rejected because they were in excess of the estimate of the cost of the project but that if the local communities increased their proportionate share of funding the job could go ahead. Pursuant to DiPonio’s efforts, the local governments increased their funding and the contract forms were mailed to the plaintiffs, accompanied by a cover letter which indicated that the supplying of the contract and bond forms did not constitute an award of the contract and that plaintiffs were advised not to start work until officially authorized to do so.
DiPonio returned the completed contract documents to the department on July 15, 1974, whereupon a preconstruction meeting was scheduled for July 19, 1974. Plaintiffs place great reliance on the fact that it was never indicated that the contract had not been awarded or that it would be contingent on the availability of funds. However, specification 1.03.02 requires that a progress schedule be approved before award of a contract. Further, the minutes of the preconstruction meeting forwarded to plaintiffs immediately after the meeting advised them that the work was to begin within ten days after the contract had been awarded.
Thus, although there was no express representation that the contract award was contingent upon state and/or federal approval, it is apparent that the contract had not been awarded and that the defendants manifested, particularly by their letter of July 12, 1974, an intent not to be bound until the written contract was executed by the commission.
The trial court found from the evidence that defendants expressed an intent not to be bound until the contract was executed by the commission and the work was authorized. Based on an analysis of the evidence, particularly the cover letter accompanying the contract documents received by plaintiffs on July 12, 1974, this conclusion is not clearly erroneous. A finding is clearly erroneous where, "although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed”. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976), GCR 1963, 517.1. Therefore, the trial court did not err when it found that defendants expressed an intent not to be bound until the contract was executed by the commission.
The trial court further found that since defendants manifested an intent not to be bound until the execution of a written or formal contract, no valid and enforceable obligation arose. We agree.
In Michigan Broadcasting Co v Shawd, 352 Mich 453; 90 NW2d 451 (1958), the Court held that if the parties indicated that the expected or proposed contract was to be the exclusive, operative consummation of the negotiations, the preceding communications would not be operative as an offer or acceptance. See also 17 Am Jur 2d, Contracts, § 28, p 363, 1 Williston on Contracts (3d ed), § 28, p 66, 1 Corbin on Contracts, § 30, pp 97-112.
Plaintiffs cite numerous cases for the proposition that once a low bidder has completed contract documents and performed all necessary requirements, formal execution of the contract is not required. However, those cases are clearly distinguishable.
In McIntosh Road Materials Co v Woolworth, 365 Pa 190; 74 A2d 384 (1950), the plaintiff submitted a bid which was in the form of a contract, fully and completely executed so as to be automatically binding upon it upon acceptance by the Secretary of Property and Supplies within 30 days from the date set for opening of all bids. The plaintiffs had complied with all requirements and were notified by telegram that awards had been made to them based on their bids. The next day, plaintiffs were sent letters stating that the contract had been awarded to them.
Thereafter, it was determined that a savings could be realized by allowing an unsuccessful bid der to perform the contract, whereupon the Secretary of Property and Supplies purported to recall and grant new awards. The court held the new awards void and upheld the prior awards, finding that the contract was complete when originally accepted by the Secretary of Property and Supplies, and ordered the appropriate authorities to execute the contract.
The factual situation here contrasts with that in McIntosh in that the department originally advised the contractor that all bids had been rejected and that the project would be readvertised. Based upon DiPonio’s efforts, the local units of government agreed to increase their proportionate share of funding, and consequently the contract forms were sent to plaintiffs with a letter which cautioned that the furnishing of the contract forms did not constitute an award of the contract. Thus, it was never indicated to plaintiffs that the contracts had been awarded to them.
Plaintiffs also rely on Williams v City of Stockton, 195 Cal 743; 235 P 986 (1925). There, the council adopted a resolution, which was approved by the mayor, awarding a contract to plaintiff for certain public work. The. mayor was directed to sign a written contract, which he failed to do prior to the expiration of his term, and a new administration attempted to revoke the award by subsequent ordinance. The court held that upon the award of the contract to plaintiff and on compliance with all requirements on his part he obtained a right to the benefits under the contract and that he could not be divested of such right by adoption of the second resolution. As noted, the contract had not been awarded to plaintiffs in the instant case. Thus, their reliance upon Williams is misplaced.
In Garfielde v United States, 93 US 242; 23 L Ed 779 (1876), the United States Supreme Court found that a contract arose without the execution of a written instrument because the statute provided that the contracts shall be awarded to the lowest bidder. Therefore, the Postmaster General had no discretion in awarding the contract. In United States v Purcell Envelope Co, 249 US 313; 39 S Ct 300; 63 L Ed 620 (1919), the Court relied upon Garñelde, supra, in holding that once the government had accepted the bid and entered the order awarding the contract to plaintiff, a formal execution was not necessary. In the instant case, there is no statute which requires that the contract be awarded to the lowest bidder. Further, the department expressly stated that the contract had not been awarded to plaintiffs when the contract forms were furnished to them for their completion. Thus, those cases are inapposite.
In the case sub judice, the department advised plaintiffs that the contract would not be awarded until it was executed by the commission. Since a contract does not arise where one party to the proposed agreement manifests an intent not to be bound until execution of the contract, no contract arose because the commission failed to execute it. Thus, the trial court did not err in dismissing plaintiffs’ complaint.
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D. C. Riley, J.
This is an appeal from a final judgment of the Michigan Tax Tribunal in two property tax assessment cases. On December 9, 1975, the City of Detroit filed two petitions regarding property tax assessments against the respondents-appellants. The cases were consolidated for hearing before the Tax Tribunal and are consolidated on appeal.
The petition against Norman Allan & Co. alleged that it incorrectly reported the value of its personal property located in Detroit, and the petition requested that the assessed value for the 1975 tax year be increased from $7,010 to $87,140.
The petition against E. L. Rice & Co. raised numerous allegations. Petitioner alleged that: (1) respondent failed to file a personal property statement with the City of Detroit for the 1974 tax year; (2) the assessed value of respondent’s personal property for the 1975 tax year should have been $270,420 instead of $111,260 as reported by respondent; and (3) the assessed value of respondent’s personal property for the 1974 tax year was $703,880.
The Tax Tribunal held a hearing on May 7, 1979, and rendered an opinion and judgment on September 17, 1979. The tribunal increased the assessment against Norman Allan & Co. to $87,140 as no objections were raised at the hearing to the audit valuation. In regard to E. L. Rice & Co., the tribunal ruled that: (1) respondent timely filed a personal property statement for the 1974 tax year; (2) respondent sufficiently proved as to tax year 1975 that the property did not have a situs within Detroit on tax day, December 31, 1974, and that, therefore, the property was not subject to taxation, however, the 1975 statement omitted certain inventory and, therefore, the assessed value was increased to $118,920 from the reported $111,260; and (3) respondent did not sufficiently prove as to tax year 1974 that the property did not have a situs within Detroit pn tax day, December 31, 1973, and, therefore, the assessed value should be increased to $703,880.
Respondents appeal as of right from the Tax Tribunal’s judgment.
The proper standard of review of the decision by the Tax Tribunal was recently stated in North-wood Apartments v City of Royal Oak, 98 Mich App 721, 724; 296 NW2d 639 (1980):
"At the outset, we emphasize that this Court’s authority to review a valuation decision of the Tax Tribunal is very limited. We are bound by the factual determinations of the Tribunal. Ironwood v Gogebic County Board of Comm’rs, 84 Mich App 464, 469; 269 NW2d 642 (1978). Where, as here, no fraud is alleged, our review is limited to the questions of whether the Tribunal committed an error of law or adopted a wrong principle. Consolidated Aluminum Corp, Inc v Richmond Twp, 88 Mich App 229, 231; 276 NW2d 566 (1979), Consumers Power Co v Port Sheldon Twp, 91 Mich App 180, 184; 283 NW2d 680 (1979), Const 1963, art 6, § 28.”
Thus, this Court is bound by the factual determinations of the Tax Tribunal, and the issue before us is whether the tribunal committed any errors of law.
Although the parties have raised several issues for our review, we believe that our resolution of one is dispositive of this appeal. That issue is whether the Tax Tribunal erred in concluding that it had jurisdiction to decide this matter. The parties do not dispute the fact that the petitions were filed on December 9, 1975. The dispute concerns interpretation of two statutes which are possibly applicable to the facts of the instant case, MCL 211.22; MSA 7.22 and MCL 211.154; MSA 7.211.
MCL 211.22; MSA 7.22 provides in pertinent part:
"Sec. 22. [Testimony Assessment.] If the supervisor or assessing officer, a member of the state tax commission, or the director or deputy director of the county tax or equalization department as mandatorily established ud-ner section 34 of this act shall be satisñed that any statement so made is incorrect * * * [he] is hereby authorized to set down and assess to such person, firm or corporation so entitled to be assessed, such amount of real and personal property as he may deem reasonable and just.
"Whenever examination and investigation reveal that the written statement of personal property is incorrectly made, that any data submitted is false, or that certain personal property has been omitted from the statement, the supervisor or assessing officer may petition the state tax commission to revise the personal property assessment of the person submitting such erroneous statement, if the petition is died on or before June 30 of each year.” (Emphasis supplied.)
MCL 211.154; MSA 7.211 provides in pertinent part:
"Sec. 154. If it shall be made to appear to the commission at any time that as a matter of fact any property liable to taxation has been incorrectly reported for any previous year, but not to exceed the current assessment year and 1 year immediately preceding the date of discovery and disclosure of the omission, but not prior to the effective date of the 1969 amendment to this section, the commission shall notify by registered mail the person to whom such property is assessable and give such person an opportunity to appear at a hearing before the commission, which hearing shall be held not later that 30 days from the date of notification by mail. If it appears to the commission that no reason in fact or in law exists which would justify an exemption of such property from taxation for those 2 years, it shall immediately place the total aggregate assessment value for the omitted years on the then current assessment roll in the column provided.” (Emphasis supplied.)
In the proceedings below, the respondents brought a motion to dismiss based upon the provi sion in § 22 that the petitions were not filed on or before June 30, 1975, and, thus, were untimely. The city responded (and contends on appeal) that the phrase "may petition” makes § 22 permissive rather than mandatory. According to the city, it was not obligated to proceed under § 22 and, in fact, was not so proceeding. Rather, the city claimed that it was entitled to proceed under § 154 and that it could, therefore, file its petitions after June 30.
We note at the outset that the Michigan Tax Tribunal has replaced the Tax Commission as the reviewing body of assessment disputes and the like. Detroit v Jones & Laughlin Steel Corp, 77 Mich App 465; 258 NW2d 521 (1977). In addition, tax statutes are strictly construed. Topps of Warren, Inc v City of Warren, 27 Mich App 59, 62; 183 NW2d 310 (1970). As the Court stated in In re Dodge Brothers, 241 Mich 665, 669; 217 NW 777 (1928):
"The scope of tax laws may not be extended by implication or forced construction. Such laws may be made plain, and the language thereof, if dubious, is not resolved against the taxpayer.”
We conclude that the Tax Tribunal incorrectly determined that the city properly proceeded in this matter under MCL 211.154; MSA 7.211. We believe that MCL 211.22; MSA 7.22 applies when the assessor petitions the tribunal to increase the value on the tax roll of personal property inadequately and improperly reported by a taxpayer but which is conceded to be taxable. MCL 211.154; MSA 7.211, on the other hand, applies when property has been incorrectly reported as exempt property but is thought to be (i.e., is "made to appear to be”) taxable property. The issue in such cases is the proper status of the property, whether it is amenable to taxation in the first place.
This conclusion is reinforced by language stated in the second sentence of § 154 that:
"If it appears to the commission that no reason in fact or in law exists which would justify an exemption of such property from taxation for those 2 years, it shall immediately place the total aggregate assessment value for the omitted years on the then current assessment roll * * (Emphasis added.)
This language indicates that the section is concerned with property which previously had been incorrectly reported as property not amenable to taxation because the taxpayer claimed that the property was exempt. Although the precise issue facing this Court has not heretofore been decided, the case of City of Ann Arbor v State Tax Comm, 393 Mich 52; 223 NW2d 1 (1974), is instructive. The City of Ann Arbor filed petitions with the State Tax Commission seeking to have tax exempt property declared taxable and placed on the assessment rolls. In that case the parties proceeded under § 154.
Thus, MCL 211.154; MSA 7.211 provides that if property had been incorrectly reported as exempt (during the current year or one year immediately preceding the date of discovery and disclosure of the omission) and it is "made to appear” to the Tax Tribunal that the property was incorrectly reported because it is in fact "property liable to taxation” (i.enot exempt), then the taxpayer shall have an opportunity for a hearing, and if it appears that no reason justifies an exemption from taxation the tribunal shall place the aggregate assessment value for the omitted years on the current assessment roll. Under our interpretation of § 154, this statute does not apply to the petitions at bar since they allege only that the personal property of respondents was undervalued.
We also agree with respondents’ suggestion that the statutory language of MCL 211.22; MSA 7.22 is unambiguous in requiring a petition in response to an incorrect written statement to be filed on or before June 30 of the tax year. The "may petition” language found in § 22 is not, as the city contends, permissive in the sense that an assessor may choose to proceed under either § 22 or § 154. The statute is "permissive” only to the extent that a petition can be filed only if it is filed on or before June 30.
Additionally, the filing requirement language of § 22 cannot be read consistently with § 154 if the city may proceed under either statute since the longer time limit in § 154 would render the filing limits of § 22 totally useless. As respondents point out, § 154 provides for procedures to be followed by the tribunal after it has been "made to appear” that property was incorrectly reported, whereas, § 22 provides for initial procedures to determine in the first place whether a statement is incorrect.
Since the petitioner in this case was challenging the statements submitted by respondents, it should have proceeded under MCL 211.22; MSA 7.22, and the failure to comply with its requirements necessitates a dismissal of both cases.
Reversed. No costs, a matter of statutory construction being involved. | [
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Per Curiam:.
Respondent appeals as of right from a decision of the Michigan Employment Relations Commission (MERC) finding that respondent had committed an unlawful labor practice.
On January 4, 1982, the union filed a charge with the MERC alleging that respondent had unilaterally reduced work hours and changed other terms of employment. A hearing was conducted before hearing officer Bert H. Wicking, who found that respondent’s actions were not inspired by anti-union animus and were, therefore, lawful.
After considering the charging party’s exceptions to Wicking’s recommended order, the MERC found that respondent, in response to a large budget deficit, reduced the work week of four employees "by 8 hours (1 day) for five weeks, and by 16 hours (2 days) for the two weeks following. At the end of the period, [respondent] decided to restore the old schedule and to lay off one employee indefinitely”. The MERC agreed with hearing officer Wicking that respondent’s actions were not inspired by anti-union animus but held that respondent’s unilateral reduction in work hours constituted a breach of its statutory duty to bargain. The MERC ordered respondent to, inter alia, "[m]ake whole employees for loss of pay suffered by them as a result of the unlawful unilateral decision to reduce work hours * *
The first issue raised in this appeal is whether public employers have a duty to bargain with employees regarding the implementation of a decision to lay off workers.
The Public Employees Relations Act (PERA), MCL 423.201 et seq.; MSA 17.455(1) et seq., forbids public employers to "refuse to bargain collectively”. MCL 423.210(1)(e); MSA 17.455(10)(1)(e). This duty is defined in PERA § 15:
"A public employer shall bargain collectively with the representatives of its employees as defined in section 11 and is authorized to make and enter into collective bargaining agreements with such representatives. For the purposes of this section, to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder, and the execution of a written contract, ordinance or resolution incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession.” MCL 423.215; MSA 17.455(15). (Emphasis added.)
Those issues which fall into the category of "wages, hours and other terms and conditions of employment” have been deemed mandatory subjects of bargaining. Detroit Police Officers Ass’n v Detroit, 391 Mich 44, 54-57; 214 NW2d 803 (1974).
In Local 1277, AFSCME v Center Line, 414 Mich 642; 327 NW2d 822 (1982), our Supreme Court held that the initial decision to lay off workers is a matter of management prerogative and is not a mandatory subject of bargaining. The Court also made it clear that the "impact” of such a decision "is an issue for bargaining”. Center Line, supra, pp 661-665. The Court in Center Line cited with approval the case of Beloit Education Ass’n v Employment Relations Comm, 73 Wis 2d 43; 242 NW2d 231 (1976), which held that the order in which teachers would be laid off was a mandatory subject for bargaining to the extent that it did not invade the school board’s right to determine the curriculum.
The rationale supporting the decision in Beloit, supra, is relevant to the case at bar. So long as respondent is able to unilaterally determine which city services are to be reduced, the "management prerogative” has not been invaded. It should make no difference to respondent whether the employees performing the affected services choose to share the burden of the cuts or whether they choose to have their least senior co-workers bear the burden completely. Therefore, we find that respondent has a duty under PERA § 10(l)(e) to bargain over the "impact” of its decision to reduce its work force.
The second issue raised in this appeal is whether respondent has breached this duty to bargain over the "impact” of its decision to reduce its work force.
PERA § 15, which defines the duty to bargain created by PERA § 10(l)(e), expressly conditions the employer’s duty to bargain on there being a request for bargaining from the employees. Analogous federal legislation imposes the requirement that, in order to trigger an employer’s duty to bargain, the employees’ representative must indicate to the employer a willingness to bargain. In National Labor Relations Board v Columbian Enameling & Stamping Co, 306 US 292, 296-297; 59 S Ct 501; 83 L Ed 660 (1939), the Supreme Court stated:
"In appraising these transactions between the conciliators and respondent’s president, it is important to bear in mind the nature and extent of the legal duty imposed upon the employer by the National Labor Relations Act. Section 8(5) declares that it is an 'unfair labor practice’ for an employer To refuse to bargain collectively with the representatives of his employees’, and §§2 and 10(c) give to the Board an extensive authority to order the employer to cease an unfair labor practice * * *. While the Act thus makes it the employer’s duty to bargain with his employees, and failure to perform that duty entails serious consequences to him, it imposes no like duty on his employees. Since there must be at least two parties to a bargain and to any negotiations for a bargain, it follows that there can be no breach of the statutory duty by the employer — when he has not refused to receive communications from his employees — without some indication given to him by them or their representatives of their desire or willingness to bargain. In the normal course of transactions between them, willingness of the employees is evidenced by their request, invitation, or expressed desire to bargain, communicated to their employer.” (Emphasis added.)
Accord, National Labor Relations Board v SpunJee Corp, 385 F2d 379, 384 (CA 2, 1967). See generally, 48 Am Jur 2d, Labor and Labor Relations, § 968.
Although the MERC opinion states that respondent has admitted "that it failed to give charging party notice and opportunity to bargain”, we find no such admission in the record.
In any event, the MERC’s finding that respondent had not given the union notice and opportunity to bargain places the duty to seek collective bargaining on the wrong party. In Columbian Enameling, supra, p 297, the Supreme Court, when referring to analogous federal legislation, stated:
"However desirable may be the exhibition by the employer of a tolerant and conciliatory spirit in the settlement of labor disputes, we think it plain that the statute does not compel him to seek out his employees or request their participation in negotiations for purposes of collective bargaining * * (Emphasis added.)
Since the union has not shown that it requested respondent to bargain over its decision to impose a partial layoff, the MERC award of lost wages was inappropriate.
The decision of the MERC is affirmed to the extent that it orders respondent to "[c]ease and desist from altering the working hours of employees without bargaining”, and reversed to the extent that it orders respondent to "[m]ake whole employees for loss of pay suffered by them as a result of the unlawful unilateral decision to reduce work hours”.
Affirmed in part, reversed in part. | [
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R. L. Tahvonen, J.
Defendant appeals by leave granted from a February 4, 1983, decision and order of the Workers’ Compensation Appeal Board finding that plaintiff was entitled to benefits for a work-related injury sustained in February and June, 1973, and denying defendant’s request that benefits currently due be offset by a third-party recovery obtained by plaintiff in compensation for a prior personal injury. We affirm.
Plaintiff is employed by defendant, Keeler Brass Company. On August 3, 1967, her left forearm was severely crushed in a power press accident. The injury necessitated bone and tendon grafts and other reconstructive surgery. She was off work for approximately five years, and defendant, a self-insured employer, paid compensation benefits for the injury totaling $20,959. Plaintiff filed a federal action against the manufacturer of the press and received a judgment in the amount of $79,510. The benefits paid by defendant were fully reimbursed out of the third-party judgment pursuant to MCL 418.827; MSA 17.237(827).
Plaintiff returned to employment with defendant on June 17, 1972, and was given favored work as a timekeeper. In January or February, 1973, plaintiff was placing some papers in a file drawer when a bump appeared on her left forearm in the area of the previous injury. Plaintiff did not experience any pain and she continued to work. On June 14, 1973, plaintiff was sharpening a pencil when she felt a snap and a sharp pain in her left arm. She was unable to continue working because of the pain. X-rays subsequently revealed that the surgically-inserted metal nail securing the bone grafts had broken. Since the area around the nail had not fully healed, further deformity resulted. In July, 1975, plaintiff underwent additional reconstructive surgery.
Plaintiff filed a petition for workers’ compensation benefits on October 11, 1973. A hearing referee found that plaintiff did not incur a new injury in January, February, or June of 1973. He awarded benefits but provided for a setoff from the prior third-party judgment. The appeal board reversed, finding that plaintiff suffered new and additional injuries in 1973 and ordering defendant to pay continuing compensation for plaintiff’s new disability.
Although no appeal was taken from the order, defendant refused to commence payment of weekly benefits. Plaintiff filed an action in the Kent County Circuit Court to enforce the WCAB’s award. Defendant argued that the appeal board’s decision was ambiguous as to defendant’s right to a credit from plaintiff’s third-party recovery. The circuit court denied plaintiff’s request for a judgment on the setoff issue and held that the matter should be decided by the WCAB.
Plaintiff appealed from the dismissal of her circuit court action and this Court, in an unpublished per curiam opinion, Docket No. 43202, December 28, 1979, affirmed and remanded to the WCAB for clarification of defendant’s right to a setoff. On remand, the WCAB held that defendant was not entitled to any further setoff against plaintiffs third-party recovery since the 1973 injury was a new injury which did not create liability in a third party. Defendant appeals.
The pertinent statute is MCL 418.827; MSA 17.237(827), which provides in part:
"(1) Where the injury for which compensation is payable under this act was caused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies but the injured employee or his dependents or personal representative may also proceed to enforce the liability of the third party for damages in accordance with the provisions of this section. If the injured employee or his dependents or personal representative does not commence the action within 1 year after the occurrence of the personal injury, then the employer or carrier, within the period of time for the commencement of actions prescribed by statute, may enforce the liability of such other person in the name of that person. * * *
"(5) In an action to enforce the liability of a third party, the plaintiff may recover any amount which the employee or his dependents or personal representative would be entitled to recover in an action in tort. Any recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, shall first reimburse the employer or carrier for any amounts paid or payable under this act to date of recovery and the balance shall forthwith be paid to the employee or his dependents or personal representative and shall be treated as an advance payment by the employer on account of any future payments of compensation benefits.
"(6) Expenses of recovery shall be the reasonable expenditures, including attorney fees, incurred in effecting recovery. Attorney fees, unless otherwise agreed upon, shall be divided among the attorneys for the plaintiff as directed by the court. Expenses of recovery shall be apportioned by the court between the parties as their interests appear at the time of the recovery.” (Emphasis added.)
By its terms the statute applies only where the injury for which compensation is payable was caused under circumstances creating a legal liability in a third party. In other words, where a third-party recovery is obtained for an injury, reimbursement or credit out of that recovery is available to an employer only to the extent that compensation benefits are paid for that same injury. Reimbursement or credit is not available for compensation payable for a new injury from which no third-party liability arises. In Pitoniak v Borman’s, Inc, 104 Mich App 718; 305 NW2d 305 (1981), lv den 411 Mich 1049 (1981), the plaintiff, a cashier employed by defendant Borman’s, injured her knee in a nonwork-related automobile accident. She instituted a lawsuit against the driver of the other car involved in the accident and received a settlement. When the plaintiff returned to work after recovering from the accident, she developed further problems with her knee and was unable to continue working. The WCAB found that the plaintiff had proven work-related aggravation of her previous injury and was entitled to compensation. It also found that the defendants were not entitled to a credit for compensation benefits out of the third-party recovery. A panel of this Court affirmed, holding:
"The board apparently held the work-related aggravation of plaintiff’s injury to be entirely separate from the original damage, thus precluding reimbursement under § 827. Apparently defendants claim that since the plaintiff could have recovered for the work-related aggrava tion of her knee injury from the tortfeasor, the employer and/or its carrier is entitled to reimbursement or a credit. Defendants cite no four-square authority for this proposition but say that to hold otherwise would approve a windfall to the plaintiff contrary to Epps v Mercy Hospital, 69 Mich App 1; 244 NW2d 340 (1976). We believe that the appeal board did not err but that reimbursement is only available where the injury for which compensation is payable under the act was caused by and creates liability in a third party. ” (Emphasis added.) 104 Mich App 729-730.
Defendant relies on Griggs v Budd Co, 90 Mich App 649; 282 NW2d 431 (1979), lv den 407 Mich 928 (1979), a case which we find to be clearly distinguishable. In Griggs the plaintiff suffered a work-related aggravation of a back injury while employed by defendant. She received compensation for the injury. Plaintiff was disabled but recovering when she suffered further aggravation of the back injury while in a nonwork-related bus accident. She brought an action against the bus authority and recovered a settlement, and defendant subsequently sought reimbursement out of the third-party recovery. The WCAB denied reimbursement and a panel of this Court reversed. The Court observed that an employer may be liable for compensation for aggravation of a compensable injury by a third party where the aggravation follows as a sequence and natural result of the original injury or where the intervening cause is reasonably foreseeable and does not produce an injury different in kind, or wholly disconnected, from the original injury. The Griggs Court permitted reimbursement, finding that the defendant’s right to reimbursement turned upon its liability to pay compensation for the aggravation.
In Griggs, unlike the present case, the second or aggravating injury for which compensation was payable was the same injury which created liability in a third party. In the instant case the WCAB determined that plaintiff sustained a new work-related injury in February or June, 1973. No appeal was taken from the board’s factual findings and there is no basis for disputing this aspect of the board’s decision. We find that, since the 1973 injury was factually determined to be a new injury and since no third-party liability arose out of the 1973 injury, reimbursement or credit from the prior third-party recovery was not available under the statute. We agree with the following conclusion of the WCAB:
"The instant case presents us with the exact opposite factual situation from those involved in the medical treatment aggravational cases and Griggs, supra. Here, it was plaintiffs original August 3, 1967, work-related injury which simultaneously created the third party liabilities, and for which she successfully recovered at law. Defendant has been properly and fully reimbursed for the compensation which it paid for plaintiffs original compensable injuries. Plaintiffs subsequent injuries in January or February, 1973, and on June 14, 1973, were in no manner 'caused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages * * Therefore, there is no legal or statutory basis whatsoever for giving defendant any reimbursement or future credit rights out of the proceeds of plaintiffs previous third party recovery with respect to the compensation which it is obligated to pay for her 1973 injuries.”
We also observe that there is nothing to indicate that plaintiff’s recovery against the manufacturer of the press included any compensation for her 1973 injury. Denying defendant’s claim for a credit does not amount to a double recovery for plaintiff.
Finally, the WCAB did not err in awarding 12% interest on all compensation payments from the date each payment was due. MCL 418.801(5); MSA 17.237(801X5); Selk v Detroit Plastic Products, 419 Mich 1; 345 NW2d 184 (1984).
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Per Curiam.
Defendant appeals by leave granted from a February 8, 1983, opinion and order of the Workers’ Compensation Appeal Board which modified the decision of the hearing referee. The board transformed a closed award of benefits into an open award and reversed the decision of the hearing referee by granting plaintiff the maximum $1,500 penalty for defendant’s failure to pay the closed award pending appeal.
Plaintiff, Bernice Woods, worked as a part-time employee of defendant, Sears, Roebuck & Company, in October of 1966. She became a full-time employee on June 10, 1967. Her duties involved unloading window shades from trucks, as well as refilling bins with window shades. She also handled curtain rods, chair backs and chair seats. The various items weighed between 20 and 30 pounds.
On June 30, 1970, plaintiff slipped and fell at work. Her entire head and back hit the floor. She also injured her right foot. Plaintiff missed some work because of this fall. Four to five months after this fall, plaintiff’s back began to cause her discomfort. She was then transferred to the men’s department, which had a concrete floor. This job did not require heavy lifting. However, she was required to lift luggage. Plaintiff’s back condition worsened and she was hospitalized for two weeks in 1972.
Plaintiff requested a transfer to the girl’s department because she would be able to walk on a rug instead of standing on concrete. The work in the girl’s department was also lighter.
In 1977, plaintiff again slipped and fell while carrying merchandise. She reported this incident to her employer and underwent treatment for approximately one week. Dissatisfied with the care and treatment she was receiving through her employer, she consulted her personal physician. Even though plaintiff continued to experience back discomfort, she continued to work until July 26, 1977. At that time, she experienced pain in her lower back. Because of the pain she took a leave of absence in August and was hospitalized for a week. She did not return to work. Plaintiff testified that the pain in her tail bone, and her arthritic condition, disabled her from functioning while "walking too much”.
The hearing referee found that plaintiff was disabled for a closed term and awarded benefits accordingly. Plaintiff appealed to the Workers’ Compensation Appeal Board, alleging that she should be awarded a continuing disability. Defendant also appealed from the referee’s award, arguing that plaintiff was not disabled at all. Defendant, however, withdrew its appeal. The Workers’ Compensation Appeal Board ruled that plaintiff continued to be disabled and modified the hearing referee’s decision accordingly. Defendant now appeals from the decision of the Workers’ Compensation Appeal Board.
Defendant first argues that the evidence does not establish that plaintiff suffered a permanent disability. This Court’s review of the Workers’ Compensation Appeal Board’s decision is limited to questions of law and is restricted to whether there is any competent evidence to support the findings of the appeal board in the absence of fraud. Upton v General Motors Corp, 124 Mich App 61; 333 NW2d 384 (1983), lv den 417 Mich 1100.12 (1983). It is for the appeal board as the trier of fact, not for this Court, to weigh the credibility of the evidence and to draw reasonable inferences from the established facts. Torres v Armond Cassil Co, 115 Mich App 690; 321 NW2d 776 (1982), lv den 417 Mich 899 (1983). Findings by the appeal board regarding whether a disability exists, Dressler v Grand Rapids Die Casting Corp, 402 Mich 243; 262 NW2d 629 (1978), as well as "a determination by the appeal board on the question of whether an employee aggravated a pre-existing injury or condition [are] finding[s] of fact”. Bullard v Titus Construction Co, 118 Mich App 631, 637; 325 NW2d 521 (1982), reh on other grounds 122 Mich App 449; 332 NW2d 501 (1983). An employee’s testimony also constitutes competent evidence supporting an appeal board’s decision that the employee is suffering from a continuing disability. Black v General Motors Corp, 125 Mich App 469; 336 NW2d 28 (1983). This Court must, then, affirm an appeal board’s decision if there is any evidence to support its findings. Torres, supra.
There is ample evidence to support the appeal board’s finding. Dr. Leach, one of plaintiff’s treating physicians, diagnosed plaintiff’s condition as hypertension, coccydynia and arthritis of the lumbar spine. Dr. Leach opined that the fall in 1977 could have activated plaintiff’s back condition and caused her pain in the coccyx. Dr. Leach felt that plaintiff could perform part-time work to see if her condition would worsen.
Dr. Lipton, one of plaintiff’s consulting physicians, diagnosed plaintiff’s condition as chronic coccydynia with probable prior fracture of the second segment of the coccyx, with residual sacro cygeal, joint traumatic arthritis, and chronic degenerative disc disease of the lumbar spine. This indicates degenerative disc disease and not arthritis of the spine.
Dr. Johnson, an orthopedic surgeon who examined plaintiff, diagnosed plaintiffs condition as arthritis, degenerative disc disease, and a ruptured intervertebral disc of her lumbrosacral spine. He opined that the changes in plaintiffs spine were either caused or aggravated by plaintiffs fall at work in 1977. He found that the ruptured disc resulted from a traumatic incident and was not caused by a gradual degenerative process. Dr. Johnson concluded that plaintiff could not perform a job requiring lifting, bending, sitting, or prolonged walking. This disability he felt would continue indefinitely.
Despite this evidence, defendant contends that the appeal board should have based its decision on the testimony of defendant’s consulting physician, Dr. Austin. Contrary to defendant’s assertion, the appeal board considered Dr. Austin’s testimony, stating:
"Donald C. Austin, M.D., examined plaintiff on September 8, 1978. While Dr. Austin testified to x-ray findings indicative of degenerative arthritis more predominant in the lumbar area and narrowing of the disc spaces at L3-L4 and L4-L5, similar to Dr. Lipton, Dr. Austin attributed same to plaintiff’s weight. Based on what he considered normal examination findings with no objective evidence to support plaintiff’s complaints, Dr. Austin opined there is no physical reason why plaintiff cannot return to work. Dr. Austin did not perform the appropriate tests and therefore could offer no opinion regarding the coccydynia diagnosed by Drs. Leach and Lipton. Judge Brasseur found plaintiff has recovered as of the date of this examination.”
The appeal board decided not to give credence to Dr. Austin’s testimony. It is for the appeal board as a trier of fact to judge the credibility of the testimony and the weight it is to be given. Rea v General Electric Co, 35 Mich App 573; 192 NW2d 549 (1971).
Despite the fact that there was ample evidence to support the appeal board’s decision, defendant contends that medical testimony supported two equal inferences which nullifies plaintiffs claim as a matter of law. Defendant bases this part of its argument on the testimony of Dr. Leach. Dr. Leach testified that plaintiffs work-related fall could have aggravated her back condition. Dr. Leach also testified that it is possible that plaintiffs present condition could be the same if she had never worked for defendant. Defendant relies on Putnam v Beechler, 299 Mich 552; 300 NW 880 (1941), for the proposition that evidence which supports two equal inferences does not support a claim of disability as a matter of law. Defendant’s reliance on Putnam is misplaced. Contrary to the facts in the cases cited in Putnam, the defendant herein is not alleging that plaintiffs condition would have occurred regardless of whether or not she worked. Putnam, and the cases therein, involved injuries which occurred without evidence of an accident; the case herein involves whether the accident caused the condition. An inference of an accidental injury does not have to be made in the instant case because the accident is an established fact. Defendant’s argument is without merit.
Defendant next argues that the appeal board erred in concluding that there was no ongoing dispute that plaintiff was entitled to a closed award of benefits after defendant withdrew its claim for review. Upon making this finding, the appeal board invoked the penalty provision of the Worker’s Disability Compensation Act. MCL 418.801(2); MSA 17.237(801)(2).
The penalty provision states:
"(2) If weekly compensation benefits, accrued weekly benefits, medical bills, or travel allowance are not paid within 30 days after becoming due and payable in cases where there is not an ongoing dispute, $50.00 per day shall be added and paid to the worker for each day over 30 days in which the benefits, medical bills, or travel allowance are not paid. Not more than $1,500.00 in total may be added pursuant to this subsection.” MCL 418.801(2); MSA 17.237(801X2).
This penalty provision does not take effect if there is an ongoing dispute. Perry v Sturdevant Mfg Co, 124 Mich App 11; 333 NW2d 366 (1983). Defendant contends that, despite its withdrawal of its claim for review, the issue of whether plaintiff was entitled to a closed term of disability remained an ongoing dispute. In DeKind v Gale Mfg Co, 125 Mich App 598, 608; 337 NW2d 252 (1983), lv den 418 Mich 852 (1983), this Court stated:
"If the employer chooses to demand a hearing, there is an ongoing dispute. In Charpentier [v Canteen Corp, 105 Mich App 700; 307 NW2d 704 (1981)], the Court held that an award is to be considered disputed while review or appeal is pending and during the time periods provided for filing a claim for review or for seeking an appeal.”
When defendant withdrew its claim for review there was no appeal pending contesting the validity of the hearing referee’s finding of a closed term of disability. Since defendant could not have subsequently filed another claim for review, there was no longer an ongoing dispute over plaintiffs enti tlement for payment of the closed term of disability. Defendant, however, argues that the appeal board had an obligation to conduct a de novo review, Franks v White Pine Copper Div, Copper Range Co, 122 Mich App 177; 332 NW2d 447 (1982), and therefore there was an ongoing dispute. While the appeal board had the obligation to conduct a de novo review, it has no obligation to review issues raised by a party who has not filed a claim for review. Nelson v General Motors Corp, 122 Mich App 499; 332 NW2d 514 (1983), lv den 417 Mich 1098 (1983). Since the appeal board had no obligation to review the award of a closed term of disability benefits, there was no longer an ongoing dispute as to that issue and defendant became liable for the penalty for not paying these benefits. We, therefore, affirm the decision of the appeal board.
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Per curiam.
Defendant appeals as of right from an order of the trial court granting summary judgment under GCR 1963, 117.2(3) to plaintiff in its action for declaratory relief.
Plaintiff is the insurer of an ice cream truck owned by Mr. Jolly, Inc. On June 16, 1979, this. truck was parked in a street in Inkster, Michigan. After purchasing some ice cream, nine-year-old Craig Turner stood next to the truck, waiting for traffic to clear so that he could cross the street. At that moment, an uninsured automobile driven by Dennis Cooper struck the ice cream truck, knocking it against Craig Turner. Craig was pinned under the ice cream truck and suffered a broken right leg and severe lacerations on his right ankle and left knee.
Defendant claimed entitlement to uninsured motorist benefits pursuant to the policy issued by plaintiff to Mr. Jolly, Inc., and filed a demand for arbitration. Plaintiff then filed this action for declaratory judgment and its motion for summary judgment. The trial court ruled that defendant was not entitled to recover under the policy because the ice cream truck was not being used as a motor vehicle at the time Craig was hit, but rather as a store. The court further found that Craig was not an insured under the policy because he was not entering, alighting from or occupying the ice cream truck at the time he was injured.
On this appeal, we must determine whether Craig is entitled to recover uninsured motorist benefits pursuant to plaintiffs insurance policy. Under the terms of the insurance policy issued by plaintiff, defendant is entitled to recover uninsured motorist benefits only if (1) Craig’s injuries arose out of the use of a motor vehicle and (2) Craig qualifies as an "insured” under the policy. Under the facts of this case, Craig is an "insured” within the meaning of the policy only if he sustained injury "while in, upon, entering or alighting from” the ice cream truck. If, as a matter of law, defendant was unable to satisfy both conditions (1) and (2), then summary judgment was properly entered for plaintiff. Because we hold that Craig was not "in, upon, entering or alighting from” the ice cream truck within the meaning of the insurance policy, we affirm the trial court’s order of summary judgment.
Our Supreme Court previously has had occasion to construe similar language in an insurance policy. In Nickerson v Citizens Mutual Ins Co, 393 Mich 324; 224 NW2d 896 (1975), the plaintiff was a passenger in an automobile insured by Citizens Mutual. The car stalled and plaintiff got out to seek assistance. As plaintiff walked to the front of the car, an automobile driven by an uninsured motorist struck the insured automobile from behind, pushing it against plaintiff, who suffered severe injuries. Under the terms of Citizens Mutual’s policy, plaintiff was eligible for uninsured motorist benefits if he was "occupying the insured automobile”. The policy defined "occupying” as "in or upon or entering into or alighting from”. Id., p 328.
The Supreme Court, mindful of the rule that language in an insurance policy is to be strictly construed against the insurer, rejected the approach employed by some jurisdictions that physical contact was a prerequisite to recovery under the provision at issue. Instead, the Court held that the plaintiff was an "assured” under the policy, "due to his immediate prior 'occupying’ of the insured vehicle and his subsequent injury arising out of the use or repair of the same vehicle”. Id., p 331.
The "occupying, entering into, or alighting from” language has arisen in cases before this Court in a related, though different, context. Under the no-fault act, injury which arises out of the use of a parked vehicle is generally not compensable. However, if "the injury was sustained by a person while occupying, entering into, or alighting from the vehicle”, then the injury is deemed to have arisen "out of the ownership, operation, maintenance, or use of a parked vehicle as a motor vehicle” and is compensable. MCL 500.3106; MSA 24.13106.
This Court has not limited recovery under this no-fault provision to persons injured while actually inside the vehicle at the time of the injury. Dowdy v Motorland Ins Co, 97 Mich App 242, 248; 293 NW2d 782 (1980). However, even where this Court has extended the "in, upon, entering into or alighting from” clause to a person standing outside of the vehicle, the person had at least physically occupied the vehicle immediately prior to the accident. See Royston v State Farm Mutual Automobile Ins Co, 130 Mich App 602; 344 NW2d 14 (1983). (The process of "alighting” from a vehicle was completed where plaintiff had left the cab of his truck and walked to the rear of the vehicle when the elevator collapsed.); Griffin v Lumbermens Mutual Casualty Co, 128 Mich App 624; 341 NW2d 163 (1983) (Plaintiff who got out of his truck and climbed half-way up the flight of stairs on to the loading dock, turned to go back to the truck and slipped, was not injured while "occupying” his truck within the meaning of § 3106); Krueger v Lumbermens Mutual Casualty Co, 112 Mich App 511; 316 NW2d 474 (1982) (Plaintiff had not finished "alighting from” a vehicle when he was injured as a result of his climbing out of a truck, placing his right foot on the ground and his left foot into a hole in the ground.)
It is undisputed that Craig Turner stood outside of the ice cream truck during the course of his purchase; at no time did he enter into, occupy, or otherwise make physical contact with the truck. Neither the plain language of the policy clause nor prior case law would permit us to interpret Craig’s activity as "in, upon, entering into or alighting from” the ice cream truck. Even if we so extended the language, plaintiff would have a strong argument that Craig had finished "alighting from” the truck at the time he was hit. We, therefore, conclude that Craig was not an "insured” under the policy issued by plaintiff.
Our disposition of this case renders it unnecessary to address defendant’s claim that the trial court erred in finding that Craig’s injuries did not arise out of the use of the ice cream truck as a motor vehicle. Defendant is not entitled to uninsured motorist benefits because Craig was not injured while in, upon, entering into or alighting from the ice cream truck.
Affirmed.
We do not purport to address the issue of whether plaintiff is liable to Craig for personal protection insurance benefits under Michigan’s no-fault act, MCL 500.3101 et seq.; MSA 24.13101 et seq. This case involves defendant’s attempt to recover noneconomic loss; i.e., an amount beyond the personal protection insurance benefits.
A similar two-tiered approach has been employed by this Court in the context of the no-fault act, as well. For example, in determining whether the parked vehicle exclusion applies, MCL 500.3106; MSA 24.13106, the courts have first asked whether the claimant fits into one of the three categories of § 3106. If so, the next question is whether the motor vehicle was being used as a motor vehicle, i.e., whether "a causal connection was established between the ownership, operation, maintenance or use of the vehicle and the subsequent injury”. Dowdy v Motorland Ins Co, 97 Mich App 242, 250; 293 NW2d 782 (1980). Also see, Shinabarger v Citizens Mutual Ins Co, 90 Mich App 307; 282 NW2d 301 (1979), lv den 407 Mich 895 (1979).
Other cases have similarly broadly construed the term "occupy” in the no-fault provisions dealing with an injured employee and insurer priority set forth in MCL 500.3114; MSA 24.13114. See, Kalin v Detroit Automobile Inter-Ins Exchange, 112 Mich App 497; 316 NW2d 467 (1982); and Hathcox v Liberty Mutual Ins Co, 90 Mich App 511; 282 NW2d 374 (1979), where panels of this Court relied on the rule in Nickerson, supra, that a statutory "occupant” must have, at least, actually occupied the vehicle immediately prior to the accident.
The issue of whether a vehicle ceases to be "used as a motor vehicle” within the meaning of the no-fault act, when it functions in another capacity, was recently addressed by this Court in Johnston v Hartford Ins Co, 131 Mich App 349; 346 NW2d 549 (1984). Johnston involved an employee who was injured while operating a mobile crane. Our research discloses two cases in other jurisdictions where the subject motor vehicle was an ice cream truck, Chronister v State Farm Mutual Auto Ins Co, 72 NM 159; 381 P2d 673 (1963), and Handley v Oakley, 10 Wash 2d 396; 116 P2d 833 (1941). Although we do not purport to agree or disagree with those decisions, both foreign courts refused to construe the applicable automobile insurance contracts as providing coverage when the injury, occurred in connection with the operation of a parked ice cream truck. | [
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Per Curiam.
Plaintiffs, who are faculty members of East Jackson Middle School, and their spouses, appeal as of right from an order granting accelerated judgment in favor of Manyam & Associates, Inc. (hereafter defendant) on the basis that the statute of limitations applicable to state-licensed architects and engineers, 1967 PA 203, MCL 600.5839; MSA 27A.5839, barred suit against the defendant. Our review persuades us that the decision of the trial court was correct and we affirm.
Between April 22, 1982, and September 10, 1982, the plaintiffs filed separate actions against defendant Manyam and others for physical injuries allegedly caused by the defective design, installation, operation, and maintenance of the school’s heating-ventilation-air conditioning system (hvac system). Subsequently, these suits were consolidated for trial. The defendant, a professional engineering firm licensed by the State of Michigan, designed the hvac system. Construction of the school was completed in 1973 and classes began in September of that year. The defendant performed its last services in connection with the hvac system sometime before April 30, 1975, the date on which the State Fire Marshal gave final approval to the hvac system.
The plaintiffs alleged that the faulty design and construction of the hvac system created harmful atmospheric conditions within the school. Plaintiffs claimed that continuous exposure to these conditions over time caused them to suffer respiratory problems, sensory loss, insomnia, damage to the nervous system, and impairment of physical strength. According to one plaintiff’s complaint, which is said to be representative of the remaining complaints, prolonged exposure to the polluted environment caused physical illness and disability by September, 1979. The plaintiffs averred that the defendant breached express and implied warranties and negligently designed and constructed the hvac system.
At the motion hearing, plaintiffs’ attorney related that the plaintiffs discovered the defect in the hvac system in early 1981. The trial court originally denied defendant’s motion, ruling that defendant failed to show that the system was completed prior to September 10, 1976. After defendant secured affidavits curing this evidentiary problem, the trial court, after rehearing, ruled that the architects’ statute barred the suit since the plaintiffs filed their actions in 1982, more than six years after the completion and occupancy of the school. The trial judge also rejected the plaintiffs’ claims regarding the unconstitutionality of the statute and the applicability of the statute of limitations set forth in the Uniform Commercial Code and the statute of limitations for general breaches of warranties. On appeal plaintiffs specifically renew their claims that the engineers and architects’ statute is unconstitutional and urge that their claim is a product liability action governed by the "discovery” statute of limitations set forth in MCL 600.5805(9); MSA 27A.5805(9).
Plaintiffs contend that the engineers and the architects’ statute is unconstitutional as applied to them because it does not afford them a reasonable time in which to bring suit. Plaintiffs assert that they did not recognize the causal connection between their health problems and the hvac system until after the applicable six-year period. Hence, they urge that the statute deprives them of due process of law.
At the time the instant suits were commenced, the pertinent provisions of MCL 600.5839; MSA 27A.5839 read:
(1) No person may maintain any action tq recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained as a result of such injury against any state licensed architect or professional engineer performing or furnishing the design or supervision of construction of such improvement more than 6 years after the time of occupancy of the completed improvement, use or acceptance of such improvement.
In O'Brien v Hazelet & Erdal, 410 Mich 1; 299 NW2d 336 (1980), the Michigan Supreme Court considered the constitutionality of this provision in the face of a substantially similar due process challenge. In the four cases consolidated for hearing, the plaintiffs in O'Brien maintained that the engineers and architects’ statute violated their rights of due process because it barred their causes of action before all the necessary elements constituting the cause of action were present. The Supreme Court rejected the plaintiffs’ claims and ruled that the Legislature could constitutionally extinguish the right to recover for damages incurred after the six-year period.
However, the plaintiffs in O'Brien were all injured by alleged design defects that were discovered after the six-year period elapsed. In dicta, the O'Brien Court expressly left open the issue of whether the engineers and architects’ statute is consistent with due process where a plaintiff discovers the injury shortly before expiration of the six-year period:
To a plaintiff whose injury occurred and whose right of action thus vested shortly before expiration of the six-year period, the statute arguably might deny due process by failing to "afford a reasonable time within which suit may be brought”. Price v Hopkin, 13 Mich 318, 324 (1865). However, no case presenting such facts is before us and we intimate no opinion as to the proper resolution of such a case. [410 Mich 15, n 18.]
In this case plaintiffs have asserted that they sustained their injuries during the six-year period, but were unable to discover their causes of action until, after years of exposure, they finally contacted the necessary experts. They assert that the statute, as applied to them, denies them due process by failing to "afford a reasonable time within which suit may be brought.” Price v Hopkin, supra.
We decline the plaintiffs’ invitation to apply the dicta in O’Brien, supra, to the instant case. We do not read MCL 600.5839; MSA 27A.5839 as a "discovery” statute of limitations. Rather, we find that its operation is predicated upon the time of occupancy or use or acceptance of the improvement. We are unable to conclude that the commencement of the six-year limitations period is contingent upon a plaintiff’s injury or discovery of injury. Thus, the plaintiffs’ suggestion that their alleged "continual exposure” is relevant is not helpful.
We reach this conclusion because, as pointed out in O’Brien, the wide-reaching power of the Legislature permits it to entirely abrogate a common-law right. As to claims filed more than six years after occupancy, use, or acceptance of the completed improvement, we believe that the intent of the Legislature was that the statute be one of repose— no action can be filed after that period of time has elapsed. The fact that the Legislature amended the statute in 1985 to expressly provide a "discovery” statute of limitations where gross negligence is pleaded but failed to similarly amend the statute’s six-year limitations period for claims such as the instant ones for ordinary negligence buttresses our conclusion that the statute is one of repose. The instant legislation was enacted pursuant to the police power and bears a reasonable relation to the permissible legislative objective of limiting the liability of architects and engineers "in order to relieve them of the potential burden of defending claims brought long after completion of the improvement.” O’Brien, supra, p 14. Plaintiffs’ failure to timely institute suit upon discovery of their causes of action during the six-year period is fatal to their claims.
Plaintiffs also attempt to challenge the constitutionality of the engineers and architects’ statute on the basis that it violates the constitutional prohibition against special legislation. Const 1963, art 4, § 29. This argument is raised for the first time on appeal. For this reason, we decline to consider the plaintiffs’ argument. Cliffs Forest Products v Al Disdero Lumber Co, 144 Mich App 215, 221; 375 NW2d 397 (1985), lv den 424 Mich 896 (1986).
Plaintiffs also submit that the engineers and architects’ statute is not applicable to the case at bar because the hvac system is not an "improvement to real property” within the meaning of the engineers and architects’ statute. Plaintiffs assert instead that the hvac system is a product which the defendant placed in the marketplace and, as such, the plaintiffs’ complaints are controlled by the three-year "discovery” statute of limitations in MCL 600.5805(9); MSA 27A.5805(9).
This claim is also without merit. While no Michigan case law has specifically defined the term "improvement to real property” within the meaning of the engineers and architects’ statute, we are persuaded by the rationale of the federal appellate decision in Adair v The Koppers Co, Inc, 741 F2d 111 (CA 6, 1984). Considering the Ohio architects’ statute, the Adair court found that a conveyor system used to transport coal in a factory was an improvement to real property. The court ruled that there was "no question of material fact concerning the nature of the conveyor as an integral component of an essential system, its usefulness to the purpose of the factory, and its permanence.” Id., p 116.
A common-sense application of the term convinces us that the hvac system in this case is integral to the use of the school. We reject the plaintiffs’ product liability allegations for the same reasons that the Adair court did:
This would be contrary to the intent behind section 2305.131, which protects designers and builders from all actions arising from defects in an improvement. (Citation omitted). Although Adair cites many cases to support his contention, none deals with the situation before us—an attempt to maintain a product liability action where the defective entity has been held an improvement and where a negligence action has been held barred by the statute of repose of designers and builders. We decline to undercut the protective purpose of section 2305.131 by excluding a "product liability” action for defects in an improvement from the coverage of the statute. [741 F2d 116.]
Accordingly, we conclude that the term "improvement to real property” should be construed to include the design of the hvac system and to preclude maintaining a cause of action under MCL 600.5805(9); MSA 27A.5805(9).
For the foregoing reasons the decision of the trial court granting accelerated judgment to defendant Manyam is affirmed.
The Legislature has recently amended the engineers and architects’ statute by adding an alternative time limitation for cases involving gross negligence. If an injury is caused by the defendant’s gross negligence, the action must be commenced within six years from time of occupancy, use, or acceptance of the improvement, "or one year after the defect is discovered or should have been discovered . . . .” However, no such action shall be maintained more than ten years after the time of occupancy of the completed improvement, use, or acceptance of the improvement. MCL 600.5839; MSA 27A.5839, as amended by 1985 PA 188. This amendment applies only to causes of action accruing on or after March 31, 1986, the effective date of the 1985 amendment. Id. Thus, the 1985 amendment is inapplicable to the instant case. | [
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T. Roumell, J.
In these consolidated cases, plaintiffs seek to recover damages for the death of Alexander Mshar and personal injuries suffered by the other plaintiffs. Plaintiffs’ complaints alleged that the death and injuries were caused by carbon monoxide poisoning from a defective furnace in a home belonging to plaintiffs James and Geraldine Mshar. According to the complaints, the home was purchased on land contract and thereafter James and Geraldine Mshar sought an FHA-insured loan from defendant Manufacturers Hanover Mortgage Corporation. The complaints allege that a prerequisite for such a loan is an inspection of the heating system, that Manufacturers Hanover employed or recommended a contractor to make the inspection, that the contractor was unlicensed and performed the inspection negligently, and that the negligent performance of the inspection was a proximate cause of the subsequent death and injuries. Manufacturers Hanover moved for summary judgment pursuant to GCR 1963, 117.2(1), and the circuit court granted the motion, holding that Manufacturers Hanover owed no duty to the plaintiffs. Plaintiffs’ motion for leave to amend their complaints was denied, and plaintiffs appeal as of right.
A motion for summary judgment pursuant to GCR 1963, 117.2(1) tests the legal sufficiency of plaintiffs’ pleadings; it should be granted only if, accepting as true all well-pled facts in the complaint, plaintiffs’ claims are so clearly unenforceable as a matter of law that no factual development could possibly justify a right to recovery. See, for example, Schwartz v Michigan Sugar Co, 106 Mich App 471, 476; 308 NW2d 459 (1981). Where there is no legal duty, there can be no actionable negligence. Butrick v Snyder, 236 Mich 300, 306; 210 NW 311 (1926). Here, James and Geraldine Mshar claimed that a duty on the part of Manufacturers Hanover arose from the employment or recommendation of the contractor who made the inspection. The remaining plaintiffs rely on a theory explained in 2 Restatement Torts, 2d, § 324A, p 142:
"One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of a third person or his things, is subject to liability to the third person for physical harm resulting from his failure to exercise reasonable care to protect his undertaking, if
"(a) his failure to exercise reasonable care increases the risk of such harm, or
"(b) he has undertaken to perform a duty owed by the other to the third person, or
"(c) the harm is suffered because of reliance of the other or the third person upon the undertaking.”
The existence of a duty on the part of Manufacturers Hanover to the other plaintiffs therefore depends on the existence of a duty to James and Geraldine Mshar.
The Secretary of Housing and Urban Development is authorized by 12 USC 1709 to insure mortgages on the terms specified in that section upon application of the mortgagee. The secretary has promulgated rules governing applications for such insurance, see 24 CFR 203.1 et seq., and among those rules is one requiring that buildings on the property conform to the minimum standards adopted by the department. See 24 CFR 203.39, 200.929. Plaintiffs point out that some of the standards involve safety conditions, and plaintiffs would therefore infer that a mortgagee who has a required inspection of the building performed in the course of an application for insurance owes a legal duty of care to the mortgagor. However, an examination of the terms specified for insurance in 12 USC 1709 and the rules governing applications show that the concerns to which the statute and the rules are addressed are (1) the availability of mortgages on terms more favorable to the mortgagor than the market would otherwise provide, and (2) the security of the government’s insurance funds. Safety conditions in buildings on the mortgaged property are relevant only because they affect the value and marketability of the property and thus affect the risk assumed by the government as insurer of the mortgage. We therefore conclude that the federal statute and rules, including the inspection requirements, were not intended to impose upon the mortgagee any duty of care concerning safety.
Our conclusion is supported by cases dealing with analogous problems under predecessor statutes. See, for example, United States v Neustadt, 366 US 696, 709; 81 S Ct 1294; 6 L Ed 2d 614 (1961), in which the Court discussed the legislative history of the predecessor statute as follows:
"[I]t was repeatedly emphasized that the primary and predominant objective of the appraisal system was the 'protection of the Government and its insurance funds’; that the mortgage insurance program was not designed to insure anything other than the repayment of loans made by lender-mortgagees, and that 'there is no legal relationship between the FHA and the individual mortgagor.’ Never once was it even intimated that, by an FHA appraisal, the Government would, in any sense, represent or guarantee to the purchaser that he was receiving a certain value for his money.” (Footnotes omitted.)
See also Cason v United States, 381 F Supp 1362, 1367 (WD Mo, 1974), in which the court discussed Neustadt as follows:
"It is now settled, however, that the primary and predominant objective of the FHA appraisal system is the protection of the Government and its insurance funds; that the mortgage insurance programs do not insure anything other than the repayment of loans made by lender-mortgagees; 'and that "there is no legal relationship between the FHA and the individual mortgagor.” ’ * * * Although Neustadt was based on a different theory of liability, the Court believes that the Supreme Court completely rejected the notion that Congress intended to establish a duty of due care for the benefit of mortgagors such as plaintiffs.”
Plaintiffs’ reliance on Block v Neal, — US —; 103 S Ct 1089; 75 L Ed 2d 67 (1983), is misplaced. In that case, the plaintiff was a recipient of a rural housing loan obtained from the Farmers Home Administration pursuant to 42 USC 1471 et seq. The Court held that the plaintiff’s action against the government for negligent performance of a voluntary undertaking to supervise construction of the house was not barred by the "misrepresentation” exception to the Tort Claims Act, 24 USC 2680(h). Because the Court expressly declined to decide whether plaintiff had stated a cause of action, see — US —, Block has no relevance to the issues presented here.
Also misplaced is plaintiffs’ reliance on Connor v Great Western Savings & Loan Ass’n, 69 Cal 2d 850; 73 Cal Rptr 369; 447 P2d 609 (1968). We need not decide whether Connor would be followed under Michigan law, because Connor is distinguisha ble on the facts. In Connor, defendant was not only the mortgagee, but also an active participant in the construction of the mortgaged homes, with the right to exercise extensive control of the project. Defendant’s involvement in the project placed it in a position different from that of the usual money lender. Here, in contrast, no well-pled facts in plaintiffs’ complaints suggest that defendant’s involvement was greater than that of an ordinary mortgagee.
In Smith v Allendale Mutual Ins Co, 410 Mich 685, 705-706; 303 NW2d 702 (1981), the Court considered the liability of a fire insurer for injuries sustained as a result of fire hazards not detected and brought to the insured’s attention as a result of the insurer’s inspection of the insured’s premises. The Court held:
"[T]he threshold requirement of an undertaking to render services to another is lacking in these cases. An insurer’s inspection of an insured’s premises for fire hazards does not in itself demonstrate an undertaking to render fire inspection and prevention services to the insured. Absent evidence that the insurer agreed or intended to provide services for the benefit of the insured, there is no basis for a conclusion that such inspections are conducted other than to serve the insurer’s interests in underwriting, rating and loss prevention and hence there is no undertaking. An insurer who does not undertake to inspect for the insured’s benefit owes no duty to the insured or the insured’s employees to inspect with reasonable care; such an insurer is, however, subject to liability if it engages in affirmative conduct creating or enlarging a fire hazard.” (Emphasis in original.)
Similarly, there is no basis here for a conclusion that the inspection was conducted for any reason other than to serve the mortgagee’s interest in obtaining insurance pursuant to 12 USC 1709. No well-pled facts in plaintiffs’ complaints suggest that defendant agreed or intended to have the inspection performed for plaintiffs’ benefit or that defendant engaged in affirmative conduct creating or enlarging a safety hazard. We therefore conclude that Manufacturers Hanover owed no duty to the plaintiffs.
Plaintiffs also argue that they have stated a cause of action for negligent misrepresentation. See, for example, Williams v Polgar, 391 Mich 6; 215 NW2d 149 (1974). However, this theory has no independent significance here. The Court in Williams expressly recognized that the existence of a duty of care was a prerequisite for such an action. 391 Mich 18-19. For the reasons previously stated, no duty was presented here.
Because, as plaintiffs concede, their proposed amended complaints proffered no legal theories different from those pled in their previous complaints, the circuit court did not err by denying their motion for leave to amend the complaints. Such a motion is properly denied where an amendment would be futile; see Ben P Fyke & Sons v Gunter Co, 390 Mich 649, 656; 213 NW2d 134 (1973).
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Per Curiam.
Plaintiffs appeal as of right from the dismissal of their commercial contract action against defendants. The circuit judge declined the exercise of jurisdiction based on the doctrine of forum non conveniens.
Plaintiffs are both limited partnerships with offices in Oakland County. The sole general partner of each limited partnership is a resident of Oakland County. Plaintiffs held an interest in a motel in Dayton, Ohio, known as the Mall Motor Inn. Defendant Honeywell is a Delaware corporation with its principal place of business in Minnesota. It also does business in both Ohio and Michigan. Defendant Reliance is a Delaware corporation with its principal place of business in Cleveland. It also does business in Michigan.
On June 11, 1976, plaintiffs sued Honeywell and two other parties in the Oakland Circuit Court seeking damages for the failure of the air-conditioning system at the Dayton Mall Motor Inn. On June 28, 1976, Honeywell removed the action to the United States District Court for the Eastern District of Michigan. On July 27, 1976, Honeywell moved for a change of venue to the Southern District of Ohio. The district court judge denied the motion. Plaintiffs were allowed to file a second amended complaint adding a Michigan corporation as a party defendant. The amendment destroyed diversity jurisdiction and the case was remanded to the Oakland Circuit Court. Discovery continued and a trial was scheduled for September 30, 1980. On January 1, 1981, the circuit court ordered the case to be mediated. During 1981, plaintiffs settled with three of the defendants. Trial was again scheduled to commence on September 18, 1981. This date was adjourned three more times and finally set for March 17, 1982. On this date, the trial court suggested to counsel that the case might better be tried in Ohio, then adjourned the trial again, setting a new trial date for May 17, 1982. On May 13, 1982, Honeywell filed its motion for dismissal based on forum non conveniens. After hearing arguments from all of the parties, the circuit court granted the motion. The dismissal was conditioned upon defendant Honeywell’s promise not to plead the statute of limitations as a defense to plaintiffs’ Ohio complaint. Plaintiffs appeal as of right. Defendant Reliance Electric concurs, in plaintiffs’ appeal.
The trial judge gave the reasons for his decision in a clear and cogent written opinion incorporated in the judgment. He stated:
"Resolution of the controversy will require application of Ohio law which is not familiar to the court and would impose a burden on the court; would require the attendance of numerous Ohio witnesses; involves essentially an Ohio dispute or disputes regarding events which have their situs in Ohio; the dispute related to incidents and physical structures in Ohio; could reasonably necessitate burden and expense for Oakland County of sending an Oakland County jury to Dayton, Ohio, to view the premises; and the crowded docket of Oakland County Circuit and the fairness to the county and the Oakland County residents to sit as a jury on this essentially Ohio case, would not be in the best interests of or convenience of the people of Oakland County and this court.”
The application of the doctrine of forum non conveniens lies in the discretion of the trial judge. Cray v General Motors Corp, 389 Mich 382, 395; 207 NW2d 393 (1973). In Cray, supra, the Supreme Court listed the following factors to be considered and weighed in deciding a motion for dismissal based on forum non conveniens:
"1. The private interest of the litigant.
"a. Availability of compulsory process for attendance of unwilling and the cost of obtaining attendance of willing witnesses;
"b. Ease of access to sources of proof;
"c. Distance from the situs of the accident or incident which gave rise to the litigation;
"d. Enforcibility [sic] of any judgment obtained;
"e. Possible harassment of either party;
"f. Other practical problems which contribute to the ease, expense and expedition of the trial;
"g. Possibility of viewing the premises.
"2. Matters of public interest.
"a. Administrative difficulties which may arise in an area which may not be present in the area of origin;
"b. Consideration of the state law which must govern the case;
"c. People who are concerned by the proceeding.
"3. Reasonable promptness in raising the plea of forum non conveniens. ”
Plaintiffs first argue that defendant Honeywell’s motion to dismiss was untimely. Plaintiffs compare the motion for dismissal based on forum non conveniens to a motion for a change of venue. A motion for a change of venue must generally be filed before, or at the time, the defendant files an answer. GCR 1963, 401. Although we agree with plaintiffs that analogies can be drawn between changes of venue and dismissals based on forum non conveniens, they are not the same thing. The court rules governing changes of venue cannot reasonably be understood to apply to dismissals based on forum non conveniens. We conclude that the court rules governing changes of venue do not apply to dismissals based on forum non conveniens.
Because the court rules governing changes of venue do not specifically apply to dismissals based on forum non conveniens, the mandatory time limits on venue motions cannot be applied here. The court rules do not specifically discuss motions for dismissals based on forum non conveniens. We do believe that the court rules provide a good guideline for assessing the timeliness of a motion for dismissal based on forum non conveniens. Whether such a motion is compared to a motion for a change of venue or to a motion to dismiss for want of jurisdiction (GCR 1963, 116.1) the same standard of timeliness is set. A defendant should make its motion before, or at the time of, its answer. Although a motion for dismissal based on forum non conveniens may be granted despite its being untimely, timeliness is an important factor. Cray, supra, p 396. We believe that a motion for dismissal based on forum non conveniens is untimely if filed after a defendant’s answer. Timeliness, however, is merely one factor to be considered by the trial judge.
In the present case, several trial dates had been set before the motion to dismiss was brought. The subject of a dismissal based on forum non conveniens did not arise until it was brought up by the trial judge on a date set for trial. Although no per se rule regarding timeliness has been established, courts in other jurisdictions have uniformly rejected last-minute requests for a dismissal based on forum non conveniens. Bussanich v United States Lines, Inc, 74 App Div 2d 510; 424 NYS2d 449 (1980); Abkco Industries, Inc v Lennon, 52 App Div 2d 435; 384 NYS2d 781 (1976); Deupree v Le, 402 A2d 428 (DC App, 1979); Cohane v Arpeja-California, Inc, 385 A2d 153 (DC App, 1978); Wilburn v Wilburn, 192 A2d 797, 801 (DC App, 1963); Fifth & Walnut, Inc v Loew’s, Inc, 76 F Supp 64 (SD NY, 1948). We believe that a dismissal based on forum non conveniens should not generally occur after a trial date has been set, even in the extraordinary case in which plaintiffs choice of forum is supported only by the fact that it was chosen. See Anderson v Great Lakes Dredge & Dock Co, 411 Mich 619, 629; 309 NW2d 539 (1981).
We believe that the balance of factors which might support a decision to decline jurisdiction is quite close in this case, when the factor of timeliness is ignored. Although most of the important events which serve as the basis for this lawsuit occurred in Dayton, Ohio, location of a suit’s subject matter is only one factor to be considered. The plaintiffs are Michigan businesses; the defendants include a Minneapolis business and one headquartered in Cleveland. Although some of the reasons for dismissal stated by the trial judge were weighty ones, we do not think they outweighed the inconvenience caused by the last-minute dismissal. We see nothing in the record which indicates that a jury view of the premises is likely to be required. Although some witnesses are Ohio residents, not all of them are. Defendant Honeywell has not suggested that most of the witnesses to be called are actually residents of Dayton. This is commercial litigation in which the number of eyewitnesses not employed by any of the parties is small. Unlike Anderson, supra (a Michigan-Florida case), matters of the inconvenience of witnesses are of less importance in this Michigan-Ohio case. Finally, little or no weight should be given to any burden imposed on the Oakland County courts and taxpayers in a suit brought by Oakland County plaintiffs. This is clearly not "imported” litigation. In this case, timeliness is the dispositive factor.
Reversed and remanded. Costs to plaintiffs. | [
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MacKenzie, J.
Defendant was charged with assault with intent to commit sexual penetration, MCL 750.520g(1); MSA 28.788(7)(1). His first jury trial ended in a mistrial upon defendant’s motion. Prior to his second trial, defendant unsuccessfully moved to dismiss on double jeopardy grounds. He was subsequently convicted as charged and sentenced to probation for five years, the first year to be served in jail, and ordered to pay costs of $700 and restitution in the amount of $50. Defendant appeals as of right, raising as his sole claim that the trial court erred in denying his motion to dismiss. We conclude that defendant’s retrial was precluded by the double jeopardy clause of the Michigan Constitution, Const 1963, art 1, § 15, and reverse.
At defendant’s first trial, complainant Mark Nelson testified that defendant forced him at knifepoint to a park and there attempted anal penetration. Defendant, on the other hand, claimed that Nelson offered him money, beer, and marijuana for oral sex and that the two proceeded to the park to complete the bargain. Defendant denied ever attempting to force sexual relations on Nelson or attempting to harm him physically.
During the prosecutor’s cross-examination of defendant at the first trial, defendant denied that he had ever previously had, or attempted to have, a homosexual encounter with anyone. In rebuttal, the prosecutor was allowed to introduce certain testimony indicating that defendant had on prior occasions solicited sex from male inmates of a juvenile home where defendant once worked. Michael Cornell testified that, when he was fifteen, defendant had purchased rum for the two of them and, when Cornell agreed to pay for it out of his allowance, defendant suggested he could pay him in another way. Cornell testified that this struck him as "queer” and "faggoty.”
The first trial ended in a mistrial when the prosecutor examined on rebuttal another inmate of the juvenile home, Ray Brown. According to Brown, on an occasion when he and defendant were fighting defendant stated that perhaps they would get along better if he (defendant) gave Brown "a couple of blows.” When Brown testified that he took this offensively and was angry, the prosecutor attempted to elicit a statement that Brown took defendant’s comment sexually, i.e., as meaning "blow jobs.” After Brown repeated only that he took the statement offensively and that it could have meant anything, the prosecutor began impeachment of his own witness in accordance with MRE 607(2)(C). The trial court disallowed this, sustaining defense counsel’s numerous objections. The prosecutor then began questioning Brown about when he first met defendant and the physical plan of the juvenile home. Objections to these questions were sustained on relevancy grounds. The prosecutor continued:
Q. How many floors are there in the Juvenile Home please?
A. Two.
The Court: Just a moment.
[.Defense Counsel]: Objection, Judge. I hate to keep jumping up but the State made certain specific assertions as to what they would prove concerning some prior acts on the part of Mr. Dawson. I fail to understand what the layout of the Juvenile Home was or where the rooms were and all those things have to do with any approach on the part of Mr. Dawson with this boy for some sexual favors. You know, there’s a limit as to what a lawyer ought to do and Dawson is not on trial for how he demeaned himself at the Juvenile [Home]. He said specifically that he would show that Dawson made some sexual contact with this boy, and I suggest that the questions ought to be limited to that.
The Court: [Prosecutor], do you wish to respond?
[Prosecutor]: No, Your Honor.
The Court: The Court will sustain the objection.
Q. (By [the prosecutor]): Can you tell me what floor your room was on that this contact with Dawson occurred?
[Defense Counsel]: Objection. What contact? The boy saw him in a lot of places.
[Prosecutor]: I agree. I agree with that.
[Defense Counsel]: And so I’m objecting to that.
[Prosecutor]: I agree and all. I will withdraw it.
Q. (By [the prosecutor]): Let’s talk about all the contacts you had with Dawson and if you could, please, tell us the first contact you had with Mr. Dawson.
[Defense Counsel]: Objection.
[Prosecutor]: And where that was, excuse me Counsel. I’m not finished with my question.
[Defense Counsel]: Oh, I’m sorry. Go ahead.
Q. (By [the prosecutor]): Can you tell us the first contact you had, where that was and what was said by you and him?
A. No.
[Defense Counsel]: Your Honor, objection. We could be here for the next several weeks for this boy to relate every day and every time he was in contact with Mr. Dawson. Mr. Dawson worked every day and if the boy was housed there they no doubt saw each other every day at great many times during the day. All of that has absolutely nothing to do with this case and is really a stalling tactic on the part of the Prosecutor, and I’m very much surprised.
[Prosecutor]: Well, Your Honor, I’m really at a loss because Counsel first objects. He’s not certain enough. He doesn’t know there could be a lot of contact and now I’m trying to take these contacts contact by contact. It’s in response to his objection.
The Court: The Court will sustain that objection.
Q. (By [the prosecutor]: The Court, strike that. Can you tell us how many contacts you had with Mr. Dawson in your stay there?
[Defense Counsel]: Objection to that, if the Court please.
The Court: Sustained.
Q. (By [the prosecutor]): Can you tell us how many conversations you had with Mr. Dawson?
[Defense Counsel]: Objection.
The Court: Sustained.
Q. (By [the prosecutor]): Can you tell us how many times Mr. Dawson offered you a blow job?
[Defense Counsel]: Objection. There is no testimony on the part of this Witness to that extent and if the Court please, I move for a mistrial. He is misstating the evidence and he knows very well he’s doing it.
The Court: You wish to be heard.
[Prosecutor]: Nope.
The Court: Mistrial granted.
Defendant contends that the mistrial prompted by the prosecutor’s questioning should have barred his retrial on double jeopardy grounds. Specifically, defendant asserts that the prosecutor, through overreaching, precipitated the mistrial. It is unclear whether this assertion is based on state or federal constitutional grounds.
As a general rule, both the federal and state guarantees against being put twice in jeopardy for the same crime do not bar the retrial of a defendant when his prior trial has been terminated upon his successful mistrial motion. People v Tyson, 423 Mich 357, 370; 377 NW2d 738 (1985). An exception to this rule has developed on both the federal and state levels, however, when the motion was precipitated by prosecutorial or judicial impropriety or overreaching. See generally Anno: Double Jeopardy as Bar to Retrial After Grant of Defendant’s Motion for Mistrial, 98 ALR3d 997; Tyson, supra, p 370.
In determining what constitutes such prosecutorial impropriety as will bar a defendant’s retrial after his motion for a mistrial has been granted, different standards have evolved in the federal and state court systems:
The federal standard has evolved through a series of United States Supreme Court cases, culminating in the decision of Oregon v Kennedy, 456 US 667; 102 S Ct 2083; 72 L Ed 2d 416 (1982). In that case, the Oregon Court of Appeals had barred defendant’s retrial for theft of an oriental rug on the ground that the prosecutor’s conduct in asking the complaining witness whether his refusal to do business with defendant was because "he [was] a crook” constituted prosecutorial overreaching sufficient to invoke the protections of the double jeopardy clause. Id., 669.
The Supreme Court reversed, holding that
"[t]he circumstances under which such a defendant may invoke the bar of double jeopardy in a second effort to try him are limited to those cases in which the conduct giving rise to the successful motion for a mistrial was intended to provoke the defendant into moving for a mistrial.” [Id., 679.]
Prior to Kennedy, several federal and state courts had relied on language from earlier Supreme Court cases, which had suggested that the standard was not one of subjective intent to cause a mistrial, but rather "prosecutorial . . . overreaching,” " 'bad-faith conduct by [the] judge or prosecutor,’ ” intended to provoke a mistrial request by the defendant in order to " 'afford the prosecution a more favorable opportunity to convict’ the defendant,” or "motivated by bad faith or undertaken to harass or prejudice,” in analyzing issues of this kind. Since Kennedy, some state courts have opted to offer broader-reaching double jeopardy protection under their own constitutions, and have adhered to the pre-Kennedy standard. [People v Tyson, supra, pp 370-372.]
Assuming that defendant’s position is that his retrial was barred by the double jeopardy clause of the United States Constitution, we must, consistent with our Supreme Court’s analysis in Tyson, apply the Kennedy subjective intent standard to the instant facts and consider whether the prosecutor’s conduct was specifically intended to provoke defendant into moving for a mistrial. We are of the opinion, based upon the above-quoted passage from defendant’s first trial, that the prosecutor’s question, "Can you tell us how many times Mr. Dawson offered you a blow job?” was not the product of a purposeful intent to force defendant into requesting a mistrial. The prosecutor’s question was totally egregious in light of the complete dearth of testimony by Brown that defendant suggested oral sex to him, and was further aggravated by earlier prosecutorial suggestiveness in an at tempt to impeach the witness. Nevertheless, it seems clear that the prosecutor’s conduct was motivated by his willingness to go beyond permissible bounds of questioning at any expense in order to get certain information before the jury, not by any specific intent to provoke a mistrial. We therefore conclude that under the Kennedy standard of prosecutorial impropriety, the double jeopardy clause of the United States Constitution did not preclude defendant’s retrial.
We must next decide whether, for purposes of the double jeopardy clause of the Michigan Constitution, defendant’s retrial was similarly permissible. It is well recognized that state constitutions can provide greater protections than those afforded by the United States Constitution. People v Thompson, 424 Mich 118, 125; 379 NW2d 49 (1985), and cases cited therein. As noted in Tyson, supra, some state courts have since Kennedy opted to offer double jeopardy protection under their constitutions broader than that available under the federal constitution by adhering to standards of prosecutorial overreaching developed by the United States Supreme Court prior to Kennedy See, e.g., State v Oliver, 57 Or App 567; 646 P2d 107 (1982), Commonwealth v Miele, 300 Pa Super 197; 446 A2d 298 (1982); State v Bodley, 394 So 2d 584 (La, 1981), cited in Tyson, supra. See also Pool v Superior Court, 139 Ariz 98, 677 P2d 261 (1984), and State v Kennedy, 295 Or 260; 666 P2d 1316 (1983). The Tyson Court declined to decide whether Michigan should adopt the pre-Kennedy or the Kennedy standard of prosecutorial impropriety. 423 Mich 372.
The double jeopardy clause protects against both multiple prosecutions for the same offense and multiple punishments for the same offense. See, e.g., People v Robideau, 419 Mich 458; 355 NW2d 592 (1984). The multiple prosecutions form of double jeopardy protections addresses the "right to be free from vexatious proceedings,” Robideau, supra, p 485. It protects both the individual’s interest in not having to "twice run the gauntlet,” Green v United States, 355 US 184, 190; 78 S Ct 221; 2 L Ed 2d 199 (1957), and his "valued right to have his trial completed by a particular tribunal,” Wade v Hunter, 336 US 684, 689; 69 S Ct 834; 93 L Ed 974 (1949).
The underlying idea, one that is deeply ingrained in at least the Anglo-American system of jurisprudence, is that the State with all its resources and power should not be allowed to make repeated attempts to convict an individual for an alleged offense, thereby subjecting him to embarrassment, expense and ordeal and compelling him to live in a continuing state of anxiety and insecurity, as well as enhancing the possibility that even though innocent he may be found guilty. [Green v United States, supra, 355 US 187.]
If the purpose of the double jeopardy clause were to penalize the state for conduct preventing a fair trial, it would be reasonable to limit such penalization to instances where a mistrial was intentionally provoked. See State v Kennedy, supra, 295 Or 272-273; 666 P2d 1324. As noted above, however, the purpose of the double jeopardy clause is not to penalize the state, but to protect individuals against prosecutorial harassment. Such harassment can rise not only when a prosecutor intentionally provokes a mistrial, but can also arise when the prosecutor willingly and consciously engages in conduct which he knows is prejudicial, and which cannot be cured by means short of a mistrial, even if he is indifferent to the probability of a mistrial. Under either circumstance, the re- suit is that prosecutorial impropriety forces the defendant to choose between completing a tainted trial or aborting it. In either situation, the burden of a second trial is not attributable to the defendant’s preference for a new trial, but to the state’s readiness to force him to make that choice. See State v Kennedy, supra, 295 Or 276; 666 P2d 1326. It follows that a defendant placed in either situation should be protected by the prohibition against double jeopardy. The United States Supreme Court’s Kennedy subjective intent standard does not permit such a result.
An additional problem with the subjective intent standard is that it places upon the defendant the near impossible burden of proving the prosecutor’s intent. As noted by Justice Stevens in his concurring opinion in Kennedy, "[i]t is almost inconceivable that a defendant could prove that the prosecutor’s deliberate misconduct was motivated by an intent to provoke a mistrial instead of an intent simply to prejudice the defendant.” 456 US 688.
Given these substantial difficulties with the United States Supreme Court’s Kennedy standard, we conclude that that standard does not well serve the purpose of the double jeopardy clause. Accordingly, we decline to adopt that standard in deciding whether a defendant’s successful mistrial motion, predicated upon prosecutorial impropriety, will bar retrial under the double jeopardy clause of the Michigan Constitution.
We note that several other courts have concluded that prosecutorial gross negligence may constitute impropriety sufficient to bar retrial. See, e.g., United States v Kessler, 530 F2d 1246 (CA 5, 1976), reh den 535 F2d 660 (1976); United States v Weaver, 565 F2d 129 (CA 8, 1977), cert den 434 US 1074 (1978); United States v Crouch, 566 F2d 1311 (CA 5, 1978), reh den 570 F2d 949 (1978); United States v Clayborne, 584 F2d 346 (CA 10, 1978); State v Kirk, 362 So 2d 352 (Fla App, 1978); People v Collins, 48 Ill App 3d 643; 6 Ill Dec 296; 362 NE2d 1118 (1977); and Commonwealth v Bolden, 472 Pa 602; 373 A2d 90 (1977). We believe, however, that a gross negligence standard, like the United States Supreme Court’s Kennedy standard, is unsatisfactory in light of the purpose of the double jeopardy clause. The clause’s guarantee against harassment of individuals by multiple prosecutions implies a requirement of some conscious choice of prejudicial action or willingness to risk placing the defendant repeatedly in jeopardy before the guarantee bars retrial. Negligent error, "gross” or otherwise, may properly lead to a mistrial, but in the absence of willfulness should not rise to the level of a constitutional bar on retrials. See State v Kennedy, supra, 295 Or 273-274, 276; 664 P2d 1324, 1326.
In Pool v Superior Court, supra, 139 Ariz 108-109, the Supreme Court of Arizona held that a three-part test should be used to determine when prosecutorial impropriety leading to a successful defense mistrial motion will bar retrial:
When does double jeopardy attach if mistrial is granted on motion of defendant or court because of prosecutorial misconduct and overreaching? Is it only when the prosecutor’s intent in pursuing an improper course of conduct was to cause a mistrial?
... In our view, . . . the resolution of the question of when jeopardy attaches should turn upon the concept of enforcing the constitutional guarantee against double jeopardy when the right to be free from multiple trials, which that clause was meant to guarantee, would be impaired by the prosecutor’s intentional, improper conduct. . . . We do not agree that standards cannot be formulated to accomplish the objectives of the clause in situations such as this. We hold, therefore, that jeopardy attaches . . . when a mistrial is granted on motion of defendant or declared by the court under the following conditions:
1. Mistrial is granted because of improper conduct or actions by the prosecutor; and
2. such conduct is not merely the result of legal error, negligence, mistake, or insignificant impropriety, but, taken as a whole, amounts to intentional conduct which the prosecutor knows to be improper and prejudicial, and which he pursues for any improper purpose with indifference to a significant resulting danger of mistrial or reversal; and
3. the conduct causes prejudice to the defendant which cannot be cured by means short of a mistrial.
We agree with the Oregon Supreme Court that when such conduct occurs the burden of another trial cannot be attributed to defendant’s preference to start anew rather than "completing the trial infected by error” and is, rather, attributable to the "state’s readiness, though perhaps not calculated intent, to force the defendant to such a choice.” State v Kennedy, 295 Or at 276, 666 P2d at 1326. In such a situation, the State has intentionally exposed the defendant to multiple trials for the same crime and had destroyed his expectation of completing the proceeding before the original tribunal. This is exactly what the double jeopardy provision was intended to prevent.
We agree with the reasoning of the Arizona court and adopt the Pool three-part test as the appropriate standard for determining whether retrial is barred by the double jeopardy clause of the Michigan Constitution after a defendant’s successful mistrial motion on grounds of prosecutorial impropriety.
Applying the Pool test to the instant case, we conclude that the prosecutor’s actions during defendant’s first trial constituted misconduct sufficient to warrant a prohibition against reprosecution. The prosecutor’s line of questioning regarding the layout of the juvenile home and each contact Brown had with defendant was wholly irrelevant. Any notion that the prosecution may have pursued these points without realizing their irrelevancy is dispelled by his immediate restatement of the same questions to which objections had just been sustained. Indeed, the prosecutor had been previously warned by the trial court against similar transgressions. Such conduct is "an impertinence to the court.” 3 Wigmore, Evidence (Chadbourne rev, 1970), § 782, p 181. The question, "Can you tell me how many times [defendant] offered you a blow job?” was clearly improper as a suggestion of facts for which no proof existed and was no more part of a legitimate line of cross-examination calculated to impeach the witness’ testimony than the infamous "do you still beat your wife?” Applying minimum standards of professional responsibility, we must conclude that this question was not simply negligent. The questioning was so egregiously improper that we can only infer that the prosecutor consciously engaged in conduct which he knew to be improper, and that he did so with indifference, if not a specific intent, to create unfair prejudice. At best, the purpose appears to be to prejudice the jury and obtain a conviction no matter what the danger of mistrial or reversal. See Pool, supra, 139 Ariz 109; 677 P2d 272.
We also find it significant that the prosecutor was wholly disinterested in continuing with the first trial upon defendant’s mistrial motion. This is especially significant in light of record evidence that the mistrial presented the prosecutor an opportunity to strengthen his case on retrial. During the first trial, Nelson testified as part of the prosecution’s case-in-chief that defendant never indicated his reason for the alleged knifepoint assault. When the prosecutor was later informed that he had failed to establish the intent necessary for conviction, Nelson was recalled, and this time testified that defendant had stated his intent to commit sexual penetration. Although this testimony established the intent element, it also substantially weakened the prosecution’s case by presenting contradictory testimony by the complaining witness. At defendant’s second trial, on the other hand, Nelson did not hesitate in testifying on direct examination that defendant stated his intent to commit a sexual act. Moreover, the recalcitrant witness, Brown, was never called.
From all these circumstances, the record supports the conclusion that the prosecutor consciously and wilfully engaged in improper conduct indifferent to the probability that a mistrial would result. Accordingly, we find that jeopardy attached and retrial was precluded.
Reversed and remanded for entry of an order of dismissal.
The trial judge is to measure what the prosecution "intends” and "knows” by objective factors, which include the situation in which the prosecutor found himself, the evidence of actual knowledge and intent and any other factors which may give rise to an appropriate inference or conclusion. He may also consider the prosecutor’s own explanations of his "knowledge” and "intent” to the extent that such explanation can be given credence in light of the minimum requirements expected of all lawyers. | [
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Per Curiam.
Plaintiff Sherman Bowling Center is a partnership which operates a business in Roosevelt Park. Plaintiffs facilities include a building containing fifty bowling lanes, thirteen pool tables, two bars, a restaurant, and two banquet rooms. The facilities also include a parking lot containing 350 to 400 parking spaces. The premises are located in a commercial area and are within three to four blocks of a residential area. Plaintiff has a Class c liquor license.
Plaintiff’s bowling business is shut down during the months of May, June and July because patrons are not interested in bowling during these months. As a result, plaintiff also closes its indoor bars and restaurant. However, plaintiff keeps its banquet rooms available for weddings, assorted banquets and ”Las Vegas” nights._
In 1983, in order to generate additional revenue during the summer months, plaintiffs management decided to attract customers by setting up a beer tent and providing entertainment in a portion of the parking lot. Plaintiff planned to do this occasionally on weekends.
One of the partners contacted the Michigan Liquor Control Commission (mlcc) in order to determine whether plaintiff could provide outdoor service. The mlcc responded affirmatively, but requested that plaintiff first check with defendant’s police chief as to whether he had any objections. When he was contacted, the police chief checked with the city manager and was told that he should not issue the license without the approval of the city council. Plaintiff then requested the city council’s approval in a letter dated February 3, 1983. After receiving the city council’s approval, the police chief offered no objection. When plaintiff again contacted the mlcc, plaintiff was issued a permit for the outdoor service.
Plaintiff thereafter hired a bluegrass band to perform on May 20 and 21, 1983. Members of the public were invited from 5:00 p.m. to 1:00 a.m. on Friday and from 12:00 p.m. to 1:00 a.m. on Saturday. It was estimated that anywhere from three hundred to twenty-five hundred customers were on the premises at any given time. Plaintiff conducted similar business on three more occasions in 1983 and on one occasion in 1984. There was conflicting testimony as to whether plaintiffs business resulted either directly or indirectly in any major problems for nearby homeowners.
One nearby homeowner testified that plaintiffs business generated large crowds and created traffic congestion and noise. He also testified that the patrons created litter problems, used foul language, and sometimes urinated in public. Defen dant’s city manager testified that he had received similar complaints and that he received a petition from some residents regarding plaintiffs business operations. In response, defendant’s mayor appointed a committee to study the alleged problems. After several meetings, the committee made a recommendation to the city council, whereupon the city council adopted the ordinance which provided the basis for the present litigation.
The ordinance states that it is "[a]n ordinance to provide for the licensing and regulation of establishments allowing public dancing, entertainment and sale of liquor for consumption on the premises whether indoors or out of doors; ... to provide for the approval and revocation of licenses; and to provide penalties for the violation thereof.” The ordinance provides that no person licensed by mlcc to sell alcoholic beverages for consumption on the premises shall permit any public dancing on the premises operated by him unless the person first procures from the city clerk a license for public dancing. The ordinance also provides that no holder of a temporary permit for the outdoor sale of alcoholic beverages or current holder of a liquor license with an extension for outdoor sales shall be permitted to operate or maintain a special event where outdoor liquor sales are allowed, without procuring a license from the city manager.
Section 3 of the ordinance provides that no license shall be issued to any person who is licensed by the mlcc to sell alcoholic beverages for consumption on the premises or any holder of a temporary permit for the outdoor sale of alcoholic beverages or any holder of a current liquor license with an extension to allow outdoor sales unless certain requirements are complied with by the applicant. Among the purported requirements are the following:
(5) Any license granted for the outdoor sale of liquor shall allow said special event on a Friday or Saturday only and shall specify the hours of operation. Notwithstanding this provision, entertainment shall cease no later than 11:00 p.m. and said outdoor special event shall end no later than 12:00 a.m. on any given day of operation.
(6) The City Manager shall not grant more than one license per year to any applicant for an outdoor event where alcoholic liquor is sold.
The ordinance was published and became effective on October 3, 1983.
Plaintiff obtained a permit and conducted business on one occasion in May of 1984. Plaintiff thereafter applied for but was not granted another permit because of the ordinance’s one-event limitation. The mlcc also refused to issue plaintiff a liquor license for any more outdoor service because of defendant’s ordinance. Plaintiff applied for a permanent outdoor liquor license, but was denied one because it would be in violation of defendant’s ordinance.
On March 12, 1984, plaintiff filed a complaint seeking a declaratory judgment and injunctive relief. Plaintiff sought a declaration that the ordinance was invalid. After a bench trial, the circuit court determined that the ordinance was valid in all of the challenged aspects except for one provision dealing with the time within which an application for a permit must be filed. Plaintiff now appeals from the trial court’s opinion and judgment as of right.
Plaintiff contends that defendant’s ordinance is preempted by state law. We agree.
i
The ordinance in this case is based on defen dant’s general police power. Cities and villages have the power to adopt resolutions and ordinances relating to municipal concerns, property, and government, subject only to the constitution and law. Const 1963, art 7, §22. See also MCL 117.4j(3); MSA 5.2083(3) and MCL 117.4Í, subds (4) and (9); MSA 5.2082, subds (4) and (9). Because the adoption of an ordinance by a municipality is "subject to the constitution and law,” such broad power to adopt ordinances relating to municipal concerns may be preempted if a state statutory scheme occupies the field of regulation which the municipality seeks to enter. A municipality is precluded from enacting an ordinance if (1) the ordinance is in direct conflict with the state statutory scheme, or (2) the state statutory scheme preempts 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. People v Llewellyn, 401 Mich 314, 322; 257 NW2d 902 (1977), cert den sub nom East Detroit v Llewellyn, 435 US 1008; 98 S Ct 1879; 56 L Ed 2d 390 (1978).
A direct conflict does not exist in this case because the ordinance neither permits what a state statute prohibits nor prohibits what a state statute permits. However, we believe that a state statutory scheme occupies the field of regulation which defendant seeks to enter so as to preempt the field.
The Supreme Court has indicated that certain guidelines should be looked to when determining whether the state has preempted a field of regulation which a city seeks to enter. These guidelines were laid out in People v Llewellyn, supra. The first guideline is controlling in this case. According to the Supreme Court, where 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 preempted. 401 Mich 323.
In this regard, the Supreme Court, in Llewellyn, specifically referred to Noey v Saginaw, 271 Mich 595; 261 NW 88 (1935). The Supreme Court noted:
In Noey, the state Constitution granted the Legislature the authority to establish a Liquor Control Commission which, subject to the statutory limitation, "shall exercise complete control of the alcoholic beverage traffic within this State”. 271 Mich 595, 596.
Pursuant to this constitutional provision the Legislature enacted a statute creating a Liquor Control Commission and wrote "[ejxcept as by this act otherwise provided, the commission shall have the sole right, power and duty to control the alcoholic beverage traffic. . . .” 271 Mich 595, 596-597.
In light of these provisions, the Court held that an ordinance setting the permissible time period for selling alcoholic beverages was invalid. [401 Mich 323, n 7.]
It is the same constitutional and statutory provisions dealing with the mlcc which convince us that defendant’s ordinance in this case is invalid. See Const 1963, art 4, § 40; MCL 436.1 et seq.; MSA 18.971 et seq.
II
The city ordinance in this case is preempted because it regulates alcoholic beverage traffic and no state statute authorizes the city to control alcoholic beverage traffic in the manner which is attempted in the ordinance.
State law expressly provides that the mlcc is to have the exclusive authority to regulate the alcoholic beverage traffic within Michigan. Regardless of this fact, the ordinance continually and explicitly ties its requirements to the sale of alcoholic beverages. The ordinance regulates various activities and imposes various requirements, but does so only in regard to establishments where alcoholic beverages are sold. The sale of alcoholic beverages is a determining factor in whether the ordinance applies to a given establishment. Because of this, the ordinance de facto regulates alcoholic beverage sales.
Any law which provides that if activity a takes place, then activity b may not occur, necessarily provides that if activity b occurs, then activity a may not take place. For instance, one provision of defendant’s ordinance states essentially that, if an establishment sells alcoholic beverages, there is to be no entertainment at its outdoor event after 11:00 p.m. Logically, this law also provides that if an establishment is to have entertainment at its outdoor event after 11:00 p.m., then it cannot sell alcoholic beverages.
No matter what form an ordinance takes, or what language an ordinance employs, a city cannot regulate or control alcoholic beverage traffic unless authorized by statute. That function belongs exclusively to the mlcc. The mlcc is to determine what types of establishments may sell liquor, when such establishments may sell liquor, and where they may sell it (with certain explicit statutory exceptions). It is the mlcc and not an individual city which is given the authority to determine whether an establishment which operates a special outdoor event providing entertainment can or cannot sell alcoholic beverages.
On the other hand, cities may, pursuant to their police power, regulate various activities. However, cities cannot use liquor sales as a determinant of when or where another type of activity can take place. A law which uses liquor sales as a determinant regulates when and where liquor sales can take place.
We do not wish to imply that cities may not regulate the number of outdoor events which can be held or the hours of such outdoor events. Nor do we wish to imply that cities may not regulate the hours within which outdoor entertainment can take place. Provided that they are otherwise valid, general regulations in this regard which are not tied to the sales of alcoholic beverages are not preempted by the authority granted to the mlcc. The bottom line is that a regulation will not be declared invalid under preemption principles if it applies to establishments which sell alcoholic beverages in a like manner as it does to establishments which do not sell alcoholic beverages.
CONCLUSION
Based on the rules laid out in People v Llewellyn, 401 Mich 314, we find that the city ordinance in this case is preempted. Pursuant to constitutional authority, the Legislature has established the mlcc and has provided a comprehensive liquor law. See MCL 436.1 et seq.; MSA 18.971 et seq. The Legislature has given the commission the sole right, power and duty to control the alcoholic beverage traffic within the state, except as the Legislature has otherwise specifically provided in the liquor law. MCL 436.1; MSA 18.971. We can find no provision of the liquor law which would allow cities to regulate the sale of alcoholic beverages by establishments holding outdoor events at which entertainment is provided.
Because the provisions of the city ordinance are invalid, the trial court erred as a matter of law in entering a judgment in favor of defendant. The judgment is therefore reversed to the extent that it holds any provision of the city ordinance to be valid.
Reversed in part and affirmed in part.
We note that our ruling apparently conflicts with Mallach v City of Mt Morris, 287 Mich 666; 284 NW 600 (1939), and perhaps other authority. See e.g., Allen v Liquor Control Comm, 122 Mich App 718; 333 NW2d 20 (1982). However, we believe that it is more appropriate to follow the Supreme Court guidelines regarding preemption as set forth in Llewellyn, supra. | [
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Per Curiam.
On December 16, 1982, plaintiff, Great American Insurance Company, as subrogee of Keith Douglas, filed a complaint alleging negligence and breach of warranty in an action for damages which resulted when a combine owned by Douglas caught fire. Motions for summary judgment were subsequently filed by defendants, Massey-Ferguson, Inc., and Paty’s, Inc., for failure to state a claim upon which relief could be granted. The lower court issued an order granting summary judgment for both defendants on October 24, 1985, from which plaintiff appeals as of right.
Plaintiff alleged in its complaint that on June 1, 1979, Keith Douglas purchased a new Massey-Ferguson diesel combine from Paty’s, Inc., in Okemos, Michigan. The combine had been designed, manufactured, assembled, tested, and distributed by defendant Massey-Ferguson. On July 30, 1981, Keith Douglas was operating the combine in a wheat field when it caught fire due to a break in a hydraulic line near a control valve. Douglas was insured by the plaintiff and received $40,764 in settlement of his claim, while plaintiff was assigned the right to bring an action for damages arising from the fire. The complaint did not allege any injury to person or property other than the combine itself.
Count i of the complaint contained allegations that the defendants were negligent in various aspects of designing, manufacturing and testing the combine. Count ii claimed that the defendants had warranted that the combine was fit for the purpose intended and that it was of merchantable quality. The complaint further alleged that the combine was defective and that as a result of the defects it was destroyed by fire.
The documentary evidence established that defendant Massey-Ferguson warranted that its new agricultural equipment would be free from defects in material and workmanship at the time of delivery to the first retail purchaser. The warranty was valid for one full crop-related season, plus the remainder of a partial season if the equipment was purchased mid-season. A brochure which Massey-Ferguson dealers were instructed to give to their customers stated:
Exclusive effect of warranty and limitation OF LIABILITY
This warranty is in lieu of all warranties of MERCHANTABILITY, FITNESS FOR A PURPOSE OR OTHER REPRESENTATIONS, WARRANTIES OR CONDITIONS EXPRESS OR IMPLIED.
The remedies of the Owner set forth herein are exclusive. The Company neither assumes nor authorizes any person to assume for it any other obligation or liability in connection with the sale of covered machines.
Correction of defects in the manner and for the applicable period of time provided above shall constitute fulfillment of all responsibilities of the Company to the Owner and the Company shall not be liable for negligence, under contract or in any other manner with respect to such machines. In NO EVENT SHALL THE OWNER BE ENTITLED TO RECOVER FOR INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES SUCH AS BUT NOT LIMITED TO, LOSS OF CROPS, LOSS OF PROFITS OR REVENUE, OTHER COMMERCIAL LOSSES, INCONVENIENCE OR COST OF RENTAL OR REPLACEMENT EQUIPMENT.
The deposition testimony revealed that Mr. Douglas was aware of the fact that his combine was warranted for one year, but he did not remember receiving the brochure nor how he learned of the warranty. The evidence also established that Paty’s, Inc., was an independent dealer and was not a legal representative or agent of Massey-Ferguson and that Paty’s had no right or authority to as sume or create obligations of any kind on behalf of Massey-Ferguson.
In its ruling on the defendants’ motions for summary judgment, the trial court found a contractual relationship between Douglas and both defendants and on that basis held that no action for negligence could lie where the only damage was to the goods subject to the contract. The court further ruled that the express warranty would exclude finding any cause of action for breach of implied warranties. Therefore, summary judgment in favor of both defendants was granted, giving rise to the instant appeal.
The question which we are asked to decide is whether the trial court erred in applying to the facts of the instant case the rule announced in McGhee v GMC Truck & Coach Division, General Motors Corp, 98 Mich App 495; 296 NW2d 286 (1980). The plaintiff in McGhee brought suit to recover for property damage which occurred to a truck-tractor he had purchased from the defendant. Among other grounds, plaintiff alleged a negligence theory against the defendant. A motion for summary judgment raised by the defendant was granted by the trial court. This Court affirmed based on the following reasoning:
We agree that no cause of action is stated in the complaint, where the foundation of the relationship between the parties is contractual and no personal injury or damage to property other than the subject goods themselves is alleged. While there is some disagreement among courts on this point, we believe that the better view is expressed in SM Wilson & Co v Smith International, Inc, 587 F2d 1363, 1376 (CA 9, 1978):
"Where the suit is between a non-performance seller and an aggrieved buyer and the injury consists of damage to the goods themselves and the costs of repair of such damage or a loss of profits that the deal had been expected to yield to the buyer, it would be sensible to limit the buyer’s rights to those provided by the Uniform Commercial Code. See Keeton, Torts, Annual Survey of Texas Law, 25 SW L J 1, 5 (1971); Franklin, When Worlds Collide: Liability Theories and Disclaimers in Defective-Product Cases, 18 Stan L Rev 974, 996-97, 1012-14 (1966). To treat such a breach as an accident is to confuse disappointment with disaster. Whether the complaint is cast in terms of strict liability in tort or negligence should make no difference.” [98 Mich App 505.]
The Court also cited language from a Texas decision as persuasive:
"The nature of the loss resulting from damage that a defective product has caused to itself has received the attention of several commentators. Dean Page Keeton writes:
" 'A distinction should be made between the type of "dangerous condition” that causes damage only to the product itself and the type that is dangerous to other property or persons. A hazardous product that has harmed something or someone can be labeled as part of the accident problem; tort law seeks to protect against this type of harm through allocation of risk. In contrast, a damaging event that harms only the product should be treated as irrelevant to policy considerations directing liability placement in tort. Consequently, if a defect causes damage limited solely to the property, recovery should be available, if at all, on a contract-warranty theory.’
"The Uniform Commercial Code was adopted by the Legislature as a comprehensive and integrated act to facilitate the continued expansion of commercial practices. . . . For sales of products the above purpose is carried out by Article 2 of the Code, which supplies a complete framework of rights and remedies for transacting parties. In light of the Code’s scope and purpose, its terms should not be nullified by applying strict liability when the parties have contracted otherwise. Such an expansion of strict liability would frustrate the Code’s purposes of codifying the law of commercial transactions by displacing its applicability in all cases where the sale of faulty products is involved. Some losses resulting from product transactions are best covered by contract liability under the Code.” [98 Mich App 505-506, quoting Mid Continental Aircraft Corp v Curry County Spraying Service, Inc, 572 SW2d 308 (Tex, 1978).]
However, the rule stated in McGhee was distinguished in a later decision of this Court, Auto-Owners Ins Co v Chrysler Corp, 129 Mich App 38; 341 NW2d 223 (1983). In Auto-Owners, the plaintiffs subrogors purchased a used motor home from the Sheller-Globe Corporation. Sheller-Globe had manufactured the body of the motor home and had attached it to the chassis, which had been manufactured by Chrysler Corporation, with whom plaintiff’s subrogors had no contract. When the motor home suffered fire damage as a result of a fuel feed system malfunction, suit was brought against defendant Chrysler Corporation on theories of negligence, strict liability, and breach of express and implied warranties. The trial court granted defendant’s motion for summary judgment as to the negligence and strict liability counts on the basis of the rule stated in McGhee. This Court reversed, stating:
The rational behind this [the McGhee Court’s] holding is that it would be unfair to allow a contracting party to nullify the terms of the ucc where the only injury is to the property purchased and is caused by the condition of that property. This rationale fails when there is no contractual relationship between the parties. It thus appears that the ucc has no relevancy in a case, such as the instant case, in which a consumer brings a claim against a manufacturer for damage to its product which the consumer purchased from someone other than the manufacturer. [129 Mich App 42.]
Noting that the instant action involves a remote manufacturer rather than an immediate seller, plaintiff argues that the reasoning used by the Auto-Owners Court to distinguish McGhee is equally applicable here. Defendant, on the other hand, contends that the instant case differs from Auto-Owners in that an express warranty covering defects in material and workmanship was provided by defendant to plaintiffs subrogor, thus establishing a "contractual relationship” between the parties as contemplated in McGhee.
We agree with the defendant. Unlike Auto-Owners, where the buyer and manufacturer had no contact whatsoever, the defendant here bound itself directly to the plaintiffs subrogor by offering an express warranty on the parts and workmanship of the combine to the first retail buyer. The warranty was obviously offered in an effort to induce the sale to buyers such as Mr. Douglas, and the costs associated with the warranty were presumably built into the price of the combine. If the fire which damaged the combine had occurred within the warranty’s limitations period, Mr. Douglas could have insisted upon his rights under the warranty directly against the defendant and could have enforced those rights under the law. Under such circumstances, we must conclude that a "contractual relationship” existed directly between plaintiffs subrogor and the defendant.
Furthermore, the dissent in Auto-Owners makes a strong argument for the proposition that a contractual relationship is unnecessary to invoke the rule stated in McGhee. The dissent points out that the majority opinion is based upon the premise that a buyer cannot, under the ucc, proceed against a remote seller. However, under Michigan law, vertical privity is not required even where the damages at issue consist solely of economic losses, i.e., damage to the subject goods themselves. While the ucc takes no official position on the issue of vertical privity, see Official UCC Comment to § 2-318; 1 Hawkland, A Transactional Guide to the Uniform Commercial Code, § 1.1905, p 87, the practice commentary to § 2-318 found at 21 MCLA 363 notes that the Michigan decisions on the question of privity are not affected by the Code. The Michigan cases which have considered the' question have held that it is unnecessary to establish vertical privity, even where the loss is solely economic. Cova v Harley-Davidson Motor Co, 26 Mich App 602; 182 NW2d 800 (1970); Piercefield v Remington Arms Co, Inc, 375 Mich 85; 133 NW2d 129 (1965). The dissenting opinion in Auto-Owners concludes that, even where the defendant is a remote seller with whom the consumer has had no contract, the rule set out in McGhee is applicable. 129 Mich App 44 (Danhof, C.J., dissenting). In light of our previous conclusion that a contractual relationship did in fact exist between our defendant and the plaintiff’s subrogor, it is unnecessary to decide whether the reasoning of the Auto-Owners dissent should be adopted. We bring attention to this interesting question only to bring proper focus to the issue before us.
However, since we do find the McGhee rule to be applicable, we conclude that the trial court’s deci sion to grant summary judgment in favor of defendant Massey-Ferguson for failure to state a claim upon which relief can be granted was proper. As to defendant Paty’s, Inc., we note that plaintiffs brief does not specifically address the propriety of the trial court’s order as it applied to Paty’s and that the arguments contained therein appear to be directed only to Massey-Ferguson. In any event, it cannot be disputed that a contractual relationship existed between Paty’s, as the immediate seller, and plaintiffs subrogor, and thus summary judgment was clearly appropriate under the authority of McGhee.
In light of our resolution of this case, the remaining issues raised in the plaintiff’s brief need not be discussed.
Affirmed.
Judge Gillis acknowledges that he voted with the majority in Auto-Owners Ins Co v Chrysler Corp, 129 Mich App 38; 341 NW2d 223 (1983), but would reconsider his position on this issue were it necessary to resolve the instant dispute. | [
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Per Curiam.
After a bench trial, defendant was convicted of possession with intent to deliver a controlled substance (marijuana), MCL 333.7401, subds (1) and (2)(c); MSA 14.15(7401), subds (1) and (2)(c), possession of less than fifty grams of a mixture containing a controlled substance (cocaine), MCL 333.7403, subds (1) and (2)(a)(iv); MSA 14.15(7401), subds (1) and (2)(a)(iv), and two counts of delivery of a controlled substance (marijuana), MCL 333.7401, subds (1) and (2)(c); MSA 14.15(7401), subds (1) and (2)(c). Defendant received concurrent sentences of five years probation on each offense. The first year was to be served in county jail. Costs and fines were also imposed and defendant was given one day’s credit for time served. Defendant now appeals as of right. We affirm the delivery convictions, but reverse the possession convictions.
Defendant’s delivery convictions arose out of two controlled buys initiated by an agent working for the police department. The possession convictions arose out of evidence discovered during a search of defendant’s home.
Prior to trial, defendant moved to quash the information, arguing that he had been entrapped. He also moved to suppress the physical evidence which was seized from his home based on deficiencies in the search warrant, on deficiencies in the affidavit in support of the search warrant, and on the issuing magistrate’s lack of neutrality. The trial court denied defendant’s motions. Defendant now claims that the trial court erred in denying each of his motions.
ENTRAPMENT
Michigan employs an objective test for determining whether entrapment has occurred. People v Turner, 390 Mich 7; 210 NW2d 336 (1973). The objective test requires a trial court to dismiss charges against a defendant when agents of the government engage in activity which goes beyond the mere offering of an opportunity to commit a criminal offense. The agents’ conduct must be of the kind that could induce or instigate the commission of a crime by one not ready and willing to commit it regardless of the character or propensities of the particular person induced. Turner, su pra; People v D’Angelo, 401 Mich 167, 173-174; 257 NW2d 655 (1977).
A defendant has the burden of proving, by a preponderance of the evidence, that he was entrapped. People v D’Angelo, supra, p 183. The trial court’s findings of fact in regard to the entrapment issue are reviewed under the clearly erroneous standard. Id. See also MCR 2.613(C).
Defendant accuses the police of exploiting his friendship with the agent who made the drug purchases. Defendant also contends that the police placed undue pressure on him. A review of the record indicates that this case is distinguishable from those cases in which friendships are exploited or in which undue pressure is placed on a defendant.
While defendant testified that the police agent was a friend of his, the agent’s testimony indicated that the two were not friends and that the agent did not know defendant personally. Rather, his main contact with defendant was in regard to the purchase of drugs. The trial court made explicit findings of fact in this regard. The court found that defendant was not a friend of the agent. This finding is not clearly erroneous. Thus, under the circumstances of this case, the police did not unduly exploit an existing friendship.
Defendant also contends that the police placed undue pressure on him which forced him into committing the crime. Defendant testified that the police agent indicated that he needed the drugs in order to sell them so that he could come up with money to pay attorney fees in a pending case. Defendant argues that, because the agent requested the drugs for this reason and because the agent was persistent in his request, undue pressure was placed on defendant. We disagree. In a situation where the seller and the purchaser are merely acquaintances, the purchaser’s statement of such a reason for needing drugs is not sufficient to establish entrapment. This is not the type of conduct which would induce the commission of a crime by one not ready and willing to commit it. This is especially true in this case since defendant was aware that the agent was also employed.
The trial court’s findings on the entrapment issue are not clearly erroneous. Defendant did not carry his burden in establishing entrapment.
THE SEARCH WARRANT
Defendant’s two possession convictions were based on evidence which was seized after a search warrant was purportedly issued authorizing the items to be seized. Defendant contends that the trial court erred in denying defendant’s motion to suppress the evidence because the search warrant had not béen signed by the magistrate. We agree.
On February 25, 1984, an affidavit in support of a warrant was sworn to and presented to the magistrate. The magistrate, however, inadvertently failed to sign the warrant. Rather, he signed only the affidavit, acknowledging that the affidavit was subscribed and sworn to before the magistrate on February 25, 1984. Despite the fact that the warrant was not signed, police officers executed the warrant that same day. On February 28, 1984, after discovering that the warrant had not been signed, the magistrate signed the warrant. However, as noted, the search had already taken place.
For the purposes of our analysis, we will assume that the police had probable cause to search the premises. However, the existence of probable cause does not in and of itself make a search constitutionally proper. Both the Fourth Amendment to the United States Constitution and the correspond ing provision of the Michigan Constitution, Const 1963, art 1, § 11, contain a warrant requirement. The warrant requirement protects individual privacy from unrestrained exercise of governmental power. People v Tyler, 399 Mich 564, 584; 250 NW2d 467 (1977), aff'd in part, rev’d in part sub nom Michigan v Tyler, 436 US 499; 98 S Ct 1942; 56 L Ed 2d 486 (1977). The warrant requirement is not to be taken lightly. A search or seizure which is undertaken without a warrant or pursuant to an invalid search warrant is unreasonable per se under the Fourth Amendment to the United States Constitution and violates art 1, § 11 of the Michigan Constitution unless shown to fall within one of the various exceptions to the warrant requirement. See People v Tyler, supra, People v Oliver, 417 Mich 366; 338 NW2d 167 (1983); People v Nash, 418 Mich 196; 341 NW2d 439 (1983).
In this case, there is no asserted exception to the warrant requirement. The question for this Court is whether, in a situation where a search warrant is required, a search and seizure which takes place pursuant to an unsigned document is constitutional. We hold that it is not.
Article 1, § 11 of the Michigan Constitution states in relevant part:
The person, houses, papers and possessions of every person shall be secure from unreasonable searches and seizures. No warrant to search any place or to seize any person or things shall issue without describing them, nor without probable cause, supported by oath or affirmation.
Several considerations lead us to believe that an unsigned document cannot validate a search and seizure when there is no exception to the warrant requirement. First, the placement of a signature on a document would distinguish an actual "warrant” from other proposed documents drafted by law enforcement agencies which never actually become enforceable warrants. Second, in order for the police to obtain a warrant, the constitution requires that one must "issue.” See also MCL 780.651; MSA 28.1259(1). We believe that a magistrate "issues” a "warrant” only when he signs an appropriate document and turns it over to the proper person. We agree with the reasoning set forth in Connecticut v Surowiecki, 184 Conn 95; 440 A2d 798 (1981), regarding similar language contained in a Connecticut statute. There, the Connecticut court stated:
The only issue on appeal is: Does the lack of a signature of a judge on a search warrant invalidate it even though the same judge found probable cause, but failed to sign the search warrant because of an oversight?
. . . Although there is no doubt that the judge in this case intended to sign the search warrant, we conclude that he did not issue the search warrant until he performed this act. The signing of the search warrant was to be the identifiable objective manifestation of his subjective intent to issue that search warrant. It is only when the former act has been completed that we are able to say that a search warrant was "issued.” In other words, a lawful signature on the search warrant by the person authorized to issue it was essential to its issuance. See Perry v Johnson, 37 Conn, 32, 35 (1870); United States v Carignan, 286 F Supp 284 (D Mass, 1967); Kelley v State, 55 Ala App 402; 316 So 2d 233 (1975); Martin v State, 344 So 2d 248 (Fla App, 1976); Byrd v Commonwealth, 261 SW2d 437 (Ky, 1953); State v Flemming, 240 Mo App 1208, 1213; 227 SW2d 106 (1950); People v Coburn, 85 Misc 2d 673; 380 NYS2d 944 (1976); Commonwealth v Williams, 237 Pa Super 324; 352 A2d 67 (1975); State v Cochrane, 84 SD 527; 173 NW2d 495 (1970); 4 Wharton, Criminal Law & Procedure § 1551. [Surowiecki, supra, pp 97-98.]
We also believe that public policy supports our conclusion that a signature is required. Such a requirement serves a cautionary function. It impresses upon the magistrate the seriousness and importance of his action in issuing a search warrant. The constitutional protection against unreasonable searches and seizures is not to be taken lightly. A magistrate should conscientiously determine both whether a warrant should issue and the extent of the authorization to search. In light of the fact that proposed warrants are often drafted by prosecutors, the requirement that a magistrate properly sign the proposed search warrant is extremely reasonable and perhaps even necessary.
In addition, public policy does not support the encouragement of police misconduct which could result if searches based on unsigned warrants were declared valid. The potential for abuse is clear. On the other hand, the police are not overly burdened by a signature requirement. Those officers who execute a search must limit their search to the dictates of the warrant. Thus, they must necessarily review the document before they search. We do not believe that officers who execute a search can reasonably rely on an unsigned document as an authorization for conducting a search. When an improperly issued document is discovered before a search, the police can taken corrective measures and thereafter conduct the search.
We also believe that the requirement of a signature provides needed protections and assurances to persons in control of property which is to be searched. When such persons are presented with a document which is alleged to be a search warrant, they must be able to review the document and determine whether or not they should allow the officers to search. The custodian should not have to guess as to whether a magistrate intended or did not intend to sign the document which is presented to the custodian.
We also note that the Supreme Court has indicated that a search warrant based on an unsigned affidavit is invalid. People v Goff, 401 Mich 412; 258 NW2d 57 (1977). It appears to us that a signature on the warrant itself is much more important thán a signature on an affidavit in support of a warrant. Thus, an unsigned search warrant is necessarily invalid.
We conclude that the search and seizure were invalidly conducted. We also believe that the evidence should have been suppressed. The evidence seized during the search provided the basis for the two possession charges against defendant. Defendant’s possession convictions are therefore reversed.
Due to our reversal on this ground, we need not address defendant’s other allegations of error.
Defendant’s delivery convictions are affirmed, but defendant’s possession convictions are reversed.
Affirmed in part and reversed in part.
Our decision is based on the Michigan Constitution.
Because the search and seizure was not constitutionally proper, the evidence must be suppressed. See People v Tyler, supra; People v Oliver, supra. See also People v Sherbine, 421 Mich 502; 364 NW2d 658 (1984).
We acknowledge that the United States Supreme Court has applied a "good faith” exception to the exclusionary rule of the Fourth Amendment to the U.S. Constitution. United States v Leon, 468 US 897; 104 S Ct 3430; 82 L Ed 2d 677 (1984). However, Michigan courts have refused to adopt a similar exception in connection with the exclusionary rule of the Michigan Constitution. People v Sundling, 153 Mich App 277; 395 NW2d 308 (1986); People v Sellars, 153 Mich App 22; 394 NW2d 133 (1986). | [
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Shepherd, P.J.
Plaintiff, Austin Thomas, appeals as of right from a January 22, 1985, circuit court opinion and order granting defendants’ motion for accelerated or summary judgment on plaintiff’s claim of employment discrimination brought under the Michigan Civil Rights Act, MCL 37.2101 et seq.; MSA 3.548(101) et seq. We reverse and remand for further proceedings.
On January 18 and April 16, 1984, plaintiff filed a complaint and an amended complaint in the Federal District Court for the Eastern District of Michigan, alleging employment discrimination under both 42 USC 1983 and the Michigan Civil Rights Act. The caption listed defendants as the State of Michigan, Department of Civil Service, the Michigan Employment Security Commission and:
Patricia Owens, employee, Michigan Employment Security Commission, in her individual capacity; James E. Culhane, employee, Michigan Employment Security Commission, in his individual capacity._
On June 7, 1984, United States District Court Judge Julian A. Cook entered an order granting partial summary judgment in favor of the defendants for lack of personal jurisdiction. The order dismissed defendants Michigan Employment Security Commission, the Michigan Department of Civil Service, and Owens and Culhane "as agents or employees of defendant commission acting within the scope of their authority.” The. order expressly stated that these dismissals were "without prejudice.” However, the federal district court retained jurisdiction over defendants Owens and Culhane "solely in their individual capacities” and ordered that plaintiif "effectuate personal service of the Summons and Complaint” upon defendants Owens and Culhane by June 23, 1984. When plaintiff failed to personally serve defendants Owens and Culhane by the specified date, the court entered an order of dismissal on June 19, 1984, against these defendants pursuant to FRCP 41(b). The order did not specify whether the dismissal was with or without prejudice.
On August 6, 1984, plaintiff filed the instant complaint in Washtenaw Circuit Court, alleging employment discrimination under the Michigan Civil Rights Act. Plaintiff again listed the mesc and the Michigan Department of Civil Service as defendants. Plaintiff also listed as defendants:
Patricia Owens, employee, Michigan Employment Security Commission; James E. Culhane, employee, Michigan Employment Security Commission.
In the instant complaint, plaintiff alleges that defendant Owens became his supervisor in 1978; that Owens "behaved arrogantly and condescending [sic] to black clients” of the mesc office; that Owens "acted in an insulting manner towards black employees” and "in general treated black employees differently than whites similarly situated”; that in March, 1980, Owens threatened to discharge plaintiff if he did not return to work when, at the time, he was on disability for a verified medical condition; that Owens never displayed similar conduct towards white employees; that upon plaintiff’s return to work Owens "embarked on a systematic campaign of harassment”; that in the summer of 1980, Owens "initiated a confrontation with plaintiff over a misunderstanding concerning his time sheet” in the presence of fellow employees and clients; that thereafter Owens filed a criminal complaint against plaintiff for assault and battery, knowing that the charge was false; that Owens never subjected similarly situated white individuals to such treatment; that on March 13, 1981, defendant Culhane sent a letter to plaintiff which was "harassing in style, tone, and content”; that Owens knowingly caused a false letter to be written and placed in plaintiff’s personnel file; that plaintiff was denied unspecified promotions from 1977 to 1982 for which he was qualified; that "similarly qualified white individuals were not subjected to these forms of discrimination”; and that in December, 1982, plaintiff was no longer able to cope with the stress produced by the continued harassment and was "forced to retire.”
On November 8, 1984, defendants moved for summary or accelerated judgment, contending that:
1. Plaintiff had failed to exhaust his administrative remedies as required by the Civil Service Commission rules;
2. Plaintiff’s complaint against defendants Ow ens and Culhane was barred on the basis of res judicata;
3. Plaintiffs claims were barred by the statute of limitations;
4. Plaintiffs complaint failed to state a claim upon which relief can be granted; and
5. Plaintiff was not entitled to a jury trial.
On January 22, 1985, the circuit court granted defendants’ motion. Reasoning that several allegations of plaintiffs complaint were barred by the statute of limitations and that the remaining allegations were "mere conclusions,” the circuit court ruled that plaintiff had failed to state a claim upon which relief could be granted. The court also held that plaintiffs complaint against defendants Owens and Culhane was barred by res judicata because the prior federal action against these defendants had been involuntarily dismissed. The trial court did not reach the issues of exhaustion of administrative remedies or right to jury trial and we do not address them here.
i
Is plaintiffs complaint against Owens and Culhane barred by res judicata?
There are three prerequisites which must be met for a prior judgment to constitute a bar in a subsequent action: (1) the former action must have been decided on the merits; (2) the matter contested in the second action must have been decided in the first; and (3) the two actions must be between the same parties or their privies. Ward v DAIIE, 115 Mich App 30, 37; 320 NW2d 280 (1982).
The trial court concluded that plaintiffs action against Owens and Culhane was barred by the second federal district court order which dismissed the previously retained suit against Owens and Culhane "in their individual capacity” under FRCP 41(b) for failure to personally serve these defendants. An involuntary dismissal under FRCP 41(b) is an adjudication on the merits unless the court provides otherwise. Carter v SEMTA, 135 Mich App 261, 264; 351 NW2d 920 (1984), lv den 422 Mich 881 (1985). In its previous order, the federal district court had dismissed without prejudice the action against the state agencies and Owens and Culhane "as agents or employees.”
The federal district court and the plaintiff assume, without citation to authority, that there is a difference in legal effect between naming a party in his or her individual capacity and naming a party as an agent or employee. We need not consider the effect of drawing such a distinction in resolving the res judicata issue. Suffice it to say that the federal court chose to make a distinction, regardless of whether or not it is a distinction without a difference. Viewing the two orders together, it is clear that the district court did not intend to entirely dismiss the case against Owens and Culhane with prejudice. The first order expressly dismissed plaintiff’s claims against Owens and Culhane "as agents or employees . . . without prejudice.” "The inclusion of the term 'without prejudice’ in a judgment of dismissal ordinarily indicates the absence of a decision on the merits, and leaves the parties free to litigate the matter in a subsequent action, as though the dismissed action had not been commenced.” 46 Am Jur 2d, Judgments, § 484, pp 646-647. In our view, the fact that these defendants were later dismissed in their individual capacities had no effect on the earlier order which dismissed these defendants in their representative capacity "without prejudice.” Accordingly, we conclude that plaintiff’s subsequent suit against the individual defendants as "employees” in the state court was not barred by res judicata since that was precisely the capacity which the federal court stated in its first order was being dismissed without prejudice.
ii
Do the allegations of discriminatory conduct which are not barred by the statute of limitations state a claim on which relief can be granted?
The parties agree that the three-year period of limitation set forth in MCL 600.5805(8); MSA 27A.5805(8) applies here and that the complaint was filed on August 6, 1984. Thus the crucial date for consideration is August 6, 1981. In Robson v General Motors Corp, 137 Mich App 650, 653; 357 NW2d 919 (1984), lv gtd 422 Mich 938 (1985), this Court, following well-settled federal precedent, held that in an action for employment discrimination to avoid application of the statute of limitations there must be a violation within the limitation period, not merely the continuing effects of past violations. The trial court held that the allegations of discrimination in plaintiff’s complaint not barred by the statute of limitations were mere conclusions and thus insufficient to withstand summary judgment.
A motion for summary judgment under GCR 1963, 117.2(1), now MCR 2.116(C)(8), tests the legal basis of the complaint, not whether it can be factually supported. The factual allegations of the complaint are taken as true, along with any inferences which may fairly be drawn from the facts alleged. Unless the claim is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recover, the motion should be denied. Partrich v Muscat, 84 Mich App 724, 729-730; 270 NW2d 506 (1978).
Based on our examination of plaintiffs complaint, we conclude that the claim is not so clearly unenforceable that no factual development can justify a right to recover. While most of the specific instances of alleged discrimination occurred prior to August 6, 1981, plaintiff has generally alleged that Owens and Culhane engaged in a campaign of racial harassment and unequal treatment throughout the term of his employment in the mesc win program. Plaintiff alleged that finally in December, 1982, he was forced to retire because he was unable "to cope with the stress produced by the racially instigated unequal and disparate treatment he continued to receive at the hands of these defendants.” Plaintiff also alleged that from 1977 to 1982 he was denied unspecified promotions for which he was qualified and that similarly qualified white individuals were not subjected to these forms of discrimination. These allegations, if true, are sufficient to state a claim upon which relief can be granted under §202 of the Michigan Civil Rights Act, MCL 37.2202; MSA 3.548(202). At trial, plaintiff will have to establish that acts of racial discrimination occurred within three years of August 6, 1984, in order to prevail.
Reversed and remanded for further proceedings. | [
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R. I. Cooper, J.
Defendant was convicted of two counts of armed robbery, MCL 750.529; MSA 28.797, one count of felony-firearm, MCL 750.227(b); MSA 28.424(2), and one count of assault with intent to commit murder, MCL 750.83; MSA 28.278, by a jury on July 2, 1981. Trial had commenced on June 18, 1981. Defendant was sentenced to 13 to 30 years imprisonment on the robbery and assault charges to run concurrently and 2 years on the felony-firearm charge.
Witness Steven Arthur Hammerstrom testified that he and his date, Teresa Zeitz, stopped at a gas station shortly after midnight on Thanksgiving night, November 28, 1980, after leaving a local bar where he had three or four beers. After entering the gas station’s rest room, he heard someone else enter and turned to see a small caliber revolver pointed at his chest. The intruder told him to empty his pockets and face the wall. Witness Hammerstrom took brief looks at the intruder over the course of approximately 30 seconds. According to Mr. Hammerstrom, while emptying his pockets which included approximately $100, he was facing the intruder. As the intruder left, he told Mr. Hammerstrom not to leave for 15 minutes or he would be blown away. However, Mr. Hammerstrom heard a car horn beeping and looked out of the bathroom door to see the same man leaning into the open driver’s door of his girl friend’s car and hitting Ms. Zeitz with a pistol. Mr. Hammerstrom yelled at the assailant and the assailant fired two gunshots at Mr. Hammerstrom. Ms. Zeitz continued to struggle with the assailant by hanging onto her purse. However, she released the purse when the assailant again pointed the gun at Mr. Hammerstrom and fired a third shot. After obtaining the purse, the assailant ran behind the gas station and Mr. Hammerstrom ran around the front of the station in pursuit. The assailant fired a fourth shot at Mr. Hammerstrom before jumping into a waiting car driven by an unidentified person. Mr. Hammerstrom, who is color blind, described the assailant as a black male, medium complected, with a heavy build, approximately 5' 10" or 5' 11" in height, 20 to 25 years old, heavier than 160 pounds and with no mustache. Approximately one month after the incident, Mr. Hammerstrom viewed a line-up but did not make a positive identification of the defendant as the assailant. However, he did state that the defendant "looked like” his assailant. At the trial, Mr. Hammerstrom was unable to identify the defendant as the assailant.
Witness Teresa Zeitz testified that the lighting at the gas station was very bright. She observed a man pass within four to six feet of her with his face turned towards her. The man went into the same rest room that Mr. Hammerstrom had entered and closed the door. About a minute later the man came out of the rest room, approached her car, and opened the car door. He put a gun to her side and said, "give me your purse”. Witness Zeitz tried to pull her purse away and honked the car horn. The assailant hit her over the head with the gun approximately three times. At that point, Mr. Hammerstrom came out of the men’s room and yelled at the assailant. After the assailant shot at Mr. Hammerstrom, he fled with Mr. Hammerstrom in pursuit. Ms. Zeitz ran to the gas station window to ask the woman attendant to call the police. At the trial, witness Zeitz identified defendant Michael Holmes as her assailant. Ms. Zeitz also testified that she and Mr. Hammerstrom had been at a local bar for three or four hours and that she had consumed three or four beers. She testified that the area over the gas pumps was well lit with fluorescent lights, but that the side of the building where the rest rooms were located was somewhat darker, although there was lighting under the roof overhang. Ms. Zeitz attended the line-up which contained five suspects and, after approximately two minutes, identified defendant Holmes as the assailant. Her trial testimony showed that she observed the defendant to be the heaviest person in the line-up and also the tallest person, with oné exception. When asked by the defense attorney whether the defendant "stuck out like a sore thumb”, she replied, "to me he did”.
Witness Audrey Nance was the cashier at the gas station on the night of the incident. She testified that she looked out of the window when she heard a car horn blow. She observed a heavy-set black male, wearing a dark jacket and dark ski cap and standing by the open door of the Zeitz car. She was about 20 to 23 feet away and testified at the trial "as God is my witness, that is the man”, when asked to identify the defendant at the trial. However, at the line-up she did not make a positive identification for the reason that she thought the defendant’s nose was a little bit wider than it showed in a composite drawing and that, at the time of the incident, she was quite a distance away and the light was not very bright. However, at trial, she stated that, if she had seen the assailant again on the night of the incident, she could have identified him.
Detective Ronald Morgan testified that Mr. Hammerstrom and Ms. Zeitz had done separate composites. The defendant was arrested on December 12, 1980, approximately one week after Detective Morgan received the composites, and the lineup was held on December 30, 1980, over one month after the incident. Initially, Detective Morgan testified that the line-up was not one of the best line-ups he had ever conducted. However, he later testified on redirect examination that it was a very good line-up. Witness Morgan testified that the goal of a line-up is to get everyone to look as much alike as possible. On cross-examination, he testified that the inclusion of one of the five persons in the line-up was improper due to the disparity in size between that person and the defendant. Also he testified that the remaining three suspects were too small to be in the line-up with the defendant. During the line-up, the defendant’s first attorney objected to the line-up and departed, although the record is not clear as to his specific reason for departing. A second attorney, who did not object to the line-up, was provided. At the trial, the court denied defendant’s motion to dismiss defendant’s pretrial line-up and subsequent in-court identification. The trial court also denied both of defendant’s motions to suppress evidence of his prior armed robbery conviction. During deliberation, the jury informed the court that it could not agree on a verdict. The jury had been deliberating part of the morning and most of the afternoon. The court encouraged the jury to try again, and within a few minutes after resuming deliberation, the jury returned with a unanimous verdict of guilty.
The defendant did not testify and gave his reason, out of the presence of the jury, as being the trial court’s failure to suppress evidence of his prior conviction. The defendant’s defense was that of alibi. Defendant’s mother, Joan Holmes, testified that her son had accompanied her to defendant’s great-grandmother’s home for Thanksgiving dinner. She testified that she paid the defendant to wear a beige shirt, beige corduroy pants, black shoes, and a new beige coat which she had just purchased. Evidently the defendant was reluctant to go, and his mother, in her desire to have him attend, offered him money to attend the Thanksgiving dinner. Witness Holmes testified that her son left the Thanksgiving dinner at approximately 11:05 p.m. and returned home at 2:30 a.m. wearing the same clothes that she had provided him. Witness Kim McNeal, defendant’s cousin, testified that she and defendant had left the Thanksgiving dinner at 11:10 p.m. She stated that she dropped the defendant off at the home of a female friend who lived approximately a 15-minute drive away and that she did not see the defendant after that time. She also testified that the defendant was wearing beige pants, a beige overcoat, and black dress shoes. She testified that she remembered what the defendant was wearing because it was unusual for the defendant to be dressed up. Diane Blander, the female friend, testified that she had been at the Thanksgiving dinner and that the defendant was wearing beige pants and a beige coat. She testified that the defendant stayed at her home until about 2 a.m. Ms. Blander, on cross-examination, testified that she had had three criminal convictions within the previous ten years. Ms. Blander’s daughter and son, 15 and 12 years old, testified that the defendant wore beige clothing. According to the daughter, he had been at the Blander home until 2 a.m. The son testified that he fell asleep and did not know when the defendant left. Finally, defendant’s sister, Michele Denise Holmes, testified that the defendant wore beige corduroy pants and a beige jacket, that he left the Thanksgiving dinner at approximately 11 p.m. and returned home at approximately 2:30 a.m.
On appeal, defendant argues that the trial court abused its discretion in failing to exclude evidence of his prior conviction and that the court committed reversible error by failing to articulate on the record the factors the court considered in making its determination. The admissibility of evidence of prior convictions is governed by MRE 609(a), which provides in pertinent part:
"For the purpose of attacking the credibility of a witness, evidence that he has been convicted of a crime shall be admitted if elicited from him or established by public record during cross-examination but only if
"(1) the crime was punishable by death or imprisonment in excess of one year under the law under which he was convicted, or the crime involved theft, dishonesty or false statement, regardless of the punishment, and
"(2) the court determines that the probative value of admitting this evidence on the issue of credibility outweighs its prejudicial effect and articulates on the record the factors considered in making the determination.”
The trial court has discretion to admit evidence of a defendant’s prior convictions for impeachment purposes. People v Avery, 114 Mich App 159; 318 NW2d 685 (1982); People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). This discretion requires the trial court to balance the probative value of evidence of the prior convictions against the prejudicial effect. People v Avery, supra; People v Hughes, 411 Mich 517; 309 NW2d 525 (1981). In its balance of the probative value against the prejudicial effect on the issue of credibility, the court must weigh the following three factors:
"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 sub stantially the same conduct for which the defendant is on trial (are the offenses so closely related that the danger that the jury will consider the defendant a 'bad man’ or infer that because he was previously convicted he likely committed this crime, and therefore create prejudice which outweighs the probative value on the issue of credibility?), and (3) the effect on the decisional process if the accused does not testify out of fear of impeachment by prior convictions (are there alternative means of presenting a defense which would not require the defendant’s testimony, Le., can his side of the story be presented, or are there alternative, less prejudicial means of impeaching the defendant?).” People v Crawford, 83 Mich App 35, 39; 268 NW2d 275 (1978).
The purpose for this threefold inquiry is:
"1) To put before the jury only those prior convictions indicative of the defendant’s disposition toward truthfulness and veracity; and
"2) To keep from the jury those convictions which, although they may be indicative of defendant’s disposition toward truthfulness, may interfere with the jury’s ability to determine the defendant’s guilt or innocence on the basis of the evidence. Such interference is what is meant by 'prejudice’.
"If, after evaluating these factors, the judge believes the prejudicial effect of admitting prior conviction evidence outweighs its probative value, the evidence should be excluded.” People v Hughes, 411 Mich 517, 520-521; 309 NW2d 525 (1981), reh den 412 Mich 1101 (1981).
On appeal, the standard to be employed is:
"1) whether the trial judge recognized his discretion to decline to admit evidence of the convictions, and 2) whether the trial judge’s decision was so palpably and grossly violative of fact or logic as to amount to an abuse of discretion.” People v Carpenter, 120 Mich App 574, 580; 327 NW2d 523 (1982).
The Supreme Court in People v Talley, 410 Mich 378, 387; 301 NW2d 809 (1981), quoting from People v Charles O Williams, 386 Mich 565, 573; 194 NW2d 337 (1972), defined abuse of discretion as follows:
" '[A]n abuse of discretion involves far more than a difference in judicial opinion between the trial and appellate courts. The term discretion itself involves the idea of choice, of an exercise of the will, of a determination made between competing considerations. In order to have an "abuse” in reaching such determination, the result must be so palpably and grossly violative of fact and logic that it evidences not the exercise of will but perversity of will, not the exercise of judgment but defiance thereof, not the exercise of reason but rather of passion or bias.’ ”
This Court is satisfied that the trial court exercised proper discretion in responding to defendant’s two motions to suppress evidence of his prior record. The trial court stated, upon hearing the first motion, that it wished to research the question again. The trial judge referred to MRE 609 and stated that he would take the motion under advisement. At that point, the prosecutor referred the court to People v Jones, 98 Mich App 421; 296 NW2d 268 (1980), with the observation that the Court in the Jones case allowed impeachment by evidence of two prior convictions of larceny in a building when the defendant was charged with larceny in a building. After the prosecution had presented its case, defense counsel again presented its motion in limine to suppress evidence of defendant’s prior convictions. The defense attorney argued that the evidence in the case was far from overwhelming in indicating defendant’s guilt and that the defendant would be fearful of taking the witness stand if he would be impeached by evidence of his prior convictions. The defense attorney emphasized that the similarity of prior convictions to a present charge is considered very prejudical. He further assured the trial court that, if evidence of prior convictions were suppressed, he would not convey an impression to the jury that the defendant had not committed any prior crimes. The trial judge responded by stating that he had reviewed the case of People v Jones, and that he was in complete agreement with People v Jones due to the fact that evidence of a prior conviction would be allowed in order to address credibility and that a record of stealing and dishonesty or theft would be more probative than prejudicial, and that he realized that he had discretion in making that determination and that he made it after giving the matter careful consideration. After a short recess, the defense attorney advised the court that his client decided to not take the witness stand due to the judge’s ruling that evidence of the prior conviction would be admissible for impeachment purposes.
Having ascertained that the court did exercise discretion, the next question is whether the trial judge abused his discretion by ruling that evidence of defendant’s prior conviction for armed robbery was admissible to impeach defendant. Because of the trial court’s reference to People v Jones, 98 Mich App 421; 296 NW2d 268 (1980), it is important to analyze the Jones case. The Jones case also dealt with a prior conviction which was identical to the charge being faced by the defendant; i.e., larceny in a building. The opinion in the Jones case observes that "frequently the issue of credibility is a comparison of the believability of the alleged victim or of an eyewitness with the defendant’s denial”. Jones, supra, p 428. The Court in Jones observed that credibility becomes a central issue when the defendant claims that he was "ten miles away” at the time of the incident. Jones, supra, p 429. This panel disagrees with reliance on Jones when it states:
"[B]oth the prejudicial effect and the probative value on the issue of credibility are because of the true fact of life, based on human experience and fundamental to human insight, that it is more probable that a person has committed a crime if he has done it before, maybe several times. A jury should not be deprived of that information simply because the crimes are similar or because the criminal record is extensive.” Jones, supra, p 429.
The foregoing observation is directly contrary to present case law which holds that this constitutes one of the prime reasons why such evidence should not be allowed. However, the opinion in the Jones case continues to observe that credibility constitutes a crucial factor to be considered under the balancing requirements of MRE 609, which is applicable where the defendant’s testimony directly contradicts the testimony of one or more key prosecution witnesses. Jones, supra, p 430. Finally, the opinion in the Jones case observes that convictions involving theft, dishonesty, or false statement are especially probative and, if a trial court found that the probative value outweighed the prejudical effect, its decision could hardly be considered an abuse of discretion. Jones, supra, p 432. Although this Court, as stated above, does not fully agree with the analysis in People v Jones, we do not find that the trial court here abused its discretion after having studied the Jones case and finding that it provided a valid precedent for the trial court’s determination regarding defendant Holmes.
The fact that the prior conviction was for a criminal offense identical to one of the present counts charged requires more caution regarding the admissibility of evidence of that conviction. At the time the trial court made its determination, the case of People v Hughes, 411 Mich 517; 309 NW2d 525 (1981), had not yet been decided. Also, it is significant that, in the Hughes case, evidence of the prior conviction was for an offense approximately 14 years old, thus violating the 10-year rule. However, the case of People v Monasterski, 105 Mich App 645; 307 NW2d 394 (1981), was in effect. The opinion in the Monasterski case states that, although a defendant’s decision not to testify out of fear of impeachment shows he has been adversely affected by the trial court’s ruling, it is not an abuse of discretion to refuse to suppress evidence of the defendant’s criminal record where the defendant was able to present his alibi defense through another witness. Monasterski, supra, p 656. Here defendant presented his alibi defense through fivfe defense witnesses; thus this Court is satisfied that the defendant had alternative means of providing his defense and that the trial court, therefore, did not abuse its discretion by failing to suppress evidence of the defendant’s prior conviction for armed robbery. Finally, the similarity between the prior conviction and the charged crime does not, per se, bar the use of evidence of prior convictions for impeachment purposes pursuant to People v Carpenter, 120 Mich App 574; 327 NW2d 523 (1982). The Court in Carpenter stated that evidence of prior convictions is especially probative where there is a "classic credibility contest between defendant and the prosecution’s witnesses”. Carpenter, supra, p 581. The Court in Carpenter concluded that, in such a credibility contest, it was proper for the court to conclude that the probative value outweighed any prejudicial effect and cited People v Monasterski, supra, to that effect. This Court finds that the issue of credibility is also crucial in the present case and that the trial court did not abuse its discretion. The case of People v Hayes, 410 Mich 422; 301 NW2d 828 (1981), is distinguishable in that the trial judge determined that he would either admit evidence of prior convictions of prosecution and defense witnesses equally, or he would exclude such evidence equally. The Court in Hayes found that the trial court had impermissibly delegated its discretionary powers to the parties. It is interesting to note that the Court in Hayes referred to Gordon v United States, 127 US App DC 343, 347; 383 F2d 936, 940 (1967), which recognizes that admission of evidence of "the same crime should be admitted sparingly”, but that, "one solution might well be that discretion be exercised to limit the impeachment by way of a similar crime to a single conviction and then only when the circumstances indicate strong reasons for disclosure, and where the conviction directly relates to veracity”. Thus again, there is a suggestion that evidence of a prior conviction may be admitted provided there is a strong reason for disclosure. Finally, the case of People v Baldwin, 405 Mich 550; 275 NW2d 253 (1979), is distinguishable in that the trial court found that the similarity of the prior offense favored admissibility. The trial court’s interpretation was thus found to constitute error requiring reversal due to the Court’s having applied an incorrect standard.
Defendant argues that the pretrial line-up was constitutionally defective. Defense counsel, on appeal, incorrectly argues that the trial court denied a request for an evidentiary hearing as to the constitutionality of the line-up. This assertion is incorrect in that defense counsel submitted a motion to suppress, but did not move for an evidentiary hearing. A photograph of the pretrial line-up was admitted into evidence, thus enabling the trial court to review defendant’s argument that there were defects in the line-up due to height and weight discrepancies. However, such discrepancies do not necessarily make line-ups constitutionally defective. People v Taylor, 24 Mich App 321; 180 NW2d 195 (1970); People v Hughes, 24 Mich App 223; 180 NW2d 66 (1970); People v Mack, 21 Mich App 96; 174 NW2d 857 (1970). On appeal, we have also reviewed exhibit 2 which is a photograph of the line-up and observe that the line-up was not impermissibly suggestive in that, although defendant was next to the tallest person in the line-up, his height was substantially similar to that of three of the other persons involved in the line-up. Further, the defendant may have been somewhat heavier than others in the line-up, yet his somewhat stocky build was also substantially similar to three other persons in the line-up. One of the persons in the line-up who was not the defendant was taller than the rest and had a slimmer build; thus his presence may have impaired the line-up from being composed of what otherwise would have been five very similar people. However, because the tallest person was not the defendant, his presence did not create any impermissible suggestiveness. Finally, even regarding said tallest person, his height and build was not of a substantial difference but only a noticeable difference. Further, this Court concludes that there was an independent basis for identification of the defendant based upon witness Zeitz’s observation of the defendant prior to his entering the rest room and his face-to-face confrontation with her as he tried to seize her purse. Further, although the gas station attendant did not positively identify the defendant at the line-up, she expressed considerable certainty at the trial stage. Finally, the Court observes that none of the three identifying witnesses identified someone other than the defendant as the perpetrator. Certainly, the situation involved a high degree of stress resulting from the robbery and firing of a weapon. However, there is no showing that any of the identifying witnesses reacted in a manner that would show loss of control or mental deviation. In fact, witness Zeitz continued to assert herself against the defendant by wrestling to keep her purse and only yielded when the defendant shot at her boyfriend. The gas station attendant never was directly threatened and there was no showing that her psychological state was otherwise impaired. In conclusion, based on People v Kachar, 400 Mich 78; 252 NW2d 807 (1977), this Court finds that the factors weighed show that the in-court identification had an independent basis.
Pursuant to People v Sullivan, 392 Mich 324; 220 NW2d 441 (1974), when a jury becomes deadlocked, the proper instructions for the jury are derived from ABA standard jury instruction 5.4 which reads as follows:
"Length of deliberations; deadlocked jury.
"(a) Before the jury retires for deliberation, the court may give an instruction which informs the jury;
"(i) that in order to return a verdict, each juror must agree thereto;
"(ii) that jurors have a duty to consult with one another and to deliberate with a view to reaching an agreement, if it can be done without violence to individual judgment;
"(iii) that each juror must decide the case for himself, but only after an impartial consideration of the evidence with his fellow jurors;
"(iv) that in the course of deliberations, a juror should not hesitate to reexamine his own views and change his opinion if convinced it is erroneous; and
"(v) that no juror should surrender his honest conviction as to the weight or effect of the evidence solely because of the opinion of his fellow jurors, or for the mere purpose of returning a verdict.
"(b) If it apears to the court that the jury has been unable to agree, the court may require the jury to continue their deliberations and may give or repeat an instruction as provided in subsection (a). The court shall not require or threaten to require the jury to deliberate for an unreasonable length of time or for unreasonable intervals.
"(c) The jury may be discharged without having agreed upon a verdict if it appears that there is no reasonable probability of agreement.”
In the present case, the trial court gave the following instruction after the jury had deliberated for approximately one-half day:
"In order to return a verdict, each juror must agree thereto; that jurors have a duty to consult with one another and to deliberate with a view to reaching an agreement, if it can be done without violence to individual judgment.
"That each juror must decide the case for himself, but only after an impartial consideration of the evidence with his fellow jurors;
"That in the course of deliberations, a juror should not hesitate to reexamine his own views and change his opinion if convinced it is erroneous; and that no juror should surrender his honest conviction as to the weight or effect of the evidence solely because of his opinion of his fellow jurors, or for the mere purpose of returning a verdict.
"You should consider that the case should, at some time, be decided; that you are selected in the same manner, and from the same source, from which any future jury must be; and there is no reason to suppose that the case will ever be submitted to twelve men and women more intelligent, more impartial, or more competent to decide it, or that more clearer evidence will be produced on the one side or the other. And, with this in view, it is your duty to decide the case if you can conscientiously do so without surrendering your conscientious belief.”
Pursuant to People v Johnson, it is necessary to determine whether there has been a substantial deviation from the instruction approved in People v Sullivan, supra, and from ABA standard jury instruction 5.4. It is readily apparent that the trial court followed § 5.4 literally until the last full paragraph cited above. The additional language contains no pressure, threats, embarrassing assertions, or other wording that would cause this Court to feel that it constituted coercion. The fact that the jury returned within one-half hour does not in itself constitute proof of coercion. The trial court specifically stated that any decision reached should be reached conscientiously without surrendering one’s conscientious belief. The additional language supplied by the court did not constitute error requiring reversal and did not constitute a substantial deviation. People v Johnson, 112 Mich App 41; 314 NW2d 794 (1981). By so ruling, this Court, however, does not advocate that trial courts supply such additional language in their instructions to a deadlocked jury.
Affirmed.
Shepherd, J., concurred. | [
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Per Curiam.
Dean E. Beach and Jeffrey R. Beach appeal from a Midland Circuit Court order granting the Midland County Road Commission summary disposition. We affirm.
This case arises out of an automobile accident which occurred at the intersection of M-20, a state highway, and Meridian Road, a Midland County road. The accident occurred at about 6:00 p.m. on June 10, 1986. Dean E. Beach was driving a pickup truck belonging to his passenger, Jeffrey R. Beach. Joann Lain was driving a car belonging to her passenger, Clifford Munson. Lain and Munson were traveling north on Meridian Road. The Beaches were traveling east on M-20 and ran a red traffic signal, striking Munson’s car. Lain died that day and Munson died on December 3, 1986.
On September 11, 1986, the personal representatives of the estates of Lain and Munson filed a complaint against the Beaches and the road commission in Midland Circuit Court, alleging negligence. They also filed a complaint against the Michigan Department of Transportation in the Court of Claims. By stipulation of the parties, the case against mdot was transferred to Midland Circuit Court and joined with the other case.
The road commission’s answer asserted by way of an affirmative defense that mdot was in control of the highway. The Beaches filed a cross-claim against the road commission and mdot, seeking contribution and indemnification based on allegations of negligent maintenance of a public highway. The Beaches claimed that, because the traffic light was new and had previously operated as a flashing light, the commission and mdot had a duty to warn the public about the new light. The road commission moved for summary disposition on the grounds that it was immune from liability, that plaintiffs had failed to state a claim upon which relief could be granted, and that no genuine issue as to any material facts existed. See MCR 2.116(C)(7), (8), and (10). The road commission then amended its motion for summary disposition to also apply to the cross-claim. Plaintiffs’ claims against the road commission were dismissed by stipulation at a later date.
The trial court ordered summary disposition in favor of the road commission against the Beaches, finding that the road commission had no control over the intersection and, therefore, that it had no duty to warn of any dangers.
The Beaches appeal the dismissal of their cross-claim, arguing that the trial court erred in finding that the road commission had no duty to warn of a new traffic signal installed at the intersection.
While the road commission moved for summary disposition under MCR 2.116(C)(7), (8), and (10), the trial court found that the Beaches had failed to state a claim. Therefore, we will proceed under the assumption that the motion was granted under MCR 2.116(C)(8).
A motion for summary disposition pursuant to MCR 2.116(C)(8) tests the legal sufficiency of the pleadings, viewing the facts alleged in the light most favorable to the nonmoving party and accepting the plaintiff’s well-pled facts as true. Burnett v City of Adrian, 414 Mich 448, 457; 326 NW2d 810 (1982). Granting a motion for summary disposition is appropriate only where the claim is clearly unenforceable as a matter of law and no factual development can possibly justify a right to recovery. Id., at 457-458.
Governmental agencies are immune from any tort liability that would arise out of the operation and maintenance of public highways. MCL 691.1407; MSA 3.996(107). Governmental immunity is not available as a defense to a governmental agency where the injuries arise out of the failure to maintain a public highway under its jurisdiction in reasonable repair so that it is reasonably safe for travel. MCL 691.1402; MSA 3.996(102).
Under the Michigan Constitution, the State Transportation Commission and the state Department of Transportation have jurisdiction over state highways. Const 1963, art 5, § 28; Bennett v City of Lansing, 52 Mich App 289, 294; 217 NW2d 54 (1974), lv den 399 Mich 840 (1977). Intersections of state highways and county roads are within the state’s jurisdiction. See Tuttle v Dep’t of State Highways, 397 Mich 44; 243 NW2d 244 (1976).
Since the accident occurred at an intersection under the exclusive jurisdiction of mdot and the road commission had no jurisdiction over that intersection, the road commission had no duty to warn of possible hazards associated with the intersection. The failure of the road commission to post signs on its own road warning of possible dangerous conditions which are under the exclusive jurisdiction of another governmental entity is not actionable. There is no duty on the part of the road commission to warn of possibly dangerous conditions which are under the exclusive jurisdiction of another governmental entity, in this case mdot. To impose such a duty would be an expansion of the statutory highway exception to governmental immunity. The Beaches’ claim of negligence against the road commission is unenforceable as a matter of law, and the trial court properly granted summary disposition to the road commission.
We decline to address the Beaches’ nuisance claim, since they did not allege nuisance in their complaint.
Affirmed. | [
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Per Curiam.
Defendant was convicted of receiving and concealing stolen property worth more than $100, MCL 750.535; MSA 28.803, following a bench trial. He argues that the prosecutor failed to prove that defendant had the requisite guilty knowledge. We affirm.
On February 24, 1985, at 2:00 a.m., the police pulled defendant over for running a stop sign. Defendant could not produce registration for the van he was driving. He told the officers that he was working on the van and had had it for about six months. Upon a more thorough investigation, the officers observed that: the vehicle identification number plate was missing; a new ignition switch was hanging down under the dash, dangling from the wires; another ignition switch was lying on the floor; the federal sticker from the doorjamb was missing; the van had been recently painted; and the license plate was from another Ford van also being repaired in defendant’s shop.
The standard for reviewing a sufficiency of the evidence claim in an appeal from a bench trial is whether, viewing the evidence in a light most favorable to the prosecution, a rational trier of fact could have found the crime’s essential ele ments proven beyond a reasonable doubt. People v Petrella, 424 Mich 221, 268-270; 380 NW2d 11 (1985). The trial court used the above evidence to find the element of guilty knowledge. As this Court has noted, guilty knowledge generally cannot be proven by direct evidence but must be inferred from all the circumstances. People v Salata, 79 Mich App 415, 421; 262 NW2d 844 (1977).. Guilty knowledge means not only actual knowledge, but also constructive knowledge through notice of facts and circumstances from which guilty knowledge may be inferred. People v Tantenella, 212 Mich 614, 621; 180 NW 474 (1920). The circumstances may justify the inference that a defendant received goods with the belief that they were stolen. People v Wolak, 110 Mich App 628, 632; 313 NW2d 174 (1981), lv den 414 Mich 940 (1982). Sufficient evidence to infer guilty knowledge was found in People v Biondo, 89 Mich App 96, 98; 279 NW2d 330 (1979), where it was evident that the ignition switch of a vehicle had been tampered with.
Viewing the evidence here in a light most favorable to the prosecution, we conclude that a rational trier of fact could have found the element of guilty knowledge proven beyond a reasonable doubt. The trial court did not err.
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J.D. Payant, J.
Pursuant to our order of December 8, 1988, granting rehearing of People v Perlos, 170 Mich App 75; 428 NW2d 685 (1988), we have addressed the limited issue of whether these five consolidated cases should be remanded to the circuit and district courts. We answer in the affirmative.
Although our decision was grounded on both state and federal constitutional provisions, we find the federal constitutional basis controlling for purposes of the applicability of federal precedent. Michigan v Long, 463 US 1032; 103 S Ct 3469; 77 L Ed 2d 1201 (1983). The people should therefore be afforded the opportunity to establish whether the blood-alcohol test results are admissible under the “independent source doctrine” held viable in Murray v United States, 487 US —; 108 S Ct 2529; 101 L Ed 2d 472 (1988). We did not have the benefit of that precedent in rejecting the prosecution’s independent source doctrine claims when this case was briefed, argued and decided. To the extent we held that it would be impossible for the prosecution to establish that the evidence has a source independent of constitutional illegality, we have been overruled by the United States Supreme Court’s opinion in Murray v United States, supra.
The defendants have argued that we are not bound by a plurality decision of the United States Supreme Court. We find that we are so bound. Negri v Slotkin, 397 Mich 105, 110; 244 NW2d 98 (1976).
Defendants also argue that our opinion striking MCL 257.625a(9); MSA 9.2325(1)(9) as unconstitutional strikes also the last sentence of that section regarding medical entity immunity. Our opinion was not based on any interpretation of, and does not implicate, the validity of the last sentence of § (9).
People v England, 176 Mich App 334; 438 NW2d 908 (1989), was released by another panel of this Court and directly conflicts with our decision in this case. We have certified a conflict to the Supreme Court. Our decision, however, is law of the case sub judice.
We adopt the remedy employed by the majority in Murray v United States, supra, and remand these cases to the circuit court with instructions that it remand to the district courts to determine whether the evidence, which was obtained without a warrant, may be purged of any taint by the prosecutor’s establishment of independent acquisition of said evidence in accordance with Murray v United States, supra.
Remanded. We do not retain jurisdiction. | [
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Per Curiam.
Defendant was convicted following a bench trial of attempting to obtain money over $100 by false pretenses, MCL 750.92, 750.218; MSA 28.287, 28.415. He was sentenced to one year of probation, nonreporting, and appeals as of right.
Defendant, an attorney, was assigned to represent an indigent defendant, Tyrone Lake, who was charged with four offenses. A pretrial negotiation was held on December 17, 1976, in. which Lake did not participate. The assistant prosecuting attorney told defendant that if Lake would plead guilty to two of the charged offenses 'within 30 days the other two would be dismissed. According to the testimony of Lake, defendant then approached Lake, who had been waiting in the hallway, and asked him how much he would pay to get the sentence on one of the charges reduced from life to a year’s probation. Lake replied, "Anything.” Defendant then allegedly said: "If I had two thousand dollars, then I could get that reduced down, the charges knocked off, the life sentence knocked off and reduced down to a year’s probation.” Shortly after this conversation, Lake went to the police. A search warrant was obtained authorizing a wiretap of defendant’s office and home phones. Another search warrant was obtained authorizing participant monitoring. The police then taped a meeting between Lake and defendant on December 29, 1976. At that meeting, Lake gave defendant $800 supplied by the police. At one point defendant said: "I’m going to call and ask my man if we can drop those charges, get those charges, the two I told you about.” Shortly thereafter, defendant was arrested.
Defendant was originally charged with one count of obtaining money by false pretenses, MCL 750.218; MSA 28.415, and, after, a preliminary examination, he was bound over for trial on that charge. In response to defendant’s motion to quash the information, the trial court ordered that the information be amended to charge attempt to obtain money over $100 by false pretenses. Defendant then moved for rehearing on this motion to quash. The trial court granted the motion. The people then appealed to this Court. In an unpublished per curiam opinion, Docket No. 77-3988, decided October 17, 1979, this Court reversed and reinstated the information charging attempt. Defendant was then tried before the court sitting without a jury, resulting in his conviction.
Defendant contends that the amended information was defective because it did not charge a crime. The amended information stated that defendant:
"Did attempt to obtain money of the value of over $100 designedly and with intent to defraud or cheat the above-named complainant by a false pretense, to wit: the representation that the claim or representation that he could procure the dismissal of certain criminal charges and obtain a sentence of probation on other criminal charges, then pending against complainant in Recorder’s Court Case No. 76-09788, if complainant would pay a substantial sum of money, contrary to sec. 750.218, MCL.”
Initially, we address the people’s argument that the "law of the case” doctrine bars our review of the above claim. In People v Stinson, 113 Mich App 719, 730; 318 NW2d 513 (1982), lv den 417 Mich 957 (1983), this Court said:
"Where a prior ruling of this Court concerns the same question of law in the same case, the doctrine of the law of the case applies and the prior ruling is controlling.”
The people maintain that our prior ruling reversing the trial court’s order quashing the information controls our decision on defendant’s challenge to the information on this appeal. We disagree. The question involved in the earlier appeal was whether the examining magistrate abused his discretion in binding the defendant over on the charge of obtaining money over $100 by false pretenses. This Court concluded that there was enough evidence to support the bind-over. The issue in this appeal, however, does not involve the bind-over. Rather, it challenges the information on its face without reference to the evidence received at the preliminary examination. As the Supreme Court said in People v Webb, 127 Mich 29, 31; 86 NW 406 (1901):
"The sufficiency of an information does not depend upon the proofs. It either is or is not, upon its face, a good information”.
Inasmuch as the question of law resolved in the first appeal is not now before us, the law of the case doctrine does not apply.
Defendant desires that we reverse his conviction because the information failed to set forth facts which would, if proven, establish the falsity of the representation. We do not find that this omission rendered the information fatally defective or that reversal of defendant’s conviction is warranted.
A defect in an information may be amendable upon proper and timely objection by a defendant. MCL 767.76; MSA 28.1016; People v Fuzi, 46 Mich App 204, 209-210; 208 NW2d 47 (1973). The controlling question is whether such an amendment would be prejudicial to the accused. Fuzi, supra. A defendant is not prejudiced by an amendment to the information to cure a defect in the offense charged where the original information was sufficient to inform the defendant and the court of the nature of the charge. People v Mahone, 97 Mich App 192, 195; 293 NW2d 618 (1980); People v Corbeil, 77 Mich App 691; 259 NW2d 193 (1977). Here the information, containing a general averment that the representation constituted a false pretense, was sufficient to satisfy defendant’s due process right to be apprised of the charges he was called upon to defend against. Cf. People v Mast, 126 Mich App 658; 337 NW2d 619 (1983).
Since defendant’s objection to this defect in the information was not raised below, reversal would be appropriate only if a manifest injustice resulted from the defect. MCL 767.76; MSA 28.1016; People v Mast (On Rehearing), 128 Mich App 613; 341 NW2d 117 (1983); People v Laslo, 78 Mich App 257, 261-262; 259 NW2d 448 (1977). Because the defect could have been corrected by amendment upon timely objection, we perceive no such injustice.
Defendant’s remaining arguments require little discussion. Other defects in the information cited by defendant were similarly not raised below and are hence not preserved for appeal. The representation set forth in the information was one of existing fact, as is correctly discerned in the concurring opinion. The trial court’s findings of fact were adequate, and defendant was found to have employed the same false pretense alleged in the information.
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Sawyer, P.J.
Defendant was convicted, following a jury trial, of wilful and malicious destruction of police property. MCL 750.377b; MSA 28.609(2). Defendant had been previously convicted of being a third-felony offender. MCL 769.11; MSA 28.1083. He was thereafter sentenced to serve sixty-four to ninety-six months in prison. Defendant’s conviction arises following his second trial on this offense, his initial conviction having been reversed by this Court in an unpublished opinion per curiam, decided June 26, 1986 (Docket No. 83274). Defendant again appeals and we reverse in part.
Defendant first argues that the trial court erred in allowing the use of his prior convictions for impeachment purposes. This Court, however, determined in the first appeal that use of the prior convictions was permissible. Since defendant did not seek further appellate review of that determination, the doctrine of the law of the case precludes him from relitigating the issue now. CAF Investment Co v Saginaw Twp, 410 Mich 428, 454; 302 NW2d 164 (1981).
Subsequent to the submission of this case at oral argument, we granted defendant’s request to file a supplemental brief. In that brief defendant raises two additional issues. First, defendant argues that the prosecutor failed to bring defendant to trial within 180 days after we reversed his conviction, in violation of the so-called 180-day rule. See MCL 780.131; MSA 28.969(1). We disagree.
As this Court explained in People v Bradshaw, 163 Mich App 500, 505; 415 NW2d 259 (1987), the 180-day rule does not require that a defendant be brought to trial within 180 days, but only that the prosecutor make a good-faith effort to do so:
The 180-day rule does not require that the trial be commenced within that period of time. Rather, the statute obligates the prosecutor to take good faith action on the case during the 180-day time period and to proceed promptly in readying the case for trial. If a prosecutor takes such good faith action, jurisdiction over the case will not be lost unless the initial action is followed by inexcusable delay that evidences an intent not to bring the case to trial promptly. People v Till, 115 Mich App 788, 792; 323 NW2d 14 (1982), lv den 417 Mich 929 (1983).
Turning to the case at bar, we must first determine when the 180-day period began running. Defendant argues that the 180 days should run from August 15, 1986, the date this Court entered its order denying the prosecutor’s motion for rehearing of our opinion. Defendant further claims that there was no explanation for the twenty-six days which passed from the August 15 denial of rehearing until September 10, 1986, when we remanded the case and remitted the record to the trial court. Defendant’s argument is without merit.
Initially, there is a clear explanation for the "delay” in remitting the record to the trial court. MCR 7.210(1) provides that this Court must promptly return the lower court record, along with a certified copy of our opinion, to the trial court after the time has passed for the timely filing of an application for leave to appeal to the Supreme Court. A party has twenty-one days after the denial of a timely filed motion for rehearing to file a timely application for leave. MCR 7.302(C)(2)(c). Thus, in the instant case, the parties had until the close of business on Friday, September 5, 1986, to file an application for leave. Accordingly, the earliest this Court could have returned the lower court record under the court rules was Monday, September 8, 1986. We believe that this Court was "prompt,” as required by the court rule, in returning the record two days later, on September 10, 1986. Therefore, we believe that the appropriate date to begin the calculation of the 180-day period is September 10, 1986, the date this Court returned the case to the circuit court under MCR 7.210(1).
Trial was, in fact, scheduled to commence on Friday, March 6, 1987, or 177 days after September 10, 1986. That trial date was adjourned at the request of defense counsel. The stated reason was that defense counsel was scheduled to be in trial in federal court beginning on Monday, March 9, 1987. In addition to the possibility that the federal trial would begin before the trial in this case concluded, defense counsel indicated that he could not properly prepare for both trials in time. Moreover, defendant specifically agreed on the record to the adjournment and waived his speedy-trial rights. Furthermore, the record reflects that the trial date had been cleared with defense counsel before his appointment. Finally, we note that the attorney appointed to represent defendant at the second trial was the same attorney who represented defendant in the prior appeal; thus, defense counsel was familiar with the case.
For the above reasons, we conclude that the prosecutor made a good-faith effort to bring defendant to trial within 180 days and that any delay after March 6, 1987, is excusable. The provisions of MCL 780.131; MSA 28.969(1) were not violated.
Next, defendant argues that the trial court erred in not retrying him on the habitual-offender charge. Rather than retrying defendant on the habitual-offender charge, the trial court concluded that a new trial was unnecessary since this Court had left undisturbed defendant’s habitual-offender conviction following the first trial. We disagree.
This issue appears to be one of first impression. We believe, however, that the issue may be resolved by looking to the nature of the habitual-offender charge. Habitual-offender charges are not separate offenses, but serve to augment and increase the punishment for second and subsequent convictions. People v Walters, 109 Mich App 734, 739; 311 NW2d 461 (1981), rev’d on other grounds 412 Mich 879; 313 NW2d 283 (1981); People v Staples, 100 Mich App 19, 21-22; 299 NW2d 1 (1980). Indeed, the statute itself refers to the filing of a "supplemental” information. MCL 769.13; MSA 28.1085. Simply put, a habitual-offender conviction cannot be obtained without first obtaining a conviction on the underlying offense.
If the existence of a habitual-offender conviction rests on the existence of a conviction on a substantive offense, it necessarily follows that if the conviction on the substantive charge no longer exists, neither does the habitual-offender conviction. That is, since a habitual-offender conviction cannot exist on its own, once the conviction on the underlying offense is invalidated, the conviction on the corresponding habitual-offender charge is also, of necessity, invalidated.
Accordingly, we hold that where a defendant is convicted as a habitual offender and his conviction on the substantive charge is reversed on appeal, the defendant must be retried on both the substantive and habitual-offender charges in order to sentence him as a habitual offender following a recon viction on the underlying charge. Therefore, we reverse defendant’s sentence as a habitual offender. On remand, the trial court shall either sentence defendant on the underlying, unsupplemented conviction or defendant shall be retried on the habitual-offender charge and thereafter resentenced in accordance with the outcome of that trial.
Finally, as for the arguments raised by defendant in his original brief related to sentencing, in light of our reversal of defendant’s sentence as a habitual offender, we need not consider those arguments.
Reversed and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction._
Provided that no such application has been filed.
In fact, the retrial proved to be a two-day jury trial.
Defendant and the prosecutor may also, of course, negotiate a plea on the habitual-offender charge. | [
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V. J. Brennan, P. J.
This suit to quiet title to real property was filed by plaintiff and involved title to the parties’ marital home. Defendant appeals as of right from the judgment of the trial court in favor of plaintiff.
The plaintiff husband and the defendant wife were divorced in 1978. There were apparently numerous disputes subsequent to the divorce about the custody of the children and how the children should be raised. Pursuant to the judgment of divorce and property settlement agreement, plaintiff received custody of the parties’ minor children and remained in the marital home to raise the children. However, the settlement agreement provided that when the youngest of the children reached age 18, the marital home was to be sold and the proceeds divided equally between the parties with the husband to receive credit for his mortgage payments. Plaintiff brought this action to quiet title in the marital home.
Mr. Stinebaugh testified that his wife came to him in November, 1980, and offered him her interest in the marital home as a gift. In support of his contention that his wife had made him a valid gift of her interest in the home, plaintiff introduced, as his exhibit No. 4, a written, notarized statement, signed by defendant which stated:
"November 21, 1980
"I, Georgette (Stinebaugh) Bristol, hereby release my claim from the previous agreement in my divorce settle ment of September 11, 1978, to any rights, claims or proceeds from John E. Stinebaugh having to sell the house located on 11237 Main St., Honor, Michigan, when our youngest child, Jeffrey Eric Stinebaugh reaches 18 years of age as previously agreed upon. I hereby give John E. Stinebaugh my claim on the home. It is all his to do with as he sees fit, this is my own decision and my wish.
"Sincerely,
"/s/ Mrs. Georgette Bristol "Mrs. Georgette Bristol "Susan A. Husby, Notary Public Grand Traverse County, Michigan My commission expires: May 4, 1982.
"And notarized by:
/s/ Susan A. Husby /s/ November 21, 1980”
Plaintiff also testified that the defendant delivered the document to him in December, 1980. He testified that he believed his wife intended the transfer as a gift "out of her sincere heart” because she was getting remarried and would have a home of her own and would, therefore, not need his home. He admitted that he was surprised by the "gift” because he and his ex-wife were not exactly friends.
Plaintiff also admitted that at the time of the parties’ divorce in 1978, he received custody of the children, but that both parties agreed that when defendant had established a place of her own, custody would transfer to her. He stated that between 1978 and 1981 defendant often asked him for custody of the children. She made several requests, all of which were denied. He denied her requests because he thought that the children were better off with him. He also denied that he ever agreed to exchange her interest in the home for custody of the children. However, he relin quished custody at his children’s request shortly after the November 21, 1980, conveyance.
Defendant’s sister, Susan A. Husby, testified that she notarized the document purporting to transfer to plaintiff defendant’s interest in the marital home. However, Mrs. Husby indicated that she waited two weeks to notarize the document in an effort to dissuade her sister from completing the transfer. When her sister persisted, Mrs. Husby relented and notarized the document.
Defendant testified that once she obtained a place of her own and asked her husband for custody pursuant to their agreement, he refused. She testified that she offered her husband her interest in the home in exchange for custody. She described that interest as the last thing with which she had to bargain in exchange for custody of the children. According to defendant, she prepared the written statement noted above on her own and delivered it to her husband. When she gave it to him, she told him, "You have everything now, why don’t you give me the children?” She stated that she intended to give her husband her interest in the home not as a gift, but in exchange for custody of the children.
Defendant also testified that neither she nor her husband believed that the instrument she drafted was legal. Hence, they agreed to have legal papers drafted which would transfer the interest in the home and the custody of the children.
After hearing the parties’ testimony, the trial judge found that the document presented by defendant to plaintiff was a quitclaim deed and that it was intended as a gift. Hence, the judge ruled that all of defendant’s right, title, and interest in the marital property had effectively passed to plaintiff.
On appeal, defendant claims that the trial court’s finding that defendant had made plaintiff a valid gift of her interest in the marital property was clearly erroneous.
"Actions to quiet title are equitable in nature and are reviewed de novo by this Court. Caywood v Dep’t of Natural Resources, 71 Mich App 322, 332; 248 NW2d 253 (1976). Review is governed by GCR 1963, 517.1 and the trial court’s findings of fact will not be overturned or modified unless they are clearly erroneous or the reviewing court is convinced it would have had to reach a different result had it occupied the bench at trial. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court is left with the definite and firm conviction that a mistake has been made. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976). Due regard is given to the opportunity of the trial judge to assess the credibility of the witnesses who appeared before him. Pohl v Gilbert, 89 Mich App 176, 179; 280 NW2d 831 (1979).” Dunlop v Twin Beach Park Ass’n, Inc, 111 Mich App 261, 266; 314 NW2d 578 (1981).
In an action to quiet title, the plaintiff has the burden of proof and must make out a prima facie case. Boekeloo v Kuschinski, 117 Mich App 619, 628-629; 324 NW2d 104 (1982). Once plaintiff makes out a prima facie case, the defendant has the burden of proving that he or she has superior title. 117 Mich App 629. Here, plaintiff argued that he had superior title because defendant had made him a gift of her interest in the property. In order to constitute a valid gift (1) the donor must intend to pass title to the donee, (2) there must be actual or constructive delivery, and (3) the donee must accept the gift. Osius v Dingell, 375 Mich 605, 611; 134 NW2d 657 (1965); Jones v Causey, 45 Mich App 271; 206 NW2d 534 (1973), lv den 389 Mich 817 (1973). The delivery of the gift must be unconditional. Osius, supra, p 611.
Here the facts are clear that the delivery was conditioned on the change of custody. The evidence clearly shows duress in the execution of the. quitclaim deed. This record has established that the trial judge’s finding on the issue of whether a valid gift was made was clearly erroneous. Therefore, the judgment below is reversed.
We also find that plaintiff’s exhibit 4, supra, purporting to transfer defendant’s interest in the marital home to plaintiff was the result of a "child-bartering agreement”; such an agreement is contrary to public policy and is hereby set aside.
The findings of the trial court are reversed; the court will enter an order restoring to defendant her one-half interest in the marital home as established in the parties’ settlement agreement in the September 11, 1978, judgment of divorce.
Reversed and remanded for further proceedings consistent with this opinion. Costs to defendant. | [
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Per Curiam.
On December 19, 1981, defendant, unable to halt his car at a stop sign in Kalamazoo Township due to icy road conditions, struck another car passing through the intersection. He was subsequently ticketed and prosecuted for violating Kalamazoo Township Ordinance Cl, R 28.1436, § 5.36 (virtually identical to MCL 257.649, subds [6], [8]; MSA 9.2349, subds [6], [8]):
"(1) Except when directed to proceed by a police officer, the driver of a vehicle that is approaching a stop intersection indicated by a stop sign shall stop before entering the crosswalk on the near side of the intersection or, if there is no crosswalk, shall stop at a clearly marked stop line or, if none, shall stop at the point nearest the intersecting roadway where the driver has a view of approaching traffic on the intersecting roadway. After having stopped, the driver shall yield the right-of-way to any vehicle which has entered the intersection from another highway or which is approaching so closely on the highway as to constitute an immediate hazard during the time when the driver would be moving across or within the intersection._
"(2) A person who violates this section is responsible for a civil infraction.”
Defendant’s civil infraction case was dismissed by the district court after that court held that defendant had attempted to stop his car and therefore had not violated the traffic ordinance. The circuit court affirmed this judgment on August 6, 1982. The people now appeal by leave granted, arguing that guilty intent is not an element of the civil infraction.
We agree. Courts in this country have almost universally held that traffic violations are strict liability offenses, in which the motorist’s negligence or lack of intent to commit the infraction is irrelevant. E.g., City of Akron v Allen, 69 Ohio Misc 4; 23 Ohio Ops 3d 73; 429 NE2d 1195 (1981); People v Forbath, 5 Cal App 2d Supp 767; 42 P2d 108 (1935); Commonwealth v Ober, 286 Mass 25; 189 NE 601 (1934); Goodwin v State, 63 Tex Cr App 140; 138 SW 399 (1911); 61A CJS, Motor Vehicles, § 591, p 265. Two reasons underlie this conclusion:
"The purpose of the statute is to prevent the recurrence of the nuisance, not to punish, although punishment must be prescribed in order to make the statute effective. Then it is neither essential nor logical to consider the intent of the maker of the nuisance.” People v High Ground Dairy Co, 166 App Div 81, 82; 151 NYS 710, 711 (1915).
"The accused, if he does not will the violation, usually is in a position to prevent it with no more care than society might reasonably expect and no more exertion than it might reasonably exact from one who assumed his responsibilities. Also, penalties commonly are relatively small, and conviction does no grave damage to an offender’s reputation. Under such considerations, courts have turned to construing statutes and regulations which make no mention of intent as dispensing with it and holding that the guilty act alone makes out the crime.” Morissette v United States, 342 US 246, 256; 72 S Ct 240, 246; 96 L Ed 288, 297 (1952).
See, also, 1 Wharton Criminal Law (14th ed), § 23, p 102.
In this case, driving through a stop sign is a strict liability offense. See People v Thompson, 259 Mich 109, 120; 242 NW 857 (1932); People v McIntosh, 23 Mich App 412; 178 NW2d 809 (1970). For this reason, defendant’s inability to stop at the stop sign was irrelevant. The facts here do not present a situation in which there was no actus reus (e.g., a vehicle behind the motorist’s car failed to stop and pushed him past the stop sign into the intersection) or in which the motorist failed to stop due to a mechanical failure previously unknown to him. Instead, defendant was aware of the icy road conditions at least five minutes before the accident and so could have prevented the violation by applying his brakes earlier.
Reversed and remanded to the district court for entry of a judgment consistent with this opinion.
Compare State v Kremer, 262 Minn 190; 114 NW2d 88 (1962), where the court reversed a finding of liability where the defendant ran a red light after his brakes failed him for the first time, with City of Kettering v Greene, 9 Ohio St 2d 26; 222 NE2d 638 (1966), where the court found liability where the defendant bus driver ran a stop sign after the brakes on his bus failed, although the driver’s duties did not include maintenance. | [
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E. A. Quinnell, J.
In this action, the 77 plaintiffs raise claims against defendant for breach of contract, violation of a provision of the Retail Installment Sales Act, MCL 445.865; MSA 19.416(115), and violation of the requirements of the Michigan Consumer Protection Act, MCL 445.901 et seq.; MSA 19.418(1) et seq. According to plaintiffs’ complaint, each plaintiff entered into an installment contract with 21st Century Health Spa, Inc., for health spa services. 21st Century went bankrupt and ceased operation after assigning the contracts to defendant Nelson Credit Centers, Inc., which attempted to delegate performance of the contracts to American Health Fitness Centers. Plaintiffs sought a declaratory judgment as to the parties’ rights and obligations under the contracts, an accounting, and actual damages or the penalty specified in MCL 445.911(2); MSA 19.418(H)(2), whichever was greater. The circuit court held that it lacked subject matter jurisdiction ánd granted accelerated judgment for defendant pursuant to GCR 1963, 116.1(2). Plaintiffs appeal as of right.
The subject matter jurisdiction of a circuit court in civil cases is governed by MCL 600.605; MSA 27A.605, which provides:
"Circuit courts have original jurisdiction to hear and determine all civil claims and remedies, except where exclusive jurisdiction is given in the constitution or by statute to some other court or where the circuit courts are denied jurisdiction by the constitution or statutes of this state.”
One exception to the subject matter jurisdiction of a circuit court is created by MCL 600.8301(1); MSA 27A.8301(1), which provides:
"The district court shall have exclusive jurisdiction in civil actions when the amount in controversy does not exceed $10,000.00.”
However, MCL 600.8315; MSA 27A.8315 provides:
"The district court shall not have jurisdiction in actions for injunctions, divorce or actions which are historically equitable in nature, except as otherwise provided by law.”
We first note that plaintiffs’ prayer for a declaratory judgment was not of itself sufficient to place the action within the circuit court’s subject matter jurisdiction. See GCR 1963, 521.1, which provides:
"In a case of actual controversy within its jurisdiction, any circuit court of this state may declare the rights and other legal relations of any interested party seeking a declaratory judgment, whether or not other relief is or could be sought or granted.” (Emphasis added.)
A circuit court has no jurisdiction to issue a declaratory judgment unless it has jurisdiction over the underlying controversy. See Fornell v Fornell Equipment, Inc, 39 Mich App 709, 723; 198 NW2d 694 (1972), rev’d on other grounds 390 Mich 540; 213 NW2d 172 (1973). The Supreme Court specifically approved the reasoning of the Court of Appeals on the jurisdictional issue. 390 Mich 549. Compare Grunow v Sanders, 84 Mich App 578; 269 NW2d 683 (1978) (Court of Claims has jurisdiction to render declaratory judgment in a case otherwise within its subject matter jurisdiction).
An action for an accounting is equitable in nature, but whether a plaintiff has stated a cause of action for an accounting must be determined from the facts pled in the plaintiffs complaint rather than from the prayer for relief. Marshall v Ullmann, 335 Mich 66, 71; 55 NW2d 731 (1952). In Laubengayer v Rohde, 167 Mich 605, 611; 133 NW 535 (1911), the Court explained:
"To sustain a bill for an accounting there must be mutual demands, a series of transactions on one side, and payments on the other. Where all the items are on one side, there can be no accounting. The bill shows no items of which the complainant is not fully informed, and the only items involved are the money complainant paid for the land and money expended by him in its improvement.”
An accounting may not be had where the action is for a specific sum due under a contract. Brown v Brodsky, 348 Mich 16, 22; 81 NW2d 363 (1957); Basinger v Provident Life & Accident Ins Co, 67 Mich App 1, 8; 239 NW2d 735 (1976). An accounting is unnecessary where discovery is sufficient to determine the amounts at issue. Cyril J Burke, Inc v Eddy & Co, Inc, 332 Mich 300, 303; 51 NW2d 238 (1952). Here, plaintiffs’ complaint contains no allegation of a series of mutual demands. Plaintiffs’ claims are for the refund of specific sums paid under their contracts, or alternatively, for the penalty specified in MCL 445.911(2); MSA 19.418(H)(2). The allegations in plaintiffs’ complaint do not support an inference that the transactions at issue are so complex that ordinary discovery procedures would be inadequate. In this connection, we note that nearly all of the plaintiffs submitted affidavits in support of a motion for summary judgment and that nearly all of the affidavits specified the exact amount at issue. Plaintiffs’ reliance on MCL 445.860; MSA 19.416(110) is misplaced; that section requires a holder of a retail installment contract to forward to the buyer upon written request a written statement of the dates and amounts of payments and the total amount unpaid under the contract. The section does not purport to give buyers the right to bring an equitable action for an accounting and shows, if anything, that the plaintiffs had an adequate remedy without such an action. Plaintiffs’ prayer for an accounting was insufficient to confer subject matter jurisdiction on the circuit court because plaintiffs failed to state a cause of action for an accounting.
No individual plaintiff made a claim for more than $10,000, but it is not disputed that all of the claims, if aggregated, would exceed that amount. In class actions, some Michigan courts have permitted the claims of individual members of the class to be aggregated to establish the jurisdictional minimum for circuit court. Paley v Coca Cola Co, 39 Mich App 379; 197 NW2d 478 (1972), aff'd on other grounds by equally divided court 389 Mich 583; 209 NW2d 232 (1973); Grettenberger Pharmacy, Inc v Blue Cross-Blue Shield of Michigan, 98 Mich App 1, 10-11; 296 NW2d 589 (1980). However, this case is not a class action. Whether, in an action which is not a class action, the separate claims of individual plaintiffs may be aggregated to establish the jurisdictional minimum is a question of first impression in Michigan. However, such aggregation is not permitted to estab lish the jurisdictional minimum for federal question jurisdiction in federal district court. Clark v Paul Gray, Inc, 306 US 583, 589; 59 S Ct 744; 83 L Ed 1001 (1939). Clark is in accord with the general rule in other jurisdictions; see 20 Am Jur 2d, Courts, § 168, pp 508-509. Plaintiffs’ reliance on Crippen v Fletcher, 56 Mich 386; 23 NW 56 (1885), and Henderson v Detroit & M R Co, 131 Mich 438; 91 NW 630 (1902), is misplaced; in those cases the Court merely permitted aggregation of various claims of a single plaintiff, a result in accord with the majority rule in other jurisdictions. See 20 Am Jur 2d, Courts, § 167, pp 507-508. We find Clark and similar decisions persuasive and elect to follow them.
The circuit court correctly ruled that it lacked subject matter jurisdiction. However, under the circumstances presented, the circuit court had discretion to remove the action to the appropriate district court rather than dismiss it. GCR 1963, 707.1; MCL 600.641; MSA 27A.641. In lieu of affirming the circuit court’s decision, we exercise our power pursuant to GCR 1963, 820.1(7) to grant such relief as the case may require and order the case removed to the appropriate district court. Because the record does not disclose which district court is appropriate, we remand the case to circuit court for resolution of that question.
Remanded for further proceedings consistent with this opinion. We retain no jurisdiction. | [
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Per Curiam.
Following a bench trial on June 22-23, 1982, in Detroit Recorder’s Court, defendant was convicted of knowing or intentional possession of heroin, MCL 333.7403; MSA 14.15(7403), and on July 19, 1982, was sentenced to a term of from one to four years incarceration. Defendant was arrested during a raid of a residence at 421 Harper in the City of Detroit. The raid, which occurred on October 16, 1981, was conducted pursuant to a search warrant issued on October 13, 1981. On appeal, defendant challenges the sufficiency of the affidavit upon which the warrant was based.
For purposes of this appeal, we assume, without deciding, that defendant has standing to contest the validity of a search of a third party’s premises. We also decline to accept the prosecutor’s invitation to hold this issue waived by virtue of defendant’s failure to raise it in the lower court. Our review of the affidavit reveals that the warrant was properly issued and thus we affirm defendant’s conviction and sentence.
Defendant launches a broad-based attack on the affidavit alleging, inter alia, that it failed to establish the credibility and reliability of the police informant, that individuals named in the affidavit were not identified at trial and that statements included in the affidavit were made in reckless disregard for the truth. Defendant’s claims are without merit. Although there appears to be some conflict between panels of this Court over the proper standard of review of a magistrate’s determination of probable cause, under either the abuse of discretion standard, People v Johnnie Reed, 121 Mich App 286; 329 NW2d 23 (1982), or the substantial basis standard, People v Gleason, 122 Mich App 482; 333 NW2d 85 (1983), we find the affidavit sufficient to establish probable cause.
The two-pronged test, established in 1964 in Aguilar v Texas, 378 US 108; 84 S Ct 1509; 12 L Ed 2d 723 (1964), and followed by the Michigan Supreme Court since that date, was met in this case. The affidavit contained statements which illustrated that the informant had previously given information leading to the confiscation of heroin and had engaged in a controlled drug purchase and that the information was further corroborated and supported by police surveillance and observations of drug trafficking in the area. We are mindful of the recent Supreme Court decision of Illinois v Gates, — US —; 103 S Ct 2317; 76 L Ed 2d 527 (1983), which abandoned the two-pronged Aguilar test in favor of a totality of the circumstances test. Since a state may impose higher Fourth Amendment standards under a state constitution than are imposed under the United States Constitution, we feel constrained to follow Aguilar until our Supreme Court rules differently. However, because Aguilar commands a higher standard than Gates for sufficiency of an affidavit for the issuance of a warrant, defendant is in no way prejudiced by our decision in this regard.
Defendant’s claim that individuals named in the affidavit were not identified at trial is irrelevant to the determination of probable cause for issuance of the warrant. Similarly, defendant’s argument concerning the testimony of the police officer affiant is immaterial to the issue of probable cause and, contrary to defendant’s assertion that it evidences a reckless disregard for the truth, that testimony substantiates police efforts to corroborate the information given by the informant concerning the source of the heroin supply. The affidavit and the information contained therein supports the magistrate’s determination of probable cause.
Defendant’s conviction and sentence is affirmed. | [
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After Remand
Before: M. J. Kelly, P.J., and Cynar and J. C. Kingsley, JJ.
Per Curiam.
Plaintiffs appeal as of right from an order of summary judgment dismissing the last remaining count of what was once a six-count complaint. Summary judgment was granted pursuant to GCR 1963, 117.2(3). We affirm.
Plaintiff class is composed of current and former employees of the now defunct Michigan Chemical Company, Velsicol Chemical Corporation and Northwest Industries, Inc. In the 1970’s, Michigan Chemical, Velsicol, and Northwest all manufactured and distributed from St. Louis, Michigan, the chemical polybrominated biphenyl, the infamous PBB. In this action, plaintiffs allege that they were injured as the result of continuous occupational exposure to that toxic and poisonous chemical, "harmful to humans when inhaled or ingested”. Plaintiffs further allege that their injuries are in part attributable to defendants’ wilful and intentional failure or refusal to take state action under MCL 408.1031; MSA 17.50(31). That statute provides in relevant part:
"When and as soon as a department representative determines that an imminent danger exists in a place of employment, the department representative shall inform the employer and the affected employees of a determination of the imminent danger. The department representative immediately shall recommend to the appropriate department director that an order be issued to require that steps be taken as may be necessary to avoid, correct, or remove the imminent danger.
"The order shall prohibit the employment or presence of an individual in locations or under conditions where imminent danger exists, except individuals whose presence is necessary to avoid, correct, or remove the imminent danger in a safe and orderly manner.”
This case comes to us with an appellate history. See Shunk v Michigan, 97 Mich App 626; 296 NW2d 129 (1980); Shunk v Northwest Industries (Docket No. 54726, decided December 8, 1981 [unreported]), lv den 414 Mich 921 (1982). In the 1980 opinion, a panel of this Court held that the trial court had erred in dismissing all of plaintiffs’ counts on grounds of governmental immunity. Without elaboration, this Court held that plaintiffs had alleged both intentional torts and negligence against the defendants and that because intentional torts were not within the exercise or discharge of a governmental function, those counts alleging intentional torts were to be reinstated. 97 Mich App 628 (but, see the dissenting opinion of R. B. Burns, J).
Since the release of that 1980 decision, this Court has had several occasions on which to consider and interpret the intentional tort exception to the doctrine of governmental immunity. After consideration of those cases and the briefs and arguments submitted here, we are now persuaded that plaintiffs have failed, after a more than adequate period of discovery, to come forward with any evidence showing that there is a genuine issue of material fact as to their intentional tort claims.
None of the parties in this case dispute that defendants, in enforcing the Michigan Occupational Safety and Health Act, are involved in a governmental function within the meaning of that term under the governmental immunity statute, MCL 691.1407; MSA 3.996(107). We agree that the particular activity engaged in by the defendants here, the prevention and regulation of imminently dangerous conditions at Michigan workplaces, constitutes a governmental function under any of the three tests currently advanced by various justices of the Supreme Court. See Ross v Consumers Power Co, 415 Mich 1; 327 NW2d 293 (1982), for a synopsis of these tests. Since plaintiffs are pursuing a tort claim against a governmental entity engaged in a governmental function, it is the burden of plaintiffs to plead and develop facts in avoidance of the defense of immunity. Graves v Wayne County, 124 Mich App 36, 40; 333 NW2d 740 (1983).
Plaintiffs’ sole claim is that defendants acted intentionally and wilfully in refusing to take action under MCL 408.1031; MSA 17.50(31). However, as this Court has recently explained, negligence does not become an intentional tort merely because the government acted wilfully or intentionally in doing or failing to do a particular act, since such a rule would virtually eliminate the doctrine of governmental immunity. Elliott v Dep’t of Social Services, 124 Mich App 124, 128-129; 333 NW2d 603 (1983). Instead, the government’s tortious activity must fall outside the exercise or discharge of a governmental function. Elliott v Dep’t of Social Services, supra, p 129; Smith v Michigan, 122 Mich App 340, 345; 333 NW2d 50 (1983). Generally, the intentional tort exception to the governmental immunity doctrine has been limited to traditional intentional torts, Randall v Delta Charter Twp, 121 Mich App 26, 34; 328 NW2d 562 (1982), and acts of omission rather than commission are not generally characterized as intentional torts. Elliott v Dep’t of Social Services, supra, p 130, citing Randall v Delta Charter Twp, supra, p 34.
Since we are reviewing a motion for summary judgment based on the absence of any genuine issue of material fact, we must determine whether there is any factual support in the record for plaintiffs’ claim of an intentional tort. Maki v Copper Range Co, 121 Mich App 518, 522; 328 NW2d 430 (1982), lv den 417 Mich 1030 (1983). We find none.
Nearly four years after the filing of the initial complaint, the only "facts” or "evidence” developed by the plaintiffs in support of their claim are those that may be gleaned from plaintiffs’ response to defendants’ first and only set of interrogatories. However, plaintiffs’ response is essentially a restatement of the vague and general allegations originally set forth against the state in the complaint. For example, plaintiffs respond that defendants knew of the dangers of PBB at the plant site because of "numerous complaints to the State of Michigan and agencies of the state”. No dates or names regarding these complaints are supplied. Similarly, plaintiffs respond that the level of PBB at the plant site was "hazardous” but fail to provide or refer to any quantitative measures, dates, test results, etc., in support. The only other evidence in the record involving the state’s involvement with PBB complaints at the Michigan Chemical plant are affidavits filed by the defendants in support of their motion for summary judgment which we now review. Those affidavits reveal that defendants first became aware of possible dangers of PBB inhalation at the plant site in 1974. Investigations were conducted and the state concluded that there was no reason to believe that the levels of PBB discovered at the site were dangerous or toxic when inhaled through the mandatory respirator worn by employees. The state further inquired about the health of the Michigan Chemical Company employees, reviewed the company’s illness and injury log and examined two employees who worked in the PBB contaminated areas. No serious health problems were uncovered. Plaintiffs have failed to present any facts contradicting defendants’ affidavits and corresponding reports and documents.
Given plaintiffs’ failure to present any factual evidence in support of their claim that defendants had committed an intentional tort, the trial court did not err in granting summary judgment under GCR 1963, 117.2(3).
We note that our decision does not leave employees without a remedy where there exists an imminently dangerous condition at the workplace. MCL 408.1031(4); MSA 17.50(31X4) allows the employee to bring an action for a writ of mandamus in circuit court against the state, compelling the state to seek abatement of the dangerous condition. We do not, however, believe that MCL 408.1031(4); MSA 17.50(31)(4) creates a cause of action otherwise barred under the doctrine of governmental immunity.
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Per Curiam.
In 1980, plaintiff Oak Park Education Association and defendant Oak Park School District negotiated a three-year labor contract governing the years 1980 through 1983. The collective-bargaining agreement contained a new salary provision, Article 14.19:
"14.19. A teacher who is laid off under provisions other than 14.18 above and who is paid unemployment compensation benefits (associated with his or her regular teaching assignment) during the summer immediately following the layoff and who is subsequently recalled to the teaching position at the beginning of the next school year will be paid according to an annual salary rate, such that his/her unemployment compensation plus that annual salary rate will be equal to the rate of salary he/she would have earned for the school year had he/she not been laid off, subject to the following conditions:
"(a) The total of unemployment compensation plus salary earned by employment in the district shall not be below that which the employee would have received had he or she been employed the entire school year.
"(b) The salary earned through employment in the district shall not be less than his or her salary from same for a similar period during the preceding school year.”
This provision was evidently added in response to the addition to the Michigan Employment Security Act (MESA) on January 1, 1978, of § 27(i) which permitted teachers to collect unemployment benefits during the summer months between two academic years when the teachers had no "reason able assurance” of employment for the latter of the two academic years.
Because school districts are often unsure of their finances for the upcoming academic year due to fluctuating pupil enrollment and uncertain state and local funding, they often lay off more teachers in April than will remain laid off in September. Layoff notices are distributed in April, apparently to accommodate the notice and hearing provisions of the teacher tenure act, MCL 38.71 et seq.; MSA 15.1971 et seq., and the parties’ collective-bargaining agreement.
The individually named plaintiffs in the instant case are teachers who were employed by defendants during the 1980-1981 and/or 1981-1982 school years. Each teacher was advised in writing prior to the end of that school year that he or she was being laid off. During the summer months, plaintiff teachers collected unemployment benefits through the Michigan Employment Security Commission (MESC).
During the summer, or within two weeks after school began the following fall, the teacher plaintiffs were recalled to work by defendants. Each returned at the salary level appropriate to his or her experience and education as established by the parties’ contract. Subsequently, each individual plaintiff was notified by defendants that there would be deducted from the annual salary prescribed for each plaintiff an amount equivalent to that which each had received the past summer in unemployment benefits from the MESC. By its letter of April 30, 1982, the MESC notified defendants that this planned practice violated the Michigan Employment Security Act.
Plaintiffs’ subsequent suits against defendants were consolidated in the trial court. Upon cross- motions for summary judgment, apparently pursuant to GCR 1963, 117.2(1), the trial court entered its judgment in favor of defendants, concluding that the language of MCL 421.31; MSA 17.533 was subservient to the agreement entered into by plaintiffs and defendants, an agreement which was under the auspices of the public employment relations act (PERA), MCL 423.201 et seq.; MSA 17.455(1) et seq.
On appeal, plaintiffs argue that Article 14.19 of the parties’ contract requires teachers to waive unemployment benefits contrary to law. MCL 421.30; MSA 17.532 provides that unemployment compensation benefits are absolutely inalienable by "any assignment * * * or otherwise”. MCL 421.31; MSA 17.533 provides that "no agreement by an individual to waive, release, or commute his rights to benefits or any other rights under this act from an employer shall be valid”. Since the parties’ contract provides in Article 26.1 that all contractual provisions therein are to be "subject in all respects to the laws of the State of Michigan”, plaintiffs contend that Article 14.19 must be excised from the contract.
Defendants, on the other hand, contend that Article 14.19 was a salary provision negotiated under the auspices of PERA, MCL 423.215; MSA 17.455(15). In cases of possible statutory conflict, argue defendants, PERA is controlling where, as here, the subject of bargaining is not illegal. The provisions of MESA and PERA, argue defendants, should be construed reasonably and compatibly.
PERA requires the parties to those contracts within its purview to bargain collectively "with respect to wages, hours, and other terms and conditions of employment”. MCL 423.215; MSA 17.455(15). The Michigan Supreme Court has "con sistently construed the PERA as the dominant law regulating public employee labor relations”. Detroit Bd of Ed v Parks, 417 Mich 268, 280; 335 NW2d 641 (1983), quoting Rockwell v Crestwood School Dist Bd of Ed, 393 Mich 616, 629; 227 NW2d 736 (1975), app dis sub nom Crestwood Ed Ass’n v Bd of Ed, 427 US 901 (1976). When there is conflict between PERA and another statute, "PERA prevails, diminishing the conflicting statute pro tanto”. Detroit Bd of Ed v Parks, supra, p 280; Local 1383, International Ass’n of Fire Fighters, AFL-CIO v City of Warren, 411 Mich 642; 311 NW2d 702 (1981). As the Court said in City of Warren, supra, p 655, it has "consistently held that PERA prevails over conflicting legislation, charters, and ordinances in the face of contentions by cities, counties, public universities, and school districts that other laws or the constitution carve out exceptions to PERA”.
As noted, wages are a mandatory subject of collective bargaining under PERA.
Article 14.19 of the contract in the instant case clearly concerns wages and was the subject of collective bargaining between the parties. Although plaintiffs interpret this provision as a waiver of unemployment compensation benefits and illegal even under PERA, we agree with defendants’ interpretation of the provision: that it is one governing total salary rather than one requiring a waiver of benefits. If anything, Article 14.19 provides for a partial waiver of salary rather than a waiver of unemployment compensation. Nothing in the provision requires teachers to waive, or in any way restrict, their rights under the MESA. Plaintiff teachers were allowed under the law and under the terms of this contract to collect unemployment benefits when they were laid off. Once they had been recalled for the upcoming academic year, however, their salary could be properly adjusted so that their total compensation for the academic year remained that set by contract according to seniority and education, whether they had collected unemployment benefits or not. This plan ensures that teachers with more seniority who are not laid off are not ultimately paid less than those teachers who teach all year after being provisionally laid off during the summer months, a time when teachers are not actively employed in their academic jobs under normal conditions. We see neither illegality nor injustice in this result.
Teachers are allowed to collect unemployment compensation where they have no reasonable assurance of returning to work. MCL 421.27(i); MSA 17.529(i). This statute is designed to provide economic protection for those teachers who will not be recalled at the start of the school year. Article 14.19 provides that each recalled teacher is assured of earning his or her full annual salary; those teachers who are not recalled, i.e., are truly unemployed, collect the full amount of unemployment compensation to which they are entitled.
Laid-off teachers must be aware that they may be recalled in the fall. Early and tentative layoff notices are, in fact, generally required by contract, as is true in the instant case. In this sense, those in the teaching profession enjoy a unique status among employees who are allowed to collect unemployment compensation. "Unemployment” in this case is often ultimately a fiction, a status prescribed to ensure teachers maximum economic protection in the face of future uncertain school district financing. By contract the parties agreed that to permit those teachers who have been allowed to collect benefits as a protective measure to earn substantially more than those teachers who avoid layoff would be unfair. The laid-off and recalled teachers have not actually missed any work, nor has their total annual salary been reduced from that which they would have earned had they not received a layoff notice. In order to avoid inequity, then, and to prevent what amounts to essentially double payment by defendants (since unemployment compensation is substantially paid by employers with the state acting as agent), we see nothing wrong or illegal in permitting the parties to adjust, by mutual agreement, total salaries, taking into account all compensation received by plaintiffs directly or indirectly from defendants during the year. Article 14.19 merely establishes a formula whereby the salary for the nine-month school year may be adjusted to reflect the actual employment status of plaintiff teachers.
Since we do not interpret Article 14.19 as requiring a waiver of unemployment compensation, we do not find that the provision violates MCL 421.30; MSA 17.532 or MCL 421.31; MSA 17.533. We do find the provision to be one concerning wages and, therefore, a mandatory subject of collective bargaining between the parties. This provision was, therefore, properly included in the parties’ contract pursuant to PERA. If the parties prefer another result they are free to delete Article 14.19 of the contract in future negotiations.
Affirmed.
No costs, a public question being involved. | [
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Per Curiam.
Plaintiff appeals from an order of the Wayne Circuit Court granting summary disposition, under MCR 2.116(C)(4) (lack of subject-matter jurisdiction), in favor of defendants City of Livonia, Ronald Mardiros, and Harold Tatigian. The judgment was certified as a final order pursuant to MCR 2.604. We affirm.
This dispute concerns three contiguous parcels of land located in the City of Livonia, which we shall refer to as parcels a, b, and c. All three parcels were originally acquired by Alex and Mary Bellovary, who had purchased parcel a on land contract in 1972 and had received the deed to that parcel in 1979, and acquired title to parcels b and c in 1975.
On March 17, 1978, the Bellovarys executed a first mortgage on all three parcels in favor of B. F. Goodrich Company. B. F. Goodrich recorded its mortgage interest in parcel a, but failed to effectively record its interests in parcels b and c. Subsequently, on January 29, 1980, the Bellovarys executed mortgages on parcels A, b, and c in favor of defendant Armstrong Rubber Company, Inc. Armstrong recorded all three mortgages.
In the tax year 1973, defendant City of Livonia combined parcels A and b for assessment purposes and began treating the two parcels as one taxable unit.
In 1982, B. F. Goodrich foreclosed on the mortgage over parcel A and was granted a judicial deed to the property on March 25, 1982. In 1983, defendant Armstrong Rubber commenced foreclosure proceedings on its mortgages and was granted judicial deeds to parcels b and c on May 13, 1983. In the meantime, however, from 1982 to 1985, defendant City of Livonia continued to assess and collect property taxes on parcels a and b from B. F. Goodrich despite the separate ownership of the two parcels.
On June 25, 1985, plaintiff purchased parcel a from B. F. Goodrich on a land contract basis. The terms of the contract obligated plaintiff to pay all taxes and assessments levied against the property. In November, 1985, plaintiff and B. F. Goodrich requested that the Wayne County Treasurer’s office divide the property for tax purposes and were told that proper papers had been submitted to defendant city for a partition of the properties and separate tax assessments on each parcel. Some time in late 1985 or 1986, at a meeting of the interested parties called by the ordinance enforce ment officer of Livonia’s planning department, defendant Tatigian, the Livonia City Attorney, stated that the city would not partition the property, grant a variance to defendant Armstrong Rubber for parcel b, or grant plaintiff a building permit for parcel A. Under protest, plaintiff paid the taxes as assessed by defendant city to avoid defaulting on the land contract or losing the land for delinquent taxes. In May, 1987, plaintiff demanded that defendant Mardiros, the tax assessor for defendant city, partition the property and separate the appraisals for parcels a and b. Defendant Mardiros refused, stating that it was not defendant city’s policy to separate combined parcels.
On June 15, 1987, B. F. Goodrich’s successor in interest, Uniroyal Goodrich Tire Company, assigned plaintiff its cause of action to recover the portion of the taxes it had erroneously paid on parcel b from 1982 to 1985.
On August 17, 1987, plaintiff filed the instant action in Wayne Circuit Court naming the City of Livonia, city assessor Mardiros, city attorney Tatigian, and Armstrong Rubber Company as defendants. Plaintiff alleged that defendant city’s refusal to partition the property assessment was arbitrary and capricious, without due process of law, and a violation of MCL 211.53; MSA 7.97. Furthermore, plaintiff alleged a violation of her Fourteenth Amendment right to due process of law resulting in irreparable damage from the interference with her use and enjoyment of the property caused by defendant city’s refusal to partition the assessment. Plaintiff further sought damages for alleged breach by the city assessor and the city attorney of their statutory duty to divide the parcels for assessment. Last, plaintiff alleged claims of unjust enrichment and assumpsit for taxes erroneously paid under MCL 211.381; MSA 7.771, against defendant Armstrong Rubber. Plaintiff sought damages, a permanent injunction against joint assessment of parcels A and b, and separate assessments for parcels A and b.
Plaintiff appeals from the grant of summary disposition in favor of defendants City of Livonia, Mardiros, and Tatigian on the grounds of lack of subject-matter jurisdiction. Defendant Armstrong Rubber is not a party to this appeal.
The issue for our consideration is whether the trial court correctly concluded that it lacked subject-matter jurisdiction over plaintiff’s complaint because plaintiff’s claims fell within the scope of the exclusive jurisdiction of the Tax Tribunal set forth in MCL 205.731; MSA 7.650(31). For the reasons discussed below, we hold that the trial court correctly concluded that it lacked jurisdiction over the subject matter.
The jurisdiction of the Tax Tribunal is set forth in MCL 205.731; MSA 7.650(31), which provides as follows:
The tribunal’s exclusive and original jurisdiction shall be:
(a) A proceeding for direct review of a final decision, finding, ruling, determination, or order of an agency relating to assessment, valuation, rates, special assessments, allocation, or equalization, under property tax laws.
(b) A proceeding for refund or redetermination of a tax under the property tax laws.
Although the jurisdiction and powers of the circuit court are broad, the circuit court clearly lacks jurisdiction when preempted by the laws of this state. Wikman v Novi, 413 Mich 617, 644-645; 322 NW2d 103 (1982). In taxation matters, the circuit court retains jurisdiction to consider certain constitutional issues concerning the validity of tax laws. Moreover, it may grant equitable relief to enforce decisions of the Tax Tribunal. Kostyu v Dep’t of Treasury, 170 Mich App 123, 128; 427 NW2d 566 (1988); Sessa v State Tax Comm, 134 Mich App 767, 771; 351 NW2d 863 (1984).
By contrast, the Tax Tribunal’s jurisdiction and powers are defined by the Tax Tribunal Act, MCL 205.701 et seq.; MSA 7.650(1) et seq. Although the Tax Tribunal lacks equitable powers, it has broad statutory powers and is authorized to grant such relief or issue such "writs, orders, or directives which it deems necessary or appropriate in the process of disposition of a matter of which it may acquire jurisdiction.” MCL 205.732(c); MSA 7.650(32)(c). The tribunal is a quasi-judicial agency, the primary function of which is to find facts and review agency decisions within its jurisdiction. It is designed to promptly, fairly, and efficiently provide expert resolution of such matters. Wikman, supra at 626, 629; Kostyu, supra at 128. The expertise of the tribunal relates primarily to questions concerning the "factual underpinnings” of taxes. The tribunal is well qualified to resolve disputes concerning those matters the Legislature has placed within its jurisdiction. Romulus City Treasurer v Wayne Co Drain Comm’r, 413 Mich 728, 737; 322 NW2d 152 (1982). Although the tribunal’s determinations involve conclusions of law, the matters within its jurisdiction under MCL 205.731; MSA 7.650(31) most clearly relate to the bases for taxes and questions concerning the lawfulness of those bases. Id. at 738.
The Tax Tribunal’s jurisdiction is based either on the subject matter of the proceeding (a direct review of a final agency decision relating to assessment, valuation, rates, special assessments, allocation, or equalization under the property laws) or the type of relief requested (a refund or redetermination of a tax under the property tax laws). Wikman, supra at 631.
In her complaint, plaintiff alleged three counts against defendant city and its assessor and attorney. Count i alleged that defendants’ refusal to partition parcels a and b for separate tax assessments, despite their actual knowledge of separate ownership of each parcel, was arbitrary and capricious, without due process of law, and contrary to MCL 211.53; MSA 7.97. Plaintiff alleged that she would suffer irreparable harm if the parcels were not partitioned, having already been forced to sell other property to pay the taxes on both parcels A and b, when she only owns parcel A.
Count ii alleges that plaintiff was deprived of the use and enjoyment of her property without due process of law in violation of the Fourteenth Amendment of the United States Constitution and Const 1963, art 1, § 17 by defendant’s arbitrary, capricious, baseless, intentional and malicious refusal pursuant to policy and custom of defendant city to partition parcels a and B and assess plaintiff only for taxes on the parcels she owns. Plaintiff contends that defendants’ actions have deprived her of her rights, privileges, and immunities granted by the federal and state constitutions and the laws of this state.
Count in sets forth allegations that defendants Tatigian and Mardiros, as city attorney and assessor, respectively, did or should have reasonably foreseen that plaintiff, as the owner of parcel A, would suffer damages unless parcels a and b were partitioned and separately assessed for taxation. Plaintiff contended that their refusal to partition the parcels was a breach of their statutory duty and was a proximate cause of her damages.
The above claims, in our opinion, fall squarely within the scope of the Tax Tribunal’s jurisdiction. The tribunal may decide claims framed in constitutional terms alleging that a tax assessment was arbitrary and capricious and without foundation. Wikman, supra at 647; Kostyu, supra at 128-129. A review of plaintiffs complaint shows that this is the essence of her claims against the city defendants. Plaintiff complains that their refusal to partition and separately assess parcels a and b, so that she would only be required to pay the taxes on the parcel she owned, was arbitrary, capricious, and without foundation. Furthermore, plaintiff alleges that defendants’ actions were contrary to MCL 211.53; MSA 7.97, which sets forth the process by which the owner of an undivided interest in property may pay the taxes upon only the portion owned.
In Kostyu, supra, this Court held that the core of the taxpayer’s complaint, which sought a declaratory judgment of purely legal rights, was an assertion that the method used by the Treasury Department to compute his income tax was not authorized by law and that the procedures used by both the department and the Tax Tribunal deprived him of his rights to due process. This Court held that the circuit court had correctly ruled that it lacked subject-matter jurisdiction because the plaintiffs claims involving the computation methods were clearly within the scope of the tribunal’s jurisdiction. This Court further held that the due process claim was without merit because he had had an opportunity for, but failed to seek, de novo review of the department’s actions before the Tax Tribunal. Id. at 129-130.
Similarly, in the present case, it is clear that any claim alleged by plaintiff that defendants failed to follow a statutory procedure for assessment falls within the scope of the tribunal’s juris diction as set forth in MCL 205.731; MSA 7.650(31) and should have been brought in that forum. The mere fact that plaintiff chose to frame her claims in terms of a deprivation of a constitutional right to due process of law does not alter this conclusion because the Tax Tribunal can provide plaintiff with the procedural due process she seeks. Simply put, this Court is not bound by plaintiffs choice of labels for her action because this would exalt form over substance. Kostyu, supra at 130.
In brief, plaintiff is not challenging the use of her taxes or the constitutional validity of the authorizing statute. Rather, plaintiff challenges the validity of the assessment she receives each year which includes an assessment of property she does not own. This we believe involves a factual determination of the accuracy of the assessment and the method of assessing plaintiffs property. As such, it comes within the jurisdiction of the Tax Tribunal. More simply put, while the circuit court has been recognized to have jurisdiction over purely constitutional claims affecting taxation, the mere fact that a particular issue might be framed in constitutional terms does not grant jurisdiction to the circuit court to the exclusion of the Tax Tribunal. If this were the case, virtually every matter submitted to the Tax Tribunal could find its way to circuit court since any inaccurate or improper assessment of a tax could be said to violate the taxpayer’s constitutional rights as a taking without due process. Rather, what must be recognized is that the Tax Tribunal has original and exclusive jurisdiction over those tax issues which involve the accuracy and methodology of the property tax assessment. Such issues are involved in the case at bar.
For the above reasons, we conclude that the trial court correctly ruled that it lacked jurisdiction over the subject matter.
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Per Curiam.
In this action, the circuit court entered a judgment in favor of defendant awarding $118,025 as just compensation for a piece of property condemned by plaintiff. Defendant originally filed an appeal, which was dismissed as untimely. Defendant then applied for leave to appeal to the Supreme Court, which, in lieu of granting leave, remanded the matter to this Court for consideration as on leave granted. 429 Mich 870 (1987). We reverse.
On October 31, 1980, in anticipation of filing this action to condemn property for an industrial park, plaintiff sent affected property owners offers to purchase their property. On November 10, 1980, the Reverend Carol Hayes accepted plaintiffs offer to purchase defendant’s real property and immovable fixtures. Plaintiff did not offer to purchase the movable fixtures or pay the detach-reattach costs.
Plaintiff filed an action in eminent domain against defendant on November 24, 1980. On December 30, 1980, Reverend Hayes attended a closing without her attorney and executed a deed to plaintiff for defendant’s real property in exchange for $60,500. In mid-February, 1981, defendant moved to set aside the settlement and the deed on the grounds of fraudulent inducement. At a March 27, 1981, hearing, the trial court denied the motion without comment. Defendant appealed this decision to this Court, which reversed and remanded. In the Matter of Acquisition of Land for the Central Industrial Park Project, 127 Mich App 255; 338 NW2d 204 (1983).
On remand, the trial court held an evidentiary hearing and concluded that plaintiff had made an incomplete, good-faith offer because it did not include an amount for the movable fixtures. The trial court set aside the settlement and ordered a new trial on the issue of compensation. Following a jury trial, defendant was awarded $95,000 as just compensation. Defendant moved to dismiss or for a new trial alleging lack of subject matter jurisdiction and juror bias. A new trial was granted based on the juror bias issue. Following a second trial, the jury returned a verdict in favor of defendant in the amount of $118,025.
Defendant now raises a number of issues, one of which is dispositive. Specifically, defendant argues that the trial court lacked subject matter jurisdiction because plaintiff failed to make a good-faith offer prior to filing its complaint. We agree.
MCL 213.55(1); MSA 8.265(5X1) provides in pertinent part as follows:
[BJefore initiating negotiations for the purchase of property, the agency shall establish an amount which it believes to be just compensation for the property and promptly shall submit to the owner a good faith offer to acquire the property for the full amount so established. The amount shall not be less than the agency’s appraisal of just compensation for the property. ... If an agency is unable to agree with the owner for the purchase of the property, after making a good faith written offer to purchase the property, the agency may ñle a complaint for the acquisition of the property in the circuit court in the county in which the property is located. [Emphasis added.]
Whether a tendering of a good-faith offer is a necessary condition precedent to invoke the subject matter jurisdiction of the circuit court is not entirely clear from the case law and a careful review of prior Supreme Court decisions is necessary to resolve this issue. The Supreme Court in In re Petition of Rogers, 243 Mich 517, 521-522; 220 NW 808 (1928), held, in the context of a highway condemnation case, that the bona fide offer to purchase requirement was jurisdictional as a condition precedent to the filing of a circuit court action and could not be waived:
This court has repeatedly held that a bona ñde endeavor to acquire the land by purchase is made mandatory by statute, and, therefore, is jurisdictional, in the sense of a condition precedent, to right to invoke the power of eminent domain. An effort to purchase must be made, the fact must be alleged in the petition invoking the power of eminent domain, and proved at some stage of the proceeding. Practice and procedure upon this subject are not mapped by statute or rule. Landowners are not required to plead, demur, or make formal answer to the petition. They may move to dismiss, and should do so, if the petition fails to aver jurisdictional facts, but, if the petition makes proper averments, then the landowner may leave petitioner to his proofs, and if the jurisdictional fact alleged is not proved the proceeding is not justified and is at an end. In this particular, jurisdiction of the subject-matter may not be conferred by waiver or estoppel. The averment in the petition of endeavor to purchase was sufficient, prima facie, to authorize appointment of court commissioners and open issues of fact, inclusive of jurisdictional prerequisites, but did not prove any alleged fact, call for traverse, dispense with evidence, or bring waiver by failure to move to dismiss before appointment of commissioners. The statute of eminent domain is to be strictly construed, and its jurisdictional conditions must be established in fact and may not rest upon technical waiver or estoppel. We, therefore, must consider the merits of the objection on this point to the confirmation.
Plaintiff directs our attention to the decision in State Hwy Comm’r v Ottawa Circuit Judge, 339 Mich 390, 396; 63 NW2d 677 (1954), for the proposition that the Rogers doctrine has been abandoned by the Supreme Court. We disagree. While the Supreme Court in Ottawa Circuit Judge did distinguish away the decision in Rogers, supra, we believe it did so on the facts of the case rather than by overruling the Rogers decision. Ottawa Circuit Judge arose in the context of a petition seeking a writ of mandamus to order the circuit judge to enter an order vacating a restraining order and quashing a temporary injunction. The Court denied the petition for a writ, concluding that it was unnecessary since the state highway commissioner could achieve his desired result by paying the amount of awarded compensation and taking possession of the property in question. We believe that the Supreme Court declined to apply the Rogers doctrine because the issue of compensation was not at issue.
The proposition that the Rogers doctrine survived the decision in Ottawa Circuit Judge, supra, is further buttressed by looking to the Supreme Court’s decision in Lookholder v State Hwy Comm’r, 354 Mich 28, 37; 91 NW2d 834 (1958). In Lookholder, the Court reaffirmed the view that condemnation statutes must be strictly observed and cited with approval the decision in Rogers, supra, that the bona fide offer to purchase was a mandatory and jurisdictional requirement to invoking the powers of the circuit court in reviewing a condemnation proceeding.
Finally, plaintiff directs our attention to In re Petition of State Hwy Comm, 383 Mich 709, 716; 178 NW2d 923 (1970), wherein the Court considered a condemnation action brought under MCL 213.366; MSA 8.261(6), a predecessor to the statute involved in the case at bar. Therein, the Court dismissed an argument based upon Rogers, supra, noting that Rogers dealt with a different statute. It is difficult at best, however, to determine what effect that decision had on the Rogers doctrine since the Court only devoted one sentence to discussing Rogers, supra, and since State Hwy Comm dealt only with what factors may be considered in reaching the valuation of property and, therefore, what the condemning authority must consider in making its good-faith offer. It did not consider the jurisdictional requirements of tendering a good-faith offer. Thus, we can only conclude that any reference to the Rogers decision is, at best, dicta and the decision in State Hwy Comm offers no guidance in determining the jurisdictional nature of the good-faith offer requirement.
After considering the above cases, we are led to the conclusion that the decision in Rogers, supra, remains viable and should be applied to the instant case. Accordingly, we conclude that the tendering of a good-faith offer is a necessary condition precedent to invoking the jurisdiction of the circuit court in a condemnation action.
There remains, however, the question of what constitutes a good-faith offer. We need not resolve that question, however, in the present case since it was determined in the prior appeal that plaintiff’s offer was not made in good faith. Specifically, since our prior decision held that a good-faith offer must include the lesser of either the appraised detach-reattach costs of the movable trade fixtures or their value-in-place, Central Industrial Park Project, supra at 261, and plaintiff’s offer did not include those items, our prior decision must be read as concluding that plaintiff did not make a good-faith offer to defendant. Accordingly, the trial court was obligated to dismiss this action for want of subject matter jurisdiction. Finally, we also note that, as the Court in Rogers, supra, noted, the lack of subject matter jurisdiction cannot be waived nor can a party be estopped from raising the issue.
Finally, we turn to a question raised by the parties at oral argument, namely, whether this Court, or for that matter the trial court, can retain jurisdiction over this matter to allow plaintiff to cure the defect in its good-faith offer and resume the condemnation proceedings. We have reviewed the memoranda submitted by the parties and the authorities cited therein and conclude that it would be inappropriate for either this Court or the trial court to retain jurisdiction over a matter which is dismissed for a want of jurisdiction. Simply put, where the trial court lacked subject matter jurisdiction to entertain an action in the first instance, there is no jurisdiction to be retained.
For the above reasons, we conclude that the circuit court lacked subject matter jurisdiction to entertain plaintiffs complaint. Accordingly, the circuit court should have dismissed the action.
The decision of the circuit court is reversed and the matter is remanded to the circuit court with directions to enter an order dismissing the action for lack of subject matter jurisdiction and without prejudice to plaintiffs refiling after complying with the statutory requirements. We do not retain jurisdiction. Defendant may tax costs.
Plaintiff could, of course, reinstate proceedings after it tendered a good-faith offer to defendant. | [
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Per Curiam.
Monroe Bank & Trust appeals as of right from a decision of the Monroe County Probate Court which found that the bank had breached its fiduciary duty to a trust beneficiary, Mabel Rosati. The probate court found that the bank had not repaired and maintained the rental property that constituted the trust res, and awarded Mabel Rosati $22,000 for the value of the houses and $11,550 for loss of rent plus other costs. We affirm in part and reverse in part.
In 1980, Monroe Bank & Trust became trustee of a testamentary trust set up by Angelo Rosati for the benefit of his spouse, Mabel Rosati. The trust assets originally included a one-half interest in two parcels of real estate, 634 and 634Vi Winches ter and 731 Winchester in Monroe, Michigan. The remaining one-half interest of each property was owned by Angelo Rosati’s brother, Anthony Rosati. On February 9, 1983, the trust traded interests with Anthony resulting in the trust owning one hundred percent interest in the property located at 634 and 634Vi Winchester and no interest in the property located at 731 Winchester.
In preparation for the trade of interests in the properties, the bank had the trust property appraised by Jack Marcero. Marcero appraised the property at 634 and 634Vi Winchester at a value of $22,000 as of December 31, 1982. The property consisted of two homes which were in need of repair. The front house rented for $175 per month and the back house rented for $150 per month. After the trade, the bank agreed to sell the property at the request of Mabel Rosati. A Monroe Bank & Trust agent stated that Mabel Rosati asked that the tenants be evicted. Mabel Rosati said that she did not ask that the tenants be evicted. The tenants were given eviction notices in February, 1983, and had moved out by April or May of 1983. The bank agent went to inspect the property in June, 1983, and saw that the front house had been tagged as being in a dilapidated condition.
The property was first listed for sale in December of 1983 at $10,000. The property now consists of only one house with a value of $6,900, as the other was condemned and has been demolished. The real estate agent at trial said that the present fair market value was $4,000 to $5,000.
When the property was rented, the bank paid the rental income over to Mabel Rosati. During the term of the trust, the only maintenance Monroe Bank & Trust did was to pay the taxes and bills. There is a dispute as to who paid the insur anee premium on the property. The bank said that the premium was paid out of trust income, but the insurance agent said that Mabel Rosati paid the insurance premiums until 1984. There is no evidence in the record that the bank ever inspected this property before June, 1983, when its agent went to see the property prior to the sale.
The bank received a condemnation letter for the front house on June 25, 1983. After some talks with the city inspector, the bank wrote Mabel Rosati a letter in October, 1983, advising her that no funds should be invested in the property and that there was a potential buyer for the property for $12,000. The potential buyer later backed out of the deal. The front house has been demolished and the rear house was scheduled for demolition as of February 4, 1986. The bank admitted responsibility for a water bill of $191.54 for the rear house based on its failure to have the water shut off. As a result of this failure the pipes froze and burst.
On September 26, 1985, Monroe Bank & Trust petitioned to terminate the trust and assign the residue in this matter. Mabel Rosati answered this petition on October 22, 1985, and, on the same date, filed her petition alleging that the bank breached its fiduciary duty.
The bank claims that the trial court erred in finding a breach of fiduciary duty to Mabel Rosati. The trial court found that the loss in value of the property was due to the bank’s failure to maintain the homes and failure to keep the homes rented. The findings of fact in a bench trial will not be set aside by an appellate court unless the findings are clearly erroneous. Kroll v Crest Plastics, Inc, 142 Mich App 284, 288; 369 NW2d 487 (1985). A reviewing court should treat the trial court’s findings with deference in light of its superior ability to assess the credibility of the witnesses. Reversal is required only if the reviewing court is left with a definite and firm conviction that a mistake has been made. Kroll, supra.
When executing the terms of a trust, the trustee shall observe the standards that would be observed by a prudent man dealing with the property of another. MCL 700.813; MSA 27.5813. A trustee is by law charged with the duty of preserving the trust property. Heald v Michigan Trust Co, 274 Mich 225, 233; 264 NW 351 (1936). The determination of whether a trustee is guilty of negligence or violation of its trust duty must be governed by the circumstances of the particular case. Lawrence v First Nat'l Bank & Trust Co of Kalamazoo, 266 Mich 199, 205; 253 NW 267 (1934).
In the case at bar, the bank failed to care for the property at all until three years after it had become trustee of the property. Not only did the bank not expend any of the rent received from the property on at least minimal repairs, it did not ascertain whether the property should have been maintained or sold prior to the request that it be sold in 1983. Further, after the request in early 1983, the property was not listed for sale until December, 1983, six months after the front building was condemned.
The bank breached its duty as a fiduciary to actively manage the trust assets so as to protect and preserve the res of the trust. In general, a trustee has a fiduciary duty to preserve and maintain the res of the trust. In the instant case, the bank did nothing but act as a conduit for the rents to go from the tenants to Mabel Rosati. The trial court finding that the bank thereby breached its fiduciary duty to Mabel Rosati was not clearly erroneous.
Monroe Bank & Trust claims that, even if it breached its duty to Mabel Rosati, the trial court erred in determining that the breach proximately caused the damages to the beneficiary. A party’s negligent conduct will be considered a proximate cause if it is a substantial factor in causing the harm. Williams v Johns, 157 Mich App 115, 120; 403 NW2d 516 (1987).
The bank had control of the trust property for more than years prior to its condemnation, yet did nothing during that period except act as a collection agent for the rent. The bank never even had the property inspected prior to June, 1983, even though it became trustee of the property in 1980.
There can be no doubt that the bank’s failure to expend any funds for maintenance was a substantial factor in the property’s finally being condemned and losing its value.
The final issue on appeal challenges the probate court’s determination of the amount of damages. The probate court awarded Mabel Rosati $22,000 as a result of the loss of the property. This figure equals the value of the property as of December 31, 1982. In addition, the probate court awarded Mabel Rosati $11,250 for lost rents, plus other costs. A court’s determination of damages in a bench trial will not be overturned on appeal unless the result is clearly erroneous. Precopio v Detroit, 415 Mich 457, 465-467; 330 NW2d 802 (1982). A trial court’s decision is clearly erroneous when the reviewing court is left with a definite and firm conviction that the trial court made a mistake. Precopio, supra.
In the instant case, we are left with a definite and firm conviction that the probate court made a mistake in its determination of damages. The probate court awarded the beneficiary the value of the property before the depreciation, plus the value of the lost rents caused by the bank’s breach of the fiduciary duty. We find this to be error. By awarding Mabel Rosati the value of the property before the depreciation in value and the lost rents, Mabel Rosati was essentially compensated twice for her losses. We reverse the finding on damages and remand to the trial court for a new judgment on damages. Mabel Rosati should be made whole, and receive interest due on her losses.
Affirmed in part, reversed in part, and remanded. | [
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Per Curiam.
Plaintiff appeals as of right from the trial court’s grant of defendant’s motion for summary disposition pursuant to MCR 2.116(0(10). Plaintiff argues on appeal that the trial court erred when it ruled that the facts as alleged by plaintiff do not rise to the level of an intentional tort. We affirm.
Plaintiff was employed by defendant as a roll-form machine operator. He alleged that he was required to work in an aisle with his back to a storage rack which held stacked cartons of metal-shelving parts and that there were no stop bars or other protective devices to keep the stacked cartons and parts from falling off the storage rack. He contends that, on several occasions prior to his being injured, other coemployees had complained to defendant that they felt unsafe working underneath the unguarded cartons and parts. Plaintiff alleges that defendant should have placed steel stops on the rack to prevent the material from falling.
Plaintiff was injured on August 21, 1986, when a fellow employee, a forklift truck driver, attempted to move one of the cartons on the top level of the storage rack opposite where plaintiff was working. He maintains that the truck driver was not properly trained, licensed or otherwise qualified to operate the forklift. This concern had also been conveyed to defendant. As a result of the actions of the forklift driver, one of the cartons on the shelf was pushed off the rack and fell onto plaintiff, severely injuring him, fracturing his legs, breaking his pelvis and his back with resultant paralysis. He has been disabled since the incident.
By way of his complaint, plaintiff alleged that defendant knew of the dangerous condition of the racks, intended to leave the racks unguarded, and intended that an unqualified forklift operator drive the equipment in the area of the unguarded storage racks. Based on these facts, plaintiff alleged his injuries were substantially certain to occur. Thus, he argued, he should be allowed to sue for damages notwithstanding the exclusive remedy provision of the Workers’ Disability Compensation Act, MCL 418.131; MSA 17.237(131).
The trial court granted defendant’s motion for summary disposition pursuant to MCR 2.116(0(10) on the ground that plaintiff’s sole remedy was the workers’ compensation act. It is plaintiff’s position on appeal that the trial court erred when it found that the circumstances, as alleged by plaintiff, did not give rise to a cause of action under the "substantial certainty” standard of Beauchamp v Dow Chemical Co, 427 Mich 1; 398 NW2d 882 (1986).
Summary judgment pursuant to MCR 2.116(0(10) should be granted only when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Spencer v Ford Motor Co, 141 Mich App 356; 367 NW2d 393 (1985); Pauley v Hall, 124 Mich App 255; 335 NW2d 197 (1983), lv den 418 Mich 870 (1983). When passing on a motion under this subrule, the court must consider the pleadings, affidavits, depositions, admissions and other documentary evidence available to it. Rizzo v Kretschmer, 389 Mich 363; 207 NW2d 316 (1973). The trial court must be satisfied that the nonmoving party’s claim cannot be supported at trial because of a deficiency which cannot be overcome. Morganroth v Whitall, 161 Mich App 785, 788; 411 NW2d 859 (1987).
The trial court correctly ruled that plaintiffs allegations are legally insufficient to constitute a claim of an "intentional tort” within the meaning of Beauchamp, supra. The trial court made this decision after considering all of the pleadings and affidavits as required by the court rule.
In Beauchamp, the Supreme Court held that actions based upon intentional torts of an employer against an employee are not statutorily barred by the exclusive remedy provision of the workers’ compensation act. The Supreme Court carefully discussed the differences between the so-called true intentional tort test and the substantial certainty test before arriving at its conclusion. The Supreme Court, in adopting the substantial certainty test, stated:
The "substantial certainty” line of cases defines an intentional tort more broadly. An intentional tort "is not. . . limited to consequences which are desired. If the actor knows that the consequences are certain, or substantially certain, to result from his act, and still goes ahead, he is treated by the law as if he had in fact desired to produce the result.” It does not matter whether the employer wishes the injury would not occur or does not care whether it occurs. If the injury is substantially certain to occur as a consequence of the actions the employer intended, the employer is deemed to have intended the injuries as well. The substantial certainty test tracks the Restatement definition of an intentional tort. [427 Mich 21-22.]
There is a significant difference between substantial certainty and substantial likelihood. As this Court stated in Boyer v Louisville Ladder Co, 157 Mich App 716, 719; 403 NW2d 210 (1987):
The Beauchamp Court cautioned, however, that substantial certainty should not be equated with substantial likelihood. Further, a claim that an injury was caused by failure to provide safe working conditions is essentially a claim that the employee was injured by the employer’s negligence. 427 Mich 25.
A mere knowledge and appreciation of the risk involved in an act is not the same as the intent to cause an injury. Beauchamp, supra. A result is intended if the act is done with the purposes of accomplishing the result or with knowledge that to a substantial certainty such a result will ensue. Id.
A review of the trial court’s opinion discloses that the trial court considered the Beauchamp language in detail. The trial court concluded that using inexperienced, careless or incompetent forklift drivers to place and remove items from the storage rack created a substantial risk or likelihood of injury. But the court held that these acts did not, as a matter of law, create a "substantial certainty” of injury as required by Beauchamp. We agree.
We hold that, in this instance, plaintiff merely alleged a negligence cause of action that falls short of an intentional tort as defined in Beauchamp and that his right of recovery is limited to the remedies available under the workers’ compensation act. The trial court properly granted summary disposition.
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Per Curiam:.
Plaintiff appeals as of right from an order granting summary disposition in favor of defendant Michigan Catastrophic Claims Association. The sole issue is whether plaintiff, an insurer which has never written no-fault automobile insurance coverage in the State of Michigan, is entitled to reimbursement from the catastrophic claims fund for no-fault benefits in excess of $250,000 paid to or on behalf of a nonresident insured injured within the State of Michigan. We hold that plaintiff is not entitled to such reimbursement and affirm.
Andrea Craver was rendered a quadriplegic in a one-car accident which occurred in Michigan. Craver, who is an Ohio resident, was riding with another Ohio resident in a car registered in the State of Ohio.
Plaintiff had issued a policy of insurance to Craver’s father, an Ohio resident, insuring Ohio registered vehicles. After the accident, Craver filed a claim with plaintiff under her father’s Ohio policy for benefits under Michigan’s automobile no-fault insurance act, MCL 500.3101 et seq.; MSA 24.13101 et seq. Pursuant to § 3163 of the act, plaintiff was obligated to provide no-fault benefits to its out-of-state insureds injured within the state of Michigan. Accordingly, plaintiff paid no-fault insurance benefits to Craver. When the no-fault benefits paid approached $250,000, plaintiff filed with defendant mcca a claim under the catastrophic claims statute, MCL 500.3104; MSA 24.13104, for reimbursement of benefits paid in excess of $250,000. Defendant denied the claim. This declaratory judgment action followed.
The mcca is a nonprofit association which must provide one hundred percent indemnification for members’ losses in excess of $250,000 in each loss occurrence. MCL 500.3104(1) and (2); MSA 24.13104(1) and (2). Membership in the mcca is determined as follows:
Each insurer engaged in writing insurance coverages which provide the security required by section 3101(1) within this state, as a condition of its authority to transact insurance in this state, shall be a member of the association and shall be bound by the plan of operation of the association. [MCL 500.3104(1); MSA 24.13104(1). Emphasis added.]
The security required by section 3101(1) is a policy of no-fault insurance on a motor vehicle required to be registered in Michigan. MCL 500.3101(1) and (3); MSA 24.13101(1) and (3).
The mcca’s expenses are funded through a premium charged to members. MCL 500.3104(7)(d); MSA 24.13104(7)(d). The premium charged to each member of the mcca is assessed as follows:
Each member shall be charged an amount equal to that member’s total earned car years of insurance providing the security required by section 3101(1) . . . written in this state during the period to which the premium applies, multiplied by the average premium per car. The average premium per car shall be the total premium calculated divided by the total earned car years of insurance providing the security required by section 3101(1) . . . written in this state of all members during the period to which the premium applies. [MCL 500.3104(7)(d); MSA 24.13104(7)(d). Emphasis added.]
At all times pertinent to this case, plaintiff was authorized to write automobile insurance coverage in Michigan. However, plaintiff has never written an automobile insurance policy issued to a Michigan resident on a vehicle registered in the State of Michigan.
On these facts, we agree with the trial court’s conclusion that plaintiff was not entitled to reimbursement out of the fund. Plaintiff in this case has never issued a no-fault insurance policy on a vehicle registered in Michigan and thus is not "engaged in writing” no-fault automobile insurance coverage in Michigan, a prerequisite to membership in the mcca. Furthermore, plaintiff has never paid any premium to the mcca and the mcca has no way to calculate a premium for plaintiff, since premiums are based on policies written in Michigan. Since plaintiff does not write policies in this state plaintiff cannot be a member insurer of the mcca entitled to reimbursement from the fund.
Affirmed. | [
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Per Curiam.
After a five-day trial in the Wayne Circuit Court in this medical malpractice case, the jury, on January 13, 1987, returned a verdict of no cause of action. Plaintiff appeals as of right and we reverse and remand for a retrial, finding that the trial court’s use of the phrase "guilty of malpractice” in its instruction and reinstruction to the jury during its general charge and after having briefly, during voir dire, explained the difference between the burdens of proof in criminal and civil cases improperly increased plaintiff’s burden of proof in this action.
The record reveals that on April 25, 1981, Carl Vogler, age forty-nine, suffered serious injuries in an automobile accident, including several broken ribs, a fractured collarbone, a broken spleen and a torn pancreas. He received immediate surgical care by employees at Henry Ford Hospital in Detroit and was discharged on May 9, 1981. Later that same day Mr. Vogler noticed that his dressing was leaking bright red blood and he returned to Henry Ford Hospital by ambulance. On May 11, 1981, further surgery was performed, revealing blood and blood clots in the area of the earlier surgery. Steps were taken to stop the bleeding. However, the day after the second surgery Mr. Vogler had a seizure and fell unconscious. He died on July 9, 1981.
At trial, both plaintiff, who was married to Mr. Vogler and is the personal representative of his estate, and defendant, Henry Ford Hospital, presented the testimony of an expert medical witness. Plaintiff’s expert, William Philip Keane, M.D., opined that the hospital had breached the applicable standard of care in treating Mr. Vogler by failing to tie off the splenic artery at the time of the first surgery, by discharging Mr. Vogler on May 9, 1981, and by failing to have the physician who had performed the initial surgery immediately evaluate Mr. Vogler’s need for further surgery upon his readmission to the hospital on May 9, 1981. Dr. Keane concluded that Mr. Vogler’s death could have been prevented had the hospital provided treatment in accordance with the applicable standard of care.
The hospital’s expert medical witness, Charles Edward Lucas, M.D., opined that Mr. Vogler received medical treatment consistent with the applicable standard of care, testifying that he found no evidence that the splenic artery was improperly tied off during the initial surgery, that Mr. Vogler was improperly discharged on May 9, 1981, or that the delay in performing the second surgery on May 11, 1981, was inappropriate.
On appeal, it is first argued that the trial court erroneously increased plaintiff’s burden of proof by instructing the jury that plaintiff, in order to prove her case, Was obliged to show that the hospital was "guilty” of malpractice or negligence. We agree.
In instructing the jury, the trial court, in pertinent part, stated:
[TJhose are the three propositions that the plaintiff is obliged to prove. I want to amplify a little bit, however, on the propositions.
In the first one I said the plaintiff had to prove that the defendant was guilty of professional negligence, or malpractice. Those terms are interchangeable, for the purposes, for the sense in which I am using them.
Now I said that the plaintiff had the burden of proof on these three propositions, and you might ask, "Well, how do we tell whether the plaintiff has sustained that burden?” Well, we have a test for that. When I say that a party has the burden of proof, I mean that the evidence must satisfy you that the proposition on which the party has that burden of proof has been established by evidence which outweighs the evidence against it. You must consider all of the evidence, regardless of which party produced it.
So once I give you, tell you what those three propositions are, I want you to think as the burden of proof, how does that tell you what your verdict will be. Well, you know that, you can tell by what I’ve already told you, but I can spell it out. Your verdict will be for the plaintiff if the defendant was guilty of malpractice, and such malpractice was a proximate cause of Mr. Vogler’s death, and if the plaintiff suffered damages as a result of his death. [Emphasis added.]
After the court finished reading its charge to the jury and the jury was excused to begin deliberations, counsel for plaintiff objected to the court’s use of the word "guilty,” stating:
Your Honor, I think when you were summarizing when the Plaintiff can recover, you indicated that your verdict would be with Plaintiff if the Defendant was guilty of negligence. I don’t think that under [SJI] 30.03, burden of proof, you have to show [defendant] guilty of anything. You only need show the Defendant was negligent. Using the words "guilty of negligence,” I don’t think that’s proper under 30.03.
The objection is that the Standard Jury Instructions don’t use the word "guilty.” Guilty applies only to a criminal case, not a civil case, and I think it makes the burden that much greater if you use the word guilty, as opposed to finding the Defendant negligent, and that’s the reason I’m objecting to it, your Honor.
The trial judge, in response to the objection, pointed out that during voir dire of the jury he had specifically explained the different burdens of proof applicable in criminal and civil cases, the former requiring a plaintiff to prove his case beyond a reasonable doubt and the latter requiring a plaintiff to prove his case merely by a preponderance of the evidence, and that he "would feel silly” in recalling the jury for the additional instruction that, "when I said the word 'guilty,’ I wasn’t implying that they had to prove the [defendant] guilty of a crime.” Nevertheless, the trial judge assured plaintiff’s counsel that "I appreciate what you say.”
About one hour later the jury sent a note to the trial judge requesting reinstruction on "the three things that [plaintiff] has to prove.” Included in this reinstruction was the following language:
Now I will proceed to tell you as to the three things that the Plaintiff has to prove, that’s the items of the burden of proof, and I will repeat those.
Number one, she has to prove that the Defendant, or more properly agents of the Defendant, physicians we’re talking about[,] were professionally negligent or guilty of malpractice, whichever term you want to use, in one or more of the ways that they claimed as those claims were stated to you in my instructions. So number one is did they prove that one of . . . you know, that the Defen dant’s agents were really guilty of . . . did they commit malpractice in one or more of the ways claimed. [Emphasis added.]
Instructional errors which increase a plaintiff’s burden of proof are grounds for a reversal of a jury verdict. Karas v White, 101 Mich App 208, 211; 300 NW2d 320 (1980). We conclude that the trial judge’s use of the term "guilty” in its instruction and reinstruction to the jury was improper and may well have led the jury to believe that plaintiff was obligated to do much more than establish only the professional negligence of the hospital during treatment of Mr. Vogler. Even after plaintiff’s counsel had objected to the use of the term "guilty” in the initial instructional charge, and after the judge had assured counsel that he appreciated counsel’s concerns, the jury— having requested reinstruction—was again instructed that plaintiff had the burden of proving defendant "guilty.” We quote with approval the following language in plaintiff’s appellate brief:
[T]he jury had been instructed that, in order for plaintiff to prevail, [it] had to determine that defendant was guilty of malpractice. It must be assumed that jurors, unschooled in the niceties of the law, apply ordinary, common-sense meanings to the words contained in jury instructions. The word "guilty” in a legal setting has only one meaning: a finding of criminal culpability. The trial court therefore imposed a criminal burden of proof upon plaintiffs, or at the least, provided the jury with confusing and inconsistent instructions as to whether [its] determination had to be that defendant was negligent (by a preponderance of the evidence) or guilty (beyond a reasonable doubt).
In this regard, we distinguish between the use of the phrase "guilty of negligence” as stated to a jury in a civil case after briefly having been told during voir dire the difference between the burdens of proof in civil and criminal cases and the use of the phrase as stated to a jury in a civil case after having been informed only of the burden of proof in civil cases. In the cases, such as the instant case, where the jury was briefly told the difference between the two burdens of proof, the likelihood of confusion on the part of the jury is compounded. Moreover, in this regard, we distinguish between the use of the phrase "guilty of negligence” as stated to a jury such as that in the present case and as used by a court in its written opinion. A court, of course, is in no jeopardy of confusion regarding the appropriate standard of care.
We note that our holding on this issue is consistent with comments in a legal treatise on medical malpractice and the judgment of the supreme court of a sister state.
Having found error requiring reversal in the first issue raised by plaintiff on appeal, we need not address the remaining issue raised by plaintiff regarding the propriety of certain statements made by defense counsel during closing argument.
Reversed and remanded.
On this basis we distinguish the cases cited in defendant’s appellate brief in which, defendant claims, "this Court and the Supreme Court have approved instructions including reference to a party being 'guilty of negligence.’ ”
On this basis we distinguish the cases cited in defendant’s appellate brief in which, defendant claims, "this Court and the Supreme Court in its opinions have employed the phrase ['guilty of negligence’] in discussion of a party’s negligence.”
In 3 Kramer, Medical Malpractice, § 28.02, in a chapter regarding the trial court’s charge to the jury, it is observed that "|j]urors are troubled with [the] definition [of malpractice] and often get little comfort from the court’s long involved dissertation” and noted that "[i]t has . . . been held improper for the judge to use the words 'guilty of malpractice,’ as the use of the word 'guilty’ in a civil action is improper.” (Emphasis in original.)
In Kyle v Fok, 18 Ohio St 2d 70; 247 NE2d 457 (1969), the Ohio Supreme Court, citing Bahm v Pittsburgh & Lake Erie R Co, 6 Ohio St 2d 192; 217 NE2d 217 (1966), and Reep v Greyhound Corp, 171 Ohio St 2d 199; 168 NE2d 494 (1960), stated, in a wrongful death action based on medical malpractice in which the trial court used the phrase "guilty of malpractice” in special instructions to the jury before argument, that "a majority of the court is of the opinion that such use of the word 'guilty’ in civil damage actions is reversible error.” | [
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Per Curiam.
Defendant appeals as of right from an August 4, 1987, order denying its motion for summary disposition pursuant to MCR 2.116(0(10) and granting summary disposition to plaintiff. We reverse.
Plaintiff maintained a savings account in trust for his minor children at defendant bank. When he first opened the account, plaintiff directed defendant to mail all statements to his address at 18463 San Juan. Plaintiff later moved to an apartment but continued to have his mail sent to the San Juan address. Still residing at that address were plaintiff’s mother, sister and nephew. Plaintiff testified that he continued to have the statements sent to his old address because he traveled frequently and found that his new mail box was too small to accommodate the large amount of mail received while out of town.
Although defendant maintained it sent them, plaintiff testified there was a four- or five-month period in which he did not receive any account statements. The record indicates that, during this time, plaintiff’s nephew, who has the same name as plaintiff, fraudulently withdrew over $62,000 from plaintiff’s savings. The fraud was discovered by one of defendant’s employees, who, after noticing that a withdrawal slip did not contain either of the names of plaintiff’s children, notified other bank personnel who then notified plaintiff.
After learning of the forgeries, plaintiff filed suit against defendant alleging that, between April and September of 1986, defendant made $62,200 in unauthorized payments from two of plaintiffs accounts. The complaint further alleged that these payments violated the agreement between plaintiff and defendant and were the result of defendant’s negligence in failing to recognize the forged signatures.
In its answer, defendant asserted plaintiffs claim was barred by laches and that any loss incurred by plaintiff was due to his own negligence in failing to timely examine his account statements.
On July 7, 1987, plaintiff filed a motion for summary disposition pursuant to MCR 2.116(0(10), claiming no genuine issue of any material fact and asking that judgment be entered against defendant in the amount of $63,620 plus interest and attorney fees. On July 15, 1987, defendant also moved for summary judgment pursuant to MCR 2.116(0(10). Defendant claimed that under MCL 440.4406(2)(b); MSA 19.4406(2)(b) plaintiffs failure to examine his statements precluded his claim. Following a hearing on the motions the trial court granted plaintiffs motion, ruling that because defendant had failed to send plaintiff both the account statement and the withdrawal slips, defendant was estopped from asserting the statute as a defense and was therefore bound by the common-law rule holding a bank liable when it acts without its customer’s authority.
On appeal defendant claims the trial court erred in granting summary disposition in favor of plaintiff.
The trial court summarily disposed of the case after finding MCL 440.4406; MSA 19.4406 inapplicable. Thus, the issue before this Court is the correct interpretation of the statute. The statute provides in pertinent part:
(1) When a bank sends to its customer a statement of account accompanied by items paid in good faith in support of the debit entries or holds the statement and items pursuant to a request or instructions of its customer or otherwise in a reasonable manner makes the statement and items available to the customer, the customer must exercise reasonable care and promptness to examine the statement and items to discover his unauthorized signature or any alteration of an item and must notify the bank promptly after discovery thereof.
(2) If the bank establishes that the customer failed with respect to an item to comply with the duties imposed on the customer by subsection (1) the customer is precluded from asserting against the bank
(a) his unauthorized signature or any alteration on the item if the bank also establishes that it suffered a loss by reason of such failure; and
(b) an unauthorized signature or alteration by the same wrongdoer on any other item paid in good faith by the bank after the first item and statement was available to the customer for a reasonable period not exceeding 14 calendar days and before the bank receives notification from the customer of any such unauthorized signature or alteration.
(3) The preclusion under subsection (2) does not apply if the customer establishes lack of ordinary care on the part of the bank in paying the item(s).
Subsection (1) of the statute clearly states that a bank customer, such as plaintiff, has an affirmative duty to "exercise reasonable care and promptness” in examining bank statements and items to discover unauthorized signatures or alterations. If this duty is not met, and the customer fails to establish lack of ordinary care on the part of the bank in paying the items (subsection [3]), subsection (2) precludes recovery from the bank on any items containing the unauthorized signature of the same forger which were paid by the bank at least fourteen days after the first items and statement were made available to the customer.
In the instant case defendant claimed plaintiff breached this duty of inspection and must therefore suffer the consequences of his nephew’s fraudulent actions. However, the trial court interpreted § 4406 as requiring defendant to send plaintiff each month both an account statement and the completed withdrawal slips (items). Accordingly, the trial court ruled that defendant’s failure to send the withdrawal slips rendered the statute inapplicable. We disagree. The statute does not require a bank to mail its customers a statement accompanied with items in all cases. Instead the statute provides three general options. The bank may mail the statement and items to the customer, hold the same pursuant to a customer’s request, or "otherwise in a reasonable manner make the statement and items available to the customer.” Thus, defendant’s failure to comply with the first option does not render the statute inapplicable. The trial court therefore erred in so finding and in granting summary disposition to plaintiff on this basis.
Although the trial judge erred in granting summary disposition in favor of plaintiff, we do not believe he erred in denying defendant’s motion for summary disposition. A motion filed under MCR 2.116(C)(10) tests whether there is factual support for the plaintiff’s claim. After reviewing the pleadings and other documentary evidence, the court should give the benefit of any reasonable doubt to the opposing party and should not grant summary disposition unless it finds it is impossible for the claim to be supported at trial because of some deficiency which cannot be overcome. Dzierwa v Michigan Oil Co, 152 Mich App 281; 393 NW2d 610 (1986).
In the instant case, although applicable, §4406 does not mandate a finding for defendant. Defendant may not avail itself of the preclusion in subsection (2) if plaintiff can show that the manner in which the statement and items were made available was not a reasonable one, plaintiff exercised reasonable care and promptness in examining his statements under the circumstances, or defendant failed to exercise ordinary care in paying the items (subsection [3]).
Reversed and remanded. | [
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Per Curiam.
Plaintiff appeals, and defendant cross appeals, from the judgment of divorce entered by the circuit court on plaintiff’s complaint for divorce. We reverse in part and affirm in part.
The parties were married on February 8, 1980, while plaintiff was pursuing an undergraduate degree and defendant was employed full-time. Shortly after the marriage, the parties moved in with plaintiff’s grandparents. The parties paid no rent, but were responsible for purchasing their own food. This arrangement continued for the remainder of plaintiff’s undergraduate education and continued thereafter as plaintiff began his pursuit of a degree in dentistry. The parties moved out of plaintiff’s grandparents’ house around December, 1982, after plaintiff had completed IV2 years of the four-year curriculum required for his dentistry degree.
Defendant was employed during the course of the marriage; plaintiff worked during his undergraduate studies and worked the summer following his first year of dental school. Plaintiff did not work subsequent summers as the dental school curriculum did not permit continued employment. Plaintiff borrowed heavily during dental school, incurring student loan indebtedness of just under $70,000 and loans from family members of approximately $9,000. While a significant portion of these borrowed funds paid for plaintiff’s educational expenses, a portion of the loan proceeds also contributed to the support of the family during the marriage. Under the provisions of the divorce judgment, plaintiff is solely responsible for the repayment of these loans.
Furthermore, during the course of the marriage and while plaintiff was in dental school, a daughter was born to the parties in January, 1982. Defendant returned to work shortly after the birth of the child and plaintiffs grandmother cared for the child while defendant was at work and continued to do so for the duration of the parties’ marriage.
The parties’ marriage deteriorated while plaintiff was in dental school, apparently at least in part due to plaintiffs infidelities. One of plaintiffs relationships with other women resulted in a child which was born sometime in 1984. The parties separated sometime prior to April, 1985, and plaintiff filed a complaint for divorce on April 5, 1985. Plaintiff graduated from dental school the following July and found employment with a dentist in Ironwood, Michigan.
In rendering the judgment of divorce, the trial court declined to divide plaintiffs dental degree as a marital asset, but did take the degree into consideration in awarding defendant alimony in gross in the amount of $169,000, payable over the course of twenty years in installments of $100 per week for the first five years, $150 per week for the second five years, and $200 per week for the remaining ten years. Physical custody of the child was granted to defendant and plaintiff was ordered to pay child support in the amount of $35 per week. Furthermore, plaintiff was required to pay defendant’s attorney fees in the amount of $3,000. The parties had accumulated only a modest amount of personal property during the course of the marriage and each was awarded the personal property in their possession at the time of judgment. Finally, plaintiff was made solely responsible for the repayment of his student loans.
Plaintiffs sole issue on appeal is that the trial court erred in denying his motion for new trial to permit the presentation of newly discovered evidence. Inasmuch as the "newly discovered evidence” which plaintiff wished to present could have been discovered with the exercise of due diligence in time to be presented at trial, we do not believe that the trial court erred in denying the motion.
While plaintiff does not directly challenge the provisions of the judgment of divorce on appeal, defendant has cross appealed asking us to review the judgment, particularly with respect to the provisions concerning the valuation of the professional degree and the award of attorney fees. In both instances, defendant argues that she is entitled to a greater award. While we disagree with defendant’s assertion, we will nevertheless exercise our power of de novo review and review the judgment of divorce, reversing in part provisions of that judgment.
Panels of this Court have split on the issue whether a degree should be treated as marital property. This Court has held that a degree is an asset of the marriage subject to property division, while other panels have concluded that, while the degree is not necessarily an asset, it should be considered in an award of alimony. See Daniels v Daniels, 165 Mich App 726, 731; 418 NW2d 924 (1988). We agree with the observations of Judge R. B. Burns in Olah v Olah, 135 Mich App 404, 410-411; 354 NW2d 359 (1984):
In our opinion, a spouse who works and supports the mate while the mate pursues an education should be compensated. However, we do not adhere to the proposition that a degree is property and therefore a marital asset. We believe as stated in Graham v Graham, 194 Colo 429, 432; 574 P2d 75, 77 (1978):
"An educational degree, such as an M.B.A., is simply not encompassed even by the broad views of the concept of 'property.’ It does not have an exchange value or any objective transferable value on an open market. It is personal to the holder. It terminates on death of the holder and is not inheritable. It cannot be assigned, sold, transferred, conveyed or pledged. An advanced degree is a cumulative product of many years of previous education, combined with diligence and hard work. It may not be acquired by the mere expenditure of money. It is simply an intellectual achievement that may potentially assist in the future acquisition of property. In our view, it has none of the attributes of property in the usual sense of that term.”
Accordingly, we believe the trial court was correct in not rendering an award to defendant as part of the property division in the divorce for any interest in plaintiffs dentistry degree. Rather, any award by the trial court made on the basis of the dentistry degree should come in the form of alimony, which it did. Therefore, it becomes necessary to review the trial court’s award of alimony to determine if that award was proper. We believe that it was not.
The award of alimony is within the discretion of the trial court, but this Court reviews such an award de novo and exercises its independent judgment in reviewing the evidence, giving grave consideration to the trial court’s findings and not reversing unless this Court is convinced that it would have come to a different conclusion had it been sitting in the trial court’s position. Cloyd v Cloyd, 165 Mich App 755, 759; 419 NW2d 455 (1988). The Cloyd Court outlined the factors to be considered in awarding alimony:
Factors to be considered in determining whether alimony should be awarded in a judgment of divorce include: (1) the past relations and conduct of the parties; (2) the length of the marriage; (3) the ability of the parties to work; (4) the source and amount of property awarded to the parties; (5) the age of the parties; (6) the ability of the parties to pay alimony; (7) the present situation of the parties; (8) the needs of the parties; (9) the health of the parties; (10) the prior standard of living of the parties and whether either is responsible for the support of others; and (11) general principles of equity. [Id.]
We are convinced that we would have reached a different conclusion had we occupied the position of the trial court.
In looking to these factors, we believe that the first factor weighs somewhat in favor of the award of alimony as plaintiff’s conduct did lead to the deterioration of the marriage. The second factor weighs against the award of alimony inasmuch as the marriage lasted only five years. The third factor weighs against the award of alimony as both parties are able to work. The fourth factor is neutral as there was no significant amount of property accumulated during the course of the marriage. The fifth factor weighs against the award of alimony as both parties were under thirty years of age at the time of trial. The sixth factor weighs against the award of alimony as it does not appear from the record that plaintiff has any significant financial ability to pay alimony in light of his child-support and student loan obligations. The seventh factor weighs in favor of the award of alimony as plaintiff’s present situation, being a licensed dentist, did arise from the efforts of the parties during the marriage. With respect to the eighth factor, we conclude that this factor is neutral. While defendant’s income is modest, approximately $15,000 for 1985 according to the trial court’s opinion, plaintiff’s income is not significantly greater. Defendant is able to work and support herself and, therefore, we do not believe alimony is warranted under this factor. As for the ninth factor, nothing in the record before us suggests that either party has any significant health problems. With respect to the tenth factor, it does not appear to us from the record that defendant has suffered a loss in her standard of living as a result of the divorce, though we do note that she has custody of the parties’ minor child and plaintiff’s child-support obligation is modest. Finally, factor eleven weighs in the favor of an award of alimony in that, under the principles of equity, defendant should receive some recompense for her efforts in assisting plaintiff’s pursuit of his dentistry degree. Olah, supra.
Turning to the specific consideration of the compensation to which defendant is entitled for her efforts in plaintiff’s pursuit of the dentistry degree, we do not believe that she is entitled to a financial windfall merely by virtue of the fact that she was married to plaintiff while he earned his degree. As this Court noted in Thomas v Thomas (After Remand), 164 Mich App 618, 625-626; 417 NW2d 563 (1987), the relative contributions of the parties must be considered in determining the amount of compensation to which the spouse is entitled.
On the basis of the trial court’s findings of fact in its opinion, it would appear that defendant earned over $50,000 during the four years of plaintiff’s dental education, including the period the parties were separated. Although the trial court’s opinion reflects that plaintiff worked during the summer following his freshman year of dental school, the trial court made no finding as to the amount of plaintiff’s income from that employment. The record also reflects that plaintiff borrowed approximately $70,000 in student loans during his dental education, for which he remains solely responsible for repayments, as well as an additional $9,000 from family members. Additionally, the parties received substantial assistance from plaintiffs grandparents by being allowed to live rent-free in the grandparents’ home for the first IV2 years or so of dental school, as well as plaintiffs receiving additional sums from his grandparents during the course of his education. Additionally, plaintiffs grandparents assisted the parties by caring for their child while plaintiff was in school and defendant was at work.
It should also be considered that plaintiffs receipt of a dental degree did not merely reflect the financial investment and sacrifices of the parties, but also a considerable investment of time and effort by plaintiff in pursuing the degree. The trial court’s opinion reflects that plaintiff spent approximately sixty hours per week on school-related activities. In light of these facts, we conclude that, while defendant certainly rendered a great deal of assistance in plaintiffs pursuit of his dentistry degree, it was by no means defendant’s sole sacrifice, financial or otherwise, that resulted in plaintiffs earning his degree. Financially, the majority of funds expended by the parties during the marriage, both for plaintiffs education and household expenses, came from plaintiff, albeit much in the form of loans which plaintiff is now obliged to repay. A significant amount of additional support came from plaintiffs relatives. In addition, there was, as previously noted, plaintiffs investment of a good deal of time in his educational pursuits.
What can be concluded is that the parties entered into their marriage with certain hopes, aspirations, and expectations, both financial and otherwise. While it is incumbent upon the courts to assist the parties in resolving their mutual financial affairs, it is neither feasible nor desirable for the courts to address all the problems posed by a divorce. It is beyond the ability of the judicial system to fully address all of the ramifications flowing from a divorce. We believe that awarding a specific sum of money in a divorce judgment for an academic degree, whether it is made part of a property division or called alimony in gross, goes beyond settling the parties’ financial affairs and, rather, is an attempt to remedy the noneconomic ramifications of divorce. Such an award valuing an academic degree ignores the fact that a degree is not property, Olah, supra, and marriage is not solely an economic transaction.
This latter proposition was discussed by Judge Pressler of the Appellate Division of the Superior Court of New Jersey in Mahoney v Mahoney, 182 NJ Super 598; 442 A2d 1062, 1070-1072 (1982), where he articulately explained why the courts are ill advised to divide an academic degree at the time of divorce, and we take the liberty of quoting Judge Pressler’s comments at length:
We take, however, a fundamentally different view based on our perception of the essential nature of the marital relationship. Marriage is a joint venture which, while it has a considerable economic dimension, is not merely an economic undertaking. . . . While the marriage endures and the spouses define for themselves their respective contributions, financial and otherwise, to each other and to the marriage, they do not, nor is there any reason to, place relative values on the worth of their respective contributions. They contribute as the dictates of their relationship, their mutual interests and their own self-determination require, and they share the benefits, financial and otherwise, in the same manner. They do not nor do they expect to pay each other for their respective contributions in any commercial sense. Rather, they work together, in both income and nonincome producing ways, in their joint, mutual and individual interests.
The termination of the marriage represents, if nothing else, the disappointment of expectations, financial and nonfinancial, which were hoped to be achieved by and during the continuation of the relationship. It does not, however, in our view, represent a commercial investment loss. Recompense for the disappointed expectations resulting from the failure of the marital entity to survive cannot, therefore, be made to the spouses on a strictly commercial basis which, after the fact, seeks to assign monetary values to the contributions consensually made by each of the spouses during the marriage. Appropriate recompense, as it were, is afforded by an award of alimony where the parties’ respective income situations warrant and by equitable distribution of the financial assets accumulated during the marriage. . . .
The question, then, is whether there should be a different rule and a different basic jurisprudence which would place on a strictly commercial basis the financial contributions made by one spouse during the marriage to the other spouse’s education and training in order that that contribution alone be commercially recompensed. Unless the spouses themselves have otherwise agreed, we think not, even if the marriage terminates before the expected "fruits” of the education and training are borne.
The claim of special recompense is based on the notion that there are unique considerations involved when one spouse’s financial contribution is made in order to enable the other to obtain a professional degree or license. In our view, that claim represents a kind of elitism which inappropriately depreciates the value of all the other types of contributions made to each other by other spouses pursuing different life styles and responding in their individual ways to their life experiences. Clearly, a wife who supports her husband while he pursues an educational or professional objective (or the husband who supports the wife, if that is the case) is at the same time receiving nonfinancial contributions from him. The support ing wife is, moreover, not sacrificing for the exclusive benefit of the husband. Her efforts are for them both, as are his, in following a self-determined, consensual and mutual plan they have agreed upon for their joint benefit. If the plan fails by reason of the termination of the marriage, we do not regard the supporting spouse’s consequent loss of expectations by itself as any more compensable or demanding of solicitude than the loss of expectations of any other spouse who, in the hope and anticipation of the endurance of the relationship and its commitments, has invested a portion of his or her life, youth, energy and labor in a failed marriage.
Ultimately, we are in accord with the rationale of the Arizona court which, in Wisner v Wisner, [129 Ariz 333, 341; 631 P2d 115 (Ariz App, 1981)] rejected a wife’s unjust enrichment claim on this reasoning:
"... Marriage is by nature not an arm’s length transaction between two parties. If two individuals wish to define their marriage as such, they may of course do so and memorialize it in a contract that spells out the specific rights and duties of each. However, in the absence of such an agreement, we believe it is improper for a court to treat a marriage as an arm’s length transaction by allowing a spouse to come into court after the fact and make legal arguments regarding unjust enrichment by reason of the other receiving further education during coverture. In the absence of a specific agreement, such legal arguments simply do not fit the context of a marital relationship.”
Where the spouses’ respective earning capacity or educational achievements are not comparable at the time of the divorce, there may well be equitable considerations appropriately invoking application of conventional doctrine. Thus, for example, where a wife has deferred her own further education or professional training by reason of the constraints of the marriage, whether or not one of those constraints has been the provision of support to her husband during his schooling, and if it is her post-divorce plan to enhance her own income capacity by pursuing educational objectives, an award of what has come to be known as rehabilitative alimony to enable her to do so would be appropriate, consistent with her husband’s immediate and projected financial ability. . . . Where that is not her plan or intention, alimony in its more conventional forms may be available to her, again dependent on the spouses’ respective financial situations.
Returning to the case at bar, we believe that the trial court’s award of alimony in gross in the amount of $169,000 was grossly excessive. For the reasons stated above, we believe that defendant is not entitled to any award specifically designed to compensate her for a portion of the "value” of plaintiff’s degree. Rather, we believe that the trial court may consider defendant’s assistance to plaintiff in determining an appropriate award of alimony. While plaintiff is not currently earning an income grossly in excess of defendant’s income, his degree certainly renders it more probable that his future income will increase relative to defendant’s future income, assuming defendant does not further her education. Absent the issue of plaintiff’s dentistry degree, we do not believe the factors to be considered in an award of alimony would justify an award to defendant in the case at bar.
We do believe, however, that defendant’s contributions to the family during plaintiffs education do merit some equitable consideration and could potentially justify an award to defendant in the form of alimony. Specifically, we believe that, if defendant wishes to pursue her education or take other similar steps to improve her employability or income earning potential, it is reasonable and equitable to require plaintiff to assist defendant in those endeavors. Under those circumstances, an award of rehabilitative alimony would be appropriate.
However, we must also recognize the possibility that defendant may not wish to further her education and, therefore, has no need for rehabilitative alimony. Under such circumstances, to equitably compensate her for her efforts and sacrifices while plaintiff pursued his degree, an award of periodic alimony for a limited duration would be in order. In determining such an award, however, the trial court must keep in mind that it is compensating defendant for her assistance to plaintiff while he pursued his degree. Thus, the so-called "value” of the degree or plaintiffs potential income to be earned from having the degree is irrelevant to the analysis. The trial court must focus solely on what is necessary to compensate defendant for the burdens on her or the sacrifices made by her so that plaintiff could pursue his degree.
Finally, it is necessary to consider the limited means of plaintiff to pay alimony at this time. The trial court must consider this in fashioning the award and, in exercising its discretion, may order a small amount over a longer period of time or reserve an alimony award until some time in the future when plaintiffs financial condition improves. Whatever the trial court does, however, should compensate defendant while not imposing an undue burden on plaintiff.
Accordingly, we vacate the alimony provisions of the divorce judgment. On remand, the trial court shall determine an appropriate alimony award in a manner consistent with this opinion.
Defendant also requests that we order an additional award of attorney fees. We have considered the issue and are unpersuaded that the trial court erred in its award of attorney fees and we decline to modify that portion of the judgment.
Finally, we note that the amount of child support awarded is somewhat modest. Although the parties do not challenge the child-support award, we note the possibility that the trial court may have ordered, a reduced amount in light of the large alimony-in-gross award. Accordingly, the trial court may wish to reconsider the child-support issue on remand.
Affirmed in part, reversed in part, and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction. No costs, neither party having prevailed in full.
Holbrook, Jr., P.J., concurs in the result only. | [
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Per Curiam.
Plaintiff appeals as of right from an order granting summary disposition in favor of defendants after plaintiff’s case in chief in a bench trial. The trial court’s order was apparently based on its finding that any agreement between the parties failed to meet the requirements of the statute of frauds, MCL 566.108; MSA 26.908. We affirm.
This is an action for specific performance brought by plaintiff real estate developer against defendant real property owners after defendants refused to sell approximately five acres of land in Troy which they had owned for more than thirty years. Plaintiff contacted defendant Gustave Ernst in January, 1985, to discuss the possibility of Mr. Ernst selling the land. At that time, defendants kept business equipment stored on the property and their son and his family lived in the house located on the premises. Plaintiff’s initial offer of $145,000 was rejected. Over the next three months, the parties had further discussions, and plaintiff increased his offer to $200,000. Ernst discussed this price with his wife, and they agreed to accept it.
On April 29, 1985, the defendants and plaintiff and his wife met at defendants’ home. Plaintiff testified that his purpose in going to the home was to give defendants a deposit on their property and that he believed an agreement was reached at that time. Defendants characterized this meeting as further negotiations and denied that a final agreement was reached. At the meeting, plaintiff signed and gave Mr. Ernst a check for $5,000. On the back of the check he wrote:
Deposit for purchase of 4.80 acres at 340 E. Maple, Troy, Mich, inc’d-house, purchase price = $200,000.00 on L/C with eighty-five thousand dollars down. Balance on L/C.
Mr. Ernst gave plaintiff a tax receipt with the following inscription on the back:
Recieved [sic] check number 7931 for $5,000.00 for deposit tward [sic] down payment of $85,000.00. Balance of DP within 30 days, $80,000.00 /s/Gustav Ernst.
The only other term the parties discussed was time of possession. The matter was left unresolved as defendants wanted ninety days to move their equipment and son and plaintiff was only willing to allow sixty days.
Mrs. Ernst was present for most, if not all, of the meeting and was able to see and hear all that was occurring, but she did not sign either of the documents that were exchanged.
After the April meeting, Mr. Ernst instructed his attorney to prepare a formal document—the parties disagree as to whether this was to be a purchase agreement or a land contract—for signatures. Before the papers were drafted and before defendants cashed plaintiff’s check, defendants received another offer of $360,000 for their property. Defendants’ attorney promptly called plaintiff and told him the deal was off. Alleging that a binding agreement already existed, plaintiff immediately filed suit seeking specific performance and damages. Defendants responded that no binding contract existed.
The statute of frauds, MCL 566.108; MSA 26.908, provides:
Every contract for . . . the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof be in writing, and signed by the party by whom the lease or sale is to be made, or by some person thereunto by him lawfully authorized in writing.
The trial court apparently determined that the requirements of the statute were not met and therefore there was no enforceable agreement between the parties.
i
All essential terms of an agreement to sell real estate must be in a writing that is signed by the party or parties to be held to the agreement for that agreement to be enforceable. Brotman v Roelofs, 70 Mich App 719; 246 NW2d 368 (1976), lv den 399 Mich 801 (1977). We conclude that the two documents comprising the writing in this case, i.e., plaintiff’s check and Mr. Ernst’s tax receipt, fail to set forth all the essential terms of the parties’ agreement. The writing therefore fails to satisfy the statute of frauds.
The Michigan statute of frauds does not specify what terms must be contained in a writing to make it enforceable. Although Michigan courts were once strict in their enforcement of the statute, see, e.g., Gedvick v Hill, 333 Mich 689, 695; 53 NW2d 583 (1952), that approach has since been abandoned in favor of a more liberal application of the statute. See Opdyke Investment Co v Norris Grain Co, 413 Mich 354, 367; 320 NW2d 836 (1982). Under this new liberal approach, the material terms which must be established before an agreement becomes enforceable are generally the identification of the parties, the property, and the consideration. Brotman v Roelofs, supra. When other terms, such as the time for performance or payment, are missing, courts will presume reasonable terms unless the parties express a contrary intention. Klymyshyn v Szarek, 29 Mich App 638, 642; 185 NW2d 820 (1971); Opdyke, supra, p 368.
However, where the parties indicate in writing that they intend a credit sale but fail to set forth the terms and times of payments, a court’s ability to impose reasonable terms is absent and such a contract has been found unenforceable. In Tucson v Farrington, 396 Mich 169; 240 NW2d 464 (1976), reh den 396 Mich 992 (1976), the writing provided for the sale of real estate "for the sum of . . . $50,000. Approximately one third down, the balance to be paid over a period of 10 years at 7% interest.” Id., p 171. Recognizing that a term of credit is an essential term of a real estate sales contract, that Court wrote:
Early Michigan case law required that payment terms be specified even in a case where it was conceded by all concerned that payment of the balance of the purchase price was to be made upon delivery of the deed. The rigors of the statute were gradually relaxed, so that in Michigan, like most jurisdictions, the writing did not need to state the time or terms of payment when the transaction appeared to be a cash sale.
Today, it may be safely said that a writing is not insufficient under the statute for failure to state the time and terms of payment unless, from the writing itself, it appears that deferred payments were agreed upon. . . . However . . . when the writing on its face evidences deferred payments, it must state with reasonable certainty the substance of the payment terms. [Id., pp 173-174.]
The writings in the present case lack the necessary terms of payment to satisfy the statute of frauds. Since the writings indicate that the parties intended a land contract, the terms of payment are essential under the principles set forth in Tucson, supra. These writings do not contain a designated payment period or interest rate. Generally, a contract for the sale of realty will not fail because it lacks a term so long as the court can determine with reasonable certainty the parties’ duties and the conditions under which performance is due. Here, however, there is simply no way for the court to determine duties and conditions of performance where the terms for deferred payments are omitted.
Plaintiff argues that the omission of any essential term is not fatal because there is extrinsic evidence available which supplements the writing and supplies the missing term. Tucson, supra, and Opdyke, supra. We cannot agree. There is no evidence that the parties discussed, let alone agreed to, any payment terms at the time that the writings were made. Plaintiff urges that the parties had agreed upon a mechanism—a determination by defendants’ attorney—to settle payment terms. However, essential to this "mechanism” argument is plaintiff’s willingness to concur in whatever terms defendants’ attorney set. Plaintiff’s assertion that he "would have agreed to any form of land contract that Ernst wanted” comes after the fact and is quite incredible when one considers that this "mechanism” would have al lowed defendants’ attorney total control over the length of the payment period, the number and size of the payments, and the interest rate. Plaintiffs argument that the court could have otherwise inferred reasonable terms is also unpersuasive since the omitted terms relate to deferred payments on a credit sale. The omission of these essential terms is fatal pursuant to the statute of frauds, and neither extrinsic evidence nor reasonable inferences by the court could cure that defect.
ii
Plaintiff contends that defendants admitted all facts necessary to establish the existence of a contract, and thereby waived their statute of frauds defense.
In Scholnick’s Importers-Clothiers, Inc v Lent, 130 Mich App 104, 109; 343 NW2d 249 (1983), lv den 419 Mich 936 (1984), citing Northern Ins Co of New York v B Elliott, Ltd, 117 Mich App 308, 325-326; 323 NW2d 683 (1982), lv den 417 Mich 968 (1983), this Court stated:
It is clearly possible for parties to make an enforceable contract which binds them to execute a subsequent written agreement. However, where agreement has been expressed on all the essential terms of the contract, the mere fact that the parties manifest an intention to prepare a written memorial of their agreement does not render the oral contract unenforceable merely because the writing is never prepared. On the other hand, if the written document is to contain any material term upon which agreement has not already been reached, there is no binding contract.
As discussed earlier, terms regarding payment were essential to the parties’ agreement. They not only failed to place these terms in writing, but they also never reached any oral agreement on these terms. Thus, even if we accept the proposition that a party who admits a contract is bound despite the statute of frauds, as plaintiff urges, the parties had no enforceable oral agreement. Reversal is unwarranted on this ground.
in
In light of our above holdings, we need not decide whether Mrs. Ernst’s failure to sign the tax receipt was violative of the statute of frauds, nor need we decide whether plaintiff is entitled to damages from Mr. Ernst for breach of contract. Finally, we need not reach defendants’ claim of unconscionability.
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Per Curiam.
Defendant appeals by leave granted from an opinion and order of the Workers’ Compensation Appeal Board granting plaintiff an open award of partial disability benefits commencing July 1, 1980. We affirm in part, reverse in part and remand.
Plaintiff, born May 17, 1919, began his employment with defendant in July, 1947. After a short time, he was placed on the "big shake-out” removing iron castings from molds. Plaintiff performed this job for six years, working forty-seven double shifts during that period. Sometime in the early 1950s, while working at the shake-out, plaintiff lost his balance and slipped, suffering a twisting injury to his middle and lower back. Plaintiff went to defendant’s first-aid station and was then taken to a chiropractor who told him he could return to work as long as he avoided lifting. Plaintiff returned to his job on the shake-out the following day and continued to work in that position, learning to lift with his legs instead of his back.
Fearful of further injury, in 1954 plaintiff successfully bid for a position on the paint line. The constant bending and heavy lifting involved in that job reaggravated his back injury. In 1969, plaintiff "bid down” to a job as a heat-treat oven repairman. In 1980, plaintiff made a successful bid for. a position as heat-treat operator, an even lighter position.
Plaintiff’s last day of work was June 30, 1980, when his union went on strike. On February 1, 1981, plaintiff elected early retirement due to the continued strike. On June 4, 1981, plaintiff filed a petition with the Bureau of Workers’ Disability Compensation alleging work-related injury or disablement dates of the early 1950s and June 30, 1980.
On June 8, 1982, at a hearing before a bureau hearing referee, plaintiff related the above-stated facts and presented the deposition testimony of Earl S. Rhind, M.D., in support of his claim. Defendant presented the testimony of plaintiffs former supervisor and foreman who both testified that plaintiff was a good worker with a satisfactory performance record. They stated that plaintiff was never given favored work while under their supervision and fully performed his duties which included a considerable amount of lifting and bending. Both stated that plaintiff had complained about his bad back but they considered his remarks to be merely jesting or typical employee complaints. The parties stipulated that in the 1950s plaintiffs average weekly wage was $500.40. As of June 30, 1980, his last day of work, plaintiff was earning an average weekly wage of $336.40.
The hearing referee entered a decision that plaintiff was not entitled to workers’ disability compensation benefits. Plaintiff appealed to the wcab, contending that the hearing referee’s decision was contrary to law and contrary to fact. The wcab reversed the hearing referee’s decision and entered an open award for partial disability benefits as of July 1, 1980, under MCL 418.361(1); MSA 17.237(361X1).
Defendant first argues that the wcab’s award to plaintiff was based on factual findings unsupported by the record. Findings of fact by the wcab are conclusive in the absence of fraud if there is competent evidence in the record which supports them. Const 1963, art 6, § 28; MCL 418.861; MSA 17.237(861); Burns v General Motors Corp, 151 Mich App 520, 528; 391 NW2d 396 (1986).
Defendant challenges several specific factual findings in the wcab’s opinion. We have reviewed each of the claimed errors and, with one exception, conclude that there is competent record evidence to support them. The record adequately supports the finding that plaintiff’s back injury was aggravated or worsened during the time he worked on the paint line and that plaintiff’s employment caused his back condition. Further, although the reason defendant gives for plaintiff’s wage differential between the 1950s and 1980 is logical, the evidence in the record is consistent with the wcab’s explanation.
We agree with defendant, however, that the record is devoid of evidence to support (or refute) the wcab’s finding that plaintiff was not a voluntary participant in the union strike against defendant. The sole evidence concerning the strike was plaintiff’s testimony that his last day of work was the day the strike began and that he would have worked until age seventy had the strike not occurred. There was no evidence that plaintiff voted against the strike, declined an offer to work during the strike, declined strike benefits, or in any manner opposed the strike. Certainly, an intention to work nine more years cannot be equated with strike opposition, as presumably all strikers Want to return to work upon settlement. The standard by which this Court reviews the findings of the wcab is extremely narrow. However, we must agree with defendant that there was no competent evidence to support the board’s finding that plaintiff was an involuntary participant in his union’s strike against defendant.
Because there was no competent evidence that plaintiff was an involuntary striker, we must also agree with defendant that the wcab erred in concluding that plaintiff was entitled to benefits during the time he was off work due to the strike. In Pigue v General Motors Corp, 317 Mich 311; 26 NW2d 900 (1947), the Supreme Court held that where a worker was able to perform work, but declined to do so because of his union’s strike, the worker was not entitled to benefits during the strike period. The holding of Pigue is clearly controlling in this case. Because the record is devoid of evidence that plaintiff involuntarily participated in the strike, we reverse that portion of the board’s order granting plaintiff benefits for the duration of the strike.
A related consideration is our disagreement with the board’s legal conclusion that plaintiff’s employment on his last day of work constituted favored work. "Favored work” is used to describe work offered by the employer to a disabled employee which accommodates the employee’s limitations. Hartsell v Richmond Lumber Co, 154 Mich App 523, 532; 398 NW2d 456 (1986), lv den 426 Mich 886 (1986); Stallworth v Chrysler Corp, 144 Mich App 706, 709; 375 NW2d 797 (1985), lv den 424 Mich 857 (1985). The determination of whether a plaintiff’s post-injury employment is favored work is a question of fact. An affirmative determination by the wcab on this question conclusively establishes disability. Powell v Casco Nelmor Corp, 406 Mich 332, 348; 279 NW2d 769 (1979).
Here, the wcab concluded that favored work can be self-imposed by the worker and that, by bidding down, plaintiff unilaterally entered into favored work. We disagree. Were this true, under Powell, supra, a worker could virtually assure a disability determination simply by bidding down following any injury. The favored-work doctrine should not be distorted to allow this result.
In Stallworth, supra, the plaintiff returned to his employment with the defendant after suffering a work-related injury, but was unable to perform his old job. The defendant terminated the plaintiff’s workers’ disability compensation benefits and gave the plaintiff an indefinite layoff. The plaintiff subsequently secured other employment, but was fired. The wcab determined that the plaintiff’s second job was favored work that did not establish a post-injury wage-earning capacity. This Court held that the wcab erred as a matter of law by holding that the plaintiff’s post-injury employment was favored work. Because the wages from the second job were not from favored work, those wages were relevant as to wage-earning capacity. Accordingly, this Court remanded the case to the wcab for a determination of the plaintiff’s wage-earning capacity. Id., pp 710-711.
Although the facts of the present case are distinguishable from those in Stallworth, the rationale of that case is applicable to the present case. It is clear from plaintiff’s testimony that the changes in his jobs over the years were made, not as a result of defendant’s offering work within plaintiff’s post-injury capacity, but solely through the seniority-based procedure of bidding through the union. While plaintiff’s bid for less strenuous work may well have been motivated by his back condition, there is absolutely no indication on the record that plaintiff’s condition motivated defendant to place him in lighter work that constituted favored work in mitigation of disability compensation liability. Consistent with Stallworth, we remand to the wcab for a determination of plaintiff’s wage-earning capacity.
We find one additional error of law by the wcab pertinent to its award of benefits to plaintiff. We conclude that the wcab erred in concluding that plaintiffs last day of work was the date of his injury under MCL 418.301; MSA 17.237(301).
MCL 418.301(1); MSA 17.237(301X1) provides:
An employee, who receives a personal injury arising out of and in the course of employment by an employer who is subject to this act at the time of the injury, shall be paid compensation as provided in this act. In the case of death resulting from the personal injury to the employee, compensation shall be paid to the employee’s dependents as provided in this act. Time of injury or date of injury as used in this act in the case of a disease or in the case of an injury not attributable to a single event shall be the last day of work in the employment in which the employee was last subjected to the conditions that resulted in the employee's disability or death. [Emphasis added.]
Defendant contends that the wcab erred, as a matter of law, in its determination of the date of plaintiffs injury or disability. The wcab found:
This case is clearly within the terms of Section 301(1), because plaintiff, first injured in the 1950’s, was injured again in 1969, and thus the mandate of the statute that we find a finding of an injury date as of the last day worked. We are unable to say that his injury "was attributable to a single event.” Clearly it was not. First injured in the 1950’s, plaintiff had recurrent back pain off and on, until major trouble in 1969 forced him to take what we find to be favored work. Thus, his date of injury is June 30, 1980.
The date of plaintiffs injury and resultant disability are a question of fact. Therefore, the wcab’s finding of June 30, 1980, as plaintiffs date of injury must be affirmed unless there is no supporting evidence on the record or it was based on the wrong legal framework or erroneous legal reasoning. Coleman v General Motors Corp, 166 Mich App 784, 789-791; 421 NW2d 295 (1988).
Here, the record supports the wcab’s finding that plaintiff suffered an injury in the 1950s that was aggravated in 1969. However, the wcab’s finding ignores the latter part of §301(1) which speaks of the last day of work in which the employee was last subjected to the conditions that resulted in his disability. Plaintiff’s testimony showed that after 1969, when he bid off the paint line, plaintiff held positions that he could perform without further aggravation of his condition. If plaintiff’s employment after 1969 did not contribute to or aggravate his condition, his last day of work was not the date of his injury or disability under the statute.
The wcab, as trier of fact, is charged with making a clear and unequivocal finding concerning the date of plaintiff’s injury and resultant disability. In order to make a correct finding concerning the date of plaintiff’s disabling injury, the wcab must first determine when plaintiff reached the stage of being disabled as defined by the Workers’ Disability Compensation Act. Gibbs v Keebler Co, 56 Mich App 690; 224 NW2d 698 (1974); Reames v Continental Can Co, 111 Mich App 188; 314 NW2d 475 (1981). Accordingly, this issue must also be redetermined on remand.
Defendant’s remaining claims require little discussion. Defendant did not raise the issue of the retiree presumption of MCL 418.373; MSA 17.237(373) before the appeal board. We therefore decline review. See, e.g., Attorney General v Blue Cross & Blue Shield of Michigan, 168 Mich App 372, 383; 424 NW2d 54 (1988). Defendant’s contention, that it was denied due process and equal protection of the law when plaintiff’s appeal to the wcab was decided by a two-member panel of pub- lie representatives, was recently resolved against defendant in Williams v Hofley Mfg Co, 430 Mich 603; 424 NW2d 278 (1988), as defendant conceded at oral argument.
Affirmed in part, reversed in part and remanded. We do not retain jurisdiction. | [
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Per Curiam.
Following a jury trial, defendant was convicted of first-degree criminal sexual conduct, MCL 750.520b(l)(b); MSA 28.788(2)(l)(b), and was sentenced to a prison term of from five to fifteen years. Defendant appeals as of right and we affirm.
Defendant first argues that the trial court committed error mandating reversal by admitting into evidence complainant’s testimony regarding subsequent acts of sexual abuse committed by defendant upon her. Defendant contends that the Jenness-DerMartzex [People v Jenness, 5 Mich 305 (1858); People v DerMartzex, 390 Mich 410; 213 NW2d 97 (1973)] exception did not survive the adoption of the Michigan Rules of Evidence. Defendant alternatively contends that, if the exception did sur vive, the trial court erred by extending it to evidence of alleged subsequent acts of sexual abuse.
The fourteen-year-old complainant testified at trial that in November, 1986, defendant, her stepfather, forced her to have anal sex in the basement of their house. Defendant ordered complainant to pull her pants down and to bend over a step ladder. Defendant then inserted his penis in her rectum.
Complainant then testified over defendant’s objection that on two occasions after that, in February, 1987, defendant took her to a motel and forced her to engage in sexual intercourse with him. On both occasions, defendant penetrated complainant’s vagina with his penis.
Defendant was charged with and convicted of the November, 1986, incident.
The admissibility of evidence rests within the sound discretion of the trial court and the exercise of that discretion will not be overturned on appeal unless there has been a clear abuse of that discretion. People v Johnson, 174 Mich App 108, 112; 435 NW2d 465 (1989). We hold that the trial court did not abuse its discretion by admitting into evidence complainant’s testimony regarding acts of sexual abuse committed by defendant upon her that occurred subsequent to the act for which defendant was charged.
The Jenness-DerMartzex exception survived the adoption of the Michigan Rules of Evidence. This Court has utilized the exception in cases decided after the rules of evidence took effect. See People v Skinner, 153 Mich App 815, 823; 396 NW2d 548 (1986); People v Garvie, 148 Mich App 444, 450; 384 NW2d 796 (1986), lv den 426 Mich 851 (1986). Furthermore, we note that the Supreme Court in People v Jones, 417 Mich 285; 335 NW2d 465 (1983), declined to extend the Jenness-DerMartzex exception to evidence of prior sexual acts between the defendant and persons other than complainant. We have no doubt about the continued vitality of the exception.
We do not believe that the trial court erred by admitting into evidence complainant’s testimony regarding subsequent acts of sexual abuse committed by defendant. The rationale behind the Jenness-DerMartzex exception is that prior sexual acts between the defendant and the victim are a part of the principal transaction necessary to weigh the victim’s testimony regarding the principal transaction. DerMartzex, supra, pp 413-415. The admission of the subsequent-act testimony in this case was consistent with that rationale. In the Jenness and DerMartzex cases, it was the incredibility inherent in a seemingly isolated act of sexual misconduct within a household that prompted the courts to admit the evidence of prior misconduct. The same is true of subsequent acts because they are part of the pattern of abuse. The offense charged need not always be based on the last incident of sexual misconduct. When, as here, it is not, the victim’s credibility is still subject to being undermined by the isolated appearance of the charged offense. Although the subsequent acts of sexual abuse occurred away from home, it was the stepfather-stepdaughter relationship that gave defendant the authority and opportunity to take complainant out of the house to avoid discovery. Therefore, the trial court properly applied Der-Martzex in admitting complainant’s testimony concerning the subsequent acts of misconduct..
Defendant also argues that he was denied a fair trial and his right to confront witnesses due to the prosecutor’s improper injection of facts not in evidence into his closing argument. We disagree. Defendant raised a timely objection to the chai lenged remark, which was sustained by the trial court. The jury was instructed to disregard the challenged remark. At the close of trial, the jury was instructed on the proper consideration to be afforded the closing arguments of the attorneys. Under these circumstances, defendant was not denied a fair trial or his right to cross examine witnesses against him.
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