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Campbell, C. J*.
Plaintiff as mortgagee and as purchaser on a chancery foreclosure under his mortgage brought this action to recover a planing machine which was mortgaged as a chattel during the foreclosure of his real estate security and taken away under the chattel mortgage. The whole controversy turns on whether the machine was part of the realty..
On the 23d of February, 1875, plaintiff lent Reuben Wheeler $2,500, payable in two years with interest, and took as security a mortgage which describes by metes and bounds a parcel of land on the canal in Grand Rapids sixty by one hundred and twenty feet in size, “together with the hereditaments and appurtenances thereunto belonging,” etc. This mortgage being unpaid was foreclosed in the United States circuit court and the property was bid' in by plaintiff at $1,000, leaving a balance • due of $2,250. ■ On the 14th of February, 1878, a writ of assistance was issued under which he was put in possession the next day, the machine being then in a building on the premises as hereafter explained.
When this mortgage was made there was a shop on the land which was a part of the realty, the lower floor of which was used principally for planing lumber for general custom work, and had been so used for about seven years before, and was well adapted to that business. The upper floor was used as a sash, door and blind factory. About June 1, 1872, Beuben Wheeler purchased and put in the building, on the lower floor, a large planing machine weighing about three tons, to replace a smaller one that was taken out and sold. This planer was fastened to the floor at each end with cleats, and had two bolts from a part called the hanger through the floor and was fastened to sticks under the joists by nuts and screws. It was connected with the line shaft by belts. It was taken into the room through the door. It continued in use until removed.
When the mortgage was given, plaintiff went through the building and saw the planer, and Beuben Wheeler said he was giving security for four or five times the amount of the loan. Beuben estimated the realty at $9,000 or $10,000 exclusive of personalty, and others at $5,000 at the time of trial.
October 30, 1877, Beuben Wheeler gave defendant a chattel mortgage on the planing machine to secure an existing debt. Defendant knew of plaintiff’s mortgage. On the 4th of April, 1878, defendant took and removed the planer.
These facts and no other facts material to this inquiry being found, the circuit judge held the property was a chattel, and did not belong to plaintiff.
There is no finding that the property was so annexed to the building or land as to be incapable of removal without injury to the realty. It is plain that it could be removed, as the planer originally in its place was removed, without damaging the building. No presump tion therefore could arise from the mere annexation, and the machine must be assumed to be personalty unless made realty by other circumstances.
It has been held by this court that there is no universal test whereby the character of what is claimed to be a fixture can be determined in the abstract. Neither the- mode of annexation nor the manner of use is in all cases conclusive. It must usually depend on the express or implied understanding of the parties concerned. Crippen v. Morrison, 13 Mich., 23; Adams v. Lee, 31 Mich., 440; McAuliffe v. Mann, 37 Mich., 539; Coleman v. Stearns Manf. Co., 38 Mich., 30; Jones v. Detroit Chair Company, 38 Mich., 92; Robertson v. Corset, 39 Mich.
The last named case involved similar property to this, but different from it in unity of ownership. In the present case the whole property when plaintiff took his mortgage was in the same hands.
But the mortgage describes the whole property merely as so much land, without mentioning any buildings, or referring to its uses. It does not appear that the building is any better adapted to use for a planing mill than for any other purpose; and a portion of it is used for other purposes. No representation is found to have been made whereby plaintiff was induced to rely on the security of the planer. It had already been found desirable to substitute one machine for another.
While we are not prepared to say such a machine may not acquire the character of realty, we think the present finding does not lead to any necessary conclusion that it had become a part of the building, so as to pass under the land mortgage. The presumption, in the absence of any such finding, is that it remained a chattel.
We think the judge below committed no error in so holding. The judgment must be affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
The cause of action was one coming within the class of cases which ■ may be commenced by capias, and where an arrest 'Is therefore lawful. This being so, it was within the discretion of the court to determine whether relief should be granted against the order holding defendant to bail. A very strong case should be made for such relief after special bail has been perfected, but the whole matter rests with the court below. | [
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Campbell, C. J.
Frank is a hotel keeper in Detroit who had a board bill against one Jacobson, a traveling agent for A. C. Mather & Co. of Chicago, and held a trunk of- goods to secure his lien. Edwards under authority' from Mather & Co. went to Frank’s hotel and desired to obtain the trunk, on which Frank had and claimed -no other lien. Having finally agreed on its amount, Edwards paid and Frank accepted it. The trunk was thereupon moved forward into the front part of the hotel and turned over to Edwards, who received the key at the same time from Jacobson, and who left it until the contents could be examined to ascertain whether anything was missing. During the same day Frank sent the trunk to the express office. The case does ■ not show for what purpose it was sent there or where it was to be sent. Edwards warned the express agent not to ship it, and went to see Frank, who promised to have it returned, but the shipment had already taken place.
The court below excluded evidence of a written order from Mather & Co. on Jacobson to deliver him the trunk and samples in his possession, and held that Edwards had no right of action, and could not maintain trover for the conversion.
We think the court erred in so holding. Jacobson had acquiesced in the demand of Edwards, and had turned over the key of the trunk to him. Frank had accepted payment of his lien, and had also recognized the right of Edwards and put the trunk at his disposal. He was thenceforward no more than a bailee. There is no evidence in the record showing anything inconsistent with the original right of Edwards to demand and have the property, and no evidence that Mather & Co. had interfered, or that Frank had either forwarded or been requested to forward the trunk to them. So far as this record shows, no one but Edwards had any relations with Frank in the matter.
But Edwards, having advanced money to pay the landlord’s lien, had a right to retain it until reimbursed. Frank had become his bailee and could not lawfully deal with any one else without respecting that right. It was valid against Mather & Co. as' well as against others.
There can be no question of the power of a person having a present right of possession and a personal interest, to bring trover. Upon this we do not understand there is any room for discussion on the authorities. So far as this record shows, the act of Frank was an entirely unjustifiable disposal of the property of another person upon no pretext or excuse. If the case had shown it was sent to Mather & Co. with or without authority, he could not justify it against the right of Edwards, although possibly in that case, if he acted tinder ■ their orders, it might affect the damages. We have referred to this hypothesis because it is suggested in the argument. There is nothing in the record to maintain it.
Judgment must be reversed with costs and a new trial granted.
The other Justices concurred. | [
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Marston, J.
In this case it was urged that John Thorborn and Mary Jane Irwin should' have been made parties defendant. We are of a contrary opinion. Neither one has any interest whatever in the matter in issue between these parties, both having heretofore conveyed all their interest in and to the premises in dispute, and the relief prayed for if granted can in no way affect them or either of them.
The principal object sought is to have it declared that the title which Chauncey Lott acquired from Mary J. Irwin, to the premises in question, he and his son Leonard G. as his grantee of a part thereof, hold in trust for complainant who was the equitable owner and in the possession thereof, and that they be required to convey to him. Neither of these persons who, it is said, should have been made parties, hold or claim any interest in opposition to the claim made or relief sought by complainant. The complainant claims title to the premises as grantee of Thorborn, who is interested if at all in seeing that the relief sought is obtained. Whatever question might be raised between Thorborn and his grantor on account of the mistake in the conveyance to which they were parties, in no way concerns these defendants who are not in a position in this case to raise any such question, as their rights, neither in the present controversy nor in any that might hereafter arise on account thereof, could in any way be affected thereby.
It is also claimed that the bill is multifarious in that it also asks that a certain tax-deed- obtained by said Chauncey Lott upon the lands in controversy should be declared void. The bill is filed by a person in possession, under the statute, to establish and quiet his title to the premises, and it matters not through how many different, sources, or under how many distinct and separate instruments defendants claim title thereto, all may be put in issue and disposed of in one case. The complainant cannot be required to file a separate bill to determine the validity of each separate claim of title made by the defendants. This would but create a multiplicity of suits, which is not favored in equity. If these defendants severally claimed title to separate and distinct parcels of this land from different sources, or if defendant Chauncey claimed title to the' south half under the deed from Mrs. Irwin, and Leonard G. the north half under the tax-deed, then they could not be joined as defendants in this action, but such is not the case here. Hunton v. Platt, 11 Mich., 264. Chauncey Lott, after he had secured the deed from Mary Jane Irwin, and after he had obtained the tax-deed, conveyed a part of the premises to his son, who it is alleged was not a Iona fide purchaser. Under such circumstances both may be joined as parties defendant.
The principal question in dispute is whether Chauncey Lott purchased in good faith and for a valuable consid eration these premises from Mary Jane Irwin, who was the sole heir-at-law of John McCarty deceased, who was the patentee of these lands from the United States.
McCarty obtained his title from the United States in 1856. The same year he sold the lands to John Thorborn, but in conveying the same they were described as being in range two west instead of four west. In 1859 Thor-born conveyed these lands by warranty deed, and in this and all the subsequent deeds of conveyance the lands were correctly described, and all of these deeds were duly recorded. After Chauncey Lott obtained his tax-deed, he ascertained from an examination of the record that McCarty had not conveyed the premises, and also learning that Mrs. Irwin was his sole heir-at-law, he called upon her for the purpose of obtaining a quitclaim deed, in order, as he claimed, to perfect his title. The premises at this time according to the lowest estimate were worth upwards of $1,000, and for the quitclaim he paid Mrs. Irwin $50. We need not discuss at length the evidence in regard to this transaction. We are satisfied that Mrs. Irwin clearly and distinctly informed him that she had no claim or interest in the premises, her father having long before sold, and as she believed, conveyed the same. She also refused at first to give him a quit-claim deed, because as she alleged, it might injure or wrong some one who might be in possession or claim to own the land, and it was only after defendant Chauncey Lott had given her to understand that he was then owner of the premises under the conveyance made by her father, which had been lost, that she consented to execute the quit-claim deed. The claim now made on the part of the defendants, that Chauncey Lott in his conversation with Mrs. Irwin claimed to be owner of the premises under and in virtue of his tax-deed, and that it was because of this tax-deed she consented to convey to him for a nominal consideration, we think is not true in fact. But few persons, we think, without farther inquiry or examination than was made in this case, would be willing to make such a sacrifice for any such reason. It has not been customary to consider a single tax-deed of so much value, and we should require more evidence than has been introduced in this case, to satisfy us that this was an exception. We have had occasion to discuss the bona fides of similar transactions recently, and a reference to those cases will render any further discussion upon this point unnecessary. Stetson v. Cook, 39 Mich., ; Battershall v. Stephens, 34 Mich., 69; Hanold v. Bacon, 36 Mich., 1.
There is no reasonable ground upon which it can be claimed that the defendant Leonard G. Lott is a bona fide purchaser of any part of these premises. The consideration said to have been agreed upon was only f 100, and we do not find that any part of it was ever paid, either in a settlement of account or otherwise. While the same strictness of dealing may not be looked for between father and son as would be between strangers, yet in a case surrounded like this by suspicious circumstances, it was incumbent upon defendants to show that the sale was made in good faith, and for a valuable consideration actually paid.
■It was not seriously disputed but that a portion of the taxes for which these lands were sold and for which the tax-deed was given were excessive and invalid. Under such circumstances the case comes within previous rulings, and the deed must be declared void.
The decree of the court below must be affirmed with costs.
The other Justices concurred. | [
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Graves, J.
The defendant appeals from a decree requiring her to release to complainant whatever right, title or interest, and no other, which she received through a deed to her from Pelick Stevens and wife, in and to the south half of the southwest quarter of section five in town two south of range ten west in Kalamazoo county.
The land was patented to one John W. Keene, September 10, 1838, and subsequently one Frederick Booker obtained several tax-titles to the lot, and then conveyed to one Seth Wheelock, who died testate, and holding under these tax-titles, in 1868. The defendant is one of his heirs-at-law, and her husband, Porter H. Whitford, and her mother, Christina Wheeloek, were made executor and executrix of the testator. In 1869 . Keene, the patentee, brought ejectment for the lot against the executor and executrix, and in March, 1872, final judgment in the circuit court passed against the plaintiff. September 6, 1872, Keene and wife conyeyed to Aaron Benedict, and the deed was recorded October 18th.
In January, 1874, Benedict conveyed to complainant, but this deed was not recorded, and in June following was destroyed. Between the time of that conveyance and the time when the instrument was destroyed, namely May 27, 1874, Benedict deeded to one John H. Blaney, and then in the month following and on the very occasion when complainant’s deed was destroyed, he made another to complainant in place of it. It will not escape notice that when he deeded to Blaney the first deed to complainant was merely unrecorded. It had not then been destroyed.
The deed from Benedict to Blaney was placed on record the day of its execution, and on the same day the latter deeded to Pelick Stevens, and this was recorded the next day, May 28th.
April 7th, 1875, Stevens deeded to defendant, and the deed was recorded the same day. The second deed from Benedict to complainant was not recorded until August 1, 1876.
The position that the bill should be dismissed because Benedict and Stevens are not parties is not tenable. The substance of the casé really alleged is that complainant being the holder of an unrecorded title, his grantor fraudulently deeded to another who placed such deed on record; that defendant claims under that deed as purchaser of whatever right and benefit it secured; and that neither the grantee named therein, nor his grantee, nor the defendant who received conveyance from the latter, purchased in good faith within the meaning of the statute (Comp. L., § 4231), and moreover that all had notice that controversy existed between complainant as. claimant of the title derived from the United States, and the estate of Wheelock as possessor of the tax-titles, and that Blaney and Stevens knew and defendant had notice that the deed from Benedict to Blaney was fraudulent.
For the purpose of the relief given by the decree no other parties are necessary, and the relief is quite compatible with the case stated. The important question is whether the evidence sustains the decree, and the conclusion reached after full examination, is that it does.
The equity is not that of specific performance, and that doctrine has no application. The essence of the right asserted is that defendant has obtained and holds a claim of paper title which she has no right to assert or retain against complainant, and that she must be considered as holding in trust for him and under an equitable duty to release to him on just terms. The principle is clear. Adams v. Bradley, 12 Mich., 346; Jones v. Smith, 22 Mich., 360.
The validity of the one title or the other in point of law is not regularly in question here, and is not strictly inquirable into except in a court of law. Whether the valid legal title now concurs with the succession of grants made under the patent or with the deeds on tax-sales is not a subject within the inherent jurisdiction of the court of chancery, and the determination of it ought not to be taken from a court of law in the absence of strong reasons. The effect of the decree must be to remove an obstacle in the way of a proper determination upon the legal title, — a kind of aid not obtainable elsewhere.
There are many things in the record we do not stop to mention. They have been inspected, however, and •are not considered of sufficient moment to be specifically noticed.
The decree should be affirmed with costs.
The other Justices concurred. | [
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Graves, J.
Dubois sued Hutchinson in replevin. The writ was directed to the sheriff of Ingham county, and one W. H. McEnally, a deputy, executed it. Hutchinson interposed a plea in abatement, to which Dubois demurred. The court overruled the demurrer and entered judgment that the writ should be quashed, and at a subsequent term awarded final judgment for Hutchinson in the sum of $567.39 as the value of' a special lien proved on an assessment under Comp. L., § 6754. Dubois sued out a writ of error.
The theory of the plea in abatement is that when the property was seized by the writ of replevin it was held by Hutchinson as the sheriff’s bailiff, he being a deputy, and was in construction of law in the sheriff’s possession, and that thereupon under the writ directed to the sheriff the same property was seized by another bailiff of the sheriff, and hence in law by the sheriff himself, and handed over to Dubois, and that under our statutes this was not lawful service.
The degree of particularity and certainty required in a plea of abatement is well known. “Every allegation necessary to make out the case covered by it must be distinctly and not inferentially set forth,” and it must exclude all matters which, if alleged on the other side, would defeat it. Belden v. Laing, 8 Mich., 500; 1 Chitty Pl. (16 Am. ed.), 462 et seq.; id., 482 et seq.; 2 Greenleaf’s Ev., tit. Abatement; Gould’s Pl., tit. Abatement.
According to the scheme of the plea it was necessary that it should contain sufficient facts distinctly set out to enable the court on reading it to say that if true Hutchinson’s holding was that of the sheriff, and further, to enable the court to direct what would be proper proceedings thereafter, and what kind of judgment final would be lawful. The structure of the plea was not, however, conformable to these requirements. No facts were stated to explain Hutchinson’s holding as an official one, and for the sheriff and in his right.
The plea merely asserts that Hutchinson had seized the property in his character of deputy sheriff and was holding it in the same character when taken on the writ by the other deputy. This is mere matter of conclusion by the pleader drawn from facts which the plea with holds, and the court is denied opportunity to judge for itself. If the facts were disclosed by the plea we might conclude that the seizure and custody of Hutchinson were both contrary to law.
This inference of the pleader is not admitted by the demurrer.
Considering the substantial office conceded to the plea in this case as leading to a particular judgment, its insufficiency seems manifest in other particulars. The judgment supposes that Hutchinson had a valid lien on the property and that the articles were taken out of his hands and delivered over to the plaintiff Dubois. The case shows there was a waiver of return and a judgment for a specific sum as the amount of Hutchinson’s lien. Still the plea neither states facts to show any lien nor facts to explain what became of the property on the seizure under the writ of replevin. There are no facts pleaded to enable the court to say as matter of law that the sheriff’s possession has been disturbed.
No further discussion is needed. The proceedings below were erroneous. The court should have sustained the demurrer and given judgment that the defendant answer over.
The interlocutory judgment and subsequent proceedings should be reversed with costs and the cause remanded for judgment of respondeat ouster on the demurrer, and such other proceedings as may be proper.
The other Justices concurred. | [
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Cooley, J.
Plaintiff in error is assignee of the copartnership of Wilson Bros., composed of George B: Wilson and Frank B. Wilson, recently doing business in Detroit. The assignment is a general assignment fór the benefit of creditors, and bears date January 18, 1878. Seymour, the defendant in error, is named in the assignment as one of the creditors of Wilson Bros., and this suit is replevin to recover the possession of certain goods purchased by them of him shortly previous to the assignment, and which he claims were -bought with knowledge'on their part of their insolvency, and with the intention not to make payment.
It was shown on the trial that Wilson Bros, com menced doing business in November, 1872, with a capital of $9,000. The inventories made by them at the begin* ning of each.year showed the following results: January 1, 1874, excess of assets over liabilities, $8,333; January 1, 1875, ditto, $13,824; January 1, 1876, ditto, $4,118; January 1, 1877, excess of liabilities over assets, $2,964; January 1, 1878, ditto, $10,541, of which assets $7,932 was. stock and fixtures, and $5,189 accounts. Previous to April 12, 1877, Calvin Graves, the grandfather of the brothers,, had loaned to them $8,000, all but $1,000 of which then remained unpaid. On that day they executed to him a. chattel mortgage of all their stock in trade, fixtures and furniture, which was made to cover “ also all other goods, chattels and personal property which may hereafter be added to or substituted for said stock of goods and personal property or any part thereof, or mingled therewith.” On the execution of this mortgage, Graves advanced to the mortgagors $2,000 more, making the debt to him $9,000, and the mortgage was conditioned for the payment of this sum with interest within one year, and also-of the further sum of $1,000, should Graves advance-that further sum to them as was then contemplated.. This mortgage was not filed with the city clerk until January 16, 1878. It was conceded on the trial that it was purposely kept from the files for two months lest it might be affected by the operation of the bankrupt law in case the co-partnership should become bankrupt, audit was claimed that the failure to file it earlier after the. expiration of the two months was due to an oversight, and was not intentional.
One Watson was the agent of defendant in error in making sale of the goods in controversy. He testified to being in Detroit December 13, 1877, with samples of' tobacco which he exhibited to George B. Wilson. He-also asked George B. Wilson whether the assets of the-firm exceeded their liabilities, and was told .in reply that they did. The next morning the firm ordered of him ten bales of tobacco of a particular sample, five bales to be shipped at once, and five bales about January 1, 1878. Watson testified that he would not have made this sale but for the representation of George B. Wilson respecting their pecuniary circumstances. Wilson’s evidence was given respecting these transactions, and the tendency of it was to show that what was said in reference to the assets of the firm was made in advance of any careful examination, and was a casual remark while the parties were walking together in the street. The ten bales of tobacco were ordered by Watson from his principal in New York by letter, and these were the goods replevied in this suit. One of the bales had been worked up before the assignment was made, and nine then remained on hand.
I. On the trial Watson was a witness for Seymour, and was allowed under objection to state that he learned of the assignment on the evening of January 18, 1878; that he saw George B. Wilson the next morning and asked him how he reconciled his failure with the statement of their affairs made by him some thirty days before; that Wilson did not respond to the inquiry, but made some remark about having lost a good deal of money in a series of years in failures. It is complained that by this evidence the admissions of the assignors made after they had parted with all control, were brought into the case to affect their assignee.
It is a little difficult to understand the object of plaintiff in insisting upon putting this evidence into the case, or how the defendant could suppose he was prejudiced by it. What Wilson said was no admission of fraud, and tended rather to present a valid excuse than to show dishonesty in his failure. Perhaps it would have been wiser for the judge to exclude this conversation, but we cannot consent that parties shall be put to the expense of another trial merely because the judge permitted the introduction of immaterial evidence where it is plain it could not have affected the issue. Comstock v. Smith, 20 Mich., 345; Continental Insurance Co. v. Horton, 28 Mich., 173. We sit here to correct substantial errors, not to rectify those which are harmless, and we cannot ignore the fact that the trial judge must dispose of questions of the admissibility of evidence under many embarrassments, and that these would be increased instead of diminished if in the court of review his decisions even on what prove to be immaterial matters should be subjected to nice and technical criticism. In this case we find no reason for a suggestion that his ruling harmed any one; and we dismiss it without further comment.
II. On the cross-examination of Watson it was shown that Seymour had sold Wilson Bros, goods in October, 1876, and taken notes therefor which had been extended from time to time; that Watson called upon them in May, duly and September, 1877, and offered to sell them goods, but they did not then buy of him. Defendant then put to the witness questions as to what was said by Wilson Bros, to him on these occasions; but the questions were overruled. It is claimed that this ruling was erroneous; that the answers might have tended to show that Watson did not rely upon what was said to him by George B. Wilson in December in making the sale to the firm at that time, but upon his general confidence in the firm arising from former dealings, offers to deal which were declined, etc. It is easy to suggest the possibility of something having been done or said at these former meetings that might have had some bearing on the present controversy, but the defendant at the trial made no distinct offer of evidence that would be important, and prima facie the statements made by Wilson were mere hearsay, and for that reason wholly inadmissible. If Watson then offered to sell to the firm on credit, the offer showed his confidence; if the Wilsons then declined to purchase, the fact was some evidence that at that time they had no purpose to defraud; but their statements then made to Watson are prima facie not admissible, because they could not have tended to throw light upon the conduct of either party in new dealings two months later.
III. Watson was permitted to testify under objection, that Seymour’s instructions to him, under which he made the sale in December, 1877, were to make special inquiries of Wilson Bros, and of others in Detroit before he sold them any goods, and if he was satisfied with the statements made and with the answers to his inquiries, then to sell them a bill of goods. It is said that this evidence was immaterial, because it appeared that Watson did not communicate to Seymour the result of his inquiries when transmitting the order for the ten bales of tobacco, or at any other time, and 'consequently Seymour could not have been influenced by them. But we think Seymour had a right to assume that Watson obeyed his instructions, and that the answers had proved satisfactory before he consented to transmit the order. The fact that Seymour sent goods in compliance with the order would not be evidence that Wilson Bros, made any representations whatever to Watson; but the representations are proved independently, and his sending the goods only shows that he assumed the existence of facts which the independent evidence establishes.
IY. December 28, 1877, Seymour addressed a letter to Wilson Bros, in which he stated to them that he had been informed that they had given to Mr. Bothschild, or the concern of which he was a member, a judgment for several thousand dollars, which had not been recorded, and inquiring in confidence if this was true. Two days later Wilson Bros, replied, expressing indignation at the report, protesting that it is hard to have to fight for their credit against unknown enemies, and declaring that they “ can truly say that neither Sigmund [Bothschild] or his firm, or any one belonging to his firm ever had any judgment or mortgage against” them. The reception of these letters in evidence was objected to. The purpose in proving them was to show fraud. It is truly said that the letter of Wilson Bros, was strictly accurate in its statements, but the deduction that being accurate it could not tend to show fraud is one depending on subtleties with which courts and juries cannot trouble themselves. It is true that Eothsehild had no mortgage ; but Wilson Bros, must have known that the purpose of Seymour’s letter was not to ascertain the fact of a particular demand or encumbrance, but whether any existed which rendered his demand insecure. He named what had been told to him, and did not name any other because none other had been mentioned; but an honest man replying to his letter would have met its purpose by giving the information that though Eothsehild had no unrecorded judgment, Graves did have an unrecorded mortgage, which covered their whole stock, and which, as they must then have known, rendered them wholly irresponsible. We think these letters were very important, and it would have been singular indeed if the jury could have reconciled the letter of Wilson Bros, with commercial integrity.
V. Plaintiff was permitted to prove by one Giddings that in October, 1877, he sold a bill of goods to Wilson Bros, in reliance upon representations made by George B. Wilson that the firm could pay two dollars for every dollar they owed, and that the bill still remained unpaid. As no such representations could truthfully have been made at that time, the natural inference would be that the purchase from Giddings was fraudulent, and this might strengthen the inferences of fraud deducible from the transactions with Watson in December. It is said that the transaction with Giddings was too remote to have any legitimate bearing. It was remote in point of time some two months, but if the sale was made on the same credit which was given by Seymour, the bill would not have fallen due when the assignment was made. As the time -of credit is not mentioned by Giddings, it is perhaps reasonable to assume that the sale was on what Watson at one place in his evidence speaks of as the “usual terms,” namely, at four months. The posi tion of- the case would then be this: Wilson Bros., being largely insolvent, and having previously given a mortgage to their grandfather upon their stock and fixtures to more than their present value, make an assignment for the nominal benefit of creditors. Within the preceding three months they had made purchases on untrue statements respecting their circumstances and upon a credit which had not expired when the assignment was made. Is not the inference a forcible one that these purchases were made in pursuance of a general purpose to defraud their creditors for the benefit of the security to their relative, and can any transaction be too remote which is accomplished within the period of credit, and by means of the same representations which effected the others?
That evidence of transactions about the same time as the one in controversy is admissible, is not disputed; Rowley v. Bigelow, 12 Pick., 307; Hall v. Naylor, 18 N. Y., 588; and this does not mean that they shall have occurred on the same day or within the same week. The nature of the transaction must have much to do with the' question of time, and it cannot be said as matter of law that one month or two months is too remote. In a case like the present it is obvious that the time of credit would be a most important circumstance in its bearing upon the question of a common purpose in the purchases; and we think the court did not err in deciding to receive the evidence. It is true that if the bill was not yet due, no inference of fraud, could be drawn from the mere fact of its remaining unpaid; but there was no error in suffering the witness to state that the purchase price of goods purchased by means of a falsehood was still owing.
YI. The plaintiff in the court below made much use of the fact that the chattel mortgage to Graves was kept off the files until two days before the assignment was made. BLe did not dispute that Graves had let Wilson Bros, have moneys to the amount specified in the mortgage, but his theory of the case was that the moneys were a gift to the grandsons, and that the mortgage was taken and kept on foot secretly, and only as a means of protecting the firm against the demands of creditors. To strengthen this theory he gave evidence that after the assignment Graves foreclosed his mortgage, bought in the property, and at once turned it over to Wilson Bros, who went on in business as “Wilson Bros., agents” The theory of the defense was that Graves took and held the mortgage in good faith, but did not intend to enforce it so long as Wilson Bros, appeared to be doing a successful business, and that his grandsons expected he would never enforce it, though he had a legal right to do so at any time. On this theory the defense explain some of the representations of Wilson Bros, respecting their circumstances, which might be true if the mortgage to Graves had not been a liability against them, but would have been false if it was. This may have been a theory satisfactory to the consciences of these young men, but it cannot satisfy the demands of the law. Graves, though he may have advanced to his grandsons all the moneys mentioned in his mortgage, had no moral right to hold the unrecorded security as a means of protecting the mortgagors against demands which were being contracted in ignorance of its existence, and in favor of creditors whose equities would be greater than his, because their demands would accrue without knowledge of a claim which he, in good faith to them, ought to have put upon record, and in reliance upon deceptive appearances which he assisted the debtors to hold out to the world.
The question of the bona fides of the mortgage to Graves was fairly in issue on the trial, notwithstanding its consideration was not disputed, and the court was right in permitting the time of filing to be proved, as well as the use afterwards made of it. No error was committed on this part of the case of which the defendant had any just cause of complaint. If the jury had inferred from all the evidence that the Graves mortgage was taken and kept on foot for the benefit of the mort gagors themselves, the inference would scarcely have done the parties any injustice under the facts as they are made to appear by their own evidence.
"VII. The main question discussed in the case was whether a purchase made when the purchaser knows he is insolvent, and with the preconceived purpose not to pay, is void, even though there may not have been, at the time of the purchase, any fraudulent representations. We are referred by plaintiff in error to Pennsylvania decisions which negative the proposition. Smith v. Smith, 21 Penn. St., 367; Backentoss v. Speicher, 31 Penn. St., 324. But there is an overwhelming weight of authority the other way. Donaldson v. Farwell, 93 U. S., 631; Powell v. Bradlee, 9 Gill & J., 220; Thompson v. Rose, 16 Conn., 71; Ayres v. French, 41 Conn., 142; Nichols v. Michael, 23 N. Y., 264; Hennequin v. Naylor, 24 N. Y., 139; Devoe v. Brandt, 53 N. Y., 462; Wright v. Brown, 67 N. Y., 1; Dow v. Sanborn, 3 Allen, 181; Holbrook v. Connor, 60 Me., 578; Bishop v. Small, 63 Me., 12; Stewart v. Emerson, 52 N. H., 301; Ferguson v. Carrington, 9 B. & C., 59; Ex parte Whittaker, L. R., 10 Ch. App., 446.
We think no injustice was done to plaintiff in error on the trial, and the judgment must be affirmed, with costs.
The other Justices concurred. | [
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Per Curiam.
So far as Mrs. Chilson is concerned, there is some difficulty in ascertaining from these affi davits whether she has or has not understanding^ authorized any of the proceedings. There is as much difficulty in finding authority for this motion as for the appeal. We do not see very clearly how she is affected by the order, but it will be easy to save her rights by future action, and we do not discover any ground for supposing her interests require a dismissal if an appeal lies at all.
Burlingame & Rogers for complainant.
Taggart é Wolcott for defendants.
Upon the motion to dismiss for want of- jurisdiction, it appears to us the order made is not so clearly one of discretion as to warrant a dismissal. There is certainly reason for arguing that on its face it injuriously affects interests not subject to such interference. We shall therefore reserve the point until the case can be heard on its merits.
Both motions are therefore denied, but without costs.
Bill for, partition of lands. Defendants James H. Merryhew and Sally Chilson appeal from an order appointing a receiver of real estate and personalty and directing him to take possession of the property. Submitted April 28. Decided April 24.
Cooley, J.
The- theory on which a receiver was appointed in this case is not very readily understood. The bill is nondescript; but while its apparent purpose seems to be something different, it is said in the brief -for complainant to be a bill .for partition of lands. Complainant’s interest in the land does not exceed one-eighth. The defendant James H. Merryhew was husband of Martha Merryhew, who in her lifetime owned an undivided two-thirds, and resided with him on the lands, and was raising crops thereon. The lands originally belonged to Ezra Chilson, who died the owner .thereof, leaving, his mother, Sally Chilson, and a sister and half sister, Mary Johnson and Martha Merryhew, surviving him. The mother conveyed to Martha Merry-hew. Complainant is one of eight children of Mary Johnson, now deceased, and her rights come by descent from her mother, and from Mrs. Merryhew, who died without issue. What other interests, if any, there are in the land, it is not important to inquire.
The estate of Ezra Chilson has never been administered upon, and complainant alleges in her bill that when he died he was owner of certain personal property on the land, and that “the said personal property so left by said Ezra upon said farm as aforesaid has resulted in the personal property now upon said premises, and that the said personal property now on said farm has grown from or proceeded out of the said personal property so left by said Ezra Chilson.” The bill contains a prayer that the court take to itself administration of the estate of Ezra Chilson.
Sally Chilson resided with her daughter Martha at the time the latter deceased, and afterwards remained with defendant Merryhew on the land. Many things appear in the record which indicate that the real controversy between the parties relates to the custody of this woman, who is now very old and weak, and whose little property is a temptation to the litigants. Soon after the bill was filed, complainant applied to the circuit court for the appointment of a receiver of the lands and personalty, and an order appointing one was made which is given in the margin.
' It will be seen that this order ejects the defendant Merryhew from the premises. There is no doubt whatever that bis possession at that time'was rightful, and he then had growing crops on the land which he had a right to care for and remove when they should be ripened. He also claimed to have made expensive improvements on the estate for which he made equitable demand for compensation. Whether he had a valid claim of this sort it is immaterial now to consider, but bis summary ejection under the eireumstaneés, at the demand of one of the numerous heirs, and without the slightest showing of necessity, so far as the respective interests in the land are concerned, cannot he justified on any principle.
Still less can the order be justified that tools the personal property from Merryhew and delivered it over to the receiver. Merryhew in his answer to the application for a receiver averred under oath that “a large part of the personal property now on said premises” “is the individual property of deponent, it having been purchased by him with his own money.” This was certainly a sufficient answer to the very vague claim to the personal property set up on behalf of Ezra Chilson’s estate in the bill. But what right can the court have in this summary manner to dispossess a claimant of property which undisputedly had for a long time been in his rightful possession? If such an order can lawfully be made, no one is safe in the possession of any thing which another sees fit to claim by suit in equity. The principle is at least as old as Magna Charta that a man shall have a trial of his right before dispossession; and we cannot sanction any departure from it that shall leave every one to the mercy of a special and summary proceeding on which an inquiry into the facts must always be imperfect and generally one-sided. We have had occasion to point out the illegality of such proceedings in other cases to which we refer. Salling v. Johnson, 25 Mich., 489; People v. Judge of St. Clair Circuit, 31 Mich., 456; People v. Jones, 33 Mich., 303.
The order must be set aside as wholly unwarranted, with costs of this court and of the application in the court below.
The other Justices concurred.
State of Michigan. The Circuit Court for the County of Kent.— In Chancery.
At a session of said Court, held at the Court house, in the city of Grand Bapids, in said county, on Saturday, the 1st day of March, A. D. one thousand eight hundred and seventy-nine.
Present, Hon. Bibmey Hoyt, Circuit Judge.
Mary M. McCombs, Complainant vs. James H. Merryhew, Latham Averill, Spencer Johnson, Lydia Colwell, Seth Johnson, Buth Banker, Corydon Johnson, Huida Spafford, Pierce Johnson, Honry Wolcott and Sally Chilson, Defendants.
This cause being before the court upon an order to show cause duly made herein, on the 12th day of February, A. D. 1879, and on reading the bill of complaint and affidavits filed on behalf of defendants Merryhew, Averill and Sally Chilson, and after hearing I). L. Bogers, solicitor for complainant and James A. Bogers, of counsel, and M. Taggart, counsel for defendants Merryhew, Averill and .Sally Chilson, and on due consideration thereof, it is ordered by the Court now hiqre, that the temporary injunction heretofore issued, be continued; and be and remain in force until the further order of this Court in the premises.
It is further ordered that Henry K. Crissman be and is hereby constituted and appointed receiver herein according to the prayer of said bill; and that said receiver be and is hereby authorized and directed to enter upon the premises described in bill as lot 3, and the northeast quarter of the northeast quarter of section twenty-five, .town eight north of range 11 west, Kent county, Michigan, and .take into his' custody and possession all of the personal property' thereon situated. That he make an inventory of the same, and cause the same to be duly appraised, and file such inventory aiid appraisement in this court in this cause, with all convenient speed.
And that said receiver is also hereby authorized and directed to enter upon and take actual and 'exclusive possession of said real •estate, except as to the defendant gaily Chilson, and that he make suitable provision for the care and maintenance of said Sally Chilson, Upon said premises. That before entering upon the duties of receiver, let said Henry K. Crissman give bond in the penal sum of two thousand dollars, with two sufficient sureties tó be approved by the register of this court.
Bikney Hoyt, Circuit Judge'. | [
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Marston, J.
Complainants and defendant are the owners in severalty of certain adjoining property in the village of Kalamazoo, upon which buildings have been erected, and in the rear of which there is, and has been since 1848, a private alley twenty feet wide.
More than twenty years previous to the time the bill was filed in this cause, a wooden building was erected between the rear of defendant’s building and this private way, which it is conceded encroached upon the alley some six inches.
In 1878 defendant desired to make some improvements upon this wooden building. He tore off the siding, and commenced the erection of a stone foundation thereunder, with the design of veneering the building with brick and building a stairway in the alley to the second story thereof. Complainants objected to the construction of the stairway which would have extended into the alley some four feet, and also objected to any encroachment whatever. The defendant desisted from building the stairway, but proceeded to veneer the wooden building with a four-inch wall, which would be an encroachment of three inches into the alley farther than the wooden building was before the siding thereon was taken off. Complainants thereupon filed their bill and obtained an injunction restraining defendant from completing the brick wall, then nearly finished. An answer was filed, proofs taken, and on the hearing a decree was granted, making the injunction perpetual, and commanding defendant to “remove the brick wall, foundation and roof covering the same, and every part and parcel thereof, which is situate and being on the private alley aforesaid.” After the injunction was served, work upon the brick wall was discontinued, and between it and the roof the building was boarded up for protection against storms, and the roof put on, but which did not progress farther than sufficient to cover the brick wall when completed.
It might admit of some question whether the decree was not broader than really intended. It would seem to require the removal of not alone the three-inch projection, but the entire wall, a portion of which had stood and encroached upon the alley for over twenty years, and had ripened into a right by adverse use. Under the recitals in the decree, perhaps no serious question would arise as to the extent thereof, but under our view of the case, this becomes a matter of no consequence. This building it appears stood within the fire limits, but whether the defendant was thereby prohibited from repairing it in any other way than by brick or stone does not appear.
Admitting that defendant is encroaching some three inches upon this private way, yet it would seem to have been commenced by him in entire good faith, in repairing a building which had long been standing. It is not claimed that such repairs were not necessary and in all other respects right, proper, and indeed beneficial to the property of defendant, and also the adjoining property of complainants. The injury to complainants was not that it was taking a portion of their private property, but that it was interfering with a right of way to which they were entitled of right. Nor is it claimed, nor could it well be, that this proposed encroachment seriously interfered with their right of way, or that it materially injured them in any way.
Their claim is that they are of right entitled to the full width of the alley, and that it cannot be taken from them by piece-meal this way.
It may admit of some doubt whether a party is ever entitled as matter of right to a remedy by injunction to restrain the commission of a threatened injury. If the injury is likely to be irreparable the court will interfere: so it will for other reasons, but it will examine into all the circumstances of the case, and if it is apparent that the relief sought is disproportioned to the nature and extent of the injury sustained, or likely to be, the court will not interfere but will leave the parties to seek some other remedy. Fox v. Holcomb, 32 Mich., 495; Briggs v. Withey, 24 Mich., 136; Norris v. Hill, 1 Mich., 210: White v. Forbes, Walk. Ch., 114.
Within this rule complainants clearly are not entitled to the relief sought as the case now stands, and they need not anticipate farther trouble in the same direction.
The decree must be reversed and the bill dismissed with costs.
The other Justices concurred. | [
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Bissell was committed for contempt in refusing to pay alimony. The order of committal was regular on its face and recited that the contempt was admitted. The petition was based chiefly upon denials of the fact.
Held that the Supreme Court cannot, on an application for a writ of habeas corpus, review a committal apparently regular; the petitioner should have appealed from the order. | [
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Campbell, C. J.
Delator having a claim against his father’s estate undertook to prove it before respondent acting in lieu of commissioners. The estate introduced a claim of set-off on which relator claims proofs were put in, while respondent in his return says there was no such proof. Despondent says that during the trial and before the final determination of the cause the set-off was withdrawn. The decision was announced June 8, 1877. The order was not entered in fact until July 31, 1877, when it was made in form disallowing both claim and set-off without costs to either party.
On the 23d of August, 1877, without notice to relator, respondent made a new order vacating so much of the former order as disallowed the set-off and gave no costs, on the expressed ground that the set-off was withdrawn before the disallowance.
Delator knew nothing of this until after the time for appeal had expired in December, 1877, when suit was brought on one of the set-off claims. A special appeal being denied by the circuit court, relator applied to the probate court to vacate the order of August 23d. This application was refused.
There seems to have been some misapprehension concerning several things in this controversy. Until July 81, 1877, there was no valid order in existence. No judgment can exist until it is put in form by the court. Having been entered it for the first time became appeal-able. If the court had power to change it in any material way, it could not be done without giving the aggrieved party an opportunity of being heard. He had no desire to appeal from the order as originally made. But the effect of the new order was to deprive him of the benefit of a judgment in his favor, and from that time on, the old judgment and the new would have constituted together the judgment for the first time entered on the merits, on which justice demanded that he should have a full right of appeal, so as to open the whole controversy for rehearing in the circuit court. No new judgment could lawfully be entered in the probate court which would not have the effect of a judgment .on rehearing. The course taken cut off substantial rights, and was unlawful.
But another question arises which requires some notice. The statute evidently contemplates that in all cases where it is practicable, the representative of the estate shall exhibit such claims of set-off as exist against the demand of a creditor, so that the final determination shall show the balance due either party after deducting one claim from the other. Comp. L., § 4428. This is not intended to be left to the discretion of the executor or administrator; and while we are not required to determine the effect of such omission in all cases, we have no doubt the law was passed to secure this action in cases where there is no reason to the contrary. It is essential to the interests of creditors and distributees that the estate shall be closed as quickly and cheaply as possible, and that the amount of assets shall be early liquidated and collected. If the estate may avoid putting in set-offs, the creditor who is at the same time a debtor may also prefer to have his own claim passed on in a suit at law, and thus greatly postpone a settlement. Comp. L., § 4436.
'We think it would be going too far to hold that when a set-off has once been asserted on a hearing of claims before commissioners, or before tbe judge of probate, it can then be withdrawn, so as to give the representatives a chance to litigate in a different forum from that which passes on the claim against the estate.
Under these circumstances we think justice demands that this controversy be regarded as not having been legally or properly determined, and that the court of probate should be required to vacate the whole order as amended, and try the facts over again, including the set-off as well as relator’s demand.
A mandamus will issue accordingly.
The other Justices concurred. | [
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Champun, J.
Mechanic street is one of the principal streets in the city of Jackson, running from the center of the city to the State’s Prison. The railroad belonging to defendant company crosses Mechanic street on a bridge some fifteen feet above the highway. The railroads of the Jackson, Lansing & Saginaw Railroad Company cross Mechanic street, on a level therewith, about fifty feet north of defend, ant’s road. This road is also used by the Grand River Yalley Railroad Company. The Jackson, Lansing & Saginaw and the Grand River Yalley Railroad Companies’ roads are under the control of and operated by defendant. Clinton street runs west from Mechanic street and intersects it just south of the railroad bridge. The defendant has for several years employed a flag-man who was stationed at the intersection of the Jackson, Lansing & Saginaw Railroad with Mechanic street, whose duty it was to prevent, so far as he could do so, accidents at the crossing of the Jackson, Lansing & Saginaw railroad with Mechanic street. He had received no instructions relative to performing any duty with reference to the passing of trains upon the Michigan Central Railroad, but he had, on his own responsibility, assumed to warn travelers with vehicles upon Mechanic street of the approach of trains on the defendant’s road, which would pass over the bridge in question. The diagram will indicate the position of the streets and roads referred to:
On the 21st of November, 1881, the plaintiff and her sister were passing along Mechanic street in a buggy drawn by a single horse. They approached the railroad bridge from the south, and when within about ten rods from the bridge, they saw the flag-man stationed at the crossing making signals for them to stop. They were about to do so, when he again signaled them to go forward, which they did, and had nearly reached the bridge when a passenger train from the west passed over the bridge in front of and nearly over them. She turned her horse to the west, when he threw up his head, gave a spring to the west, and threw her out. She was driving the horse at the time of the accident. When she fell from the buggy she dropped the lines, and the horse started to run on Clinton street, but was stopped in a short distance by her sister who remained in the buggy and recovered the lines. The plaintiff was seriously injured.
The plaintiff in her declaration alleges that it was necessary, and the duty of the defendant, to have and keep, and the defendant then and there kept, a flag-man at the place where said railroads cross said streets, whose duty it was then and there to warn persons passing along said street with teams and vehicles, of the approach of trains of cars upon said railroads, and to prevent teams and vehicles from passing underneath the track of said Michigan Central Nailroad when trains were passing along the same and over said street; that plaintiff understood from the acts and motions of the flagman that she could pass said railroad tracks safely before said train of cars would arrive at said street, and she then drove forward; and when she had reached a point nearly under the Michigan Central Nailroad track the flag-man motioned them to stop, and while so waiting the train passed on the Michigan Central Nailroad, nearly over the horse, which thereby became frightened and unmanageable, and turned suddenly, and threw plaintiff out of said buggy upon the ground with great force and violence, “whereby, and by means of the premises, and by reason of the gross carelessness and negligence of said defendant and of said defendant’s agent and servant, said flag-man, in motioning and beck oning the plaintiff and her said sister to go forward, as aforesaid when they were at a safe distance from said railroads, and in motioning them to stop as aforesaid, when they might then and there have gone forward, and without any fault or negligence on the part of the plaintiff or her said sister, the plaintiff was then and there greatly hurt, and injured internally and in her back and in one of her limbs, and otherwise hurt, bruised and injured.”
The plaintiff called the flag-man as a -witness, but he testified positively that the company did not employ him to flag trains on the main line, and gave him no instructions to do so. He admitted that he had assumed to do so, and had for years warned people of the approach of trains on the main line to. avoid accidents. The court directed a verdict for the defendants. This, we think, was error. The flag-man was the servant of defendant. Although he may have had no positive instructions to perform any duties in connection with the main line, or to warn persons with teams and vehicles of the approach of trains on the main line, yet the fact that he had uniform!}' performed such duty for several years was competent evidence to be submitted to the jury as tending to prove that he was so acting by the express or implied assent of defendant; and if the jury should be .satisfied from the evidence that the flag-man was performing the duty of warning persons of the approach of trains on the main line by the direction of the defendant, then it would be liable if its servant so negligently discharged his duty in that respect as to lead the plaintiff into a place of danger from which she received an injury' by reason of such negligence, her own want of care not concurring to produce such injury. The case should have been submitted to the jury under proper instructions from the court.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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D. C. Riley, P.J.
Defendant Robert Greenwood was charged with the burning of a building during the early morning hours of July 4, 1977, contrary to MCL 750.73; MSA 28.268. At the preliminary examination, Lieutenant James Szafran, an investigator for the City of Detroit, testified that he arrived to examine the area approximately 8 hours after the fire department responded to the blaze. During his exploration, Szafran found and collected evidence of the recent burning, and also took photographs of the scene. It was his conclusion that the fire was of an incendiary nature.
On the date set for trial, defense counsel moved to suppress any evidence gathered from the arson investigation because of the failure to procure a search warrant. Over the prosecution’s objection that defendant lacked standing to complain of the search, the court below, on the authority of People v Tyler, 399 Mich 564; 250 NW2d 467 (1977), ordered the evidence suppressed. As a result of this ruling, the prosecution indicated its inability to proceed and the case was dismissed without prejudice. From this dismissal the people appeal.
In Tyler, supra, the Michigan Supreme Court held that absent consent or abandonment, a warrant is required in order to re-enter and search an area once a fire has been extinguished and the fire fighters have left the premises. Tyler was subsequently appealed to the United States Supreme Court which substantially affirmed the previous decision. Michigan v Tyler, 436 US 499; 98 S Ct 1942; 56 L Ed 2d 486 (1978).
In determining whether the trial court properly granted defendant’s motion to suppress we must necessarily consider the prefatory issue of whether defendant had the requisite standing from which to voice his objection to the admission of the alleged unconstitutional evidence. Neither the United States Supreme Court Tyler opinion, nor the Michigan Supreme Court decision, specifically addressed this issue. However, those opinions spoke of protecting the expectation of privacy of persons who lived in their homes or worked in offices after those premises were burned. Michigan v Tyler, supra, 436 US at 505-506, People v Tyler, supra, at 582-583. Even where occupancy was impossible the United States Supreme Court stated that an expectation of privacy is warranted since "private effects often remain on the fire-damaged premises”. Michigan v Tyler, supra, 436 US at 505. The Court consistently referred to "occupants” and "owners” as being those persons protected by the warrantless investigation of fire officials. Michigan v Tyler, supra, 436 US at 508-509.
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:
"[T]here 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”. Hunt, supra, at 940. See Katz v United States, 389 US 347; 88 S Ct 507; 19 L Ed 2d 576 (1967).
Michigan decisions have underscored the necessity that a defendant come within the ambit of these traditionally recognized connections with the territory subject to the intrusion. Thus, for example, in Jackson, supra, the Court, citing Brown, held that defendant lacked standing to object to the search of another’s car subsequent to the arrest of defendant and out of his presence. Similarly, in People v Scott, 44 Mich App 462; 205 NW2d 291 (1973), defendant did not have standing to contest an invalid search of his girl-friend’s residence. See also People v Hale, 7 Mich App 127; 151 NW2d 240 (1967), wherein it was determined that the accused could not object to a search and seizure of property owned by another.
Turning to the case at bar, we hold that defendant lacked the requisite standing to protest the introduction at trial of any incriminating evidence gathered during the post-fire investigation. From the information revealed in the transcript, defendant had no rights whatsoever in the searched premises and therefore no reasonable expectation of privacy. There is no showing that defendant was on the grounds at the time of or after the fire. Defendant himself admitted that he did not own or occupy the grounds on which the blaze occurred. Finally, defendant was not charged with an offense that includes, as an essential element of the offense charged, possession of the seized evidence.
The evidence being properly admissible, the lower court erred in ordering its suppression. We therefore remand the case to the court below for trial on the charged offense. Because of our holding, we need not reach the question of whether the investigative entry, 8 hours subsequent to the fire, constituted an illegal search and seizure for lack of a valid warrant.
Reversed and remanded.
MCL 750.73; MSA 28.268 requires: (1) the burning of any building or other real property, or the contents thereof, and (2) that the fire was willfully or maliciously set. Possession of any instrumentality used to set the fire is not an essential element of the charged crime. | [
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After Remand
Per Curiam.
Plaintiffs appeal from an order of summary judgment for defendants. The trial judge based his order on the failure of the plaintiffs to raise a genuine issue as to any material fact. GCR 1963, 117.2(3).
This is not the first time that this action has been before our Court. In Remes v Duby, 69 Mich App 265; 244 NW2d 440 (1976), this Court reversed a trial court order of summary judgment. Plaintiffs were granted, on remand, an opportunity to amend their pleadings to include specific allegations as to the defendant attorneys’ part in directing the alleged trespass of deputy sheriffs Woods and Duby.
Such specific allegations were deemed necessary and essential to the retention of the attorneys as defendants. This appeal arises out of the subsequent trial court proceeding.
Plaintiffs’ claim in the case at bar that their amended complaint meets the requisite specificity necessary to state a cause of action pursuant to GCR 1963, 117.2(1), and that the evidence submitted by the parties presents a genuine issue as to a material fact. GCR 1963, 117.2(3).
The amended complaint of plaintiffs contains one revised paragraph in which it is alleged that attorney Chojnowski directed Woods and Duby to make service on the plaintiffs "at any cost”, including forceful entry into their home. Furthermore, they claim that:
"Subsequent inquiry to the Eaton County Prosecuting Attorney’s office and the Eaton County Sheriffs office resulted in being told 'The attorney from Kalamazoo that secured and delivered the summons told the process servers of the Sheriffs Department that they had a right to enter the Remes’ house and to get service on them at "any cost”, and could break into the Remes’ house to make service’.”
Motions brought under GCR 1963, 117.2(1) are to be tested on the pleadings alone. Todd v Biglow, 51 Mich App 346, 349; 214 NW2d 733 (1974). We find these pleadings sufficient to state a cause of action upon which relief could be granted so as to negate the availability of summary judgment under GCR 117.2(1).
However, a motion for summary judgment grounded on GCR 1963, 117.2(3) is designed to determine whether there is any competent evidence that could support the claim. The courts must consider the pleadings, affidavits, depositions, admissions, and documentary evidence filed in the action. See Bashara, The Elusive Summary Judgment Rule: Sifting Through the Maze, 1976 Det Col L Rev 397.
Supporting affidavits must be based on personal knowledge, not merely information and belief, so that the affiant can testify competently if sworn as a witness.
The affidavit must set forth with particularity such facts as would be admissible as evidence. Opinion, conclusionary denials, unsworn aver-ments, and inadmissible hearsay do not satisfy the court rule. Durant v Stahlin, 375 Mich 628, 657; 135 NW2d 392 (1965).
For the most part, plaintiffs’ supporting affidavits contain inadmissible hearsay, mere conclu-sionary language and reiteration of the unsworn averments.
It is only Sheriff Hoag’s affidavit which merits further consideration. In his affidavit he states that
"the attorney from said law firm contacted him and requested service be made at any cost, by any means, and offered $100.00 to $200.00 bonus for making the service; and that this information was passed on to Deputies Duby and Woods.”
The material or ultimate fact needed to be proved in this case is whether defendant attorneys ever directed that service on plaintiffs be made by use of illegal means.
We are compelled to agree with the findings of the trial judge that there is not one statement in all of the affidavits from which we may infer that the defendant attorneys advised anyone that the deputies were to serve the plaintiffs by forceful entry into their home.
The most that is found is that the summons was allegedly to be served "at any cost” and "by any means”.
We agree with the trial court that it is not a function of the judiciary to indulge in the remote speculation that the statement contemplated service by other than legal means.
When the nonmoving party is unable to provide evidentiary support for the allegations, summary judgment is permissible. See The Elusive Summary Judgment Rule, supra, at 417.
The trial court properly found there was no genuine issue as to any material fact. The order of summary judgment is affirmed. Costs to defendants.
Plaintiffs’ amended complaint, p 2. | [
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J. H. Gillis, P. J.
Plaintiffs appeal from the trial court’s order granting accelerated judgment to defendant.
Plaintiff Melvin Siira incurred a work-related injury in Montana in August, 1969. Workmen’s compensation benefits were paid under the Montana Workmen’s Compensation Act. A lump-sum payment of $14,308.90 was ultimately made which was approved by the Montana Workmen’s Compensation Division.
Plaintiffs Melvin and Shirley Siira subsequently filed suit against the manufacturer of a power saw which had been involved in the accident. This suit was settled for $75,000, $25,000 of which went to plaintiffs Wisti and Jaaskelainen for attorney fees.
On May 19, 1975, defendant filed a complaint against Mr. Siira for reimbursement of the workmen’s compensation benefits pursuant to the Montana act. Judgment in favor of defendant was rendered in July, 1976, and a writ of execution was subsequently secured to enforce this judgment.
Plaintiffs commenced the instant suit in April, 1977, requesting (1) apportionment of attorney’s fees as is provided for in the Michigan Worker’s Disability Compensation Act, MCL 418.827; MSA 17.237(827), and (2) actual and punitive damages for abuse of process and interference with plaintiffs’ contractual rights.
Defendant brought motions for accelerated judgment and summary judgment. The former was granted on June 20, 1977. Plaintiffs appeal as of right.
I
Apportionment of Attorney Fees
In granting accelerated judgment the trial court held that the "claims of Plaintiffs are barred by the prior District Court Judgment on July 19, 1976” and plaintiffs Wisti and Jaaskelainen "have no standing and are otherwise without legal capacity to seek the relief requested in the Complaint; and the claims of Plaintiffs for an accounting and/ or equitable lien are barred by laches due to their failure to bring this action in a timely manner”.
In asking for apportionment of attorney fees plaintiffs rely upon § 827 of the Michigan Worker’s Disability Compensation Act, MCL 418.827; MSA 17.237(827). This section allows an employee who has received worker’s compensation benefits from his employer to recover from a third-party tortfea-sor. Provision is made to reimburse the employer or carrier for compensation payments, with the attorney fees in a successful third-party action to be apportioned between the employee and carrier. However, § 827 has no applicability to the instant case. The first sentence of that section begins as follows: "Where the injury for which compensation is payable under this act * * * ,” It is evident from this language that § 827 is applicable only when the compensation was paid or payable under the Michigan act. In the instant case Mr. Siira lived and worked in Montana at the time of the injury, the claim was made under the Montana act, and the lump sum settlement of that claim was approved by the appropriate Montana worker’s compensation agency.
The Montana act differs significantly from the Michigan act. While both acts allow reimbursement to the carrier, Montana does not provide for apportionment of attorney fees. On the other hand, while in Michigan the carrier is entitled to be reimbursed for all compensation payments made, in Montana the carrier is only entitled to recover 50 percent of the compensation payments.
In the instant case the original compensation was paid pursuant to the Montana act. In addition, Employers Mutual sought reimbursement in accordance with the Montana act. We therefore hold that § 827 of the Michigan act is not applicable to this case. Rather, the Montana provision on reimbursement governs the issue.
Under the Montana act, the attorney has a first lien on the proceeds from a third-party settlement in the hands of whomsoever such proceeds may come. Hardware Mutual Casualty Co v Butler, 116 Mont 73; 148 P2d 563 (1944). If there are sufficient funds after payment of this fee, the compensation carrier may recover its full statutory share of reimbursement. See Anno: Workmen’s compensation: attorney’s fee or other expenses of litigation incurred by employee in action against third party tortfeasor as charge against employer’s distributive share, 74 ALR3d 854, 929. It was conceded by plaintiffs Wisti and Jaaskelainen that they received their full fee out of the third-party settlement. They contend, however, that they have agreed to refund a portion of that fee to the Siiras due to the reimbursement to the insurance carrier. They now seek to assert a claim against Employers Mutual for the attorney fees they have refunded to Mr. Siira. Whatever may be the private agreement among the plaintiffs it is clear that under Montana law defendant has no obligation to pay any portion of the attorney fees.
There is some question as to whether an order granting accelerated judgment is an appropriate method for disposing of this claim. Summary judgment for failure to state a cause of action would seem to be a more appropriate way to deal with the matter. However, since the applicability of the Michigan act was argued in front of the trial court and the parties were directed to address this issue before this Court we believe it is appropriate, pursuant to our authority under GCR 1963, 820.1(7), to order entry of summary judgment, GCR 1963, 117.2(1), in favor of defendant on Count I. See American Fidelity Fire Ins Co v Barry, 80 Mich App 670; 264 NW2d 92 (1978).
II
Abuse of Process
Counts II, III and IV deal essentially with plaintiffs’ allegation of abuse of process. The trial court’s decision to grant accelerated judgment on these three counts on the basis of res judicata was error.
The facts alleged to constitute abuse of process involve the manner in which defendant Employers Mutual executed upon its district court judgment. In order for a judgment to constitute a bar to a claim in a subsequent action, it must be upon the merits, upon the same matter in issue, and between the same parties or their privies. Curry v Detroit, 394 Mich 327; 231 NW2d 57 (1975). It is evident that a judgment cannot be dispositive of a cause of action based upon facts which occur subsequent to the entry of that judgment, as is the situation in the case at bar.
We, therefore, conclude that the trial court’s order granting accelerated judgment on Counts II, III and IV should be reversed and the case remanded for a trial on the merits. No costs, neither party having prevailed in full.
MCL 418.827; MSA 17.237(827) reads in full as follows:
"(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 sis 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. Not less than 30 days before the commencement of action by any party under this section, the parties shall notify, by certified mail at their last known address, the bureau, the injured employee, or in the event of his death, his known dependents or personal representative or his known next of kin, his employer and the carrier. Any party in interest shall have a right to join in the action.
"(2) Prior to the entry of judgment, either the employer or carrier or the employee or his personal representative may settle their claims as their interest shall appear and may execute releases therefor.
"(3) Settlement and release by the employee is not a bar to action by the employer or carrier to proceed against the third party for any interest or claims it might have.
"(4) If the injured employee or his dependents or personal representative settle their claim for injury or death or commence proceedings thereon against the third party before the payment of workmen’s compensation, such recovery or commencement of proceedings shall not act as an election of remedies and any moneys so recovered shall be applied as herein provided.
"(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 pay ment 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.
"(7) Compensation benefits referred to in this section shall in each instance include but not be limited to all expenses incurred under sections 315 and 345.
"(8) The furnishing of, or failure to furnish, safety inspections or safety advisory services incident to providing workmen’s compensation insurance, or pursuant to a contract providing for safety inspections or safety advisory services between the employer and a self-insurance service organization or a union shall not subject the insurer, self-insured service organization or thé accident fund, or their agents or employees, or the union, its members or the members of its safety committee, to third party liability for damages for injury, death or loss resulting therefrom.”
It should be noted that Montana has amended its Workmen’s Compensation Act to deal with the issue involved herein. Under the law applicable to this case the compensation carrier was not obligated to share in the costs of recovery but could only recover 50% of the benefits it had paid. Under the amended version the carrier has two options. It can either share the costs of recovery, in which case it is subrogated to the full amount of compensation payments made, or it can decline to pay a share of the costs, in which case it is subrogated to only 50% of the compensation payments made.
Relevant portions of the old provision read as follows:
"|T|n the event said employee, or in the case of his death, his personal representative, shall bring such action, then the employer or insurance carrier paying such compensation shall be subrogated only to the extent of either one-half (1/2) of the gross amount paid at time of bringing action and the amount eventually to be awarded to such employee as compensation under the workmen’s compensation law, or one-half (1/2) of the amount recovered and paid to such employee in settlement of, or by judgment in said action, whichever is the lesser amount.” Mont Rev Codes Ann § 92.204 (1964), repealed by § 2, Ch 493, Laws 1973.
A new section was enacted in 1977 to read, in part, as follows:
"(1) If an action is prosecuted as provided for in 92-204.1 and except as otherwise provided in this section, the insurer is entitled to subrogation for all compensation and benefits paid or to be paid under the Workers’ Compensation Act. The insurer’s right of subrogation is a first lien on the claim, judgment, or recovery.
"(2)(a) If the injured employee intends .to institute the third party action, he shall give the insurer reasonable notice of his intention to institute the action.
"(b) The injured employee may request that the insurer pay a proportionate share of the reasonable cost of the action, including attorneys’ fees.
"(c) The insurer may elect not to participate in the cost of the action. If this election is made, the insurer waives 50% of its subrogation rights granted by this section.” Mont Rev Codes Ann § 92.204.2.
It is evident that even if this new provision were applied to this case defendant would not be required to pay any portion of the attorney fees since it was reimbursed for only 50% of its previous compensation payments. | [
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Allen, P.J.
In this original mandamus action filed with this Court, plaintiff seeks an order requiring the Michigan Department of State Police to issue her a private detective license. The narrow question raised is whether § 6 of the Private Detective License Act, MCL 338.821 et seq.; MSA 18.184(1) et seq., requires an applicant to satisfy the statutory educational requirement with a degree from a four-year college or from a two-year college. This issue of first impression comes to us on the following facts.
In June 1973, plaintiff, then age 40, graduated with an associate degree in applied science in law enforcement from Northwestern Community College in Traverse City. Intending to become a private detective, she then filed with the Department of State Police an application for license as required by the Private Detective License Act, MCL 338.821 et seq.; MSA 18.184(1) et seq. In January, 1974, the department responded by letter stating that, as interpreted by the department, the statute required an applicant to have a four-year college degree. The department then requested an advisory opinion from the Attorney General who, on March 3, 1976, responded with OAG, 1975-1976, No 4935, p 328, interpreting the statute as requiring a degree from a four-year college. Plaintiff promptly requested a formal hearing on her application, and hearing was held April 6, 1976, at the conclusion of which the application was denied.
In May, 1977, plaintiff filed this original mandamus action for an order requiring the issuance of a license and for compensatory damages of $25,000 for defendants’ alleged arbitrary refusal to issue a license. Thereafter, this Court issued a show cause order, and directed the parties to brief, in addition to the main issue involved, the two issues noted below. In April, 1978, this Court granted leave to the Michigan Community College Association to file an amicus brief.
I. Mandamus Jurisdiction
Initially we direct our attention to the jurisdictional issues which this Court directed the parties to brief. The issues were raised and are discussed in a recent opinion of this Court in Saginaw Valley Trotting Ass'n, Inc v Michigan Racing Comm’r, 84 Mich App 564; 269 NW2d 676 (1978). In that case, plaintiffs brought an original mandamus action against the racing commissioner following his denial of a track license. As here, the parties were asked to brief the question of whether mandamus in the Court of Appeals was an appropriate remedy in view of the fact that MCL 600.4401; MSA 27A.4401 now provides for mandamus in circuit court. Our Court held that in future cases involving review of a denial by the racing commissioner, mandamus should start in the circuit court. But the decision was limited as evidenced by two quotations from that opinion.
"Plaintiffs did follow the standard procedure for mandamus as it existed up to this time. Therefore, we limit our decision in this case to complaints for mandamus filed in this Court after the date of this opinion, and will not deny plaintiffs access to the remedy they invoked on grounds that they brought their action in the wrong court. Furthermore, we limit our opinion to complaints for mandamus brought under the racing act. We do not hold .that all mandamus actions against state officers must start in circuit court but we leave this issue for future decision on a case by case basis. _
In the instant case, mandamus was filed in our Court long before the decision in Saginaw Valley Trotting Ass’n. Therefore, we will not penalize plaintiff for commencing action in the wrong court even if we should conclude that this case should have been commenced in circuit court.
But the question remains, viz. — in view of Saginaw Valley Trotting Ass’n, is an original action of mandamus in the Court of Appeals the proper procedure for review of the denial of a license under the Private Detective License Act? On the facts of this case, we hold that it is. The facts are undisputed. Only a question of law is involved. In Saginaw Valley Trotting Ass’n, as we believe will be true in most instances involving denial of a license, questions of fact were raised. Where only a question or questions of law are involved in suits involving review of license denials and where such denial is not a subject within the Administrative Procedures Act, we hold that mandamus may be initiated in the Court of Appeals rather than the circuit court. To hold otherwise unnecessarily complicates the judicial process by delaying the determination of law which can be made by this Court.
II. Statutory Interpretation
The relevant section of the Private Detective License Act, MCL 338.826; MSA 18.184(6), reads as follows:
"(1) The secretary of state shall issue a license to conduct business as a private detective or private investigator if he is satisfied that the applicant is a person, or if a firm, partnership, company or corporation, the sole or principal license holder is a person who meets all of the following qualifications:
"(g) For a period of not less than 3 years:
"Has been lawfully engaged in the private detective business on his own account; or
"Has been lawfully engaged in the private detective business as an investigative employee of the holder of a certificate of authority to conduct a detective agency; or "Has been an investigator, detective, special agent or police officer of a city, county or state government or of the United States government; or
"Is a graduate with a degree in a held of police administration from an accredited university or college. ” (Emphasis supplied.)
Plaintiff had no on-the-job experience and would qualify for a license only if she met the qualifications underscored above.
Plaintiff and amicus curiae argue that community colleges have existed for 38 years, were given constitutional status in 1963, and in the public mind are considered colleges. This being so, says plaintiff, the word "college” should be given, in accordance to well established rules of statutory construction, its plain and popularly understood meaning. The Attorney General argues just the opposite, claiming that, in Michigan, universities and four-year colleges have been lumped in one category and community colleges have been treated in another category; that universities and colleges and community colleges are referred to in separate sections of the Constitution of 1963, and thus in the legislative mind a college is different from a community college; that accordingly the commonly understood meaning of the word college was a four-year college. The Attorney General also argues that the long-standing administrative construction of the Private Detective License Act, that an associate degree from a community college did not meet the statutory requirements, should be controlling. To this latter argument we attach little weight because there is nothing in the record which suggests the issue has even been raised before.
The established rule of statutory construction that language is to be given its commonly understood meaning is not helpful. As defined in Black’s Law Dictionary (4th ed), p 329, a community college is a college. Webster’s Third New International Dictionary defines the word college as including both a four-year and a vocational college. See also 14 CJS, Colleges and Universities, § 1, p 1326. Thus, plaintiff meets the literal requirements of the statute. For some purposes the word college means a junior college as well as a four-year institution — for example, for purposes of exemption from taxation, Troy Conference Academy & Green Mountain Junior College v Town of Poultney, 115 Vt 480; 66 A2d 2 (1949), and for eligibility under the provisions of a will which directed that trust funds be paid to certain persons "while in college” or in securing a "college education”, Mitchell v Whittier College, 205 Cal 744; 272 P 748 (1928). On the other hand, there is authority that "college” in common parlance refers to a four-year institution. 14 CJS, Colleges and Universities, § 1, p 1327; 15A Am Jur 2d, Colleges and Universities, § 1, p 252. One definition of "college” in Webster’s Seventh New Collegiate Dictionary (1970 ed), p 162 is: "an independent institution of higher learning offering a course of general studies leading to a bachelor’s degree”. Community colleges do not grant a bachelor’s degree. So, too, there is case law that a junior or community college has been held not to be a college — for example, for purposes of voting extra millage, McHenry v Ouachita Parish School Board, 169 La 646; 125 So 841 (1930)._
The sum and substance of all of this is that there is no one answer to the question of whether "college” includes a two-year institution. There is no plain and popular understanding that in common parlance "college” means both a two-year and a four-year institution or conversely means only a four-year institution. The answer depends upon the precise wording of the statute involved, the language of the constitution of the jurisdiction, and the circumstances under which the statute was enacted. Consequently, our decision in the instant case is limited to the Private Detective License Act and is of no precedential value for statutes requiring college training, grant-in-aid, matching funds, accreditation or otherwise.
Logic and the constitutional backdrop persuade us that in the present case the word "college” means a four-year institution. To us it appears inconsistent to require in the first part, in a single sentence, a degree from a university (obviously meaning four years) and then in the final two words of the sentence to lower the requirement to a degree from a community college (meaning two years). To us, it is more consistent and logical to conclude the Legislature intended four years. A number of Michigan’s four-year colleges acquired university status shortly before the Constitutional Convention but others continued to be designated colleges. Thus, it was common to refer to four-year schools either as universities or as colleges. We believe this is what the Legislature did when preparing the statute in question.
This interpretation is consistent with sub-section (l)(g) of § 6 when read as a whole. That subsection sets forth two alternative qualifications for licen-sure: 1) on-the-job experience for three years, or 2) education culminating in a degree in police admin istration. To us, it appears that the Legislature was saying that if an applicant did not have three years practical experience, four years education was an alternative. Certainly that is what the first portion of the underscored sentence requires. This being so, it is totally inconsistent to interpret the final two words of the sentence ("or college”) as requiring only two years of education. It is also inconsistent with the beginning words of subsection (l)(g) "for a period of not less than three years”. Statutes should be construed so as to produce, if possible, a harmonious and consistent enactment. People v Babcock, 343 Mich 671, 678-679; 73 NW2d 521 (1955). The construction given the statute by the Attorney General and the department is consistent and harmonious. The interpretation urged by plaintiff is strained and internally inconsistent.
In the 13 years since the enactment of the statute, community colleges have greatly expanded the number and depth of courses given in law enforcement. It may well be that today the Legislature would find a two-year degree in police administration sufficient license qualification. However, that is a matter for the Legislature rather than the courts.
Mandamus denied, no costs, a public question being involved.
Section 6 lists the qualifications for being licensed by the Secretary of State. The licensing duties of the Secretary of State were transferred to the State Police by § 156 of the Executive Organization Act, MCL 16.256; MSA 3.29(156).
(1) Is the complaint for mandamus in the Court of Appeals an appropriate remedy for plaintiff in view of the fact that MCL 600.4401; MSA 27A.4401 now provides for an action for mandamus against a state officer in the circuit court?
(2) Does plaintiff have an adequate legal remedy by seeking declaratory relief under MCL 24.263; MSA 3.560(163), MCL 24.264; MSA 3.560(164) and GCR 1963, 521.5 or by seeking an appeal under MCL 600.631; MSA 27A.631?
"5 However, it would seem that the rationale of this decision would apply to most mandamus proceedings for review of state officers’ agency decisions where a remedy for review or appeal in circuit court is available under either the specific statute under which the agency proceedings were conducted, Chapter 6 of the Administrative Procedures Act, MCL 24.301 et seq.; MSA 3.560(201) et seq., or § 631 of the Revised Judicature Act, MCL 600.631; MSA 27A.631. Where circuit court review or appeal is available under one of those sources and mandamus is sought in the Court of Appeals, this Court could properly decline to entertain the complaint on the grounds that the circuit court remedy, coupled with a complaint, motion or prayer for mandamus relief, is an available adequate remedy.” 84 Mich App at 572.
Plaintiff does not have adequate legal remedies under the Administrative Procedure Act licensing or contested case provisions, since there is no legal requirement under the Private Detective License Act for notice and hearing. MCL 24.203(3); MSA 3.560(103X3). See Kelly Downs, Inc v Racing Comm, 60 Mich App 539; 231 NW2d 443 (1975), Saginaw Valley Trotting Ass’n, supra. Nor does plaintiff have an adequate legal remedy under the declaratory ruling procedure of APA § 263; plaintiff is seeking a license, not merely a ruling. Compare MCL 24.263; MSA 3.560(163) with MCL 24.291; MSA 3.560(191). Likewise, the declaratory judgment remedies of APA § 264 fail to apply because no rule of the Department of State Police existed on the educational requirement question. MCL 24.264; MSA 3.560(164). See Human Rights Party v Michigan Corrections Comm, 76 Mich App 204, 211; 256 NW2d 439, 443 (1977). Finally, unlike the situation in Saginaw Valley Trotting Ass’n, here, there is not available to plaintiff a statutory provision for review in the circuit court, of the department’s refusal to license.
See Shaw v Macomb Community College, 389 Mich 69, 75-77; 204 NW2d 129 (1973), for the statutory history of community colleges in Michigan.
Const 1963, art 8, § 6, refers to colleges, and art 8, § 7, refers to community and junior colleges. See also discussion by Delegate An-drus in the constitutional debates. 1 Official Record, Constitutional Convention 1961, p 1172.
A college is "an institution of learning * * * which offers instruction in the liberal arts and humanities and in scientific branches, but not in the technical arts or those studies preparatory to admission to the professions”. | [
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Per Curiam.
Defendant was originally charged with forgery, contrary to MCL 750.248; MSA 28.445, however, pursuant to a plea agreement this charge was dropped when the defendant pled guilty to a second count of possession with intent to circulate a credit card, contrary to MCL 750.157(p); MSA 28.354(15). The maximum penalty for this offense is four years incarceration and/or a fine of $2,000. On December 11, 1975, defendant was sentenced to imprisonment for 47 to 48 months, with credit for 87 days served. He appeals, claiming alternatively that the sentence imposed violates the indeterminate sentencing act, MCL 769.8; MSA 28.1080, or, that the trial court erred in failing to inform the defendant that the act was not applicable to him.
At sentencing, the court stated that the defendant had two previous felony convictions, and at the time was on parole. Under People v Ungurean, 51 Mich App 262; 214 NW2d 873 (1974), and People v Banks, 73 Mich App 492; 252 NW2d 501 (1977), the indeterminate sentencing act does not apply to him.
GCR 1963, 785.7 sets forth quite specifically the procedure to be followed in accepting guilty pleas. It has been embellished by the Supreme Court in Guilty Plea Cases, 395 Mich 96; 235 NW2d 132 (1975), and in other individual cases. Neither 785.7 nor the decisions interpreting it require that the plea-taking court inform the defendant of any rights under the indeterminate sentencing act. While the similar problem of habitual offenders is explicitly included within the mandatory instructions of GCR 1963, 785.7, we refuse to expand the Supreme Court’s considered and detailed instructions by analogy.
Affirmed. | [
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M. F. Cavanagh, J.
Plaintiff, William’s Delight Corporation, is a corporation organized under the laws of the Virgin Islands and apparently qualified to do business in Michigan. In 1969 it was incorporated to carry out a real estate development program for the purchase of land and the construction of condominium units in the Virgin Islands. Pursuant to this program, plaintiff contacted 14 persons in Michigan, including defendant Harris, for the purpose of investing in the corporation. From the record, it is unclear whether all 14 offers were made prior to the plaintiffs incorporation.
Plaintiffs offering brochure indicated defendant Harris as an investor who would also act as legal advisor, performing a variety of legal duties connected to the plaintiffs organization. He subsequently became secretary of the corporation as well.
The corporation has brought suit against the defendant, alleging he had failed to complete his agreement to purchase 250 shares in the amount of $25,000. Defendant moved to dismiss the complaint, denying, first, that such an agreement ever existed, and second, arguing that even if it did, plaintiff could maintain no suit on the contract and/or it was voidable by him because of plaintiffs failure to comply with the Michigan Uniform Securities Act, MCL 451.501 et seq.; MSA 19.776(101) et seq.
The court below granted the motion, finding that the plaintiff had failed either to comply with the act’s registration provision, (MCL 451.701; MSA 19.776(301)) or to meet the exemption requirements for preincorporation subscriptions under the same act (MCL 451.802(b)(10); MSA 19.776(402)(b)(10))..
On appeal, plaintiff corporation raises essentially the same arguments it raised to the trial court: (1) the transaction in question, while it does not fall within the exemption for preincorporation certificates or subscriptions, did meet the more general provisions of MCL 451.802(b)(9); MSA 19.776(402)(b)(9), and was therefore exempt from registration; (2) in any event, the defendant should be estopped from asserting the agreement’s invalidity. Plaintiff argues that as its legal advisor, defendant had the responsibility to insure the corporation’s compliance with Michigan security law, and thus cannot be heard to assert its failure to do so to avoid his obligation on the contract. The trial court did not rule on the plaintiff’s second contention, apparently finding the first dis-positive of the case. We will consider both arguments in turn.
Plaintiff first argues that if a sale of preincorpo-ration subscriptions exceeds the limits set out in MCL 451.802(b)(10); MSA 19.776(402)(b)(10), thus failing to meet the specific registration exemption for such subscriptions under that section, it may nevertheless still meet the more general terms of MCL 451.802(b)(9); MSA 19.776(402)(b)(9) and qualify for exemption from registration.
MCL 451.802(b)(10) provides:
"Any offer or sale of a preorganization certificate or subscription, and the issuance of securities pursuant thereto, if:
* * *
"(B) The number of subscribers does not exceed 10 * * * .” (Emphasis added.)
By contrast MCL 451.802(b)(9) more generally exempts from registration:
"Any transaction pursuant to an offer directed by the offeror to not more than 15 persons * * * in this state during any period of 12 consecutive months * * * .”
As used in the latter provision, "offer” includes every attempt or offer to buy or sell a security, which according to the definitional sections of the act, does encompass a preorganization subscription. MCL 451.801(j)(2); MSA 19.776(401)(j)(2). By reading these three sections together, plaintiff constructs an elaborate carry-over scheme, which in effect allows the offeror to straddle the two exemptions, thus enjoying the benefit of each.
The interpretation of these two exemption sections is one of first impression in this state and apparently also in the other jurisdictions that have adopted the Uniform Securities Act. After examining the available authority, we conclude that the trial court was correct in ruling that MCL 451.802(b)(10) alone applied to the transaction in question.
First, we disagree with plaintiff’s argument that the two sections are interrelated. While this contention has merit when applied to the Uniform Securities Act, it fails to comprehend the import of the changes made in the Michigan version of § 402(b)(10).
The uniform provision exempts the offer or sale of preincorporation subscriptions, but not the issuance of stock itself, unless another exemption is available. One such exemption is § 402(b)(9), which will exempt the issued stock, assuming that the number of original offers of subscriptions did not exceed ten. In Michigan, however, there is no need to resort to both exemptions, because MCL 451.802(b)(10), specifically exempts both the offer or sale of the subscriptions and the issuance of the securities. See Loss, Commentary on the Uniform Securities Act, pp 130-131 (1976).
It is unlikely also that the Legislature intended to allow an offeror to stack exemptions by employing a carry-over device. First, such devices enable offerors or sellers to evade the act’s registration requirements, thus undermining its investigative and protective purpose. People v Dempster, 396 Mich 700; 242 NW2d 381 (1976). Secondly, the provisions are designed to achieve two distinct results. As the Official Comments to the Uniform Securities Act indicate, MCL 451.802(b)(10); MSA 19.776(402)(b)(10), limits only the number of eventual subscribers, not offerees, thereby allowing the organizers to publicly advertise and inform a large number of investors of an investment opportunity. With this object in mind, it would be counterproductive to permit the carry-over of excess offers and subject them to the stricter terms of MCL 451.802(b)(9); MSA 19.776(402)(b)(9). It is much more logical to view the limits on offers in this provision as directed towards post-incorporation offers of securities to enable a corporation, which may not desire a major public financing campaign, to attract additional investors yet avoid the expense of registration. Securities Eule 451.802.3 supports this interpretation by indicating that § 802(b)(9) is aimed at post-incorporation offers, not merely the conclusion of transactions pursuant to offers made at any time by an issuer. Thus, the mere fact that Harris "cemented” his contractual liability after plaintiff’s incorporation is insufficient to bring the transaction within the rule especially since the offer itself was couched in terms of a preincorporation proposal.
Finally, we agree that
"Where there is in the same statute a specific provision, and also a general one which in its most comprehensive sense would include matters embraced in the former, the particular provision must control, and the general provision must be taken to affect only such cases within its general language as are not within the provisions of the particular provision.”
Evanston YMCA Camp v State Tax Comm, 369 Mich 1, 8; 118 NW2d 818 (1962), Dossin’s Food Products, Inc v State Tax Comm, 360 Mich 312; 103 NW2d 474 (1960), McKenna v Chevrolet-Saginaw Grey Iron Foundry Division, General Motors Corp, 63 Mich App 365; 234 NW2d 526 (1975), lv den, 395 Mich 827 (1976). The subscriptions at issue here clearly fell within the provisions of the narrower exemption and should be governed by it. Plaintiffs failure either to qualify for the exemption or register constituted a violation of the act.
MCL 451.810(f); MSA 19.776(410)(f) prevents a party from basing any suit upon a contract made or performed in violation of any provision of the Uniform Securities Act. However, the plaintiff urges here, as it did below, that the defendant be estopped from asserting the violation of MCL 451.701; MSA 19.776(301) as a defense to its action for damages for breach of contract, relying mainly on the authority of Schrier v B&B Oil Co, 311 Mich 118; 18 NW2d 392 (1945).
Generally speaking, estoppel cannot be used to enforce an illegal contract or allow its rescission if the contract offends a public policy embodied in a statute. Leland v Ford, 245 Mich 599; 223 NW 218 (1929). Where contracts for sale of securities in violation of state Blue Sky laws have been made, a number of jurisdictions have followed the general rule, mainly in suits for rescission brought by purchasers of these securities. Normally, the aggrieved purchasers, even if not free of wrongdoing, have been allowed to rescind the illegal contract and recover any money paid under it.
Michigan, however, has developed a jurisprudence in such cases which recognizes that in certain circumstances, the policy embodied in the state securities’ laws is better served by a more flexible approach. One line of cases, decided under the statutory scheme replaced by the Uniform Security Act, permitted the assertion of an estop-pel argument against a purchaser seeking to rescind an agreement violative of the act, on the grounds that the parties were in pari delicto, and should be left as the court found them. This conclusion was based in part on the finding that the act’s protection of innocent purchasers did not extend to one who was aware of the violation but who had made no attempt to rescind until his investment became unprofitable. The ultimate result in these cases is thus to allow the seller, who has the duty to comply with the securities’ regulations, to retain the purchase price. Schrier v B&B Oil Co, supra, Moore v Manufacturers Sales Co, 335 Mich 606; 56 NW2d 397 (1953), DePolo v Greig, 338 Mich 703; 62 NW2d 441 (1954). Using somewhat different reasoning to reach the same result, this Court, in Walton v Semmler, 6 Mich App 596; 149 NW2d 885 (1967), simply found that a purchaser who did not attempt to repudiate his agreement until sued thereon also fell outside the scope of the act.
In the above cases, the sale of securities were admittedly in violation of Michigan security laws. Nevertheless, the court estopped the purchaser from asserting the violation by focusing on such factors as his business acumen, the nature and degree of his involvement in the seller’s management, his familiarity with securities regulations and/or the seller’s failure to comply and his opportunity for independent legal advice. Thus, the common thread uniting these cases is that the purchaser urging the violation in some sense participated in the wrongdoing.
A similar result is urged here, albeit in the context of a seller’s action to enforce a purchase agreement. Plaintiff-seller alleges that the defendant’s failure to advise the corporation in regard to compliance with Michigan security law places him in pari delicto with the plaintiff. His conduct should thus estop him from asserting the transaction’s illegality thus requiring him to honor his contractual obligation to purchase stock subscriptions. Defendant asserts that if the parties are in pari delicto, the proper result is to leave all concerned as the court finds them.
While we agree with defendant that plaintiff has partially misapprehended the in pari delicto doctrine and that, if both parties equally participated in the violation, this Court should grant relief to neither, we have no basis on the present record for reaching this result. Nor, on the other hand, are we able to ascertain whether the defendant’s conduct in this matter was so egregious as to estop him from asserting the plaintiffs violation of Michigan’s security laws. We would therefore remand for the trial court’s consideration whether or not the defendant should be estopped to urge the contract’s invalidity as a defense to the plaintiffs action and for a determination of whether the parties are in pari delicto. In making this determination, the trial court should consider those factors noted above as equally applicable to plaintiff and defendant.
Arguably, the mere showing of a technical violation of the act may be sufficient for finding a plaintiff-seller in pari delicto, thus barring him from suing on his contract under MCL 451.810(f); MSA 19.776(410)(f), even where there is great disparity in the relative degrees of culpability between the parties. We are persuaded that such a rule can, in these circumstances, be overbroad. We thus agree with the statements of the California court that:
"In some cases, * * * effective deterrence is best realized by enforcing the plaintiff’s claim rather than leaving the defendant in possession of the benefit; or the forfeiture resulting from unenforceability is disproportionately harsh considering the nature of the illegality. In each such case, how the aims of policy can best be achieved depends on the kind of illegality and the particular facts involved.”
Smith v Turner, 238 Cal App 2d 141, 152; 47 Cal Rptr 582, 589 (1965). Accord, Groves v Jones, 252 Mich 446, 450-451; 233 NW 375 (1930). Nor are we concerned that allowing a seller to avail himself of the estoppel doctrine will thwart the purpose behind the Michigan Uniform Securities Act. This act, like the Federal securities acts, is aimed at protecting the innocent purchaser. Schrier, supra, Walton, supra, A C Frost & Co v Coeur D’Alene Mines Corp, 312 US 38; 61 S Ct 414; 85 L Ed 500 (1941). Certainly, in the vast majority of cases, the purchaser will normally fall within the act’s protection and the seller will be barred from basing suit on his contract. But where the seller can establish its own unwitting violation of the act and the purchaser’s culpable involvement or acquiescence in it, no public policy is thwarted by allowing the suit. See Walton, supra, Straley v Universal Uranium & Milling Corp, 289 F2d 370 (CA 9, 1961), Royal Air Properties, Inc v Smith, 312 F2d 210 (CA 9, 1962). By so limiting our holding to such situations, the spirit and purpose of the act is maintained.
Reversed and remanded.
Under Federal securities law, the "stacking” of exemptions is expressly prohibited, particularly where the claimed exemptions may apply to an "integrated offer” that is, ostensibly separate offerings which are in reality one financing plan, cover the same type of securities and were made at or about the same time, for the same purpose. See SEC Release No. 33-4552 (Nov. 6, 1962), 27 FR 11316, Bowers v Columbia General Corp, 336 F Supp 609 (D Del, 1971).
This rule states:
"Only transactions effected in compliance with this rule are exempt under section 402(b)(9) of the act ** * * . The following transactions * * * are exempt under this rule:
"(a) Transactions pursuant to offers of its securities, regardless of type or class, by an incorporated issuer directed to an aggregate of not more than 15 persons in this state during the initial period of 12 months after incorporation, and to an aggregate of not more than 10 persons during any subsequent period of 12 consecutive months.” 1954 Michigan Administrative Code 4809 (Supp 1968).
Loewenstein v Midwestern Investment Co, 181 Neb 547; 149 NW2d 512 (1967), Randall v California Land Buyers Syndicate, 217 Cal 594; 20 P2d 331 (1933). See generally, 3 Loss, Securities Regulation (2d ed), pp 1677-1679, n 231-237, and cases cited therein. Most of the above-cited cases discuss the applicability of estoppel and in pari delicto to contracts made in violation of various state securities laws. However, courts tend to resist finding that the purchaser’s conduct has placed him in pari delicto and prevented his recovery, emphasizing the necessity of equal culpability and the purpose behind Blue Sky regulations. One California court noted that the doctrines of estoppel/ in pari delicto applied only in extreme cases where the purchaser actually participated in fraudulent securities practices. Taormina v Antelope Mining Corp, 110 Cal App 2d 314; 242 P2d 665 (1952).
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Per Curiam.
Defendant was convicted of being an aider or abettor, MCL 767.39; MSA 28.979, to the crime of extortion, MCL 750.213; MSA 28.410, following his plea of nolo contendere to that charge on December 13, 1976. Defendant was initially charged with kidnapping, MCL 750.349; MSA 28.581, and extortion but the kidnapping count was dropped as part of a plea bargain. Defendant was sentenced to 2 years and 6 months to 20 years in prison, and now appeals of right.
The kidnapping and extortion charges stemmed from a plot to kidnap members of the William Schulenberg family and hold them for ransom. The abduction took place in the evening of September 29, 1975, the ransom was paid on the morning of September 30, and those abducted were released on the morning of September 30.
Defendant’s role was to take the principals in the crime to the area of the Schulenberg home and later to pick them up when they called. Defendant also left a package at a designated spot during the course of the crime. For his part, defendant received 10% of the ransom, $4,400. When defendant dropped off the principals he saw that they carried a rifle and a shotgun. Defendant said he knew the plan was to "score something big” but he had no idea as to what crime was intended. According to defendant, he learned of the kidnapping when he heard about it on the radio on the morning of September 30.
On appeal defendant contends that an incriminating statement he made should have been excluded because it was the inadmissible fruit of a warrantless arrest made without probable cause. In order for an officer to make a warrantless arrest there must be circumstances that would lead a reasonably prudent person to the belief that a felony had been committed and that defendant had participated therein. People v Thatcher, 83 Mich App 527; 269 NW2d 210 (1978), People v Tebedo, 81 Mich App 535; 265 NW2d 406 (1978), MCL 764.15(c); MSA 28.874(c). Since the lower court has determined that there was probable cause, we review its ruling for an abuse of discretion. People v Thatcher, supra at 529.
Defendant was arrested on October 1, 1975, at a house which was located about 100 feet from a tree to which a member of the Schulenberg family was tied during the course of the crime. Police and FBI agents were investigating the crime and FBI agent Eiden was questioning defendant. Another agent phoned Eiden to inform him that defendant was seen in a car belonging to one of the primary suspects in the case, Todd Szynwelski, and was accompanied by the other primary suspect, Ken Royce, shortly after the ransom had been paid on the morning of September 30. Defendant and Royce had been seen arriving at the house then being investigated. Agent Eiden was also informed that one Mary Sequara had made a statement connecting defendant with Royce and Szynwelski. At this point Eiden told defendant the complexion of the interview had changed and that defendant was under arrest. We find that there was no abuse of discretion in the lower court concluding that these facts constituted probable cause to arrest defendant.
After being arrested, Eiden informed defendant of his rights by presenting him with a form enumerating the Miranda rights. Defendant read the form and refused to sign it, but he did initial a statement that he had read the form and declined to sign it. Shortly thereafter, defendant said he would tell what he knew. The agents then took defendant to the local FBI office. En route they stopped at defendant’s mother’s house to retrieve defendant’s share of the ransom. Defendant’s mother asked him if he wanted an attorney and defendant responded that he did not. At the FBI office defendant read a rights and waiver form identical to the one he had read earlier. This time defendant signed the form. Defendant then made an incriminating statement which he refused to sign on the advice of attorneys sent by his mother.
As previously noted, defendant’s statement was not inadmissible due to an invalid arrest. Defendant also contends the statement was inadmissible because it was involuntary and was obtained in violation of his right to remain silent. We find, as did the lower court, that the statement was voluntarily made and was admissible. The question of voluntariness is to be determined from the totality of the circumstances. People v Smith, 80 Mich App 106; 263 NW2d 306 (1977), People v Cutler, 73 Mich App 313; 251 NW2d 303 (1977). In this case we are convinced that defendant voluntarily waived his right to remain silent. Defendant indicated he wished to talk, twice he read and understood his rights, he signed a waiver form the second time, and he declined his mother’s initial suggestion to obtain counsel. Defendant’s initial refusal to sign the waiver form is only one factor in the totality of the circumstances considered, and it did not render defendant’s later statements inadmissible. People v Oliver, 63 Mich App 509; 234 NW2d 679 (1975), People v McClendon, 48 Mich App 552; 210 NW2d 778 (1973).
Defendant also questions whether he could be convicted of extortion as an aider and abettor where he allegedly did not have the requisite specific intent to commit the crime. Defendant attacks the propriety of both his bindover following his preliminary examination and his nolo con-tendere plea on the ground that the evidence did not show his specific intent to extort.
To be held criminally liable for a specific intent crime as an aider or abettor, a defendant must have had either the requisite specific intent or known that the actual perpetrator had the required intent. People v Frederick Lester, 78 Mich App 21; 259 NW2d 370 (1977), People v Poplar, 20 Mich App 132; 173 NW2d 732 (1969). Intent is a question of fact to be inferred from the circumstances by the trier of fact. People v Spry, 74 Mich App 584; 254 NW2d 782 (1977), People v Sharp, 57 Mich App 624; 226 NW2d 590 (1975), It is likewise a factual issue whether a particular act or crime committed was fairly within the intended scope of the common criminal enterprise. People v Haack, 396 Mich 367; 240 NW2d 704 (1976), People v McGuire, 39 Mich App 308; 197 NW2d 469 (1972), People v Pearce, 20 Mich App 289; 174 NW2d 19 (1969), People v Poplar, supra.
An examining magistrate may bind a defendant over for trial only if he determines that an offense has been committed and that there is probable cause to believe the defendant committed it. People v Morris, 66 Mich App 514; 239 NW2d 649 (1976). In order to find probable cause there must be evidence on each element of the offense or evidence from which those elements may be inferred, but the elements need not be proven beyond a reasonable doubt. People v Oster, 67 Mich App 490; 241 NW2d 260 (1976), People v Smith, 49 Mich App 630; 212 NW2d 768 (1973). That ultimate finding is for the trier of fact. The magistrate’s determination is reviewed for an abuse of discretion. People v Melvin, 70 Mich App 138; 245 NW2d 178 (1976). In this case the only question concerned the element of intent, and there was sufficient evidence to infer that defendant had the requisite intent. Defendant’s disclaimers concerning specific intent could be rejected by the magistrate and the trier of fact. People v Haack, supra. There was sufficient evidence to bind over defendant.
Much the same reasoning that was applied to the propriety of the bindover can be applied to the validity of the nolo contendere plea. A factual basis must be established to support a plea of nolo contendere. GCR 1963, 785.7(3)(b)(ii). In this case the same facts supporting the bindover can sup port the plea. The question of whether defendant actually did have the necessary specific intent was a question of fact for the trier of fact, and by pleading nolo contendere defendant waived his right for the trier of fact to make that determination. However, there was ample evidence from which defendant’s intent could be inferred, and therefore acceptance of the plea was proper.
Defendant also argues that the bindover and conviction were improper because the magistrate and the circuit court found as a fact that defendant lacked the specific intent to extort and did not know of the specific intent his accomplices had. While these alleged findings could be construed as summaries of defendant’s position, we cannot agree with defendant’s contention on appeal even assuming, arguendo, that such findings were made. Defendant’s contention is that he was unaware of what intent his accomplices had. But an aider or abettor is criminally responsible for the acts of his principals when he knows the actual perpetrators had the required intent. Taken literally, defendant meets this test because he knew that the principals had the criminal intent to do what they planned. Defendant did not know what they planned, but he knew they had the specific intent to do whatever they had planned.
Defendant’s intent itself also supports our conclusion. It can be argued that defendant intended any and all consequences of the criminal undertaking. Defendant intended to partake in whatever crime was planned and he did not care what it was. He knew weapons were involved and this did not deter him. It could be concluded that defendant’s intent encompassed all crimes, including extortion. By the same token, the scope of the criminal undertaking with which defendant knowingly associated himself would be unlimited.
Finally, for policy reasons we cannot accept defendant’s argument. In effect, defendant is arguing that he can knowingly further criminal activity and avoid the concomitant criminal liability by intentionally ignoring the nature of the crime. Society cannot condone such criminal irresponsibility, and in this situation ignorance does not mean innocence.
Affirmed.
Mary Sequara was an eyewitness to parts of the crime.
Defendant points to the following statements, which are necessarily taken out of context, to indicate the finding:
"Wirth knew that Todd and Kenny had intended to 'score something big’, * * * Defendant Daniel Wirth knew that something illegal was happening, or that his other two 'partners’ had intended to score something big.” (Trial court summarizing evidence during the plea proceedings.)
"This defendant saw the weapons. He knew there was a score. He may not have known exactly what the crime was going to be, but he had put no limitation on his involvement.” (District court’s comment in overruling an objection to the bindover.) | [
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P. J. Marutiak, J.
The parties in the instant action were divorced in a 1968 Kentucky proceed ing. The divorce decree divided the parties’ marital estate in accordance with the terms of a consent agreement that they had devised. The consent agreement provided inter alia that defendant pay plaintiff child support and alimony of $100 per week until the oldest of two children became 21 years of age, $80 per week until the remaining child became 21 years old, and then pay $50 a week until plaintiff either died or remarried. Defendant also promised in the consent agreement to assume payment of a loan that was secured by certain stock owned by plaintiff, to indemnify plaintiff for any loss she might sustain due to the operation of defendant’s business, and to pay plaintiff $500 for attorney fees incurred during the divorce proceeding.
Prior to the final judgment of divorce in Kentucky, defendant moved to Michigan. Thereafter, on July 30, 1968, plaintiff filed a petition under the Uniform Reciprocal Enforcement of Support Act, MCL 780.151 et seq.; MSA 25.225(1) et seq., with the Wayne County Circuit Court to secure payment of defendant’s support obligations under the terms of the consent agreement. In an order dated September 13, 1968, defendant was directed to pay plaintiff $30 per week child support for the parties’ one remaining child who was under the age of 18. No mention of defendant’s obligation to pay alimony to plaintiff under the terms of the consent agreement was made in the URESA order.
On April 19, 1976, plaintiff began the instant action in Oakland County Circuit Court by filing a complaint for enforcement of the property settlement and alimony provisions of the Kentucky divorce decree. A referee was assigned to take testimony and evidence in this matter and, following a hearing at which both parties testified, the referee recommended that defendant be relieved of the obligation to pay any past or future alimony; that defendant be ordered to pay plaintiff $8,373.50 for stock that was awarded to plaintiff in the Kentucky judgment, but which had been forfeited when defendant failed to pay a bank loan that he consented to pay in the property settlement agreement and for which the stock was security; that defendant reimburse plaintiff for any loss she may have sustained in paying off business debts that defendant had incurred and promised to pay in the consent agreement; and that defendant reimburse plaintiff for the $150 expense of a Jewish divorce and the $500 in attorney fees and $100 in court costs that stemmed from the Kentucky divorce proceeding.
Both parties filed objections to the referee’s recommendations and stipulated that this action would be submitted to the Oakland County Circuit Court on briefs in letter form with a transcript of the referee’s hearing. The lower court, without taking any additional testimony or evidence, issued its opinion and final order in this action on November 8, 1977. It is undisputed that this order substantially enforces the provisions of the Kentucky divorce decree. It requires defendant to reimburse plaintiff for the $8,373.50 value of the stock that she lost, for the $4,970.20 in business debts of defendant that she paid, and for the expense of the Jewish divorce, the Kentucky attorney fees, and the Kentucky divorce proceeding court costs. The court also ordered defendant to pay plaintiff $50 per week alimony until she either dies or remarries. These alimony payments were to be made retroactive to the date that plaintiff filed her complaint in the instant action; the alimony arrearages accrued during the 9 years from the date of the Kentucky judgment of divorce to the date of plaintiffs complaint were cancelled.
Defendant now appeals and asks us to review several alleged errors of the lower court.
Foremost among the issues raised on appeal by defendant is his contention that the trial court abused its discretion by enforcing the property settlement terms of the Kentucky divorce decree. He argues that Michigan recognizes the doctrine of divisible divorce and that doctrine holds that a Michigan court is not necessarily bound by all incidents of a foreign judgment of divorce. In support of his argument, defendant cites us to the decision of our Supreme Court in Owen v Owen, 389 Mich 117; 205 NW2d 181 (1973), cert den, 414 US 830; 94 S Ct 60; 38 L Ed 2d 64 (1973), reh den, 414 US 1086; 94 S Ct 606; 38 L Ed 2d 491 (1973).
As defendant correctly points out, the Court in Owen did state:
"The fact that plaintiff’s Nevada divorce must be given full faith and credit does not mean however, that it is determinative of all of the incidentals of marriage.” Owen, supra at 121.
However, defendant misconstrues the thrust of this statement by attempting to apply it to a factual situation that is clearly distinguishable from Owen. The Supreme Court noted in Owen that:
"The divorce in Nevada did not purport to adjudicate anything other than the marriage relationship. It does not mention property settlement or support payments. Furthermore, the law in Michigan appears to be that ex parte divorce decisions will not be given full faith and credit with respect to these matters. The policy in Michigan is that the property rights of its citizens will be protected.” (Citation omitted). Owen, supra at 122.
The case at bar involves a foreign divorce decree between parties who, at the time of that divorce, were residents of Kentucky and who had no contacts with Michigan. That divorce decree of a sister state did provide for the division of the marital estate. Further, that decree was not, as in Owen, an ex parte decree but, rather, was one that resulted from proceedings in which both parties fully participated to the extent of signing a consent agreement that provided for the distribution of their marital estate. Thus, Owen does not support defendant’s position.
The question of whether the courts of this state should enforce a foreign divorce decree that divides a marital estate which is totally within the jurisdiction of the foreign court granting the decree is, somewhat, an issue of first impression. However, it would seem that, perhaps excepting cases where enforcement would be against a public policy of this state, such foreign divorce decrees should be entitled to full faith and credit in the courts of this state.
In Mayer v Mayer, 154 Mich 386; 117 NW 890 (1908), the Supreme Court held that where a decree of divorce in another state contained no reservation of power to amend or modify an award of alimony, the award was final and could be enforced in the courts of this state. Similarly, then, other awards of property in a divorce decree that are final should be enforceable in Michigan courts. We look then to Kentucky law to determine whether the divorce decree in the instant case was a final judgment in all of its aspects.
In Kentucky the terms of a property settlement agreement that is embodied in a divorce decree are not subject to later modification by a Kentucky court if the agreement constitutes a property settlement agreement as such, that is, is meant as a final settlement of the property rights and claims of the parties. Richey v Richey, 389 SW2d 914 (Ky App, 1965), Turner v Ewald, 290 Ky 833; 162 SW2d 181 (Ky App, 1942). Kentucky law does provide for certain exceptions to this general rule, however, none of these exceptions apply to the case at bar.
In general, Kentucky law does permit the modification of an award of alimony that is to be paid in installments. Richey v Richey, supra; Renick v Renick, 247 Ky 628; 57 SW2d 663 (Ky App, 1933). However, where a divorce decree incorporates the terms of a full and final property settlement agreement that provides for the payment of alimony as an integral part of the settlement, Kentucky courts are without power to later modify the award of alimony. Richey v Richey, supra, Turner v Ewald, supra, Renick v Renick, supra. The Kentucky rationale for this rule is that the parties’ agreement constitutes a contract for settlement of all claims between them, and, therefore, it would be unjust to permit a party to escape obligations under such a contract and yet avail himself of its benefits.
Thus, if the property settlement agreement executed by the parties in the case at bar was meant to be a full and final settlement of their respective claims against each other and the marital estate, then the divorce decree that embodied it is an unmodifiable final decree that is entitled to enforcement in Michigan courts. We find this to be the case, for by its very terms the agreement purported to be determinative of the parties’ rights in the distribution of their marital estate. Therefore, the lower court properly held that the Kentucky decree of divorce was a final judgment and that its terms could be enforced in a Michigan proceeding.
Having decided that the Kentucky judgment of divorce is enforceable in a Michigan proceeding, we turn to defendant’s arguments relating to certain defenses to specific items in the property settlement provisions of the divorce judgment. Defendant first contends that plaintiff was dilatory in asserting her rights under the Kentucky divorce decree and, therefore, her claim for enforcement is now stale and barred by the doctrine of laches.
Laches has been held in Michigan to bar an action to recover accrued alimony. Rybinski v Rybinski, 333 Mich 592; 53 NW2d 386 (1952). Mere lapse of time, however, without a showing of prejudice will not give rise to the defense of laches. As the Supreme Court stated in Manheim v Urbani, 318 Mich 552, 555; 28 NW2d 907 (1947): ”[I]t must appear the delay resulted in some prejudice to the party asserting laches which would make it inequitable to disregard the lapse of time and incidental consequences”.
The facts, as adduced in the lower court, show that the lapse of time between the date of the divorce decree and plaintiffs attempt to enforce it in Michigan was approximately 9 years. The lower court found that plaintiff was guilty of laches in enforcing her rights under the divorce decree because she did not conduct a diligent search for defendant until just prior to the filing of her complaint in the instant matter. However, the lower court also found that defendant had made no attempt to comply with the terms of the Kentucky judgment of divorce and, further, that he had made his whereabouts unknown for a period of about 4 years.
Upon giving due regard to these opposing equitable considerations, the lower court extinguished plaintiffs right to alimony payments that accrued prior to the date that she filed her complaint in the instant action. Given the equitable nature of the defense of laches, we hold that the trial court did not abuse its discretion when it refused to recognize this defense as a total bar to plaintiffs action. Defendant was in no way prejudiced by the delay of plaintiff in bringing the instant suit to enforce the Kentucky divorce decree. Manheim v Urbani, supra.
Defendant next argues on appeal that it was error for the trial court to award plaintiff the value of certain stock given her in the Kentucky divorce decree but which was lost when defendant failed to pay off a loan for which it was security. Defendant contends that there is no evidence in the lower court record that establishes the value of this stock. We disagree and affirm the lower court’s award.
Plaintiff asserted in a verified complaint that she was awarded certain stock in the Kentucky divorce judgment and that this stock was worth $8,373.50. Defendant did not deny this evaluation of the stock in his answer to plaintiff’s complaint or at the referee’s hearing; rather, he merely argued that he owed no stock to plaintiff.
At the referee’s hearing, plaintiff’s counsel referred to this stock by its value and questioned plaintiff as to where she acquired it. Plaintiff’s answer to this question reasonably can be interpreted to affirm the value of the stock as stated in her attorney’s question.
Findings of fact made by a trial court sitting without a jury may not be overturned on appeal unless they are found to be clearly erroneous. GCR 1963, 517.1. We cannot say that in interpreting plaintiffs answer in the above manner the trial court was clearly erroneous.
Defendant’s final issue on appeal is that the trial court abused its discretion when it ordered defendant to reimburse plaintiff for $500 that she had given her Kentucky attorney after the divorce proceedings when defendant had failed to comply with an order of the Kentucky circuit court to do so. Defendant’s argument on appeal, as it was in the court below, is that every action must be prosecuted in the name of the real party in interest. MCL 600.2041; MSA 27A.2041. Because the Kentucky attorney and not plaintiff was the real party in interest over the attorney fees, plaintiff could not enforce this part of the judgment in a Michigan proceeding without an assignment.
There are two questions involved in our disposition of this issue: Does an award of attorney fees create an enforceable right in an attorney to collect them or in the party represented by that attorney to collect them; and is the taking of evidence closed after the completion of a hearing before a referee, or may a party submit additional evidence to the court prior to the time that the court makes it’s ultimate decision?
A valid foreign judgment for attorney fees awarded in a divorce action ordinarily will be recognized and enforced in other states. In the case at bar, defendant does not argue that the award of attorney fees in the original Kentucky action was not valid.
There appear to be no Michigan or Kentucky cases that discuss the issue of whether a party in a divorce proceeding can enforce an award of attorney fees made to the attorney that represented them. However, there seems to be no valid reason why that party could not enforce the award.
If an award of attorney fees is characterized as being made to the party on behalf of their attorney then, clearly, that party could enforce the award just as they could any judgment. On the other hand, if an award of attorney fees is characterized as being made to the attorney on behalf of the client that was represented by that attorney, then the client should be seen as an intended beneficiary of the award. This is so because the client has a contract with the attorney to pay the fees. To the extent that this contractual obligation is lessened, the client is a beneficiary of the award of attorney fees. By statute, MCL 600.1405; MSA 27A.1405, and by case law, Ireland v Lester, 298 Mich 154; 298 NW 488 (1941), a third party beneficiary to a contract has the same right to enforce that contract as they would have were they a party to it. Therefore, a party who is awarded attorney fees should be able to enforce that award regardless of whether the award is seen as being made to the party on behalf of the attorney or to an attorney on behalf of the client.
Neither party has briefed the issue as to whether additional evidence may be presented to a court prior to the time that the court issues an opinion but subsequent to the closing of a referee’s hearing. Further, there is no Michigan case that disposes of this question.
In the case at bar plaintiff testified at the referee’s hearing that she had paid her Kentucky attorney $500 when defendant failed to comply with an order of the Kentucky circuit court to do so. Defendant did not rebut this assertion of plaintiff at the hearing. Rather, he merely argued that this award was not enforceable. After the hearing, however, defendant presented to the trial court two letters that tended to show that he had paid the Kentucky attorney fees.
We hold that this evidence came too late and that it was proper for the lower court to refuse to consider it. After defendant consented to the taking of evidence before a referee, he could not thereafter submit additional proofs without the leave of the circuit court judge that referred the matter to the referee. GCR 1963, 527.1. Not only did defendant fail to request leave of the court to present additional evidence, he filed objections to the recommendations of the referee and stipulated that this matter be submitted to the circuit court on only briefs in letter form with a transcript of the evidence.
Because, therefore, defendant did not seek its leave to open proofs, the lower court did not abuse its discretion by refusing to consider the evidence submitted by defendant after the referee’s hearing was concluded. To hold otherwise, we would encourage the use of subterfuge in the offering of evidence which an opposing party might have little chance to rebut after the closing of a hearing before a referee.
Affirmed. Plaintiff may assess costs.
D. E. Holbrook, P.J., concurred.
Defendant was not ordered to pay child support for the elder of his two children who was over the age of 18 at the time of the URESA order.
This rule was changed by a 1972 Kentucky statute. In pertinent part, Acts 1972, Ch 182, § 8(6); KRS 403.180(6), a section that specifically deals with the incorporation of settlement agreements in marriage dissolution decrees, provides that such decrees may be modified.
However, the provisions of this statute apply only to divorce judgments entered after its effective date. See Scott v Scott, 529 SW2d 656, 657 (Ky App 1975) (holding, "[W]e are of the opinion that the 1972 Act cannot be given effect to impair a contractual right to maintenance vested * * * prior to enactment of the statute.”).
Inter alia, the property settlement agreement provides:
"15. Except as otherwise herein provided, the plaintiff hereby releases the defendant and his estate from any and all claims of alimony in the event of their divorce and all rights of any and every kind whatsoever in or to any of his property, except as herein provided.
"16. In the event there is a judgment or decree of divorce entered, this agreement may be made a part of said judgment.”
Defendant does not assert that plaintiffs claim is barred by either the Michigan or a Kentucky statute of limitations. Therefore, defendant has waived any such possible defense and we do not consider its appropriateness. GCR 1963,116.1.
Plaintiff does not appeal the order of the lower court that extinguished her right to the accrued alimony. We do not decide, therefore, whether the defense of laches was a bar to the collection of this money.
See 27B CJS, Divorce, § 373, pp 863, 866. | [
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T. M. Burns, J.
The important questions in these consolidated cases relate to the effect of MCL 691.991; MSA 26.1146(1) on the indemnity contract between third-party plaintiff, Clark Equipment Company (Clark) and third-party defendant, B. L. Harroun & Son, Inc. (Harroun) and, if the statute does not void the entire indemnity portion of a contract, did the trial court properly instruct the jury on the showing Clark was required to make to recover under the indemnity agreement. Clark also seeks review of two evidentiary questions.
Harroun contracted with Clark to install an overhead sprinkler system in one of Clark’s facilities. One clause of the contract provided that Harroun indemnify Clark as follows:
"It is understood and agreed that the seller will indemnify and save harmless the buyer from and against any and all claims for injury or death to persons or damage to property (including costs of litigation and attorney’s fees) in any manner caused by, arising from, incident to, connected with or growing out of the work to be performed under this contract, regardless of whether such claim is alleged to be caused, in whole or in part, by negligence or otherwise, on the part of the buyer or its employees. Seller will promptly notify buyer in writing of any such claim, setting forth all details thereof known to seller.”
On September 7, 1971, three Harroun employees were continuing the work which had begun several weeks earlier. Robert Ford and Lee Trim were working near the ceiling on a platform provided by Harroun. This platform apparently rested on the steel beam superstructure of the building, but was not secured to it in any way. As the work progressed, the Harroun employees would skid the platform along the steel to the next connection point. This skidding of the platform eventually brought Trim and Ford directly over one of the main aisleways of the plant.
In performing their work, Ford and Trim brought sections of pipe from the floor to the platform. To accomplish this, one end of a rope was tied to the platform and the opposite end lowered to the third employee who would tie it to the pipe. The men on the platform would then pull the rope, with the pipe, up to the platform. Unfortunately, the rope was not coiled on the platform as it was brought up, but was allowed to dangle down and form a loop.
Clark had not discontinued its operation while the sprinkler system was being installed. While the Harroun employees were on the platform pulling up the pipe, a hi-lo driver entered the building and proceeded down the aisle. The protective overhead cage of the hi-lo caught the loop which was formed by the rope and severely jerked the platform. Both Trim and Ford lost their balance and fell to the floor. Ford was killed in the fall and Trim was knocked unconscious.
Ford’s estate and Trim brought separate actions against Clark. Upon receipt of the complaint, Clark wrote to Harroun demanding that it assume the defense and indemnify Clark under the contract. The demand was refused. Clark then started the third-party actions involved in this appeal alleging both the contractual right to be indemnified and a claim of common law indemnity.
After substantial discovery was completed, Clark and the original plaintiffs reached a tentative settlement of the original suits. Clark informed Harroun that unless Harroun agreed to assume the defense on behalf of Clark and agreed to hold Clark harmless under the contract, Clark would consent to judgments of $50,000 in the Ford case and $3,500 in the Trim case. Harroun again refused to take over the defense because it believed the contractual indemnity agreement was void and because it believed that Clark could prevail on the merits at trial.
After the refusal to take over the defense, Clark consented to judgments in the amounts noted above and these judgments have been satisfied. The third-party action then proceeded to trial. Under the court’s instructions, the jury found for Harroun. Clark appeals in each case and we have consolidated the cases for review.
I
The first problem we must deal with is the effect of MCL 691.991; MSA 26.1146(1) on the contractual indemnity provision quoted above. The statute provides:
"A covenant, promise, agreement or understanding in, or in connection with or collateral to, a contract or agreement relative to the construction, alteration, repair or maintenance of a building, structure, appurtenance and appliance, including moving, demolition and excavating connected therewith, purporting to indemnify the promisee against liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of the promisee or indemnitee, his agents or employees, is against public policy and is void and unenforceable.”
The court below, by its ruling and instruction, adopted Clark’s argument that the policy of the act could be enforced by merely striking so much of the contractual provision as would require Har-roun to indemnify Clark for Clark’s sole negligence. The agreement would, therefore, provide indemnity if Clark and Harroun were concurrently negligent, or if Clark were held liable because of Harroun’s negligence. Harroun argues that the entire indemnity provision of the contract is void and unenforceable.
The precise scope of this contract invalidating provision has never been stated. Compare, Brda v Chrysler Corp, 50 Mich App 332; 213 NW2d 295 (1973), with Nanasi v General Motors Corp, 56 Mich App 652; 224 NW2d 914 (1974). After considering the arguments raised by the parties, we conclude the more appropriate rule is that applied in Robertson v Swindell-Dressler Co, 82 Mich App 382, 400; 267 NW2d 131 (1978). The rule is concisely stated in 17 CJS, Contracts, § 289(a), p 1220: "A lawful promise based on good consideration is not invalid because an unlawful promise is made for the same consideration.”
In this case Harroun, in effect, made two promises in the indemnity clause; to indemnify for Clark’s sole negligence and to indemnify if the injury was caused "in part” by Clark’s negligence. Both promises are supported by the same consideration. Only the first promise is made illegal by the construction statute. The promise to indemnify Clark even if Clark was partially responsible for the accident or injury is not voided by the statute and may be enforced. It does no violence to either the contracting party’s intent or the statute to sever this independent, unenforceable promise from the rest of the indemnity clause on the facts of this case. See, Robertson v Swindell-Dressler Co, supra.
11
Having concluded that Clark may have indemnity under the contract in a proper case, unless it was solely responsible for the accident, we must next determine if the trial court correctly instructed the jury concerning what Clark must show in order to recover. The parties have stated the dispute to be over whether the indemnitee, Clark, must show "actual” or "potential” liability to Trim and Ford. Neither party has directed our attention to specific Michigan authority which covers this situation, and we have found none.
The trial court, by its instruction, required a showing of actual liability from Clark to Ford and Trim. In other words, Clark was forced to prove, under its contractual indemnity theory, that it was negligent and that Ford and Trim were free from contributory negligence and additionally, to satisfy the construction statute, it was required to show that the injuries were not the result of Clark’s sole negligence. For the reasons expressed below, we hold this was reversible error.
The policy of this state is to encourage settlements of suits. The settlement of a suit benefits both parties and the public. If this policy is to be effective, the burden on the defendant who settles after a tender of the defense to the contractual indemnitor is refused must not be too heavy. Cf. Morrissette v Sears, Roebuck & Co, 114 NH 384; 322 A2d 7 (1974). We, therefore, hold that to recover on the contract of indemnity, Clark need show only its potential, as opposed to its actual, liability to Trim and Ford. See discussion in Tankrederiet Gefion A/S v Hyman-Michaels Co, 406 F2d 1039, 1043, (CA 6, 1969).
We would be derelict in our duty to end the discussion at this point for the term potential liability means many things to many courts. We will attempt, therefore, to explain what this term means to us and what must be shown by the contractual indemnitee or indemnitor to recover or to avoid recovery. The present discussion must be limited in application, of course, to cases of the type involved here, that is, an enforceable contract of indemnity exists, a seasonable tender of defense with notice that a settlement will be entered is made and the tender of defense is refused.
To recover under these circumstances the in-demnitee must show that the fact situation of the original claim is covered by the contract of indem nity and that the settlement is reasonable. Parfait v Jahncke Service, Inc, 484 F2d 296 (CA5, 1973).
Potential liability actually means nothing more than that the indemnitee acted reasonably in settling the underlying suit. The reasonableness of the settlement consists of two components which are interrelated. The fact finder must look at the amount paid in settlement of the claim in light of the risk of exposure. The risk of exposure is the probable amount of a judgment if the original plaintiff were to prevail at trial, balanced against the possibility that the original defendant would have prevailed. Chicago, R I & P R Co v Dobry Flour Mills, 211 F2d 785 (CA10, 1954), Wisconsin Barge Line, Inc v Barge Chem 300, 546 F2d 1125 (CA 5, 1977). If the amount of the settlement is reasonable in light of the fact finder’s analysis of these factors, the indemnitee will have cleared this hurdle. The fact that the claim may have been successfully defended by a showing of contributory negligence, lack of negligence or otherwise, is but a part of the reasonableness analysis and, therefore, subject to proof. Moses-Ecco Co v Roscoe-Ajax Corp, 115 US App DC 366; 320 F2d 685 (1963).
If it is shown that this suit would have been successfully defended, the indemnitee will not recover. The burden of presenting evidence on this point is on the indemnitor, but the ultimate burden of persuasion remains with the indemnitee to show that the settlement was reasonable under all the circumstances.
Because of the construction statute discussed in Part I of this opinion, the indemnitee must also show that the contract covers the situation. In the present case, that means that Clark must show, in addition to the reasonableness of the settlement as outlined above, that the liability was not the result of Clark’s sole negligence.
The trial court was correct in submitting the case to the jury because questions of fact exist on many points. Neither side was or is entitled to prevail as a matter of law. The standard under which the case was submitted was erroneous and requires a new trial where the potential, as opposed to the actual, liability of Clark will be the issue.
Ill
The disposition in Part II renders extended discussion of the evidentiary questions raised by Clark unnecessary. We mention them only to guide the trial court in the event of a retrial.
The trial court ordered references to insurance struck from both the contract between Clark and Harroun and a letter between the parties before these documents were admitted as evidence. Clark claims this evidence should have been admitted to counteract Harroun’s counsel’s remark in his opening statement that the case envolved the "big corporation, Clark on the one hand” and "Har-roun, a small, family corporation” on the other. Clark did not object to this statement below nor does it seek reversal on that ground here. We do not condone the statement, but it does not necessarily follow that Clark would be justified in introducing evidence that Harroun was insured. The question will be controlled by MRE 411 on a retrial. See, 2 Weinstein’s Evidence, ¶ 11[05], p 411-11.
Clark also objected to the presentation of expert testimony which embraced the conclusion that Clark was not negligent in this accident. The court admitted the testimony under former GCR 1963, 605 (repealed February 23, 1978, see 402 Mich cxxxiii. The matter will be controlled by MRE 702 and 704 on a retrial. We would note that a condition to admission under Rule 704 is that the evidence be otherwise admissible and, therefore, the proposed expert opinion must meet the requirements of Rule 702.
Reversed and remanded for proceedings not inconsistent with this opinion.
The third Harroun employee had left the area to get more materials and was, therefore, not acting as a lookout. There was testimony that one of the duties of the third employee who remained on the ground was to act as a lookout.
Trim gradually improved and returned to work. The only lasting effect of the fall was blurred vision which his doctors have assurred him will eventually disappear.
Some courts would apparently forbid any inquiry into the possibility that the original suit may have been successfully defended where a tender of defense of that suit has been rejected. See, e.g., Missouri Pacific R Co v Arkansas Oak Flooring Co, 434 F2d 575 (CA8, 1970). We have rejected this approach because it restricts the proof under the concept of reasonableness more than is necessary to assure that the interest of both parties will be protected. | [
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Per Curiam.
Defendant entered into a plea bargain with the prosecution in which he pled guilty to the crime of armed robbery, MCL 750.529; MSA 28.797, in exchange for the dismissal of numerous other pending charges. At sentencing, defendant was given credit for time served on the armed robbery charge on which he was convicted, but not for the time served on the other charges which were dismissed as a result of his guilty plea. Defendant contends that the failure to grant credit for time served on these dismissed charges is a violation of MCL 769.11b; MSA 28.1083(2). We agree.
This Court has stated on numerous occasions that this jail credit statute is to be liberally construed in accordance with its remedial purpose. See, e.g., People v Lyles, 76 Mich App 688; 257 NW2d 220 (1977), People v Finn, 74 Mich App 580; 254 NW2d 585 (1977); People v Chattaway, 18 Mich App 538; 171 NW2d 801 (1969). This purpose "is to put an accused who cannot post bail due to his indigency on an equal status with his counterpart who can”. People v Andrews #1, 52 Mich App 719, 726; 218 NW2d 379 (1974), rev’d on other grounds, 392 Mich 775; 220 NW2d 36 (1974). Accord, People v Pruitt, 23 Mich App 510, 513; 179 NW2d 22 (1970).
Applying these precepts to the present case, it becomes clear that defendant must be given credit for time served on the charges dismissed as a result of the guilty plea. A defendant arrested on numerous charges who posts bond on all the charges and subsequently pleads guilty to one charge in return for a dismissal of the rest receives no punishment on the dismissed charges. Consequently, in accordance with the purpose behind the jail credit statute, a defendant similarly situated except for his inability to post bond must also suffer no punishment on the dismissed charges. Since he has already served time on these charges, the only way he can again be placed on an equal footing with his counterpart is to be given credit for the time served on all the charges encompassed by the guilty plea, including those which were dismissed.
In the present case this was not done. Thus, pursuant to OCR 1963, 820.1(7), defendant shall be given an additional credit of 119 days, computed as follows: 20 days for the time served on the dismissed possession of heroin charge, and 99 days on the dismissed pandering charge.
Affirmed as modified. | [
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D. E. Holbrook, J.
Plaintiff Kay M. Stover seeks worker’s compensation benefits for the death of her husband, Arthur W. Stover, who was killed in the crash of a light aircraft on March 31, 1973, near Niles, Michigan.
Mr. Stover owned 90 per cent of the stock of defendant Midwest Tank and served as that company’s president. He drew no salary and his presence was not normally required at the company’s manufacturing site in Buchanan, Michigan. Stover was usually present the bulk of each week in Owensboro, Kentucky, location of yet another firm which he served as president. He returned to Michigan, where his wife resided and where he had other, additional business interests, on weekends.
Stover used the telephone to keep in contact with the salaried vice-presidents of Midwest Tank during the week. In addition, he frequently met with them in Michigan on weekends. According to the testimony of one of the vice-presidents, Stover contributed valuable financial expertise to the management of Midwest Tank; the two vice-presidents were familiar only with the production and engineering components of Midwest’s operation, and valued Stover’s contribution to the management of Midwest at approximately $400 per week.
The airplane in which Mr. Stover died was leased in the name of Midwest, which collected the insurance proceeds on it after the crash. The pilot’s salary was also paid by Midwest, and his employment contract required that any time not spent piloting or maintaining the airplane be spent at Midwest’s direction. The craft was apparently used primarily by Stover to travel between Michigan and Kentucky. During the week, however, it remained in Niles and was used infrequently for Midwest business or by Midwest personnel for personal business. Nevertheless, Stover made the lease payments and covered the maintenance expenses on the aircraft personally.
On the weekend of the crash, Mr. Stover was scheduled to attend a conference in Michigan to finalize arrangements for a loan which would allow Midwest to purchase its leased plant site. One of Midwest’s vice-presidents testified that Stover’s presence at this meeting was essential and noted that after Stover’s death the transaction fell through. The pilot flew to Owensboro to pick up Stover; together they flew to Nashville, Tennessee, returned to Owensboro, then crashed attempting to land in Niles on their return to Michigan.
Mrs. Stover’s petition for worker’s compensation benefits was denied on April 17, 1975, by the administrative law judge who found that Stover’s "fatal accident did not arise out of and in the course of’ his employment with Midwest Tank. The Workmen’s Compensation Appeal Board reversed this decision on August 15, 1977, and ordered payments of $94 per week for a period not to exceed 500 weeks. Defendants-appellants’ application for leave to appeal to this Court was granted on April 26, 1978. Defendants contend that the board erred in its finding that plaintiffs husband was an employee of Midwest Tank and in its holding that Stover’s death arose out of and in the course of his employment.
It should be noted at the outset that, under MCL
418.861; MSA 17.237(861): "The findings of fact made by the board acting within its powers, in the absence of fraud, shall be conclusive.” If there is evidence in the record to support the board’s findings of fact, they will not be disturbed on appeal. Scroggins v Corning Glass Co, 382 Mich 628; 172 NW2d 367 (1969). As this Court stated in Lemanski v Frimberger Co, 31 Mich App 285, 286-287; 187 NW2d 498 (1971): "Fact findings by the Workmen’s Compensation Appeal Board, supported by proof, are binding on this Court.” Nevertheless, under Howard v Detroit, 377 Mich 102, 105-106; 139 NW2d 677 (1966), it was stated:
"We are not here, however, concerned with eviden-tiary facts, their weight or their credibility. We are concerned with the ultimate conclusion. This finding is, in reality, a legal conclusion based upon the record by application thereto of legal principles established by precedent opinions of this Court.”
In the instant case the evidentiary facts are not in dispute and we must determine if a conclusion of the appeal board on the facts is supportable.
Initially, we must determine then which of the appeal board’s conclusions represent findings of fact, binding on this Court on appeal, and which of the board’s conclusions represent ultimate decisions of the legal issue at hand, "legal inferences from other facts” as it were, subject to review. The board found that "Mr. Stover was an employee of defendant Midwest” and that he "was in the course of his employment at the time of the plane crash”. The board based the latter finding on its determination that "that [fatal] trip was necessitated by the urgency of the scheduled meeting” alluded to above; it also directed attention to the evidence indicating that Stover’s airplane was leased in the defendant’s name, and that Stover’s presence at this meeting was "vital to defendant’s continued existence”. Clearly, the board’s conclusion that Stover’s death arose out of his employment was an ultimate conclusion — a legal inference drawn from other facts. As such, this finding is open to review by our Court.
The board’s determination that Stover was employed by the defendant was based primarily upon the following testimony of one of the defendant’s vice-presidents, which the board adopted in its opinion:
"Q- [by plaintiff’s attorney] Well, did he [Stover] do anything more with the business than merely invest dollars in it?
"A. In an advisory capacity.
"Q. * * * What kind of advice did he provide for the company?
"A. Methods that he thought we should follow in the —in the course of the business. He was much more aware of business than I and, I am sure, Mr. Fisher, also. * * *
"Q. He provided some business expertise, then?
"A. I would suppose you could state it that way, yes.”
In responding to counsel’s suggestion that $400 per week would be a reasonable value for Stover’s services, the vice-president replied:
"If he were an active person in the capacity of the president of this corporation, $400 would not be enough. In the capacity that he acted, the things that he told us we could do, the availability of materials through different areas, I think, yes.”
This testimony, taken together with evidence showing Stover’s participation in the management of defendant’s business through regular weekend conferences and occasional telephone calls, provides strong support for the board’s determination that Stover was a "person in the service of [the defendant], under any contract of hire, express or implied”. MCL 418.161(b); MSA 17.237(161)(b). This finding is not an "ultimate” conclusion open to review under Howard, supra; rather, it is that type of rudimentary finding which is particularly within the province of the appeal board. Since, as noted above, there is evidence to support this finding we are bound by the board’s conclusion that Stover was an employee of the defendant.
We must consider, then, whether the board was correct in its ultimate finding that Stover’s death arose out of and in the course of his employment under MCL 418.301; MSA 17.237(301). The general rule under these circumstances is that an employee traveling to or from work is not covered by workmen’s compensation. Stark v L E Myers Co, 58 Mich App 439; 228 NW2d 411 (1975), lv den 394 Mich 814 (1975), Pappas v Sport Services, Inc, 68 Mich App 423; 243 NW2d 10 (1976), lv den 397 Mich 825 (1976). As pointed out in these cases:
"This general rule however has been repeatedly riddled with exceptions to the extent that it seems to have become an exception to the exceptions. From this consequent erosion of the general rule, it would appear that there is arising through evolution a new rule which compensates where 'there is a sufficient nexus between the employment and the injury’ so that it may be said that the injury 'was a circumstance of the employment’.” (Citations omitted.) Stark, at 442-443.
In order to establish the nexus referred to, the Stark Court extrapolated from previous decisions four
"[c]onsiderations relevant to the ultimate determination of whether an injury to an employee while on the way to work is sufficiently employment-related to be compensable * * * :
"1. Whether employer paid for or furnished employee transportion, * * *
"2. Whether the injury occurred during or between working hours, * * *
"3. Whether the employer derived a special benefit from the employee’s activities at the time of the injury,
"4. Whether the employment subjected the employee to excessive exposure to traffic risks.” (Citations omitted.) Stark, at 443.
Due to Stover’s unusual and irregular working hours, we do not rule upon whether or not the injury occurred "during or between working hours”, nor do we rule that Stover’s employment with Midwest subjected him to excessive travel risks.
The evidence taken in the instant case does indicate, however, that defendant Midwest Tank played a substantial role in furnishing Stover with the subject aircraft. First, Midwest paid the pilot’s salary. Further, the evidence that Midwest utilized the craft for corporate purposes; that the craft was leased in Midwest’s name; that Stover turned the proceeds given him by a personal friend who borrowed the plane over to Midwest; and that Midwest retained the insurance proceeds from the plane for its own use, all indicates that Midwest and not the decedent owned the aircraft in which Stover was killed.
The appeal board also found that deceased’s presence was required at the "urgent” conference due to take place on the weekend of the crash. Despite the fact that Stover generally did make similar trips for personal reasons, there is evidence to support this determination, rendering it conclusive on appeal. This finding indicates that Midwest would indeed have derived a special benefit from Stover’s return to Michigan on that weekend.
Given that the facts of the instant case substantially satisfy two of the relevant considerations set forth in Stark, we hold that the appeal board did not err in its determination of the ultimate question before it: Stover’s injury did arise out of his employment for purposes of the workmen’s compensation act. Therefore, there were no errors of law in the proceeding below and the decision of the Workmen’s Compensation Appeals Board was correct.
We have assumed that Howard, supra, was not overruled sub silentio by subsequent cases such as Johnson v Vibradamp Corp, 381 Mich 388; 162 NW2d 139 (1968), which have applied MCL 418.161 to foreclose review of the board’s determination of apparently "ultimate” conclusions, based on facts in the record. If we are mistaken as to this assumption, our result is, of course, the same.
Affirmed. Costs to plaintiff.
The fact that Stover dominated the defendant Midwest Tank as a 90 per cent shareholder did not, in the absence of allegations of fraudulent or improper use of the corporate form, preclude him from contracting with Midwest Tank for purposes of the Worker’s Disability Compensation Act. See, Gottlieb v Arrow Door Co, 364 Mich 450; 110 NW2d 767 (1961). | [
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J. H. Gillis, P.J.
On March 30, 1977, Judge William F. Hood granted plaintiff a judgment of divorce from defendant. That judgment provided in part that plaintiff have the care, custody, control and supervision of the parties’ three children, Todd, Scott and Brad. On August 11, 1977, defendant filed a petition to change custody of the children from plaintiff to himself. After a hearing on the petition on September 9, 1977, Judge Hood filed an order modifying the judgment of divorce thereby giving custody of the three children to defendant.
Plaintiff later filed a motion to set aside that order modifying the judgment of divorce and plaintiffs motion was granted since the court lacked jurisdiction for certain technical reasons. Defendant then filed a second petition for change of custody and a hearing was held on that petition on May 9, 1978. Again, Judge Hood acted favorably to defendant and ordered a change of custody from plaintiff to defendant. It is from this final order that plaintiff appeals as of right.
The guidelines for appellate review of custody decisions is set forth in the Child Custody Act of 1970, MCL 722.28; MSA 25.312(8):
"To expedite the resolution of a child custody dispute by prompt and final adjudication, all orders and judgments of the circuit court shall be affirmed on appeal unless the trial judge made findings of fact against the great weight of evidence or committed a palpable abuse of discretion or a clear legal error on a major issue.”
See also Feldman v Feldman, 55 Mich App 147; 222 NW2d 2 (1974), Radway v Radway, 81 Mich App 328; 265 NW2d 202 (1978).
When a custody dispute is between parents, the best interests of the child shall control. MCL 722.25; MSA 25.312(5). The act also provides that the court shall not change the established custody of the child unless clear and convincing evidence is presented that the change is in the best interests of the child. MCL 722.27(c); MSA 25.312(7)(c), Parrott v Parrott, 53 Mich App 635; 220 NW2d 176 (1974).
The modification of the divorce judgment changed the custody of the children from the mother to the father. As is required by the act, the trial court made specific findings on the factors which make up the "best interests of the child”. MCL 722.23; MSA 25.312(3). Our review of the record convinces us that the trial court did not make erroneous findings nor commit a palpable abuse of discretion which would justify reversal.
The trial court found specifically in favor of the father on three of the factors; stable environment, permanence, as a family unit, of the home, and moral fitness. As to the remaining factors the trial court found the parties were equal.
In addition to that evidence cited by the trial court, we note other testimony which supports the conclusion that it is clearly in the best interests of the children to award custody to defendant. The children were doing well in school and were receiving proper care in their father’s home according to an investigator from the friend of the court. The friend of the court also recommended that the children stay with their father.
There was testimony from plaintiff that her new husband (Healy) had struck her and "pretty near knocked her teeth out”. Testimony also disclosed that this was Healy’s third marriage.
Defendant sent plaintiff a blank check while she was cohabiting with Healy, prior to their marriage, so she could move herself and the children into a place of their own. This testimony was supplied by the plaintiff.
We believe this evidence supports the trial court’s findings in favor of the defendant. In addition, the trial court found in favor of neither party on the "preference of the child” factor. There was testimony from both plaintiff and defendant that the children preferred to live with their father. We would be inclined to find in favor of the father as to this factor in addition to those so found by the trial court.
We are convinced that it is in the best interests of the children to award custody to their father. Therefore, the order of the lower court granting custody to defendant is affirmed.
Affirmed. Costs to appellee.
D. E. Holbrook, J., concurred. | [
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Per Curiam.
Jarrell Henson was convicted of possession of heroin with intent to deliver, in violation of MCL 335.341(l)(a); MSA 18.1070(41)(l)(a), and sentenced to not more than 40 nor less than 10 years imprisonment. He appeals as of right.
An examination of the record and briefs dis closes no prejudicial error. The testimony of which defendant complains was properly admitted as part of the res gestae. People v Savage, 225 Mich 84, 86; 195 NW 669 (1923), People v Scott, 61 Mich App 91; 232 NW2d 315 (1975). Any error in the closing argument was cured by a timely instruction. People v Hall, 396 Mich 650, 656; 242 NW2d 377 (1976), People v Castaneda, 81 Mich App 453, 462; 265 NW2d 367 (1978).
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Per Curiam.
Plaintiff brought this condemnation action against the defendants on June 15, 1973. Prior to trial the defendants incurred substantial legal expenses in challenging the authority of the plaintiff to acquire property through condemnation proceedings without a referendum of the people. Prior to trial the plaintiff filed a notice of discontinuance of the action. Defendants filed motions for attorney fees and appraisal preparation fees. The trial court awarded attorney fees in the amount of $7,548.25 and appraisal fees in the amount of $8,000. Plaintiff appeals, alleging that the award of attorney fees was improper.
It has long been the rule that attorney fees may not be taxed and awarded as costs in condemnation cases unless specifically authorized by statute or by court rule, Hester v Commissioners of Parks and Boulevards of the City of Detroit, 84 Mich 450; 47 NW 1097 (1891); Detroit Edison Co v Janosz, 350 Mich 606; 87 NW2d 126 (1957). In condemnation cases, except those dismissed after the jury is impaneled, attorney fees are authorized by MCL 213.37; MSA 8.27, only up to a maximum of $25. No jury having been impaneled in this case, the award of attorney fees may not exceed $25.
Defendants contend that the rule regarding attorney fees in condemnation cases was abrogated by the adoption of GCR 1963, 504.1(2), which confers upon the trial court the power to dismiss upon motion of the plaintiff upon such terms and conditions as it deems just and proper. While this rule may empower the court to tax costs as a condition of dismissal, it may still tax only those costs authorized by statute, GCR 1963, 526.1. Attorney fees are taxable only as authorized by statute, MCL 600.2405; MSA 27A.2405.
We are not unsympathetic to defendants’ plight. They have gone to considerable expense preparing to defend an action which was dismissed over their objection, with no guarantee that they will not be subjected to a new proceeding with its attendant expense. However, we are bound by the statutes and court rules. In the case at bar, the applicable statute authorizes attorney fees up to a maximum of $25, MCL 213.37; MSA 8.27. The trial court erred in awarding a greater amount as attorney fees.
The award of attorney fees is reversed. We remand to the trial court! for an award of attorney fees not to exceed $25. Plaintiff may tax its costs of appeal.
Cases dismissed after a jury has been impaneled are governed by MCL 213.38; MSA 8.28, which authorizes reasonable attorney fees. | [
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T. M. Burns, J.
Defendant was convicted after a jury trial for carrying a pistol in a motor vehicle, MCL 750.227; MSA 28.424, and sentenced to serve two to five years in prison. Defendant made several attempts both before and during the trial to have the pistol suppressed as the product of an illegal search and seizure under the Fourth Amendment. The only issue raised on appeal relates to the seizure of the pistol.
As in all search and seizure questions, the determination of whether the police acted within the boundaries of the Fourth Amendment must be based upon the specific facts presented. On the facts of this case, the police action was justified as a protective measure under the rationale of Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968), and Adams v Williams, 407 US 143; 92 S Ct 1921; 32 L Ed 2d 612 (1972).
In the early morning hours of June 10, 1976, a Saginaw police officer, alone in his patrol car, noticed a van parked beyond the curb, blocking the entrance doors to a building. The officer knew that an illegal "after hours” establishment was being run in this building. At roll call that morii-ing, the officer had been told that a young black man who had been arrested for the armed robbery of similar after hours establishments had escaped from the hospital. The officer also knew that this area was noted for the high incidence of crime.
Defendant was seated in the driver’s seat of the van and a young black man was in the passenger seat. The officer knew the escaped suspect’s name, but had only a general description which would fit many citizens of Saginaw, including the individual seated in defendant’s van. Still, given the proximity to the "after hours” establishment, the officer decided to investigate the identity and purpose of the two individuals. Other officers were notified of this intention by radio.
The officer circled the block and pulled behind and to the side of the van. He was able to begin his approach to the van unnoticed by the occupants. When he did notice the officer, defendant’s eyes widened, as if surprised, and he made a quick movement down and forward, as if he were placing something between and to the rear of the seats. The officer immediately ordered defendant out of the van.
Defendant alighted from the van when ordered to do so and went to stand with another officer who had just arrived. At this point, the first officer could see a bulge in the carpet covering the floor of the van in the area into which defendant had just reached. The officer reached into the area and removed a .38-caliber Colt semi-automatic pistol fully loaded, cocked and ready to fire. Defendant’s companion, who had remained in the van up to this point and was within reaching distance of the bulge in the carpet, was then removed and a search revealed that he had a loaded revolver in his waistband.
Under the circumstances just described, the officer’s decision to order defendant out of the van, see Pennsylvania v Mimms, 434 US 106; 98 S Ct 330; 54 L Ed 2d 331 (1977), and investigate the area into which he had just reached can be justified as a protective search or limited intrusion for his own safety. As the majority noted in Adams v Williams, supra, "[t]he Fourth Amendment does not require a policeman who lacks the precise level of information necessary for probable cause to arrest to simply shrug his shoulders and allow a crime to occur or a criminal to escape”. 407 US at 145.
The officer was faced with two individuals in a high crime area under circumstances which led him to conclude that an impending robbery at the after hours joint was more than a mere possibility. When defendant saw the officer and made the move noted above, the officer believed defendant was hiding a weapon. The intrusion was limited to removing defendant from the van and checking this area to either confirm or immediately dispel his belief that defendant was armed.
It must be admitted that the officer did not, before discovery of the pistol, have probable cause either to arrest defendant or undertake a full scale search of the van. But, neither of those events occurred until after the first pistol was discovered. That first pistol, the one upon which this prosecution is based, was discovered in a limited protective search. Just as the officer in Adams, who did not have probable cause to search the defendant, was justified by the surrounding circumstances in checking the spot he believed a gun was hidden, 407 US at 148, so the officer in this case was justified in his limited intrusive act. An officer’s "suspicion” or conclusion based on his experience is entitled to some weight in our Fourth Amendment analysis. People v Ridgeway, 74 Mich App 306, 314; 253 NW2d 743 (1977), lv den, 401 Mich 831 (1977). The officer testified that he was sure defendant had a gun.
This case has certain similarities to People v Robertson, 81 Mich App 446; 265 NW2d 365 (1978), recently decided by this Court. In each case the seizure of a weapon from an area of a vehicle, not a person, can be justified under the self-protection for officers rationale of Terry and Adams. In each the area to be checked is drawn to the officer’s attention by a "furtive gesture” of one of the occupants of the vehicle. In each, the "furtive gesture” does not stand alone but is coupled with other factors indicating criminal behavior and giving a basis for the officer’s suspicion that a weapon had been hidden in a particular location in the vehicle.
It is the surrounding facts and circumstances, and the fact that the officer is looking for a gun, as opposed to drugs or other contraband, which distinguishes these cases from many of the other so called "furtive gesture” cases where a full search, dependent on probable cause, is involved. While this writer joined in suppressing evidence of a controlled substance seized in People v Strong, 77 Mich App 281; 258 NW2d 205 (1977), where the occupants made a movement in a van very similar to the movement here and would have suppressed marijuana evidence where the defendant did nothing more than drop a jacket over two clear vials in People v Hall, 40 Mich App 329, 340; 198 NW2d 762 (1972) (T. M. Burns, P.J., dissenting), in neither of those cases did the surrounding circumstances give the officer reason to believe that his own safety may be in danger. There is a vast difference between what an officer may expect to be confronted with in a campground, Strong, supra, or on an expressway in Van Buren County, Hall, supra, as compared to downtown Saginaw in the early morning. These differences in the surrounding circumstances justify a different police response. Actions and circumstances which may justify an officer’s protective search for weapons would not justify the same intrusion where the officer had no reason to suspect a weapon’s presence.
The trial court was correct in réfusing to suppress the pistol in this case.
Affirmed.
W. Van Valkenburg, J., concurred.
Defendant does admit that the fact of proximity to the after hours establishment may have given the officer reason to make an investigative stop. Given the circumstances detailed in the text, it seems clear that the officer’s choice to approach the van was reasonable under the Fourth Amendment. The problem lies only with his response after he began to approach the van.
The van was used in a business and contained only the two front bucket seats. The carpeting from the front area of the van met the carpeting from the back and overlapped slightly. The seam of the overlap ran from door to door rather than down the middle of the van. The bulge observed by the officer before he reached into the van was directly under this area of overlap. | [
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Bronson, J.
Defendants Carson and King were convicted by a jury of carnal knowledge of a female over 16 years of age contrary to MCL 750.520; MSA 28.788 and were sentenced to terms in prison of 6 to 10 years and 10 to 15 years respectively. Defendant Carson was also convicted of gross indecency contrary to MCL 750.338b; MSA 28.570(2) and was sentenced from 3 to 5 years in prison. Defendants appeal as of right.
The only evidence which directly tied defendants to the crimes was the testimony of the complaining witness. If believed, her testimony was suffi cient to establish all elements of the crimes charged. Defendants challenge their convictions on the grounds of insufficient evidence based upon the complainant’s lack of credibility. Credibility is a question for the jury. People v Renno, 392 Mich 45; 219 NW2d 422 (1974). A review of the record certainly does not demonstrate that complainant’s testimony was so entirely unbelievable as to be outside the realm of credibility. This being the case, the jury’s determination will not be disturbed on appeal. See People v Palmer, 392 Mich 370, 376; 220 NW2d 393 (1974), People v Smalls, 61 Mich App 53; 232 NW2d 298 (1975).
Defendants next allege that the trial court erred in allowing a witness to testify to a telephone conversation between the witness and complainant approximately 4-1/2 hours after the crimes. The trial court apparently permitted the testimony under the excited utterance prong of the res ges-tae rule. See McCormick, Evidence (2d ed), § 288, p 686.
Excited utterances are deemed reliable, and thus admissible, on the theory that the startling event suspends the witness’s reflective thought process and renders the person incapable of fabricating a story at the time the statement was made. McCormick, Evidence (2d ed), § 297, p 704. In recognition of this rationale, three conditions must be satisfied before a statement can be admitted as an excited utterance.
"(1) that there is a startling occasion, startling enough to produce nervous excitement, and render the utterance spontaneous and unreflecting; (2) that the statement must have been made before there has been time to contrive and misrepresent; and (3) the statement must relate to the circumstances of the occurrence preceding it.” Rice v Jackson, 1 Mich App 105, 111; 134 NW2d 366 (1965), accord, People v Mosley, 74 Mich App 145; 254 NW2d 33 (1977).
In the present case, the primary problem concerns condition number two. In considering the "time for contrivance” requirement a court must examine not only whether the time period between the event and the statement provided an opportunity for fabrication but also whether the witness’s emotional state during this time period rendered him capable of fabricating a story. These two factors cannot be considered in isolation but must be considered jointly.
In the present case 4-1/2 hours elapsed between the crimes and the telephone conversation in question. This is a sufficient time lag to provide a person with the opportunity for fabrication. Secondly, complainant testified that after the crimes she returned home and thought about what had just happened. There is no indication that she was in a state of continuous nervous excitement during this time period. Conversely, the evidence demonstrates that although understandably upset, complainant engaged in activities requiring contemplation and reflective thought. Therefore, since the time lapse provided sufficient opportunity for fabrication and her activities showed that she was capable of reflective thought during this period, her conversation with the witness could not be considered an excited utterance.
Although this testimony should not have been admitted, the error does not require reversal. The testimony was merely a reiteration of testimony given by the complainant to which no objection had been made. Complainant’s account of the conversation was objectionable on the same grounds as that of the present witness. No objection was made, however, and the evidence was admitted. Thus the objected-to testimony was merely cumulative and its admission or omission would not have affected the outcome of the trial. Therefore, the error was harmless. See People v Swan, 56 Mich App 22; 223 NW2d 346 (1974).
Defendants’ next contention is that the court erred in prohibiting defendant Carson’s mother from testifying about a telephone conversation she had with complainant. Allegedly, complainant stated that she did not wish to get defendants in trouble but that a close friend had been checking up on her and she had to tell him something to. explain why she had come home late. Defendants claim that the testimony was admissible as an admission. A statement qualifies as an admission only if it was made by a party opponent. See Ghezzi v Holly, 22 Mich App 157; 177 NW2d 247 (1970); MRE 801(d)(2). The complaining witness in a criminal prosecution is not a party opponent. 4 Wigmore, Evidence (Chadbourn Rev), § 1076, p 154.
Although not an admission, the statement could still qualify as a prior inconsistent statement. However, before testimony is admissible as a prior inconsistent statement, a proper foundation must be laid. The cross-examiner must identify the statement as to time, place and substance and ask the witness whether he or she made the statement. Upon receiving a denial or equivocal answer, the foundation has been laid and the cross-examiner may proceed to prove the making of the alleged statement. People v Dozier, 22 Mich App 528; 177 NW2d 694 (1970). Absent such a founda tion the statement is inadmissible. Since defendants did not lay the proper foundation, the trial court did not err in excluding the statement.
Finally, defendants contend that the trial court erred when it sentenced them upon retrial to harsher sentences than those imposed after their first trial. The Supreme Court has held that an increase in sentence upon retrial is not per se unconstitutional. North Carolina v Pearce, 395 US 711, 723; 89 S Ct 2072, 2079; 23 L Ed 2d 656, 668 (1969). The Court noted, however, that it would be impermissible to impose a harsher sentence merely as a penalty on a defendant for having successfully exercised his right to appeal. Realizing that the fear of such a retaliatory motive might serve to chill a defendant’s right to appeal, the Court adopted a prophylactic rule to be followed when an increased sentence is imposed upon retrial.
"In order to assure the absence of such a motivation, we have concluded that whenever a judge imposes a more severe sentence upon a defendant after a new trial, the reasons for his doing so must affirmatively appear. Those reasons must be based upon objective information concerning identifiable conduct on the part of the defendant occurring after the time of the original sentencing proceeding. And the factual data upon which the increased sentence is based must be made part of the record, so that the constitutional legitimacy of the increased sentence may be fully reviewed on appeal.” 395 US at 726; 89 S Ct at 2081; 23 L Ed 2d at 670.
Subsequent Supreme Court cases have served to limit the application of the Pearce rule in analogous situations. A review of these cases demon strates that the determinative factor in deciding upon the applicability of the rule is whether the increased sentence in the second proceeding poses "a realistic likelihood of 'vindictiveness’ Blackledge v Perry, 417 US 21, 27; 94 S Ct 2098, 2102; 40 L Ed 2d 628, 634 (1974). The prosecution contends that such a likelihood does not exist in the present case because the increased sentences were imposed by a different judge than the one who imposed the original sentences, and thus Pearce is inapplicable.
We do not find this contention convincing. First, it should be noted that Pearce involved different sentencing judges. See Chaffin v Stynchcombe, 412 US 17, 41, n 4; 93 S Ct 1977; 36 L Ed 2d 714 (1973) (Marshall, J., dissenting). Thus Pearce covers the exact situation presented in this case and is controlling. This result is further supported by our Supreme Court’s decision in People v Payne, 386 Mich 84; 191 NW2d 375 (1971), rev’d on other grounds 412 US 47; 93 S Ct 1966; 36 L Ed 2d 736 (1973), in which the Court applied Pearce to cases where different judges of the same court imposed sentencing.
Finally, the institutional loyalty of members of the same court must be taken into consideration. See Grano, Criminal Procedure, 23 Wayne L Rev 517, 610 (1977). The Pearce safeguards were adopted to forestall not only actual vindictiveness but also the threat or appearance of vindictiveness. Given the usual collegiality of members of the same bench, we are convinced that the appearance of vindictiveness and its corresponding chill on a defendant’s right to appeal cannot be dispelled without the application of the Pearce safeguards.
Therefore, as a matter of constitutional law and in the exercise of our supervisory powers over lower state courts we hold that upon retrial a judge may not impose a higher sentence upon defendant than that received after his first trial unless he states on the record the factors, occurring after defendant’s original sentence, upon which the judge bases his decision of an increased sentence. Accord, People v Triplett, 68 Mich App 531; 243 NW2d 665 (1976). Since the trial judge in the present case imposed higher sentences on defendants without stating his reasons, the case must be remanded for resentencing. On remand the trial judge must either reimpose the original sentences or state the factors upon which he bases his imposition of a higher sentence. We do not retain jurisdiction.
Remanded.
This is an appeal from defendants’ second trial. The first trial resulted in defendants being convicted of the same crimes for which they were convicted in the present trial. Defendant King was sentenced to a term of 7-1/2 to 15 years. Defendant Carson was sentenced to terms of 5 to 10 years and 3 to 5 years. A new trial was granted after sentencing.
It cannot be said that this admission of plaintiff’s account of the conversation constituted manifest injustice which would mandate reversal even in the absence of objection. Mauricio v Tobias, 52 Mich App 127; 216 NW2d 602 (1974).
Compare Chaffin v Stynchcombe, 412 US 17; 93 S Ct 1977; 36 L Ed 2d 714 (1973) (refusing to apply Pearce when sentencing done by a jury instead of a judge), and Colten v Kentucky, 407 US 104; 92 S Ct 1953; 32 L Ed 2d 584 (1972) (refusing to apply Pearce to a situation where a judge imposed an increased sentence after defendant’s de novo trial in a higher court), with Blackledge v Perry, 417 US 21; 94 S Ct 2098; 40 L Ed 2d 628 (1974) (applying Pearce rationale and precluding a prosecutor in a de novo trial before a superior tribunal from charging a defendant with a higher crime than that with which he was originally charged in his trial in the lower court).
This fact was not mentioned in the Pearce opinion which would seem to indicate that the Court deemed it irrelevant to the decision of the case whether the same judge or a different judge imposed the increased sentence.
The Supreme Court reversed Payne on the retroactivity question holding that Pearce was not to be given retroactive application. The Court declined to address any of the other sentencing questions involved in the case. 412 US at 49. | [
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On Remand
Bronson, J.
We agree with Judge Simon’s disposition of the case as to Mr. Kailimai. The fact that he did not produce documentation for his estimates concerning the value of the truck, lost wages, and lost investment goes to the weight of the evidence, not its admissibility. Since the testimony was properly admitted, there was no legally recognized reason given by the trial court for overturning the jury verdict and granting a new trial. Kailimai v The Firestone Tire & Rubber Co, 398 Mich 230; 247 NW2d 295 (1976). The new trial order for Mr. Kailimai’s claim was improper and the jury verdict must be reinstated.
We disagree with Judge Simon, however, on his disposition of Mrs. Kailimai’s loss of consortium claim. Loss of consortium includes "loss of society, companionship, service, and all other incidents of the marriage relationship”. Washington v Jones, 386 Mich 466, 472; 192 NW2d 234 (1972).
Mrs. Kailimai testified that her husband was confined to the hospital for two weeks after the accident. She further testified that for several months after arriving home, her husband could no longer sleep in bed but had to sleep in a reclining chair because of the pain. Neither she nor the children could touch him or get near him. Furthermore, he was unable to do any work around the house or take care of the children.
This testimony clearly shows that after the acci dent Mrs. Kailimai was deprived of the companionship and services of her husband which she had previously enjoyed. Since she had established a claim for loss of consortium, the amount of damages suffered is a fact question to be determined by the jury and will not be set aside unless it is so excessive as to shock the judicial conscience. See Pippen v Denison Division of Abex Corp, 66 Mich App 664; 239 NW2d 704 (1976), lv den, 399 Mich 823 (1977). Since our review of the record demonstrates that the award was " 'within the limits of what reasonable minds might deem just compensation’ ”, the trial court abused its discretion in ordering a remittitur.
The trial court’s judgment is reversed and the jury verdict is reinstated. Costs to plaintiffs.
Bashara, P.J., concurred.
Because we have concluded that the evidence was properly admitted, we have no need to address the directed verdict issue raised in the dissenting and concurring opinion.
Stevens v Edward C Levy Co, 376 Mich 1, 5; 135 NW2d 414 (1965), quoting 6 Callaghan’s Michigan Pleading & Practice (2d ed), § 41.13, p 378. | [
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Per Curiam.
Defendant, Donald R. Sickmiller, was convicted on his plea of nolo contendere of criminal sexual conduct in the second degree, MCL 750.520c; MSA 28.788(3). He was sentenced to a term of 10 to 15 years in prison and appeals.
Defendant first claims that his plea must be set aside because the trial judge failed to advise him that, if his plea was accepted, he might be charged as an habitual offender and the maximum possible sentence increased. GCR 1963, 785.7(l)(c).
The claim is without merit. There is no showing that the defendant in this case has been charged as an habitual offender, People v Jones, 73 Mich App 91, 93; 250 NW2d 554 (1976), People v Love, 76 Mich App 379, 382; 256 NW2d 602 (1977). Since GCR 1963, 785.7(l)(c) requires that the trial court advise a defendant who has previously been convicted of a felony that if his plea of guilty is accepted, he may be charged as an habitual offender and his sentence increased, it follows that no plea-based conviction may be used as the final or triggering offense in an habitual offender information unless the required advice was given at the plea-taking proceeding.
Second, defendant claims that remand is required because the trial judge failed to state on the record why a plea of nolo contendere was appropriate in this case. We have carefully reviewed the record of the plea-taking proceeding. Defendant entered his plea pursuant to a plea agreement under which Count I of the information was dismissed and defendant was to have psychiatric evaluation prior to sentencing. The offense involved criminal sexual conduct. We are persuaded that defendant’s nolo plea was accepted for adequate reasons and that a remand for supplementation of the record in this case would be a useless formality. See People v Love, 72 Mich App 413, 424; 250 NW2d 94 (1976).
Defendant’s conviction is affirmed. | [
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R. B. Burns, J.
Plaintiff Reinelt appeals from a circuit court affirmance of a decision by defendant Michigan Public School Employees’ Retirement Board denying plaintiff additional military service credit in the computation of plaintiff’s retirement benefits. We reverse.
Plaintiff left his employment as a school teacher to enlist in the Navy on August 21, 1942. Upon enlistment, plaintiff was placed in the Navy’s V-7 program, under which he attended Michigan State Normal College at his own expense, taking courses to prepare him to become an officer. At that time he had a military serial number, rank, commanding officer, and was exempt from military draft. However, he was not paid by the Navy, not required to wear a uniform, did not live in Navy barracks, and did not receive a housing subsidy. On March 9, 1943, he entered active duty in the Navy. Plaintiff’s active duty ended March 28, 1946, and he immediately resumed teaching in Michigan schools. Plaintiff retired July 1, 1974.
In computing plaintiff’s retirement benefits, de fendant allowed military service credit only for the period of March 9, 1943, to March 28, 1946.
At the time of plaintiff’s retirement, 1972 PA 170; MCL 38.214; MSA 15.893(14), provided in part:
"A member of this retirement system who was or shall be drafted, enlisted, inducted, or commissioned into military, naval, marine or other armed service of the United States government during time of war or emergency, or who shall be drafted or called into such armed service or emergency during time of peace, and within 24 months from the date of his honorable discharge or relief from active duty from such armed service shall resume employment as a public school employee, shall receive a maximum of 6 years of credit, except required service extending beyond 6 years, for time spent in such armed service credited to him as a member of the retirement system.”
The statute is ambiguous as to how "time spent in such armed service” shall be calculated. Plaintiff argues that the time period starts to run as of the time of draft or enlistment. Defendant argues that the reference in the statute to "relief from active duty” implies that only time spent on active duty is "time spent in such armed service”.
The precise issue raised in this case was addressed by the Attorney General in a letter opinion to Norvel A. Hansen, Executive Director of the Michigan Public School Employees’ Retirement System, dated February 3, 1975. In that opinion the Attorney General reasoned:
"A member of the Public School Employees Retirement System cannot earn service credit pursuant to MCLA 38.214; MSA 15.893(14) unless he or she returns to public school employment 'within 24 months from the date of his honorable discharge or relief from active duty from such armed service.’ Thus, a member is not entitled to such service credit until he or she first enters, and then honorably leaves, active duty in the armed services.
"Further, MCLA 38.214; MSA 15.893(14) grants service credit only 'for time spent in such armed service.’ Since such 'time’ ends when the member is honorably discharged from active duty, it must, to be consistent, begin when the member enters active duty.
"It is, therefore my opinion that a member is not entitled to military service credit under MCLA 38.214; MSA 15.893(14) until he or she enters active duty in the Armed Forces.”
The statute was subsequently amended to provide in part:
"A member of this retirement system who was or shall be drafted, enlisted, inducted, or commissioned into active duty with the military, naval, marine, or other armed service * * * .” 1976 PA 357; MCL 38.214; MSA 15.893(14). (Emphasis supplied.)
This amendment appears to have been intended to clear up the instant ambiguity by adopting the Attorney General’s interpretation and expressing that meaning with clarity.
Defendant asserts that this Court must give great weight to the Attorney General’s administrative interpretation of the statute. See, e.g., Magreta v Ambassador Steel Co (On Rehearing), 380 Mich 513, 519; 158 NW2d 473, 475 (1968). It is true that
" '[t]he construction given to a statute by those charged with the duty of executing it is always entitled to the most respectful consideration and ought not to be overruled without cogent reasons.’ ” Magreta v Ambassador Steel Co, supra, quoting United States v Moore, 95 US 760, 763; 24 L Ed 588, 589 (1877).
The rationale for this rule is that administrative agencies generally have special competence in interpreting and applying specialized legislation in their field of expertise. See 2A Sutherland, Statutory Construction (4th ed), § 49.05, pp 238, 239. Since the instant interpretation comes not from the agency charged with the duty of executing the statute, defendant board, but from the Attorney General, the rule and its rationale are inapplicable. This Court is not required to follow the opinion of the Attorney General. Traverse City School Dist v Attorney General, 384 Mich 390, 410 fn 2; 185 NW2d 9, 17 (1971). Garcia v City of Warren Civil Service Comm, 78 Mich App 603, 608; 261 NW2d 19, 22 (1977), David Walcott Kendall Memorial School v Grand Rapids, 11 Mich App 231, 237; 160 NW2d 778, 781 (1968). Instead, we accept the opinion of the Attorney General as expressing one of two possible, reasonable interpretations, but do not view the reasoning of the opinion as compelling.
Defendant also contends that the subsequent amendment of the statute to conform to the Attorney General’s interpretation of the old statute reflects a legislative intention to clarify the ambiguity by making explicit the Legislature’s prior intent. The difficulty with this argument is that we cannot know whether the change was intended by the Legislature to be one of form or substance. Generally, an amendment is to be construed, unless a different intent is manifest, as changing the meaning of the statute. Bonifas-Gorman Lumber Co v Unemployment Compensation Comm, 313 Mich 363, 369; 21 NW2d 163, 165 (1946). Thus, one inference which may be drawn from the amendment is that the Legislature viewed the prior statute as having the meaning advanced by plain tiff, and changed the meaning to that advanced by defendant. On the other hand,
" '[i]f the amendment was enacted soon after controversies arose as to the interpretation of the original act, it is logical to regard the amendment as a legislative interpretation of the original act — a formal change— rebutting the presumption of substantial change.’ ” Detroit Edison Co v Dep’t of Revenue, 320 Mich 506, 520; 31 NW2d 809, 816 (1948), quoting 1 Sutherland, Statutory Construction (3d ed), § 1931, p 418, see Detroit Edison Co v Janosz, 350 Mich 606, 613-614; 87 NW2d 126, 130 (1957).
Thus, we may also infer that the Attorney General’s opinion was in response to a controversy concerning the correct interpretation of the statute, and the Legislature reacted thereto by making clear its prior intent.
Whatever might have been the understanding of the Legislature as to the prior meaning of the statute, that understanding would only be evidence to aid in our interpretation, and not disposi-tive.
"The controlling test as to the meaning of a statutory provision is always the legislative intent when fairly ascertainable. But the 'intent’ referred to is the one entertained by the legislature at the time of the passage of the act, and not the intent expressed by a subsequent amendment. In the instant case, to interpret the subsequent amendment as an indication of the legislature’s original intent would be mere speculation, not judicial construction.” Iron Street Corp v Unemployment Compensation Comm, 305 Mich 643, 655; 9 NW2d 874, 879 (1943), Detroit Edison Co v Dep’t of Revenue, supra, at 519; 31 NW2d at 815.
The primary rule of statutory construction,
"is to ascertain and give effect to the intention of the legislature. All [other rules] serve but as guides to assist the courts in determining such intent with greater degree of certainty”. Grand Rapids v Crocker, 219 Mich 178, 182; 189 NW 221, 222 (1922).
Having determined that extrinsic aids to interpretation do not provide a dispositive answer to the instant issue, we turn to the words of the statute itself.
The intention of the Legislature is manifest. The purpose of the statute is to provide retirement credit for that time during which members of the retirement system were unable to continue their school employment because of a conflicting obligation to serve their country in the armed forces. Ordinarily that obligation would conflict with a teaching career at the time of draft or enlistment, and we may infer that the Legislature assumed without expressly considering that draft or enlistment would automatically lead immediately to active duty. We decline to write into the statute a distinction not then made by the Legislature, which would be essentially arbitrary and thwart the general purpose of the statute in cases such as this. Upon plaintiffs enlistment, he was obligated to serve his country in a capacity which interrupted his teaching career. His sacrifice was no less than it would have been had he first been placed on active duty and then sent to school. We are certain that, had the Legislature expressly considered this type of situation, it would have drawn the statute in such a manner as to make clear its intention to allow the credit.
Reversed. No costs, public question.
M. B. Breighner, J., concurred. | [
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Cynar, J.
Defendant was charged in a two-count information with armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). On June 6, 1977, he pled guilty to the armed robbery charge in return for a promise to dismiss the felony-firearm charge and other charges arising out of a separate, unrelated incident and a promise not to proceed against defendant as a habitual offender. On July 8, 1977, defendant was sentenced to a term of 10 to 20 years imprisonment. He now appeals as a matter of right.
Defendant first contends that there was insufficient evidence to bind him over on the felony-firearm charge. This issue was not raised before the Circuit Court judge and therefore, is not properly before this Court. People v McIntyre, 74 Mich App 661, 664-665; 254 NW2d 603 (1977). Furthermore, the complaining witness’s testimony that a pistol was used to effect the robbery is sufficient to support the bindover.
Defendant next contends that the felony-firearm statute, MCL 750.227b; MSA 28.424(2), is unconstitutional as a violation of double jeopardy. This issue has recently engendered considerable controversy and has led to a split of opinion within this Court. Compare Wayne County Prosecutor v Recorder’s Court Judge, 85 Mich App 727; 272 NW2d 587 (1978), and People v Gary Hughes, 85 Mich App 674; 272 NW2d 567 (1978). We are of the opinion that the view expressed in People v Gary Hughes is the better reasoned analysis. The Legislature, not the judiciary, is the proper body to define crimes and fix punishments. Brown v Ohio, 432 US 161, 165; 97 S Ct 2221, 2225; 53 L Ed 2d 187 (1977). When it appears that the Legislature did not intend a defendant to be cumulatively punished for different aspects of the same act, cumulative punishment is inappropriate. Simpson v United States, 435 US 6; 98 S Ct 909; 55 L Ed 2d 70 (1978). In addition, certain presumptions have arisen in favor of defendants when the Legislative intent is unclear. See People v Robinson, 80 Mich App 559, 566; 264 NW2d 58 (1978).
However, in those situations where the Legislature intended that a defendant be punished for different aspects of the same act, the double jeopardy clause has not been used as a bar to such punishment.
In the present case the Legislature clearly intended that a defendant who possesses a firearm during the course of a felony be punished for both the felony and the possession of the firearm. This intent is evidenced by the consecutive sentencing requirement and the mandatory two-year sentence for the possession of the firearm. Although the statutory goal might better have been accomplished by enacting a sentence-enhancement scheme similar to that of the habitual offender act, MCL 769.10-769.13; MSA 28.1082-28.1085, the failure to draft the felony-firearm statute in such a manner does not render it constitutionally infirm. See Gore v United States, 357 US 386, 392-393; 78 S Ct 1280; 2 L Ed 2d 1405 (1958). Therefore, we concur with other panels of this Court and uphold the validity of the felony-firearm statute. See People v Gary Hughes, supra and People v Walter Johnson, 85 Mich App 654; 272 NW2d 605 (1978). Since defendant could have been convicted of both charges in the information, his plea to one charge in return for dismissal of the other does not constitute an illusory plea bargain.
Affirmed.
Beasley, J., concurred. | [
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D. F. Walsh, J.
Defendant appeals his plea-based conviction of obtaining money (in an amount over $100) by false pretenses with intent to defraud. MCL 750.218; MSA 28.415. Defendant was sentenced to a prison term of 2-1/2 to 10 years. He was originally charged with one count of obtaining money by false pretenses and one count of delivering an insufficient funds check with intent to defraud. MCL 750.131; MSA 28.326. Pursuant to a plea bargain in which other outstanding charges were dropped and charges for other alleged crimes were not brought, the second count was dropped and defendant pled guilty to count one.
The offense to which defendant pled guilty is defined in MCL 750.218; MSA 28.415:
"Any person who, with intent to defraud or cheat, shall designedly, by color of any false token or writing or by any false or bogus check or other written, printed or engraved instrument, by spurious coin or metal in the similitude of coin, or by any other false pretense, cause any person to grant, convey, assign, demise, lease or mortgage any land or interest in land, or obtain the signature of any person to any written instrument, the making whereof would be punishable as forgery, or obtain from any person any money or personal property or the use of any instrument, facility or article or other valuable thing or service, or by means of any false weights or measures obtain a larger amount or quantity of property than was bargained for, or by means of any false weights or measures sell or dispose of a less amount or quantity of property than was bargained for, if such land or interest in land, money, personal property, use of such instrument, facility or article, valuable thing, service, larger amount obtained or less amount disposed of, shall be of the value of $100.00 or less, shall be guilty of a misdemeanor; and if such land, interest in land, money, personal property, use of such instrument, facility or article, valuable thing, service, larger amount obtained or less amount disposed of shall be of the value of more than $100.00, such person shall be guilty of a felony, punishable by imprisonment in the state prison not more than 10 years or by a fine of not more than $5,000.00.”
The offense described in count two of the information filed against defendant is defined in MCL 750.131; MSA 28.326:
"Any person who, with intent to defraud, shall make or draw or utter or deliver any check, draft or order for the payment of money, to apply on account or otherwise, upon any bank or other depository, knowing at the time of such making, drawing, uttering or delivering, that the maker, or drawer, has not sufficient funds in or credit with such bank or other depository, for the payment of such check, draft, or order, in full, upon its presentation, or any person who, with the intent to defraud, shall make, draw, utter or deliver any check, draft or order for the payment of money to apply on account or otherwise, upon any bank or other depository and who shall not have sufficient funds for the payment for same when presentation for payment is made to the drawee, except where such lack of funds is due to garnishment, attachment, levy, or other lawful cause, and such fact was not known to the person who made, drew, uttered or delivered the instrument at the time of so doing, shall, if the amount payable in the check exceeds $50.00, be guilty of felony, punishable by imprisonment in the county jail not more than 1 year or by a fine of not more than $500.00. If the amount payable in the check is $50.00 or less, such person shall for the first offense be guilty of a misdemeanor; and for the second offense, the same being charged as a second offense, shall be guilty of a misdemeanor punishable by imprisonment in the county jail not more than 6 months or by a fine of not more than $250.00; and for a third and subsequent offense, the same being charged as a third or subsequent offense, shall be guilty of a felony, punishable by imprisonment in the county jail not more than 1 year or by a fine of not more than $500.00.”
The relevant facts are not disputed. The charges arose out of defendant’s presentation of an insufficient funds check to the National Bank of Jackson in the amount of $150. The check was drawn on the Onsted Bank. At the plea-taking proceedings defendant testified that, when he presented the check to the National Bank of Jackson, he knew that the Onsted account did not have sufficient funds to cover it and that he intended to defraud the National Bank of Jackson.
On appeal defendant challenges the adequacy of the factual basis supporting his conviction of obtaining money by false pretenses. We agree that the requisite factual basis was not established.
Prosecuting attorneys have broad discretion in determining under which of two possible applicable statutes a prosecution shall be instituted. People v Lombardo, 301 Mich 451; 3 NW2d 839 (1942), People v Heber, 42 Mich App 582; 202 NW2d 571 (1972). Prosecutorial discretion is not, however, unlimited. People v Birmingham, 13 Mich App 402, 406-407; 164 NW2d 561 (1968).
It is necessary to distinguish between cases where the two possible applicable statutes prohibit the same conduct and cases where the statutory crimes are distinct. In People v Sanford, 65 Mich App 101; 237 NW2d 201 (1975), aff'd 402 Mich 460; 265 NW2d 1 (1978), for example, the defendants argued that the prosecutor had abused his discretion in charging them with assault with intent to rob while unarmed, MCL 750.88; MSA 28.283, instead of with unarmed robbery, MCL 750.530; MSA 28.798. The defendants contended that it was a denial of equal protection to have two statutes with different penalties prohibiting the same conduct. Because the assault charge required an assault, whereas the robbery charge required either an assault or force and violence, the two statutes prohibited different conduct. The prosecutor, therefore, had discretion to charge under either statute. Also see People v Graves, 31 Mich App 635; 188 NW2d 87 (1971), where this Court noted that a conviction of larceny in a building, MCL 750.360; MSA 28.592, in contrast to simple larceny, MCL 750.356; MSA 28.588, requires proof of the additional aggravation of stealing from a building. Since the statutes are distinct, the prosecutor had not abused his discretion in charging the greater offense. And in People v Shaw, 27 Mich App 325; 183 NW2d 390 (1970), lv den 385 Mich 760 (1971), this Court found no error in charging the defendant with forgery, MCL 750.248; MSA 28.445, instead of with the misdemeanor of unauthorized use of a credit card, MCL 750.219a; MSA 28.416(1). While recognizing that general statutes are controlled by specific statutes, the Court emphasized that the specific credit card offense did not necessarily involve the same elements as the more general forgery statute.
In contrast to the foregoing cases, in the instant case the only "false pretense” shown is the presentation of an insufficient funds check. People v Vida, 2 Mich App 409; 140 NW2d 559 (1966), aff'd 381 Mich 595; 166 NW2d 465 (1969), and People v Niver, 7 Mich App 652; 152 NW2d 714 (1967), are readily distinguishable due to the proof of false representation, in addition to presentation of an insufficient funds check, by the defendants in those cases. The instant defendant’s only false pretense was his "false representation, either express or implied, incident to the giving of a check, that the maker then has funds on deposit from which the bank will pay the check on presentation”. People v Jacobson, 248 Mich 639, 642; 227 NW 781 (1929).
It is a basic rule of statutory construction that a statute specific in language and enacted subsequent to a general statute covering the same subject matter constitutes an exception to the general statute if there appears to be a conflict between the two statutes. State Highway Comm’r v Detroit City Controller, 331 Mich 337, 358; 49 NW2d 318 (1951), People v McFadden, 73 Mich App 232; 251 NW2d 297 (1977), People v Bachman, 50 Mich App 682; 213 NW2d 800 (1973), lv den 392 Mich 776 (1974), People v Rodgers, 18 Mich App 37; 170 NW2d 493 (1969).
Although presentation of an insufficient funds check may, if accompanied by additional false representation, justify conviction under the false pretenses statute (see People v Vida, supra), we hold that the instant facts preclude prosecution under that statute. It was clearly the Legislature’s intent, in enacting the insufficient funds statute, to carve out an exception to the false pretenses statute and to provide for a lesser penalty for the particular type of false pretense involved in presentation of an insufficient funds check. See State v Marshall, 202 Iowa 954; 211 NW 252 (1926), LaFave and Scott, Criminal Law, § 92, pp 678-681. The crime described in MCL 750.131; MSA 28.326 carries a substantially lower maximum penalty than that set forth in MCL 750.218; MSA 28.415. Compare People v Heber, supra. The prosecutor was bound to charge defendant under the statute which fit the particular facts and not under the more general statute. People v Shears, 84 Mich App 175; 269 NW2d 519 (1978).
Reversed. | [
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Allen, J.
This author and Judge Bronson, who writes separately, concur in the opinion of Judge T. M. Burns except that portion thereof holding that the defense of "governmental immunity” does not apply to the municipal defendants themselves. We simply cannot agree that the police training exercise being conducted when plaintiff was struck in the face by rice pellets was not a governmental function. Therefore, we would affirm the grant of summary judgment in favor of those municipalities and police departments not in default. In all other respects we agree with Judge Burns’s opinion.
The pertinent section of Michigan’s governmental immunity act, MCL 691.1401 et seq.; MSA 3.996(101) et seq., reads:
"Except as in this act otherwise provided, all governmental agencies shall be immune from tort liability in all cases wherein the government agency is engaged in the exercise or discharge of a governmental function.” MCL 691.1407; MSA 3.996(107). (Emphasis supplied.)
While our courts have frequently disagreed as to whether a specific negligent act was committed "in the exercise or discharge of a governmental func tion” nothing seems clearer or more settled than the doctrine that the management, operation and control of a police department is a municipal function, and tort actions directed against such department are defeated on the grounds of governmental immunity. McPherson v Fitzpatrick, 63 Mich App 461, 463; 234 NW2d 566 (1975), Anderson v Detroit, 54 Mich App 496; 221 NW2d 168 (1974), Walkowski v Macomb County Sheriff, 64 Mich App 460, 463; 236 NW2d 516 (1975). The only difference between those cases and the instant case is that in the cited cases the officers’ actions were committed while on routine police duty whereas in the case before us the wrongful action took place during a training exercise. We find the difference inconsequential. Training is part of the operation of a police department, and participation in a police training exercise is therefore a governmental function. As was stated in Dionne v City of Trenton, 79 Mich App 239, 246; 261 NW2d 273 (1977), an opinion released subsequent to oral argument in the instant case:
" * * * [W]e would have little hesitation in finding that the training of police officers, including the establishment and operation of a shooting range to accomplish that purpose, is of a public nature, for the public good, and the exercise of a governmental function. If the injury had occurred as the result of a shot negligently ñred by a policeman or by an instructor in the course of police training, there would be a basis for holding that immunity from liability existed.” (Emphasis supplied.)
Plaintiffs acknowledge the McPherson-Walkowski rule that "the operations of police departments are governmental functions” but claim that pursuant to Thomas v Dept of State Highways, 398 Mich 1; 247 NW2d 530 (1976), such case law no longer has force. To support this contention, plaintiffs cite footnote 4 at page 17 of Thomas. However, that footnote appeared in the dissenting opinion in Thomas. The Thomas majority approach looks to existing case law to determine what is and what is not a governmental function. Under existing case law the operation of a police department is a governmental function.
Subsequent to oral argument in the instant case our Supreme Court issued its opinion in Pichette v Manistique Public Schools, 403 Mich 268; 269 NW2d 143 (1978). In that opinion the justices divided evenly on the question of whether or not the conduct complained of was in the exercise or discharge of a governmental function. Three justices opted to adopt the policy making/policy implementing test as set forth in the minority opinion in Thomas, supra. Three justices would follow the majority in Thomas and look to the common law for guidance in deciding whether a specific activity was in the discharge of a governmental function. One justice felt it unnecessary to reach that decision. It is this author’s opinion that even if a majority of the justices had adopted the policy making/policy implementing test, it would not follow that the training exercise in the present case would not be a governmental function. On this issue, this author and Judge Bronson disagree. But since that test did not command a majority of the justices, both Judge Bronson and I agree that given the current state of the law, governmental immunity is a defense in the case before us.
Lastly, we address an issue which Judge Burns found it unnecessary to touch upon. Plaintiffs claim that even if participation in a police training exercise is a governmental function, § 5 of the Michigan governmental immunity act, MCL 691.1405; MSA 3.996(105), permits recovery. That section provides:
"Governmental agencies shall be liable for bodily injury and property damage resulting from the negligent operation by any officer, agent, or employee of the governmental agency, of a motor vehicle of which the governmental agency is owner, as defined in Act No. 300 of the Public Acts of 1949, as amended, being sections 257.1 to 257.923 of the Compiled Laws of 1948.” 1964 PA 170, § 5, eff. July 1, 1965. (Emphasis supplied.)
Under this section liability attaches only to the single governmental unit owning the vehicle. Plaintiffs argue that the vehicle from which the injured officer was "escaping” was in a "state of being at work” in that it was being used as a mobile jail. However, the statute clearly required that the injury result from the operation of the vehicle. In the instant case the injury resulted from the discharge of a firearm. The firearm discharge was in no way caused by or a result of the operation of the vehicle. It was the negligence of the other officers participating in the training exercise and not the negligence of the driver of the vehicle, which caused the injury. The trial court did not err in finding that the § 5 exception to governmental immunity did not apply.
In summary, the grant of accelerated judgment in favor of the individual defendants is therefore reversed. The issue of individual negligence is remanded for trial. Before reaching this issue, however, the trial court will first have to determine whether the South Oakland Tactical Support Unit was a joint venture and whether plaintiffs are therefore barred from proceeding against the individual defendants by the exclusive remedy provision of the worker’s compensation act. MCL 418.131; MSA 17.237(131). The grant of accelerated judgment in favor of defendants who have not moved to set aside the entry of default is also reversed. The grant of accelerated judgment in favor of those municipalities and police departments not in default is affirmed.
No costs, a public question being involved.
Compatible with Judge Burns’s opinion we would: (as to Issue I)— -reverse the judgments entered against those defendants who were defaulted, and remand to allow plaintiffs to move for entry of a default judgment or other appropriate relief; (as to Issue II) — remand to the trial court for determination by the trier of fact whether plaintiff was an employee of defendant; (as to Issue III) — reverse judgment in favor of the individual defendant and allow discovery and consideration of individual motions for summary judgment.
"The mere fact that a governmental agency is doing a certain act does not make such act a 'governmental function’ if a private person or corporation may undertake the same act. Thus, 'governmental function’ is not delineated by questions of the broad scope of an activity undertaken or by financial or insurance considerations which may be indicative of a governmental undertaking, but rather by viewing the precise action allegedly giving rise to liability, and determining whether such action is sui generis governmental — of essence to governing. Supervision of road construction (as opposed to the making of decisions as to whether to build a road), operation of hospitals and schools (as opposed to planning or deciding what health services to offer or what subject to teach), operation and supervision of playgrounds and swimming pools (as opposed to deciding whether to operate such playgrounds or pools) are not governmental functions within this definition. On the other hand, certain aspects of the exercise of the executive, legislative, or judicial powers are by their very nature governmental functions and necessarily removed from the undertakings of the private sector." Thomas, supra, at 21-22. (Emphasis supplied.)
This author believes that the underscored words would preclude police operations from being considered nongovernmental. Unlike road building, the operation of hospitals or the construction of swimming pools, the operation of a police department does not have a counterpart in the private sector.
Having found in plaintiffs’ favor on the issue of "governmental function” it was unnecessary to reach this issue. | [
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R. B. Burns, J.
Pursuant to a plea bargain, defendant pled guilty to delivery of phencyclidine, MCL 335.341(l)(b); MSA 18.1070(41)(l)(b), assault with intent to commit murder, MCL 750.83; MSA 28.278, and possession of a firearm during commission of a felony, MCL 750.227b; MSA 28.424(2). The assault and firearm offenses allegedly arose out of the same transaction.
We find defendant’s arguments regarding the title-object clause, Const 1963, art 4, § 25, and double jeopardy, US Const, Am V, Const 1963, art 1, § 15, unpersuasive. See People v Gary Hughes, 85 Mich App 674; NW2d (1978), People v Walter Johnson, 85 Mich App 654; NW2d (1978).
We also find defendant’s argument regarding the trial court’s failure to explain the elements of the offense of assault with intent to commit murder to be without merit. See GCR 1963, 785.7(l)(a), Guilty Plea Cases, 395 Mich 96, 115-117; 235 NW2d 132, 139-140 (1975). Henderson v Morgan, 426 US 637; 96 S Ct 2253; 49 L Ed 2d 108 (1976), is distinguishable from this case on the facts.
Plaintiff concedes that an adequate factual basis was not elicited to establish assault with intent to commit murder. The firearm offense necessarily turns upon the establishment of the assault offense. As to these two counts, the case is remanded. On remand the prosecutor shall be given the opportunity to establish the missing elements. If he is able to do so and there is no contrary evidence, the judgment of conviction shall be affirmed. If contrary evidence is produced, the matter shall be treated as a motion to withdraw the guilty pleas and the court shall decide the matter in the exercise of its discretion. Guilty Plea Cases, supra at 129; 235 NW2d at 145.
Reversed in part, affirmed in part and remanded. | [
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R. H. Campbell, J.
Defendant, James Brummel, applied for and obtained building permits for two houses on adjoining lots in Grand Haven Township. By zoning ordinance the township requires houses to be set back 50 feet from the road right-of-way and no less than 15 feet from either side boundary, with no less than 35 feet total side yardage. In his application defendant asserted he would substantially comply with these restrictions.*
Due to a mistake by Brummel and his surveyor as to the width of the abutting right-of-way, both foundations were laid in violation of the set-back provision. The township’s building inspector also believed the right-of-way was narrower than it is, and issued the building permits on the basis of that mistaken assumption. Also because of his false impression, the inspector was unable to notice the violations when he checked the premises several times during construction, although it was apparent that the Brummel houses were much further forward than other homes along the road. Testimony conflicted as to whether plaintiffs building inspector affirmatively misrepresented the right-of-way width to Brummel. The trial court found that he did not.
As a result of a second error by Brummel’s surveyor or acts by an interloper, or both, the houses were also built too close to the lots’ side boundaries. Shortly before excavation began, Brummel discovered that the surveyor had measured and staked a lot owned by Brummel’s neighbor. Brummel requested the surveyor to move the stakes. When they were relocated onto Brummel’s property, the markers were incorrectly placed. Brummel introduced unchallenged hearsay that a neighbor had moved them instead of the surveyor. The builder placed the first house by reference to the stakes and located the second house by reference to the first.
Both parties first became aware of the violations upon complaint by a neighbor, after one house had been built and the other three-quarters completed. Brummel halted construction and asked the township for a variance or lot split, which requests were denied. The township subsequently obtained a mandatory injunction compelling Brummel to relocate the buildings. The judge that granted the injunction found, among other things, that the township was not estopped from asserting the zoning ordinance because "the mistake was that of defendant or that of his agent”. On equitable grounds we reverse.
As a general rule, a municipality cannot be estopped from enforcing its zoning ordinances by the ultra vires acts of its zoning officials. Fass v Highland Park, 326 Mich 19; 39 NW2d 336 (1949). Every person is presumed to know the nature and extent of the powers of municipal officers. Id. at 27; 39 NW2d at 339-40; 6 ALR2d 960, 964. The rule extends when the parties labor under a mistake of fact as well as law, 1 Anderson, American Law of Zoning (2d ed), § 6.15, pp 386, 388, and has been held to apply even when the ordinance violator acts in good faith, expending money or incurring obligations, in reliance upon the official’s acts. E.g., Fass v Highland Park, supra; see 6 ALR2d at 965.
Defendant correctly frames the question in this case, however, not as one of estoppel, but as one concerning the propriety of issuing an injunction.
In Pittsfield Twp v Malcolm, 375 Mich 135; 134 NW2d 166 (1965), the Michigan Supreme Court denied injunctive relief to a municipality seeking to restrict the defendant from operating a dog pound, a use which the town’s building inspector erroneously believed permissible when he issued a construction permit for the kennel. As compelling reasons for denying the injunction, the Court found: (1) both parties had acted noncollusively and in good faith; (2) notice of the special use to be made was published and apparent from the unique structure of the building; (3) the defendant had spent $45,000 for a specialty building that was otherwise of doubtful utility; and (4) plaintiffs suit came ten and one-half months after the kennel had been constructed and begun operating. While parts of the opinion seem to cast the decision as an exception to the nonestoppel rule of Fass, see 375 Mich at 146-147, we find it more clearly to be an application of the equitable principle that a court will not grant an injunction that works an injustice. Supporting that interpretation is the Court’s conclusion in Pittsfield Twp: "While no factor is in itself decisive of the case, the entire circumstances, viewed together, present compelling reasons why equity should refuse plaintiffs request for injunction. To do otherwise would be contrary to equity and good conscience.” 375 Mich at 148; 134 NW2d at 173. To the same effect is Justice Black’s concurrence: "This being an equity case, and the equities being all one way, I would affirm on the ground that the plaintiff township stands at equity’s fount in no better position than would a similarly situated private suitor”. Id. at 148-149; 134 NW2d at 173.
In the present case the equities favor Brummel. Both parties through their agents acted in good faith upon a mutual mistake. See generally, Gordon v City of Warren Planning & Urban Renewal Commission, 388 Mich 82; 199 NW2d 465 (1972). Brummel stopped building as soon as he received notice of the violation, compare Building Commission of Detroit v Kunin, 181 Mich 604; 148 NW 207 (1914), and had previously changed the design of one home to assure that it could be constructed within the designated setback lines. Some doubt about Brummel’s good faith is raised by the trial court’s finding that "[b]oth lots slope down sharply in the rear, severely limiting buildable area, a situation previously disclosed to defendant by Mr. Goff, but not remembered by defendant at the time he acquired such lots”. The record clearly shows, however, that the situation disclosed by Goff related to different lots and a different gully. The trial court’s finding that the mistake was that of defendant and his agent partially conflicts with its acknowledgement that an interloper may have relocated the stakes, and ignores the building inspector’s testimony that he was moved to issue the building permits by his own mistake as to the. width of the right-of-way. Accepting the trial court’s finding that the building inspector did not affirmatively misrepresent this fact to defendant, the present case is distinguishable from Pitts-field Twp, but not in a material way. That finding does not refute either party’s good faith. There is no hint of fraud or collusion. While both sides could have discovered the error by diligent effort, the question remains as between them who in equity should prevail.
Similar to Pittsfield Twp, some questions about the appropriateness of the building setbacks in this case was apparent upon visual inspection, as both structures were out of line with neighboring homes.
Mr. Brummel has spent over $100,000 in constructing these two houses which he says he can relocate only at the same cost. While we judicially notice and approve the general policy behind setback and side yard restrictions, plaintiff has not shown us how this isolated violation will produce an equally adverse harm to the public.
Finally, the township’s suit comes at a time when both houses have been substantially completed.
Under these circumstances, the trial court should have denied the township’s request for an injunction.
Reversed. Cost to appellant.
In his application for one house Brummel proposed side yards of 15 and 17 feet, which combined (32 feet) would violate the overall side yardage requirement of 35 feet. Since this mistake was apparent on the application, the trial court held that the township could not force compliance after the homes were substantially completed. That ruling is not challenged on appeal.
We note that defendant was not grossly negligent in failing to discover the true right-of-way. The transcript shows that the right-of-way is one hundred feet along defendant’s property line, but 66 feet about a mile north. These dimensions were not listed in the township records. When plaintiffs building inspector first suspected the setback violation, he discovered the omission in the township documents, and only found the actual width of the right-of-way upon search of the county records, with assistance of a county engineer. | [
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R. B. Burns, J.
Plaintiff petitioned for worker’s compensation benefits for an injury suffered during a period of time in which his employer permitted its worker’s compensation insurance coverage to lapse. The employer subsequently filed a petition in bankruptcy; a receiver was appointed, the employer was adjudicated bankrupt, the company reorganized, and control was eventually restored to the employer. Plaintiff amended his petition for worker’s compensation benefits to include the Self-Insurers’ Security Fund as a party defendant, claiming he was entitled to benefits from the fund during the period in which his employer was under the jurisdiction of the bankruptcy court. The hearing referee awarded benefits from the fund upon finding the employer was an insolvent, private, self-insured employer. MCL 418.502; MSA 17.237(502). The Workmen’s Compensation Appeal Board reversed, however, finding the employer was not self-insured. MCL 418.601(b); MSA 17.237(601)(b). We affirm.
A disabled employee may receive benefits from the fund where he is entitled to receive benefits from "a private self-insured employer who becomes involvent * * * and is unable to continue the payments.” MCL 418.537(1); MSA 17.237(537)(1). A literal interpretation of MCL 418.502; MSA 17.237(502) would support plaintiff’s argument that he is entitled to benefits, for that statute defines "an insolvent private self-insured employer” as one "who files for relief under the bankruptcy act or * * * against whom bankruptcy proceedings are filed or * * * for whom a receivor is appointed in a court of this state”. However, this statute must be read in conjunction with MCL 418.601; MSA 17.237(601), which provides in part that "[wjhenever used in this act: * * * (b) 'self-insurer’ means an employer authorized to carry its own risk”. Since plaintiff’s employer was not "authorized to carry its own risk”, it was not "a private self-insured employer who [became] insol vent”. Consequently, plaintiff is not entitled to benefits from the fund.
Plaintiff argues that this interpretation of the act deprives him of equal protection of the law, US Const, Am XIV, for employees of insolvent self-insurers are provided with greater protection than employees of insolvent, noncomplying employers. However, the Legislature could reasonably conclude that, while a fund was needed to back up self-insurers who might become insolvent, no such fund would be needed for employers who elect to insure, and are therefore backed by insurance companies or the accident fund. See MCL 418.611; MSA 17.237(611). The scheme contains penalties for noncompliance, designed to insure adequate financial backing. MCL 418.641, 418.645, 418.647; MSA 17.237(641), 17.237(645), 17.237(647). The classification bears a reasonable relation to the object of the legislation. Manistee Bank & Trust Co v McGowan, 394 Mich 655, 671; 232 NW2d 636, 642 (1975). Moreover, it would be unfair to self-insurers to impose upon them the burden of compensating employees of employers who did not contribute to the fund. MCL 418.551(3); MSA 17.237(551X3).
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D. E. Holbrook, J.
The instant case is another in the long line of decisions arising out of the labor dispute between the teachers belonging to the Crestwood Education Association (hereinafter CEA) and the Crestwood Board of Education. The parties’ collective bargaining agreement expired in August of 1973 and although negotiations continued throughout the 1973-1974 school year, no contract had been signed as of September 3, 1974, the day upon which the new school year was to have begun.
The Crestwood teachers began a strike on September 3, which continued through October 8, when Crestwood taxpayers, suing as homeowners and parents of district school children as well, sought and obtained from Wayne County Circuit Court Judge Joseph G. Rashid an injunction ordering the teachers to return to their employment positions. A copy of this order, dated October 8, 1974, and a copy of Judge Rashid’s continuing injunction issued October 22, 1974, were each served personally upon all Crestwood school teachers. Judge Rashid’s orders also contained provisions intended to expedite the negotiating process. These orders were apparently respected by all parties until the teachers once again went on strike on December 4, following the Thanksgiving recess. The teachers were absent throughout the month of December.
In early December, Judge Rashid issued orders to show cause why contempt citations should not be filed against the striking teachers, and on December 13 the teachers were found to be in contempt and fined. When the strike continued through December 20, 1974, the final school day of the fall semester as set forth in the official school calendar, the school board called a special meeting for that evening.
At the December 20 meeting, the school board adopted a resolution which concluded, in pertinent part, as follows:
"Now, Therefore, Be It Resolved, that all teaching staff employees of Crestwood School District shall exercise the following options relative to their employment status in the District:
"1. Report to their regular teaching assignments on Friday, December 27, 1974 at the beginning of the regularly scheduled school day;
"2. Submit a letter of resignation to the Crestwood School District by Friday, December 27, 1974 by 4:30 p.m. in the afternoon.
Be It Further Resolved that should any of the Crestwood School District teaching staff fail to act in accordance with the above terms and conditions that effective. 11:59 p.m. Friday, December 27, 1974 said persons’ employment shall be terminated.”
The requirements contained in this resolution received wide media coverage and other personal contact to the officers of the CEA and, in addition, a copy of the resolution was sent by certified mail to the last known address of each of the teachers; although a signed receipt was required, it was not necessary that such receipt be signed by the addressee. School board members personally contacted picketing teachers and union officers in an effort to secure the teachers’ attendance.
The school board noted the impending loss in state-aid funds, as a result of more than 50 school days lost, in adopting the December 20 resolution. The board apparently felt that unless the strike was ended immediately, Crestwood would be unable to meet its quota for days of class attendance prior to the summer deadline. The 27th would be a watershed in the relationship between teachers and the school board: on that day, all teachers who cared to would be allowed to "purge” themselves of any previous misconduct.
Approximately 70 of the notices utilized to inform teachers of the December 20 resolution were eventually returned to the board, unopened, either because delivery was refused, or because the notice remained unclaimed by the addressee. In 26 instances the notice was delivered to, and signed by, one other than the addressee; in six other cases delivery was to the addressee personally, but after the December 27 deadline. The remaining notices were duly received.
On December 27, 1974, of the more than 200 teachers employed in the Crestwood district, only 38 reported for work. At a special meeting called three days later, the school board took formal action to discharge the 184 teachers who had not reported for work on the 27th in a resolution implementing the board’s interpretation of the public employees relations act (hereinafter PERA).
As set out in the December 30 resolution, the board proclaimed in pertinent part that:
"Whereas, the Board of Education of the Crest-wood School District passed a Resolution on December 20, 1974 offering the teaching staff of the Crestwood School District the option of:
"1) Reporting to their regular teaching assignments on Friday, December 27, 1974 * * * or;
"2) Submitting a letter of resignation * * * and
"[S]aid Resolution * * * further stated that should any of the * * * teaching staff fail to act in accordance with the above * * * said persons’ employment shall be terminated; and
"Whereas, * * * probationary teachers in the District * * * have failed and refused to report for duty to their regular teaching assignments and have participated in an illegal strike against the Crestwood School District * * * and
"Whereas, * * * non-probationary teachers * * * have failed and refused to report for duty to their regular teaching assignments and have participated in an illegal strike against the Crestwood School District * * * and
"Whereas, the above named public employees are forbidden from participating in a strike
"Now, Therefore, Be It Resolved, that the above named teaching employees shall be deemed to have and are terminated from their employment status in the Crestwood School District effective December 27, 1974, at 11:59 P.M. [sic].” (Emphasis added.)
Prior to adopting this resolution of December 30, the school board did not attempt to establish which of the 184 absent teachers had received actual notice of the board’s December 20 resolution. On January 6, 1975, counsel for the teachers responded to the December 30 resolution with a demand for individual hearings before the board as provided for in § 6 of PERA, MCL 423.206; MSA 17.455(6). Simultaneously, unfair labor practice charges were filed against the board before the Michigan Employment Relations Commission. The teachers also sought immediate injunctive relief from the circuit court, alleging that the December 30 firings were ineffective as they did not comply with the teachers’ tenure act (hereinafter TTA), MCL 38.71 et seq.; MSA 15.1971 et seq.
On January 10, 1975, the school board’s action in discharging these teachers was declared invalid by a three-judge panel of the Wayne County Circuit Court: Judge Bowles and Judge Roumell concurred in the majority opinion, Judge Rashid dissented. The Court of Appeals granted emergency leave to appeal on January 12, heard oral argument on January 17, and the same day issued its unanimous opinion affirming the 2-1 circuit court decision. Rockwell v Crestwood Sch Dist Bd of Ed, 57 Mich App 636; 226 NW2d 596 (1975). The board of education sought emergency relief and the Court of Appeals was reversed by the Supreme Court in a 4-3 decision. 393 Mich 616; 227 NW2d 736 (1975).
In an opinion written by Mr. Justice Levin, the majority assumed arguendo that all teachers had fundamental interests in their livelihood and in their profession, which interests were protected by the due process provisions of Federal and state Constitutions. The majority found, however, that a PERA § 6 post-termination hearing adequately fulfilled the constitutional obligation. The Supreme Court also vacated the Court of Appeals’ decision requiring binding arbitration and remanded the entire matter for hearings under § 6 of PERA. In an effort to guide the board in the conduct of these hearings, the Court stated at 640-641:
”A § 6 hearing is of limited inquiry. Its sole purpose is to determine whether the employer correctly identi-ñed the particular employee as a violator of the act’s prohibition against striking. Since the hearing will ordinarily be conducted by the employer, as the officer or body having general disciplinary authority, a §6 hearing is not an appropriate forum for the employee to assert in defense the employer’s violation of the act. Allegations of or defenses premised upon employer misconduct are the exclusive province of the MERC to resolve upon the filing of an unfair labor practice charge.” (Emphasis added.)
The Court held that post-termination hearings conducted under the guidance of § 6 would satisfy the due process requirements elucidated in Armstrong v Manzo, 380 US 545, 552; 85 S Ct 1187; 14 L Ed 2d 62 (1965), and Arnett v Kennedy, 416 US 134; 94 S Ct 1633; 40 L Ed 2d 15 (1974). It noted the disavowal of any rigid doctrine of due process in Cafeteria & Restaurant Workers Union v McElroy, 367 US 886, 895; 81 S Ct 1743; 6 L Ed 2d 1230 (1961): "The very nature of due process negates any concept of inflexible procedures universally applicable to every imaginable situation.”
Mr. Justice Levin, speaking for the majority, went on to say at 635:
"The possibility of removal of a non-striker is minimized when, as here, the school board gives each striking teacher personal notice of the opportunity to return to the classroom before disciplinary action is taken. While on strike, a teacher receives no compensation; striking teachers do not suffer additional interim financial deprivation when disciplined.” (Emphasis added.)
Rehearing before the Michigan Supreme Court was denied, 394 Mich 944 (1975).
Administrative Law Judge Shlomo Sperka of the MERC absolved the board of any illegal conduct in the firings and recommended an order confirming the teachers’ discharge. His order was adopted by the MERC and affirmed by the Court of Appeals in Crestwood Ed Assn v Employment Relations Commission, 71 Mich App 347; 248 NW2d 266 (1976), lv den 399 Mich 853 (1977).
PERA hearings before the Crestwood Board of Education commenced in August of 1975. Counsel for the teachers expressed concern over the board’s ability to proceed as an impartial tribunal, claiming bias on the part of two of the current board members. Counsel for the teachers objected generally to the board’s alleged incapacity to sit in judgment upon its own actions. The board rejected efforts by the teachers’ counsel to conduct a voir dire of the individual board members in an effort to document their incapacity to render an objective decision.
Throughout the hearings, the board’s counsel called witnesses, conducted direct examination, cross-examined witnesses called by the teachers, and interposed objections to evidence proferred by the teachers’ counsel. They also advised the board, both publicly and privately, with respect to rulings on evidence, hearing procedures, and the board’s duties generally.
Under the Supreme Court’s decision in Rockwell, the only question at issue in these proceedings was the identity of striking teachers. The board found that it had correctly identified 139 teachers as participants in the illegal strike, and affirmed their discharge. Findings of fact as to individual teachers were not adopted. Pursuant to § 6 of PERA, the teachers appealed this decision to the circuit court. Judge Rashid supplemented the record from below with the testimony of the superintendent of schools and the superintendent’s secretary. On the basis of that testimony he ruled that the school board gave adequate notice of the December 30 meeting. Judge Rashid found no authority for granting the teachers’ demands for voir dire of the board. He also found insufficient evidence of bias to merit relief.
The circuit court agreed with the teachers, however, with respect to several alleged procedural defects. It held that although PERA obviated the necessity for a hearing prior to termination, the post-termination hearing must be conducted according to the provisions of the TTA. It held that the board erred, therefore, in refusing to exercise its subpoena power, and in failing to provide the teachers with transcripts. For these reasons, the matter was remanded for further hearings. Judge Rashid also held that the December 20 resolution provided adequate notice of the board’s charges against the teachers and that the written decisions of the board were sufficient to apprise the teachers of its findings of fact. Nevertheless, the court recommended that upon remand the board briefly express specific factual findings with respect to individual dispositions. The court further noted that the burden of establishing involvement in the strike was on the charging party, the board, which must prove that a strike existed; the board was also required to show that the strike was in violation of PERA; and that the individual teacher participated in such illegal strike. Under the cir cumstances of the instant case, the court held that the board could take judicial notice of the existence of an illegal strike.
Counsel for the teachers also petitioned the Supreme Court to set aside its original decision, alleging that counsel for the board had fraudulently deceived that Court as to the extent of notice received by the teachers of the December 20 resolution. This motion was denied, 399 Mich 1045 (1977).
The hearings on remand began in January of 1977 and continued through July. Finally the board passed upon the cases of those teachers who continued to seek reinstatement and affirmed its decision in each of said 139 instances. The teachers appealed once again to the circuit court. Judge Rashid affirmed the discharge of 127 teachers, but reversed as to 12 teachers who, by proof of illness or absence from the jurisdiction, had rebutted the board’s prima facie case of wilful nonappearance on December 27. These 12 teachers were ordered reinstated. In reaching his decision, Judge Rashid considered only the teachers’ absence on December 27. Judge Rashid held the school board’s ultimatum to be an offer of "grace” to teachers attending school on the 27th which due process mandated must be given to all striking teachers.
In the course of his latest opinion, Judge Rashid found the following matters to be established: that the December 20 resolution was sent to the last known address of each teacher by certified mail; that some 200 to 700 persons, including teachers and officers of the teachers’ union, attended the December 20 meeting; that the school superintendent contacted picketing teachers, union officials and representatives of the media, urging the teachers to return to school on December 27; and finally, that media coverage was extensive. The court held that this evidence, taken as a whole, was sufficient to establish a strong inference that each teacher had notice of the resolution and was therefore wilfully absent. The 12 reinstated teachers were held to have rebutted this inference by presenting evidence of lack of notice, or of substantial compliance with absentee reporting procedures. The board of education appeals Judge Rash-id’s decision in these 12 cases. The 127 teachers who were not reinstated also appeal, alleging several errors in the proceedings below.
The teachers first assert that the action of the school board in terminating their employment was a violation of due process of law under Const 1963, art 1, § 17 and the US Const, Am XIV. It is clear since the decision in West Virginia State Bd of Ed v Barnette, 319 US 624, 637; 63 S Ct 1178; 87 L Ed 1628 (1943), that actions of the board of education do constitute state action within the meaning of US Const, Am XIV. Similarly, with respect to the state constitution, see Whitehead v Bd of Ed of Detroit, 139 Mich 490, 494; 102 NW 1028 (1905), and Sayers v Sch Dist No 1, Fractional, 366 Mich 217; 114 NW2d 191 (1962). It is also clear that the teachers had a "legitimate claim of entitlement to job tenure” under the holding in Hortonville Joint Sch Dist No 1 v Hortonville Ed Assn, 426 US 482, 488, n 2; 96 S Ct 2308; 49 L Ed 2d 1 (1976). The teachers claim that the board’s action violated due process in that: 1) the actions of the board constituted an illegal bill of attainder proscribed in US Const, art 1, § 9(3), and 2) the procedures adopted to allow the teachers a hearing following discharge were inadequate.
The appellant-teachers’ argument that the resolutions passed by the school board constituted an illegal bill of attainder contrary to US Const, art 1, §9(3) finds no support in constitutional law. Reasonable restrictions or limitations on the right to be employed in governmental service or to continue therein are not in the nature of bills of attainder. See Gaidamavice v Newaygo Bd of County Rd Commrs, 341 Mich 280; 67 NW2d 178 (1954), Detroit v Div 26 of the Amalgamated Assn of Street, Electric Railway & Motor Coach Employees of America, 332 Mich 237, 252; 51 NW2d 228 (1952), app dis 344 US 805; 73 S Ct 37; 97 L Ed 627 (1952), reh den 344 US 882; 73 S Ct 164; 97 L Ed 683 (1952). The board’s disciplinary actions, clearly intended by and provided for under the PERA, were not legislative action such as that outlawed in United States v Lovett, 328 US 303; 66 S Ct 1073; 90 L Ed 1252 (1946).
Next, the teachers argue that the circuit court’s action in remanding the PERA § 6 hearings to the school board in order to remedy the mistakes in procedure was in itself a violation of the teachers’ rights to due process. Teachers argue first that the board’s failure to act within the proper procedural framework required that its decisions be reversed and that the teachers be reinstated.
In Davis v River Rouge Bd of Ed, 73 Mich App 358, 362; 251 NW2d 585 (1977), rem 402 Mich 819 (1977), the Court of Appeals held that the purpose of the TTA was to protect teachers’ rights, and that being remedial, the statute required strict compliance. In Lawson v Wayne Community Sch Dist, 63 Mich App 57, 62; 233 NW2d 713 (1975), it was held that the appropriate remedy for failure to proceed under the regulations of the TTA is reinstatement, subject however to mitigation.
In remanding to the school board the circuit court, by way of analogy, cited MCL 423.216(d); MSA 17.455(16)(d), which expressly allows the Court of Appeals to remand unfair labor practice litigation. Similarly, MCL 24.306(2); MSA 3.560(206)(2) provides that proceedings under the Administrative Procedures Act (hereinafter APA), which we believe must carry great weight in cases such as this, may be remanded. We agree with the circuit court that the policy underlying PERA requires that the circuit court be vested with the power to remand in order to supplement the record; the APA recognizes that this power is essential to circuit court appellate review of administrative proceedings. This decision also finds support by analogy in the procedure adopted in § 631 of the Revised Judicature Act, MCL 600.631; MSA 27A.631 as implemented by GCR 1963, 701, 702 and 706.
When this matter was first before the Michigan Supreme Court, Mr. Justice Levin, in discussing the applicable procedure, stated in Rockwell, at 628-629:
"Section 6 further provides that the proceeding for the determination whether the public employee violated the provisions of the PERA shall be 'appropriate’ to a proceeding for the removal of the employee * * * and thus, in the case of a tenured teacher, consonant with the tenor of the procedures spelled out in the teachers' tenure act. But to the extent there is conñict * * * the PERA is to govern [and] '[notwithstanding the provisions of any other law’.” (Emphasis added.)
Judge Rashid, in his first opinion, instructed the parties as to the applicable procedure by paraphrasing the above as follows:
"Stated succinctly the procedures to be employed in the § 6 hearings are those set forth in the TTA, except where an inconsistency between that act and the dictates of the PERA evinces itself. In those instances PERA prevails. Here the relevant inconsistencies are the right to pre-termination versus post-termination hearings and the appellate prerogatives. In other areas where the PERA does not address procedural rules and the TTA does, ergo there is no manifest inconsistency, the latter act, to wit the TTA, obtains.” (Emphasis added.)
The TTA in MCL 38.104(e) and (g); MSA 15.2004(e) and (g) clearly provides that the teachers are entitled to transcripts and that the board is required to issue subpoenas to the teachers. The board offered, as an excuse for its failure to follow the required procedure in the original proceedings, its failure to understand the instructions given by the Supreme Court.
After holding that the board had failed to prove a prima facie case by failing to show that the teachers had received notice of the December 20 resolution, Judge Rashid remanded the hearings to the board citing the above defects and also setting forth the burden of proof which the board must meet. In his clarifying opinion of October 19, Judge Rashid reiterated his impression that the procedural defects were not intentional and held:
"It is settled that a court may remand a case for further proceedings in the interests of justice, Lorland Civic Association v DiMatteo, 10 Mich App 129 [157 NW2d 1] (1968). Were equity the compelling consideration the present holding would be the same, as it was evident from the transcripts that the parties acted upon mistaken impressions of the applicable law. The remand order of September 14, 1976 was a function of the fact that the record was not complete, and therefore not amenable to proper review. As a result of further hearings, the record will have been made whole, the interests of the parties will have been preserved. The courts have been traditionally liberal in exercising the power of remand with respect to appeals from administrative agencies for in reviewing administrative action the court need not observe the technical rules which are applied in reviewing actions of regularly constituted trial courts, Reck v Whittlesberger, 181 Mich 463 [148 NW 247] (1914).”
See also, 2 Am Jur 2d, Administrative Law, § 527, pp 338-339. While it is true that cases are not to be tried a piece at a time, Stephenson v Golden, 279 Mich 710, 733; 276 NW 849 (1937), and that where a party with the burden of proof has failed to sustain that burden, reversal and judgment for the opposing party is usually warranted, In The Matter of LaFlure, 48 Mich App 377; 210 NW2d 482 (1973), these cases do not require the result which the teachers suggest. Judge Rashid’s opinion evidences a sincere consideration of the conflicting policies underlying administrative review: the desire for finality balanced against the need for close scrutiny in order to insure proper decision-making. The judge’s holding, guided by the analogous provisions above, was a perfectly sound interpretation of legislative intent, based upon his reading of the PERA; it is not clearly erroneous, nor were his orders an abuse of discretion or a violation of due process.
The teachers object to the adequacy of the resolution utilized as notice to apprise the teachers of their duties with respect to the December 20 resolution: 1) it is alleged that the resolution was not calculated to apprise the teachers of a choice of action, and 2) that it was ambiguous in that the teachers’ choices were not properly stated as options. Michigan law requires that any such writing which is intended to be relied upon to constitute notice to another party must be construed against the preparer of that notice. Sroka v Catsman Transit-Mix Concrete, Inc, 350 Mich 672, 676; 86 NW2d 801 (1957), and Ben T Young Co v Lafayette East Co, 56 Mich App 54, 57; 223 NW2d 361 (1974). It can hardly be doubted that the notice fully informed its recipients of the school board’s intentions. Nothing more than this is required. If received, this resolution clearly would give a person of ordinary intelligence fair notice of the school board’s action. Papachristou v City of Jacksonville, 405 US 156, 162; 92 S Ct 839; 31 L Ed 2d 110 (1972).
The teachers also allege error with respect to the adequacy of service of the December 20 resolution. Despite the board’s contentions to the contrary, the teachers are not foreclosed from challenging the adequacy of notice received by teachers of the December 20 resolution. Counsel for the teachers contend they were unaware of the inadequacy of notice when the case was first argued before the Supreme Court in Rockwell. The matter concerning the service of the notice upon the teachers was not placed in issue by the teachers in the Rockwell case. The Supreme Court’s denial of petitioners’ motion to set aside its original decision does not imply a decision on the merits of petitioners’ notice claim. See Allen v Michigan Bell Telephone Co, 18 Mich App 632; 171 NW2d 689 (1969), lv den 383 Mich 804 (1970), 61 Mich App 62, 66; 232 NW2d 302 (1975).
Finally, assuming that §6 requires that notice be given a teacher prior to taking disciplinary action against him, this does not determine whether or not due process requires that all teachers receive notice of an offer of "grace”. The December 20 resolution was an offer of "grace”, it was "[t]he Board’s attempt to get the strikers into school on the 27th of December [and] was obviously meant to be a last chance for those teachers to purge themselves of their past defiance of their obligations as public employees”. (Emphasis added.) Appellant Crestwood Board of Education’s brief.
One of the most obvious precepts of due process is that all members of any given class must be afforded substantially the same procedure; in this case, given the board’s stated intent, it was necessary that the board extend to each teacher the same opportunity to make amends for his or her past illegal conduct.
The trial court held that the board’s good faith efforts to notify the teachers of their required attendance on the 27th was adequate notice of the board’s intentions, without requiring proof of receipt of notice by each discharged individual. Taking into account the extensive media coverage, the personal contacts of the superintendent, the heavy attendance at the December 20 meeting, the fact that notices of attempted delivery were left at all houses where delivery could not be effected, and the overall circumstances of the labor dispute, the court felt that despite the large number of notices which were not received, the board had established a rebuttable presumption of notice. Teachers, in response, look to Weckerly v Mona Shores Bd of Ed, 388 Mich 731, 735; 202 NW2d 777 (1972), which held: "the postman’s leaving the notice of attempted delivery of the letter enclosing the written notice is not providing the written notice, which was returned to the post office” and to the decision of other state courts which have held that one may not presume that a registered letter which is never claimed was known to be in existence by the addressee. Cf: Stone v Sinkfield, 70 Ga App 787; 29 SE2d 310, 311 (1944), Paxson v Crowson, 47 Del 114, 117; 87 A2d 881 (1952), Lendsay v Cotton, 123 So 2d 745, 747 (Fla App, 1960). We agree with the proposition for which these cases are cited, that is, that receipt of notice of attempted delivery alone would not establish a rebuttable presumption of notice. Nevertheless, we do agree with the finding of the circuit court that, taken together, the circumstances of this case indicate a very high probability that the individual teachers were aware of the actions of the school board prior to December 27. Apparent individual exceptions to this rule will be discussed later.
In Mullane v Central Hanover Bank & Trust Co, 339 US 306, 314-315; 70 S Ct 652; 94 L Ed 865 (1950), the Supreme Court discussed the doctrine of due process when it stated that:
“An elementary and fundamental requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all the circumstances, to apprise interested parties of the pen-dency of the action and afford them an opportunity to [respond]. * * * The notice must be of such nature as reasonably to convey the required information, * * * and it must afford a reasonable time for those interested to make their appearance * * *. But if with due regard for the practicalities and peculiarities of the case these conditions are reasonably met, the constitutional requirements are satisñed. 'The criterion is not the possibility of conceivable injury but the just and reasonable character of the requirements, having reference to the subject with which the statute deals.’ * * *
"But when notice is a person’s due, process which is a mere gesture is not due process. The means employed must be such as one desirous of actually informing the absentee might reasonably adopt to accomplish it.” (Emphasis added.) (Citations omitted.)
We rule that evidence of the above-enumerated actions taken by the school board to insure the teachers’ attendance on December 27 indicates that more than "a mere gesture” was made to apprise the teachers of the December 20 resolution; the school board’s efforts were "reasonable” under all the circumstances. Similarly, we think the actions of the school board satisfy the "flexible” state due process requirement enunciated in Dow v State of Michigan, 396 Mich 192, 207-211; 240 NW2d 450 (1976).
The teachers’ next set of alleged errors focus upon procedural matters relevant to the § 6 hearings. As noted above, the Michigan Supreme Court held in Rockwell, 393 Mich at 628, that the proce dure followed in the hearings conducted by the school board must be "consonant with the tenor of the procedures spelled out in the teachers’ tenure act”; in addition, the teachers suggest that the APA, MCL 24.201, et seq.; MSA 3.560(101), et seq., should also have been complied with by the school board.
The teachers note that §§ 7, 42, 45 and 46 of the APA, that is, MCL 24.207; MSA 3.560(107), MCL 24.242; MSA 3.560(142), MCL 24.245; MSA 3.560(145), and MCL 24.246; MSA 3.560(146), require the adoption of rules of procedure in advance of commencement of proceedings. Counsel for the teachers objected strenuously when the school board failed to outline, on the record, the governing rules of procedure for the PERA § 6 hearings. While it would have been preferable for the school board to have adopted a specific set of rules of procedure, we find that during the remanded hearings the school board substantially complied with the Supreme Court’s directive that the § 6 proceedings be consonant with the tenor of the procedures spelled out in the TTA and that the teachers were not prejudiced by any failure to place specific rules of procedure on the record. On review, it appears that all parties to the § 6 hearings thoroughly understood the basic procedure which was followed and, thus, the purposes of the APA have been served. Failure to specify and follow a certain set of rules as set out in APA does not require reversal in the instant case.
Both the APA and § 2 of the TTA, MCL 38.102; MSA 15.2002, require that the teacher receive signed notice of all charges standing against him. See also, Biberstine v Port Austin Pub Sch Dist No 9, 51 Mich App 274; 214 NW2d 729 (1974). We rule as did the circuit court that the notice of charges contained in the December 20 and December 30 resolutions of the school board satisfied the purpose of this provision. Clearly, § 2 is aimed at eliminating the specter of groundless and unidentified charges. Members of the CEA were all well aware of the school board’s complaint. The focus of the instant hearings was not, as would usually be the case, upon determining whether charges against an individual teacher’s character were correct or true. Rather, as the Supreme Court held, the only question at issue here was whether or not an individual teacher had participated in the strike. It was established at the hearing that all of the dismissed teachers had been a part of the strike in the months of September and December.
Counsel for the teachers also decry the board’s practice of adopting at the conclusion of each hearing a routine resolution whereby each of the subject reinstatement petitions was denied and the December 20 and December 30 resolutions were affirmed. Findings of fact and law were allegedly not sufficiently individualized according to § 4(f) of the TTA, MCL 38.104(f); MSA 15.2004(f).
The teachers, citing numerous decisions of the Michigan and United States Supreme Courts, note that in order for the appellate process to be effective the hearing body must delineate its findings clearly. However, our Supreme Court has ruled:
" 'Courts are indulgent toward administrative action to the extent of affirming an order where the agency’s path can be "discerned” even if the opinion "leaves much to be desired.” ’ ” Viculin v Dept of Civil Service, 386 Mich 375, 406; 192 NW2d 449 (1971), citing WAIT Radio v Federal Communications Comm, 135 US App DC 317, 320; 418 F2d 1153, 1156 (1969).
The teachers further argue that the board improp erly placed the burden of proof on individual teachers to absolve themselves of participation in the illegal strike. The teachers note that the Supreme Court in Rockwell, 393 Mich at 650, placed the burden upon the board to identify any particular teacher as a violator of PERA. The teachers apparently claim that the board’s action in relying upon the prima facie showing of participation in the strike and notice of the resolution placed them in an untenable position where they could no longer exercise their Fifth Amendment privilege against self-incrimination by refusing to testify at the § 6 hearings. As was discussed above, however, the school board did not place the burden of proof upon the teachers. Rather it established under § 6 a prima facie case of involvement in the strike which the teachers, in order to gain reinstatement, were required to rebut. The risk of non-persuasion remained with the board of education throughout the § 6 hearings. Only the burden of going forward with the evidence devolved upon the teachers after a prima facie case was established by the board.
The teachers also argue that the board’s participation in the proceedings, both in an investigative and in an adjudicatory role, was a violation of due process. In Crampton v Dept of State, 395 Mich 347, 351; 235 NW2d 352 (1975), the Court held that "[a] hearing before an unbiased and impartial decisionmaker is a basic requirement of due process”. The combination of investigative and adjudicative roles in a single agency has been expressly upheld in Withrow v Larkin, 421 US 35; 95 S Ct 1456; 43 L Ed 2d 712 (1975), and In the Matter of Del Rio, 400 Mich 665, 690 et seq.; 256 NW2d 727 (1977).
In the instant case, § 6 specifically requires that the individual hearings take place before the school board. Appellant teachers claim, however, that the Crestwood litigation is "a special case” and that § 6 should not apply, due to the extreme involvement of individual members of the school board. The circuit court failed to find sufficient evidence of prejudice on the part of the school board to support the teachers’ claims. We agree with the circuit court.
The teachers also suggest that this Court should adopt a stricter standard than has been adopted by the Federal courts with respect to involvement of counsel for the board both in presenting the board’s case and as advisor to the board. The Pennsylvania courts have adopted a very strict approach, such as the teachers recommend. See English v North East Bd of Ed, 22 Pa Comm 240; 348 A2d 494 (1975), and Horn v Twp of Hilltown, 461 Pa 745; 337 A2d 858 (1975). While this approach is consistent with § 79 of the APA, it is also a much stricter standard than has been required under the Federal Constitution. We prefer to adhere to the Federal rule, admonishing district school boards that only if evidence of prejudice or bias clearly appears on the record will participation of counsel in a dual role constitute a violation of due process.
With respect to the teachers’ allegations of bias upon the part of the school board and denial of due process, the teachers cite numerous cases decided by the United States Supreme Court with respect to the need for an impartial decisionmaker. None of these decisions, however, is so closely on point as is Hortonville Joint Sch Dist No 1 v Hortonville Ed Assn, 426 US 482, 491-492; 96 S Ct 2308; 49 L Ed 2d 1 (1976). Hortonville considered the propriety of a school board holding initial hearings to determine the validity of dismissals made by it, based upon participation in an illegal strike. With respect to bias on the part of the school board, the Supreme Court said at 491-493, 495,496-497:
"General language about due process in a holding concerning revocation of parole is not a reliable basis for dealing with the School Board’s power as an employer to dismiss teachers for cause.
"Respondents’ argument rests in part on doctrines that have no application to this case. They seem to argue that the Board members had some personal or official stake in the decision whether the teachers should be dismissed, comparable to the stake the Court saw in * * * [cases previously decided] and that the Board has manifested some personal bitterness toward the teachers, aroused by teacher criticism of the Board during the strike * * *. Even assuming that those cases state the governing standards when the decisionmaker is a public employer dealing with employees, the teachers did not show, and the Wisconsin courts did not find, that the Board members had the kind of personal or ñnancial stake in the decision that might create a conñict of interest, and there is nothing in the record to support charges of personal animosity.
* * *
"The only other factor suggested to support the claim of bias is that the School Board was involved in the negotiations that preceded and precipitated the striking teachers’ discharge. Participation in those negotiations was a statutory duty of the Board. * * * Mere familiarity with the facts of a case gained by an agency in the performance of its statutory role does not, however, disqualify a decisionmaker. * * * Nor is a decision-maker disqualiñed simply because he has taken a position, even in public, on a policy issue related to the dispute, in the absence of a showing that he is not 'capable of judging a particular controversy fairly on the basis of its own circumstances. ’
"[E]ven if the property interest claimed here is to be compared with the liberty interest at stake in Morrissey [v Brewer, 408 US 471; 92 S Ct 2593; 33 L Ed 2d 484 (1972)], we note that both 'the risk of an erroneous deprivation’ and 'the degree of potential deprivation’ differ in a qualitative sense and in degree from those in Morrissey. * * *
"The governmental interests at stake in this case also differ significantly from the interests at stake in Morris-sey. The Board’s decision whether to dismiss striking teachers involves broad considerations, and does not in the main turn on the Board’s view of the 'seriousness’ of the teachers’ conduct or the factors they urge mitigated their violation of state law. It was not an adjudicative decision, for the Board had an obligation to make a decision based on its own answer to an important question of policy: What choice among the alternative responses to the teachers’ strike will best serve the interests of the school system, the interests of the parents and children who depend on the system, and the interests of the citizens whose taxes support it? The Board’s decision was only incidentally a disciplinary decision; it had significant governmental and public policy dimensions as well.
"Respondents have failed to demonstrate that the decision to terminate their employment was infected by the sort of bias that we have held to disqualify other decisionmakers as a matter of federal due process. A showing that the Board was 'involved’ in the events preceding this decision, in light of the important interest in leaving with the Board the power given by the state legislature, is not enough to overcome the presumption of honesty and integrity in policymakers with decisionmaking power. * * * Accordingly, we hold that the Due Process Clause of the Fourteenth Amendment did not guarantee respondents that the decision to terminate their employment would be made or reviewed by a body other than the School Board.” (Emphasis added.) (Citations omitted.)
We do not find sufficient evidence of bias in this case to differentiate it from the decision reached by the United States Supreme Court in Horton-ville. While the decisions cited by the teachers with respect to previously expressed "opinions on the very merits” and "announced intentions to dismiss”, Cinderella Career & Finishing Schools, Inc v Federal Trade Comm, 138 US App DC 152; 425 F2d 583, 590-592 (1970), Staton v Mayes, 552 F2d 908 (CA 10, 1977), cert den, 434 US 907; 98 S Ct 309; 54 L Ed 2d 195 (1977), must carry some weight in our decision, we find the facts of the instant case to be more closely analogous to those in Hortonville, especially given the weight assigned by the Supreme Court to the school board’s policymaking role.
Finally, the teachers argue that the December 30 special meeting was improperly called as none of the members of the board was served with notice of said meeting and there is no provision under MCL 340.63; MSA 15.3063 to waive notice. Such meetings may be held with or without proper notice provided that all members of the board are present, MCL 340.561; MSA 15.3561. Since one of the members of the board was not present at the December 30 meeting, and since the board members did not receive written notice of that meeting, the teachers argue that it was improperly convened and, therefore, that any action taken by the board at that meeting, in this case dismissal of teachers who failed to report on December 27, is illegal and of no effect.
When counsel for the teachers originally requested copies of the notice for the December 30 meeting, they instead received a purported waiver of notice containing signatures of board members no longer on the board in December of 1974. The board explained this discrepancy by its claim that the waiver of notice from an earlier meeting had accidently been attached to the December 30 agenda. The proper notice was eventually found, produced and attached to the December 30 agenda. The teachers argue that such substitution amounts to an illegal modification of official records.
While one of the cases cited by appellants, Tavener v Elk Rapids Rural Agricultural Sch Dist, 341 Mich 244, 251-252; 67 NW2d 136 (1954), does hold that official records may not be altered by parol evidence, this is not the issue in the present case. The originally produced waiver of notice was incorrect on its face. If anything, the problem faced by the school board was one of authentication, not of parol evidence. At any rate, parol evidence is admissible to prove a mistake relative to a written instrument, Bush v Merriman, 87 Mich 260; 49 NW 567 (1891), or to show error in legislative journals, State ex rel Morris v Secretary of State, 43 La Ann 590; 9 So 776 (1891). It is also admissible to show error in the records of local legislative bodies, State ex rel McCrate v Rhodes, 349 Mo 1071; 163 SW2d 978 (1942). Therefore, to the extent parol evidence was necessary to establish that the substituted waiver of notice was the correct waiver, it was admissible: this is especially true where, as here, it is not even clear that giving notice was that type of action of which an official record was required to be kept, since MCL 340.63 merely required that notice be given. The action of the school board members in waiving notice of the December 30 meeting did not invalidate the December 30 resolution. Since each of the members of the school board was in fact notified of the December 30 meeting and since the teachers raised no allegations of prejudice resulting from either the manner of notice or from the absence of the single member of the school board, we do not agree with the teachers that the claimed irregular ities in noticing the December 30 meeting require reversal. Cf., Royal Oak Sch Dist v Schulman, 68 Mich App 589, 593; 243 NW2d 673 (1976), Saginaw County v State Tax Comm, 54 Mich App 160, 167-168; 220 NW2d 706 (1974), aff'd sub nom Emmet County v State Tax Comm, 397 Mich 550; 244 NW2d 909 (1976).
The teachers also attack the adequacy of public notice of the December 30 meeting. MCL 15.253; MSA 4.1800(3) (repealed by 1976 PA 266, eff. January 1, 1977), provided the applicable statutory requirements:
"Every board shall hold all public meetings at specified times and places, of which public notice shall be given. * * * Public notice of each special meeting and of each rescheduled regular or special meeting shall be given of the date, time and place of each meeting. Public notice shall be given by posting a copy of the notice prominently at the principal office of the body holding the meeting or at the public building in which the meeting is to be held * * * at least 12 hours prior to the time of the meeting in the case of special or rescheduled meetings.”
The document relied upon and authenticated by the board as public notice is the same document which the board members purported to rely upon as a waiver of personal notice. This document fixes the time and date of the meeting and it also indicates that it is notice of a meeting. It does not, however, indicate that the meeting which was to be held was a school board meeting, nor does it indicate where the meeting was to be held. Thus, it does not comply with the statutory requirements above.
MCL 15.253 was enacted to insure the public a forum to express its opinions on subjects of interest before the board, Haven v City of Troy, 39 Mich App 219, 223-224; 197 NW2d 496 (1972). Once again this policy is not relevant to the issues raised in the instant litigation. The teachers do not argue, nor could they argue, that the public was unaware of the meeting, or that greater public attendance would have resulted in a different outcome. Nor do the teachers allege that they were unaware of the meeting.
Because the record clearly indicates, first, that all interested parties were aware of the December 30 meeting; second, the general public was fully aware of the meeting and the dispute between the parties; and third, that the board substantially complied with the statute, we do not feel that those Michigan cases requiring strict compliance with the statutory procedure are apposite. Such cases, Himes v City of Flint, 38 Mich App 308; 196 NW2d 321 (1972), and Keating International Corp v Orion Twp, 51 Mich App 122; 214 NW2d 551 (1974), aff’d 395 Mich 539; 236 NW2d 409 (1975), involve notice to persons directly affected by the administrative acts who are unlikely to be aware of such acts absent the requisite notice. In those cases, strict compliance is necessary in order to fulfill the statutory purpose. The notice under consideration was posted in the school board offices where such notices were normally posted, and both time and date were given. The notice contained the signatures of all members of the board. We do not believe that failure to strictly comply with the statutory requirements mandates reversal under these circumstances, as we find this to be too minor a matter upon which to hinge the outcome of the instant litigation. Therefore, we hold that in these unique circumstances, substantial compliance with the statutory provision is sufficient. Given the fact that the school board’s actions during this ten-day period received a great deal of publicity, for the most part at the school board’s behest, we find the basic policy underlying this statute to have been adequately fulfilled.
Because the facts do not vary with respect to the dismissal and § 6 hearings of the great majority of dismissed teachers, we need only consider a few cases individually. The standard by which the actions of the school board must be reviewed is set out in Detroit v General Foods Corp, 39 Mich App 180, 190; 197 NW2d 315 (1972), and MCL 423.206; MSA 17.455(6): "competent, material and substantial evidence” must support the findings upon consideration of the entire record of the proceeding below. As noted above, the Supreme Court in. Rockwell at 640 determined that the only issue before the board during the § 6 hearings was whether or not a particular teacher was involved in the illegal strike. We need consider then only whether there is "competent, material and substantial evidence” appearing on the record to support the board’s decision that each individual teacher dismissed was in fact participating in the strike. It was also noted above that the school board bears the burden of proof in this matter.
The evidence shows that the CEA, at its meeting of November 26, 1974, recommended that teachers withhold their services beginning December 2. On December 2 and 3, school was, in fact, cancelled due to inclement weather and teachers were not to report until December 4. On that day, the dismissed teachers did not report for school and did not comply with the absentee procedure. In addition, the head of the CEA admitted that a strike was ongoing during the fall of 1974; and other tribunals have found this strike to have been an illegal strike based upon economic issues, one not. excused by unfair labor practices committed on the part of the school board. Taking each of these factors into account, the board purported to look to the teacher’s absentee record during the two prolonged strike periods occurring in the fall of 1974 and to the teacher’s presence or absence on December 27. Specific findings were made with respect to the teacher’s utilization of the absentee reporting procedure and testimony was taken to indicate whether or not the teacher was observed picketing before one of the school buildings in the Crestwood district.
Under GCR 1963, 517.1, this Court must give due regard to the finder-of-fact’s opportunity to assess the credibility of witnesses appearing before it and to weigh the evidence which it has heard. This Court will not "substitute its judgment on the facts for that of the fact-finding tribunal”. Williams v Arnold Cleaners, Inc, 25 Mich App 672, 675; 181 NW2d 625 (1970). Nevertheless, as suggested in Osborne v Bullitt County Bd of Ed, 415 SW2d 607 (Ky App, 1967), given the unique role assigned to the school board in matters such as these, the Court must also pay close scrutiny to the findings of the board in order to assure that they are supported by the record. Judge Rashid found that three of the dismissed teachers, appel-lees herein, had substantially complied with the school board’s absentee reporting procedure, and were therefore wrongfully terminated. S. Arnold, S. Buckholz and S. Howell each contacted the board with respect to their absence during the month of December, providing an excuse therefor. While each of these teachers was also absent during the September strike period, we agree with the circuit court that due process required that all teachers be extended the opportunity to absolve themselves of their earlier misconduct by attend- anee on December 27. Persons who were unable to return to work and who notified the school of their incapacity to report for work were in compliance with school procedure.
The record indicates a substantial likelihood that appellees Arnold and Howell notified the school board by telephone early in December of their incapacity to report to work. Similarly, ap-pellee Buckholz, due to the fortuitous circumstance that her mother worked in the superintendent’s office, was found to have informed the school administration of her inability to report for work. In addition, the record indicates that appellee Arnold was unaware of the December 20 resolution in time to comply with the included order. As the burden of persuasion remained with the school board during these hearings, we do not believe that the circuit court erred in reversing the findings of the board with respect to these three appellees.
The circuit court also reversed the board with respect to nine other teachers who presented evidence of their absence from the Dearborn area during the time period in question. Notice of attempted delivery was left at the residence of each of these teachers, however, evidence presented in their behalf at the § 6 hearings indicated that this notice was ineffective as the individual was no longer likely to have received it. Appellees J. Goszyk, J. Hayes, M. Hutler, A. Robinson, A. Soutar, P. Valdori, L. Boroditsch, J. Cialone, and V. Drean presented evidence that they left the Dearborn area soon after the school board’s December 20 resolution and did not return until after the December 27 "deadline” for responding. Since these appellees did not receive the written notice sent by the school board, and also cannot be presumed to have benefited from the attendant publicity, the evidence presented on their behalf clearly rebuts the school board’s prima facie case of wilful absence on December 27.
The evidence offered in favor of the remaining dismissed teachers is highly similar, and they may be considered by groups. Six teachers did not receive timely notice by mail. One of these six, however, was observed pciketing on December 27, thereby indicating he was indeed aware of his obligations on that date. The remainder offered no further evidence to explain their absence on December 27 and were correctly presumed to have received notice of their duty of attendance under our ruling herein,
Several appellants offered evidence of appointments with physicians on December 27. None of these teachers, however, complied with the absentee procedure, even though all were in town. Other teachers offered evidence of limited absence from the area comprising only December 27 and one or two additional days. The school board’s conclusion that these teachers received notice of attempted delivery or were otherwise made aware of the board’s December 20 resolution and wilfully ignored their employment duties while also failing to comply with the absentee procedure is supported by the evidence and is not clearly erroneous.
Further, those teachers whose notice was signed on receipt by a member of their household or whose return receipt signature does not match their signature as it appears on school records may properly be presumed to have received notice under the familiar doctrine of imputed notice. The school board’s decision adopted by the circuit court in those cases is also not clearly incorrect, given the teachers’ failure to comply with the absentee procedure. Finally, evidence that a teacher was confined to bed during the month of December is not adequate to rebut the prima facie case established by the board, absent compliance with the absentee reporting procedure.
Taking into account all the circumstances of this case, we agree with the circuit court in its disposition of this matter. The 12 appellee teachers placed sufficient evidence on the record to rebut the board’s prima facie case. Evidence offered by the board to show participation in the strike, including evidence of the good faith attempt of the school board to notify the teachers of their employment duties on December 27, however, combined with the inadequacy of evidence offered in the remaining teachers’ behalf, leads us to conclude that the school board’s termination of the remaining teachers’ employment was not clearly erroneous.
The teachers claim other issues which do not merit discussion or decision.
Affirmed. No costs, a public question being involved.
Rockwell v Crestwood Sch Dist Bd of Ed, 393 Mich 616, 633; 227 NW2d 736 (1975). The Court’s opinion at 631 drew no distinction between tenured and non-tenured teachers:
"All teachers do not have rights of continuing tenure. Yet both tenured and non-tenured teachers are in a single public employee bargaining unit and have the same rights and obligations under Michigan’s labor relations statutes.” (Footnote omitted.)
Before the remanded hearings had begun, the teachers brought a petition for rehearing before the circuit court. In an opinion and order dated October 19, 1976, that court emphasized its finding that PERA granted the circuit court power to remand these hearings in order to cure procedural defects. The court stressed that the defects in the first set of hearings were the result of innocent confusion; it deemed the original record of the hearings, as it existed, inadequate for review. Leave from this Court to appeal the circuit court’s decision to remand was denied by order dated March 24, 1977.
"Strike” is defined in PERA, at MCL 423.201; MSA 17.455(1) and prohibited at MCL 423.202; MSA 17.455(2).
See the statement in Mr. Justice Levin’s opinion at 393 Mich 616, 635.
The trial court found in its opinion the following:
"In addition to establishing that a copy of the Board’s resolution of December 20, 1974 (which in substance established December 27, 1974 as a work day for the District’s teachers and directed the teachers to report to work on December 27, 1974, submit a resignation or be discharged) was mailed on December 21, 1974 to each teacher of the District by certified mail, evidence was presented at the remand hearings establishing (1) that the School Board meeting of December 20, 1974 was attended by from 200 to 700 persons including some of the teachers of the District and also including the officers of the union local serving as bargaining agent for the teachers, (2) that superintendent of schools Rutila, in an effort to see that the teachers were notified to report to work on December 27, 1974, spoke to the TV people, spoke to the newspapers, spoke to some of the people on the picket lines and spoke to the teachers’ bargaining agent requesting that the teachers get back to work (Aboud Tr 1/5/77, vol II, pp 31-33), (3) that Mr. Skopczynski, then President of the School Board, went on TV and pleaded for the teachers to come back to work (Aboud Tr 1/5/77, vol II, p 35), and (4) that among the newspaper articles published between December 20, 1974 and December 27, 1974 was one in the Detroit News of Tuesday, December 24, 1974 which read 'Crestwood deadline near — New talks set in school strike’ [sic] 'The school board four days ago issued an ultimatum to teachers demanding that they report for work Friday or submit their resignations. Those who do neither, the school board vowed, would be dismissed.’ 'School officials, however, said they can and will fire teachers who don’t report for work.’ And another in the Detroit Free Press of Sunday, December 22, 1974 which read 'Return to work or quit — striking teachers warned.’ (Aboud exhibits 143, 143A, 148 and 148A).”
See fn 5, supra.
Since replaced by MCL 380.115; MSA 15.4115, effective January 1977.
The circuit court’s decision that this waiver of notice was in fact genuine is supported by the evidence on appeal. | [
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C. J. Byrns, J.
By information filed on April 14, 1977, defendant was charged with assault with intent to do great bodily harm less than murder, MCL 750.84; MSA 28.279, after he struck another man in the head with a pan of hot water, causing serious injuries to the victim. The maximum term of imprisonment for conviction of the charged offense is ten years. Defendant was convicted of aggravated assault, MCL 750.81a; MSA 28.276(1), after a nonjury trial on June 27, 1977, and was sentenced to a term of one year in the county jail, the maximum incarceration period permitted by the statute under which he was convicted. Defendant now appeals as of right, contending that the rule enunciated in People v Chamblis, 395 Mich 408, 429; 236 NW2d 473, 483 (1975), forbidding a trial judge from instructing a jury on lesser included offenses having a maximum allowable incarceration period of one year or less, where the charged offense is punishable by incarceration for more than two years, is applicable to nonjury as well as jury trials.
Prior to defendant’s waiver of his right to trial by jury, and in his presence, the trial judge stated on the record his belief that the Chamblis rule did not apply to nonjury trials. After the judge expressed his intention to consider lesser offenses (including aggravated assault, assault and battery and simple assault) which would have been precluded from jury consideration under Chamblis, the following colloquy ensued:
"The Court: Now, you have no objection to that?
"Mr. Wallin [assistant prosecutor]: I have no objection.
"The Court: All right.
"Mr. Pierce [defense counsel]: Your Honor, we will waive the jury.
"The Court: All right. Do you want to have your defendant step up?
"The Court: All right. You have been talking to your attorney about this matter and you understand you have a right to be tried by a jury?
"The Defendant: Right.
"The Court: And we cannot take that right away from you, but you can give up that right if you want to. So do you understand that you have that right and privilege?
"The Defendant: Yes, I understand.
"The Court: Okay. But notwithstanding that, you would rather be tried without a jury?
"The Defendant: Right.
"The Court: All right. You have discussed it with him, Mr. Pierce?
"Mr. Pierce: Yes, sir.
"The Court: You feel he understands all his rights in the matter?
"Mr. Pierce: Yes, your Honor, based on the statement we placed on the record that the lesser included offenses would be considered by the judge and would not be considered by the jury.
"The Court: With that in mind, he is ready to waive the jury?
"Mr. Pierce: Yes, your Honor.”
Defendant thereupon signed a form waiving his right to jury trial, was convicted by the court of aggravated assault, and now maintains that his conviction was invalidly obtained in violation of Chamblis.
The Chamblis Court stated its rule as follows:
"We are establishing a rule today, as a matter of policy, limiting the extent of compromise allowable to a jury in deciding whether to convict of a lesser included offense. In any case wherein the charged offense is punishable by incarceration for more than two years, the court, whether or not requested, may not instruct on lesser included offenses for which the maximum allowable incarceration period is one year or less.” People v Chamblis, supra at 429; 236 NW2d at 483.
Defendant’s contention that the Chamblis rule governs bench trials is a novel one which apparently has not been previously addressed by this Court. It is therefore necessary to examine the Chamblis opinion with care to determine whether the rule there set forth is applicable to nonjury as well as jury trials.
A careful perusal of the Chamblis rule reveals that its language is specifically addressed to situations involving jury trials. The rule speaks solely of a limitation imposed upon a trial judge in instructing a jury. No facially demonstrable requirement appears from the statement of the rule itself which would mandate its application to bench as well as jury trials. Consequently, the various factors considered by the Chamblis Court must be analyzed to determine whether they dictate extension of the rule to the present case.
A comparison of the charged offense (assault with intent to commit great bodily harm less than murder) with the offense of which defendant was convicted (aggravated assault) "demonstrates the overlapping of certain elements and common statutory purpose” such that the two crimes may accurately be described as cognate. People v Ora Jones, 395 Mich 379, 389-390; 236 NW2d 461, 465 (1975). In the case at bar, the lesser offense is of the same class or category, or is closely related to the original offense, so as to provide defendant with fair notice that he would be required to defend against it.
Furthermore, defense counsel specifically stated on the record his agreement to have the trial court consider lesser included offenses not considerable by a jury. It would appear from this record that defendant and his counsel wholly or in good part chose a nonjury trial because the court said that while a jury could not consider misdemeanor offenses, including aggravated assault, the court itself could. There can therefore be no question but that defendant’s due-process right to know the nature and cause of the accusation against him was amply met. People v Ora Jones, supra at 388; 236 NW2d at 464, People v Chamblis, supra at 417-419; 236 NW2d at 477-478.
The Chamblis Court’s purpose for establishing the rule of that case was to limit "the extent of compromise allowable to a jury in deciding whether to convict of a lesser included offense”. People v Chamblis, supra at 429; 236 NW2d at 483. The Court, quoting from Comment, 57 NW U L Rev 62, 73 (1962), cited "the policy against harassment and a continual seige of accusations and charges” and concluded that a defendant charged with a serious crime should not be convicted of a much lower offense which bears no realistic relationship to the offense committed. People v Chamblis, supra at 428; 236 NW2d at 483.
The Chamblis rule, it appears to us, resulted in part from the Supreme Court’s concern that where there is a multiplicity of lesser included offenses a jury might become confused and possibly compromise at a defendant’s expense. This should not occur where the trier of fact is a judge learned and experienced in the law.
Although not stated in Chamblis, the rule there expressed prevents a jury not convinced beyond a reasonable doubt from deciding that a defendant deserves some punishment and accordingly finding him guilty of an included misdemeanor.
The evidence in the present case adequately supports the trial judge’s finding that defendant assaulted his victim but lacked the intent requisite for a valid conviction of assault with intent to commit great bodily harm less than murder. Defendant’s conviction of aggravated assault upon an original charge of assault with intent to commit great bodily harm less than murder is obviously substantively distinguishable from the Chamblis prohibition against "convicting of assault and battery a defendant charged with murder”. People v Chamblis, supra at 428; 236 NW2d at 483. Under the facts and circumstances of this case, there is no question but that assault with intent to commit great bodily harm less than murder and aggravated assault are sufficiently related to avoid any contention that the lesser offense bears no realistic relationship to the greater offense or that defendant’s conviction of the lesser offense constituted a form of "harassment”. There was no error.
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D. F. Walsh, J.
Plaintiffs appeal by right from the trial court’s entry of judgment notwithstanding the verdict in favor of defendant Michigan Millers Mutual Insurance Company.
The complaints arose out of an explosion at Farm Bureau Services’ Zilwaukee Feed Mill on September 15, 1969. Three of the plaintiffs were injured in the explosion; the other three plaintiffs represent the estates of persons killed in the explosion. All of the casualties were employees of Farm Bureau at the time of the accident.
Defendant Michigan Millers was the fire insurance carrier for the Zilwaukee mill.
Plaintiffs’ individual actions were consolidated for trial. Jury verdicts rendered in favor of each plaintiff were set aside by the trial court on the basis that the evidence was insufficient to raise a question of fact for jury determination. The propriety of the, trial court’s action is the only issue we shall address.
A judgment notwithstanding the verdict on defendant’s motion is appropriate only if the evidence is insufficient as a matter of law to support a judgment for the plaintiff. Jackson v Fox, 69 Mich App 283; 244 NW2d 448 (1976). In making that determination, the court must give the plaintiff the benefit of every reasonable inference that could be drawn from the evidence. Kroll v Katz, 374 Mich 364; 132 NW2d 27 (1965). If reasonable men could honestly disagree as to whether the plaintiff has satisfied his burden of proof on the necessary elements of his cause of action, a judgment notwithstanding the verdict is improper. Kroll v Katz, supra; Jackson v Fox, supra.
Plaintiffs’ cause of action was premised on 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 harm, or
"Ob) 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.” (Emphasis supplied.)
That section has been held to apply to insurance carriers so as to render them liable for consequences proximately caused by their negligent inspections; e.g., Olkowski v Aetna Casualty & Surety Co, 53 Mich App 497; 220 NW2d 97 (1974), aff’d 393 Mich 758; 223 NW2d 296 (1974), Megge v Lumbermens Mutual Casualty Co, 45 Mich App 119; 206 NW2d 245 (1973), Ray v Transamerica Ins Co, 46 Mich App 647; 208 NW2d 610 (1973). We shall review the evidence to determine whether it was sufficient to support the jury’s verdicts. In making that determination we accept as facts those conclusions reasonably inferable from the evidence.
All parties agreed that the most likely cause of the mill explosion was the ignition of dust particles by the exhaust pipe of a four-wheeled industrial truck referred to as a "Bobcat”. The gist of the plaintiffs’ case was that a reasonably careful inspection by the defendant’s field representative, would have detected that danger and prevented the explosion._
It was undisputed that the defendant’s field representative had conducted numerous inspections of the mill for the purpose of detecting fire hazards. He knew that a number of employees worked in the building and that they would be harmed by fire or explosion. He was aware of the explosive potential of the dust and was overtly concerned with detecting and eliminating possible sources of ignition.
The Bobcat constituted an ignition hazard and should not have been used indoors. Although it was used almost exclusively indoors, defendant’s field representative stated that he had never seen it inside in the course of any of his inspections. Consequently, he never adverted to it as a fire hazard in his reports to his superiors or in his discussions with Farm Bureau’s management.
Although Farm Bureau had its own safety program, it had no fulltime safety director. Consequently, insurance carriers were relied upon to some degree to point out safety problems. The mill’s representative to the safety committee for the Zilwaukee complex was under the impression that defendant’s field representative was inspecting for the employees’ safety and he relied on those inspections. Two Farm Bureau executives testified that they had not received any urgent warning of imminent danger of explosion or fire at the mill.
We find the foregoing evidence sufficient to justify the jury’s verdicts. Whether the defendant gratuitously undertook to inspect the mill for fire hazards is a question of fact, Andrews v Insurance Company of North America, 60 Mich App 190; 230 NW2d 371 (1975), remanded for reconsideration, 394 Mich 464; 231 NW2d 645 (1975), Megge, supra, and the evidence was ample on that point. Furthermore, defendant’s field representative admitted that he realized the danger that fire and explosion posed for the mill’s employees.
From the number and extent of the inspections, the frequency with which the Bobcat was used indoors, and its apparent danger as an ignition hazard, the jury could have reasonably concluded that the inspector’s failure to notice the Bobcat or to realize its dangerousness constituted want of reasonable care. See Moning v Alfono, 400 Mich 425; 254 NW2d 759 (1977). Similarly, the jury reasonably could have found that the failure to detect and warn of the danger posed by the Bobcat caused the plaintiffs’ injuries by "cloak[ing] the defect, [or] dull[ing] the call to vigilance”, Ray, supra, 658, because of the reliance of either Farm Bureau or the plaintiffs on the defendant’s inspections to disclose such a serious hazard.
Although we are bound by a clear line of precedent, we view the result in the instant case with some reservation because of its possible impact upon the inspection practices of fire insurers. The Legislature might be well-advised to consider action comparable to that taken with respect to worker’s compensation carriers. MCL 418.131; MSA 17.237 (131), MCL 418.827(8); MSA 17.237 (827)(8). Until it does so, however, fire insurance carriers remain subject to common law liability for damages resulting from negligent inspections under those circumstances enumerated in 2 Restatement Torts, 2d, supra.
Reversed and remanded for reinstatement of the jury verdicts. Costs to appellants.
R. B. Burns, P.J., concurred.
Fireman’s Fund Insurance Company, the worker’s compensation carrier for the mill, was originally named as a defendant but was granted a directed verdict which plaintiffs have not appealed. Mill and Elevator Mutual Insurance Company, Michigan Millers’ rein-surer, was a third-party defendant. Insofar as neither of the above parties are involved in this appeal, we shall hereinafter refer to Michigan Millers as the defendant.
Our disposition of this issue obviates the necessity of considering plaintiffs’ claim that certain evidence was erroneously excluded.
Defendant seeks to distinguish these cases as imposing liability only upon worker’s compensation carriers, and points to Smith v Allendale Mutual Ins Co, 79 Mich App 351; 261 NW2d 561 (1977), as support for the proposition that employees’ injuries are not included within the orbit of risk created by inspection for fire hazards. Neither contention is correct.
Nothing in 2 Restatement Torts, 2d, § 324A, or in the line of cases beginning with Ray v Transamerica Ins Co, 46 Mich App 647; 208 NW2d 610 (1973), suggests any principled basis for excluding from liability a fire insurance carrier whose negligent inspection results in a fire which injures foreseeable plaintiffs. In such a case liability does not attach because the fire insurer is held responsible for employee safety per se, but rather because plaintiffs’ injuries resulted from the ñre insurance carrier’s failure to use due care in inspecting for ñre hazards.
Smith, supra, illustrates this point. In that case plaintiff was injured as the result of an electrical malfunction in an overhead crane. Defendant fire insurer was held not liable because the injury was not caused by a fire hazard.
“Allendale Mutual did provide fire insurance to Great Lakes Steel, and its agent, Factory Mutual, did inspect the plant for fire hazards; however, the inspections were limited in both scope and purpose.
"Factory Mutual was concerned with the detection of fire hazards and employed individuals who were specially trained in this area. The employees of Factory Mutual had no training in the area of employee safety nor did they hold themselves out as making inspections for this purpose. Factory Mutual did not inspect the electrical equipment or the cranes because they contained virtually no combustible material. Furthermore, it did not make any difference to Factory Mutual if the circuits around the cranes were grounded or ungrounded because neither posed a ñre hazard. ” Id. at 356. (Emhasis added.)
The instant defendant thus is correct in asserting that the scope of its inspection was limited, but it focuses on the wrong parameter. Liability is not circumscribed by what was injured (i.e., property or persons) but by how it was injured (whether the damage was caused by a hazard within the scope and purpose of the inspection). If anything, the reasoning in Smith provides support for imposing liability in the instant case, since plaintiffs’ injuries derived from a hazard patently within the scope and purpose of defendant’s inspection.
Plaintiffs will prevail on appeal if any one of their theories of liability is supported by the evidence. Consequently, we shall not attempt to assess the evidentiary support of additional theories once we determine one to have sufficient proof to create a jury question on each of its elements.
The mill’s production operation consisted of converting raw ingredients such as corn, oats, wheat and soybeans into food concentrate for cattle, chickens and pigs. Most of the raw ingredients received at the mill were finely ground powdery material which was highly explosive at 10-15% concentration in the air.
More precisely, the theory generally accepted by the parties was that the explosion was caused when the Bobcat muffler ignited particles of ground corncob, some of which fell unnoticed and was buried in unignited material. That material was dumped into a hopper and carried upward into storage bins where it rose to the surface and ignited adjacent dust.
Defendant’s field representative conducted between 22 and 30 inspections of the mill between 1963 and 1969, including 6 inspections in the 9 months preceding the explosion. The average duration of the inspections was between one and two hours.
Defendant’s field representative estimated its explosive potential as seven times that of dynamite.
He testified that he had been concerned about possible ignition from a cigarette, a match or even a spark from a nail on a workman’s shoe. At his suggestion, "No Smoking” signs had been posted at various locations in the mill.
Plaintiffs’ expert witness testified that the use of the Bobcat inside the mill was entirely improper because of its propensity for initiating fires or explosions; only explosion-proof electrical trucks with sealed equipment should have been used.
Defendant’s field representative testified that in February of 1969 he forcefully informed the Farm Bureau management that the amount of dust in the mill at that time constituted an alarming risk of immediate explosion. At that point he renewed with increased urgency his suggestion that Farm Bureau install a dust control system. For his efforts he received a reprimand from his superiors for not "going through channels”. Farm Bureau received a written apology from the defendant. No dust control system was installed because of the economic ramifications of closing the plant for 30 days to permit installation.
Although the field representative’s recognition of the danger of the dust is analytically distinct from his negligence in not detecting the danger posed by the Bobcat, Farm Bureau’s dilatory conduct in tolerating the danger posed by the dust for purely economic motives was irresponsible to say the least. Its attitude was reminiscent of the "public be damned” philosophy that dominated a bygone era, and the current framework of the worker’s compensation law in this state insulates it from the economic ramifications of its recklessness. It may be that the Legislature should consider enacting penalty provisions such as exist in 14 other states which impose increased liability for such egregious conduct. See 2A Larson, Workmen’s Compensation Law, § 69.10.
We are not suggesting that the theory of liability described in the text is the only one supportable by the evidence. See fn 3, supra. Nor are we unaware of the amount and probative force of the defendant’s evidence. We have consciously restricted ourselves to the minimum factual exposition necessary to decide the issue before us — a more encompassing summary of the voluminous record before us is both impractical and legally unnecessary.
But see Ray v Transamerica Ins Co, 46 Mich App 647; 208 NW2d 610 (1973). | [
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D. F. Walsh, J.
Plaintiffs appeal the circuit court’s denial of an injunction to restrain defendant Township of Waterford from proceeding with plans to connect a new storm drainage system to an existing underground storm drain running across plaintiffs’ property. They raise two issues:
(1) Has defendant Oakland County Road Commission acquired a prescriptive easement in the existing drain?
(2) Is the proposed addition to the existing drain permissible?
Plaintiffs are the owners of a lot bordered on the west by Watkins Lake and on the east by Covert Road. In the early 1940’s, the Oakland County Road Commission installed an underground drain inside of and parallel to plainfiifs’ southern property line. The drain ran from Covert Road to the lakeshore. The drain was then extended in a straight line to two catch basins located on either side of Covert Road. The eastern catch basin connected to another located at the northeast corner' of the intersection of Covert Road and Watkins Lake Road. The area drained by this storm sewer drain extends from the front of plaintiffs’ lot north to the above intersection and, presumably, includes the immediate area around the Covert Road —Watkins Lake Road catch basin.
The drain on plaintiffs’ property was installed with the personal knowledge of plaintiffs’ grantor, and has since been maintained by the road commission.
The proposed addition to the existing drain originates on Richmond Street approximately 330 feet south of the catch basin directly in front of plaintiffs’ southern property line. The new drain is to provide emergency flood relief for residential lots southeast of plaintiffs’ property. The surface water from this area does not naturally flow across Covert Road and into Watkins Lake.
Plaintiffs brought the instant action to prevent connection of the Richmond Street system with the drain running across their property. After hearing testimony, the trial court ruled that the public had acquired a prescriptive easement in the existing drain and that the addition of the proposed drain would not significantly expand the existing easement or significantly damage plaintiffs’ property.
We affirm the trial court’s finding of a prescriptive easement in the existing drain. As a general rule, highway commissioners have the right to have surface water drain from the highway over lower lands and may construct drains for that purpose. Maynard v Hawley, 331 Mich 123; 49 NW2d 92 (1951), Tower v Somerset Twp, 143 Mich 195; 106 NW 874 (1906). Where the owner of the lower estate without objection permits a drain to exist and cast waters upon his land for the statutory period, the upper estate owner acquires an easement by prescription in the drain. Cranson v Snyder, 137 Mich 340; 100 NW 674 (1904), Leidlein v Meyer, 95 Mich 586; 55 NW 367 (1893).
The second issue raised by plaintiffs is properly resolved by reference to the Drain Code of 1956, MCL 280.1 et seq.; MSA 11.1001 et seq. The statute represents the Legislature’s attempt to codify all laws regarding drains and to provide for detailed, specific and exclusive procedures to be followed in proceedings to construct and maintain drains. Muskegon Twp v Muskegon County Drain Commissioner, 76 Mich App 714; 257 NW2d 224 (1977), lv den 402 Mich 834 (1977). Absent fraud, all matters pertaining to the locating, constructing, cleaning, extending, etc., of drains are to be determined according to the procedures set forth in the Drain Code. Battjes Builders v Kent County Drain Commissioner, 15 Mich App 618; 167 NW2d 123 (1969), lv den 382 Mich 764 (1969), Toledo, Saginaw & Muskegon R Co v Shafer, 190 Mich 89; 155 NW 712 (1916).
County drain commissioners have jurisdiction over all drains within their respective counties. MCL 280.23; MSA 11.1023. The drain commis sioner is statutorily authorized to clean, deepen, extend, etc., existing drains. MCL 280.191; MSA 11.1191. If additional rights of way and releases of damages are necessary, the commissioner is to follow the same procedures which apply when such rights of way and releases are needed in connection with a new drain. MCL 280.195; MSA 11.1195. The commissioner must "endeavor to secure from the owners of each parcel or tract of land to be traversed or damaged by the proposed drain or drains an easement or release of right of way and all damages on account thereof’. MCL 280.73; MSA 11.1073. (Emphasis supplied.) If the landowners do not execute the necessary releases, condemnation proceedings are to be instituted. MCL 280.75; MSA 11.1075.
Plaintiffs do not challenge the correctness of the trial court’s finding that the existing drain would not be overburdened by the Richmond Street drain. The judge found that there would be no damage to plaintiffs’ property as a result of the tie-in. Alternatively, the judge conceded that there would perhaps be damage due to erosion of land at the western outlet of the drain. He ordered that necessary steps be taken to prevent additional rutting or erosion of land between the drain outlet and the low water mark of Watkins Lake.
In Sturm v Kelly, 120 Mich 685; 79 NW 930 (1899), the Bay County drain commissioner petitioned for location and establishment of a drain. The commissioner located the new drain so as to utilize an old drain; the old drain was to be used as the outlet for the new drain. Among the issues raised on appeal was whether the commissioner could use the established drain as the outlet for the new drain without obtaining the consent of landowners on each side of the old drain. The Supreme Court held that, under the facts, it was not necessary to obtain a release for a right of way from landowners abutting the old drain. The Court based its holding on the showing that these landowners would not be damaged by the use of the new drain, but would be materially benefited, and that the dimensions of the old drain would not be changed after the tie-in. Id. at 689.
So too in the instant case plaintiffs have not shown that they would be damaged by the Richmond Street drain, assuming installation of the necessary outlet control. Only if a parcel of land is to be traversed or damaged by a drain is it necessary for drain authorities to secure easements or releases. MCL 280.73; MSA 11.1073. There was uncontradicted evidence that the existing drain will be adequate to handle the additional flowage from the Richmond Street drain. As a result of modifications made in the Richmond Street drain plans, that drain will be used rarely; it is to be only an emergency flood relief drain. We also note that the nature of the drain easement across plaintiffs’ property will not change; it is now strictly a storm sewer and will continue as such.
Accordingly, we affirm the trial court’s findings that the road commission acquired an easement by prescription in the drain on plaintiffs’ property, and that the township may proceed with its plans to connect a new storm drain to the existing drain.
No costs, a public question.
Townships are statutorily authorized to construct storm sewers and may, under certain circumstances, act on their own initiative in doing so. MCL 41.722; MSA 5.2770(52), MCL 41.723; MSA 5.2770(53). The statute granting townships authority to construct storm sewers mentions nothing about the easements which must be obtained to carry out this function. It is the drain code which sets forth detailed requirements for obtaining the necessary easements and releases. MCL 280.73 et seq.; MSA 11.1073 et seq. In the instant case the Township of Waterford is apparently relying on its statutory authority to invoke drain code procedures. MCL 280.71; MSA 11.1071. | [
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T. M. Kavanagh, C. J.
Plaintiff, Harold W. Wilson, administrator of the estate of Jean Anne Wilson, deceased, instituted this suit in the Kent county circuit court under the wrongful death act for damages resulting from the accidental electrocution of plaintiff’s minor daughter.
The fatal accident occurred on July 12, 1960, when the daughter, Jean Anne, age 10, crawled under the Wilson trailer to retrieve a ball. Jean Anne Wilson thereafter came in contact with the ground and some part of the trailer, resulting in the child being electrocuted'.
Plaintiff originally joined the manufacturer of the trailer, Gordon Hodson, doing business as Holly Coach Company, as a party defendant, but Hodson was dismissed as a defendant prior to trial. The suit was tried against the seller of the trailer, Modern Mobile Homes, Inc. (hereinafter referred to as Modern), and Howard L. Veurink, vice-president of Modern.
The amended declaration charged defendants with negligence in the first count and breach of implied warranty in the second count.
Testimony on trial of this case revealed Mr. Wilson purchased the trailer from Modern in May, 1959. An electric cord was furnished with the trailer by defendant Modern and less than a day later Mr. Wilson received a tingling sensation from the handle of the refrigerator. Wilson testified he telephoned Mr. Howard L. Veurink, vice-president of defendant Modern, and was told to turn the plug of the electric cord halfway over and that would eliminate the difficulty.
After having the trailer about two weeks, Wilson went to defendant Modern and talked to Howard Veurink about tbe shocks; Wilson was again told the same thing by Veurink as to turning the plug. Plaintiff testified he followed Veurink’s advice and the rest of the summer employed the remedy as to turning the plug each time a tingling sensation was received from the trailer.
In the spring of 1960, Wilson had some trouble with metal on the trailer expanding and he again talked to Howard Veurink at Modern; Veurink then told Wilson he would send a factory man out to check the metal and electrical problems.
In the summer of 1960 Wilson took the trailer and' his family to the McArthur trailer park at Big. Pine Island Lake, Michigan. Wilson could not use the cord on the trailer supplied by defendant Modern and he used a plug given to him by Mr. McArthur.
On the morning of the accident, another trailer owner, while helping Mrs. Wilson connect a water hose, received an electrical shock. The neighbor asked Mrs. Wilson to unplug the electricity while he worked and suggested that she have it checked later. The neighbor testified he saw Mrs. Wilson thereafter connect the electricity again.
Plaintiff contends the trailer was defective in that a metal screw, placed in the side of the trailer in the original construction pierced one of the neutral electrical wires on the side of the trailer. Plaintiff further contends that the cords running from the electrical outlet at McArthur’s trailer park to the side of the trailer were not polarized; that built into the side of the trailer was a three-way polarized plug which was designed for three-way polarization to the source of electricity; that the cord furnished by Modern, while having a three-way polarized receptacle at one end had only a two-way unpolarized plug on the other end.
Plaintiff made a two-wire cord, and on the day of the accident the aforementioned wire cord was con nected to the cord furnished by Modern to procure power.
Plaintiff further contends that on the day of the accident the two-way plug on the cord furnished by Modern was inserted in the receptacle on the cord made by Wilson and that the electric current ran through the neutral wire in the trailer which was pierced by the screw, causing a short which energized the skin of the trailer, and thus created the condition resulting in the electrocution of J can Anne Wilson. '
Defendant Modern was notified of the accident by the Michigan State Police on the afternoon it occurred.
On the trial Howard Yeurink testified that the cord “was furnished because in most State parks and all State parks I know of, the only way you can plug in a trailer is with a two-way cord.”
The jury returned a verdict against Modern in the sum of $25,000. Both parties agree that the aforesaid verdict had to be based upon either a breach of implied warranty as alleged in plaintiff’s amended declaration, or on negligence by Modern in providing plaintiff with a two-wire cord attached to a three-wire polarized plug at one end and an ordinary wall plug at the other end.
Defendant Modern raises 14 questions on appeal, a substantial number of which allege error in the trial court’s instructions. The principal questions for our determination are whether the trial court erred in ruling as a matter of law that sufficient notice had been given to defendant Modern and whether the trial court erred in not submitting the question of notice to the jury. These two questions are answered by the majority opinion, written by Justice Black, in Piercefield v. Remington Arms Company, 375 Mich 85, 100, where the Court said:
“For the same reasons as were made to appear in Greenman v. Yuba Power Products, Inc., 59 Cal 2d 57, 60-62 (27 Cal Rptr 697, 699-701, 377 P2d 897, 899-901), I would hold that the giving of notice under said section 49 is not a prerequisite to institution and maintenance of this plaintiff’s shit. Said section 49 deals with the rights of the parties to a contract of sale. It does not require that notice must be given of breach of a warranty that arises by legal implication distinct from a contract of sale. ‘Such warranties are not imposed by the sales act, but are the product of common-law decisions that'have recognized them in a variety of situations.’ (Greenman, at 61 [27 Cal Rptr 699, 377 P2d 899].)”
The Court then proceeded to hold (p 100):
“Since the duty is not imposed by the terms of the contractual relationship, the requirement of notice under the uniform sales act has, in the better view if not in the majority view, been dissipated.”
See, also, Browne v. Fenestra, Inc., 375 Mich 566.
Appellant assigns error to the trial court in failing to charge the jury, though requested, that from any award given for companionship, there must be deducted the cost of damages for expenses of birth, clothing, food, et cetera, during the period that the deceased lived, and that the jury must dedilct therefrom the pecuniary value of the companionship received during the same period and contends the trial court’s failure to give defendant’s request to charge relating to the foregoing resulted in an excessive verdict. Appellant further contends the trial court erred in failing to instruct the jury that the money value of companionship must be based upon something obtainable in the open market, and that the court erred in charging that the jury must consider the money value of the life of the deceased and put a fair evaluation on this life.
An analysis of the trial court’s instructions relative to the damages recoverable in the instant controversy does not indicate any reversible error. Appellant would have this Court overrule our decision in Wycko v. Gnodtke, 361 Mich 331. A majority of this Court affirmed Wycko v. Gnodtke, supra, in Currie v. Fiting, 375 Mich 440.
The trial court instructed the jury that funeral expenses, actual medical, surgical and hospital expenses, and the pecuniary, financial loss, if any, sustained by the parents, may be given consideration in evaluating plaintiff’s decedent’s damages. Defendant enumerates several reasons why this Court should not follow the holding of Wycko, supra, and should require deduction of the companionship, society and comfort received during the lifetime of the decedent, as well as the cost of procuring the companionship.
We again reaffirm today the holding of Wycko that a parent may properly recover the cost of the acquisition of such society and comfort, and that a jury is capable of ascertaining such damages, fairly and equitably to all parties.
A jury in a death case, as stated in Wycko, supra, is required to compute the pecuniary loss suffered because of the taking of the life. The pecuniary value of the life is composed of “a compound of many elements.” No instruction to subtract, add, or multiply is necessary. Juries are to arrive at a determination as to the money value of a life, taking into consideration expenses and companionship as well as other relevant considerations introduced as evidence.
We conclude from a reading of the charge that the trial court correctly instructed the jury as to the law of this jurisdiction concerning damages.
Appellant contends error by the trial court in failing to charge the jury, though requested, that if the jury found it was necessary to have a two-pronged plug in order to procure power for the use of the trailer at State parks, this could not be a proximate cause of the death of plaintiff’s decedent. Appellant further charges error to the trial court in failing to grant defendant’s motion for directed verdict on the issue of negligence in furnishing a two-wire cord. Appellant’s requests relating to the aforesaid errors would have the court instruct the jury as a matter of law that the furnishing of the two-pronged plug could not have been a proximate cause of plaintiff’s decedent’s death, and defendant could not be guilty of any negligence by reason of furnishing the two-pronged plug.
The evidence relating to the furnishing of an improper electrical cord to the trailer was in dispute. Appellee contends that defendant Modern was negligent in furnishing an improper electrical cord to the trailer in that although it was obvious the trailer was designed for a three-wire polarized cord, the plug at one end of the cord furnished by the defendant Modern was a two-way unpolarized plug.
Defendant Modern admittedly knew that at least some public parks, where presumably the trailer was going to be used, could not use the electrical cord furnished. The jury may well have inferred, if Modern had furnished a polarized cord, this accident would not have occurred. The manufacturer had designed the trailer to be connected with a three-wire system. Presumably, Modern knew this. If so, this is what defendant Modern should have furnished. The testimony is disputed as to whether if the cord furnished by appellant had contained a three-way polarized receptacle at one end which would fit into the side of the trailer and a two-way polarized for the other, which would have fit into the outlet at McArthur’s landing, this accident would not have occurred. Under the disputed facts in this record, the trial court correctly submitted these questions to the jury for determination.
Appellant contends error in the trial court’s failure to charge defendant’s requests 3 and 25, that the jury is not to be governed by what an attorney does or does not want, and that a verdict must not rest upon conjecture or guess. Beading the charge as a whole, it is evident that they were instructed to rely only on evidence adduced in court and not to speculate. The substance of defendant’s requests 3 and 25 was given by the court in his own words. We find no error as to these instructions.
Appellant contends error by the trial court in failing to restate the charge of intervening cause or proximate cause on warranty when the jury requested additional instructions. The additional instructions were not on the subject of warranty but rather “to the way that we would legally approach the question involved.” The court instructed the jurors to first determine the issue of breach of warranty, then negligence, then damages. It is to be noted that at the conclusion of the explanation by the trial judge to the jury the counsel for defendant raised no objection on this subject. We find no error in this regard.
Appellant further contends that 'the court erred in failing to give defendant’s charge number 4 — that while the burden of proving negligence on the part of plaintiff; is upon defendant, this does not mean that defendant must necessarily produce evidence to this effect. The charge as a whole completely advised the jury of the proper burden of proving negligence on the part of plaintiff.
Appellant also asserts error in failure of the trial court to charge that pleadings filed by any party constitute admission and remain a part of the evidence to be considered by the jury.
We find the entire charge of the trial court properly presented the theories of both parties, the law applicable to the case, and we find no reversible error in the instructions of the trial court.
In Bouma v. Dubois, 169 Mich 422, 434, quoted with approval in Gilson v. Bronkhorst, 353 Mich 148, 160, this Court held:
“ ‘Where the charge of the court, taken as a whole, correctly states the law as applicable to the particular case, and clearly defines the issue, the fact that sentences are objectionable, when considered independent of the context, does not constitute reversible error.’ ”
The verdict is affirmed. Plaintiff shall have costs.
Souris, Smith, and Adams, JJ., concurred with T. M. Kavanagh, C. J.
CL 1948, §§ 691.581, 691.582 (Stat Ann 1959 Cum Supp §§ 27.711, 27.712).
Reference is to CL 1948, § 440.49 (Stat Ann 1959 Rev § 19.289), now in uniform commercial code, PA 1962, No 174, § 2607 (CL 1948, § 440.2607 [Stat Ann 1964 Bev § 19.2607]).—Reporter. | [
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Black, J.
(for reversal). By the Constitution this Court is charged with the primary duty of establishment, modification, amendment, and enforcement of the rules of practice in all Michigan courts (Const 1963, art 6). Indeed, now that “The judicial power of the State is vested exclusively in one court of justice” (Const 1963, art 6, § 1), with respect to which the Supreme Court is general superintendent (Const 1963, art 6, § 4), this is the place where the procedural buck finally stops. And since rules of practice like rules of substantive law are of value only to the extent of their enforcement by those who are responsible for such enforcement, today’s simple question is whether this constitutionally appointed, superintendent is to remain insistent upon honest and nonevasive respect for one of its peremptory and nondiscretionary rules of practice; referring to the rule which, ever since 1929, was purposefully intended to ban the injection, in “such original action,” of the element of liability insurance. See CL 1929, § 12460; now section 3030 of the insurance code (Act No 218) of 1956 (CLS 1961, § 500.3030 [Stat Ann 1957 Rev § 24.13030]).
Said section 3030 was formally adopted as a rule of practice in Darr v. Buckley, 355 Mich 392. That case came to careful consideration and decision in 1959, prior to'Justice Souris’ appointment to the Court. As here in Fosness, Judge G-ilmore of the third circuit presided over that jury trial. The judge on that occasion duly enforced section 3030 in the context of our instant controversy, that is, the voir dire examination of assembled and called veniremen. We affirmed his action, unanimously. At the same time suggestions were written into this Court’s opinion whereby counsel seeking in good faith information he does not have, concerning the qualifications of summoned jurors, mig-ht obtain it without violating the rule and enduring the perils of such violation.
A year after Darr was handed down, that case was followed and applied (DeGroff v. Clark, 358 Mich 274, 276):
“It is evident that plaintiff’s counsel requested and induced the court to direct the insurance question to the jurors, not for the purpose of eliciting information from them touching on their qualifications to sit as jurors, but for the purpose of conveying information to them about the existence of insurance in the case and influencing them thereby. The size of the verdict against the background of the record in this case would indicate that it did influence them. There is no need to review the law and previous decisions of this Court on the subject. Enough was said by Mr. Justice Black in Darr v. Buckley, 355 Mich 392. See, also, Holman v. Cole, 242 Mich 402, and Palazzolo v. Sackett, 245 Mich 97. Decision therein is conclusive of a holding of reversible error here.”
Last year, in Felice v. Weinman, 372 Mich 278, said section 3030 was enforced again, that time against a defendant and his counsel. So, for the cases before us, the skilled trial counsel for these plaintiffs must be taken as having known aforethought that any verdict or verdicts he might obtain below would be imperiled automatically by his conduct during the voir dire; conduct which was both unnecessary and flagrantly purposeful.
The record speaks from here. At chambers, prior to the voir dire and stimulated by certain pretrial motions “to exclude” (see appendices 2 and 3, post), Judge Gilmore warned counsel as follows:
“I will say, generally, to both counsel, so that we don’t get into the possibility of a mistrial, if there are matters of law that could prejudice the jury, both of you are experienced enough to know that you should ask to have the jury excluded, and once it is excluded we can fully and completely settle the matter.”
Despite this, plaintiffs’ counsel at no time sought leave to develop, during the voir dire, the insurance-suggestive questions and answers which appear on juror Ada M. Bloom’s “personal history questionnaire.” See OCR 1963, 510.1. He just went ahead, bodaciously as presently quoted.
Mrs. Bloom was temporarily seated as juror No 12. When his turn came Mr. Robb questioned her as follows:
“By Mr. Robb:
“Q. Mrs. Bloom, you were a teacher at one time, and now you are a housewife, is that correct?
“A. Right.
“Q. What does your husband do?
“A. He has an insurance agency, general insurance.
“Q. Where is this insurance agency located?
“A. Northville, Michigan.
“Q. What is the name of the insurance agency?
“A. C. Harold Bloom Agency.
“Q. What companies does he represent?
“A. I don’t know.
“Q. Does he write automobile insurance?
“A. Yes; and fire.
“Q. For a number of different companies?
“A. Yes. Many.
“Q. Many different auto companies?
“A. No. Mainly, Auto Owners. But lie does have others.
“Q. Would the fact that your husband is in the insurance business make you favor one side or another in this case?
“A. No, it would not.
“Q. Have you had anything to do with the operation of the business?
“A. No.
“Q. Of taking reports?
“A. Nothing.
“Q. Your agency is out of your home then?
“A. Right.
“Q. The only thing you would be doing would be hearing your husband talk about his work?
“A. Occasionally.
“Q. Does he handle, in this agency, everything? If a policyholder has an accident, does he take the report?
“A. Yes.
“Q. And take care of it?
“A. He does no adjusting.
“Q. Not adjusting. But he takes care of the policyholders in all areas ?
“A. Right.
“Mr. Robb: I have nothing further at this time.”
After the jury was sworn, but prior to commencement of the trial proper, defense counsel moved for a mistrial. The connected record again:
“The Court: You have a motion, I understand, Mr. Sullivan, that you want to make before the jury is brought in?
“Mr. Sullivan: Yes. The defendants in this case move for a mistrial on yesterday’s voir dire examination of Jnror Ada Bloom, No. 70, from box 3.
“It developed that she was the wife of an insurance agent, and the interrogation by counsel for the plaintiffs went beyond what would be proper and permissive in the voir dire. The questions asked were designed not to obtain information, but to convey information that there were insurance companies involved in this matter, and the innuendo and the connotation was clearly that of an insurance company on the part of the defendants, contrary to the statute, because these questions were asked:
“What insurance companies did her husband represent? Did he sell automobile insurance? Was he involved in the sale of automobile insurance? And he asked a series of about 8 or 9 questions which I’m handicapped now to repeat verbatim because I do not have the record. But all of them were clearly designed to connote the idea that there was insurance involved in this automobile accident ease.
“I feel certainly it went beyond what would be proper, and was designed to convey information and not obtain it from the prospective juror. We move for a mistrial.
“The Court: I remember the interrogation of the juror very well. I do not think that the question of insurance has been so injected in here that it would require a mistrial. I will deny the motion.
“Now, gentlemen, as I advised you earlier, Juror No. 12’s father died last night, and we just have 11 jurors. We are in a situation where we have not had an opening statement yet, and I am willing to do any one of three things:
“First, proceed with 11 jurors; second, bring up a panel and impanel one juror to give us 12; or third, discharge this jury completely and impanel a whole new jury.
“It is my understanding, after the conversation that we have had, that it is agreed the way we will handle this is to impanel a 12th juror. Mr. Robb agrees to this, understanding that he has no peremptory challenges left; and Mr. Sullivan agrees, knowing he has only one peremptory challenge left.
“Is that agreed?
“Mr. Robb: Yes.
“Mr. Sullivan: Yes.”
As said above, the record speaks. It speaks of patently reversible error for calculated violation by counsel of both the letter and purpose of a simply worded and well-known rule of trial conduct, and for complementing failure of the trial judge to enforce that rule as done by him in the Darr Case.
To the above a fact of circumstantial significance should be added. The jury reported a total verdict of $20,000 for the two plaintiffs. That amount is the publicly well-known minimal requirement, respecting two or more causes arising out of the same accident, of the financial responsibility act (CLS 1961, § 257.504 [Stat Ann 1960 Rev § 9.2204]). The jury having been pretty well informed that an invisible defendant stood back of the defendants in a financial way, and yet being in the dark as to the amount of coverage, it is an eminently fair inference that the question of amount of the total verdict to be rendered was the primary subject of concern in the juryroom; also that such total was agreed upon in that room with view toward the statutory minimal and the consequent protection of the defendants from monetary loss. To which it is fair to add that said section 3030 was designed to avoid just such nonmeritorious verdicts.
This brings today’s inquiry to Justice Souris’ assigned reasons for return to pre-Darr days of judicial irresolution; the days when our current issue was known as a “vexatious subject.” (It never needed to be, as the years since handing down of Darr have proved in our trial courts.)
Having included in his opinion the same portion of the voir dire which appears above, Justice Souris writes that “None of the questions quoted referred to defendants’ insurer nor to the fact that defendants were insured.”
Now if I understand this rightly, the counsel must refer directly to “defendants’ insurer,” or directly to the fact that “defendants were [are] insured,” in order- to violate said section 3030. It is proposed that he be safe henceforth, so far at least as said section 3030 is concerned, as long as he refrains with care from reference to the defendant’s insurer, or to the fact that the defendant is insured. Above all, counsel are now to be told that voir dire cross-examination may be made, without offense to said section 3030, from the questionnaire of anyone called up whose Pule 510 responses disclose food for open court suggestion of the element of liability insurance ; which is just what counsel for these plaintiffs did.
Indubitably, this is not the stuff that dreams are made of. This is the way a statute (even one the Court has formally adopted as a part of its adjective system) is to be gutted by the devious scheming of counsel and the philosophic indulgence of judges. It does not matter that the legislative purpose as written has remained steadfast for a series of consecutive decades (36 years in this instance). It does not matter that Darr has long since provided and suggested easy means to obtain, before the trial, all desired information about some or any venireman’s “contacts with the insurance industry,” or about anything pertaining to the element of liability insurance, which information might by some stretch bear upon juror qualification. It does not matter that new Rule 510 was designed, in important part, to supply such information, well before the trial (see questions numbered 32 through 41 of Rule 510’s form). It does not matter that, scarcely eight months ago, all presently seated members of the Court joined in a per curiam opinion which told the profession (Benmark v. Steffen, 374 Mich 155, 163, 164):
“On the other hand, when skilled trial counsel undertakes — no matter by what cunning subtlety- — - to defeat the purpose of our court-adopted rule of trial procedure (CLS 1961, § 500.3030 [Stat Ann 1957 Rev § 24.13030]), such act on his part must result in a mistrial provided opposing counsel move in due time therefor. The rule, prohibiting ‘any reference whatever * * * to such insurer,’ and prohibiting like reference ‘to the question of carrying of such insurance,’ means just what it says. All experienced trial counsel, including of a surety trial counsel and both counsel now at bar, know full well how to insure compliance therewith. Indeed, this Court made it doubly plain, first in the Darr Case and later the Felice Case, that it is firmly determined to enforce section 500.3030 so long as that section remains, as it now is, an effective rule of trial practice.”
Looking at these variant and concededly clever schemes to get around section 3030 as such arrive here on appeal, all that seems to matter is that Durrcontrolled jury trials of the issues that are presented in “the original action,” the defendant or defendants being individuals, are not so likely to turn out verdicts for plaintiffs, or higher and ever higher damage verdicts. To be sure, that isn’t right. So it is effectively urged upon some of us, albeit by neat in direction, that the prohibitory policy which inheres in section 3030 should be amended so that counsel may, during the voir dire, pretend that he is asking in good faith for information, information the clerk’s record shows he already has in documentary form, and also that he may ask on the voir dire for other insurance-suggestive information which, if really needed, was conveniently obtainable on motion made before trial.
A challenging question is due. If Darr and Rule 510.1 do not provide all within-reason means to obtain — before trial — all knowledge about insurance “connections” counsel allege they need; if section 3030 in any way restricts secnrance of such knowledge, why shouldn’t the Court expand Rule 510 so as to fill the alleged void? Another section can be added providing expressly that counsel may, on motion showing fair cause, have a special and supplemental jurors’ questionnaire prepared for distribution to and answer by those called for service during the term. As we shall presently see, such is the Illinois practice. If this Court must bend the knee to counsel who persist in ignoring Darr, Felice, Benmark and said section 3030, then such an amendment of the Rule would seem to be the only way left to meet all demands of such counsel and still maintain the integrity of section 3030.
Turning to the subject of good faith, Justice Souris proceeds:
“Furthermore, plaintiffs’ counsel was entitled to know the information he elicited by his examination of Mrs. Bloom in order to determine whether he could challenge her for cause and, if not, whether he should challenge her peremptorily. Had he failed to inquire as he did, he would have had no basis for intelligent choice of the alternative actions available to him in completing the selection of a jury.”
So Mr. Robb was “entitled to know the information he elicited by his examination of Mrs. Bloom.” I think my Brother has overlooked a fact. Mr. Robb already had “the information he elicited by his examination of Mrs. Bloom” and had it “on the record.” See Rules 510.1 and 510.3. Comparison of Mrs. Bloom’s juror questionnaire (Appendix 1, infra) with Mr. Robb’s quoted open court interrogation of the lady discloses that Mr. Robb actually used the questionnaire as a guide to “elicit,” by leading questions, the information Justice Souris says was sought in good faith. And this is not all. Mr. Robb “elicited” the name of an insurer (Auto Owners) which, for aught the assembled members of the panel knew, was the “defendants’ insurer.” The identity of “defendants’ insurer” was not made known of record until after entry of judgment and the filing of defendants’ appeal (see CLS 1961, § 500.3036 [Stat Ann 1957 Rev § 24.13036]).
Plow can this intellectually honest Court avoid deep concern as it views record impact, upon the jury as sworn, of Mr. Robb’s premeditated injection of Auto Owners into the case? We may hardly assume that the assembled jurors did not conclude from what went on that Auto Owners was the “defendants’ insurer” and that the prompt dismissal of Mrs. Bloom was due to her husband’s connection with Auto Owners. The presumption is the other way, that what Mr. Robb did “was prejudicially improper” (Felice, supra at 280), and he has offered nothing to overcome that presumption.
Point is made that defense counsel, not plaintiffs’ counsel, excused Mrs. Bloom after the insidious seed of insurance had been sowed in the courtroom. It would be more than strange had defense counsel not excused the lady, the circumstances considered, and it requires no apperception to grasp the reason for Mr. Robb’s bland willingness to accept Mrs. Bloom as a juror after Ms deposit in the courtroom had been made. Though the trial judge repeatedly called upon counsel to challenge for cause, Mr. Robb claimed no such right of challenge and proceeded to use up all of his remaining peremptory challenges; not to eliminate Mrs. Bloom tut to eliminate others. Then, finally, this occurred:
“The Court: * * * Any challenges for cause by anyone %
“Mr. Bott: No, Your Honor.
“The Court: Peremptory, Mr. Sullivan.
“Mr. Sullivan: The defendants are satisfied, Your Honor.
“The Court: All right. Swear the jury.
(Whereupon the jury was sworn.)”
The real desideratum here is that any experienced defense counsel, confronted thus with an opponent’s cute fait accompli, must act at once to eliminate from the juryroom one shown to be specially knowledgeable of the liability insurance business and particularly of the amounts of coverage individual motorists usually carry. To suggest that defense counsel did not immediately realize that Mrs. Bloom would ascertain, ere the lapse of a few hours, that no insurer represented by her husband was involved, also that he did not realize that the other jurors would be eager to question Mrs. Bloom in the jury-room in regard to the planted subject of liability insurance (and about the amount of insured protection the defendants probably carried), is to imply a curious and record-unwarranted naivete on the part of such counsel.
The following is all that plaintiffs’ counsel seems able to muster in support of his conduct (p 22, plaintiffs’ brief):
“The rule against the injection of insurance into a civil case is designed to protect insurance companies against jury verdicts influenced by the question of insurance. While insurance is not a valid consideration in jury deliberations, it cannot be argued that a plaintiff has no right to protect himself from prejudice, where — as in the instant case — • one of the jurors has significant contacts with the insurance industry. The rule against the injection of insurance was designed as a shield for insurance companies, not as a sword.”
This has been submitted to us by a counsel who knew, prior to open court questioning of Mrs. Bloom, all he needed to know about her “significant contacts with the insurance industry”; a counsel who, when Mrs. Bloom was called up, failed (without then or subsequent deign of excuse) to comply with Judge Gilmore’s previous order to say “I have a matter of law to take up with the court” (see appendix 3) ; a counsel who failed (if really concerned) to propose when she was called up that Mrs. Bloom he excused (either for cause or by the court on agreement of counsel), thus insuring for his clients that protection “from prejudice” it is alleged he was seeking, and thus insuring due compliance with Judge Gilmore’s previous admonitory order. And yet it is suggested that a want of good faith on the part of such counsel has not been made to appear.
Justice Souris refers to Kiernan v. Van Schaik (CA 3), 347 F2d 775, and quotes therefrom. Now when a member of a State Court of last resort, cast ing about for support of a newborn view of that which has been firmly established as a distinct part of his State’s procedural system, finds himself compelled to turn to one only of the not exactly harmonious Federal circuit courts, it is necessary only to posit the fact of irrelevant citation. We have our rule of procedure; a rule which reflects the policy of our State; a policy our legislature declared and has maintained since 1929; a policy we have adopted formally as a rule of court. That policy supposedly prevails in Michigan no matter the policy elsewhere. And I am sure all of us know that the Federal system provides no counterpart of said section 3030, and no comprehensive before-trial information service such as Rule 510 extends to our trial lawyers and trial judges.
Even if decisions of the circuit courts of the United States did control procedure in the State courts (which they do not), why should we pick the third circuit over the nearby seventh circuit? See Lentner v. Lieberstein (CA 7), 279 F2d 385, which Kiernan expressly refused to follow (pp 780, 781). If such a choice has to be made by this Court, it appears rather clearly that the practice approved in Lentner is kin rather than foreign to ours. Lentner, following the Illinois practice, rules that counsel seeking to inquire on voir dire about the element of insurance must first satisfy the court, “out of the presence of the jury,” that the need for such inquiry is genuine rather than phony. Kiernan takes the opposite tack and refuses to apply the local (Delaware) practice.
SUMMARY
There is nothing mysterious or difficult about this issue of good or bad faith in conjunction with section 3030’s mandate. Some counsel do not want, and have no use for, information about the element of liability insurance unless they can have it “elicited” out in the courtroom for impact there on all veniremen present, the uncalled as well as the called. They want the minds of all those present focused, in part at least, upon the unseen presence of a liability insurer and the easy-money implications thereof rather than concentrated wholly upon the triable issues.
We should hold that the direct pursuit of Mrs. Bloom’s questionnaire in the courtroom, by counsel for these plaintiffs, was simply a planned effort to circumvent a procedural statute which, having adopted it, the Court is committed to enforce (see Benmark, supra at 164). We should hold also, now that insurance-informative questionnaires are provided by rule, over and above other means to obtain necessary information such as Darr outlined for Michigan counsel, that there is no remaining need for voir dire interrogation such as was mulled over pro and con in the earlier cases cited by Justice Souris, commencing with Church v. Stoldt, 215 Mich 469, and concluding with Fedorinchik v. Stewart, 289 Mich 436. Those very cases were considered when we announced Darr’s rule. See pages 395-397 of Darr’s report.
No other posed question is apt to arise on retrial. These judgments should be reversed and a new trial should be ordered. Defendants should have costs.
SUPPLEMENT (November 26, 1965) Since the above was written Justice Adams has submitted his two-pronged opinion. Division I thereof proposes affirmance on ground that defense counsel waived the motion for mistrial Justice Souris and I have considered. Division II thereof, wholly gratuitous if there was a waiver as claimed, is unmistakably designed to destroy section 3030. Again, some comment is in order.
I.
Quoting -what appears at the margin, Justice Adams says that “This case is similar to Snyder v. Mathison, 196 Mich 378.” Is it? No motion for mistrial was made, much less reviewed by the Court, either in Snyder or in the case cited therein (William R. Roach & Co. v. Blair, 190 Mich 11). Here two motions for mistrial, each assigning purposeful injection of the question of insurance, were made. Each was denied. Both were made after the jury had been sworn, not before. In diametric contrast, the specific question considered in both Snyder and Roach was whether, by announcing final satisfaction with the jury as called up and examined, defense counsel respectively waived an objection (that only) he had made to an insurance-suggestive question the plaintiff’s counsel had addressed to juror Eleveld in Snyder (p 382) and to juror Till in Roach (p 13).
It is difficult to understand the reason for citation like this, unless of course waggish amusement is intended. Surely the citer has purposely ignored, or has inadvertently overlooked, the fact that both Snyder and Roach were tried more than a half century ago, long before what is now section 3030 appeared in our books (CL 1929, § 12460); long before the need for regulating voir dire insurance-interrogation in motor accident eases came to legislative attention and action, and more than 40 years before this Court adopted section 3030’s prohibition as a rule of trial practice. Even Mr. Robb, the plaintiffs’ counsel here, hasn’t been sufficiently temerous to cite Snyder or Roach, or to urge that the Court go as far as Justice Adams proposes.
There was no waiver by defense counsel of his trial-denied motion for mistrial. He in fact made two motions for mistrial, one detailed in the foregoing opinion and the second at conclusion of the jury arguments. Both motions pointed up what is already manifest; a planned effort by plaintiffs’ counsel to bring to jury-thought and jury-consideration an inadmissible fact; that of insured liability protection. Both were denied, on the merits. On motion for new trial, defense counsel assigned such denial as error, with the same result. At no time did plaintiffs’ counsel, or Judge Gilmore, hint that anything done or agreed when Juror No. 12’s father died constituted a waiver as now alleged.
This allegation of waiver is, quite plainly, an appellate afterthought. The most plaintiffs’ counsel attempt to make of it comes from this portion of his brief:
'“On the second day of trial (the jury had been sworn in at the end of the first day) it developed that Juror No. 12’s father had died on the preceding night and Juror No. 12 would not be able to attend the trial. Judge Gilmore stated that there were a number of alternatives available to counsel. Among them were: ‘second, bring up a panel and impanel one juror to give us 12; or third, discharge this jury completely and impanel a whole new jury.’ If defense counsel believed that the jury had been ‘contaminated’ by the ‘injection’ of insurance in the voir dire of Mrs. Bloom, he should have requested, as was his right, that the entire jury be discharged and a whole new jury be impaneled. Instead, he agreed to proceed with the 11 ‘contaminated’ jurors and to merely impanel one new juror ;
“‘The Court: * * * It is my understanding after the conversation that we have had, that it is agreed the way we will handle this is to impanel a 12th juror. * * * Mr. Sullivan agrees. * * *
“ ‘Is that agreed ? * * *
“Mr. Sullivan: Yes.’ ”
Waiver, as we are told, is the intentional relinquishment of a known right. There were but two ways by which defendants’ first motion for mistrial, a rightful one as Justice Adams seems to concede, could have been waived by them. One was a flat declaration of such waiver, on the record. The other would have been a declaration by Judge G-ilmore, when he offered to declare a mistrial the next day, that upon retrial he would reneto and enforce his precedent at-chambers order. There was no such declaration, and nothing said that would indicate the judge would not let Mr. Robb use other like questionnaires in the same manner.
At this point, for indicative stress, I think it in order that such at-chambers order be repeated:
“ I will say, generally, to both counsel, so that we don’t get into the possibility of a mistrial, if there are matters of law that could prejudice the jury, both of you are experienced enough to know that you should ask to have the jury excluded, and once it is excluded we can fully and completely settle the matter.”
The procedural tragedy here is that Judge Gilmore sought by the above at-ehambers order to carry out the letter of what was affirmed in the Darr Case, only to fail in the enforcement thereof when Mr. Robb broke loose without judicial authority. In actual fact the judge started out to apply the Illinois practice (see Lentner, supra) as well as our own. Had he enforced the quoted order to such end, Mrs. Bloom’s name would no doubt have been removed from the black box by stipulation or, if no stipulation, by order of the court.
II.
Criticizing Darr, Felice, and Benmark (the last bears his indorsement), Justice Adams alleges that “the broad reading it [the Court] has given section 3030 is foredoomed to failure.” Well, one might gently suggest that it isn’t possible to read section 3030 broadly or narrowly. We said, in Felice, that its ban is “written in simple English.” It does or it doesn’t ban “any reference whatever” to the question of carrying of insurance. But then, if our “broad reading” is thus foredoomed, so be it.
The forthcoming melee of attempted trials and mistrials of irrelevant and highly prejudicial issues, in cases coming within the legislatively intended purview of section 3030, is bound to disgrace our judicial system. The reason is there for all to see. If the prohibition effected by section 3030 is thus “foredoomed”, the door will be just as wide open for the defendant’s counsel as for the plaintiff’s counsel. We said, in Felice, that section 3030’s prohibition “applies to plaintiffs and defendants — and to their respective counsel — with equal force.” Only those whose experience with the preparation and trial of damage actions has not been extensive will fail to perceive that, the ban lifted, the defense can and will gain as much mileage ont of insurance injection as will their damage-seeking opponents. It will not he difficult, utilizing in particular juror answers to questions 32 through 41 as same appear in G-Cit 1963, 510.1, for counsel to persuade the members of a typical jury that they with others are being touched for payment of those boxcar figures which, on the blackboard, have been added up. Yon see, section 3030 doesn’t say “no mention” by the plaintiff’s counsel. It just says “no mention.”
Today’s motion to water the stock of section 3030 by criticizing, as alleged “broad reading,” our applications of that section as shown in Darr, Felice, and Benmark, is not exactly opaque. Come now, Brethren, why not he frank about this? Why not propose a new rule of court, comporting in detail with the insurance-suggestive cues and clews now put forth, and include with it an open repealer of section 3030? Are there not hut two ways for a Court like ours to accomplish a procedural change like this ? One to be sure is the way of the forthright. The other needs no description.
There is one area wherein Michigan’s jurisprudential “quest for certainty” can and should provide utter dependability. That is the area of procedure; the adjective law. There is no reason why this Court cannot enforce section 3030 according to its specific design, allowing at all times, as plainly pointed out in Darr, every pretrial means of obtaining insurance-suggestive information which counsel aver they need to try properly in behalf of their clients the pleaded and pretrial-summarized issues. Illinois, not so well equipped by her constitution as sections 4 and 5 of Michigan’s article 6 provide, has done so with fairness all around. See the discussion in Lentner v. Lieberstein, ante at 505.
Appendix 1.
Questions and answers, complete, as they appear in the personal history questionnaire of Juror Ada M. Bloom
1. Print name plainly: Bloom Ada Mary
Last Name First Name Middle Name
2. Address 710 W. Main Northville PI 9-3672
Street Address City or Village Zone Telephone Number
3. "When and where were you born? Farmington, Michigan 9-8-06
Give exact date
4. Sex: F
5. Marital status (check one): Single ( ); Married (x); Divorced ( ); Separated ( ); Widow or Widower ( ).
6. Name of Spouse: C. H. Bloom
7. Occupation of spouse: Insurance
8. Spouse employed by: Self
9. Ages and number of children at home: None
10. Have you any defects in your hearing? No
11. Have you any defects in your vision? No— corrected
12. Is your general health good? Yes
13. Have you any physical infirmity? (Explain) No
14. State briefly the extent of your business or professional experience or other employment: Teacher — 1 year
15. What is your present occupation? Housewife
If not employed give line of work
16. Employed by:
17. If not employed, state your present means of livelihood (for example, housewife; pension; et cetera) Housewife
18. What duties do you perform in your present job?
19. State what other occupations you have been in during the past 10 years and what duties you performed :
20. Are you, or have you ever been, an officeholder for any State, county, or municipality? (Specify) No
21. Are you, or have you ever been, a law enforcement officer? (Specify) No
22. Are you an employer, landlord, or tenant? (Specify) No
23. Are you a freeholder (owner of real estate)? Yes
24. How long have you lived in Wayne County? 45 years
25. Have you ever studied law? (Explain) No
26. Have you ever studied medicine? (Explain) No
27. How far did you go in school? (Indicate highest grade completed or degrees received): Teacher Certificate — 2 years
28. Have you ever served as a juror? No
29. If so, when and in what courts ?
30. Have you ever been discharged (not excused) from jury service ? No
31. If so, for what cause ?
32. Do you drive a car? Yes
33. Do you (or your spouse) own a car? Yes
34. If so, is it insured? Yes
35. With what company? Auto Owner’s
.36. Have you ever been in an accident ? (Explain) No
37. Were you injured? No
38. Was anyone else injured? (Explain):
39. Has any member of your family, or a close friend ever been in an accident? If so, explain: Slight family accidents with car
40. Are you a director of, or do you own stock, in any insurance companies? No
41. What companies ?
42. Were you ever an inmate in a State or county institution? (Explain): No
43. Have you ever been convicted of a crime or misdemeanor (other than for a nonmoving traffic violation) ? No
44. If so, explain:
45. Have you ever been arrested and charged with any crime? (Explain): No
46. If so, is that charge pending? No
47. Have you ever been a party to any suit, either civil or criminal? No
48. If so, state the nature and number of each suit and in what court:
49. Are you a citizen of the United States? Yes Are you a qualified voter of this State ? Yes
50. Are you now, or have you ever been, at any time, a member of any subversive organization whose ritual favors violence and law violation? No
(The questionnaire was signed by Mrs. Bloom under date of March 8, 1963. The form complies in detail with G-CR 1963, 510.1.)
Appendix 2.
Plaintiffs’ “Motion to peremptorily exclude reference to certain matters during trial.”
“Now comes plaintiffs by their attorney Dean Robb and moves that opposing counsel be directed by the court to not make reference in the jury’s presence to the following matters :
“1. That part of plaintiffs’ medical and hospital expenses were paid for or reimbursed by other insurance.
“2. That in the traffic court proceedings arising out of this collision, charges against George Panagos were dismissed without prejudice.
“3. That in common pleas court, action 3-032-869, suit by City of Detroit vs. Panagos and Fosness, a settlement was made by Plarold and Constance Fosness in the amount of $90.00.
“4. That plaintiffs carried Allstate insurance coverage on their automobile, and that certain moneys were paid by Allstate to them for losses sustained in this collision.
“Further, plaintiffs ask that the court instruct defense counsel that any reference to any of these matters will result in a mistrial, with taxation of full costs including attorney fees.
Goodman, Crockett, Eden, Robb & Philo
By /s/ Dean A. Robb
Dean A. Robb
Attorneys for Plaintiffs
3220 Cadillac Tower
Detroit 26, Michigan
965-0050
Dated: December 9, 1963
Detroit, Michigan”
Appendix 3.
Discussion prior to voir dire of motions to exclude
“The Court: Let the record show that we haven’t pulled the jury yet in this case, but prior to the time of bringing the jury in and conducting the voir dire, Mr. Robb has a motion to make.
“Mr. Robb: The first motion is in written form, a motion to peremptorily exclude reference to certain matters during trial, and there is no need to report it on the record. I will just give it to the clerk, and indicate it has been filed at this time.
“The Court: All right. This will be filed.
“As I indicated, gentlemen, prior to the time of the reporter coming in on Mr. Robb’s motion to peremptorily exclude certain matters during trial, I am not going to rule on any one of them. I will advise Mr. Sullivan that if any of these matters are to be brought up during the trial, he will say, T have a matter of law to take up with the court,’ and the jury will be excluded and the court will consider each one.
“I give the same instruction to Mr. Robb with reference to a subpoena he mentioned regarding a certain accident report. If he wants to get into that during the trial, again, he will ask that the court excuse the jury.
“I will say, generally, to both counsel, so that we don’t get into the possibility of a mistrial, if there are matters of law that could prejudice the jury, both of you are experienced enough to know that you should ask to have the jury excluded, and once it is excluded we can fully and completely settle the matter.”
Dethmers and Kelly, JJ., concurred with Black, J.
O’Hara, J.
(for reversal). I vote to reverse and remand for a new trial on the following narrow ground and on this ground only. Court Rule 510 by its operation made available to counsel for plaintiff all of the information he elicited from the prospective juror upon voir dire. I cannot comprehend why the examination appearing in both my confreres’ opinions was undertaken without prior application to Judge Gilmore for ruling, and instruction as to further examination. This should have been accomplished on the record in the absence of the jury.
By my holding here I make no finding of mala fides. I do find that forewarned counsel for plaintiff exceeded the limitation of the rule-adopted statute.
I concur with Mr. Justice Black’s result, and his award of costs.
Souris, J.
(for affirmance). In its earliest form the common-law jury consisted of neighbors of the litigants who were called in to decide the legal controversy upon the basis of their personal knowledge of disputed facts. See Holmes, The Common Law (1881), pp 262, 263. This procedure gradually gave way to one in which the jurors based their fact findings not on personal knowledge of the dispute, but rather solely upon the evidence presented to them during the trial. See Turner v. Louisiana (1964), 379 US 466, 471 (85 S Ct 546, 13 L ed 2d 424) ; 1 Holdsworth, A History of English Law, pp 332-337 (7th ed 1956).
In Michigan it always has been the law that a juror, as far as is practicable, should be free from any preconceived opinions which might cause him to return a verdict not based solely upon the evidence produced at trial. See Crippen v. People (1860), 8 Mich 117. This goal of juror impartiality traditionally has been sought to be assured by means of the voir dire examination. During such examination questions may be put to prospective jurors to determine whether they have any predispositions which would prevent them from rendering an impartial, evidence-grounded verdict.
The voir dire examination must be conducted with some care if its goal of assuring impartiality among the jurors is to be realized. Upon the one hand, the scope of questions asked should not be so restricted as to impede the elicitation of information which counsel needs in deciding whether a prospective juror is in fact impartial and otherwise is satisfactory to counsel. See In re Petition of City of Detroit to Condemn Lands for Sewage Disposal Plant (1937), 280 Mich 708, 716. Upon the other hand it must be admitted that by the very questions posed upon voir dire information can be conveyed to the panel which could predispose its members to a certain decision. See Spelker v. Knobloch (1958), 354 Mich 403, 407.
The necessity for maintaining close judicial control over voir dire examinations is demonstrated regularly in this Court in automobile negligence cases. A prospective juror who was financially interested in or somehow otherwise connected with an insurance company writing casualty risk policies for automobile owners might be predisposed against plaintiffs in such cases and, thus, a plaintiff in such a case would seem to be entitled legitimately to make inquiry to determine whether any prospective juror has such a relationship to the business of insurance that a predisposition against plaintiff’s claim exists. However, the very fact that plaintiff makes such inquiry might put the veniremen on notice that defendant was insured, thus, arguably, predisposing them toward a finding in favor of plaintiff regardless of the evidence, or toward awarding, him greater damages than they otherwise would absent the belief that defendant was insured. This dilemma is a concomitant of the effort to secure impartial juries for the trial of tort cases, and these cases of Fosness prompt our discussion of it once again.
Until our decision in Darr v. Buckley (1959), 355 Mich 392, this Court allowed examination of prospective jurors on voir dire regarding their membership in a mutual insurance company carrying the defend ant’s risk and related matters which would constitute ground for challenging for cause and regarding other facts relating to insurance which would permit intelligent exercise of peremptory challenges. The only limitation generally applied in such cases was the good faith of the inquiry. See Church v. Stoldt (1921), 215 Mich 469; Holman v. Cole (1928), 242 Mich 402; Palazzolo v. Sackett (1928), 245 Mich 97; Harker v. Bushouse (1931), 254 Mich 187; Holloway v. Nassar (1936), 276 Mich 212; Campbell v. Osterland (1938), 283 Mich 175; Fedorinchik v. Stewart (1939), 289 Mich 436; and Spelker v. Knobloch, supra. The frequency with which this issue was presented to the Court, the above cited cases being only a selected sampling of those in which the issue was presented, and the variety of the insurance-related questions sought to be asked on voir dire, amply support the Court’s characterization of the issue as a “vexatious subject” (Holloway v. Nassar, supra, p 215) and its recognition that on occasion counsel’s purpose “was not to obtain information from the prospective jurors but, rather, to convey it to them” (Spelker v. Knobloch, supra, p 407).
Until Darr v. Buckley, and at least after Harker v. Bushouse, supra, CLS 1961, § 500.3030 (Stat Ann 1957 Rev § 24.13030) and its predecessor were thought not applicable because the issue presented a procedural problem exclusively within the judicial ken. However, in Darr v. Buckley; DeGroff v. Clark (1960), 358 Mich 274; and Felice v. Weinman (1964), 372 Mich 278, the statute was recognized by this Court as a rule of practice adopted by the Court by virtue of Court Rule No 1, § 3 (1945), and by currently applicable GCR 1963, 16. The statute, section 3030 of our insurance code of 1956 (PA 1956, No 218), reads as follows:
“In the original action brought by the injured, person, or his or her personal representative in case death results from the accident, as mentioned in section 3006, the insurer shall not be made or joined as a party defendant, nor shall any reference whatever be made to such insurer or to the question of carrying of such insurance during the course of trial.”
While the rule as stated in the quoted statutory language, in addition to forbidding the joinder of a defendant’s casualty insurer, also forbids any reference whatever to be made during the trial to such insurer or to the fact that defendant was insured, it does not expressly forbid inquiry on voir dire examination, or otherwise during trial, regarding any other matters relating to insurance. For instance, the rule does not, by its terms, preclude the inquiry plaintiffs’ counsel made during voir dire in the cases at bar relating to a prospective juror’s possible bias in such cases as a result of her husband’s being engaged in the insurance business. If such inquiry on voir dire is to be forbidden, it must be for a reason other than that it violates the quoted rule, for it manifestly does not.
As we have seen, before Darr v. Buckley, voir dire examination touching upon the subject of insurance was not regarded as a right without limitation. The limitations imposed were imposed by this Court not because of the quoted rule, reliance thereon having been expressly rejected in Harker v. Bushouse, but, rather, on general principles of relevancy and fairness. Thus, where voir dire inquiry involving insurance was relevant to a challenge of a prospective juror for cause — for instance, if the juror were a member of a mutual insurance company which carried defendant’s risk, thereby having an interest in the outcome of the litigation — counsel was permitted to interrogate on that specific subject so long as the interrogation was conducted in good faith. Indeed, this Court has approved good faith voir dire examination concerning insurance to permit counsel’s intelligent exercise of his right of peremptory challenge. See Church v. Stoldt, supra, p 479. See, also, Swain v. Alabama (1985), 380 US 202, 209-222 (85 S Ct 824, 13 L ed 2d 759), for exhaustive consideration of the importance of the traditional right to challenge jurors to assure a fair trial by an impartial jury. The point of all of this is that while the quoted rule forbids joinder of, and reference to, defendant’s insurer and reference to the fact that defendant was insured, other references to insurance continue to be governed, not by the quoted rule but, rather, by our general principles of relevancy and fairness.
In the case at bar, plaintiffs’ counsel asked the following questions on the voir dire examination of one of the jurors:
“Q. Mrs. Bloom, you were a teacher at one time, and now you are a housewife, is that correct?
“A. Eight.
“Q. What does your husband do ?
“A. He has an insurance agency, general insurance.
“Q. Where is this insurance agency located ?
“A. Northville, Michigan.
“Q. What is the name of the insurance agency?
“A. C. Harold Bloom Agency.
“Q. What companies does he represent?
“A. I don’t know.
“Q. Does he write automobile insurance?
“A. Yes; and fire.
“Q. For a number of different companies?
“A. Yes. Many.
“Q. Many different auto companies?
“A. No. Mainly, Auto Owners. But he does have others.
“Q. Would the fact that your husband is in the insurance business make you favor one side or another in this case ?
“A. No, it would not.
“Q. Have you had anything to do with the operation of the business ?
“A. No.
“Q. Of taking reports?
“A. Nothing.
“Q. Your agency is out of your home then?
“A. Eight.
“Q. The only thing you would be doing would be hearing your husband talk about his work?
“A. Occasionally.
“Q. Does he handle, in this agency, everything? If a policyholder has an accident, does he take the report?
“A. Yes.
“Q. And take care of it?
“A. He does no adjusting.
“Q. Not adjusting. But he takes care of the policyholders in all areas ?
“A. Eight.
“Mr. Robb: I have nothing further at this time.”
None of the questions quoted referred to defendants’ insurer nor to the fact that defendants were insured. Consequently, the rule of inadmissibility taken from section 3030 of our insurance code of 1956, quoted above, does not apply to bar what was done here. Furthermore, plaintiffs’ counsel was entitled to know the information he elicited by his examination of Mrs. Bloom in order to determine whether he could challenge her for cause and, if not, whether he should challenge her peremptorily. Had he failed to inquire as he did, he would have had no basis for intelligent choice of the alternative actions available to him in completing the selection of a jury. Nor is the form in which his questions were cast offensive, prejudicially or otherwise. There is no nndne emphasis disclosed by the record of this examination upon the issue of insurance. Plaintiffs’ counsel determined only the nature of Mr. Bloom’s insurance business, without protracted examination, and that there was apparently no basis in the fact that her husband was engaged in such business for him to challenge Mrs. Bloom for cause or peremptorily. The trial judge’s denial of defendants’ motion for mistrial, made immediately after the voir dire examination of Mrs. Bloom, was not, therefore, erroneous.
This holding finds support in the recent decision of the third circuit court of appeals in Kiernan v. Van Schaik (CA 3, 1965), 347 F2d 775. There, plaintiff had sought on voir dire to question the veniremen concerning employment by, or stockholdings in, casualty insurance companies. The court held that it was error to refuse to permit the asking of such questions (p 782):
“We hold, therefore, that in order to exercise intelligently his limited number of peremptory challenges and to determine whether ground exists for challenge for cause, a plaintiff in an accident case may make reasonable inquiry whether prospective jurors are or have been connected with the business of investigating or paying accident claims, either as employees, agents or stockholders of insurance companies or claims agencies without suggesting the existence of insurance in the case. An adequate caution should be given by the court to make it clear to the jury that these questions do not imply either that any defendant is insured or that the matter of insurance or lack of insurance is to be considered in reaching a verdict.”
In Darr v. Buckley, as in our earlier cases of Holman v. Cole, Harker v. Bushouse, and Holloway v. Nassar, we have suggested alternative ways by which information concerning insurance which is relevant to a prospective juror’s qualifications may be obtained without parading the spectre of an invisible, but collectible, insurer before the jury. It is implicit, if not always explicit, in what has been written, that counsel’s good faith in venturing upon a voir dire inquiry, even one which is relevant and not expressly forbidden by the quoted rule, will be determined to a large extent by what the record shows of his diligence in seeking the information he needs by means available to him before the voir dire commences.
In this connection, it should be noted that since the beginning of 1963, by GCR 1963, 510, all prospective jurors are required to answer a questionnaire which, when completed, is filed with the clerk of the court and which is required to be made available to attorneys a reasonable time before they are required to challenge a juror for cause. Among the 48 questions required to be answered by prospective jurors are questions relating to their current and past occupations, their spouse’s occupations, whether their automobiles are insured, and, if so, by whom, and their ownership of stock in insurance companies. Consequently, some of the questions previously per7 mitted by this Court to be asked in good faith on voir dire examination no longer need be asked, the answers to such questions now being available before the trial commences. However, answers to some of the questionnaire’s questions might well suggest the necessity for further inquiry into matters relating to insurance in order to permit counsel intelligently to exercise his challenges. If there be no other way to make such inquiry except upon the voir dire examination, and if the subject be not proscribed by the quoted rule, then voir dire examination on the subject conducted in good faith should be permitted, but under judicial supervision to prevent a defensive inquiry from being perverted into a prejudicially offensive suggestion that defendant is insured.
Yfhen such inquiry is desired to be made, counsel should so advise the trial judge and opposing counsel in advance, specifying the subject of the inquiry and its predictable scope. If opposing counsel agrees to withdraw the prospective juror’s name from the jury box, no further inquiry need be made. If he does not, then the trial judge properly may permit voir clire examination on the subject. In some cases, the trial judge may determine to make such reasonably requested inquiry himself, even in those circuits in which traditionally counsel are permitted to conduct the voir dire examination. In other cases, the trial judge may determine to allow counsel to make the inquiry, but only by putting questions to the prospective juror which have been approved by the judge in advance. In any event, establishing in advance a precautionary procedure will minimize the risk that counsel may be found to have proceeded in bad faith and thereby will minimize the risk of mistrial.
None of defendants’ other asserted grounds for reversal is meritorious. Among them is the claim that the trial judge should have directed a verdict in favor of defendants because plaintiff driver was guilty of contributory negligence as a matter of law. That a jury might properly have so found cannot be doubted. However, evidence that plaintiff driver observed defendants’ car as it was slowly turning around a boulevard island from westbound to east bound, the direction in which she was traveling, without altering her course or sounding a warning until it was too late to avoid the collision which occurred, even if we assume such evidence to be the most favorable available to plaintiffs, would not have justified a directed verdict. We need only cite and quote again from Mr. Chief Justice Cooley’s opinion in Detroit & M. R. Co. v. Van Steinburg (1868), 17 Mich 99, at pp 118, 119:
“As a general rule, it can not be doubted that the question of negligence is a question of fact and not of law: * * * Negligence, as I understand it, consists in a want of that reasonable care which would be exercised by a person of ordinary prudence under all the existing circumstances, in view of the probable danger of injury. The injury [inquiry?] is, therefore, one which must take into consideration all these circumstances, and it must measure the prudence of the party’s conduct by a standard of behavior likely to have been adopted by other persons of common prudence. Moreover, if the danger depends at all upon the action of any other person under a given set of circumstances, the prudence of the party injured must be estimated in view of what he had a right to expect from such other person, and he is not to be considered blamable if the injury has resulted from the action of another which he could not reasonably have anticipated. Thus the problem is complicated by the necessity of taking into account the two sets of circumstances affecting the conduct of different persons, and is only to be satisfactorily solved by the jury placing themselves in the position of the injured person, and examining those circumstances as they then presented themselves to him, and from that stand-point judging whether he was guilty of negligence or not. It is evident that such a problem can not usually be one upon which the law can pronounce a definite sentence, and that it must be left to the sifting and determination of a jury.”
Affirmed. Costs may be taxed by plaintiffs.
T. M. Kavanagh, C. J., and Smith, J., concurred with Souris, J.
Felice, at 280:
“No matter liow any eonnsel may dress up his excuse for having brought forth — directly or indirectly by questioning of witnesses or by statement in the presence of the jury — the fact that an invisible defendant stands behind 1 or the other or both of the parties at bar, he must be judged guilty of having violated a standing rule of court this Court is trying to enforce. By this time surely, counsel should know better. For amplification, see Darr v. Buckley, 355 Mich 392.
“The ban of the rule is written in simple English. It applies to plaintiffs and defendants — and to their respective counsel — with equal force. Violation thereof places counsel in position where, the point having been timely raised and saved, he must by persuasive showing overcome a presumption that what occurred, whether intentional or otherwise, was prejudicially improper. There is no sueh showing here, nor could there be. It follows that plaintiffs’ second motion for mistrial, made prior to return of verdicts by the jury, should — then and there — have been granted.”
Plaintiffs’ counsel, Mr. Robb, supplied as author that portion of the latest volume of Am Jur Trials (vol 9) which commences on page 428 and ends at page 512. On pages 460 and 461 of the volume, under subheading “§ 19. In General; Pretrial Motions to Exclude Prejudicial Matter,” Mr. Robb wrote up his own duty as it stood when Judge Gilmore warned and instructed both counsel as quoted above. The text to which reference is made reads:
“Appropriate motions may be made by defense counsel to bar the plaintiff’s attorney from mentioning or suggesting that an insurance company will pay any damages awarded, or that the defendant will never be personally liable for any verdict brought in against him.”
See Mr. Robb’s own “motion to peremptorily exclude reference to certain matters during trial” (Appendix 2, post).
Mrs. Bloom’s said questionnaire, to whieh. all counsel per rule had previous ready access, is attached in appendix form. A comparison of the questions and answers appearing therein, with the foregoing questions and answers, supplies damning proof that the purpose of the quoted open court interrogation was that of “conveying information to them [all veniremen present in the courtroom] about the existence of insurance in the ease and influencing them thereby.” The quotation is from DeGroff, supra, p 276.
How this is to he done, and assured for what then would be left of seetion 3030, is not made olear. I suppose it will be the duty of counsel to inform the trial judge, on the reeord (which incidentally counsel did not do in the ease at bar), of the identity by name of “defendants’ insurer.” Would there be any other- way for counsel to establish, when challenged, that he has not violated this new translation of section 3030?
This one was; see Judge Gilmore above.
On at least three occasions Judge Gilmore excused ealled jurors from participation after having authorized counsel to “approach the bench.” On two occasions that was done before any interrogation of the excused jurors had commenced.
No mention of this order, or of Mr. Robb’s almost immediate scorn thereof, appears in the opinions of the Brethren standing for affirmance. Have our trial courts, and this Court in turn, become so weak that they cannot or will not enforce a meanfully proper order like that?
“No request to charge on the subject was presented, and we think the subsequent announcement of satisfaction operated as a waiver of the matter. William R. Roach & Co. v. Blair, 190 Mich 11.” (Justice Adams’ quotation of Snyder v. Mathison.)
Here is defendants’ second motion for mistrial and its disposition by Judge Gilmore:
“Mr. Sullivan: If it please the court the defendants move for a mistrial because of the plaintiff’s deliberate injection of insurance into this case. Up until the time that I had a portion of the record transcribed during the noon recess I was not-sure of the manner in which the term was used but I have it now.”
In his closing argument in the first few lines Mr. Robb said:
“Negligence is no more than a wrong. Here we charge that the defendants were wrong in operating their car. They violated their legal duty. The law says that if you drive you must insure that you drive properly and carefully under the circumstances. If you don’t you violate this duty; you must respond to damages. ***
“The Court: That doesn’t inject insurance into the. case, to my mind, I will deny the motion.”
See GLS 1961, § 500.3030; GCR 1963, 16.—Reporter.
As a matter of fact, it was defendants’ counsel who challenged Mrs. Bloom peremptorily. Under such circumstances, I fail to follow Justice Black’s suggestion that “We may hardly assume that the assembled jurors did not conclude from what went on that Auto Owners was the ‘defendants’ insurer’ and that the prompt dismissal of Mrs. Bloom [by defendants’ counsel] was due to her husband’s connection with Auto Owners”. | [
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Dethmers, J.
In these cases, consolidated for trial and appeal, plaintiff Corda Stevens sues for damages for personal injuries and her husband, plaintiff Clifford Stevens, for medical expenses incurred in' her behalf and loss of consortium.
A jury returned a $6,000 verdict for the wife and a $3,000 verdict for the husband. On presentation of defendant’s motions for new trial, the court filed an opinion ordering new trial unless plaintiff ■ wife should remit $3,000 and plaintiff husband $1,000, reducing her judgment to $3,000 and his to $2,000. Plaintiffs declined to file remittiturs and appeal from such order.
Defendants employee drove. _a truck against.-a. cinder block restaurant building in which plaintiff wife was working. The building was shifted on its foundation 3 or 4 inches, blocks were cracked down.; one side and practically everything in the building* was' moved by the force or shock of the" collision. Plaintiff wife testified that her right leg hit against a mechanical dishwasher. In his opening statement at trial defense counsel conceded that defendant’s driver had been negligent and stated that defendant was contesting only the question of damages.
Plaintiff wife testified that prior to the accident she had had no difficulty with her neck or right leg, but thereafter continued to suffer considerable pain in both; that the leg started bothering so badly that she-couldn’t stand on it; that after some absence-from her job she attempted to work but was so bothered by her leg that her employer sent her to a doctor who informed her that she had a blood clot and told her to go home and stay off her leg. She was treated in a hospital outpatient department.. A blood clot later developed in her chest. A ligation was performed on her leg. For 6 months after that she could not work, and frequently she was treated in the emergency department ■ of a hospital. She was still suffering leg pains at time of trial almost 3-1/2 years after the accident. She had started a restaurant business, but lost 3 months’ work from her business because of her leg and hired a substitute for $30 per week. A physician who had examined her more than 2-1/2 years after the accident ■testified that she was injured in the neck and back and leg from the accident; that she suffered from tenderness in the trapezius muscles in the back of the neck, decrease in her ability to flex her neck, tenderness in the right calf and minimal varicose veins. He expressed the opinion that all this was caused by the accident. The doctor also testified that she had a congenital arthritic condition of the vertebrae and that this rendered her more susceptible to trauma. Also, he testified that he considered her injuries as permanent. He was of the opinion that the accident caused a thrombosis in a vein, that a portion of the clot later broke off and traveled to her lungs, causing a pulmonary embolism. Another doctor’s testimony confirmed the above. He expressed the opinion, in testimony, that the accident had caused a traumatic phlebitis in the leg which later developed into a pulmonary embolism, that in such cases a blood clot circulating in the blood stream could get into the heart and produce coronary thrombosis and death.' The evidence showed out-of-pocket expenses for'doctor and hospital bills of $1,172.20 and loss of wages and money paid to employ a substitute for plaintiff wife in her restaurant totalling $1,740, or a combined total of $2,912.20.
In his opinion the trial judge stated that plaintiff wife’s “injuries were slight, and that the jury became inflamed apparently as the result of the insurance issue introduced by the plaintiff herself.” With respect to the latter, the court stated that it consisted of the fact that when asked on the witness stand about going to a certain doctor, she “volunteered in answer, a question: ‘Is that the insurance doctor?”’ The record discloses that the court did not hear her correctly. Her question actually was, “Is that the internist doctor?” The record also discloses that that doctor was an internist. The record thus strips the trial judge’s opinion of any basis for the idea that the jury had been inflamed or influenced by mention of insurance.
There remaining no showing of any improper conduct or language by plaintiff or her counsel, as thought by the trial judge, which would have inflamed the jury or appealed improperly to its sympathy or caused a verdict resulting from passion, prejudice, partiality, or corruption, the verdict should be upheld unless it is so excessive as to shock the judicial conscience.
In point is the following quotation from 6 Callaghan’s Michigan Pleading & Practice (2d ed), § 41.13, (p 397), cited with approval in Weeks v. Hyatt, 346 Mich 479, 490:
“As long as the amount awarded is within the range of the evidence, and within the limits of what reasonable minds might deem just compensation for such imponderable items as personal injuries, sustained and pain and suffering, the verdict rendered should not be set aside.”
We approve, also, from 9 Michigan Law & Practice, Damages, § 61, pp 62, 63:
“There is no fixed criterion for determining when an award of damages is excessive, hut if an award is within the scope of the testimony, fairly represents the judgment of the jury, and does not appear to have been the result of prejudice, passion, partiality, sympathy, or corruption, it will generally he sustained, whether attacked as excessive or inadequate. However, if an award is so excessive as to shock the judicial conscience, it will be reduced.
“The permanency of an injury has a bearing on whether an award is excessive.”
In Cleven v. Griffin, 298 Mich 139, this Court said:
“There is no absolute standard by which we can measure the amount of damages in personal injury cases. The amount allowed for pain and suffering must rest in the sound judgment of the triers of the facts. Watrous v. Conor, 266 Mich 397; Weil v. Longyear, 263 Mich 22. Courts are reluctant to disturb verdicts of juries for personal injuries on the ground that the amount is excessive. Cawood v. Earl Paige & Co., 239 Mich 485. We do not usually substitute our judgment for that of the jury unless the verdict shocks the conscience or has been secured by improper means, prejudice or sympathy. Watrous v. Conor, supra; Michaels v. Smith, 240 Mich 671. The verdict was within the range of the testimony and not excessive.”
In Majewski v. Nowicki, 364 Mich 698, We said:
“There is nothing to indicate that the verdict' was reached as a result of passion, prejudice, mistake of law or of fact, or that it amounts to an injustice to defendants or is contrary to the evidence. We can. only conclude that the entering of an order, requiring remittitur constituted an abuse of discretion.”
In the instant case testimony as to pain, suffering, permanence of injury, disability, medical and hospital expenses, and loss of wages, if accepted as true, as it evidently was by the jury, makes the verdicts well within the range of the proofs. They are not shown to be the result of prejudice, passion, partiality, sympathy, corruption or inflammatory remarks. They are not so excessive as to shock the judicial conscience. The trial court was guilty of an abuse of discretion in requiring the remittiturs)
Reversed and remanded for entry of judgments on the verdicts. Costs to plaintiffs.
T. M. Kavanagh, C. J., and Kelly, Black, Souris, Smith, O’Hara, and Adams, JJ., concurred. | [
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Souris, J.
The organic laws of the State of Michigan always have provided that private property may not he taken for public use without due process of law and compensation. One crucial question involved in the implementation of such organic provisions has been, when is property actually “taken”. This Court has been committed to a liberal interpretation of “taking”, as indicated by this passage from Pearsall v. Eaton County Board of Supervisors (1889), 74 Mich 558, 561, 562 (4 LRA 193):
“The term ‘taking’ should not be used in an unreasonable or narrow sense. It should not be limited to the absolute conversion of property, and applied to land only; but it should include cases where the value is destroyed by the action of the government, or serious injury is inflicted to the property itself, or exclusion of the owner from its enjoyment, or from any of the appurtenances thereto. In either of these cases it is a taking within the meaning of the provision of the Constitution.
“ ‘A partial destruction or diminution in value is a taking.’ Mills, Eminent Domain [2d ed], § 30; Pumpelly v. Green Bay Co., 13 Wall [(80 US) 166] 177; Cushman v. Smith, 34 Me 247; Grand Rapids Booming Co. v. Jarvis, 30 Mich 308.
“If the public take any action which becomes necessary to subserve public use, and valuable rights of an individual are thereby interfered with, and damaged or destroyed, he is entitled to the com pensation which the Constitution gives therefor, and. such damage or destruction must he regarded as a ‘taking.’ ”
There need not be even a physical invasion of property to constitute a taking:
“That there may be a taking of property without actual physical invasion of it has often been held. In Allen v. City of Detroit, 167 Mich [464], 473 (36 LRA [NS] 890), Justice Steere, speaking for the court, said:
“ ‘Building restrictions are private property, an interest in real estate in the nature of an easement, go with the land, and are a property right of value, which cannot be taken for the public use without due process of law and compensation therefor. * * * The contention that the city, under its general police power, may ignore this building restriction, and erect its fire engine house within the restricted district, because it is necessary for the public good and to protect the lives and property of citizens in that locality, is not tenable. When such action deprives the individual of a vested right in property, it goes beyond regulation under police power and becomes an act of eminent domain governed by the appropriate condemnation laws.’
“See, also, Schneider v. City of Detroit, 72 Mich 240 (2 LRA 54).
“In Ranson v. City of Sault Ste. Marie, 143 Mich 661 (15 LRA [NS] 49), the city without physical invasion of plaintiff’s property built a bridge in the street and constructed approaches thereto, seriously interfering with plaintiff’s access to the street from the adjacent property and it was said by this court:
“ ‘Plaintiff’s damage flows from the construction of an embankment by the city which has the effect to destroy, to some extent, her property. Within repeated decisions of this court, there has been a “taking” of plaintiff’s property, and, if we could consider the purpose of the taking a “public pur pose,” plaintiff was entitled, by the terms of defendant’s charter, to compensation. The city has taken, without proceedings to determine either necessity or resulting damage.
“ ‘The term “taking” should not be used in an unreasonable or narrow sense. It should not be limited to the absolute conversion of property, and applied to land only, but should include cases where the value is destroyed by the action of the government, or serious injury is inflicted to the property itself, or the owner is excluded from its enjoyment, or from any of its appurtenances.’ Pearsall v. Board of Sup’rs of Eaton Co., 74 Mich 558 (4 LRA 143); (quoting from the syllabus).” City of Big Rapids v. Big Rapids Furniture Manfg. Co. (1920), 210 Mich 158, 174, 175.
As is evident from the passage just cited, some of the cases in which the definition of “taking” has been considered have involved injury caused the owner of property abutting upon a street by a change in the grade of the street. In a series of cases, beginning with Schneider v. City of Detroit (1888), 72 Mich 240 (2 LRA 54), the Court held that the general power to change the grade of a street does not include, for example, raising the street grade as an approach to a viaduct over a railway in such fashion that there is a concomitant injury to property abutting upon the street. Such a change in grade, the Court held, should be accomplished by means of the power of eminent domain, so that abutting owners, whose property was diminished in value and so “appropriated” by the grade change, could obtain compensation.
Thus in Phelps v. City of Detroit (1899), 120 Mich 447, 448, the city “erected a bridge over the Michigan Central Eailroad tracks, which cross Fourteenth avenue adjoining the plaintiff’s premises. This bridge takes up the entire width of the street, except about five feet on each side, thus depriving the property of the benefits of the street as a street. The approaches to the bridge, which are immediately in front of the plaintiff’s premises, are built of stone, iron, and earth, and vary from 10 to 40 feet in height.”
In upholding plaintiff’s right to compensation, the Court quoted approvingly this, and other, language of Mr. Justice Champlin in Schneider v. City of Detroit, supra (p 449) :
“ ‘The exercise of the power to erect such bridges in streets would necessarily involve quite an amount of abutting property in damage, and some entirely in destruction, for any beneficial use or enjoyment. Such consequences cannot be brought under the general power to grade streets, but must be provided for under the power of eminent domain. Private property cannot be appropriated for the public use without the necessity therefor is first determined by a jury under our Constitution, and compensation awarded and paid. Doubtless the method of crossing a railroad by a viaduct is safer than a crossing at grade, and upon streets which are recognized thoroughfares, over which the public are almost constantly passing, such bridges would greatly conduce to the public safety and convenience, and it would be wise for the legislature to confer upon municipalities the authority to erect such structures in the streets, and condemn private property for that purpose, if necessary; but, until this is done by special enactment, I do not think it can be done under the power now conferred by the general authority to grade, make, repair, and improve streets.’ ” (Emphasis added.)
In Ranson v. City of Sault Ste. Marie (1906), 143 Mich 661, the grade of the street in front of plaintiff’s dwelling was raised to accommodate approaches to a bridge over a canal. In affirming a judgment of damages for plaintiff, the Court said (p 670):
“The general power over streets, their grades and maintenance, and over bridges and the manner in which they shall be constructed, which is usually possessed by cities and is possessed by defendant city, must be considered with reference to, and is limited by, the purposes and uses of public ways. Plaintiff’s damage flows from the construction of an embankment by the city which has the effect to destroy, to some extent, her property. Within repeated decisions of this Court, there has been a ‘taking’ of plaintiff’s property, and, if we could consider the purpose of the taking a ‘public purpose,’ plaintiff was entitled, by the terms of defendant’s charter, to compensation. The city has taken, without proceedings to determine either necessity or resulting damage. So that whether we regard the action of the defendant in erecting the bridge as within or outside of the charter powers, there has been a tortious taking of property.” (Emphasis added.)
The fair purport of the decisions just discussed is this: if a governmental unit, which has the undoubted power to change the grade of a public road for the public benefit, demonstrably injures the property of an abutting owner by so doing, that owner’s property has been to that extent “appropriated” or “taken”, in the constitutional sense, and if proceedings have not been had to condemn the property under the eminent domain power, the owner is entitled to seek damages in a court proceeding.
And yet, there are cases in Michigan which seem to hold precisely the opposite. The earliest of these appears to he City of Pontiac v. Carter (1875), 32 Mich 164. In Carter, without so much as a reference to the then pertinent constitutional provision found in the Constitution of 1850, art 18, § 2, the Court, through Mr. Justice Cooley, held that one injured by a change in grade of an abutting street had no cause of action for damages. Several reasons were advanced for this decision. First, the Court raised a sort of in terrorem argument. For example:
“Nor, if he can maintain a suit [for damages caused by the change in grade of an abutting street], is it easy to assign reasons for denying the like remedy to one whose property is diminished in value by * * * permitting a public prison to be located nearer to him.” 32 Mich 164, 171, 172.
As to the specific instance of locating an objectionable building near an objecting property owner, compare the analogous situation of placing a fire engine house in a restricted area, discussed in Allen v. City of Detroit (1911), 167 Mich 464, 473 (36 LRA NS 890), part of which opinion is quoted in City of Big Rapids v. Big Rapids Furniture Manfg. Co., supra. Moreover, the Carter Court did not seem to recognize that the right of an abutting owner to reasonable access to the street is of a different nature, for example, than the right, if any, of a citizen to have his city retain its status as a county seat (32 Mich at 172). Indeed, the right of reasonable access by an abutting owner has been characterized by this Court as an “indefeasible right”. Goodfellow Tire Co. v. Detroit Commissioner of Parks and Boulevards (1910), 163 Mich 249, 254. And see Giegling v. Helmbold (1959), 357 Mich 462, 464, where the Court said:
“It has long been decided law in this State that an abutting owner’s right of access to a public street or alley is an interest in the land concerned. Horton v. Williams, 99 Mich 423.” (Emphasis added.)
It follows that when a governmental unit injures that right of access, it injures a property interest, and that injury, under the holding of Pearsall, supra, constitutes a “taking” for which just compensation constitutionally is required.
Secondly, the Court argued in Carter:
“The injury in all these cases is incidental to an exercise of public authority, which in itself must be assumed to be proper, because it is had by a public body acting within its jurisdiction, and not charged with malice or want of good faith. It must, therefore, be regarded as an injury that every citizen must contemplate as one that with more or less likelihood might happen.” 32 Mich 164, 172.
Here the Court misses the point. No one asserts that it is beyond government’s authority to change a public road grade, but rather it is asserted that if the government’s authorized action results effectively in taking of private property, the owner of that private property, by constitutional mandate, must be compensated. Surely a contrary result is not within the actual contemplation of the average property owner, and thus the Carter Court’s bare allegation that it is, indeed, within his contemplation prompts reference to Mr. Justice Talbot Smith’s comment in I. M. Dach Underwear Company v. Employment Security Commission (1956), 347 Mich 465, 480, 481:
“Whenever the law says that what a person did, legally, is the opposite of what he did actually, that when he shouted ‘No,’ what he really (legally) did was to whisper ‘Yes,’ then explanation is due our people that they may guard against the evils of clear speech and forthright expression.”
The Carter Court, finally, argued that when land is condemned for highway purposes, the award given covers the possibility that the abutting property might at some unspecified future date suffer yet incalculable damages by an unpredicted and unpredictable change in grade. The mere statement of the argument disposes of it, especially in view of this statement in City of Detroit v. Grigg Hanna Lumber & Box Co. (1941), 296 Mich 415, 420: “Until the grade of a public street is actually changed the damages resulting therefrom must of necessity be speculative”.
The Carter Case has been followed uncritically in a number of subsequent cases, none of which, significantly, expatiates upon, or even elucidates, its rationale.
Thus, for example, in Hembling v. City of Big Rapids (1891), 89 Mich 1, the Court denied recovery to a plaintiff who alleged that his land had been damaged when the grade of an abutting street had been raised. After the grade had been changed a committee of the city council assessed plaintiff $15 as the amount he had benefited from the grade change. Since plaintiff had not appealed this determination to the council, the Court held him estopped from later claiming he had, in fact, been damaged by the grade change. Quite gratuitously the Court noted, citing Carter, that no recovery might be had for a change of grade:
“Inconvenience may result to him, and his property be rendered less valuable, but public accommodation must prevail over his private interests.” 89 Mich 1, 4.
This is a thread that warps through several of these cases, namely, that paying abutting owners for damage done to their property by a grade change would make highway improvements too expensive. See Carter, supra. Baldly put, the constitutionally specious argument is this: “Changing the .grade of a highway will benefit the many who are the public, and may injure a few abutting landowners. It is only just, therefore, that the few should not be compensated because, after all, the many will benefit.” We prefer the reasoning expressed in Stock v. Township of Jefferson (1897), 114 Mich 357, 360-362:
“It does not appeal to one’s sense of justice to say that the exercise of a right possessed is not of as much benefit to the possessor as the taking of that right from the owner would be to the trespasser. * * *
“It is urged very earnestly by counsel that Mr. Stock’s right to maintain his dam and to use the water that would naturally come to his mill must give way to the right of the public to improve the highways, to drain lands, and to generally improve the country. It is sufficient reply to this argument to say that it has long been the fundamental law of the land that a man is not to be deprived of his property without due process of law, and without compensation.”
In many other cases decided after 1893 and purporting to rely upon Carter, the Court was not forced squarely to meet the issue of whether injury done to an abutting owner by a grade change was a compensable taking. This is because PA 1893, No 92 (CL 1948, § 253.1 et seq. [Stat Ann 1958 Rev § 9.1101 et seq.]) provided for the payment of damages resulting from a change of grade of a highway at a railroad crossing by the county, township, or city participating in the grade separation, and PA 1925,
No 114 (CL 1948, § 253.51 et seq. [Stat Ann 1958 Rev § 9.1141 et seq.l) provided for such payment by the State, county, township, city, village, board, commission or other agency participating in the grade separation. See, for example, A. M. Campau Realty Co. v. City of Detroit (1934), 268 Mich 417. There plaintiff filed a bill in chancery to restrain the lowering of a street grade at a railroad crossing until plaintiff’s damages were determined. The Court held that plaintiff had an adequate remedy at law, citing the grade separation acts, supra, and so affirmed the chancellor’s dismissal of the bill. Without reference to contrary holdings, for example, Schneider v. City of Detroit, supra, the Court also stated:
“We have repeatedly held that the lowering of the street grades is not the taking of abutting property without due process of law. City of Detroit v. Grand Trunk Railway of Canada, 163 Mich 229; Mead v. Michigan C. R. Co., 174 Mich 521.” 268 Mich 417, 420.
Both of the cases cited in Campau involved proceedings under grade separation acts and so, in both, plaintiffs could seek compensation under those acts.
The most recent pronouncement on this general problem appears in City of Detroit v. Grigg Hanna Lumber & Box Co., supra. There plaintiff, whose property abutted upon a street the grade of which was lowered to accommodate a railroad grade separation, appealed claiming, inter alia, that the amount of damages it received was inadequate. This Court affirmed, largely in reliance upon Grigg Hanna Lumber & Box Co. v. State Highway Commissioner (1940), 294 Mich 346. There plaintiff had filed a bill of complaint to restrain the lowering of the street grade and from eventual dissolution of an issued restraining order, plaintiff appealed. In denying plaintiff relief, the Court said (p 354):
“As a general rule, an impairment of the owner’s right of access to his property by a change in the grade of an adjoining street is not such a property interest as will fall within the ambit of the constitutional guaranty.”
Carter was one of the cases cited in support of the “rule”.
The Court said further (p 355):
“Such decisions are predicated upon the well-recognized theory that in congested metropolitan areas with rapidly increasing population and in a dynamic, swift-moving society the interest of safe and rapid travel is sometimes paramount to the interest of the individual.”
While we might well agree that society’s interests are paramount to the individual’s insofar as the latter may not, for his own convenience, prohibit a grade change, we do not agree with the Grigg Hanna Court’s ruling that society may justly benefit itself at the expense of an individual by failing to compensate him for damage done to him in order to procure society’s benefit. As Mr. Justice Potter, who wrote for the Court in the first Grigg Hanna Case, said in his earlier concurring opinion in James S. Holden Co. v. Connor (1932), 257 Mich 580, 596:
“It has always been a basic principle of the law that ‘If the work is of great public benefit, the public can afford to pay for it.’ Eaton v. Railroad Co. [51 NH 504, 518 (12 Am Rep 147)].”
Moreover, it appears that the Court in the first Grigg Hanna Case recognized that even in the face of the “general rule” it cited, there might he instances where a grade change might result in a taking of the abutting owner’s property. Thus the Court distinguished cases where, after the change of grade, a suitable alternative means of access to abutting property was provided, and where, therefore, no compensation could be had, from cases where “the alternative route is dangerous, poorly constructed, or manifestly inadequate”. 294 Mich 346, 357.
Upon consideration of the foregoing cases, and others, we have been persuaded that sound public policy and our concept of fundamental justice, to say nothing of our constitutional mandates, require overruling the rule enunciated in City of Pontiac v. Carter and require, instead, recognition of the fact that when a governmental unit changes the grade of a highway in such a way as to diminish the value of an abutting owner’s property by impairment of his right of access to that highway, that owner’s property has, to the extent of the diminution in its value, been “taken” for the public’s use, thereby entitling the owner to just compensation therefor.
We turn now to the facts of the case before us.
Daniel and Ariel Thom own 80 acres of land in Burnside township, Lapeer county, with a frontage of 80 rods on highway M 53. On this land are located their home, farm buildings and farm machinery. In addition to these 80 acres the Thoms own an aggregate of 258 acres in four separate areas in Burnside township. The M 53 site serves as headquarters for a farming operation involving all of this land.
The Thoms purchased the M 53 site in 1939, and in subsequent years improved it by the erection of a home and farm buildings and by landscaping. Situated some 125 feet back from M 53, and about two feet above the grade of that highway, the attractive farm home was regarded as somewhat of a local showplace.
Highway M 53 runs north and south in front of the Thom home, and access was had to it by means of a H-shaped driveway which encircled the home and intersected M 53 at two points.
In 1961 the State highway department began to improve M 53 and this involved an alteration of the grade in front of the Thom home property. When construction was completed, the grade of M 53 was 10 feet higher than the Thom drive at its southern intersection and eight feet higher than the drive at its northern intersection, leading one witness to testify that “it looks as though they built in a hole”. In addition the grade along the frontage of the Thom property from almost its southern boundary was substantially raised, and the highway grade was not level again with abutting property until approximately 400 feet north of the existing north drive.
Because of the grade change, Thom has great difficulty in moving his farm machinery off the 80-acre site which, of course, is necessary because of the scattered tracts involved in his farming operation. Mr. Chaffin, project engineer for the State highway department, agreed that the present access from the Thom property to M 53 is “pretty bad”. The State highway department’s appraiser testified:
“A. I don’t think it is advisable for any property owner to be going in and out of those [drives].
“Q. Why?
“A. Dangerous.
“Q. Because of the steep incline?
“A. That’s right.”
Because of this state of affairs the Thoms filed suit in 1961 in the court of claims seeking recompense. Testimony, including the above, was taken, and it is undisputed that the Thom property was lessened in value as a result of the grade alteration, a witness for the State estimating the diminution of value at $5,200 and a witness for the Thoms estimating it at $23,000. Nonetheless that court dismissed the Thoms’ claim, reasoning (1) that the change of grade, being within the existing right-of-way, gives rise to no damages compensable under the Constitu tion or laws of Michigan; (2) that the Thoms were barred from seeking damages by a release of right-of-way executed by their predecessors in title, which release provided that: “This conveyance includes a release of any and all claims to damage arising from or incidental to the altering, widening, draining, and improving of the road and the location thereof in, over, and upon land hereby granted”; and (3) that the State is immune from liability for acts committed in the performance of a governmental function.
The first ground is disposed of by our prior discussion. On the facts of this case it is undisputed that the change in the highway grade made the usual access to plaintiffs’ land very difficult, and caused a substantial diminution in the property’s value, and we therefore hold that there was a partial taking of plaintiffs’ property without due process of law and without just compensation in violation of the then pertinent constitutional provision, Const 1908, art 13, § 1.
Neither are plaintiffs barred from redress by the language contained in the release executed by their predecessors in title, for which release plaintiffs’ predecessors received the sum of $20.56. This language indeed bars plaintiffs’ claim to incidental damages assertedly incurred as a result of the grade change. However, the nature of the grade change was such as to effectuate a partial talcing of their property, and for this they are entitled by our Constitution to compensation. Certainly the release would not deprive plaintiffs of their constitutionally guaranteed compensation if the State had physically taken part of their property to widen the highway. So neither does the release bar them in the presented circumstances where there has also been a compensable taking. Before we will find that a party has waived a constitutional right, more explicit language must be present than is found in this release.
Finally, it is argued that in any event this suit for damages in the court of claims is barred because of the State’s immunity from tort suits. However, in this case of Thom there was a taking of part of the Thoms’ property without due process of law and without just compensation in direct contravention of the provisions of the State’s Constitution. As my Brother Black notes in his opinion, that same constitutional provision imposes upon the State an implied liability ex contractu for such compensation. To permit the State to assert the defense of governmental immunity in such circumstances would be utterly to vitiate the constitutional provision providing for just compensation for the taking of private property for public use, for it would mean that the owner of property alleged to have been taken without compensation would be left without judicial recourse. It is the general rule that even the State may not intrude upon a citizen’s lawful possession of his property (Ashley v. City of Port Huron [1877], 35 Mich 296, 300; Herro v. Chippewa County Road Commissioners [1962], 368 Mich 263, 272). While the citizen’s possession is subject to the power of eminent domain, it would be absurd and contrary to the explicit guarantee of the Constitution to say that if the State takes property without giving the required compensation, it thereby becomes immune from any suit to obtain that compensation.
We conclude, then, that when a governmental unit changes the grade of a highway in such a way as either to destroy or to interfere seriously with an abutting owner’s right of access to that highway, and such interference results in a significant diminution in the value of the property, then there has been a taking of the property to that extent, and if proper condemnation proceedings have not been had, resort may be had to the court of claims for compensation where the governmental unit is the State or an agency of the State within contemplation of the court of claims act. CL 1948, § 691.119 (Stat Ann 1959 Cum Supp § 27.3548[19]). See, currently, CLS 1961, § 600.6419 (Stat Ann 1962 Rev § 27 A.6419).
Reversed and remanded for further proceedings. Costs to appellants.
T. M. Kavanagh, C. J., and Dethmers, J., con-’ curred with Souris, J.
Kelly, J., concurred in result.
Black, J.
(for reversal). I cannot agree with Justice Souris’ criticism of and motion to overrule the “rule” of City of Pontiac v. Carter, 32 Mich 164. Such criticism is both wrong and unnecessary. I do agree that Pontiac has been applied, loosely and uncritically, in the more recent cases cited by Justice Souris, and I agree for reasons to be stated that the judgment of the court of claims should be reversed.
This case is typical of too many where a court of final appeal, having examined a mature precedent for the primary purpose of overruling it, makes bad law. Now surely, when a decision of a court of final resort is said by one party to be applicable either in bar or sustenance of recovery, and is said by an opponent party to be wholly inapplicable, that decision should first receive painstaking consideration in the light of the facts and issues which formed the basis of what was written by that Court. I have written to the point in greater detail for the case of Bauman v. Grand Trunk W. R. Co., 376 Mich 675 and refer simply to this example, taken from Wolcott v. Holcomb, 97 Mich 361, 368:
“It has often been said by this and other courts that the language of a decision must be construed with, reference to and confined to the facts of that case.”
City of Pontiac v. Carter, 32 Mich 164, is the specific target at which Justice Souris has aimed his latest arrow of overrulement. Two years after it was handed down Pontiac was cited to and expressly distinguished by the Court (Ashley v. City of Port Huron, 35 Mich 296). The same thing occurred five years after release of Ashley (Buskirk v. Strickland, 47 Mich 389). On all three occasions (Pontiac, Ashley and Buskirk) Justice Cooley wrote for the unanimous Court. In Buskirk the Justice distinguished Pontiac in these specific terms (pp 391, 392):
“The question, then, is not whether this plaintiff could have complained of consequential injury from the legitimate improvement of the street: City of Pontiac v. Carter, 32 Mich 164; nor whether after so great a lapse of time the offered dedication could be accepted; but it is whether the authorities, without distinctly evincing an intent to accept, can enter upon the premises and remove with impunity the lateral support of adjacent grounds to the injury of their owners. And we are all of opinion that they have no such right. The question of the right to the soil within the limits of the platted streets, if the village authorities had seen fit to accept the offered dedication, does not arise upon this record.”
I shall come to Ashley later.
Justice Souris points out that the Court, in Pontiac, made no reference “to the then pertinent constitutional provision found in the Constitution of 1850, art 18, § 2.” That is quite true. The reason, appearing clearly from the opinion of Pontiac as well as from her brief on appeal, is that Mrs. Carter made no claim under that constitutional provision. Hence that provision was not mentioned by Justice Cooley. Instead, the plaintiff relied exclusively upon eases from other jurisdictions, notably Ohio, which provided a common-law right of recovery upon the theory (p 168) “that for any injury occasioned to an adjoining lot-owner by a change in the grade once established for a street an action will lie.” What was specifically and solely decided in Pontiac was that “no action would lie against a municipal corporation or body for an injury resulting from a lawful exercise of its legislative authority.” The quotation is taken from Pontiac at 170. The emphasis is mine.
In this case of Thom, however, as in Ashley and then in Buskirk, what in fact was done by the defendant State highway commissioner has been found not to be “a lawful exercise of legislative authority.” Rather, the specific question of “taking” having been raised, we now conclude on motion of Justice Souris that when a governmental unit changes the grade of a highway in such way as to either destroy or seriously interfere with an abutting owner’s right of access to that highway, and that interference results in a significant diminution in the value of the property, then there has been a taking of the property to such extent, and if proper condemnation proceedings have not been had, the owner has a remedy by force of the constitutionally guarded property fight (Const 1908, art 13, § 1; Const 1963, art 10, § 2).
In its essence the specific rule of Pontiac appears in the summation (p 172). It is that the plaintiff’s damages, as alleged by her in that case, were covered by the original award of compensation, “except such as may result from an improper or negligent construction of the public work, or from an excess of authority in constructing it.” Justice Cooley went on: “In other words, the award covers all damages resulting from the doing in a proper manner whatever the public authorities have the right to do ; but it does not cover injuries from negligence, or from trespasses.”
Now it is this quoted rule of law which Justice Souris would overrule. Believing that it is fully as valid today as when written in 1875, I stand by it. Indeed, one may perceive with no difficulty that the Court, should it overrule Pontiac, will some day find its membership confronted by facts and contentions duplicating what it was called upon to consider in Pontiac. What then will the Court do? Overrule Thom, or ignore Thom by applying Pontiacl Or, unwilling to admit error, will the Court write that Pontiac and Thom are both distinguishable for some trifling reason?
Now let us examine the facts presented and contentions made in Pontiac which allegedly require overrulement of Pontiac or application thereof in bar of the Thom claim. In Pontiac the Court had before it a repetitiously specific allegation by Mrs. Carter, and proof in support, that the defendant city did “wrongfully enter upon said Saginaw street, and with shovels, hoes, plows, and scrapers, et cetera, filled in, raised and regraded, or caused to be filled in, raised and regraded with earth, stones, timber and other material, said Saginaw street to the depth of hvo feet, to wit: at the city of Pontiac, county of Oakland aforesaid.” No impairment of access to the sidewalk and street in front of her property was claimed by Mrs. Carter. She did claim that her “business and occupation of an inn, or hotel keeper,” had been damaged and injuriously affected by the acts of the city. That she might have claimed before this Court that the acts complained of amounted to an unconstitutional “taking” of her property is beside the point. She did not, choosing instead to rely upon the mentioned Ohio rule.
In Thom, on the other hand, it has been shown that the grade of trnnldine highway M 53 was raised vertically 10 feet with result that no motor vehicle —farm or otherwise—may enter upon the pavement of the trunkline, from plaintiff’s farm as before, without serious risk of automotive collision occasioned by customary trunkline speeds and particularly by a want of requisite vision, both ways on and along M 53, before entry thereon. There is no ground, these variant circumstances considered, upon which it may be argued seriously that Pontiac, if not overruled, would apply in bar of the present claim.
It becomes increasingly clear that our legal ancestors, from as far back as John Marshall’s time, have had good reason for warning against application of what modern students call the “rationale” of a case without careful scrutiny of the fact-setting thereof. An elevation of the grade of a city street to the extent of two feet, that only without proof of an actionable trespass, especially when done in the days of horse-drawn vehicles and wooden sidewalks, could hardly be termed a “taking” of abutting property even if the constitutional point had been pressed on the Cooley Court. Now does Pontiac’s rationale (reasoning to decision of a case as presented, I call it), written as it was by Justice Cooley, need any defense? If the Justice were here, writing with us, would he say that Pontiac had any present application should the Court fail to overrule it? Look again at what he said, of Pontiac, in Ashley and Buskirk.
The proof adduced by the Thoms establishes both an actionable trespass (see application of the Ashley Case in Herro v. Chippewa County Road Commission, 368 Mich 263) and a taking from them of a valuable property right; that of direct distinguished from a circuitously expensive right of access to the highway which fronts their farm with result of diminution of value of the farm. In the absence of contrary proof, and so far there is none, they have a clear right to recover in the court of claims.
The most formidable defense is posed by the attorney general’s counterstated question No 3. The question:
“Does the doctrine of sovereign immunity from tort liability bar recovery in an action ex delicto in the court of claims where damages resulting from a highway grade change are sought!”
The supreme courts of North Dakota and Alabama have met this question as I would meet it. The fallacious premise above is “immunity from tort liability,” citing McDowell v. State Highway Commissioner, 365 Mich 268; whereas and as presently found there has been a taking of plaintiffs’ property to the extent of the damage done thereto, for which the defendants became liable, impliedly ex contractu, by force of the cited constitutional mandate.
The specific defense—posed by said question 3— seems to have arisen first in Mayer v. Studer & Manion Co., 66 ND 190 (262 NW 925). There and in corresponding factual circumstances the court ruled (p 195):
“Since the Constitution guarantees the right to compensation, this obligation is in effect an implied contract on the part of the State to compensate for the damage which it has caused. The State has consented to be sued in cases ‘arising upon contract’ (CL 1913, § 8175), which includes implied as well as express contracts. Ford Motor Co. v. State, 59 ND 792 (231 NW 883 ).”
Some three years later the Mayer Case was followed in Jacobson v. State, 68 ND 259 (278 NW 652). There the property owner alleged in her complaint that the defendants (p 261) “tore up, rebuilt and reconstructed said Elk street and Ohio avenue as they pass in front of and to the side of plaintiff’s property and greatly and materially changed the grade of said streets so that plaintiff’s property was greatly damaged, plaintiff’s access to the streets destroyed, and greatly injured the value and usability of said property and greatly depreciated its value.” Demurrers to the complaint were sustained and the plaintiff appealed. The North Dakota supreme court, having cited and quoted from the Mayer Case, went on to apply it in these words (p 262) :
“Plaintiff does not claim the defendants had no right to change the grade. When they did so the result cannot be said to be a trespass, even though injury is done to the property. It becomes, if anything, a taking or appropriation of property for public use, and the State or a municipality, in taking private property for public use, acts in its sovereign capacity, and not as a trespasser. What is recovered is ‘compensation,’ which presupposes a contract, expressed or implied. It is not damages in the strict sense of the word. See Schilling v. Carl Township, 60 ND 480, 489, 491 (235 NW 126, 129, 131).”
The most recent North Dakota case is Donaldson v. City of Bismarck, 71 ND 592, (3 NW2d 808). There, on petition for rehearing, the defendant city raised this question (p 606):
“That this is an action for damages in tort and not an action in condemnation proceedings.”
The Court ruled (pp 609, 610):
“The provisions of section 14 of the [1889] Constitution are not restricted to eminent domain proceedings. They are applicable as well where private property has been taken or damaged without the consent of the owner, and where no condemnation proceeding has been brought. It is well settled that in such case the constitutional guarantee may he invoked, and the owner may maintain an action to recover just compensation for the property taken or the damage inflicted. [Citing authorities at length, including Mayer and Jacobson.] * * *
“In Mayer v. Studer & Manion Co. [66 ND 190, 195 (262 NW 925, 927)], this court said: ‘Where the State or an agency thereof acting in a sovereign capacity takes or damages private property for public use without legal exercise of the power of eminent domain, the aggrieved party may recover compensation for the property thus taken or compensation for the damage to his property thus inflicted.’ ”
Turning now to Alabama. The latest and most exhaustively written case there is Hunter v. City of Mobile, 244 Ala 318 (13 So 2d 656). The court ruled that where a municipality takes or injures private property for a public purpose without having instituted condemnation proceedings and without having paid just compensation to the owner, right of suit will lie upon a legally implied contract for payment of such compensation. Citing carefully assembled authority to the point, exemplified by the text of 4 Am Jur, Assumpsit, § 14, pp 503, 504, the Alabama supreme court said (p 322):
“We think the reasoning sound and entirely applicable to the instant case. When private property is either taken or damaged for public purposes, the Constitution is a guarantee to the owner that he shall have just compensation therefor. The municipality thus takes or injures the property with the knowledge of this guarantee and must be held to an implied agreement to abide by its terms. It is in a sense a constitutional contract made for the benefit of private property owners, and it is entirely reasonable to imply a contract on the part of the municipality in the instant case to pay the person injured a just remuneration for the damages sustained as a consequence of this public improvement, just as the Constitution guarantees.”
Of special significance is the recent addition to the text of American Jurisprudence. See 18 Am Jur, Eminent Domain, § 380, p 1022, and 1965 pocket supplement (p 189) showing insertion of the following at beginning of said section 380:
“In most jurisdictions constitutional provisions that private property shall not be taken without just compensation being made therefor have been held to be self-executing. Where this view prevails, it has been held that consent of the State to a suit against it arising under such provision is not a necessary prerequisite, and, in addition, many courts have held that in the absence of statutory remedies common-law remedies appropriate for the recovery of dam ages resulting from the taking or damaging are available to implement the self-executing constitutional provision.”
In view of the court of claims act (CL 1948, § 691.101 et seq.; CLS 1961, § 600.6401 et seq. [Stat Ann 1962 Rev § 27 A.6401 et seg.]), waiving the State’s immunity from suit, we are not called upon now to determine whether the constitutional prohibition against “taking” of private property for public use is self-executing, within the quoted new text. That text is pertinently meaningful nevertheless, as indicating judicial assurance that no one, not “even the State,” can “take” without having to pay according to the forms and remedies of law.
I concur in reversal and remand.
O’Hara, J.
(for reversal). I accept the opening statement in appellants’ brief except to note that where appellants use “may” in the last sentence of the subsequently quoted paragraph, I would substitute “is”:
“We would first like to make clear that this is not a case where appellants are before this Court seeking redress for a change of grade which would cause inconvenience or limited access to the highway. We agree that a change of grade which merely causes inconvenience or limited access to the highway may [is] not fee compensable.”
Thus I conclude that the issue in this case is not the same as that involved in City of Pontiac v. Carter, 32 Mich 164. Hence, I do not share Mr. Justice Souris’ view as to the necessity that it be overruled.
It is the facts in this case that adequately distinguish it from Pontiac, supra. The gross damage by reason of practical nonaccess to the highway, the rendering of the use of appellants’ motorized farm ing equipment virtually impossible, are among those facts. This is not a case of mere inconvenience and limited access. It is on its facts, as Justice Souris and Justice Black both conclude, a constitutionally prohibited taking of private property without compensation. Redress is available through the court of claims.
I vote to reverse and remand for further proceedings but I do not vote to overrule Poniiac, supra.
Smith and Adams, JJ., concurred with O’Hara, J.
See Article 2 of the Ordinance of 1787 (1 Stat 51); Const 1835, art 1, § 9; Const 1850, art 18, § 2; Const 1908, art 13, § 1; and Const 1963, art 10, § 2. The 1908 constitutional provision, effective when the events herein occurred, provided:
“Section 1. Private property shall not be taken by the public nor by any corporation for public use, without the necessity therefor being first determined and just compensation therefor being first made or secured in such manner as shall be prescribed by law.”
Compare this Court’s holding, in which Justice Cooley joined, with regard to the analogous situation of interference with the rights of a riparian owner to use of a waterway:
“Neither the supervisors nor the State can directly or indireetly appropriate the plaintiff’s use of the shore to public uses without compensation; and if even a lawful bridge and pier is constructed so near it as to preelude its profitable use he is entitled to compensation. If the bridge and pier is far enough from the doek so that it may be used but only with inconvenience, the same principle applies, and the question is merely of the extent of the injury.” Maxwell v. Bay City Bridge Company (1881), 46 Mich 278, 288, 289,
In addition, CL 1948, § 102.7 (Stat Ann 1949 Rev § 5.1812) provides whenever a street or sidewalk grade in a fourth class city be established, and an abutting owner improves his property with reference thereto, the grade may not subsequently be changed without compensation to the owner for injury thereby done him.
Lest there be misapprehension among the bench and bar regarding which rule of Carter we are renouncing, we state that we are overruling so much of the Carter opinion as subsequently has been applied by this Court to deny the owner of private property a remedy when public authorities, in the pjroper exercise of their power, alter the grade of a public way abutting upon such property regardless of the extent of the change in grade and its consequential effeet upon the use of such abutting property. Indeed, this was the very thrust of the opening paragraph in Justice Cooley’s opinion in Carter, which begins as follows (p 165) :
“The weight of authority against this action is overwhelming. In the leading case of the Cast Plate Manufacturers v. Meredith, 4 Durn & E T R 794 (100 Eng Rep 1306), which, like the one before us, was an action to recover damages suffered from raising the grade of a public way, Lord Kenyon states very concisely some of the reasons which preelude a private remedy in such a case.”
The only rational conclusion one can reach concerning the meaning of the Carter Case is that the Court was laying down a general principle, and as we have noted supra, our subsequent eases have treated the principle as a general one applicable to deny the existence of a legal remedy regardless of the extent of the grade change and its consequential effect upon abutting landowners so long as the change in grade be not accomplished negligently or by trespass. It is that rule, or general principle, which we would overrule so that even absent negligence or trespass, the owner of private property abutting a public way must be compensated whenever public authorities alter the grade of the public way in such a way as to constitute a taking of a property right.
While my Brother Black in his opinion demonstrates how Justice Cooley distinguished Carter in his opinions in Ashley v. Port Huron, infra, and Buskirk v. Strickland (1882), 47 Mich 389, Justice Black makes no effort to defend the rationale of Carter except to note that the then pertinent constitutional prohibition against the taking of private property for public use without due process and compensation was not argued to the Court. While Justice Cooley shall remain in the regard of all thoughtful observers of the American judicial scene one of the wisest and most skillful jurists produced by this nation, his preeminence should not immunize his opinions from critical scrutiny and when, on predictably remote occasions, even he may be found to have erred, our Court should not abdicate its duty to say so, forthrightly.
Cohens v. Virginia, 6 Wheat (19 US) 264, 399 (5 L ed 257, 290).— Reporter.
Justice Cooley -wrote in, Ashley, of Pontíac, that the plaintiff’s premises (p 297) “were in no way invaded.” Here, aside from all else, there is undisputed proof that the Thom farm actually was invaded when the grade of highway M 53 was altered from a height below—to an extreme height above—the original driveway whieh led from the farm to the adjacent highway. It was shown that a quantity of the “spoil,” from the grade fill, was pushed over the Thoms’ fence a lateral distance of some 2 or 3 feet and a longitudinal distance of about 100 feet; that “a lot of silt washed on our garden from the road” as a result of the change of grade; that approximately 200 feet of Thom farm fence was buried whieh the Thoms had to dig up and re-erect and, according to plaintiff Daniel B. Thom: “There used to be a natural wator course on the road right-of-way, and they filled that until it comes way over onto my property, and the water has eome baek onto me.”
See CL 1948, § 691.101 et seg., as amended (Stat Ann 1959 Cum Supp § 27.3548 [1] et seq.).—Reporter,
When the instant statement of claim was filed in the court of claims, plaintiffs had a right to rely upon a promise by the State, implied in law, “to pay all just damages sustained by plaintiff.” (CL 1948, § 611.1 [Stat Ann § 27.651]). For the current provision, see section 6655 of the revised judicature act (CLS 1961, § 600.6655 [Stat Ann 1962 Rev § 27 A.6655]).
Section 14 is North Dakota’s guaranty of just compensation' for the taking of private property for public use.
See, currently, CLS 1981, § 800.6401 et seg_. (Stat Ann 1962 Rev § 27A.6401 et seq.).—Reporter. | [
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Champlin, J.
This action is brought to recover damages for personal injuries .received by the plaintiff by reason of the alleged negligence of defendant in not keeping a railroad crossing in repair. On the 21st of July, 1884, defendant caused its track to be repaired and raised at a crossing of a highway known as the “ Tupper Crossing,” on what is called the “ Old Turnpike,” between the village of Grand Blanc and the city of Flint, in the township of Grand Blanc, Gene-see county. The repair was made necessary on account of a depression in the track at that place, and the work consisted of raising the ties and rails, and placing ballast beneath; raising the track some four or five inches immediately at the crossing, and gradually less in each direction. The work was done by the section men under the personal supervision of the section boss, Frank Dunn. They began in the morning at a point'about ten rods south of the crossing, and raised the track until they reached the crossing, and then tore up the plank and raised the crossing. They also raised the track for a distance of about forty feet north of the crossing. The direction of the railroad track at the crossing was about north 22 degrees west, and that of the “ Old Turnpike ” about north 40 degrees west, making the angle at the crossing quite acute.
Shortly after ten o’clock in the forenoon, the plaintiff, who lived in the township of Grand Blanc, drove up from the south to the crossing, with a horse attached to a light single buggy, on his way over the “ Old Turnpike ” to the city of Flint. At that time (according to his testimony) he found five or six men at work on the crossing. The planks were taken up and the men had a long lever under the rails raising the track. In order to loosen the ties the dirt near them had been removed and thrown outside the rails into the highway. The plaintiff got out of his buggy, and led his horse safely over the track, and went on to Flint, about seven miles north. After transacting his business at Flint, the plaintiff started back to Grand Blanc shortly after 1 o’clock in the afternoon, and drove directly back the same way in which he carne, arriving at the crossing in question about two, o’clock. At that time (as he says in his testimony) he found the men tamping the ties which had been raised north of the crossing. The planks of the crossing were still removed, and the rails and ties were raised two or three inches more than they were when he crossed before, making them about three or four inches above the natural surface of the road-bed, and leaving the ties out of the ground, or exposed, about half of the tie. Only a portion of the dirt had been replaced under the ties, and the tops of the rails were about seven or eight inches above the top of the dirt inside the rails, and the dirt was a little lower on the outside.
The plaintiff on his cross-examination testified as follows:
“ The mare is rather of a nervous temperament — quick. I considered her entirely manageable.”
Question. Was she hard-bitted ?
Answer. Well, I had considered her so previous to that time, or about that time. I was about four rods from the railroad track when I got out of the buggy; I began to descend the grade in the road. I got out because I knew from experience that vehicles were liable to slide on those rails. I have been turned over on that crossing with the planks in, several years before, and that is the reason I got out and led my horse over. On my way home I did not speak to Frank Dunn or any of the men until after the accident. I saw them before I got out of the buggy. They were near enough so I could have called them. I did not call Frank and ask him to put in some plank so I could get over, because I didn’t consider it was necessary. I asked him in the morning if I could get over there with safety, and he told me he thought I could. Others had crossed. I had my own experience going down to guide me coming back. Coming to Flint, I went over substantially the same angle that I crossed going back, as near as may be. The wheels did not slide when I was coming towards Flint.
Q. Then you first got out of your buggy, as I understand, back about four rods from the track, with your right hand behind the chin of the horse, or behind the lower jaw of the horse, you took both reins in your right hand and walked forward, leading your horse ?
A. I think I did. I think — I am sure I did hold.
Q. Your left hand hanging loose at the time?
A. Yes, sir. I walked down to the rail at a natural walk. When I came so that my wheels were about to strike the rail I turned and looked back to see how they were going to strike. I still had hold with my right hand. When I looked back to see how the wheels were going to strike, the forward wheels cleared the west rail all right. I could not say whether the hind wheels had got over before the forward wheels struck the next rail. I could not tell the position of the hind wheels, but I saw the front wheels between the rails. I did not see the front wheels when they struck the second rail. I was looking directly at the mare at that time. She had not appeared to be frightened or nervous at all up to this time. She was clear of the rail at that time. I don’t know that I could swear positively whether it was the hind wheel or the front wheel that slid, but from the position of the shaft against my side, and the sound, I should say it was the forward wheel. I had no time then to turn. In fact, I could not look back after she made the first spring.
Q. When the wheels slid on the rail it made a creaking or squealing sound ?
A. Yes, sir ; a grating.
Q. Sharp sound ?
A. Yes, sir. Like the rubbing of one piece of metal on another.
Q. It was that sound that frightened the mare ?
A. That, together with the shaft striking her flank — the shaft or thills striking her flank.
Q. If she had been going pretty slowly over there, the shaft could not have struck her flank, with any particular force ?
A It would have made a pretty good pressure against her side. The shafts did not come against her so when the wheels crossed the first rail, because the wheels did not slide there. It was the sliding that brought the shaft against her. I held up my speed in crossing over the rail. I recollect distinctly of holding up as the forward wheel struck the first rail, but whether I had increased in speed before I struck the other rail, I cannot say.
Q. Didn’t you hold your horse back, so that as the wheels struck the rail it would rise slowly over it and come down ■slowly, without coming down with a ca-chunk ?
A. I didn’t think of that point. My object— I held up •a little as it struck the first rail, to prevent the sliding.
Q. And then it didn’t occur to you as to the second rail as it had at the first ?
A. No, sir. As I got the horse over I remember of thinking that I was safe. When the wheels slid and the noise was ■made the horse jumped; she jumped a little sideways from •me. I still held on with my right hand. The first spring • she made I grabbed with both hands, but soon after had to let go with one hand to keep my position. I found I could .not keep my feet, and I put one arm over her neck — that was my right arm. I did not do it at that time with a view • of throwing myself onto her back. I did that to keep my feet and keep from being thrown down. I did not have hold • of her mane; I had my arm over her neck. She is a low mare. I made a desperate attempt to stop her, and found that I was not gaining or succeeding in stopping her — was not checking her speed — and I then attempted to get upon her back, and I found that I could not do that; and as I came down I struck the ground with my feet, and made a desperate effort by throwing my feet ahead as far as possible to •check her; -and at the same time I calculated if I didn’t check her that I had got to fall, and would throw my head clear of the wheels. If I had let go of her when she first jumped she would have cleared me, but the buggy would not. That was my first thought after the first spring.
Q. When she sprang a little from you, if you had made ■one step backwards, away from the road, don’t you think you would have cleared the buggy ?
A. I should not want to chance it. I did not figure out the position of the buggy at that time to see whether it was sliding towards me or away from me. I know now that it did certainly slide from me. I was on the left-hand side of the horse. At the time of the slide, I had hold of both bits with my right hand. Let me state one thing: that I supposed the buggy was turned over at that time, from the sound and the position of the shafts — from the feeling to me of the shafts as they slid against her body. I supposed the buggy was tipped over towards me or towards the left-hand side, which would have been the case had it tipped over there. I was going south-east towards the village. The road was at .such an angle with the rails that it slid towards the village; and in tipping over it would have turned towards the left and- went on the side towards which I should be, which I supposed was the case. It was some five or six years before this that I had the other accident at this place. - It did not come from the same cause. That came from the cutter shoe following up the rail instead of following the horse. It was the same cause that this was, only this was a cutter, and the rails were a little above the planking. The shoe of the cutter slid upon the rail, and tipped me over quicker than a flash. I went in there upon a walk; but I got right onto the crossing and saw a train of cars about four rods above me, and I then gave the horse the rein. He was frightened at the cars somewhat, and jumped across with a good deal of spirit, and I was somewhat surprised to find myself upon the ground and the cutter at one side. I tipped over towards the left. I was going towards Grand Blanc.
Q. If you had not thought that it was entirely safe to cross at this time, at this place, you would have asked Frank to-put in the plank, would you not ? ,
A. It didn’t occur to me to ask him to put in a plank. If I had taken the road from Flint running east on the north side of section nine to the northeast corner of section nine, and then.gone south, I would have reached home without having to cross at this crossing. It didn’t occur to me that there was any occasion for avoiding that crossing. I supposed the plank would be in, as they were working at the crossing when I came down — right at the crossing.
Q. When you got there and found they were not in, yon still did not think there was any danger about it, did you ?
A. I thought there was chances of the buggy sliding on chose rails.
Q. If you had supposed there was any danger, how long a job would it have been for you to have unhitched the horse and led her over, and asked Frank to come and help you over with the buggy ?
A. Perhaps ten or fifteen minutes. I didn’t suppose but that I could have gotten across there in safety. If I had not, I should not have.undertaken it.”
Counsel for the defendant requested the court below to 'take the case from the jury and nonsuit the plaintiff, for the reasons: (1) That the plaintiff could not recover, because-his declaration did not allege that he was himself without fault or negligence; and (2) that, under the pleadings and proofs, giving them the most favorable construction for the plaintiff which the law would warrant, the plaintiff was not entitled to recover.
But the court refused to charge as requested, and the jury found a verdict for the plaintiff and awarded liim'$500 damages. The exceptions to such refusal are covered by the first and second assignments, of error.
The only averment in the declaration with reference to the plaintiff’s exercise of due care is the following:
“ And the plaintiff says that on, to wit, the twenty-first day of July, 1884, while he was necessarily and lawfully riding and driving along said highway, and had approached said crossing with his horse, — which was a horse well trained and broken, and of ordinary gentleness, — at about the hour of two o’clock in the afternoon of that day he alighted from his vehicle, then attached to said horse, and took said horse by the bits and attempted to lead him gently and carefully over said railroad at said crossing, and that while the said vehicle, attached to said horse, was passing over the rails of said railroad there, said horse became frightened by reason of said defective condition of said crossing, and violently ran a long distance with great speed, to wit, for the distance of twenty rods, and dragged the plaintiff along with said horse, and finally threw the plaintiff prostrate upon the ground, and said vehicle then and there passed over the legs and body of the plaintiff, and greatly bruised and injured him, and he thereby became sick, sore, lame and disabled for a long period of time, to wit, for six weeks, and still is sick, sore, lame and disabled by reason thereof, and has suffered great pain in body and mind, and by reason thereof was disabled from carrying on his business, which is that of a farmer, and has sustained great loss thereby; wherefore the plaintiff says that he is injured and has sustained damages to the amount of one thousand dollars, and therefore he brings suit.”
In actions of this kind the plaintiff must allege in his declaration and prove upon the trial that the injury complained of was occasioned by the negligence of the defendant ; specifying with particularity .the duty and the breach of duty out of which the negligence arose, and also averring that the plaintiff was himself in the exercise of ordinary care, and did not by his own negligence contribute to the injury.
Does the averment in the declaration that plaintiff “took the horse by the bits, and attempted to lead him gently and carefully over said railroad at said crossing,” constitute an averment that the plaintiff wate in the exercise of ordinary care, and that he was free from negligence on his part which contributed to the injury? I think it does not. It merely avers an attempt to lead the horse carefully and gently over the railroad. It does not aver that he did what he avers he attempted to do. The plaintiff’s own testimony shows the distinction clearly. The danger which he says he apprehended and which he should have guarded against, was the liability of the wheel of his vehicle to slide when it came in contact with the rail, and he says when the wheel struck the first rail he held up a little to prevent the sliding, but when his horse got over the second rail he thought he was safe, and it did not occur to him to go slowly over the second rail as he did the first. Had he exercised the same care in crossing the second rail he did in crossing the first,the probabilities are the accident would not have happened. His failure or neglect to do so was negligence, and the immediate cause of fright to the horse, and consequent injury. It is plain, therefore, that the averment in the declaration is not equivalent to that of absence or want of negligence on his part which contributed to the injury. The defect, however, is one that may be cured by amendment upon another trial, and as the whole merits of the case were gone into and all the evidence is-returned, it is proper that we should consider the second objection urged against the recovery in the court below. This relates — -first, to the negligence of the defendant; and second, to the contributory negligence of the plaintiff. The declaration states the negligence of defendant as follows:
“ That on, to wit, the twenty-first day of July, 1884:, at about ten o’clock in the forenoon of that day, the said defendant caused to be removed all the plank which, before and up to that time, had been laid between the rails of said railroad at said crossing, and also removed all the planks upon each side of the rails at said crossing ; and also dug ont and removed the ballast, gravel and dirt at the approaches to said crossing, and also the ballast and dirt which before that time had been placed between the rails at said crossing, leaving the rails and ties of said railroad elevated above the highway, so as to materially obstruct the passage over the same; and negligently, wrongfully and unnecessarily permitted the said plank, dirt and ballast at said crossing to remain so removed and in a condition perilous to public travel for a long time, to wit, for the period of four hours, and until about the hour of two o’clock upon the afternoon of said day; and did not restore or place said crossing, or any part thereof, in a condition fit or safe to cross over the same with teams or vehicles ; and did not, between said hours of ten and ■ two o’clock, provide any means whereby passers-by, and travelers with teams and vehicles, conld safely pass over the same, as it ought of right to have done; and negligently left said crossing and permitted the same to remain during said period of four hours, in said dangerous and unsafe condition, and in a state which would naturally frighten horses of ordinary gentleness when passing over the same ; and in a condition naturally tending to cause and occasion accident and injury to passers-by with vehicles and teams.”
The evidence of the plaintiff showed that on his return from Mint the men engaged in working upon the track were so at work six rods from the crossing towards Flint; and upon cross-examination the defendant’s witness Brown, who was civil engineer and road-master of the company, testified that if such was the distance it was practicable to put some plank down there, after having tamped in between the ties, before going six rods away. The section boss testified that they commenced raising the track about ten o’clock in the forenoon, at a distance of about ten rods south of the crossing, and raised it about forty feet north of the crossing.
The defendant had the right to raise and repair its track at the “ Tupper Crossing,” and to remove the plank for that purpose. It owed a duty to the public, in the exercise of this right, to not obstruct the travel upon the highway longer than was reasonably necessary to accomplish the purpose. The defendant’s negligence upon this branch of the case, upon this disputed testimony, became a question which was proper to be submitted to the jury. But this alone, resolved in plaintiff’s favor, would not entitle him to a verdict. He must also show that he himself was in the exercise of ordinary care, and free from any negligence which contributed to the injury. Upon this question there is no dispute in the testimony. The only person who testifies tending to prove carelessness on the part of the plaintiff is the plaintiff himself. If his testimony shows that the injury complained of was occasioned in part by his own carelessness, he cannot recover. Upon this point the court instructed the jury as follows :
“ But, though the work was not repaired at two o’clock and completed, if the plaintiff had knowledge of its dangerous condition, and with that knowledge, took the risks of getting across, without calling upon the servants of the company to aid him, and in the attempt to do so was injured, he cannot recover in this action against the defendant. To entitle him to recover, it is not alone sufficient for him to prove that the defendant was in fault or guilty of negligence, but he must also by proof show you that he was not himself guilty of negligence or want of due care. If he, by his deliberate act, attempted to cross the track in the condition in which it was, and which was necessitated by the repair of the road, and was not unreasonably delayed, and he suffered injury thereby, then he cannot recover if his own conduct contributed to the injury complained- of.” '
And again :
“But if the party complaining had knowledge or information of the dangerous condition of the road, and, notwithstanding such knowledge or information, coolly and deliberately takes the risks and chances, and while so taking them his horse starts and runs away from him, he cannot recover. He must, in order to recover, not only have been injured by the negligence of the defendant, but he must be free from negligence or want of due care on his part. If his negligence or want of due care contributed to the injury complained of, he cannot recover.”
We think the law thus laid down in the charge was correct as applied to the facts and circumstances of this case, but the error the learned circuit judge committed was in not directing a verdict for the defendant. The plaintiff’s testimony, above quoted, shows that he had knowledge of the dangerous condition of the track, and with that knowledge took the risk •of getting across; he knew of the particular danger from the liability of the wheels to slide when crossing the rails at that angle, and his evidence is conclusive that after he had carefully crossed the first rail with safety by exercising the requisite care, he neglected entirely to use due care in crossing the second rail, and such negligence was the proximate -cause of the sliding of the wheel against the second rail, which frightened the horse and brought about the injury complained of.
The learned circuit judge should have charged, as requested by the defendant, that, upon the whole testimony, •the defendant was entitled to a verdict. In denying this request he said that he was always loth to take the case from the jury, where any facts are involved in the controversy. But upon this branch of the case there were no facts involved, in the sense that there were any facts disputed. It rested upon plaintifi’s own statement, and, giving to it the most favorable construction for him, it plainly showed that he was himself negligent.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Champlin, J.
Plaintiff brought ejectment to recover possession of forty-five acres of land in the township of Ogden, Lenawee county, which he claims in fee. The defendants are the widow and children of George Cunning ham, who died upon the premises in question on the 22d day of February, 1883. The premises were purchased by B. F. Cunningham, the father of George, from one Joel Skinner, in 1865, and the paper title remained in him until March 10, 1883, when he conveyed the property to the plaintiff in this suit. It is claimed by the defendants that they are entitled to hold the land as the widow and heirs-at-law of George Cunningham, and that be acquired title thereto by fifteen years’ adverse possession against B. F. Cunningham. The plaintiff claims that George Cunningham went into possession in 1867 or 1868, as the tenant of B. F. Cunningham, and so occupied to the time of his death, and that his possession was not adverse.
All the questions presented by the assignments of error arose upon the ruling of the court in the reception or rejection of evidence. The first and third assignments .of error relate to the admission of testimony showing admissions made by B. F. Cunningham while he held the legal title, in disparagement of his title, while George was in possession of the premises and before plaintiff purchased. The testimony was admissible. Green! Ev. §§ 181, 189. The second and fourth errors alleged relate to statements made by George Cunningham, the deceased, in his life-time, while in possession, explaining the nature and character of his possession. The testimony was admissible for the purpose of showing the character of the possession, and that it was adverse. The intention with which possession is held constitutes the very essence of adverse possession, and the assertion of the occupant with reference to the nature of his possession is competent evidence to prove intent. Bower v. Earl 18 Mich. 367.
The other assignments of error deserving of attention relate to the rejection of the testimony of B. F. Cunningham with respect to facts which, if true, were equally within the knowledge of George Cunningham, the deceased. The court held the witness incompetent to testify to such facts, for the reason that within the meaning of the statute he was a party to the suit. The ruling was correct. The witness had executed to plaintiff a warranty deed of the land in question. He was under covenant to sustain the title, and the suit was in effect his suit to try the title to the land. If not within the express letter, he comes within the meaning and spirit of the statute, and is precluded thereby from testifying to facts equally within the knowledge of the deceased. We discover no errors in the record, and the
Judgment is affirmed.
The other Justices concurred. | [
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Champlin, J.
This case was before this Court in the April term, 1882, and is reported in 48 Mich. 164. The declaration as originally filed contained three special counts, and the common counts in assumpsit. The second and third special counts and the common counts were abandoned on the trial, and the plaintiff elected to rely entirely for a right of recovery upon the first special count of his declaration. This announcement was made after the plaintiff had introduced his evidence, and after one witness had been examined on behalf of defendant. There was no formal entry of discontinuance as to the two special and the common counts, and no formal amendments to the declaration filed. The trial proceeded and concluded upon the announcement and election made by counsel for plaintiff in open court, and resulted t, in a general verdict for the plaintiff, upon which judgment/ was 'rendered.
The record is brought to this Court upon a case made after judgment. The errors assigned are based upon a variance between the proofs and the first count of the declaration, and in the charge of the court to the jury respecting the application of the statute of frauds to the facts of the case, the measure of damages, and the subsequent actiorf of the court in restricting and applying the verdict of the jury to the first count of the declaration. The first count of the declaration set forth an agreement in writing entered into between the parties, and dated August 31, 1872, as follows:
“ Agreement made and concluded this thirty-first day of August, 1872, between Edgar L. Gray, of Newaygo, Michigan, party of the first part, and William Barton, of the town of Big Prairie, and State aforesaid, party of the second-part, witnesseth: That the said William Barton, party of the ' second part, for the consideration hereinafter mentioned to be performed by the said party of the first part, does hereby covenant and agree with said Gray as follows, to wit: To cut, haul, deliver, and float two hundred and fifty thousand feet, board measure, of good, sound, merchantable pine saw-logs, in the south branch of the Pere Marquette river; said logs to be cut from off the undivided one-half of southwest one-quarter of northwest one-quarter, and west one-half of southwest one-quarter, section 13, town fifteen north, range fourteen west, and so put afloat' in said stream on or before the first day of November next, and, if sufficient water for that purpose, to run said logs during said month of November to the junction of said stream- with the Beaver creek, on section 11 in the town aforesaid, with an- ample force, and as soon after the first day of said month of November as the same can be done.
Secondly. To cut, haul, and deliver afloat in said first-mentioned- stream the balance of the timber on the land above described, cut up into saw-logs of the kind and quality first above described, and run the same into the main river below the junction of Beaver creek and said first mentioned stream, with an ample force of men, as early in the spring of 1873 as the water will permit it to be done.
Thirdly. To cut, haul, and deliver afloat all logs that can be cut from off of the northeast one-quarter of southeast one-quarter of section fourteen, town fifteen north, range fourteen west, that are sound and merchantable, and from timber that is now down, and on the east side of said first mentioned stream, and run the same out into the main river below the junction of said stream with an ample force of men, as early in the spring of 1873 as the water will permit it to be done.
Fourthly. To cut, haul, and deliver all logs that can be' cut from timber, now down and within forty rods of Beaver creek, and on sections fourteen and fifteen, and put afloat in said creek on or before the time for driving logs, in the spring of 1873.
Fifthly. To cut, haul, and deliver afloat all logs that can be cut from off of the undivided one-half of south one-half of southeast one-quarter, and southeast one-quarter of southwest one-quarter, section ten, town fifteen north, range fourteen west, and the whole of the north one-half of southeast one-quarter of section ten, town fifteen north, range fourteen west, in the main south branch of Pere Marquette river, and below its junction with the Beaver creek on or before the time for driving said logs, in the spring of 1873.
Sixthly. To cut, haul, and deliver afloat in said streams all the logs that can be cut from off of said section fourteen and section fifteen, in the town aforesaid, at the rate of two million feet, board measure, every winter, and as much more as said Gray and the other owners of said timber shall desire. All logs to be long” butted,'when necessary, and are to be free from butt-shakes, and to be otherwise free from ring-rot, or any other defects which would render the same unmerchantable in quality. No logs cut from off-of said lands on said section thirteen to scale less than twelve inches in diameter at the small end, scaling measurement, and the balance of the timber to be cut as aforesaid to scale not less than ten inches in diameter at the small end, and deductions to be made in all crooked logs so as to make them straight, to be measured or scaled by a competent person that may be selected by the said parties to this contract, and in accordance with Scribner’s scale; said Barton to board the scaler and his wages to be borne mutually by the parties hereto. All logs to be well and properly cut, and of the lengths directed by party of the first part provided said lengths shall not exceed 22 feet, all logs to be plainly marked with the recorded mark of the party of the first part, and the side mark of party of first part to be plainly cut with an ax on both sides of the log, near the top end, and all logs scaled and marked with the side and end mark of said first party, and left on the bank, skidways or in the woods are to be paid for only when they shall be delivered afloat as aforesaid, and if they have depreciated in value by such neglect of said Barton he shall pay said Gray the amount of such depreciation. All damages to logs in putting down railways of slides to be made good by said party of the .second part. It is also understood and agreed between the parties hereto that in case of failure to put said logs in said streams, and put the same afloat in time for the main drive at the time hereinbefore stated, then the said party of the second part is to drive the said logs free of all expense to the party of the first part, until the main drive be reached; and all logs so cut, scaled, marked and delivered afloat, and at the points as hereinbefore provided, are to be removed by the said party of the first part, and to be paid for at the following rates:
For all logs taken from ofí of said lands on said section 10, and delivered afloat as aforesaid, at the rate of two dollars and seventy-five cents per thousand feet, board measure. For all logs taken from timber on said section 13 and down timber on n. e. \ of s. e. ^ of said section 14 and delivered afloat in the main south branch of the Fere Marquette River, as aforesaid, the sum of four dollars per thousand feet, board measure. For all the balance of pine timber on section 14 and 15 in the town aforesaid, of which said Gray is part or sole owner,, cut up into saw logs and delivered afloat in either of said streams, the sum of two dollars and fifty cents per thousand feet, board measure.
The said party of the first part agrees to pay to said Barton, for logs to be delivered as aforesaid, one thousand dollars on or before the twentieth day of September, one thousand dollars on or -before the first day of November next, and then the amount of one dollar and twenty-five cents per thousand feet on the fifteenth day of each of the months of January, February, and March, 1873, as fast as the logs cut from off of said section 10 are scaled and delivered afloat as aforesaid, and the balance of said price of fifty cents per thousand feet, board measure, on the first day of July, 1873, and also the amount of two dollars per thousand feet on the fifteenth day of each of the months of January, February, and March, 1873, for logs cut from off of said lands on said sections 13 and 14, and run as aforesaid, and the balance on or before the first day of August next. The said William Barton also agrees to proceed next week with a sufficient force of men and teams to clear said south branch of Pere Marquette River from east line of said land on section 13, aforesaid, to its junction with Beaver creek, and have it well cleared for the running of logs within thirty days from date. All logs put in by said Barton, in either of the streams aforesaid, in any winter succeeding the coming one, and put afloat in said streams, said Gray is to pay for at the rate of two dollars and fifty cents per thousand feet, board measure, for his share of said logs, and as fast as said work progresses. If required by said Gray, said Barton is to secure said Gray for advances, and not to sub-let his contract, and any substantial non-compliance by said Barton of the agreement by him made shall make a forfeiture of the same at the option -of said Gray.
In witness whereof, the parties to this contract have hereunto set their hands and seals, the day and year first above written.
Edgar L. Gray, (l. s.)
Wm. Barton.” (l. s.)
Then the declaration alleges the mutual promise of performance of the contract by the parties; and then alleges that the defendant was the owner in fee of the undivided half of the lands described as being upon sections 14 and 15, mentioned in the contract, and [that it] is the same land and timber referred to in paragraph 6 of said agreement; that he entered upon the performance of the contract and performed all the work and labor mentioned in the contract by him to be performed, to wit, for the space of five years then next following, and was always ready, willing and able to perforin fully and in all things the said contract on his part to be performed; yet the defendant, before the pine timber on sections 14 and 15 had all been hauled and delivered afloat in the streams, “'and while a large quantity of pine timber, to wit, eight million feet, board measure, of pine timber still remained uncut, to wit, on the first day of December, 1877,” wrongfully and injuriously discharged the plaintiff from the performance of such agreement, and the said promises and undertakings by him to be performed, and hindered and prevented the said plaintiff from the performance thereof, whereby he wholly lost and had been deprived of all the benefits, profits, and advantages which he otherwise might and would have derived from performing the contract.
The defendant interposed the plea of general issue, and gave notice of set-off; also of recoupment; and also that the owners of the other undivided half of the lands to be lumbered absolutely forbade defendant from cutting and removing any of the timber on sections 14 and 15 after the year 1875; that said plaintiff had a like written contract to cut the pine timber on sections 14 and 15 with the other undivided owners, and in the year 1875 he released them therefrom.
At the trial the plaintiff introduced in evidence the contract set out in the first count of the declaration, and also evidence tending to prove that he entered upon the performance of the contract, and continued during the logging season of 1872-73, 1873-74, and 1874-75; and in the fall of that year, by mutual arrangement between the parties, the performance of the contract was postponed one year; that at the expiration of this time he offered to perform and was forbidden by defendant to cut the timber, and from- that time he abandoned the contract, and never after offered to perform ; that after such refusal he entered into a contract with defendant and other parties to cut and put in logs from other lands for three dollars a thousand feet, which job he performed and completed in the spring of 1877.
The reasons stated by defendant why he did not wish the plaintiff to go on and cut the timber under the contract on each occasion was that the timber was not suitable for the then existing market, being too small and of too poor quality; that the price the lumber brought left him nothing for stumpage. No'offer was made by plaintiff to perform his contract in the season of 1877-78, and on the 28th of March, 1878, this suit was commenced.
Such being the substance of the plaintiff’s proofs, the defendant claims that there was such a material variation therein from , the contract as alleged, as entitled him to an instruction from the court that he was entitled to a verdict from the jury.
The record*discloses that the main point of contention during the trial, and to which the proofs of the respective parties were directed, was whether the oral agreement between the parties was merely for a postponement of the performance of the contract so far as it related to the work to be done on sections 14 and 15, as claimed by the plaintiff, or whether the agreement was that the work furnished by defendant and others upon other lands was to be in lien of that to be performed under the contract, as claimed by the defendant. The facts bearing upon each of these claims, with the law applicable thereto, were by the court submitted to the jury, and they having returned a verdict for the plaintiff, that question of fact must be regarded as settled in his favor.
In this Court we are obliged to deal with the record as the parties have made and presented it to us. It does not appear from the record that any requests were presented on behalf of the defendant for specific instructions to the jury. Undoubtedly it is the duty of the court to present to the jury the substantial issues in the cause, and to state to'them the principles of law governing the rights of the parties, 'whether any specific instructions are requested by counsel or not. This duty was performed by the trial judge in this ease. His instructions covered all branches of inquiry under the issues made by the pleadings; and if counsel desired more full or specific instructions upon any particular point, it was his duty to frame a special request to the court to charge as desired. Omitting or neglecting to do so, he will be deemed to be satisfied with the sufficiency of the instructions as given, and an exception based upon the want of sufficiency on particular points of law cannot be assigned as error. This disposes of the third, fourth and fifth exceptions to the charge, and the assignments of error based thereon.
The first exception is grounded upon a variance between the allegations of the declaration and the proofs. The declaration alleges that the plaintiff performed the contract for five years and was discharged from performance by defendant in December, 1877. The proof showed0 that plaintiff had performed for three years, and a readiness and offer to perform in accordance with its terms; but that, at defendant’s request, performance was postponed a certain time, at the expiration of which plaintiff again offered to perform, which performance defendant refused to permit. It is claimed that this variance is fatal to a recovery. No objections were made to the introduction of the proof during the trial, and no request was made to the court, based upon such variance, for any instruction to the jury, or motion made to obtain a ruling of the court thereon; but, after all the evidence was submitted to the jury, and the charge of the court given based upon the evidence introduced, the exception was taken to the charge because of such variance. The question, raised for the first time in this manner, comes too late. M’Hardy v. Wadsworth 8 Mich. 349; Stone v. Covell 29 Mich. 359. Moreover, under the charge of the court and finding of the jury, there was no valid contract to postpone performance, and the evidence was only relevant to show that such postponement was at defendant’s request, by which he was estopped to deny performance during that time. Cummings v. Arnold 3 Met. 486; Hickmann v. Haynes L. R. 10 C. P. 598.
The second exception to the charge is as follows : “ The defendant excepts to so much of the charge as assumes that there is any evidence in the case tending to show that a parol agreement, alleged to have been made in 1875, for an extension of the time of performance of part of the written con tract between the parties could not be performed in one year from the making thereof, and to such portions of said charge as submit that question to the jury.” It is the province of the court to construe, interpret and determine the legal effect of all contracts. When the contract is in writing and its execution duly proved, the court must determine the legal effect of the language used. When it is verbal, the question of what the terms of the contract are, as established by the evidence, is for the jury. In the latter case the court must still determine the legal effect, and his instructions to the jury must necessarily be based upon facts assumed, and upon the existence of which the jury are to find from the evidence. The record shows that there was evidence tending to show that there was a parol agreement made in 1815 for an extension of the time of performance of the written contract, and that in the mean time he was doing work for the defendant upon other land, and defendant’s testimony tended to show that this work was a substituted performance of the contract, and was in lieu thereof. What the agreement was, for postponement and doing other work, was for the jury to determine. The contract set out in the declaration, and proved upon the trial, was under seal. It was not, however, a contract which is required by the statute of frauds to be in writing. The only clauses in the contract which give rise to any uncertainty are the following: “ To cut, haul and deliver afloat in said streams all the logs that can be cut from off said section lé and section 15, in the town aforesaid; at the rate of two million feet, board measure, every winter, and as much more as said Gray and the other owners of said timber shall desire. * * * All logs put in by said Barton in either of the streams aforesaid in any winter succeeding the coming one, and put afloat in said stream, said Gray is to pay for at the rate of two dollars and fifty cents per thousand feet, board measure, for his share of said logs, as fast as said work progresses.” Although reference is here made to logs which may be put in “ every winter,” and in “ any winter succeeding the coming one,” yet there exists a contingency which, under the contract, permits the job to be fully completed within a year. That contingency may be fulfilled either in case the quantity of pine does not exceed two million feet, or in case Gray and the other owners should desire the whole quantity to be put in within the year. The statute of frauds only applies to contracts which by their terms are not to be performed within a year from the making thereof, and not to agreements which in the absence of express stipulation to the contrary, may possibly or probably not be performed within the year,or which depend upon a contingency that may happen within the year. This was the view taken of this contract when the case was here on a former occasion (48 Mich. 164), and no reason is pei'ceived for changing the opinion then entertained. It was a maxim of the common law that no contract or agreement could be dissolved except by matter of as high a nature as that which first made it obligatory (Broom’s Legal Maxims 407); and based on this maxim, there are many authorities which hold that a contract under seal cannot be varied or discharged by a mere parol agreement while the contract itself remains entire and unbroken. Wentz v. Dehaven 1 Serg. & R. 312; McMurphy v. Garland 47 N. H. 316; Kuhn v. Stevens 7 Robert. 544; West v. Blakeway 2 Man. & G. 729; Cordwent v. Hunt 8 Taunt. 596; Eddy v. Graves 23 Wend. 82; Spence v. Healey 8 Exch. 668; Sinard v. Patterson 3 Blackf. 353; Miller v. Hemphill 9 Ark. 488; Patrick v. Adams 29 Vt. 376. In modern times the attaching of a seal to a signature is not regarded with that reverence which was formerly the case, and when the Legislature enacted that a seal or wafer was unnecessary, but that a scroll or other device should be sufficient, the solemnity attending the execution of such contract vanished; and when the Legislature further provided that no instrument should be held invalid for want of a seal, and it became under the statute mere prima facie evidence of consideration, the affixing of seals, except to instruments required by law to be under seal be•came of no practical importance. Consequently, it has been held by this Court that parties who have made written contracts may vary them afterwards as much as they please by parol, if the nature of the agreement is not such that the law requires them to be in writing. Seaman v. O'Hara 29 Mich. 66; Westchester F. Ins. Co. v. Earle 33 Mich. 152; Roger Williams Ins. Co. v. Carrington 43 Mich. 256.
Of course the principle above stated implies that the subsequent agreement by which the original contract is varied must be a valid and binding agreement between the parties. It must be based upon a sufficient consideration, and must not itself be void under the statute of frauds. If it lacked the elements of a valid contract, it would be a nudum pactum and not binding upon either party, in which case the original contract would remain intact. It was proper, therefore, for the court to instruct the jury, as he did in this case, as follows : “ If the arrangement was simply for a postponement' of the execution of the contract, and the execution of the contract, under the terms of the postponement, might have been accomplished within one year from its date, by its terms, the plaintiff cannot in this action recover because in that case the contract which he has made, — which is made by the subsequent agreement, — is a different contract than that upon which he declares and seeks to recover at your hands. If, upon the other hand, the contract by its terms,- — by the terms of the oral agreement between the parties, — the contract alleged to have been made could not be.performed within one year from the date of the oral agreement in relation to it, it would not be good as a contract. It might be treated by the parties as a waiver of the right upon either side to insist upon the immediate performance of the contract, but it would not be good as a contract to take the place of the original contract.” Under this charge the jury, in returning a verdict for the plaintiff, must have found that the oral arrangement between the parties relative to the extension of the time of performance could not, by its terms, be performed within one year from the time of the making thereof. It was therefore void under the statute of frauds applicable to such agreements, and as a necessary consequence, was a mere nullity, and could not be used for any purpose. Chamberlain v. Dow 10 Mich. 319; Hall v. Soule 11 Mich. 494; Holland v. Hoyt 14 Mich. 238; Grimes v. Van Vechten 20 Mich. 410; Scott v. Bush 26 Mich. 421.
The defense^urged is not open to the defendant for another reason. No person ean complain of an injury caused by the act or conduct of a party to which he has consented ; and no one who causes or sanctions the breach of an agreement can recover damages for its non-performance, or interpose it as a defense to an action upon the contract. Shaw v. Lewistown Turnpike Co. 2 Pa. (Pen. & W.) 454; M'Kee v. Miller 4 Blackf. 222; Young v. Hunter 6 N. Y. 203; Boutwell v. O'Keefe 32 Barb. 434; Hart v. Lauman 29 Barb. 410; Pike v. Butler 4 Barb. 654; Mayor &c. v. Butler 1 Barb. 325; Stone v. Sprague 20 Barb. 509; French v. New 20 Barb. 481; Jewell v. Blandford 7 Dana 472; Smith v. Edmunds 16 Vt. 687; M'Combs v. M'Kennan 2 Watts & S. 216.
The errors assigned upon the exceptions taken to the charge of the court are overruled.
Several errors are assigned upon alleged errors of the jury in finding facts in favor of the plaintiff, or that their finding was against the weight of evidence. It is needless to say that we cannot entertain or consider errors of this kind.
The twentieth assignment of error relates to the election made by the plaintiff to rest his case upon the first special 'count of his declaration, after he had, upon, a former trial, elected to go to trial upon the third special count. But this assignment is not based upon any exception, and after a trial and verdict the point must be held to have been waived.
The other assignments relate to matters occuring subsequently to the rendition of the verdict, and are based upon the record, which shows that during the trial the plaintiff in open court announced that he elected to rest his case upon the first count of his declaration and abandoned the other special counts ; and later he also announced that he did not claim a recovery under the common counts. The verdict was general, and judgment was entered thereon in favor of the plaintiff.
It is-claimed by the defendant that the result of what transpired was a mistrial. We do not find such an incon ■sisteney in the special counts as the counsel for defendant suppose exist. They all seek a recovery for the violation of the same contract. The second and third differ from the first in containing averments of an agreement to postpone the time of the performance of the contract. There can.be no doubt but that a waiver of performance, or an agreement to extend the time of performance of a condition precedent, is equivalent to a performance thereof at the stipulated time, and leaves the original .contract between the parties intact. The same proofs required to establish the second and third counts were essential to maintain a right to recover under the first. There was no proof introduced by plaintiff but what was relevant to support the cause of . action alleged in the first count of the declaration. The jury could not therefore have been misled, or their judgments •obscured, by the averments of the second and third counts. The charge of the court is applicable only to the first count, and we do not see any opportunity for a misunderstanding by the jury as to the issue of fact they were to determine. It was competent, therefore, for the court to apply the -verdict to the first count of the declaration, and it was proper, although not necessary, for him so to amend the record. The only omission in the declaration was the averment that the plaintiff was excused from the performance •of the contract, from the fall of 1875 to the fall of 1877, by the request of the defendant and the assent of plaintiff -to postpone the performance thereof. The proof, however, was fully gone into as to the postponement, and the imperfection, if any existed, is cured by How. Stat. § 7635, subd. 8, which provides that after verdict judgment will not be reversed for omitting any allegation or averment of any matter without' proving which the jury ought not to have given such verdict. Kean v. Mitchell 13 Mich. 207; Stone v. Covell 29 Mich. 359. Both parties upon the trial went fully into the question of the agreement for postponement; ■each was sworn and laid before the jury his version of that ••agreement, — all of which evidence was admitted without •objection, and it is difficult to see either that defendant was misled, or .was not fully prepared with his proofs to meet the ease. In such case, no damage coul<j possibly accrue to defendant on account of such variance, and this Court will not reverse a judgment for an error which could not, under any circumstances, work prejudice to the defeated party.
The other Justices concurred. | [
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Cooley, C. J.
Plaintiff brought action in assumpsit, and one of the items of his claim was for the drawing of certain, posts and ties.
The evidence tended to show that the defendants had a contract with one Yiew for the drawing of the ties and posts, and that Yiew had employed the plaintiff f;o do the work at a specified price. Plaintiff, after drawing a few, appears to-have become distrustful of Yiew, and he saw Donnelly, one- of tlie defendants, and told him he would not go on with the work unless lie was sure of his pay. Donnelly told him to go on, and defendants would pay him and take it out of View. It was upon this promise that plaintiff sought to recover in this suit. The defendants relied upon the statute of frauds.
Upon this branch of the case the trial judge charged the jury as follows :
“ It seems that Mr. Bates had agreed and made a contract with this man View to haul this cedar for him at certain prices for the ties and posts, and he now claims in this case, as I understand it, that after two or three loads had been delivered a new arrangement was made, or an arrangement was made with these defendants; and it is for you to determine from the evidence in this case what that arrangement was, as well as to determine whether any was'made at all. 1 say this to you : that if, after the three loads were hauled, if you please, this plaintiff absolutely refused to go on with the contract with View; said he would not haul any more cedar, in good, plain English; and that these defendants, or one of them, in order to induce him to haul the cedar down here, agreed with him, and made an entirely new and independent and different contract with him that they would pay him at a certain rate for hauling the cedar down here, — then they would be liable upon that promise. But in order to have such a contract valid, — in order to have it binding in law,— Bates must have absolutely refused to go on and perform his other contract. He could not have a double-barreled contract either with View or these defendants, that he might hit either one with ; that is to say, the one hé got his pay out of first. He could not have a contract that would operate as a trap to catch the first man that fell into it by paying him, and under which he could recover against the other; but there must have been an absolute giving up of the previous contract by'a refusal to perform it, and an entirely new arrangement, under which he relied entirely upon johnrowe & Donnelly, in order to recover.”
The jury returned a verdict for the defendants. As there was no showing of any consideration for the undertaking of the defendants, except such as should arise from the plaintiff’s acting upon it after his refusal to go on under the contract with View, the judge was quite right in instructing the jury that unless they found such a refusal they must return a verdict for the defendants. The mere fact that a debt existed, or would arise from View to the plaintiff, would not be sufficient to support the new promise of a third party. Bresler v. Pendell 12 Mich. 224; Corkins v. Collins 16 Mich. 480; Welsh v. Marvin 36 Mich. 60; Gower v. Stuart 40 Mich. 747. So much is unquestionable on our own decisions.
But even with sufficient consideration, the undertaking of defendants would be void if it were purely collateral to an existing contract of the original debtor which still remained in force and was enforceable as between the original parties. And such, upon the evidence, appears to have been the case here. The promise of defendants was to make payments in discharge of the indebtedness of View; but as View himself was no party to the arrangements, and does not appear to have assented that defendants might become his agents in payment, the contract relations between him and them would necessarily remain unaffected. The ease of Calkins v. Chandler 36 Mich. 320, to which our attention is called, was different to this in a particular that constituted the turning point of the case. In that case, the owners of a saw-mill were cutting lumber for the defendants when the contract in suit was made. The plaintiffs had a mortgage on the mill, and were pressing for payment. All the parties came together, and it was then agreed that the defendants should make payment for the sawing to the plaintiffs, to be applied on the mortgage, instead of making it to the mill-owners. It was upon this agreement that the suit was brought, and the ground of the judgment which was given for the plaintiffs was stated to be, that while’it was true that the promise of defendants was to make payments on the debt of the mill-owners, it was also true that every payment they undertook to make was to apply on an indebtedness to accrue against themselves for the sawing that from time to time would be done. Their promise was, consequently, a promise to answer for their own debt, and they took upon themselves no new obligation whatever. Any payment they should make under their promise would go in discharge of their own contract. The difference between that case and the one before us is vital. In this case, Yiew, whose debt the defendants promised to see paid, was no party to the arrangement. A payment by the defendants to the plaintiff would not, therefore, be binding upon him ; and, being made neither to the creditor of the defendants nor upon his order, or with his consent,, could not be applied in satisfaction of their undertaking to-him. The defendants, in promising such payment, were-therefore taking upon themselves an obligation beyond what they were before chargeable with (Gower v. Stuart, supra) £ and this was nothing but an obligation to be answerable upon the undertaking of Yiew. The case appears to me to be one falling very plainly within the statute of frauds.
The language of the judge in submitting the case to the jury was, no doubt, somewhat inaccurate, and went beyond the requirements of the case. It was not quite correct to say that a new promise cannot be binding unless the original promise is altogether given up. This is shown in the case-of Calkins v. Chandler, already referred to. But the inaccuracy was of no importance in this case. There was no-consideration whatever for the promise of defendants to the plaintiff, except his going on in the performance of the contract with Yiew; and the promise of defendants was, therefore, in the strictest sense, collateral to that of Yiew.
I think the judgment should be affirmed.
Sherwood, J. concurred.
Campbell, J.
In this case the plaintiff had an agreement with a man named Yiew to haul certain cedar which defendants had purchased from Yiew, and on which plaintiff had a lien which is admitted and allowed. Having doubts about Yiew’s responsibility, plaintiff refused to haul further for him. Thereupon defendants made an arrangement with him to have him go on and haul the cedar to them, and agreed to pay him for so doing. On this he sued as an original liability. The court below charged the jury that such ■•an agreement would bind them, although verbal, if plaintiff .gave up his contract with Yiew, but that he could not have ■a contract at the same time with both. .
It was held in Calkins v. Chandler 36 Mich. 320, that if a third party is to receive the benefit for which his promise is exchanged, it is an original undertaking, and it is not necessary that the contract of another party shall be given up. The original debtor’s liability need not in such case be ended. In the present case the court recognized'that there was sufficient evidence of a new contract for defendants’ benefit to support a promise, and we think that was sufficient in itself to authorize recovery.
The judgment should be reversed, and a new trial granted.
Champlin, J. concurred. | [
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Cooley, G J.
Motion for a mandamus. From tbe petition it appears that on April 2, 1885, the Detroit Fire & Marine Insurance Company foreclosed by advertisement a mortgage on certain lands in the county of Wayne, and the mortgaged lands were sold, realizing the sum of $565.15 above the amount due and costs. The petitioner holds a second mortgage on the same premises on which the amount of this surplus was then due to her, and she served upon the officer who made the sale a notice thereof, and of a claim to the surplus. The officer thereupon paid the surplus moneys to the register of the court of chancery, and the petitioner asks an order of the circuit court in chancery, referring the matter to a circuit court commissioner for the county to take proof of the facts and circumstances of petitioner’s claim, and that on the coming in of the commissioner’s report the surplus moneys be ordered paid to her. The petition makes no reference to parties who might be adverse claimants to the surplus moneys, but mentions Samuel Trudell as the mortgagor in her mortgage.
An order of reference was made as prayed, and the commissioner reported the mortgage of the petitioner, and that the sum due upon it was $567.63. It does not appear that any inquiry was entered into in respect to parties who might be adverse claimants of the moneys, but the commissioner returns a citation issued to A. N. Trudell, and also a general power of attorney from Samuel O. Trudell to A. N. Trudell. What relation these parties had to the matter, or whether they appeared before the commissioner, is not reported. In this Court it is stated by counsel that Samuel Trudell, the mortgagor, is deceased, and that A. N. and S. 0. Trudell are two of his three heirs at law. The whereabouts of the third heir is said to be unknown.
This statement of the case is sufficient to show that the circuit judges were entirely right in refusing to make any order on the commissioner’s report. The petition was fatally defective in not setting forth such facts as would show at least a prima facie right in the petitioner to the surplus moneys, and this it would not show without some further showing of the relation of other parties to the mortgaged lands. The petition in this case takes no notice whatever of other parties, and- seems to proceed upon the assumption that the mere statement of petitioner’s mortgage was sufficient to show her right to the moneys. But this is a grave error.
The proceedings before the commissioner were equally defective. All parties interested in the equity of redemption have a right to show whether they have any defense to petitioner’s mortgage; whether payments have been made upon it; and whether there are any equities against it. The opportunity to do this has not been given in this case. The statute which provides for these proceedings (How. Stat. § 8510) is one that suggests many difficulties, and it is not easy to see how it is to be administered at all; but, for the purposes of this motion, it is sufficient to show that, admitting the validity of the statute, the proceedings are fatally defective. The difficulties with the statute we do not, therefore, care to consider; it being certain that it cannot be law>fully administered without notice to parties concerned, and an opportunity for a hearing.
The motion is denied.
The other Justices concurred. | [
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Campbell, J.
Plaintiff, as assignee of James Gallery, recovered judgment against defendant for failure to indemnify Gallery from liability on a note for $4500, on which nine persons, who were directors of the Northern Central Michigan Railroad Company, but as individuals were originally liable, and of which all but two-ninths had been paid, and Gallery held for the balance. Error is brought by defendant.
So far as can be gathered from the very confused record in this case, the circumstances out of which the claim of plaintiff is alleged to have arisen were these: The Northern Central Michigan Railroad Company proposed building a road from Jonesville to Lansing, and before anything had been done to place stock or raise money in the usual way, the parties interested made various preliminary outlays and incurred expenses by raising amounts on their own responsibility, for which they joined in a joint and several note, several times renewed. On February 17, 1870, the persons then directors (Brockway being then one, and replacing Mr. Crawford) executed a note for $4500, payable to Samuel Y. Irwin, or order, at four months, with ten per cent, interest ‘after maturity, held by the National Exchange Bank of Albion, of which Irwin was president. The various persons so interested endeavored to obtain aid in various ways, from townships and individuals, and had secured and were securing personal aid notes to a large amount. Not seeing the way to a completion of the road by their own resources, efforts were made to get some other parties to help them, and by defendant’s action some persons, representing the owners of the Lake Shore & Michigan Southern Railroad, entered into negotiations, which ended in a proposal that J. Condit Smith, who acted in that behalf, would undertake to complete the road of the Northern Central, would put it in condition for ironing, (with some exceptions) pay the debts, and transfer to Smith the stock and property, and secure him in the control.„ Such an agreement was finally made with Mr. Smith, but on this record the date of it is disputed, and that date became important. Brockway, at a meeting of the directors, in August, 1871, agreed with them that if they would transfer to him the subscriptions and aid notes, and use their efforts to get more, he would assume and perform their obligations to Mr. Smith, and give security to do so. There is a contest whether the Brockway contract was made after or on the occasion of executing the Smith contract. Plaintiff claims that it was in order to get the directors to execute the Smith contract, and hand over the notes to the treasurer, that Brockway made his offer, which was accepted. This suit is brought on the claim that, as an inducement to the directors to enter into the Smith contract and hand over the securities in their hands, Brockway promised if they would do so to pay the $4500 note and keep the signers indemnified against it; and it is claimed also that these subscriptions and aid notes were obtained for the purpose of paying that personal note, as well as for work on the road.
It further is brought into the record that Brockway made provision for paying all of this $4500 note except two-ninths, being the shares of A. N. Hart and Gallery.
The bank finally sued Gallery, and he filed a bill to enjoin the suit, making the bank and Brockway defendants. This bill was dismissed and judgment at law passed against him. He brought it into this Court for review, and the judgment was affirmed. Gallery v. National Exchange Bank 41 Mich. 169. It was held that the directors could not use the funds of the corporation to pay their private debt, and that if such an agreement was made it would be void. It was also held that the bank could not be bound to discharge Gallery unless it accepted a new debtor in his place, which was not done.
' The present suit is brought for indemnity, Gallery having paid the bank judgment. Upon the trial, the court below admitted a large amount of testimony upon matters which seem to us foreign to the record, and much of that was apparently so much more the statements of counsel put in the mouths of witnesses than those of witnesses themselves, as to be grossly improper and censurable. The case, however, can be readily disposed of upon the real issues.
• The only theory on which plaintiff could recover must be upon an individual promise made to him by defendant as a personal and sole obligation, upon a legal and valuable consideration. No such contract is alleged, and there is no testimony that any such contract was ever made.
Looking first at the consideration, it is shadowed forth rather than distinctly alleged in this wise: It is claimed in the declaration that the $4500 note was given to raise money for the construction of the railroad, and for no other purpose; and that on the day of the August meeting the several directors had in their several custody certain subscription notes to the amount of $160,000, given by various persons in their respective neighborhoods, which were “each and all given for the purpose of aiding in, and were intended to aid in, (and to furnish means for), the payment of said $4500 note, and for the construction of said railroad; ” that said directors “had and controlled” $150,000 of these notes, and had the right to, and it was intended they should, apply enough of them to pay that $4500 note; that defendant proposed that if they would enter into the Smith contract, and wopld surrender to the treasurer for defendant, or to defendant himself, these notes, he would'build the road, pay its debts, and pay this $4500 note. A further set of averments allege a special application to Gallery, as one of the directors, to do likewise, and that defendant would build the road, pay the debts, and the $4500 note, and save Gallery harmless as aforesaid.
This being the consideration, the declaration avers that defendant promised each and all of the directors that if they would turn over the subscription notes he would pay the ■ $4500 note, and save each and all harmless, and that they all did so, Gallery including his own subscription note for $500.
It will be observed that, apart from the $4500 note, the whole consideration on both sides related to the corporate interest and to nothing else. It will be seen further that the notes to be turned over to defendant were subscription notes made for the corporation itself, to aid in its construction; and that, if intended to provide for the $4500 note, it was not to do so for each director out of the notes obtained from his own neighbors, but to do so as a common burden. It is apparent, from the averments in the declaration, that there was nothing in the facts which could give Gallery a right to use these .notes in his hands as the basis of a personal and separate undertaking, and that doing so would be a palpable fraud on the corporation, and illegal. But the consideration is so set out that the various promises and purposes cannot be separated, and the arrangement, if made with the directors us individuals, can only be treated as a joint one.
It is also clear, as held in Gallery v. National Exchange Bank, that if this $4500 note, was a personal one, which was not a corporate liability, the directors could not lawfully use corporate assets to provide for their own security.
Furthermore, the contract which defendant was to make, and the one which was to be made with Smith, were corporate and not personal contracts, and except as to this $4500 note, related entirely to corporate liabilities and interests, and it is not averred that the subscription notes, whether intended to provide for that note or not, were to be used except as corporate assets. In other words, the action of the directors contemplated and aimed at was corporate and not personal.
The testimony fails to show any different state of things. There is nothing in any way tending to show any but corporate action, and there is nothing tending to show that the subscription notes could lawfully be used for any purpose but road construction. Neither is it either averred or shown that the corporation had ever assumed or become liable on the $4500 note. All the notes which defendant received, he received nnder contract from the corporation itself; and from the facts relied on by plaintiff on the trial, it is impossible to deduce any but a corporate contract, whether covering this bank obligation or not. So that, if it should be admitted ■that defendant was bound to pay it, and indemnify the signers against it, the corporation would be the party entitled to complain of the breach.
There is nothing in the allegations, and nothing in the proof, which could justify a recovery as on a separate contract with Gallery, and the court erred in holding otherwise.
We do not think it necessary to discuss the other questions involved, as we can see nothing which could change the case beneficially for plaintiff. The declaration is fatally defective, but no error is assigned on it; and in reversing the judgment with costs, we must go through the form of ordering a new trial.
Sherwood and Champlin, JJ. concurred. Cooley, C. J. did not sit. | [
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Cooley, C. J.
Action upon a bail-bond taken by the sheriff in making an arrest upon a capias. The affidavit upon which the arrest was made was as follows:
“ State of Michigan, County of Saginaw — ss.: EdwardS. Pease, beingduly sworn, deposes and says he is a resident of the city of East Saginaw, in said county of Saginaw, and that on the twenty-third day of February, A. D. 1883, at the village of Eoscommon, in the county of Eoscommon, State of Michigan, John Mahoney, late of the said village of Eoscommon, with force and arms accosted and violently attacked this deponent upon the street in the said village of Eoscommon, where this deponent then was, and without any provocation whatever, then and there unlawfully laid hold of this -deponent, and with great force and violence knocked him down, and with his hands and feet dealt this deponent several'' violent blows upon his head, face and other parts of his body, and gouged the eyes of this deponent, and then and therewith force and arms in and upon him, this deponent, did make an assault, and did beat, bruise, wound, ill-treat and!' commit an assault and battery upon this deponent, by reason whereof this deponent became and was sick and was disabled from attending to his affairs and business for a long space of time, to wit, for the space of three weeks then next ensuing and suffered great bodily pain and mental distress, and in consequence of such beating, bruising, wounding and ill-treating this deponent was compelled to and did expend a large sum of money in procuring medicines, medical aid, and-nursing and was damaged thereby, by loss of business and expenditures of money in restoring himself to health and curing himself from the injuries so inflicted, and in mental distress and bodily pain, in a large amount, to wit, the sum of ten thousand dollars. Edward S. Pease.
Subscribed and sworn to before me this third day of April,. A. D. 1883.
John A. Steinlein,
Notary Public in and for Saginaw County, Mich.”
Pail was ordered in the case in the sum of $1000, and the-.defendants in this case became sureties to the officer, andMahoney was discharged from the arrest. How. Stat. §§' 7304, 7306. The condition of the bail-bond was to put in-special bail within twenty days after the return-day of the-writ; but this was not done, and the present suit was instituted and a recovery had for the penalty of the bond. No-default was entered before bringing this suit. After suit was brought, the defendant in the original suit, assuming that because of the want of default, he might proceed to give and' perfect special bail, went through the formality of doing so, and of being surrendered by the sureties. The plaintiff taking no notice of the proceedings, his default was entered. This attempt to give bail and to default the plaintiff subsequent to the commencement of the present suit, were held' by the court below to be of no force.
The defendants in this Court take the ground that the bail-bond given to the sheriff was void, because the affidavit for-arrest was not sufficiently specific in its recitals of the facts. To this the cases of Proctor v. Prout 17 Mich. 473; People v. McAllister 19 Mich. 215; Brown v. Kelley 20 Mich. 33; Badger v. Reade 39 Mich. 771; Sheridan v. Briggs 53 Mich. 569 and Stensrud v. Delamater 56 Mich. 144, are cited. None of them is in point. In every case referred to, the affidavit, which was held insufficient, stated conclusions ■only, not facts. But this affidavit states facts sufficient, if sworn to in a criminal trial, to make out a prima facie case.
The capias issued in the case is objected to as being in trespass on the case, and the variance between that and the affidavit is relied on. But though the capias probably by inadvertence designates the action as trespass on the caso it recites sufficiently the facts set out in the affidavit to make it a capias in trespass. The defendants also rely in this Court, as they did in the court below, on the right to put in and perfect special bail at any time before default was entered for failure to do so, and De Myer v. McGonegal 32 Mich. 121, is cited. But that case is not in point, for there no suit had been brought on the bond to the officer. The entry of default is only the formal expression of the plaintiff’s determination to rely upon the breach in the condition of the bond, and the commencement of suit must be equally effectual for that purpose.
Some other objections are made to the recovery, but they •do not appear to us to merit special notice.
The judgment must be affirmed.
The other Justices concurred. | [
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Sherwood,° J.
The plaintiff brought trespass against the defendant for breaking and entering his dwelling-house and store, and injuring and carrying away his goods, averring title to the premises and property injured in himself. Defendant pleaded the general issue, and gave notice thereunder that he would show on the trial, “ that the property he is alleged to have trespassed upon and injured was not the property of the plaintiff, but that of the defendant, at the time of the alleged trespass, and was owned and possessed by him.” The plaintiff recovered a verdict at the circuit for $100 damages, and the court, upon motion, gave judgment therefor and for costs.
The defendant objected to the recovery of costs. How. :Stat. § 8964 in this class of cases provides: “ If the plaintiff ¡recover judgment upon verdict, where the question of title of lands and tenements has been put in issue by the pleadings, or shall have come in question on the trial of the cause, he shall recover his costs.”
The case comes clearly within this provision of the statute as it is presented upon this record. The declaration contains ■three counts, two of which were for trespass upon the realty, ;and the third was for taking and carrying away property after the unlawful entry. This can make no difference, since the verdict was general, and included the damages for the trespass upon the real as well as the personal property. The paragraph of the statute referred to gives costs in cases where the title to land is put in issue by the pleadings, as well as where it shall actually come in question upon the trial. Here it was put in issue by the pleadings. The title was averred to be in the plaintiff by the declaration, and the defendant •claimed title under the notice filed with his plea. This is, •under our statute, the only admissible form of pleading such matters. Druse v. Wheeler 22 Mich. 445; Cuming v. Prang 24 Mich. 514.
In this case there is no bill of exceptions. The record alone is before us, from which it appears that after the verdict was rendered motion was made, based upon the files and records in the case, by plaintiff, that he be allowed his costs, -and which was argued by counsel and decided by the court in favor of the plaintiff, and there is nothing in the record ■showing that the motion was not correctly decided. This 'Court cannot presume error.
The judgment must be affirmed.
The other Justices concurred. | [
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Champlin, J.
This is an action of assumpsit brought to recover damages for not paying over certain moneys, which plaintiff claims defendant collected in his capacity of attor ney at law. The declaration contains two special counts, and also the common counts in assumpsit.
The first special count sets forth that plaintiff at the request of the defendant retained and employed him to prosecute a certain action at law for the collection of a certain claim for the agreed compensation of $500, to be paid defendant for his services and expenses in collecting such claim ; that he agreed to prosecute it with diligence and skill, and pay plaintiff the amount which should be collected upon the payment of the same by the debtor; that he collected and received $3500 that the debtor paid to defendant for said plaintiff on account of said claim, and it then and there became the duty of defendant to pay said sum of money to plaintiff, on demand, after receiving the agreed compensation of $500, which has been duly paid to him.
The second special count is the same as the first, except that it avers that the defendant, by himself, his agents, attorneys, counsel and assistants, proceeded to collect, and that said money was paid to the agent and attorney of defendant, and thereupon it became and was the duty, etc. The plea was the general issue, and common counts by way of set-off.
The plaintiff’s theory of the case was, and his testimony tended to show, that plaintiff, by his agent Samuel R. Bate-son, employed, defendant to collect a claim upon which judgment had been rendered in favor of the plaintiff in the cir.cuit court of the United States for the Eastern district of Michigan, against one Dickinson, who resided in New York City, which claim amounted to about $4500; that it was agreed between Bateson, acting for plaintiff, and defendant, that defendant should have $500 in case he should collect the claim without compromise, defendant to employ and pay the New York attorneys; that at the time of entering into this arrangement it was understood by both Bateson and defendant that proceedings in case would have to be taken in the courts of New York ; that under this understanding defendant secured the services of an attorney in New York, forwarded to him a transcript of judgment, and that suit was commenced in name of plaintiff, and the attorney subsequently employed counsel; that pending the determination of case, a compromise was made, and as a result of such compromise $3500 was paid to the attorney in New York ; that defendant had only paid to plaintiff, or his order, $2409, which, with amount of his contingent fee, left a balance of $590, for which amount plaintiff claimed he was entitled to judgment.
The defendant’s theory was, and his testimony tended to prove, that Bateson employed Badford to transmit to New; York for collection a judgment against Asa D. Dickinson. The plaintiff here was the plaintiff in the judgment, but Wilcox was the assignee of the judgment, holding the same in trust, one-half for himself, and one-half for some one else : either for Dustin alone, or for Dustin and Densmore. Bate-: son made an agreement with Wilcox to be at the risk and expense of collection; and, in order to carry out this bar-, gain, employed Badford to send the claim to New York. Badford was to receive $500 for his services, if successful in making the collection, but nothing if unsuccessful. Bad-ford expressly refused to be employed by Dustin. Dustin was equally emphatic in refusing to employ Badford. Bad-ford was employed on the statement that the judgment was obtained for moneys received by Dickinson as a lawyer, and converted by him. In point of fact, Dickinson had never been a lawyer at all, and the judgment was on the common counts in assumpsit, and w^as for matters that included both moneys collected and other things. As the case was origin ally stated, it was pretty clear that defendant might be arrested on a proper preliminary showing. As the case developed, the question of arrest became more doubtful. So that the case, as taken by Radford, and the case as developed after the arrest was made, were very unlike, and the difficulty, labor and expense were greatly increased, and extra counsel employed.
The suit was commenced in New York, in plaintiff’s name, by the arrest of the defendant, who applied on affidavits for a discharge from the order of arrest. This was met by counter-affidavits taken in Detroit by the New York attorney, who claimed that plaintiff told him at that time to go ón and do the best he could, and to retain ont of the money collected a sufficient sum to satisfy him. The motion was decided in favor of the plaintiff, and an appeal was taken to the general term, and was there argued ; but before it was decided the case was compromised by Wilcox, with the assent of plaintiff, for $3500. This money was paid to the New York attorney, who retained and kept out of the same $500 for his services, $300 to pay extra counsel, and $165.50 for disbursements and expenses. The balance, $2534.50, he remitted to defendant, who paid to Wilcox $1100, about which there is no dispute, and to Mr. Bateson $1309.50, leaving in defendant’s hands $125. The testimony of the witnesses upon the trial was contradictory; that of the main witnesses being diametrically opposed to each other. It was a ease, therefore, where the credibility of the witnesses was to be passed upon by the jury ; and we do not feel disposed to trench upon their province here. We shall therefore overrule the assignment of error, based upon the request to charge that the jury should render a verdict for the defendant.
Defendant’s counsel also requested a charge that if the jury believed Bateson, with the acquiescence of Dustin, employed Radford upon an understanding that Radford was to account to Bateson only, and not to Dustin, then the jury is instructed the plaintiff cannot recover. This was refused, and, instead thereof, in his general charge, the court told the jury that if they believed that Bateson acted as Dustin’s :agent, even if the contract was made between Bateson and Badford, that the plaintiff was the proper party to sue. Defendant’s request was based upon the defendant’s theory of the case, and upon the special counts of the declaration. Those counts averred a duty, on the part of the defendant, arising out of the alleged relation of the parties, and is made the foundation of the plaintiff’s cause of action against ■him. The general rule of law is that one who is not a party to a contract cannot sue in respect of a breach of duty arising out of the contract. Alton v. Midland R. Co. 19 C. B. (N. S.) 213; Winterbottom v. Wright 10 M. & W. 109; Longmeid v. Holliday 6 Exch. 761; Blakemore v. Railway Co. 8 El. & Bl. 1035, 1049; Reedie v. Railway Co. 4 Exch. 244; Collis v. Selden L. R. 3 C. P. 495; Cuff v. Newark & N. Y. R. Co. 35 N. J. L. 17, 574.
In Langridge v. Levy 2 M. & W. 519, and again in 4 M. W. 337, where a stranger to the contract was allowed to sue, the decision was expressly placed upon the ground of fraud. The defendant in this case sought to show that the ¡plaintiff was a stranger to the contract, out of which the alleged duty arose, and his request to charge was based upon that theory. The charge requested was properly refused under the evidence in the case. Whatever might have been the original contract relations between the parties, and whether as defendant claims or not, the plaintiff’s right to ..sue became perfect by the execution of the following instrument which was served upon defendant:
u Detroit, December 18, 1882.
George W. Radford, Esq., Attorney, etc., Detroit, Mich.— -Sir: Tou are hereby notified that all authority for your payment to.S. B. Bateson of any money collected for Selah Dustin from Asa D. Dickinson is revoked. You are re■quired to pay the same to said Selah Dustin, demand for which is hereby made by the bearer. Selah Dustin.
S. B. Bateson.
A. E. Wilcox.”
This paper operated as an equitable assignment, at least of fihe.contract between Bateson and Badford, and was sufficient to authorize suit to be brought by Selah Dustin in his own. name. The judgment obtained in the United States court had been assigned to Mr. Wilcox, and plaintiff’s evidence tended to prove that Bateson made a written agreement with-Mr. Wilcox with reference to the collection of the judgment' which formed the basis of the agreement with Radford... This agreement was as follows:
“ I, Alfred F. Wilcox, having taken an assignment of the judgment, which I hold, one-half in iny own right, and one-half in trust for collection, do hereby agree with Samuel R. Bateson that he may use and employ all lawful means for the collection of said judgment, but at his own risk and expense,, and without any risk or liability on my part to him or any other persons; and upon the receipt of one-fourth of the amount of said judgment, at the date of collection, to be-paid to me in my own right, and such amount as shall be satisfactory to the cestui que trust for the other half, I agree to discharge said judgment, and said Bateson shall have the remainder of said judgment for his expenses and trouble in said collection. This is not intended as an assignment of any interest in said judgment, nor as creating an agency, nor is it to prevent me from collecting the same, nor exercising full control over the same at all times. The authority hereby given shall cease at the expiration of six months from the date hereof, and may be sooner terminated by a notice of thirty days, given by either party to the other.”
The plaintiff’s claim is that having thus obtained control of the judgment, Bateson, as his agent, made the agreement with Radford set forth in the first and second special counts-of his declaration. But the plaintiff’s own proof showed that Wilcox stepped in and settled the claim, while defendant was endeavoring to enforce collection by prosecution. This-was one of the contingencies provided for in the contract between Bateson and Wilcox, but it was not provided in the contract between Bateson and defendant what should be his compensation if such contingency should happen ; and the special counts are not framed upon the actual facts which occurred. There was testimony'on the ¡Dart of plaintiff that a subsequent arrangement was had, by which Bateson agreed' that defendant should have $500 in case it was settled, and! no more; but this agreement is not counted upon in the declaration. The special counts are based entirely upon the original agreement claimed to have been made with defendant, and take no notice of the important change effected by the settlement by Wilcox without the consent of defendant and apparently against his wishes. This settlement left the contract unperformed by defendant, and without any measure of compensation agreed upon for services performed. The money that came into defendant’s hands was not received by him under the original agreement set forth in the special counts, but through the settlement made by Wilcox. Under these counts, therefore, as they stand, a recovery cannot be sustained under the proofs. The plaintiff’s case must depend entirely upon the count for money had and received. The amount that could be recovered under this count was properly subject to the set-off pleaded by defendant.
Testimony was received as to what the services rendered plaintiff were reasonably worth, and of the money expended in such service; but the learned judge did not submit the case to the jury under any proper instructions applicable to the proofs under the count for money had and received. He charged them that if they believed the plaintiff’s witnesses in regard to the contract, the plaintiff was entitled to recover; but if they believed the defendant’s witnesses in regard to the contract, the defendant was entitled to recover. He also charged them that if the plaintiff was entitled to recover at all, he was entitled to recover $590, and interest from December 1, 1882. He not only did not submit the case to the jury' under the common counts, but confined them entirely to the special counts, which, as before remarked, were not supported by the proofs in the case.
The judgment must be reversed, and a new trial granted.
Sherwood and Campbell, JJ. concurred. Cooley, O. J. did not sit. | [
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Sherwood, J.
The firm of R. B. Hubbard & Oo., of which the defendant was a member, in the month of Decem ber, 1874, let a contract to John Montgomery to cut logs and timber during tbe winter, on tbeir lands in Huron county, and baúl and put tbe same afloat in Willow creek, for the agreed price of $3.50 per thousand feet. Montgomery proceeded under his contract, and cut, hauled and placed in the creek a large quantity of logs, and the company was informed and supposed that all were taken from the land of defendant, and never knew to the contrary, so far as we can discover, until about the month of February, 1880. On the 14th day of August, 1880, the plaintiff brought this suit in trover to recover for the value of the timber taken by the defendant’s company from the lands of the plaintiff, and upon the trial obtained a judgment against the defendant for the sum of $896.95. The defendant brings error, based upon the rulings and charge of the court on the subject of damages.
It appears from the testimony that the land of plaintiff, from which the timber was taken, sought to be recovered for, is about three and one-half miles-from Willow creek, at the point where Montgomery delivered them to the defendant, and the plaintiff claims that he sh'ould recover the value of the logs at that point delivered in the creek. The defendant on the contrary, insists that the conversion, if any, was by his servants in the woods where the timber stood upon plaintiff’s land, and that the damages for which he was liable, if any, was the value of the stumpage. The court instructed the jury in accordance with the views of plaintiff’s counsel, and the verdict of the jury was rendered accordingly.
. There is no evidence in the case tending to show that the defendant, his company, or Montgomery, intended any trespass or knew they were upon the land of the plaintiff in cutting the timber.
We think the circuit judge erred in his instruction to the jury. We discover nothing in the case indicating any willful or negligent trespass on the part of the defendant or the company’s employees. The general rule of damages is the value of the property lost under such circumstances at the time and place of conversion. The declaration avers plaintiff’s possession of the land¡ and the ownership of the prop erty taken, and that upon the land the property was taken, and there came to the possession of the defendant by finding, and on the same day and place the defendant converted the same. The record shows this declaration supported by the proofs. Complete indemnity for the actual loss sustained in this case by the plaintiff is what he was entitled to recover. In civil actions the amount of recovery does not depend upon the form of the action, in a case like the present; but whether it be upon contract or in tort, the proper measure of damages, except in cases where punitory damages are allowed, is just indemnity to the party injured for the loss which is the natural, reasonable and proximate cause or result of the wrongful act complained of. Baker v. Drake 53 N. Y. 211; Page v. Fowler 39 Cal. 412; Forsyth v. Wells 41 Penn. St. 291; Single v. Schneider 30 Wis. 570; Hungerford v. Redford 29 Wis. 345; Allison v. Chandler 11 Mich. 542; Warren v. Cole 15 Mich. 265; Daily Post Co. v. McArthur 16 Mich. 447; Northrup v. McGill 27 Mich. 238; Winchester v. Craig 33 Mich. 205; Allen v. Kinyon 41 Mich. 281; Weymouth v. Railway Co. 17 Wis. 550; Tilden v. Johnson 52 Vt. 628; Cushing v. Longfellow 26 Me. 306; Ensley v. Nashville 58 Tenn. 144; Thompson v. Moiles 46 Mich. 42. Each case, however, must necessarily to a very great extent depend upon its own peculiar circumstances and equities. Erwin v. Clark 13 Mich. 10; Ripley v. Davis 15 Mich. 80; Alen v. Kinyon 41 Mich. 281.
We think the testimony offered and rejected by the court was competent as evidence tending to show the value of the property, even under the theory of the plaintiffs. It was only one means of arriving at the value of the property at the place where the plaintiff claims the conversion occurred. In no view that we can take of the case, as presented upon this record, can the rulings of the court be sustained; and
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Cooley, C. J.
This cause was tried by the circuit judge without a jury, and the facts as found are substantially as follows:
January 28, 1884, Thomas Swan of Detroit made a voluntai-y assignment to the plaintiff for the benefit of his creditors, under the “ Act to provide for the regulation and enforcement of assignments for the benefit of creditors,” approved May 13, 1879 (Pub. Acts, p. 181). The assignment and the acceptance thereof by the plaintiff were duly filed January 29, 1884. The property assigned consisted chiefly of a stock of goods and fixtures and furniture, upon which there was at the time insurance in name of said Swan to the amount of $23,250 on the stock, and $12,550 on the fixtures and furniture. There was a policy in the Franklin Insurance Company to an amount of $5000, and upon hear ing of the assignment, John G. Erwin, agent of said company, went to said Swan and plaintiff, and canceled the policy under a provision therein contained. Plaintiff then asked said Erwin to procure other insurance in place thereof, and said Erwin requested George W. Chandler, agent of defendant, to issue policies to said plaintiff, and on February 1st said Chandler sent to said Erwin’s office the policy declared on in this cause, and another policy of like tenor in the Kings County Insurance Company.
The policy in suit was issued to plaintiff as assignee and insured him to the amount of $2500, — $1250 on the stock and $1250 on furniture and fixtures assigned, — but not exceeding his interest in the property. The policy also contained a warranty that the assured had not omitted to state any information material to the risk, and the further provision that the policy should become void, if the assured was not the sole and uncond "onal owner of the property, or if the interest of the assui in the property, whether as owner, trustee, factor, agent, mortgagee, lessee, or otherwise, was not truly stated therein. There was a mortgage on the stock at this time, made by Swan to the Detroit Savings Bank. February 5,1884, before Sibley had filed his bond and qualified as assignee, there was a fire, and the property insured was damaged. Two days later Sibley qualified as assignee by filing the statutory bond and inventory.
An adjustment and appraisal of the loss was made between the plaintiff and the several insurance companies who had issued policies upon said stock to said Swan, but that said defendant and Kings County Insurance Company did not join in such adjustment and appraisal, but the apportionment of loss=was arranged as if the defendant and Kings County Insurance Company were to share in the loss. The schedule shows the adjustment and apportionment of losses as then made ; that said Sibley received, as assignee of said Swan, the several amounts apportioned to the several companies as shown in said schedule, except in the case of this defendant, and made proof of loss to said defendant for the amount which would have been appor tioned to this defendant if it had participated in the adjustment with the other companies as shown in said schedule, $747.45. The actual loss on furniture and fixtures, as found by the court, was the sum of $7378.14, and on the stock the sum of $3199.94, making a total loss of $10,578.08, though it does not appear but that Sibley knew the full loss when he made his proof of loss", or that he was under any misapprehension of the real facts. That portion of loss chargeable against the defendant was the sum of $922.80.
Plaintiff brought suit on the policy. The defendant insisted under the foregoing facts — first, that plaintiff, not having filed his bond as assignee, had no insurable interest; second, that if he had any interest, it was only in event of loss before filing his bond, being the difference between the amount insured in Swan’s name and the value of the property ; third, that even if the company.'^fere liable, they could not be held for more than the amounT claimed in the proof of loss, in the absence of some showing of mistake as to the amount of loss when such proofs were made; fourth, that such policy was void, not only from failure to disclose information material to the risk, but also under the express provisions providing that if plaintiff was not sole and unconditional owner, etc., or if his interest was not truly stated in the policy.
Upon this finding of facts the circuit judge found as conclusions of law that the plaintiff had an insurable interest in the property; that the policy was valid, and that plaintiff was entitled to recover of defendant, as its proportion of the loss, the sum of $922.80, with interest. Defendant brings error.
The defendant contends that under the statute no interest in the property passed to the assignee until after he had duly qualified by the filing and approval of his bond. In support of this contention, reliance is placed upon the first section of the act (How. Stat. § 8739), which is copied in the margin. In connection, the sixth and last section is also given.
The question thus raised is not altogether a new one in this Court. In Fuller v. Hasbroucjk 46 Mich. 78 it appeared that the mercantile firm of Hasbrouck & Hill had made a general assignment for the benefit of their creditors to O. J. Fast, and that Fast had accepted the trust, taken possession of the property, made an inventory, and given notice to creditors, but had failed to give the statutory bond within the ten days. Immediately on the expiration of the'ten days, several creditors sued out attachments and made levies, and certain secured creditors also took possession under their mortgages. Complainants, who were unsecured creditors, then filed a bill in equity, setting forth all the facts, and praying for the appointment of a receiver and the execution of the trust under the assignment by him. The circuit court dismissed the bill, but this Court reversed the decree, and held the complainants entitled to the relief prayed.
The Court reached this conclusion on a consideration of the general intent of the statute, which was that the property of insolvent assignors should be equally distributed among all their creditors. “ To this end it prohibits the giving of preferences, and requires security for accounting and frequent reports from the assignee. If preferences are fraudulently attempted, the intervention of equity to prevent it is authorized, and if the assignee shall fail in any particular in the discharge of his duty, equity may displace him with a receiver who shall discharge the trust impartially.” It is true that the statute declares the assignment “ void ” if the bond is not filed ; “ but this word is frequently used in the sense of voidable, and it must have that construction here, if it shall be necessary to give other provisions of the statute effect. The assignment, as an effective trust in the hands of the assignee, undoubtedly becomes inoperative, and will remain so, and in a certain sense void, unless creditors take steps to save the trust and have it enforced in equity.” This, it was said, was what the statute means. But no opinion was intimated as to what might have been the result if it had appeared that the assignee had never assumed the trust, or done any act in furtherance of it. In that case, there had been distinct acts of acceptance; possession taken and notice given ; everything in fact done which could be done before the giving of the bond.
We have seen no reason to change the views here expressed. The acceptance of the assignment and the taking possession of the property create a trust with the assignee as trustee, and the assignee may defend the trust by the institution of any necessary suits .for the purpose. Coots v. Radford 47 Mich. 37. The trusteeship is, indeed, for the time being imperfect, for he cannot proceed in its execution before the ■bond is filed. It is subject to a contingency in the nature of a condition subsequent which may defeat his power to act without destroying the trust; but that, in the meantime, he may do whatever may be found necessary for the protection of the interests of the beneficiaries in the assigned property is recognized by the case just cited. The assignor has transferred to him the legal title for that purpose, and his power to act as trustee is merely suspended for the time being, until certain acts shall be done which are essential to give due protection to parties concerned. But that he may insure the property against destruction by fire in the meantime we have no doubt. He may do so just as properly and with as much right as he may by force or by suit defend his possession against trespassers.
But it is further contended that this does not make the plaintiff sole and unconditional owner, and as his interest was not truly stated in the policy, the policy is void for that reason.
The policy was issued to the plaintiff as assignee. The defendant was therefore apprised that the plaintiff was not asking insurance in his own right, but in some right which had come to him by assignment. The statement in that regard in the policy was true as far as it went, and if defendant wanted anything further it should have been called for. There was no deception and no concealment in the case; plaintiff had such ownership of the property as was in any one; and though it was not unconditional, the designation of plaintiff as trustee would be sufficiently suggestive of a condition to put the insurer upon inquiry. If the defendant failed to make inquiry, it must be deemed satisfied with such information as it possessed.
An argument is also made that the plaintiff had no insurable interest because the policies,* which passed to him with the assignment, more than covered the loss. But this, we conceive, is at best only specious. Whether the policies came to him with the trust, or whether he took them out himself, would make no difference; he had the property with the policies upon it, and might take out further insurance as any owner might, subject to the customary conditions as to information, over-valuation, etc.
The last argument requiring notice is that plaintiff is bound by his proofs of loss, which made the amount less than the judge found. Tlie argument might be sound if there were any element of estoppel in the case, but there is not. The defendant refused to act upon the proofs, and repudiated all liability. The plaintiff was therefore put to legal proofs in court; and there is no ground, legal or equitable, on which the defendant can insist on holding him to proofs which are only made with a view to adjustment without litigation, but which the defendant himself repudiates.
The judgment must be affirmed.
The other Justices concurred.
Sec. 8739. The people of the State of Michigan enact, That all assignments commonly called common-law assignments for the benefit of creditors shall be void unless the same shall be without preferences as between such creditors, and shall be of all the property of the assignor, [not] exempt from execution, and unless such instrument of assignment, or a duplicate thereof, an inventory of the assigned property, a list of creditors of the assignor, and a bond for the faithful performance of the trust by the assignee, shall be filed in the office of the clerk of the circuit court of the county where such assignor resides, or, if he is not a resident of this State, then of the county where the assignee resides; if neither are residents of this State, then of the county where the assigned property is principally located, within ten days after the making' thereof. Such assignment shall convey to the assignee all property of the assignor not exempt from execution, and all rights, legal or equitable, of said assignor: provided, that no such assignment shall be effectual to convey the title to the property of the assignor to the assignee until such bond shall be executed, filed with, and approved by said clerk; and provided, further, that no attachment or execution levied upon any assigned property of such assignor, after such assignment, and before the expiration of the time provided herein for filing such bond, shall be valid or create any lien upon such property.
The sixth and last section is as follows:
In case there shall be any fraud in the matter of said assignment, or in the execution of said trust, or if the assignee shall fail to comply with any of the provisions of this act, or fail or neglect to promptly and faithfully execute said trust, any person interested therein may file his bill in the circuit court in chancery of the proper county for the enforcement of said trust; and the court, in its discretion, may appoint a receiver therein, and the court shall have power to order the summary examination before himself, or a circuit court commissioner, of any party or witness, at any stage of said cause relative to the matters of said trust, and enforce attendance and the giving of testimony therein, in the same manner as in the trial of causes in such circuit courts in chancery. | [
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Shebwood, J.
This is an appeal from the circuit court ■for the county of Marquette, in chancery. On the 1st day ■of May, 1868, John Crowley, of Marquette, purchased by •contract of the Cleveland Iron Mining Company, for the •consideration of $5250, one lot lying on the north-east corner of First and Superior streets, being thirty-five feet on Front street, in the city of Marquette; and on the 16th of April, 1868, Harrison W. Jackson purchased, by contract, of the same company a lot next adjoining on the south, lying thirty feet on Front street, agreeing to pay therefor $3600. Soon ■after making this purchase, Jackson sold his interest in his ■contract to said John Crowley, thus making the total price ■of Crowley’s purchase of sixty-five feet on Front street the sum of $8850. Crowley divided these two lots into three,, fronting on Front street. Commencing at Superior street, and going south, he made the first lot twenty feet, the second twenty-two feet, and the third twenty-three feet, wide. Crowley erected a two-story building, at a cost of about $8000, on the corner lot, and on the lot next south he built a- brick building, and in 1871 he sold the same, with the improvements thereon, to Timothy Donovan, the complainant, for the sum of $6000; and the lot next south of the Donovan lot Crowley about the same time sold to James Dwyer, the defendant, with the improvements thereon, for the sum of $3800. Peter White, of Marquette, was the agent of the Cleveland Iron Mining Company for the sale of said lots,, and it appears from his minutes that on the 25th day of March, 1879, there was due upon the Crowley and Jackson contracts $6105.46. The complainant and defendant before this time had both paid Crowley in full the purchase price of their lots, and each was entitled to his deed. They, however, soon discovered that Crowley had not paid the company for the land they had purchased, and there being some question whether he would be able to do so, there was a fair prospect that the complainant and defendant might be obliged to pay the deficiency in order to save the title to their own property, and on the 2d day of September, 1878, they took an assignment to themselves from Crowley of his contract with the company for the corner lot, which, although absolute in its terms, was intended for their protection and indemnity in case they were obliged to make any payments in securing their title. Crowley, at the time of making said assignment, took back from the parties to this suit a written agreement for a reconveyance of the property to him at any time within five years when the parties should be fully reimbursed in the amount they might1 really be obliged to pay, with interest at ten per cent. After Donovan and defendant took the assignment of the Crowley contract, as above stated, Donovan paid to White, for the Iron Mining Company, what he, Donovan, called his pro rata share of the Crowley indebtedness upon his lot of twenty-two feet frontage, the sum of about $2000, and received a deed of bis lot on the 3d day of April, 1879, from the Iron Mining Company. Dwyer also paid White, in money and by note, $5006, and not only took the Cleveland Iron Company’s deed of his lot purchased of Crowley, but also a deed for the corner lot occupied by Crowley, running to himself. These deeds also appear to have been given on the 3d day of April, 1879, and it is claimed by the company, were made under its contract with Crowley which he had assigned to Donovan and Dwyer. This deed, however, contains a clause recognizing Crowley and any rights he might have in the lot in these words : “ This deed is made and delivered subject to the. legal rights of John Crowley under this contract, with the party of the first part hereunto, to the tract of land described herein, if any such right exist,' be the same more or less.”
The complainant claims in his bill of complaint “that, without the consent of Donovan, Dwyer had entered intoan agreement with White for himself and for Donovan, after they obtained the assignment of September 2, 1878, and had given the five-year contract back to Crowley, referred to above, whereby it was agreed between Dwyer and the Cleveland Iron Mining Company that it should proceed to forfeit the contracts of May 1, 1868, and April 16, 1868, as against Crowley, at the same time carrying out the arrangement with Dwyer and Donovan to convey to them upon the pay ment of the indebtedness of Crowley to the Cleveland Iron Mining Company; that in accordance with the previous agreement by defendant with White, the Cleveland Iron Mining Company, through Peter White, filed a complaint before James E. Dalliba,” in a summary proceeding to obtain possession of said corner lot, and failing in this proceeding, renewed the same before the judge of probate of Marquette county on the 16th day of August, 1S79, and on the 25th day of the same month succeeded in obtaining judgment of ouster against Crowley and for possession by Dwyer; that these proceedings were had against the consent of Donovan, who claimed they were contrary to the contract he and Dwyer had made with Crowley. It also appears from the testimony of White that he knew nothing of the contract existing between the complainant and defendant and Mr. Crowley, relating to the lot on the corner occupied by the latter.
The complainant further claims that defendant, desiring to avoid the contract of the parties with Crowley to reconvey to him, and to cut him off beyond all rights of redemption in the property, endeavored to get Donovan to consent to the bargain claimed with the Cleveland Iron'Mining Company that it cancel these contracts, and to oust Crowley; that this Donovan refused to do; that after the assignment was made, Dwyer asked him if he wanted the corner lot; that Donovirh told him he did. . Dwyer then said he would pay him. Donovan replied that he did not want to take the lot from Crowley ; that all he wanted was his money; that this conversation was not a great while after the assignment was made, and was the substance of all the talk had between the parties, as to taking the corner lot; that Dwyer soon after, without asking Donovan to pay his share of what remained due upon the contract for the corner lot, paid the same in full, and took the deed running to himself, procured the cancellation of the contract and the ejectment proceedings, and claims th.at Cr.owley’s rights are forfeited, and complainant has surrendered his to defendant voluntarily that he had as security for the moneys which he had. advanced, or for any other claim, and has for several years been taking all the rents, which have been large, and refuses to recognize complainant’s alleged rights in any form, and that the property is now worth $9000. Complainant asks for an accounting, and that he be decreed the owner of one-half of the corner lot, free and clear from all incumbrance, and have a deed from defendant accordingly.
The answer of defendant admits many of the material facts, and then says that, sometime after the parties discovered that Crowley had not paid up for the land, “ complainant and defendant went together to Peter White, agent for said Cleveland Iron Mining Company, to endeavor to get an extension of time for said Crowley and themselves ; but the company would wait no longer, having waited eleven years, and it was finally agreed that the company should taita steps to forfeit Crowley’s interest, and to protect the rights of complaincmt and defendant so far as consistent with the rights of the Cleveland Iron Mining Company. This arrangement was made between Peter White, agent, and complainant and defendant. Defendant avers that he took no steps in the matter at that time, nor thereafter, except with the knowledge and consent of said complainant, and made no private bargain whatever with said Cleveland Iron Mining Company, nor with Peter "White, its agent. Crowley held all of said lands, which had a frontage of sixty-five feet on Front street, under two contracts; the corner included thirty-five feet and the inside thirty feet, and in contracting to sell to complainant and defendant, Crowley retained twenty feet on the corner. When complainant and defendant settled with the Cleveland Iron Mining Company, it wras agreed that complainant should pay the company $1894 for his lot; that the defendant should pay $2000 for his twenty-three feet north of complainant’s, and that the corner twenty feet should pay $2663.06 at that time, March 25,1819. The complainant backed out of his agreement to take said corner jointly with defendant, and • informed defendant and Peter White that he would have nothing to do with the corner whatever. Whereupon the defendant then agreed to take it, with the consent of complainant and Peter White, and on April 3, 1819, by the consent of all the parties in interest, deeds were executed to complainant for his twenty-two feet, and to defendant for his twenty-three feet, and also for the corner twenty feet;.but as neither com-» plainant nor defendant was then able to pay the purchase price, said deeds were not delivered for some time thereafter to either of them, but were held by Mr. White, agent, as' aforesaid. That the complainant and defendant became the equitable owners of said described lots, to wit: The complainant of the twenty-two feet next to the corner, and the defendant of the twenty-three feet north of complainant, and also of the corner twenty feet occupied by said Crowley, and on tlie 16th. of August, 1879, proceedings were taken by said Cleveland Iron Mining Company, which still held the .legal title, to extinguish the title of said Crowley, and judgment of restitution was rendered in said probate court, July .21, 1879, and a writ of restitution issued July 27, 1879, whereby said Crowley was ousted from the possession of said' ‘ corner,’ and this defendant ¡jut in possession thereof, all of which was well known to complainant, who made no objection thereto. The defendant avers that he took said deed of said ‘corner’ from the Cleveland Iron Mining Company for his own benefit, by the consent of complainant, who refused to have anything to do with it, and never offered to pay any of the purchase price thereof; that at that time business was very dull, and real estate was considered of little value in Marquette, but since then property has greatly increased in value, and complainant’s claim is a mere after-thought, in which he is attempting to take advantage of defendant’s expenditure of money on said premises.”
The case was heard before Judge Grant at the Marquette circuit, who dismissed the complainant’s bill, and he appeals to this Court.
The case is not free from complication and difficulties. The parties, up to the time they discovered that Crowley had neglected to pay the Cleveland Iron Mining Company the amount due upon his contract with the company, had no interest in common with each other in the premises; each had dealt separately,and independently with Crowley, had paid up for .their lots, and each was entitled to his deed, which Crowley could not then give. They then sought some way by which they could secure title to the property they had bought and fully paid for. This they could do but in one way. The company refused to convey to the parties unless they -would assume to pay Crowley’s full indebtedness to it upon his and the Jackson contracts, and this they could not do without advancing, in addition to what was owing the company by Crowley for their lots, also what he was owing for the corner lot; and the only security they could get of •Crowley in the event of their making .such payment and advances for him was the corner lot, and this Mr. Crowley was willing they should have, provided they -would agree to give him five years within which to reimburse them for the amount they should pay, and interest thereon, upon the ' receipt of which he was to receive a reconveyance of the property.
It appears, I think, from the testimony in the case, that this arrangement was entered into and a contract to that effect was made and signed by Crowley, Donovan and Dwyer, .and thereupon Crowley transferred to them his intei’est in the contract he held for the comer lot. These instruments bear date the same day. Of course this contract between Crowley and the parties is entirely immaterial, except as it tends to show the true relation between the parties to the interest claimed by the complainant in his bill. There is but little difficulty with the case up to this point. It seems to be conceded that the complainant and defendant, by this arrangement, were to pay to the company the balance of the purchase money due from Crowley on both his and the Jackson contracts. This was what Peter White, as agent for this company, demanded before he would give either party a title to any part of the lots, and this Dwyer claims that he was .ready and willing to do, but that Donovan was not willing to do, and would pay no portion thereof except a pro rata .share to secure a deed for his own lot, and that he, Dwyer, was obliged to and did pay the full amount of the remainder, and took a deed for his lot, and at the same time took a deed •running to himself for the corner lot, as his only means to obtain title to his lot and any security whatever for the advances he had made; Donovan absolutely refusing to do anything about it, surrendered his rights in the corner lot to Dwyer. •
Mr. Donovan, however, substantially denies some of the facts claimed by Dwyer, and gives a different version of the, matter. He says he never in any way surrendered his right dn the contract-for the corner lot to Dwyer, and never had any intention of doing so. He told him he did not want to dispossess Crowley ; that Dwyer wanted to dispossess Crowley, and offered to pay Donovan for his interest, and he refused to let him have it, saying Crowley was his friend, and he did not want to take the lot from him. He further says that Dwyer never asked him to pay anything for the corner lot; that he, Donovan, knew that he had a lien on it, and he proposed to hold it; that he paid about $2000 for Crowley. He also claims that Dwyer wished to oust Crowley, and took the ejectment proceedings for that purpose, and secured the forfeiture of.the contract by the company in the interest of the security which he held, and with a view of cutting off the rights of Crowley under the contract he had made with the parties; and while he was unwilling to do this, he was willing to pay his pro rata share of all. moneys-to be advanced to save the title to the land purchased of Crowley, and preserve their security therefor in the corner-lot.
The main question in the case is one of fact, and the witnesses are not numerous. I have read with careful attention all the testimony contained in the record, which it is unnecessary herein to discuss, and from that and the conceded facts, I find myself unable to agree in the conclusion reached by the learned circuit judge. If the evidence in the case rested upon the testimony alone given by the witnesses, I should be unwilling to disturb the decree made, but the undisputed facts, together with the circumstances in the-case, I think, furnish a preponderance of evidence in favor-of the complainant, and the decree should be
Reversed and a new decree entered in the case in accordance with the prayer of the complainant’s bill, with costs.
Cooley, C. J. and Campbell, J. concurred; | [
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Champlin, ¡T.
This suit was brought by the plaintiff to recover from defendants a balance of account which defendants owed to Bultman, Tompkins & Co., of New York, which had been assigned to plaintiff. On April 26, 1884, the defendants, who reside at Detroit, Michigan, owed to Bultman, Tompkins & Co., citizens of New York, an indebtedness of about $420. On this day Bultman, Tompkins & Co. made a general assignment for their creditors, a copy of which is given in the record, and appears to be an ordinary common-law assignment of all their property, with preferences to certain of their creditors. This assignment was voluntarily, made by Bultman, Tompkins & Co., in the individual names of the members of the firm at New York, to the plaintiff in this suit, who accepted the trust and entered upon the execution thereof. Minor & Richards were unsecured and unpreferred creditors of the assignors, and were citizens of Illinois, and on July 12, 1884, commenced suit in the circuit court for the county of Wayne against Bultman, Tompkins & Co., and at the same time garnished the defendants herein. No service was had upon the defendant's in the original suit in the State of Michigan, but service was made in New York, under the authority of How. Stat. § 8087. The writ of garnishment served upon defendants was returnable on the 29th day of July, A. D. 1884, and on the 26th day of July they filed their disclosure, in which they admitted that at the time of the service of the writ upon them they were indebted to said Bultman and Tompkins in the sum of $420, and that they had no property or effects in their possession, or under their control, belonging to the said Bultman and Tompkins, who composed the firm of Bultman, Tompkins & Co.
This suit was commenced on the 31st of July, 1884, by declaration, in the Superior Court of the city of Detroit. 'The defendants did not appear generally and plead the general issue, but interposed a plea in abatement, duly verified, in which they admit that they were indebted to Bultman and Tompkins before the general assignment made to plaintiff ; but they recite and state the facts respecting the commencement of suit by Minor & Richards against Bultman and Tompkins in the circuit court for the county of "Wayne; the fact that both plaintiffs and defendants in that suit are nonresidents of the State of Michigan, the issue and service of a writ of garnishment upon' them, and the statutory service upon the principal defendants in the state of New York; that no judgment had yet been rendered in the original suit; that the garnishee proceedings were still pending against them; that the Wayne circuit court had jurisdiction over them, said defendants, and of the action, and of the right to subject them to the claim. of Minor & Richards in said •cause; and that all and every of the causes and rights ■of action contained in plaintiff’s declaration are the same identical causes and rights of action on account of and by reason of which the defendants are sought to be adjudged liable as garnishees, and are the very point and subject of ■controversy in said suit; concluding with a verification and prayer for judgment quashing the declaration.
The plaintiff filed a replication, and the judge of the Superior Court has made a written finding of facts, substantially as set forth in the plea of abatement. He also found that the plaintiff, Butler, was the assignee of Bultman and Tompkins of the said claim against the defendant Wendell, under ■a general assignment for the benefit of creditors, made and ■dated the 26th day of April, A. D. 1884, by said Bultman ■and Tompkins to him under the statutes of the state of New York in such cases made and provided ; a true copy of which was attached to and made a part of defendants’ plea in abatement. Thereupon he gave judgment for defendants that the declaration be quashed, and for costs. Plaintiff brings ■error.
The only question is whether the plea in abatement, which was found to be true by the court, should abate the plaintiff’s action. How. Stat. § 8085 reads as follows: “ If any person shall claim any property as aforesaid,’ in the hands of any garnishee, by assignment from the principal defendant, or otherwise, the court may permit or cause him to appear and maintain his right in such mode as the court shall direct.” It will be observed that the assignment of this debt occurred on April 26, 1884, which was prior in time to the commencement of the garnishee proceedings. There can be no- doubt that, as between Bultman and Tompkins and George A. Butler, the legal title of the indebtedness from defendants to Bultman and Tompkins passed to their assignee; and if this be so, it would seem that there could be no objection to the right of the assignee to enforce the demand against the defendants. But it is claimed by the defendants that inasmuch as the instrument under which the title passed- was a general, assignment for the benefit of creditors under the statutes of the state of New York, it would not be enforced in this State as being valid or effectual to- earry the debt to Butler as against the attachment of the debt made by Minor and Richards. The defendants assume that because the finding of facts states that the assignment in question was made “under the statutes- of New York in sueh. case made and provided,” such statutes must be a system of insolvent laws in that state, and contain provisions of a local nature regulating and restricting the rights of the assignee, ■ and prescribing his duties in the discharge of his trust. And they claim, therefore, that the assignment has- no- extra-territorial force, and if enforced at all, will be so only as a matter of comity; and that it will not be enforced at all- as against a creditor getting a lien under our laws.
The assignment is set out in full in the plea of’ abatement, but there is no allegation in the plea that the law under which the assignment was made was an insolvent la-w of that state, or that it contained any restrictions or limitations upon the common law as to assignments for the benefit of creditors. If the statute of the state of New York did notin any manner change the common law relative to assignments for the benefit of creditors, nor the manner of enforcing them,. but was simply in affirmance of the common law upon that subject, the mere fact that such assignment wTas made under the laws of the state affords no reason for confining the enforcement of the assignment to the territorial jurisdiction of such state. There is nothing in the record before us to show why such assignment should not be enforced here. Upon the face of the instrument it appears to be an ordinary common-law assignment for the benefit of creditors, with preferences, and does not appear to be executed under or in pursuance of any statute. Being valid in the state where made, it must be considered valid here, unless opposed to some positive enactment or the policy of the laws of this State. It is claimed that it is opposed to How. Stat. § 8739, which declares that all assignments commonly called common-law assignments for the benefit of creditors, shall be void unless the same shall be without preferences as between such creditors, and unless the instrument, or a copy thereof, an inventory of the assigned property, a list of the creditors of the assignor, and a bond for the faithful performance of the trust by the assignee, shall be filed in the office of the clerk of the circuit court of the county where the assignor resides; or, if neither the assignor nor assignee are residents of this State, then of the county where the assigned propérty is principally located. This section of the law has no extraterritorial force. It was intended to affect such assignments as are made in this State, and was not intended to affect assignments made in other states by the citizens thereof.
Assignments with preferences for the benefit of creditors are valid instruments at the common law, and, if made in this State, can only be challenged at the instance of creditors of the assignor. The defendants do not stand in that relation to the assignors, Bultman and Tompkins, and are not, therefore, in a position to attack the legality of the assignment because of the fact that it gives preferences. This point was recently passed upon by the supreme court of Massachusetts in the case of Train v. Kendall 137 Mass. 366. That case in its facts is quite similar to this, and we think was decided upon correct principles, and is an authority for the views herein expressed. The proper course for the defendants to pursue to avoid a double liability is for them to apply to the circuit court for the county of Wayne for leave to file a supplemental disclosure, in which they may set forth that the debt is claimed to be assigned to Butler. They may also give notice to Minor & Richards of the suit against them by the assignee of the debt, and call upon them to defend the action ; in which case they will be bound by the judgment, should one be rendered against the garnishees. It follows from what we have said that the judgment below must be
Reversed, and the defendants are at liberty to plead issuably within thirty days.
The other Justices concurred. | [
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Campbell, J.
Plaintiff recovered damages from defendant, a saloonkeeper, for selling intoxicating liquor to her husband, contrary to her notice forbidding it. The declaration showed the husband’s habit of intoxication, and defendant’s knowledge of it, and plaintiff’s express notice not to sell, and a sale contrary thereto. It further averred that by reason of such drink furnished by defendant to the husband while intoxicated, his intoxication became extreme, and he attacked plaintiff while in care of her children, and hurt her by striking her with a chair on the head, whereby she was disgraced and suffered damage.
Defendant pleaded to this declaration, but on the trial objected that it set out no cause of action. It, however, sets out in the clearest terms an assault and battery by plaintiff’s husband while intoxicated by liquor furnished by defendant unlawfully in the way alleged. The assault is a definite injury, and it was connected by allegation with defendant’s wrong. That was enough to furnish a sufficient ground for damages.
Defendant also claimed the court erred in not directing the jury to find that no cause of action was made out. We think there was enough to go to the jury.
The testimony showed the habits of the husband, and that defendant had been repeatedly warned not to furnish him liquor. It further showed that defendant was a saloonkeeper, and that on the occasion in question plaintiff’s husband, having come home drunk and- made a disturbance, went out. again, followed by his son and another lad, and entered defendant’s saloon, and went up to the bar, and was furnished a glass of liquor which looked like beer, which he paid for. He then returned home, and committed the violence complained of, and was, as shown, very much intoxicated. It seems to us there was evidence from which the jury might find that the liquor furnished was intoxicating. It would be very difficult for one who did not-himself taste the liquor to prove such an offense in any other way.
Defendant objects that the court improperly shut out a conversation which he .had with the husband on the evening when the liquor is claimed to have been furnished. We need not decide how far this was admissible, as the record shows the judge actually allowed the whole to come in. We find no testimony of damages beyond those which were the natural and direct consequences of the wrong, and we think the verdict was given upon a sufficient showing in all respects, and shows no sign of extravagance or perverseness. It is a reasonable verdict.
The judgment must be affirmed.
The other Justices concurred. | [
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Sherwood, J.
The respondents in this case were charged and convicted in the St. Clair circuit for aiding one Nettie Russell to escape, who was arrested and alleged to have been in the lawful custody of the chief of police, on a warrant issued under an ordinance of the city of Port Huron, charging her and others with being disorderly persons. The information does not, in express terms, allege that the respondents knew of the arrest of the party charged, or that she was in custody, or that the respondents did the criminal act charged with an intent to aid her escape. It is claimed by respondents’ counsel these things should be averred in the information, and without such averments the information is fatally defective.
We do not agree with counsel upon this point. The statute says: “Every person who shall aid or assist any prisoner in escaping or attempting to escape from any officer or person who shall have the lawful custody of such prisoner, shall be punished by imprisonment in the county jail not more than one year, or by fine not exceeding $500.” How. Stat. § 9246. The offense contained in the information is •charged substantially in the language of the statute, and when this is done, accompanied by a statement of the facts out of which the offense arose, we think the information should be held sufficient. Any other thing necessary to be proved, in order to convict, although not stated in express language in the information, must be regarded as necessarily implied, and we do not think the information objectionable upon this ground.
Respondent claims that no arrest was proved; or, if an arrest was proved, no continued custody of the prisoner was shown, and that particularly was this true at the time the offense charged in this information is alleged to have been committed. There was testimony tending to prove both the-facts as charged, and, so far as we can discover, it was quite sufficient. In any event, it is enough to say that the jury found against the prisoner upon this subject, and we cannot disturb that finding.
The third objection is that the ordinance under which the arrest was made was prefaced as follows: “An ordinance to-restrain and prevent disorderly houses and houses of ill fame.” [Respondent claims this should have been followed with the words, “The common council of the city of Port Huron oi’dain,” and that the non-compliance with the statute in this respect rendered the ordinance void. Local Acts 1877, p. 213, § 17. We find no such consequences attached to the neglect to comply with the statute in this regal’d, contained in any of its pi’ovisions, and we do not feel called upon, in the absence of any authority wai’ranting such a construction, to apply the rule contended for in such a case as this.
The evidence produced upon the trial showing the by-law or ordinance pi’operly adopted, was the record of the proceedings of the common council of the city of Poi’t Huron, containing the record of oi’dinances passed by that body, from which it appeal’s the ordinance in question was unanimously adopted, and the proper publication thereof made. We thjnk the rulings of the court, and the charge to the jury upon this point, were correct.
Hpon the other questions raised upon the trial, and asked to have reviewed in this Court, we have failed to discover any error, and
The- judgment must be affirmed.
The other Justices concurred. | [
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Champlin, J.
This action was brought to recover damages claimed to have been sustained by the plaintiff in consequence of certain trespasses committed by the defendant on lands belonging to plaintiff, in the county of Muskegon, on and subsequent to May 1, 1882. The declaration contained two counts. One was the ordinary count in trespass, and the other a count under the statute, and upon which the plaintiff recovered.
The plaintiff’s evidence tended to show that he was the owner of the land in question; that the defendant entered upon the lands, and in 1882 cut down trees, converted them into saw-logs, and took from the lands logs to the amount of 33,712 feet, and in 1883, 33,519 feet; that he also cut and left on the ground logs to the amount of 29,810 feet. The evidence also tended to show that to obtain these logs the best timber was selected from some fourteen or sixteen acres of land, the stumpage value of which was variously estimated at from four and a half to fifteen dollars per thousand. The defendant denied the trespass of 1882; admitted that he cut timber on the plaintiff’s lands in 1883, but says “ he had a legal right to do so because the timber belonged to him by virtue of a written contract of sale executed by plaintiff to him, August 22, 1882.”
On the 8th day of May, 1882, the plaintiff made a written contract with Smith & Field, by which he agreed to sell, cut and deliver afloat in "White river, during the winter of 1SS2-83, all the merchantable pine timber then standing on certain lands, including the lands in question, providing there should be a sufficient amount of snow. In August following, the parties, Skeels and Starrett, made a contract, which the plaintiff claims was verbal, and by which he sold to defendant all the refuse pine timber on the land mentioned in the Smith & Field contract, after it had been stripped according to that contract, and with the distinct understanding that whatever the Smith & Field contract called for, Starrett was not to have, whether Smith & Field took it or not. The defendant claims the contract was in writing, and that by its terms he became the owner of all the pine tim her on the lands after Skeels had ceased to deliver logs under the Smith & Field contract.
It appears that Skeels delivered to Smith & Field, under his contract with them, all the pine from one lot of eighty acres; but that, on account of there being too much snow, he only cnt from about forty acres of the particular lot in question, leaving in the spring of 1883 some forty acres uncut, and which was estimated to contain from 700,000 to 1,000,000 feet of merchantable pine timber. The jury assessed the plaintiff’s damages at $672.91, and found specially that the trespass for which they assessed damages was voluntary and without the leave of the plaintiff. Whereupon the court trebled the damages, and entered judgment in favor of the plaintiff and against the defendant in the sum of $2017.83.
The written contract entered into between the parties must control their rights; and all evidence of contemporaneous oral agreement upon the same subject-matter, varying, modifying or contradicting the written agreement, was inadmissible. The defendant relied upon this written agreement as (1) conveying to him the timber in question; and (2) if he was mistaken in his construction of the agreement, as evidence tending to prove that the trespass was committed under a claim of ownership, and as bearing upon the question whether the damages could lawfully be trebled by the court. We do not think the written agreement conveyed to defendant the timber in question, under the facts disclosed in the record ; and as the only significance it can otherwise have is its bearing upon the action of the court in trebling the damages found by the jury, we do not think, in the disposition we shall make of that question, a new trial should be ordered on account of the error in admitting the testimony of the oral agreement.
The first and second assignments of error were based upon objections made to questions asked the witness' Joseph Stevens. The witness had testified that he saw- defendant on the land taking off the pine; that he had been upon the land since to ascertain how many trees had been cut; had made a scale of what was on the ground in 1882, and what was taken off in 1883, and on the ground. The plaintiff’s counsel then said, “ I may as well offer, then, these as the scale he made of the logs.” Defendant’s counsel inquired, “What logs?” Plaintiff’s counsel replied, “The scale of what was taken off in 1882 and 1883, and wliat remained-; I put them in as evidence.” Defendants Counsel. “ I object as incompetent. It don’t prove any logs were cut.” Plaintiff’s counsel did not read them in evidence. He then asked the witness : ■“ Tell us the 'amount you found was taken off then, in the summer of 1882.” Defendants Counsel. “I object; he has not laid any foundation, having given the witness a paper to refresh his recollection with.” The Court; “ Did you make that paper ?” Witness. “ I made it myself.” The Court. “I overrule the objection.” The defendant’s counsel excepted. The witness began answering, when counsel for defendant again objected “ that it is incompetent, under the ruling so far, or the-question put to the witness, for him to undertake to read that paper.” The court overruled the objection and the defendant excepted. The ruling was correct. The question called for the fact as to the scale of the logs. The scale was made by the witness, and he could use the scale to aid his memory. Indeed, by proving the correctness of the scale, it would be admissible as original evidence.
•Counsel for defendant claims that, before the witness testified respecting the scale of the logs, he had a right to cross-examine him thereon, and that he was denied that right. The -record discloses that it was the counsel for plaintiff who denied him that right, and not the court, and no exception was taken thereto.
Charles Serfling, another witness for plaintiff, testified as to his experience in scaling logs, and as to his having made ■a measurement and scale of the logs taken off of the land in •question by the defendant, and of the manner in which they had been taken therefrom. He was asked; “ How would the value of the timber be affected that was left, by these 149-trees being taken out, cut, and taken away ?” Objection was made by defendant’s counsel an the ground that there was nothing in the declaration that counts on anything of that kind. • The court inquired of plaintiff’s counsel if the only object was to show the increase or decrease in the value of the freehold ; and, on being answered in the affirmative, overruled the objection. In Achey v. Hull 7 Mich. 428, it was said that “ The statute in question is not framed to protect possessory rights, but was made to give to the owners of the fee a right to sue, in the form of trespass, for the enumerated injuries to their inheritance. If the tenant in possession, whether owner' or not, seeks damages for the disturbance of rights merely possessory, he is still left to his common-law action.' But here the damages which are allowed to be trebled, are not damages to the temporary possession, but to the freehold.” And it was also said that “ the statute fairly construed would include, not merely the value of the timber or wood cut, but such damages as accrued to the freehold by their destruction. When the • action is merely for carrying away timber already cut, the damages could not go well beyond its value; but when standing trees are cut down, the rule of damages should fairly be the amount of which the value of the estate is diminished by their destruction.”
The question objected to, as well as similar questions put to this and other witnesses, is clearly within the rule above laid down, and was unexceptionable. The declaration not only alleged the cutting and carrying away of timber, but also injury to the timber remaining on the land, and was a sufficient allegation of injury to the freehold or inheritance to permit proof of damage to such freehold. In this respect the declaration followed the approved form found in' Humphrey’s Precedents, framed under a statute of which ours is a substantial copy.
The witness Proctor was interrogated relative to the value of certain lumber which the evidence tended to show had been cut upon plaintiff’s land and taken to the mill where witness worked, and there sawed into lumber. He knew nothing of the value of lumber, except what they charged for it at the mill, which-was in the vicinity of the plaintiff’s land.' .An objection was.interposed as to the competency of the witness to testify as to the value of lumber' at the mill. "We think he was competent. His knowledge of the price charged for lumber at the mill would enable him to state the value of this lumber. The court, when instructing the jury, told them that, in regard to this and other testimony of value of lumber at the mill, they should only take it into account, if they found a trespass had been committed, in determining the damages which the plaintiff had sustained by reason of the cutting of the timber, and for that only.
And this leads us to the consideration of the errors alleged upon the evidence admitted to prove the plaintiff’s damage. The plaintiff claimed, in addition to the damage caused by the injury to the remaining timber upon the land described, that he was entitled to damage on account of the timber cut and removed, and that such damage was measured by the value of the timber standing, or “ stumpage,” as it is called. To prove this value he introduced evidence, against defendant’s objection, of the value of the logs and lumber made from the timber taken from this land at the mill, and also the cost and expense intermediate the timber standing and lumber at the mill, which deducted from the value at the mill, he claimed would show the real value of the stumpage. The defendant, on the other hand, claims that this result gives too high value of stumpage, inasmuch as it includes all the profits and increased value which attach to the change in the commodity and location, which represents the capital invested and the hazard of the enterprize, and which is not measured simply by the actual cost of cutting, transportation and manufacture, but includes besides the element termed “profit.”
It was said in Gilbert v. Kennedy 22 Mich. 117, which was an action of trespass, that “ To deny the injured party the right to recover any actual damages in such cases, because they are of a nature whiclreannot be thus certainly, measured, would be to enable parties to profit by and speculate upon their own wrongs, encourage violence, and invite depredation. * * And * * where, from the nature of the case, adequate damages cannot be measured with certainty by a fixed rule, all the facts and circumstances tending to show-such damages as are claimed in the declaration, or their probable amount, should be submitted to the jury to enable them to form, under proper instructions from the court, such reasonable and probable estimate as in the exercise of good sense and sound judgment they shall think will produce adequate compensation.” The method pursued by the plaintiff was proper, as in this manner the evidence tended to show the actual damage sustained by the injured party. Indeed, the value of stumpage is largely controlled by the expense which it is necessary to incur in conveying the timber from the place of cutting to the place of manufacture; and in most instances these can be arrived at or estimated with a considerable degree of certainty. The profit which results to the owner or operator from the transaction is also capable of being estimated with a like degree of certainty, and can be ascertained from the examination or cross-examination of witnesses.
The record before us shows that- the value of the stumpage was proved in various ways, from the bare opinion of its value to that which was deduced from the value of the manufactured lumber; thus affording the jury ample evidence from which to arrive at a just conclusion as to the amount of damage the plaintiff was entitled to be awarded as a compensation for the injury sustained.
The court permitted the plaintiff’s counsel, on cross-examination of defendant, to ask him if he ever made Mr. Skeels an offer for the pine that stood on that particular. eighty; and this constitutes defendant’s twenty-first allegation of error. The question was proper, as bearing upon the value of the pine before it had been cut by defendant. Dorrity v. Russell 7 Bosw. 539.
We have now commented upon the principal allegations of error, and all that require discussion, except the last, which relates to the error of the court in trebling the plaintiff’s damages; This exception we think well taken. The record does not disclose a case for trebling the damages under the statute; but as the trial was fair, and the verdict of the jury appears to be warranted by the testimony, and as we can see no reason for a different result being reached by a retrial, which evidently would be attended with a considerable expense, we shall reverse the judgment, with costs, as to the treble damages, and
Affirm the judgment for single damages in the amount found by the jury.
Campbell and Sherwood, JJ. concurred. Cooley, C. J. did not sit. | [
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Smith, J.
Plaintiff recorded a mechanic’s lien against defendants’ property March 19, 1962, and filed a complaint in court to enforce the lien on February 28, 1963, that is to say, within the 1-year period provided by statute. However, defendants were not served with process until July 9,1963. Defendants answered and interposed as an affirmative defense that service had been made upon them after expiration of the period of limitation imposed by statute. The trial court ordered the affirmative defense dismissed and stricken from the pleadings. We granted leave to appeal.
The mechanic’s lien act provides:
“Sec. 9. The several liens herein provided for shall continue for 1 year after such statement or account is recorded in the office of the register of deeds, and no longer unless proceedings are begun to enforce the same as hereinafter provided.” CLS 1961, § 570.9 (Stat Ann 1963 Cum Supp § 26.289). (Emphasis supplied.)
“Sec. 10. Proceedings to enforce said lien shall be by bill in chancery, under oath, and notice of Us pendens recorded in the office of the register of deeds, shall have the effect to continue such lien pending such proceedings.” CLS 1961, § 570.10 (Stat Ann 1963 Cum Supp § 26.290).
Defendants (appellants) say that although the mechanic’s lien act sets up the 1-year period of limitation, the act does not provide when or under what conditions the period of limitation may be tolled. They say the answer to this is found in the general procedural statute, that is, the revised judicature act of 1961, PA 1961, No 236 (CLS 1961, § 600.101 et seq. [Stat Ann 1962 ítev § 27A.101 et seg.]), more particularly that part containing the general statute of limitations. The section of the statute in question reads as follows:
“The statutes of limitations are tolled when
“(1) the complaint is filed and a copy of the summons and complaint are served on the defendant, or when
“(2) jurisdiction over the defendant is otherwise acquired, or when
“(3) the complaint is filed and a copy of the summons and complaint in good faith, are placed in the hands of an officer for immediate service, but in this case the statute shall not be tolled longer than 90 days thereafter.” (Emphasis supplied.) CLS 1961, § 600.5856 (Stat Ann 1962 Rev § 27 A.5856).
Plaintiff argues that defendants are wrong in their contention that the general statute of limitations applies in the ease herein presented where the mechanic’s lien act creates a cause of action “conditioned upon the time expressed therein.” Plaintiff relies upon Holland v. Eaton, 373 Mich 34. (4 cases in 1.) In those cases, suits were brought under the dramshop act. It contains a 2-year period of limitation. The accident occurred February 8,1960, and suit was instituted February 14, 1962, or more than 2 years after the cause accrued. In those cases, the question had to do with certain savings provisions or exceptions (i. e., infancy and refiling after dismissal not on the merits) available under the general statute of limitations in effect at that time. This Court held, among other things, that the “savings provisions” of the general statute of limitations then in effect did not operate to toll the running of the period of limitation contained in the dramshop act. We held that the intent of the legislature in including a time limitation within a statute creating a right of action was to provide that the savings provisions in the general statute of limitations would not apply unless expressly included within the statute creating the right of action, citing Bement v. Grand Rapids & I. R. Co., 194 Mich 64 (LBA1917E, 322), and Bigelow v. Otis, 267 Mich 409.
In order to understand better the significance of Holland v. Eaton, supra, we discuss briefly the two cases principally relied upon in Holland. These cases are Bement and Bigelow, cited above. In Bement, suit was brought under the Federal employer’s liability act for personal injuries more than 2 years after the cause of action accrued. The statute contained a 2-year period of limitation. "When the limitation was interposed as a defense, plaintiff rejoined with the contention that defendant company was estopped from asserting the limitational bar because of fraudulent conduct by defendant. In resolving the question raised by the estoppel plea, this Court made the following distinction:
“A positive distinction seems to be made between cases in which the limitation of time for bringing suit is contained in the statute which creates the liability and right of action and general statutes of limitations of the rights of action existing under other statutes or under the common law. In the former the limitation of time is a limitation of the right, and, as has been said, the suit cannot be maintained if not brought within the time limited. In the latter the limitation of time for bringing suit is a limitation of the remedy only, and it has been held that under such general statutes of limitation the defendant may be estopped from the benefit of the statute by an agreement waiving it, or by concealment or by fraud. The statute here in question creates a new liability, and takes away defenses formerly available, and the right of action therein created is conditioned upon its enforcement within a prescribed period.” (Emphasis supplied.)
In the other case cited in Holland, the case of Bigelow v. Otis, supra, suit for rescission was brought under the blue sky statute more than 2 years after the cause accrued. The principal defense was the 2-year period of limitation contained in the statute. To defendant’s plea, plaintiff replied that the 2-year period of limitation was extended because of defendant’s fraudulent concealment of facts constituting the cause of action and by defendant’s absence from the State. The opinion pointed out that the two savings provisions were found in the general statute of limitations but not in the blue sky statute. We held that the general statute of limitations (p 412) “and the saving provisions therein have no application to a cause of action created by statute and conditioned on time therein expressed.”
Such cases are distinct and distinguishable from the case at bar. W e are not here concerned with the type of “savings provisions” or “exceptions” present in Holland, Bement, and Bigelow, if we are concerned with them at all. In Holland, the “savings provisions” had to do with infancy and the right to refile after dismissal not on the merits. In Bement, it was estoppel based upon fraud, and in Bigelow, fraudulently concealing a cause of action and absence from the State. What is most significant in each ease cited is that plaintiff commenced action after the limitational period contained in the statute creating the cause of action. And in each case, plaintiff asserted matters which, if true, would excuse the late filing and, hence, except plaintiff from the operation of the statute.
But the instant case is different in several important aspects. First, there is the mechanic’s lien act which is a statute creating a right of action and in- eludes a period of limitation therein. The section of the act which sets forth proceedings for enforcing a lien provides that this shall he accomplished “by bill in chancery, under oath, and notice of lis pendens recorded in the office of the register of deeds,” and this being done, it “shall have the effect to continue such lien pending such proceedings.” But, as defendants point out, the statute is silent as to how and when process is to be issued and served and, if not, what happens. For an answer to this, they say reference must be made to the general statute of limitations contained in the revised judicature act quoted above. But before discussing this act, it is better, sequentially, to discuss plaintiff’s position on this point.
Plaintiff says that under the mechanic’s lien act, when a complaint and lis pendens are filed within 1 year, “the case is thereby commenced.” Further, plaintiff says that the “savings provisions,” or “tolling provisions,” of the general statute of limitations do not apply. Thus the implication is clear, although plaintiff stops short of saying it, that once complaint and lis pendens are filed within 1 year, there is nothing in the law which permits the period of limitation to begin to run again, irrespective of when process is served. In general support of this position, plaintiff cites Sheridan v. Cameron, 65 Mich 680, decided upon the mechanic’s lien law as it was in 1885. In that case, a petition was filed to enforce a mechanic’s lien within the then 60-day statutory period. Process was not requested and, hence, not issued at that time, but was issued after expiration of the 60-day period. Attack was made upon the suit to enforce as having been “prosecuted too late and irregularly.” This Court said that the bill or petition is the beginning of suit and that service of process is (p 682) “only a step in the cause. If this were not so,” the Court reasoned, “a mechanic’s lien could never be enforced against an absent defendant who would need to be brought in by publication. The 60 days would elapse before service [could be] legally completed. * * * When the statute required proceedings to be begun within 60 days, it means no more than the filing of the proper bill or petition, leaving-all other questions to be disposed of by the general rules of equity.” The Court permitted the petition to be maintained.
Whatever may be said of the rule enunciated in Sheridan v. Cameron, supra, it is clear that it is no longer the law, insofar as it leaves the issuance and service of process to “the general rules of equity.” Nor was the change all accomplished in the revised judicature act of 1961. But it would be somewhat pedantic to discuss all of the decisions on this point, when the problem herein presented comes down squarely to the question of whether the provisions of the revised judicature act of 1961 (RJA), more particularly the section quoted in the forepart of this opinion, apply and control in a proceeding to enforce a mechanic’s lien, at least insofar as service of process, or the lack thereof, may toll a period of limitation. We think that it does.
As has been seen, much of the discussion in the Holland, Bement, and Bigelow cases revolves about the effect of the so-called “savings provisions” in the general statute, such as infancy and estoppel for fraud. The phrase “savings provisions” is used in the Michigan opinions interchangeably with “exceptions.” But in this case, we are not dealing in “ex ceptions” nor “savings provisions,” except in the most general sense. These terms are of little usefulness in understanding the tolling provisions (as to process) applicable in this case. Therefore, Holland, Bement, and Bigelow, supra, are best understood by reference to the facts in each case, especially as to when suit was commenced. In each case, the suit was commenced after expiration of the period of limitation contained in the statute giving rise to the cause of action. In each case, reliance was placed upon “savings provisions” (infancy, fraud, et cetera) in the general statutes of limitation. In each case, the ruling was approximately the same. This we do not intend to disturb. We do not construe, however, either Holland, Bement, or Bigelow as being decisive of the issue before us.
We do say that the 1-year period of limitation in the mechanic’s lien act is a matter of substance and that said limitation is, therefore, a limitation of the right. Bement v. Grand Rapids & I. R. Co., supra. However, the mechanic’s lien act clearly does not deal with the necessary procedural problem of how process is to be issued and served and, if not, what happens then. One has to look to the general procedural statute, the revised judicature act of 1961 (RJA), for resolution of this problem. Procedural distinctions between law and equity having been abolished, it is clear that the general procedural statute applies to law actions as well as equitable actions. Within the broad sweep of the EJA, therefore, if the rule in Sheridan v. Cameron, supra, (of leaving process questions to “the general rules of equity” in mechanic’s lien proceedings) had not been already abolished by subsequent statutes and dem sions, it certainly can no longer be said to exist under the RJA and related court rules (General Court Rules of 1963).
Accordingly, reading the mechanic’s lien act in conjunction with the section of the EJA quoted, as applied to facts in this case, the rule goes this way: proceedings to enforce such lien shall be by complaint, under oath, and notice of lis pendens recorded in the office of the register of deeds, which shall have the effect of continuing such lien pending the proceedings. However, the period of limitation is tolled when the complaint is filed and a copy of the summons and complaint in good faith, are placed in the hands of an officer within the 1-year period of limitation for immediate service, but the statute shall not be tolled longer than 90 days thereafter. To except mechanic’s lien proceedings from the tolling provisions of EJA would only precipitate a hodgepodge of exceptions which would do considerable violence to legislative intent. The legislature intended the EJA to apply to all civil actions and, except in situations where manifestly inapplicable, should be so construed. Needless to say, nothing in the mechanic’s lien act conflicts with this interpretation. Further, that the particular section in question, the tolling section, was intended to apply in the situation presented may be seen from the committee comment appearing after said section. Obviously, for the purpose of tolling a period of limitation under the circumstances herein presented, we make no distinction between the general statutes of limitation and particular “periods of limitation” contained in specific statutes creating causes of action.
Applying the facts in this case to the rule stated above, we conclude first of all that the BJA which became effective January 1, 1963, applies to this proceeding begun February 28, 1963; that when the action was commenced February 28, 1963, by filing of the complaint, assuming complaint and summons in good faith were placed in the hands of the officer for immediate service and lis pendens was recorded, the lien was continued pending the proceedings, subject however to the following: when the action was commenced, it served to toll the 1-year period of limitation contained in the mechanic’s lien act but only for a maximum of 90 days from commencement of the action. Thereafter, the period of limitation started to run again, that is, May 30, 1963. Plaintiff then had the additional time, measured between February 28th and March 19th, or 19 additional days after May 29th in which to make service. Not having made service upon defendants until July 9, 1963, the period of limitation had run against plaintiff. For the reasons given, the trial court was in error in dismissing and striking defendants’ affirmative defense.
The order of the trial court is reversed for the entry of an order consistent with this opinion. Costs to defendants.
O’Hara and Adams, JJ., concurred with Smith, J.
Black, J., concurred in result.
Effective date of the act was January 1, 1963.
Also known as the Michigan civil damage act. CL 1948, § 436.22, as amended by PA 1958, No 152 (Stat Ann 1959 Cum Supp § 18.993).
35 Stat 65, 45 USCA, § 51 et seq.—Reporter.
CLS 1961, § 451.101 et seq. (Stat Ann 1964 Rev § 19.741 et seq.). —Reporter.
See judicature act of 1915, as amended (CL 1948, § 600.1 et seq. [Stat Ann § 27.1 et seq.]), and Taylor v. Mathews, 224 Mich 133; People’s Mortgage Corporation v. Wilton, 234 Mich 252; Home Savings Bank v. Young, 295 Mich 725; Nathan v. Rupcic, 303 Mich 201; and Korby v. Sasnowski, 339 Mich 705.
This may confuse, because the terms have different derivations in the law. To “save” the statute of limitation originally meant to commence one’s action within the statutory period, Black’s Law Dictionary (3d ed), p 1583, while pleas of infancy and estoppel were and are most generally considered “exceptions.” See 34 Am Jur, Limitation of Actions, § 192, p 155; and 54 CJS, Limitations of Actions, § 375, p 509. However, for the purpose of this decision, we need not make a distinction between the 2 expressions.
See Const 1963, art 6, § 5.—Reporter.
The bench, bar, and people of Michigan are tremendously indebted to the Joint Committee on Michigan Procedural Revision and particularly Professor Charles W. Joiner, chairman, and Mr. Jason L. Honigman, viee-ehairman, for their monumental 3-1/2 years’ work resulting in the revised judicature act of 1961 (RJA) adopted by the legislature, and its companion work, General Court Rules of 1963 (GCR 1963), adopted by this Court, both of which became effective January 1, 1963.
“Section [PA 1961, No 236, § 5856 (CLS 1961, § 600.5856 [Stat Ann 1962 Rev § 27A.5856])] is designed to avoid the problems which .have commonly arisen in those jurisdictions lacking such a section, as to precisely at what point the statutes of limitation are tolled. ***
“It is submitted that permitting the determination of when an action is commenced as to toll the statutes of limitations ought not to depend on a particular court’s interpretation of such tenuous words and phrases as ‘intent,’ ‘due course,’ ‘reasonable diligence,’ et cetera. Therefore, the instant section has been included in the statute of limitations in order that the question might be definitely settled without resort to case law.
“The mere aet of filing a eomplaint should not toll the statute, as a matter of policy. The section does not aecept the theory of the case as cited above. It is unrealistic to argue that defendants are put on notice of a lawsuit merely because a public court record exists to that effect. The defendant has a vital interest in being informed of the pendency of an aetion against him. Thus we have sought to enable a plaintiff to avoid the bar of a statute of limitation by taking the proper steps of establishing a court record (filing the complaint) and complying with the requirements of a method reasonably calculated to give defendant notice. At the same time, we have required the plaintiff to proseeute his action diligently by the imposition of a maximum tolling period. The rights of both parties are thus protected. * * *
“The section does not constitute any radical departure from presently accepted principles, but it prescribes a definite procedure to be utilized wherein counsel are informed of the necessary steps which will guarantee the tolling of the statute of limitation. The adoption of this section will greatly increase predictability.
“In summary, a method has been provided whereby a plaintiff, by taking the proper steps, can toll the statute of limitation on his cause of action for a maximum period of 90 days. The establishment of a maximum toll period should eliminate the litigation-provoking questions as to whether or not a plaintiff ‘intended’ to ‘diligently prosecute’ his suit, as bearing on the issue of how long the statute could be tolled by placing a copy of the summons and complaint in good faith in the hands of an officer for service.
“Example: Suppose a two-year statute of limitation. P files a complaint one year and 11 months after the cause of action arose. On the same day a copy of the summons and eomplaint are in good faith placed in the hands of an officer for service. Actual service is made 100 days later. Can D plead the two-year statute as a bar to the action?
“No — the statute was tolled for 90 days when P filed a eomplaint and in good faith placed a copy of the summons and eomplaint in the hands of an officer for service. At the end of the 90-day period, the statute again started to run at this point P still had 30 days in which service could be made (the two-year statute minus one year and 11 months) and service was actually made on the tenth of these 30 days left. If the service had been made 121 days after the filing of the complaint D could have pleaded the statute of limitations as a bar to the action.”
For a most comprehensive discussion of general statutes of lim itation and of specific limitations within statutes creating causes of aetion, see 63 Harv L Rev 1177. See, also, Committee Notes, PA 1961, No 236, § 5801 (CLS 1961, § 600.5801 [Stat Ann 1962 Rev § 27A.5801]).
See PA 1961, No 236, § 2701 (CLS 1961, § 600.2701 [Stat Ann 1962 Rev § 27A.2701]). | [
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Per Curiam.
One of our new rules of court is headed “Third-Party Practice.” It is cited properly as GCR 1963, 204. Under its auspices appellant Hertel-Deyo, employer of plaintiff Claude A. Husted up to the time of sustenance by the latter of personal injuries upon which he declares, was drawn ex parte into these consolidated Midland county lawsuits. Hertel-Deyo moved promptly for summary dismissal of the primary defendant’s third-party complaints and, upon leave granted, reviews an order denying said motion. The order of denial is quoted in full, infra.
Plaintiff Claude A. Husted declared under the 1952 amendment (PA 1952, No 155 [CLS 1961, § 413.15; Stat Ann 1960 Kev § 17.189]) against primary defendant Consumers for personal injuries sustained December 3, 1959, during the course of his work for Hertel-Deyo. Plaintiff Marie Husted, wife of plaintiff Claude, declared against Consumers for loss of consortium and companionship occasioned by the same injuries. The suits were commenced November 13,1962.
The declarations allege that plaintiff Claude A. Husted was working at the bottom of an excavation made for the purpose of constructing a new bridge ; that the work required lowering of buckets of mixed cement to him by means of an overhead crane operated by a fellow employee; that on account of specified acts of negligence of defendant Consumers “the crane boom came into contact with some electrical poles, wires and apparatus, owned, operated, controlled and maintained by defendant” [Consumers]; that the overhead wires thus owned and maintained by Consumers were both negligently energized and negligently maintained and, on account of such contact, that he was electrically shocked to unconsciousness and severely injured.
The third-party complaints allege duty of third-party defendant Hertel-Deyo and breach of such duty “in the operation of said crane, boom, and bucket so as to prevent the same from coming in contact with the electric lines of the said defendant and third-party plaintiff so as to prevent injury to persons in and about the construction project including the plaintiff, Claude A. Husted.” Such third-party complaints go on to allege the purely legal conclusion that, in the event of entry of judgments for the plaintiffs “against the defendant and third-party plaintiff,” the third-party defendant would, “on principles of indemnity and otherwise, be liable therefor to this defendant and third-party plaintiff.”
Orders granting leave to implead Hertel-Deyo as third-party defendant having entered, the latter moved for summary dismissal assigning failure of the third-party plaintiff to state, in the third-party complaints, claims upon which relief could be granted. Plaintiffs supported the motion. Judge Holbrook denied it. The difficulty of decision faced by the judge was and now is highlighted by unusual provisos which, upon insistence of the judge, appear in such order:
“It is hereby ordered, that said motions be and the same are hereby denied; provided, however, if the defendant Hertel-Deyo Company is found to be negligent in the trial of this matter, and a judgment is rendered against the Hertel-Deyo Company, the amount of liability of the defendant Hertel-Deyo Company to the plaintiff and/or the defendant Consumers Power Company, by right of contribution, indemnification, or otherwise, shall not be in excess of the amount of workmen’s compensation benefits paid or payable to the plaintiff, at the time such judgment is rendered; and provided, however, if the defendant Hertel-Deyo Company for itself and on behalf of its workmen’s compensation carrier will file in said cause a disclaimer of any right to reimbursement for compensation paid and to be paid the plaintiff Claude A. Husted, said motion for summary judgment and to dismiss may then be renewed and will be granted.”
The decisive question brought to review is whether the third-party plaintiff’s complaints state causes upon which, relief may be granted. We hold they do not.
Some preliminary observations are in order. The first is made by reference to specific comment Honigman & Hawkins have appended to the third-party rule. They say of the rule, and we agree (1 Honigman and Hawkins, Michigan Court Rules Annotated, p 508):
“Rule 204 does not create substantive rights. The substantive basis for defendant’s claim against the third-party defendant must be found elsewhere before the rule becomes operative. That basis may be found in principles of indemnity, subrogation, contribution, warranty, or other substantive right.”
The next is that the substantive rights and liabilities of all present parties are determinable properly according to the law as it stood when the causes alleged by the two plaintiffs accrued in 1959. At that time, and quite aside from the remedies equity then provided (and yet provides despite the “merger” of law and equity) for reimbursement, subrogation, exoneration, and indemnity (see authorities considered in Hack v. Concrete Wall Co., 350 Mich 118 at 123-126; Hack Investment Co. v. Concrete Wall Co., 356 Mich 416, 421-423, and Ellis v. Phillips, 363 Mich 587), the only remedy available to a joint tort-feasor against his brother in guilt was by chancery action for contribution taken in pursuance of the act of 1941 (CL 1948, § 691.561 et seq. [Stat Ann 1959 Cum Supp § 27.1683(1) et seq.]). The act of 1941 was changed in minor degree (to accommodate the new procedure only and not to change the substance) and re-enacted as section 2925 of the revised judicature act of 1961 (CLS 1961, § 600.2925 [Stat Ann 1962 Rev § 27A.2925]).
First: Has Consumers pleaded a right to indemnity?
This must be the essence of Consumers’ position as third-party plaintiff. It relies particularly on Blackford v. Sioux City Dressed Pork, Inc., 254 Iowa 845 (118 NW2d 559). Blackford’s specific underpinning is Ryan Stevedoring Co., Inc., v. Pan-Atlantic Steamship Corp., 350 US 124 (76 S Ct 232, 100 L ed 133). Neither case has application here, there being no allegation by Consumers upon strength of which this Court might conclude that a contractual relationship, express or equitably implied, for indemnity by Hertel-Deyo in favor of Consumers, existed at the time plaintiff was injured.
The specific link between Blackford and Ryan appears in the beginning sentences of division IV of Blackford’s opinion (p 852) :
“An authority directly in point on its facts and law is Ryan Stevedoring Company v. Pan-Atlantic Steamship Corporation, supra. It was there held that the action over against the employer by the third party held negligent to the employee, was not based upon the employer’s negligence, but on its breach of a duty owed by the employer to the third party arising out of the contract between them.” (Italics by present Court.)
Bef erring back to Ryan: The Supreme Court based its decision upon the fact of a contract of indemnity, saying (p 130) :
“In the face of a formal bond of indemnity this statute clearly does not cut off a shipowner’s right to recover from a bonding company the reimbursement that the indemnitor, for good consideration, has expressly contracted to pay. Such a liability springs from an independent contractual right. It is not an action by or on behalf of the employee and it is not one to recover damages ‘on account of’ an employee’s ‘injury or death.’ It is a simple action to recover, under a voluntary and self-sufficient contract, a sum measured by foreseeable damages occasioned to the shipowner by the injury or death of a longshoreman on its ship.”
The dissenting opinion of Ryan, dealing as it does with the legal position of an employer sued as here by third-party complaint, is of interest as we pass to the main question of effect upon this third-party complaint of the Michigan workmen’s compensation law. That opinion was prepared by Mr. Justice Black. It bears, with his signature, the signatures of Chief Justice Warren and Justices Douglas and Clark.
On pages 140 and 141 of the report, after having depicted what employers gain and what they lose by the principle of workmen’s compensation, and then having alluded to the right of third-party suit which the longshoremen’s and harbor workers’ compensation act provides in favor of injured employees, the opinion proceeds to conclusion that there was not in fact a contract for indemnity by plaintiff Palazzolo’s employer in favor of the third-party shipowner which paid Palazzolo’s judgment. Upon that conclusion the four Justices held (p 141):
“But the end result here is that this employer is actually mulcted in damages because its employee successfully prosecuted a third-party action. Liability is thus imposed because of the negligence of the employer’s other employees. This the act forbids. Whether called ‘common-law indemnity,’ ‘contribution,’ ‘subrogation,’ or any other name, the re- suit is precisely the same. The employer has to pay more ‘on account of’ an injury to his employee than congress said he should.
“I agree, of course, that if the employer here had made a contract, oral or written, agreeing to hold this shipowner harmless or to indemnify the shipowner against liability for injuries to petitioner’s employees caused by the shipowner’s negligence in whole or in part, the contract would have been valid and indemnity could have been obtained. For the longshoremen’s act does not forbid employers under it to make independent agreements to indemnify others.”
Thus the only reason the shipowner succeeded with its action for indemnity against the employer was on account of majority finding that the employer had contracted to indemnify the shipowner. In the case before us there is, of course, no claim that Hertel-Deyo correspondingly contracted to indemnify Consumers. And we cannot accept Consumers’ bare legal conclusion, that Hertel-Deyo’s negligence was “active” and Consumers’ negligence was “passive,” as framing an issue for determination of the presence of a contract of indemnity, or of a tort-created right to indemnity (as in Westchester Lighting Co. v. Westchester County Small Estates Corp., 278 NY 175 [15 NE2d 567], cited by Consumers). On this record, looking at the two declarations in array with the two third-party complaints, one can only conclude that Consumers and Hertel-Deyo would, in the absence of intervention of a workmen’s compensation law, be deemed joint tort-feasors.
Refer to Chief Judge Learned Hand’s regularly quoted opinion of Slattery v. Marra Brothers (CA 2), 186 F2d 134. In that case most of the authorities cited by Consumers (Winchester, supra, included) were duly distinguished. Marra Brothers, sued for personal injuries by Spencer & Son’s em ployee Slattery, sought by third-party complaint full indemnity from Spencer & Son. Marra Brothers’ allegations were much the same as those of Consumers here. Having conceded, “at least when the putative indemnitor is not protected by a compensation act,” that some courts have based indemnity merely upon a difference between the kinds of negligence of the two tort-feasors (giving as an instance where the negligence of the indemnitee is “passive” and that of the indemnitor is “active”), the court reached a conclusion this Court supports (p 139):
“So far as we can see therefore there is no body of sure authority for saying that differences in the degrees of fault between two tort-feasors will without more strip one of them if he is an employer, of the protection of a compensation act; and we are at a loss to see any tenable principle which can support such a result.”
There is here no pleading by Consumers of any right to indemnity. Indemnity arising from tort, unlike contribution, is available only when the party appealing therefor is able to plead and prove freedom on his part from personal fault. This third-party plaintiff has pleaded no conclusions of fact which, if proved, would justify a finding or verdict that it was free from such fault. See Indemnity Insurance Co. of North America v. Otis Elevator Co., 315 Mich 393 (171 ALR 266) ; also this key sentence appearing in another case upon which Consumers depends (Lunderberg v. Bierman, 241 Minn 349, 354 [63 NW2d 355, 359, 43 ALR2d 865, 871]):
“The whole doctrine of indemnity rests upon the proposition that, when one is compelled to pay money which in justice another ought to pay, the former may recover of the latter the sum so paid unless the one making the payment is barred by the wrongful nature of his conduct.”
Second: May Consumers have contribution, against Eertel-Dayo, the workmen’s compensation law considered?
Refer to Wall v. Studebaker Corp., 219 Mich. 434. When Wall was decided in 1922, part 1, § 4 of the act (CL 1915, § 5426 [CL 1929, § 8410, Stat Ann § 17.144]) was relied upon and emphasized by the Court as now indicated (p 437):
“Any employer who has elected, with the approval of the industrial accident board, hereinafter created, to pay compensation as hereinafted provided, shall not be subject to the provisions of section 1; nor shall such employer be subject to any other liability whatsoever, save as herein provided for the death of or personal injury to any employee, for which death or injury compensation is recoverable under this act, except as to employees who have elected in the manner hereinafter provided not to become subject to the provisions of this act.”
By the amendment of 1943 (PA 1943, No 245) said section 4 of part 1 presently reads (CL 1948, § 411.4 [Stat Ann 1960 Rev § 17.144]):
“Sec. 4. Where the conditions of liability under this act exist, the right to the recovery of compensation benefits, as herein provided, shall be the exclusive remedy against the employer.” (Italics by presently seated Court.)
The words of the statute stressed by the Court in Wall, and the unanimous opinion of Wall, make up the best evidence of presently sought legislative intent. When the workmen’s compensation law was studied and legislatively considered, prior to and during the year of enactment (1912), it would seem that the primordial intent of all participants was that the quo to be received by the employer in return for his quid would be outright and absolute immunity from liability (except as provided in the act) stemming from each compensable injury. True, the legislative assembly may not have foreseen today’s specific question and so may have had no specific intent with regard thereto. Nonetheless, according to Wall, that body made it clear that an employer operating under the act and paying compensation as required thereby should not — on account of or as a result of the compensable event— be subjected “to any other liability whatsoever.”
Wall's opinion was signed by Justices Bird and Fellows. . Justice Bird was “there” when the workmen’s compensation law was studied and debated prior to and during the year of enactment, first as attorney general and then as Justice of the Court (161 Mich iii). Justice Fellows was elected attorney general in 1912 (173 Mich iii) and continued to hold that office until elected to the Court in 1916 (194 Mich iii). Closer then to the legislature than obtains today, the attorney general was the legal adviser — exclusively and in fact — of the legislative branch. He of that day must be held as knowing much more about the legislative intent of the times than we can separately ascertain.
Bearing in mind that legislative intent is determinable properly by what was at the time of enactment, rather than what might appear a half century later — by hindsight (Wayne County Road Commissioners v. Wayne County Clerk. 293 Mich 229, 235; Platt v. Union Pacific R. Co., 99 US 48, 63, 64 [25 L ed 424]; 50 Am Jur, Statutes, § 236, p 224), we depend much upon what members of the Court wrote at the time of or shortly after enactment of statutory provisions which, considered then as to purpose and intent, have remained unamended in substance (see comment, Dyer v. Sears, Roebuck & Co., 350 Mich 92, 95). Pursuing these doctrines, the Court’s ruling in the Wall Case must be regarded as controlling. If, in 1922, it appeared to the Court that section 5426 (of the compiled laws of 1915) was intended, in event of industrial injury to a minor, to destroy the separate right of action of that minor’s parent, we suffer no trouble in holding that the same section has destroyed the cause for contribution this third-party plaintiff claims.
Turning now to the clear weight of authority outside Michigan; authority dealing with contribution distinguished from indemnity. When Larson’s original work was written and published, that recognized authority considered the cases and their reasoning under this introductory paragraph (2 Larson’s Workmen’s Compensation Law, § 76.21, pp 230, 231) :
“The great majority of jurisdictions have held that the employer whose concurring negligence contributed to the employee’s injury cannot be sued or joined by the third party as a joint tort-feasor, whether under contribution statutes or at common law. The ground is a simple one: the employer is not jointly liable to the employee in tort; therefore he cannot be a joint tort-feasor. The liability that rests upon the employer is an absolute liability irro spective of negligence, and this is the only kind of liability that can devolve upon him whether he is negligent or not. The claim of the employee against the employer is solely for statutory benefits; his claim against the third person is for damages. The two are different in kind and cannot result in a common liability.”
The editorial writers of American Law Reports, agreeing fully with Larson’s analysis, have prepared a similar brief (“Effect of workmen’s compensation act on right of third-person tort-feasor to recover contribution from employer of injured or killed workman,” 53 ALR2d 977).
In addition to the above, see Larson’s 1964 cumulative supplement of volume 2, p 219, “§ 76.21 Majority rule; no contribution by employer,” and recent cases considered therein; also the most recently delivered volume of American Jurisprudence 2d (18 Am Jur 2d, Contribution, § 48, pp 69, 70). This last supports the majority rule and reads:
“This conclusion has been usually predicated on the fact that the employer and the third person are not under a common liability to the injured or killed workman, since the employer’s liability is imposed, as well as limited, by the provisions of a workmen’s compensation act, while that of the third-person tort-feasor rests on the principles of negligence.”
One of the most valuable decisions found in foregoing annotations is Baltimore Transit Co. v. State, 183 Md 674 (39 A2d 858, 156 ALR 460). Holding that an employer’s liability, resulting from industrial injury to his employee, is confined exclusively to the liability fixed by the workmen’s compensation law, the court went on to decide whether the Maryland joint tort-feasors act of 1941 (a duplicate in substance of our PA 1941, No 303 ) authorized “the joinder of a conforming employer whose negligence caused or contributed to the happening of an accident.” The holding (p 679) was that “the act is only applicable to a situation where there is a common liability to an injured person in tort”; also that “The right of contribution is a derivative right and not a new cause of action.”
Thus if Husted could not sue his employer (Hertel-Deyo), and we know he could not, Hertel-Deyo and Consumers cannot be joint tort-feasors by law. Consumers therefore cannot sue Hertel-Deyo for contribution should it be held to respond to plaintiffs in damages. See the reasoning of Baltimore Transit, supra; also the recent searching decisions of United Air Lines, Inc., v. Wiener (CA 9), 335 F2d 379 and General Dynamics Corp. v. Adams (CA 5), 340 F2d 271.
To conclude: "We carefully avoid deciding that there cannot be, in any circumstances of noncontractual relationship between a sued defendant and the plaintiff’s employer, recovery over against the employer. See discussion of this feature of the question by Larson, “C. Contract-type remedy in recovery over; noncontractual relation between parties.” (2 Larson 1964 Supp at pages 217-219.) An obligation to reimburse can be implied by equitable principles, provided always the relator is without personal fault. Loss occasioned by vicarious liability, there being no such personal fault of the one seeking indemnity or reimbursement, is an example. See Lunderberg v. Bierman, supra, 352, and appli cation in that case of Restatement’s principle (Restatement, Restitution, § 96, p 418); also the Cooley quotation appearing in Township of Hart v. Noret, 191 Mich 427, 432 (LRA 1916F 83). In the case at bar, however, Consumers has supplied nothing upon which such an obligation may be implied. Nor has it pleaded anything in the nature of an agreement to indemnify, as in the Ryan Stevedoring Case.
Reversed and remanded for entry of order dismissing the primary defendant’s third-party complaints. Plaintiffs and appellant Hertel-Deyo Company shall have costs on appeal.
Although we deem such a provision needless, Consumers may if desired have included in the order of dismissal a declaration of no prejudice to its original right, if any, to recover over against Hertel-Deyo should it be compelled to satisfy — in whole or in part — -any judgment or judgments these plaintiffs may recover in the causes now at issue.
T. M. Kavanagh, C. J., and Dethmers, Black, Souris, Smith, O’Hara, and Adams, JJ., concurred.
Kelly, J., concurred in result.
See Joiner, The Union of Law and Equity, 55 Mich L Rev, p 1059.
33 USCA, § 901 et seq., specifically the 1959 amendment, 33 USCA, 1964 Cum Poeket Part, § 933. The Ryan ease arose before the amendment, and the insurance carrier for employer was to be reimbursed for sums advanced.—Reporter.
33 USCA, § 901 et seq., specifically the 1959 amendment, 33 USCA, 1964 Cum Pocket Part, § 933. The ttyan case arose before the amendment, and the insurance carrier for employer was to be reimbursed for sums advanced.—Reporter.
This is the same right as was provided by amendment of our act m 1952 (CLS 1961, §413.15 [Stat Ann 1960 Rev §17.189]).
Followed expressly in Varga v. Detroit Edison Co., 240 Mich 593, 594, and Moran v. Nafi Corporation, 370 Mich 536, 539, 545.
See description of the continuing study of the act, prior to enactment thereof, in Mackin v. Detroit-Timkin Axle Co., 187 Mich 8, 14, 15.
“Interpretation is often spoken of as if it were nothing but the search and the discovery of a meaning which, however obscure and latent, had none the less a real and ascertainable pre-existence in the legislator’s mind. The process is, indeed, that at times, but it is often something more. The ascertainment of intention may be the least of a judge’s troubles in ascribing meaning to a statute. ‘The faet is,’ says Gray in his lectures on the ‘Nature and Sources of the Law,’ ‘that the difficulties of so-called interpretation arise when the legislature has had no meaning at all; when the question whieh is raised on the statute never occurred to it; when what the judges have to do is, not to determine what the legislature did moan on a point which was present to its mind, but to guess what it would have intended on a point not present to its mind, if the point had been present,’ ” Cardozo, The Nature of the Judicial Process, pp 14, 15.
CL 1948, §§ 691.561-691.564 (Stat Ann 1959 Cum Supp §§ 27.1683 [1]-27.1683 [4]), repealed 1961. See, currently, CLS 1961, § 600.2925 (Stat Ann 1962 Rev § 27A.2925). — Reporter.
The Maryland supreme eourt quoted, from a committee report, one of those rare epigrams of the law which succeeds in saying it all in one short sentence (p 680) :
“The common obligation contemplated by this act is the common liability of the tort-feasors to suffer adverse judgment at the instance of the injured person whether or not the injured person elects to impose it.” | [
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Souris, J.
In this appeal plaintiff challenges the validity of PA 1959, No 266. Pursuant to legislative authorization purportedly contained in that act, by its amendment of section 14 of the general property tax law, the defendant township assessed plaintiff corporation taxes in the amount of $63,000 for the 1961 tax year upon the value of personal property consisting of machinery and equipment in plaintiff’s possession on December 31, 1960, the tax day, which it was using in the performance of government contracts, but title to which machinery and equipment was in the United States government. Plaintiff paid the tax thus assessed under protest and commenced an action at law to recover such taxes. Upon adverse judgment below, this appeal was taken.
Act No 266 amended section 14 of the general tax law by adding the words “and personal property not otherwise taxed under this act which is in the possession of any person, firm or corporation using same in connection with a business conducted for profit shall be deemed the property of such person for taxation and assessed to him accordingly.”
The subject of Michigan’s taxation of defense production facilities owned by the Federal government but in the possession and use of private contractors and subcontractors of the government has been the subject of much litigation in State and Federal courts and it has generated a substantial volume of judicial and scholarly comment. The specific issue presented in this appeal relating to the effect of PA 1959, No 266 is, however, a matter of first impression, although some comment by way of obiter dicta was made with respect thereto in Continental Motors Corporation v. Township of Muskegon, 365 Mich 191, and General Motors Corporation v. City of Detroit, 372 Mich 234. Broadly stated, the issues presented in the parties’ oral arguments and in their briefs include the nature of the tax authorized by Act No 266, whether ad valorem or specific; the measure of the tax, whether the true cash value of the property possessed and used or of the right to possession and use; and the constitutionality of the tax the ultimate burden of which, although assessed and initially paid by plaintiff as possessor and user of the government’s personal property, will be borne by the Federal government which itself is constitutionally immune from direct taxation by the States.
In Continental Motors Corporation v. Township of Muskegon, 365 Mich 191, supra, we held that prior to PA 1959, No 266, our legislature had not authorized a tax on possessory rights or other limited interests in personal property. We said, in Continental, that by enactment of Act No 266 the legislature authorized a tax on beneficial rights in personal property such as were involved there (365 Mich at 199) and as are involved here. Later in the opinion, at p 200, we said that since 1959 possessory interests in personal property, otherwise exempt from taxation, have been made taxable. Now in the case at bar, the issue being squarely before us for decision, we must determine the constitutional validity of that which we said the legislature sought to accomplish by Act No 266.
The major thrust of appellant’s attack against Act No 266 is that it imposes an ad valorem tax upon the interest of a possessor and user of another’s tax-exempt tangible personal property measured by the cash value of the tangible property rather than by the cash value of the possessor’s interest therein. Appellee meets this attack principally by contending that the possessory interest is an interest in the property which interest is subject to an ad valorem tax and, because such interest includes the right to use the property in a private business conducted for profit, its value for such tax purposes is equivalent to the cash value of the tangible property. Other arguments are advanced, pro and con, but in the view we take of Act No 266 none of the arguments advanced need be considered for purposes of decision.
When Continental Motors Corporation v. Township of Muskegon, 365 Mich 191, supra, was decided, Act No 266 was not before the Court for determination of its constitutional validity. Nonetheless, by way of obiter dictum, we suggested, at p 200, that it was of significance that Act No 266 was cast in the pattern of an ad valorem tax rather than in express language of a specific tax upon possessory interests. Earlier, by separate legislative enactment of PA 1953, No 189, the legislature imposed a new tax upon possessory interests in another’s tax-exempt realty when such realty is used in a business conducted for profit. This new tax has been held to be a specific or excise tax upon the privilege of possession and use and not an ad valorem tax on the realty itself notwithstanding the measure of the tax is the cash value of the realty. United States v. City of Detroit, 345 Mich 601, 608, aff’d 355 US 466 (78 S Ct 474, 2 L ed 2d 424) (1958), and Township of Muskegon v. Continental Motors Corporation, 346 Mich 218, 222, aff’d sub nom United States v. Town ship of Muskegon, 355 US 484 (78 S Ct 483, 2 L ed 2d 436) (1958). Instead of enacting a distinctively separate tax to reach possessory interests in another’s tax-exempt personal property, as Avas done in PA 1953, No 189 to reach such interests in realty, the legislature in 1959 sought to accomplish the same result by amendment of the State’s general property tax laAv Avhich theretofore imposed only an ad valorem property tax. See Continental Motors Corporation v. Township of Muskegon, 365 Mich 191, 197. It is our decision that notwithstanding the legislative effort to draw the new tax in the pattern of an ad valorem property tax, it comprises in actuality a specific or excise tax and was, therefore, not an appropriate subject to engraft upon the general property tax laAv by amendment thereof without also amending that laAv’s title to comply with the requirements of article 5, § 21 of our then effective Constitution of 1908.
That a tax upon possessory rights, such as are involved here, is an excise and not an ad valorem property tax seems to us too clear for sustained debate. Just two years ago, in Dooley v. City of Detroit, 370 Mich 194, we had occasion to consider the nature of excises for the purpose of determining the validity of a city ordinance imposing an income tax. In that case, at p 205 et seq., we again defined an excise as “a tax imposed upon the performance of an act, the engaging in an occupation, or the enjoyment of a privilege”, citing 26 RCL, Taxation, § 209, at p 236, which had been relied upon in earlier decisions of this Court. While the legislature in imposing the new tax has utilized the language of ad valorem taxation, the tax nonetheless in its operation and practical effect is a tax upon the privilege of possession and use for profit of another’s tax-exempt personal property and, therefore, it is an excise and not an ad valorem property tax. The importance of this distinction lies in the fact that whatever legislative name or trappings a new tax bears it may not be imposed validly by amendment of the general property tax law unless it can be said that that law’s title is broad enough to include within its scope the new tax or, if not, unless the law’s title also is amended to enlarge its scope.
Article 5, § 21 of our Constitution of 1908, effective when amendatory Act No 266 was adopted, read as follows:
“No law shall embrace more than 1 object, which shall be expressed in its title. No law shall be revised, altered or amended by reference to its title only; but the act revised and the section or sections of the act altered or amended shall be re-enacted and published at length. No act shall take effect or be in force until the expiration of 90 days from the end of the session at which the same is passed, except that the legislature may give immediate effect to acts making appropriations and acts immediately necessary for the preservation of the public peace, health or safety by a 2/3 vote of the members elected to each house.”
The purpose of such constitutional provision needs no extensive exposition for it has been the subject of many opinions of this Court, among them being People, ex rel. Drake, v. Mahaney, 13 Mich 481; Ryerson v. Utley, 16 Mich 269; Bissell v. Wayne Probate Judge, 58 Mich 237; Brooks v. Hydorn, 76 Mich 273; Vernor v. Secretary of State, 179 Mich 157 (Ann Cas 1915D, 425); MacLean v. State Board of Control for Vocational Education, 294 Mich 45; Leininger v. Secretary of State, 316 Mich 644; and People v. Stanley, 344 Mich 530. It is sufficient to say only that the title of a legislative act must give notice to legislators and others interested of the object of the law thereby assuring them that only matters germane to the object expressed in the title will be enacted into law.
The title of the general property tax law, as it had been amended prior to 1959, stated its object as follows:
“To provide for the assessment of property and the levy and collection of taxes thereon, and for the collection of taxes heretofore and hereafter levied; making such taxes a lien on the lands taxed, establishing and continuing such lien, providing for the sale and conveyance of lands delinquent for taxes and for the inspection and disposition of lands bid off to the State and not redeemed or purchased; to define and limit the jurisdiction of the courts in proceedings in connection therewith; to limit the time within which actions may be brought; to prescribe certain limitations with respect to rates of taxation; to provide penalties for the violation of this act; and to repeal all acts and parts of acts in anywise contravening any of the provisions of this act.”
As was noted in Knott v. City of Flint, 363 Mich 483, at 495, the language of the title relates “solely to the taxation of property and the procedure to be followed with reference thereto.” Nothing in the title would so much as suggest that excise taxes, such as our corporate franchise tax, our sales and use taxes, or a tax on possessory rights to use another’s tax-exempt property, would be found in the act to which the title relates.
A basic' distinction between an ad valorem property tax and an excise tax is that the former is regarded as primarily in rem in nature while the latter is regarded as in personam in nature. See United States v. County of Allegheny, 322 US 174, 184 (64 S Ct 908, 88 L ed 1209) (1944); Park Building Co. v. George P. Yost Fur Co., 208 Mich 349, 361; Dooley v. City of Detroit, 370 Mich 194, 204.
This being so, an act entitled “An Act to provide for the assessment of property and the levy and collection of taxes thereon, * * * making such taxes a lien on the lands taxed” may not be amended to provide for excise taxation unless the title is also amended to indicate that a fundamentally different type of tax is being imposed, one which is not, viewing the cases and statutes of this State, subsumed under the rubric of a property tax. As further demonstrating the crucial significance of the distinction between a property tax and an excise or privilege tax, see Esso Standard Oil Co. v. Evans, 345 US 495 (73 S Ct 800, 97 L ed 1174) (1953).
Thus, just as a tax upon possessory interests in another’s tax-exempt realty has been held to be in the nature of an excise tax rather than an ad valorem property tax, so, analogously, do we hold that a tax upon possessory interests in another’s tax-exempt personalty is an excise tax. Being an excise tax rather than a property tax, it may not, consistently with article 5, § 21 of the 1908 Constitution, be included in an act whose title imports that it deals only with property taxes. The decision of the court below is reversed and this cause is remanded thereto for entry of a judgment in favor of plaintiff and against defendant for the 1961 taxes and collection fee paid under protest together with interest thereon as provided by law. No costs may be taxed, a constitutional question involving the validity of a tax statute being involved.
Dethmers, Kelly, Black, and O’Hara, JJ., concurred with Souris, J.
Section 14 of PA 1893, No 206, as amended (CL 1948, § 211.14, as amended [Stat Ann 1960 Rev § 7.14]).
United States v. City of Detroit, 345 Mich 601, aff’d 355 US 466 (78 S Ct 474, 2 L ed 2d 424); Continental Motors Corporation v. Township of Muskegon, 346 Mich 141; Township of Muskegon v. Continental Motors Corporation, 346 Mich 218, aff’d sub nom United States v. Township of Muskegon, 355 US 484 (78 S Ct 483, 2 L ed 2d 436); City of Detroit v. Murray Corporation of America (CA 6, 1956), 234 F2d 380, rev 355 US 489 (78 S Ct 458, 2 L ed 2d 441); Continental Motors Corporation v. Township of Muskegon, 365 Mich 191; General Motors Corporation v. City of Detroit, 372 Mich 234; Continental Motors Corporation v. Township of Muskegon, 375 Mich 13; Kurth, The Aftermath of the Michigan Tax Decisions: State Taxation of Federal Property and Activities Today, 13 Military L Rev 167 (1961); Keesling, Property Taxation of Leases and Other Limited Interests, 47 Cal L Rev 470 (1959); State and Local Taxation of the United States and Its Contractors, 29 Law and Contemporary Problems 160 (1964); Van Cleve, States’ Rights and Federal Solvency, 1959 Wis L Rev 190; Whelan, Government Contract Privileges: A Fertile Ground for State Taxation, 44 Va L Rev 1099 (1958); comment, 36 U Detroit LJ 323 (1959); note, 21 U Pitt L Rev 697 (1960); note, 27 U Cinc L Rev 315 (1958); note, 1958 U Ill LF 305; note, 32 Temp LQ 110 (1958); note, 11 Vand L Rev 1440 (1958); note, 61 W Va L Rev 53 (1958); note, 30 Miss LJ 80 (1958).
See US Const, Art 1, §§ 2, 8, 9.
CLS 1961, §§ 211.181, 211.182 (Stat Ann 1963 Cum Supp § 7.7[5] and Stat Ann 1960 Rev § 7.7 [6]).
CL 1948 and CLS 1961, § 450.301 et seq. (Stat Ann 1963 Rev and Stat Ann 1963 Cum Supp § 21.201 et seq.).
CLS 1961, § 205.51 et seq. (Stat Ann 1960 Rev § 7.521 et seq.).
CLS 1961, § 205.91 et seq. (Stat Ann 1960 Rev § 7.555 et seq.).
See CL 1948, § 438.7 (Stat Ann 1964 Rev § 19.4)—Reporter. | [
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Dethmers, J.
This is an unemployment compensation case involving multiple claims, for weeks in September and October of 1957, of several employees, consolidated as permitted by CLS 1961, § 421.33 (Stat Ann 1960 Rev § 17.535). The appeal here is by claimants from a circuit court order holding them disqualified from receiving benefits under the act (CL 1948, § 421.1 et seq. [Stat Ann 1960 Rev § 17.501 et seq.] as amended) and reversing the contrary decision of the appeal board of the Michigan employment security commission.
Claimants were employees of plaintiff General Motors Corporation, in its Fisher No. 1 and its Buick plants in Flint, Michigan. In the manufacturing operations of those 2 plants parts were necessary which were made in its Fisher Body plant in Mansfield, Ohio. A strike was called at the Mansfield plant, authorized by the international union of which the employees in all 3 of the mentioned plants were members. This occasioned cessation of operations in the Mansfield, Ohio, plant, which resulted in a lack in the 2 Flint plants of parts manufactured in Mansfield which were necessary to the Flint manufacturing process, and this, in turn, caused the shutting down of the Flint plants and consequent unemployment of claimants. These facts gave rise to the question whether, as held by the circuit court, claimants were disqualified for benefits under section 29(1) (b) of the act (CLS 1961, § 421.29 [Stat Ann 1960 Rev § 17.531]).
The facts in this case are substantially like those in Park v. Employment Security Commission, 355 Mich 103, and decision therein might be considered to govern decision here, except for the one distinguishing feature on the facts which afforded the basis of the circuit court’s decision. That distinction is that here, as was not true in Park, the national contract in force between the union and the employer contained the following paragraph:
“The union has requested this national agreement in place of independent agreements for each bargaining unit covered thereby. Accordingly an authorized strike in one bargaining unit under this agreement which results in an interruption in the flow of material or services to operations in any other bargaining unit under this agreement, will be considered an authorized strike in any such affected bargaining unit.”
In Park a majority of this Court decided that the employees in a Michigan plant, shut down for lack of parts regularly manufactured in and furnished to the Michigan plant by a struck Ohio plant, were not disqualified from receiving benefits under said section 29(1) (b) of the act, which provides for such disqualification in case of unemployment due to a stoppage of work existing because of a labor dispute in the establishment in which claimant is or was last employed. This decision was based on a holding that the struck Ohio plant and the resultantly closed Michigan plant were not one or the same establishment, and, hence, the disqualification of that section did not apply. That would seem to cover the facts in the case at bar except for the mentioned provision of the union-management labor contract. Does it make the Parle decision inapplicable?
Claimants here contend that the noted contract provision cannot be considered valid if given the interpretation and effect given it by the circuit court which, they say, applied the disqualifying provisions of said section 29(1) (b) to the situation as if the 3 plants in question were part of one establishment. We do not think that a holding that the 3 plants, 1 in Ohio and 2 in Michigan, are part of 1 establishment is essential to the circuit court’s decision that claimants were disqualified. Rather, the decision is to be supported on the proposition that the meaning of the contract provision is that, under the facts here obtaining, the union had authorized and called a strike not only in Mansfield, but, as well, in the Flint plants. If that is the effect of said contract provision, is it valid under the statute? Claimants say not, because of the provisions of section 31 of the act (CL 1948, § 421.31 [Stat Ann 1960 Rev § 17.533]) which reads, in part, as follows:
“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. No agreements by an individual in the employ of any person or concern to pay all or any portion of the contributions of an employer, required under this act from such employer, shall be valid. No employer shall directly or indirectly make or require or accept any deduction from the remuneration of any individual in his employ to finance the contributions of the employer required from him, or require or accept any waiver of any right hereunder by any individual in his employ.”
The question, then, boils down to this, whether the quoted provision of the contract is violative of section 31 of the act and, hence, invalid and inoperative. If so, claimants may receive compensation. If not, they are disqualified therefor.
The language of the contract does not express a waiver of benefits as prohibited in section 31 of the act. Fairly construed, it provides that when the union authorizes a strike in one of the employer’s plants, causing an interruption of flow of materials to another one of its plants and of operations therein, with consequent layoff of union members who are employees in the latter, such layoff shall be considered as occasioned by an authorized strike in the latter, or, in short, that the union, under such circumstances, has authorized and extended the strike to the latter plant. It follows that, under section 29(1) (b) of the act, claimants stopped working in the Flint plants in the course of a labor dispute in the establishment, even as defined in Parle, in which they were then employed.
The appeal board adopted as a part of its decision the findings of fact of the referee that (1) there was a stoppage of work because of a labor dispute within the establishments in which claimants were employed, and (2) that the union and the employer, in agreeing on the noted provision of the contract, did not enter into “a collusive agreement that unemployment benefits be waived”. There were no proofs or showing contrary to those findings of fact. There was undisputed testimony that the labor dispute at the Ohio plant involved and included not only local issues there, but also demands for changes in the wages, hours or other conditions of employment of the employees of other plants of the employer, in cluding those of the 2 Flint plants (claimants herein) under the national agreement between the union and the employer. Those findings of fact are not, therefore, contrary to the great weight of the evidence. We may not, then, disturb them. See section 38 of the act (CLS 1961, § 421.38 [Stat Ann 1960 Rev § 17.540]); also, Miller v. F. W. Woolworth Company, 359 Mich 342, and cases therein cited.
To the extent that it might be reasoned that the findings are conclusions and applications of law, and I do not agree with such reasoning, applicable is the following from Mississippi Valley Barge Line Co. v. United States, 292 US 282 (54 S Ct 692, 78 L ed 1260), quoted with approval in Peaden v. Employment Security Commission, 355 Mich 613, 629:
“ ‘The judicial function is exhausted when there is found to be a rational basis for the conclusions approved by the administrative body.’ ”
On the record presented here there is a reasonable basis for the conclusion that there was a labor dispute in the establishments in which claimants were employed because the union, under the agreement, automatically called a strike in and extended the labor dispute thereto under the circumstances of this case, and, hence, the agreement was not a collusive agreement that unemployment benefits be waived. There were none to be waived because the strike existed, by agreement, in the plants in which they had been employed. After all, an authorized strike is not a creature of the law, but, rather, of the call and action of the union. Such action brings about the strike. It is no violation of section 31 of the statute for the union to call the strike, regardless of whether it is called independently of or in pursuance of the agreement which provided that the union was doing precisely that, under the circumstances of this case.
The order of the circuit court is affirmed.
Kelly, J., concurred with Dethmers, J. | [
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T. M. Kavanagh, C. J.
Plaintiff was employed by the Cone Drive Gears Division, Michigan Tool Com pany, and was laid off on July 8, 1960, for two weeks by his employer and remained unemployed for that period. Plaintiff was not entitled to any vacation pay under the company-union bargaining agreement because he had been on layoff during 1959 and had not acquired 30 days seniority prior to December 31, 1959.
Plaintiff sought to continue working during the vacation period but was told by his foreman that the men who were to work had already been selected, and that there would be no work available for him. He r.eturned' to work on July 25, 1960.
Plaintiff filed a claim July 11, 1960, and certified for weeks ending July 16 and July 23, 1960, with the Michigan employment security commission. The hearing referee and the commission denied his claim. The appeal board of the Michigan employment security commission and the Ingham circuit court affirmed. Plaintiff, on leave granted by this Court, appeals/contending he was eligible for benefits as an unemployed person within the meaning of the Michigan employment security act for the two-week period which his employer designated as a “vacation.”
The sole question in this case is whether appellant was eligible for benefits as an unemployed person within the meaning of the Michigan employment security act for the two-week period which his employer and union designated as a compulsory vacation period.
Appellees contend, (1) that the purpose of the said act is to provide relief for people who are out of work through no fault of their own; the fault here is solely that of the claimant; that he, through his lawful and designated agent, negotiated a contract which, put him out of work for a two-week period iu July; that the claimant’s remedy is a change in the contract reducing the eligibility requirements for vacation pay, it is not a petition for unemployment benefits; that legally and morally, he was voluntarily out of work and to permit him to draw unemployment benefits is to make a mockery of the employment security act and of the union contract; (2) that this case is controlled by the case of I. M. Dach Underwear Company v. Employment Security Commission, 347 Mich 465.
These arguments were discussed and squarely answered by the majority opinion of this Court in Employment Security Commission v. Vulcan Forging Company, 375 Mich 374, 376, reversing the Dach Case.
Reversed and remanded for entry of order granting unemployment benefits to the appellant. Plaintiff shall have costs.
Black, Souris, and Smith, JJ., concurred with T. M. Kavanagh, C. J.
PA 1936 (Ex Sess), No 1 (CL 1948, § 421.1 et seq., as amended [Stat Ann 1960 Rev § 17.501 et seq.]). | [
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Per Curiam.
Plaintiff’s bill of complaint was filed in June of 1962. It was dismissed on motion of defendants. This appeal followed.
The bill states what at present this Court must accept as true. It proceeds with sufficient if not artful allegation that the primary defendants, some as fiduciaries, some as attorneys representing fiduciaries and some as parties in interest, cooperated for personal profit in the mismanagement of 3 estates, which estates according to the record thereof were probated and closed in Kent county; that such mismanagement was perpetrated secretly at expense of one or more of the estates and to the detriment of a then minor beneficiary of each estate; that the actions of the said defendants in such regard constituted an actionable fraud upon said minor bene ficiary and that said beneficiary, having attained majority age, duly assigned to plaintiff the right of action thus pleaded. The bill concludes with allegation, the charging part of the bill considered, that plaintiff is entitled to an accounting and to other specified relief as against the said defendants.
Defendants’ motion to dismiss assigned estoppel, laches, waiver, former adjudication by virtue of final probate orders, and invalidity of plaintiff’s pleaded assignment. As indicated above the motion was granted, principally on ground of laches.
The bill stated an equitable case.. Laches, 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 (Kelley v. Hoogerhyde, 314 Mich 37; Plasger v. Leonard, 316 Mich 174), was not available as ground for dismissal thereof. Nor were any of the other assigned reasons for dismissal, save that of former adjudication. See former Court Rule 18, § 1 (e).
As for the defense of bar by former adjudication, no showing upon affidavit or otherwise was made in support per requirement of such former rule. So there is—thus far—nothing of record which might lead a court of equity to rule that plaintiff’s assignor, then a minor, became bound by any order of the probate court barring the cause for actual or constructive fraud her assignee has pleaded. That probate orders may be attacked for fraud was settled as far back as Ewing v. Lamphere, 147 Mich 659, 663.
We do not decide whether, under current court rules, a properly prepared, duly supported, and legally unmet motion for summary judgment should be granted as against this bill. As against defendants’ said motion to dismiss, plaintiff was entitled to a fair hearing of the merits; also of the affirmative defenses as pleaded.
Reversed and remanded for entry of order denying motion to dismiss. Costs on appeal to plaintiff.
T. M. Kavanagh, C. J., and Dethmers, Kelly, Black, Souris, Smith, O’Hara, and Adams, JJ., concurred.
For current provision see GCR 1963, 116.1.—Reporter.
For additional authorities, see Grigg v. Hanna, 283 Mich 443, 456. | [
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Adams, J.
This is an appeal and cross-appeal from the State tax commission’s determination of General Motors’ 1963 personal property-assessment in Livonia. The city assessor used the taxpayer’s original book costs as a beginning point and assessed the property at $26,603,790. He did so according to certain percentage rates or formulas recommended by Wayne county which he purportedly used as a uniform method to assess all personal property in the city. The assessment was upheld by the board of review. On appeal, the commission also used the taxpayer’s figures but made a determination of $19,576,000. The commission’s action placed the assessment at the average assessment level for personal property in Livonia.
The commission found:
“1. A 1963 equalization study of real property in Livonia revealed the level of assessment to be at 73.64% of the State equalized level. * * *
“3. The remainder of the assessment roll' (personal property) was examined thoroughly for equalization in 1962. The average level of assessment determined from the study was 90.26% of the State equalized level.
“4. The 1962 personal property study results were brought forward to 1963 routinely. * * * The routine computations resulted in reducing the rec ognized level of assessments * * * from 90.26% to 83.70%.
“5. In view of the weight of the real property-assessment level which would have dictated an overall real and personal average level of assessment at approximately 76%, the 83.70% level of assessment routinely determined and based on the 1962 personal property study was used by the State tax commission to determine the final assessment for General Motors personal property in the city of Livonia.” (Emphasis supplied.)
1.
The main question presented is: Is the Michigan State tax commission required by law to reduce an intentionally unequal personal property assessment to the level'of assessment for all property — both real and personal — taxable in the assessment district?
The Michigan Constitution of 1908, controlling, here, provided:
“The legislature shall provide by law a uniform rule of taxation, except on property paying specific taxes, and taxes shall be levied on such property as shall be prescribed by law.” Article 10, § 3.
“All assessments hereafter authorized shall be on property at its cash value.” Article 10, § 7.
The constitutional mandates were implemented by the general property tax act (PA 1893, No 206, as amended [CL 1948 and CLS 1961, § 211.1 et seq., as amended by PA 1963, No 66, (Stat Ann 1960 Rev and Stat Ann 1963 Cum Supp § 7.1 et seq.)]). The act provides for the uniform assessment and taxation of all taxable property, both real and personal other than intangibles, at the standard of true cash value (CL 1948, § 211.1, CLS 1961, § 211.24, as amended by PA 1963, No 66, § 211.27 [Stat Ann 1960 Rev § 7.1, Stat Ann 1963 Cum Supp § 7.24, Stat Ann 1960 Rev § 7.27]). Section 24 of the act provides:
“The supervisor [assessing officer] shall estimate, according to his best information and judgment, the true cash value of every parcel of real property and set the same down opposite such parcel. He shall also estimate the true cash value of all the personal property of each person, and set the same down opposite the name of such person.”
Thus all taxable property, real and personal, is placed in one category to be uniformly assessed and taxed.
The twin demands of uniformity and cash value have plagued taxing authorities for years. If the requirement of cash value were met, the requirement of uniformity would also be met, but there has been a constant erosion of the concept of cash value. The reasons for that erosion need not concern us, other than to note that because of differences in the concept of cash value from one assessing unit to another, because of the endeavor of an assessor to obtain an advantage for the taxpayers within his district by reducing assessments, or because of the wealth of a unit or the limited needs of its citizens, great disparities in assessments have occurred from governmental unit to governmental unit. Assessments often bear no relation to the actual cash value of the property or to the level of assessments in adjoining governmental units.
Equalization procedures attempt to meet the problem, it being the purpose of these procedures to adjust or correct all of the different modes of assessment to achieve uniformity among governmental units within a county and uniformity among all of the counties of the State. See School District No. 9, Pittsfield Township, Washtenaw County, v. Washtenaw County Board of Supervisors, 341 Mich 388, 405, and Calumet & Hecla, Inc., v. Township of Allouez, 363 Mich 671. But apparently equalization never quite succeeds in overcoming the race for advantage.
With the destruction of the standard of cash value, the standard of uniformity becomes even more imperative, not only from tax unit to tax unit but as to the individual taxpayer within a unit. If there was ever any question as to which should control, the principle of equal treatment regardless of cash value is now recognized as being primary. See Titus v. State Tax Commission, supra; Buerger v. Alleghany County Board of Property Assessment, 188 Pa Super 561 (149 A2d 466, 469). As a practical matter, unequal assessments must be reduced to the average level of assessment if the taxpayer is to have a remedy. In the Matter of Appeals of Kents, 34 NJ 21, 25 (166 A2d 763, 765); City of Passaic v. Botany Mills, Inc., 72 NJ Super 449, 457 (178 A2d 657, 662), certiorari denied 37 NJ 231 (181 A2d 13).
Upon the record before us, General Motors’ personal property was assessed at an average of 83.7% of State equalized value. The weighted average of all property — real and personal — would be 76% of State equalized value. This is the average which (assuming the correctness of the commission’s findings) should have been used in computing General Motors’ personal property tax liability.
We hold that the mode of assessment used by the State tax commission was incorrect in that, having adopted a standard of average assessment levels to determine the question of uniform treatment of General Motors, it did not take into account the average assessment level of all property, real and personal. Titus v. State Tax Commission, supra.
2.
It is argued that to reduce the personal property assessment of General Motors and not that of any other taxpayer will bring about an unfair and inequitable result in that General Motors alone will benefit at the expense of others. The contention is that the commission should order a reassessment of all personal property within the city. The commission, under its powers, might follow such a procedure. In re Dearborn Clinic & Diagnostic Hospital, 342 Mich 673, 681. It is not, however, the remedy the commission elected to afford this taxpayer. This proceeding is an appeal by a single taxpayer. If correction of an improper assessment is to be made dependent upon a general reassessment of a taxing district, a taxpayer’s remedy would become wholly inadequate.
The United States Supreme Court, speaking of the requirements of the equal protection clause of the Fourteenth Amendment, held:
“The right is the right to equal treatment. He [the taxpayer] may not complain if equality is achieved by increasing the same taxes of other members of the class to the level of his own. The constitutional requirement, however, is not satisfied if a State does not itself remove the discrimination, but imposes on him against whom the discrimination has been directed the burden of seeking an upward revision of the taxes of other members of the class.” Township of Hillsborough v. Cromwell, 326 US 620, 623 (66 S Ct 445, 90 L ed 358).
We need not decide whether such inadequacy violates our standard of uniformity since discretion is lodged in the tax commission to afford either general or specific relief.
The question to be determined is: What is the average level of assessment of all real and personal property within the city of Livonia? The city has a right to make its proofs based upon the work of its assessor, or any other proofs it may care to adduce. The taxpayer has the same right. Finally, the commission may pursue such independent examination, through its staff or other resources, as it elects.
The question of proofs to be used in a commission hearing was before this Court in Titus v. State Tax Commission, supra. While the Court did not there agree as to the admissibility of the proofs, there was no disagreement but that proper proofs might be presented with regard to average assessment levels. The standard of proof in an administrative hearing is provided for in PA 1952, No 197, § 5, as amended (CLS 1961, § 24.105 [Stat Ann 1961 Rev § 3.560(21.5)]). In Winokur v. State Board of Dentistry, 366 Mich 261, 265, it was stated:
“The statute in regard to the admission of evidence in administrative proceedings provides a wide latitude for a hearing board.”
Equalization studies, though made primarily for the purpose of equalizing tax levels between governmental units, obviously need not conform with a local assessor’s findings and may be proper proof if a foundation is laid. Kingsford Chemical Company v. City of Kingsford, supra. See comment in Buerger v. Alleghany County Board of Property Assessment, supra pp 557, 568 (149 A2d 470), and People, ex rel. Wenzel, v. Chicago & N. W. R. Co. (1963), 28 Ill2d 205 (190 NE2d 780). If equalization studies of a prior year are pertinent, said studies might also be considered. Upon remand, the commission. should receive only such evidence as would be competent, acting under authority of PA 1952, No 197, §5.
3.
The city of Livonia, Wayne county by brief amicus, and the attorney general raise the question as to whether, the city assessor having used one mode of assessment, it was proper for the tax commission to use some other mode. If the assessor had .uniformly, assessed all personal property in Livonia, there would have been no need for the commission to turn to other evidence to determine .the level of assessments. However, the commission did not accept the city’s claim that this was done. It was not obliged to do so. It was bound to mate its own findings and determination based upon the proofs presented to it.
Reversed and remanded to tbe Michigan State tax commission for further proceedings in accordance with this opinion. No costs, a public question being involved.
T. M. Kavanagh, C. J., and Dethmers, Kelly, Black, Smith, and O’Hara, JJ., concurred.
Souris, J., did not sit.
A uniform mode of assessment does not necessarily produce a uniform result. Applying tlie same formula of assessment to personal property as is applied to real property could produce an inequality which the uniformity provision was designed to prevent. Compare Kingsford Chemical Co. v. City of Kingsford, 347 Mich 91, 106, 107, and Titus v. State Tax Commission, 374 Mich 476, 480. Also, see the eases cited for the following proposition: “A generally approved practical seheme of valuation may yet produce fundamentally wrong results under the circumstances of a particular ease.” — Twenty-Two Charlotte, Inc., v. City of Detroit, 294 Mich 275, 285.
See article 9, § 3, Michigan Const 1963, providing for assessments not to exceed 50% of cash value after January 1, 1966.
As an example, Livonia admits assessing land and buildings on tlie 1963 roll at a common or average level of 40% and 43%, respectively, of current value. The commission found, through its 1963 equalization survey, an average assessment level in Livonia of 36.82% of current value for realty assessments.
I.e.,83.7% of 50% of true eash value, State equalized value being 50% of true eash value.
We assume that in determining the weighted average of all property, real or personal, the property of General Motors was not a significant factor. In the event that it would affect the weighted-average, it should be excluded. See Kingsford, supra, pp 105, 107.
See OAG 1961-1962, No 3602, p 176.
“Although the assessor at the 1963 hearings claimed the assessments resulted from a rigid application of a formula, there were other factors which strongly affected the apparent average level of assessment.
“State tax commission audit of statements filed witli the assessor were, in many cases, far short of reporting the actual costs requested. The unreported property included inventory as well as installed equipment. In some cases the audit by the State tax commission field staff revealed a hesitancy to report full costs even in response to requests 'for personal property statements by the State tax commission.
“In view of the findings in the personal property study plus the continued failure of the assessor to adequately cheek the reports, the State tax commission must consider the findings described above as superior to any other representations brought forward for consideration.” Finding of State tax commission (emphasis supplied).
“The statutes (CL 1929, § 3406 [CL 1948, § 211.18 (Stat Ann 1960 Rev § 7.18)]) require every property owner to make a statement to the assessing officers. But such statements are not controlling in .the fixing of the valuation of the taxpayer’s property. United States Radiator Corp. v. Wayne County, 192 Mich 449. Nor is the action of the local assessing officer, or of the local board of review, controlling where the jurisdiction 'of the State tax commission is invoked and it has acted in the premises. CL 1929, §§ 3543-3547 [CL 1948, §§ 211.148-211.152 (Stat Ann 1960 Rev §§ 7.206-7.210)].” Hudson Motor Car Co. v. City of Detroit, 282 Mich 69, 80 (113 ALR 1472). | [
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Per Curiam.
Plaintiff appeals from an adverse ruling of the Workmen’s Compensation Appeal Board denying benefits for a disability caused by a heart attack.
Plaintiff, who is now 50 years of age, began working for defendant Production Steel Company in 1953. During the last 10 years of his employment, plaintiff’s job was to guide large steel coils through a coil reducing machine. This job required considerable physical strength.
Plaintiff testified that on March 19, 1971, while pulling some steel on some rollers, he felt a pain in his abdomen. However, at the time he informed no one of this problem. The following morning plaintiff was admitted to Hutzel Hospital under the care of his physician, Dr. Rose. It was then determined that plaintiff had suffered a heart attack.
On February 24, 1972, plaintiff filed a petition for worker’s compensation benefits. Pursuant to hearings, the referee determined that plaintiff received a personal injury arising out of his employment. He further held that plaintiff did not receive notice of the connection between his incapacity and his employment until shortly before his petition for benefits was filed and that his notice of injury thus was timely.
On March 16, 1977, in a 3-2 opinion, the appeal board reversed, holding that plaintiff had not given timely notice of his injury. The board ruled that plaintiff received notice of the work-related nature of his disability on April 23, 1971, in a discussion with Dr. Rose. Plaintiff now attacks this conclusion, raising various arguments examined below.
Plaintiff first contends that the appeal board erred in ruling that he had notice of the work-relatedness of his injury on April 23, 1971. Such a finding of fact is not to be disturbed if there is any evidence to support it. Carter v Kelsey-Hayes Co, 386 Mich 610, 615; 194 NW2d 326 (1972), MCL 418.861; MSA 17.237(861) and Const 1963, art 6, § 28. The following testimony by plaintiff clearly supports the board’s finding:
"Q. Did Dr. Rose tell you about the time you were in the hospital, or soon after you got out of the hospital, that he thought physical stress at work had brought on your problem?
"A. Yes, Dr. Rose told me it was physical stress.
"Q. Well, then, I assume that at the time you were in Hutzel Hospital, then, that you knew then that this stress at work, at least you thought, might have brought on your heart condition, caused you to go into the hospital, is that correct?
"A. I didn’t quite get that.
"Q. Well, at the time you were in the hospital, then, you knew, from talking to the doctors, that the physical stress you had at work brought on your heart condition, is that correct?
"A. No, I didn’t know. I’m not, I’m not, I can’t say anything other than what the doctor said, but I’m not a doctor and I didn’t know that. The doctors told me—
"Q. (Interposing) Didn’t the doctor tell you that?
"A. Yes, the doctor told me that it was physical stress, strenuous stress.
"Q. That you went through at work?
"A. That’s correct.
"Q. Well, he told you that at the time you were in the hospital in March, is that correct?
"A. No, he told me that after I got out of the hospital.
"Q. Dr. Rose told you that?
"A. Dr. Rose.
"Q. How soon after you got out of the hospital did he tell you that?
"A. As I indicated a few minutes ago, this was one week after that, and then, my first visit to his office, then it was every four weeks.
"Q. Okay. So, you mean on your first visit to Dr. Rose after you got out of the hospital is when he indicated this to you?
"A. Yes, he did.
"Q. The physical stress at work brought on your heart condition, is that correct?
"A. That’s correct.”
Although Dr. Rose could not remember if such a conversation took place, plaintiff’s testimony is sufficient to establish that in April of 1971 he had notice that his heart attack was work-related.
Plaintiff further contends that even if he had knowledge of his heart attack and its work-relatedness in April of 1971, that is insufficient to start the running of the statutory notice period. Plaintiff argues that the period could not have commenced running until he learned of the existence of worker’s compensation.
MCL 418.381; MSA 17.237(381) provides that in order to maintain an action for worker’s compensation benefits an employee must give his employer notice of an injury within three months of its occurrence. The statute provides in pertinent part:
"(1) No proceedings for compensation for an injury under this act shall be maintained, unless a notice of the injury has been given to the employer within 3 months after the happening thereof.”
In Lewis v Chrysler Corp, 394 Mich 360, 369; 230 NW2d 538 (1975), the Court held that the statutory period of notice commences to run only after the employee has knowledge or reasonable grounds for knowledge of his disability and the employee has discovered or by reasonable diligence could have discovered that his disability was work-related. No mention was made of a requirement that plaintiff have knowledge of the worker’s compensation law and we decline to add such a requirement. Thus, the appeal board correctly held that the statutory notice period began to run on April 23, 1971, the date plaintiff learned his heart attack might be work-related.
However, this does not end the analysis of this issue. MCL 418.381(1); MSA 17.237(381X1) states in pertinent part:
"In a case in which the employer has been given notice of the happening of the injury or has notice or knowledge of the happening of the accident within 3 months after the happening of the same, and fails, neglects or refuses to report the injury to the bureau as required by the provisions of this act, the statute of limitations shall not run against the claim of the injured employee or his dependents, or in favor of the employer or his insurer, until a report of the injury has been filed with the bureau.” (Emphasis added.)
Thus, the employer’s actual knowledge can act to toll the running of the statutory limitation period when coupled with a failure to notify the bureau. The question that must be confronted here is what knowledge is sufficient to so toll the statute.
In Norris v Chrysler Corp, 391 Mich 469, 477; 216 NW2d 783 (1974), the Court stated the applicable rule:
"The notice given must be sufficient to make the employer aware that an injury has been sustained. If, after inquiry, the employer does not believe the injury to be compensable, it need not report the accident. However, in not reporting the accident, the employer assumes the risk that the injury will be found to be compensable. If such a determination occurs, the employer’s penalty is a suspension of statutory limitations.”
This standard was applied in Krol v Hamtramck, 398 Mich 341, 347; 248 NW2d 195 (1976), an occupational disease case. Although Meads v General Motors Corp, 78 Mich App 494; 260 NW2d 143 (1977) , attempted to introduce a further requirement that the employer know the injury or disease is work-related, this decision was recently reversed by the Michigan Supreme Court in Meads v General Motors Corp, 402 Mich 540; 266 NW2d 146 (1978) . Thus, defendants’ argument that this Court’s opinion in Meads controls this case is without merit. Similarly defendants’ argument that the Norris standard should be applied prospectively must be rejected in light of its application in Krol, where the employee’s death occurred 14 years prior to the decision in Norris. Nor are we convinced that anything in the Workmen’s Compensation Bureau’s rules in effect at the time of plaintiffs disability warrants a different conclusion.
However, at this time, we decline to apply the Norris standard in the present case. The Workmen’s Compensation Appeal Board has made no findings regarding this issue. Nor do we think this issue can be decided as a matter of law on the facts as given. Thus, we remand the case to the board for further factual findings. Specifically, the board should determine whether the employer had knowledge of plaintiffs heart attack within the 90-day period. An affirmative answer to this question would require that the statutory notice period be declared tolled. A negative answer to the question would necessarily lead to a rejection of plaintiff’s claim for benefits.
Furthermore, on remand, the board must confront the question of whether plaintiffs injury was, in fact, work-related. This issue was previously raised before the board by defendants but was never answered because the case was disposed of on the notice issue. Such handling of cases leads to piecemeal appeals to this Court and should be discouraged.
The decision of the board is vacated and the matter remanded for proceedings consistent with this opinion. Costs to the prevailing party.
1968 AACS R 408.31 provided that an employer should immediately report all injuries or diseases arising out of the course of employment. However, that rule does not require that the employer know the injury was work-related. 1959 AACS R 408.33 was concerned with situations where the right to compensation was then in dispute and is not applicable here.
Plaintiffs contention that the employer must show some prejudice as a result of the delay in notice in order to rely on the notice period is totally without merit. See Thomas v Griffin Wheel Co, 8 Mich App 35, 47-49; 153 NW2d 387 (1967), and Brown v Revere Copper & Brass Corp, 42 Mich App 143, 148; 201 NW2d 326 (1972).
Although the board’s finding as to when plaintiff had notice of the work-relatedness of the heart attack strongly implies that they found the injury to be work-related, the board may simply have been assuming a connection between the heart attack and plaintiff’s injury for purposes of the notice issue. Thus, this point must be clarified by further findings of fact. We express no opinion on this issue at this time and nothing said herein should be deemed relevant in resolving this factual issue. | [
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R. B. Burns, J.
Counter-defendant appeals from the entry of a default judgment in favor of defendant. Default judgment was entered due to counter-defendant’s noncompliance with court-ordered discovery. GCR 1963, 313.2(2)(c).
Our examination of the record convinces us that the trial court did not abuse its discretion in entering default judgment. Two notices to produce documents and tangible things were filed by defendant. Counter-defendant ignored these notices. The trial was adjourned four times, pursuant to the parties’ stipulation, so that discovery could be completed. Never were the requested documents produced. Never did counter-defendant dispute the reasonableness of the court’s order of discovery. Counter-defendant did not heed defendant’s repeated warnings about the consequences of non-production of the documents. Not until the day default judgment was finally entered was there an attempt to explain the delay. The case had already been pending for 19 months. There was no abuse of discretion in the entry of the default judgment. First Bank of Cadillac v Benson, 81 Mich App 550; 265 NW2d 413 (1978), Humphrey v Adams, 69 Mich App 577; 245 NW2d 167 (1976).
Affirmed.
J. H. Vander Wal, J., concurred. | [
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Per Curiam.
Plaintiff was struck by an automobile while walking along a road in Alger County. He suffered severe damage to his left leg, necessitating repeated surgery, requiring him to wear a leg cast for many months, and leaving him with a shortened left leg.
Plaintiff was insured under a policy of automobile insurance issued by defendant Auto-Owners Insurance Company. When defendant refused to pay plaintiff’s claimed work loss benefits, as authorized by MCL 500.3107; MSA 24.13107, plaintiff brought this action for a declaratory judgment of liability and for a determination of benefits. The trial court found that plaintiff was entitled to work loss benefits, and awarded him an amount equal to earnings from a full-time job from the date of the accident to the date of judgment. The court further ordered payment of benefits to continue as long as plaintiff continued disabled, up to the statutory maximum of 36 months. From that judgment defendant brings this appeal, alleging that plaintiff is not entitled to work loss benefits and, alternatively, that the trial court erred in determining the amount of benefits to which plaintiff is entitled.
Resolution of the issues presented in this case requires that we construe the work loss benefits provisions of the no-fault insurance statute, MCL 500.3107; MSA 24.13107 and MCL 500.3107a; MSA 24.13107(1). In so doing, we keep in mind that our aim is to determine and to give effect to the intent of the Legislature, see Attorney General ex rel Insurance Commissioner v Michigan Property & Casualty Guaranty Ass'n, 80 Mich App 653; 263 NW2d 918 (1978), and cases cited therein.
During the 1974-75 school year plaintiff had been a student at Northern Michigan University; at the time of the accident he had enrolled for the 1975-76 year. During the summer plaintiff had been employed full time, his last job earning him a wage of $3.25 per hour. During the first semester of the preceding school year, plaintiff had been employed part time by the university.
Defendant first contends that because plaintiff was not employed at the time of the accident, he suffered no loss of wages and is therefore not entitled to any work loss benefits whatsoever. This argument, however, ignores the clear intent of the Legislature to compensate for work loss even those persons temporarily unemployed at the time of the injury. This intent was made clear by MCL 500.3107a; MSA 24.13107(1), which provides:
"Subject to the provisions of section 3107(b), work loss for an injured person who is temporarily unemployed at the time of the accident or during the period of disability shall be based on earned income for the last month employed full time preceding the accident.”
Defendant argues that plaintiff is not a temporarily unemployed person within the meaning of § 3107a because he voluntarily left his job to return to college. Defendant contends that the Legislature intended to compensate only those temporarily unemployed persons who intended to return to the same job or at least to a similar, full-time job. We do not think the Legislature so intended to limit the class of unemployed persons eligible for benefits. Nothing in the statute expressly limits eligibility for work loss benefits to full-time employees. Section 3107 (MCL 500.3107; MSA 24.13107) provides that benefits are payable for "work loss consisting of loss of income from work an injured person would have performed * * * if he had not been injured”. We think a reasonable interpretation of the statute requires a finding that the Legislature intended to compensate accident victims for all loss of income, whether from full-time or part-time employment, resulting from injuries suffered in an automobile accident. Clearly, if plaintiff can show that he would have been employed part-time or seasonally but for his injury, he has suffered loss of income as a result of that injury, for which loss he should be compensated.
There remains the question of how to determine the amount of benefits to which plaintiff is entitled. The trial court looked to plaintiff’s work history as the basis for its decision on the award of benefits. In this we think the court was correct. By adopting § 3107a, providing that work loss benefits for temporarily unemployed persons should be based on income for the last month of employment prior to the accident, the Legislature clearly indicated its intention that work loss benefits be based on previous earnings, not future possibilities.
The trial court, however, relying on § 3107a, awarded plaintiff monthly benefits on the basis of a full-time, year-round job paying $3.25 per hour. In this we think the court erred. MCL 500.3107; MSA 24.13107 clearly limits recovery of work loss benefits to "loss of income from work which an injured person would have performed” had he not been injured, Struble v Detroit Automobile Inter-Insurance Exchange, 86 Mich App 245; 272 NW2d 617 (1978). Plaintiff is entitled to year-round payments for full-time work only if he would have performed such work had he not been injured. The trial court in his findings of fact concluded:
“Except for the disability resulting from his injuries, plaintiff would have obtained employment while attending school. Plaintiff would have sought off-campus employment, because a school rule limited on-campus student employment to 20 hours a week. In addition to his work during the school year, plaintiff would have obtained full-time employment during the summer recess. If he had not planned to return to college in the fall of 1975, he would have obtained full-time employment.”
Nowhere did the court indicate a finding that plaintiff would have worked full time at $3.25 per hour while attending college, nor would the evidence before the court support such a finding.
We therefore remand to the trial court for a new determination of the level of benefits to which plaintiff is entitled. If on the basis of plaintiff’s past work record the court determines that he would have worked full time during the summer and part time during the school year, benefits shall be awarded on that basis.
Defendant also claims that the trial court erred in permitting plaintiff to offer additional proofs after the case had been submitted for decision on an agreed statement of facts and argued by counsel. We note that plaintiff did not seek to contradict any fact in the agreed statement of facts, but simply sought to prove additional facts necessary to the decision of the court. It is within the discretion of the trial court to permit such additional proofs, even after argument, Thomas Canning Co v Johnson, 212 Mich 243; 180 NW 391 (1920). That the court had orally indicated his intent to enter judgment for plaintiff is irrelevant, judgment not having issued, Nemes v Smith, 37 Mich App 124; 194 NW2d 440 (1971).
Remanded for proceedings consistent with this opinion. We do not retain jurisdiction. No costs, construction of a statute being involved.
Although this section was added by 1975 PA 311, effective December 22, 1975, it has been held to be retroactive to the date of the originad enactment of the no-fault statute, Harper v Progressive Casualty Ins Co, 79 Mich App 764; 263 NW2d 1 (1977).
For authority that the Legislature intended to compensate seasonally-employed workers, see the legislative analysis quoted in Nawrocki v Hawkeye Security Ins Co, 83 Mich App 135; 268 NW2d 317 (1978). | [
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V. J. Brennan, J.
On November 17, 1976, defendant was convicted by a jury in Saginaw County Circuit Court of breaking and entering an occupied building with intent to commit larceny therein. MCL 750.110; MSA 28.305. The defendant had been convicted of three previous felonies and on November 29, 1976, the prosecutor filed a supplemental information charging the defendant as an habitual offender. Defendant pled guilty and on January 12, 1977, was sentenced to a prison term of 5 to 15 years for breaking and entering and 7 to 15 years as an habitual offender; such sentences to run concurrently. The defendant appeals as of right.
The defendant raises three issues on appeal, two of which merit discussion here.
First, the defendant argues that it is error to allow the prosecutor to file habitual offender charges after conviction where the prosecutor has knowledge of defendant’s record before trial..
Initially, we must point out that due process does not require that a defendant be notified of an habitual offender charge prior to conviction on the last offense. Oyler v Boles, 368 US 448; 82 S Ct 501; 7 L Ed 2d 446 (1962). This Court in People v Marshall, 41 Mich App 66; 199 NW2d 521 (1972), specifically held that the prosecutor is not required to file a supplemental information prior to trial where he has knowledge of the previous conviction. The Michigan Supreme Court in People v Hendrick, 398 Mich 410; 247 NW2d 840 (1976) (with Justice Levin dissenting), cited Marshall for the aforementioned proposition and did not disapprove of the practice.
In light of the case authority set forth above we hold that the prosecutor did not err in filing the habitual offender information after conviction in the present case.
Next, the defendant argues that the trial court erred by imposing separate sentences for breaking and entering and for the habitual offender conviction. We agree.
MCL 769.13; MSA 28.1085 in pertinent part provides:
"If the accused shall plead guilty to such information [habitual offender] or if the jury shall return a verdict of guilty, the court may sentence him to the punishment prescribed in the 3 preceding sections * * *
It is clear that our habitual offender statute does not provide for a separate substantial criminal offense. Moreover, it operates to enhance the punishment for the last felony conviction. People v Shotwell, 352 Mich 42; 88 NW2d 313 (1958). Therefore, the trial court’s imposition of two sentences in the present , case was improper.
We affirm but remand with directions to vacate the sentences as imposed and to resentence the defendant for breaking and entering taking into account the penalty enhancement provision set forth in MCL 769.12; MSA 28.1084.
See Hendrick for a detailed discussion of the current Michigan law in regard to the filing of an habitual offender information. | [
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Per Curiam.
Defendant appeals as of right from an order revoking his probation. The revocation was predicated on defendant’s conviction of a crime in violation of the conditions of his probation. The sole issue on appeal is whether at the probation revocation hearing defendant is entitled to collaterally attack the validity of the conviction which forms the basis for the charge of probation violation. In People v Clements, 72 Mich App 500; 250 NW2d 100 (1976), we answered this question in the negative and declared that the only proper manner to challenge the propriety of the underlying conviction is by way of direct appeal. In the respect that People v Brooks, 16 Mich App 759; 168 NW2d 658 (1969), can be construed as holding that questions concerning the validity of the conviction may be raised at the revocation hearing, it is no longer controlling. See People v Pickett, 391 Mich 305; 215 NW2d 695 (1974).
Affirmed. | [
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Per Curiam.
Once again this Court is asked to determine whether Michigan’s felony-firearm statute MCL 750.227(b); MSA 28.424(2) is violative of the constitutional protection against double jeopardy. On this issue, prior panels of this Court have divided almost evenly. This panel holds the statute constitutional.
In a three-count information, defendant was charged with (I) assault with intent to do great bodily harm less than murder, MCL 750.84; MSA 28.279, (II) felonious assault, MCL 750.82; MSA 28.277, and (III) possession of a firearm at the time of commission or attempted commission of a felony, MCL 750.227(b); MSA 28.424(2). Pursuant to a plea agreement, defendant entered pleas of guilty to counts II and III. On September 26, 1977, a hearing was held on defendant’s motion to dismiss count III based on alleged constitutional deficiencies of the felony-firearm statute. Following argument, the court denied the motion and sentenced defendant to 32 months to 4 years on count II, said sentence to be served consecutively with the mandatory 2-year term under count III.
We reject defendant’s initial argument that the felony-firearm statute is unconstitutional for over-breadth. Clearly, it is not overbroad in relation to defendant’s conduct. One may not constitutionally challenge a statute on grounds of overbreadth against him when the statute clearly applies. People v Chapman, 80 Mich App 583; 264 NW2d 69 (1978).
On the sensitive question of double jeopardy, strong,and persuasive reasons support each of the conflicting conclusions of the several panels which have addressed the issue. No useful purpose is served by detailing at length the arguments offered in support of the conflicting positions of prior panels. Instead, the task of this panel is to briefly state the opposing views and decide which of the two positions most merits support.
The decisions finding double jeopardy do so by reading the statute literally. Literally read, the statute states that an underlying felony must be shown in order to find the separate crime of felony firearm. Consequently, the underlying felony is always a necessarily included offense of the separate offense of felony firearm. People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975). But our Supreme Court has held that where one of two offenses charged is a necessarily included offense of the other, convictions for both based on the same act constitutes double punishment. People v Martin, 398 Mich 303; 247 NW2d 303 (1976), Peo ple v Stewart (On Remand), 400 Mich 540; 256 NW2d 31 (1977).
Decisions which find no double jeopardy infirmity do so by ignoring the literal reading of the statute and looking to legislative intent. In these decisions the Court finds that the Legislature intended to augment the sentence where a firearm was carried in the commission of a felony. In effect, the statute becomes a sentence-increasing or sentence-augmenting statute. Since the Legislature could have provided by amendment to the underlying felony statute a minimal punishment where the underlying felony is committed with a firearm and since, under Gore v United States, 357 US 386; 78 S Ct 1280; 2 L Ed 2d 1405 (1958), such amendment would not offend the double jeopardy clause, there is no double jeopardy impediment where the same result is reached by separate statute.
It is the conclusion of this panel that the better reasoning lies with the decisions upholding the statute. The legislative intent is so clear that to us it is absurd, or at least awkward, to place technicalities ahead of intent. As was stated in Williams v Secretary of State, 338 Mich 202, 208; 60 NW2d 910 (1953), and quoted with approval in McDowell, supra:
" 'Effect to be Given to True Intent of Act. Modification of Language. — Where the language of a statute, in its ordinary meaning and grammatical construction, leads to a manifest contradiction of the apparent purpose of the enactment, or to some inconvenience or absurdity, hardship or injustice, presumably not intended, a construction may be put upon it, which modifies the meaning of the words, and even the structure of the sentence.’ ”
This panel adopts by reference the McDowell-Blount, supra, rationale and holds inoperable that portion of the felony-firearm statute which creates a separate offense but sustains the defendant’s sentence on grounds that with the offending language removed, the statute sets forth a mandatory minimum term of incarceration on the underlying felony.
Defendant’s conviction for felony firearm is set aside. The sentence is affirmed.
On September 20, 1978, the Court of Appeals released six opinions dealing with the question of whether the additional crime of felony-firearm over an underlying felony containing the use of a firearm constitutes double jeopardy. Three opinions found double jeopardy. Wayne County Prosecutor v Recorders Court Judge, 85 Mich App 727; 272 NW2d 587 (1978), People v Brintley, 85 Mich App 714; 272 NW2d 582 (1978), People v Berry, 85 Mich App 764; 272 NW2d 604 (1978). Four opinions found the statute nonviolative of the constitutional prohibition against double jeopardy. People v Walter Johnson, 85 Mich App 654; 272 NW2d 605 (1978). People v Gary Hughes, 85 Mich App 674; 272 NW2d 567 (1978), People v Mitchell, 85 Mich App 757; 272 NW2d 601 (1978), People v McDowell, 85 Mich App 697; 272 NW2d 576 (1978). On September 21, 1978, Chief Judge Danhof advised the Supreme Court of the split and requested that leave be granted and the issue decided. People v Ronald Blount, 87 Mich App 501; 275 NW2d 21 (1978), follows the McDowell-type rationale and upholds the sentence.
While all five of the cases finding no double jeopardy do so on the basis of legislative intent, three would sustain the felony-firearm conviction. People v Walter Johnson, supra; People v Gary Hughes, supra, People v Brintley, supra. In the other two cases (McDowell, supra, and Blount, supra) the statute is held inoperable as a separate and distinct felony of felony-firearm but nevertheless valid as a sentence enhancement to the underlying felony. See the opinion by Bashara, J., in McDowell for a detailed explanation of the rationale used. | [
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R. B. Burns, J.
Defendant was convicted by a jury of receiving and concealing stolen property, MCL 750.535; MSA 28.803. He appeals and we reverse.
Prior to trial defendant moved to suppress unlawfully obtained evidence and to quash the information. The prosecutor stipulated that the trial court could decide the motions solely on the evidence presented at the preliminary examination. The trial court denied the motions. On review of the trial court’s denial of defendant’s motions, we are limited to consideration of evidence presented at the examination, and may not consider evidence subsequently presented at trial. People v Charles D Walker, 385 Mich 565; 189 NW2d 234 (1971).
Evidence presented at the examination established that furs were stolen from Furs by Ceresnie in Birmingham, Michigan, on September 30, 1976. Sergeant Dennerly, of the Detroit Police Department, was successful in having some of the furs delivered to his police station on October 1, by having an unidentified individual make some telephone calls. Sergeant Dennerly traced one call to 541 Copland, in Detroit, and went there with three other Detroit police officers and a Birmingham police officer. The three other Detroit officers went to the front door, and he and the Birmingham officer went around to the back porch. There were two doors with windows in them, and through one window he saw defendant run downstairs with furs over his arm, and moments later run back upstairs without the furs. He shouted to the officers in front that the furs were in the house, and was shortly let in by one of them. He went to the basement and recovered several furs, which were identified as having been stolen from Furs by Ceresnie. He did not have a search warrant, and did not know how the other officers got into the house.
Defense counsel argued before the magistrate that defendant should not be bound over because no search warrant was obtained, and because Sergeant Dennerly saw defendant with the furs only after trespassing by going to the back porch. The magistrate ruled that there was inadequate evi dence to infer that Sergeant Dennerly was improperly on the back porch. Counsel renewed his argument before the trial court, which also ruled that it could not find Sergeant Dennerly was a trespasser. On appeal, plaintiff argues that the furs were within "plain view”.
"To sustain the validity of a warrantless search the burden rests on the people to demonstrate that the police acted in a reasonable manner, based on probable cause and in response to an exigent circumstance bringing the search under one of the specifically established exceptions to the warrant requirement.” People v White, 392 Mich 404, 410; 221 NW2d 357, 359 (1974), cert den, 420 US 912; 95 S Ct 835; 42 L Ed 2d 843 (1975).
In the instant case the magistrate and trial court have shifted the burden of proof from plaintiff to defendant. The issue is not whether defendant established that Sergeant Dennerly was where he should not be, but whether plaintiff has justified Sergeant Dennerly’s presence on the back porch.
For Fourth Amendment purposes, a search occurs when an individual has a reasonable expectation of privacy in the area searched. Katz v United States, 389 US 347; 88 S Ct 507; 19 L Ed 2d 576 (1967). Depending upon the circumstances, an individual may have a reasonable expectation of privacy in his back yard. See People v Hopko, 79 Mich App 611; 262 NW2d 877 (1977). Certainly many citizens have a reasonable expectation of privacy when they pass before even uncurtained back door windows. Consequently, plaintiff had a burden to elicit facts from which it could be inferred that defendant had no reasonable expectation of privacy when he passed before the window. This plaintiff failed to do.
For the plain view doctrine to apply, the officer must have been rightfully in the position from which evidence was in plain view, the officer must have had prior justification for his intrusion, and the discovery must have been inadvertent. Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971) (Stewart, J), People v Harden, 54 Mich App 353, 358; 220 NW2d 785, 787 (1974). Since plaintiff failed to establish that defendant had no reasonable expectation of privacy in the back porch area, it cannot be said that Sergeant Dennerly was rightfully in a position from which the evidence was in plain view. There was no evidence of consent, hot pursuit, or other justification for Sergeant Dennerly to go to the back porch. While Sergeant Dennerly did not testify as to why he went to the back porch, we infer that he may have been anticipating that someone would attempt to escape out the back, possibly with furs. From the record presented for review, there is a strong inference that Sergeant Dennerly decided to engage in a warrantless "raid” on 541 Copland in order to recover stolen furs. In such circumstance, we would be hesitant to characterize the discovery of the furs as inadvertent.
No evidence was presented at the preliminary examination to establish that the officers at the front door received consent to enter and search the premises. The evidence should have been suppressed and the information quashed.
Since defendant’s first issue is dispositive, we do not reach the other issues raised.
Reversed.
It appears from the trial transcript that, had plaintiff decided to augment the record, substantial issues could have been raised concerning defendant’s standing to raise this issue, consent, and lack of expectation of privacy by defendant. In part because of the woefully inadequate record on this issue, the parties’ briefs on appeal are also inadequate. | [
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Per Curiam.
Defendants were arrested and charged with armed robbery, MCL 750.529; MSA 28.797. After a joint trial, they were convicted by a jury of unarmed robbery, MCL 750.530; MSA 28.798. Defendants appeal as of right.
According to the trial testimony, defendants attempted to force the complainant, Mr. Francis Wilk, from his car while he was stopped at a streetlight. Mr. Wilk testified that he believed one defendant was armed. He resisted, and attracted the attention of a police officer in a nearby patrol car by leaning on his horn. Defendants fled, one of them taking a jar of loose change and bills from the floor of the car. The police officer pursued and apprehended defendant Smith soon afterward; defendant Foster subsequently appeared voluntarily and was placed under arrest at the Battle Creek police station.
I
The first issue on appeal deals exclusively with defendant Smith.
After the prosecutor rested his case, Smith’s counsel asked the prosecutor whether he intended to introduce defendant’s 1968 misdemeanor convictions for unlawfully driving away a motor vehicle, MCL 750.414; MSA 28.646. The prosecutor responded that he planned to offer these prior convictions to show the defendant’s intent or motive in connection with the present charge of armed robbery if the defendant testified. The prosecutor asserted MCL 768.27; MSA 28.1050, as the basis for the admission of this evidence:
"In any criminal case where the defendant’s motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing an act, is material, any like acts or other acts of the defendant which may tend to show his motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing the act, in question, may be proved, whether they are contemporaneous with or prior or subsequent thereto; notwithstanding that such proof may show or tend to show the commission of another or prior or subsequent crime by the defendant.”
Over objection, the trial court ruled that the evidence of the prior convictions fell within the statute and would be admitted on that basis. Defendant Smith did not testify and the evidence was never offered.
Defendant contends that the trial court’s ruling was erroneous on essentially four grounds: (1) the evidence of like acts properly belonged only in the prosecutor’s case-in-chief; (2) the 1968 misdemeanor convictions are not "like acts” within the meaning of MCL 768.27; MSA 1050, and are thus irrelevant to the charged offense of armed robbery; (3) the offered evidence is not material to this charge; and (4) the trial court either failed to recognize its discretion to exclude the evidence or abused its discretion in admitting the evidence, on the grounds that its prejudicial impact far outweighed its probative value.
People v Wilkins, 82 Mich App 260; 266 NW2d 781 (1978), comprehensively sets out the appropriate guidelines on the admissibility of prior bad act evidence under MCL 768.27; MSA 28.1050. These rules summarize the applicable Michigan precedent on this issue and will serve as the guide for our analysis in the instant case.
MCL 768.27; MSA 28.1050 is a legislatively created exception to the general rule that evidence of prior bad acts is inadmissible because of its inherent prejudice to the defendant. The statute permits proof of a defendant’s intent, motive, plan or the absence of mistake or accident by evidence of "like acts”, even if this shows the commission by the defendant of another prior or subsequent crime. However, this exception is governed by four requirements: (1) substantial evidence must show that the defendant actually committed the bad act; (2) some special circumstance about the act sought to be introduced tends to prove one of the statutory items; (3) the evidence is material, i.e., is probative of a matter "in issue”; and (4) even if all three of the above are satisfied, the trial court must still weigh the evidence’s probative value against its prejudicial effect before deciding whether to admit it. People v Wilkins, supra; see also People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976), People v DerMartzex, 390 Mich 410; 213 NW2d 97 (1973), People v Henry, 129 Mich 100; 88 NW 77 (1901), People v Spillman, 63 Mich App 256; 234 NW2d 475 (1975), rev’d on other grounds, 399 Mich 313; 249 NW2d 73 (1976), People v Bledsoe, 46 Mich App 558; 208 NW2d 545 (1973).
Our review of the above-cited precedent indicates that defendant’s second contention, namely, that the evidence of the prior convictions was not relevant to the charged offense of armed robbery, in that those prior convictions specifically involved lack of intent to steal and were not similar to the present charge, is alone sufficient for a finding of error.
It is clear that before a prior bad act by the defendant is admissible, there must be a showing of some special circumstances about that act which are probative of one of the statutory items — here, defendant’s intent or motive. People v Wilkins, supra at 267, People v Oliphant, supra at 488. These special circumstances form the logical connection between the past act and the present charge. United States v Burkhart, 458 F2d 201, 206 (CA 10, 1972). Establishing this connection by showing factual similarities permits the evidence to meet the threshold requirement of relevancy. People v Stander, 73 Mich App 617, 625, n 2; 251 NW2d 258, 262-263, n 2 (1976).
Absent this connection, admission of prior bad acts achieves the very result the general rule on nonadmissibility intends to avoid: the admission of evidence which is relevant only to the defendant’s propensity to commit an offense. People v Der-Martzex, supra, People v Dean, 253 Mich 434; 235 NW 211 (1931). While proof of identical acts is not required to make this connection, People v Streetman, 59 Mich App 49; 228 NW2d 539 (1975), lv den, 394 Mich 798 (1975), it is nevertheless insuffi cient to show merely that a defendant had committed the same crime in the past. Rather, cases treating the "like acts” requirement speak in terms of a common thread of facts or circumstances between the past act and the offense for which defendant is on trial. See People v Duncan, 402 Mich 1; 260 NW2d 58 (1977) (use of an informer by defendants to obtain payoffs in exchange for police protection), People v Oliphant, supra (orchestration of circumstances surrounding rapes to make proof of nonconsent difficult), People v Lundberg, 364 Mich 596; 111 NW2d 809 (1961) (subsequent burglary unrelated to prior homicide inadmissible), People v Stander, supra (involvement in prior auto theft with identical copartici-pant).
In the instant case, we fail to see the common thread between the defendant’s prior convictions for unlawfully driving away a motor vehicle which would be probative of his intent with regard to the charged offense of armed robbery. The connection is particularly difficult to make in light of the fact that the prior convictions for unlawfully driving away an automobile did not involve intent to steal but are being offered to show the defendant’s intent to steal in the armed robbery charge. Aside from the fact that the offense for which the defendant is on trial incidentally also involved an automobile, there are no facts on the record to indicate any further similarities between the past acts and the current offense. In addition, the extreme remoteness in time of the former misdemeanors also weakens their already tenuous connection and tendency to establish the defendant’s intent relative to the charged offense. People v Henry, supra at 101.
We note that when challenged on this absence of similarities, the prosecution argued that the prior convictions were admissible to show intent because "any criminal conviction requires a criminal intent”. To admit prior bad acts into evidence on such grounds encourages a jury to convict a defendant merely because "he is a bad man”. People v Wilkins, supra at 265. Avoiding this type of prejudice is precisely the purpose for the general exclusion of such evidence; the prosecutor cannot avoid this rule merely by invoking the statutory exception without the necessary showing of similarities.
The lack of similarity between the past and present offenses, coupled with the remoteness in time of the misdemeanors, thus prevents us from perceiving that "visible connection”, United States v Burkhart, supra at 206, n 8, necessary to find that the misdemeanors are "like acts” within the meaning of MCL 768.27; MSA 28.1050, admissible to prove the defendant’s intent in the instant case. The trial court therefore erred in ruling in favor of their admissibility.
The prosecutor asserts that any error in this regard was harmless and directs our attention to the "overwhelming” evidence against the defendant. We agree it is substantial. It was not so overwhelming, however, to dissuade the prosecutor from insisting on introducing the prior convictions if the defendant elected to exercise his right to testify. As a result the defendant was forced to rely on the often self-serving and contradictory statements of a codefendant in order to present his defense. As reviewing courts have noted in the past, "it is difficult for a jury to believe defendant’s defense when he fails to testify in his own behalf’. People v Killebrew, 61 Mich App 129, 135; 232 NW2d 329, 332 (1975), lv den, 395 Mich 817 (1975), People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). See also People v McCartney, 60 Mich App 620; 231 NW2d 472 (1975), People v Farrar, 36 Mich App 294; 193 NW2d 363 (1971), Gordon v United States, 127 US App DC 343; 383 F2d 936 (1967). We conclude that the error was not harmless beyond a reasonable doubt and reverse.
II
Defendants Foster and Smith jointly raise several additional claims of error.
They argue first that the trial court erred in denying defense counsel’s joint motion for a mistrial on the grounds that a uniformed police officer had led the handcuffed defendants past one of the jurors, and thus prejudiced their presumption of innocence.
Before ruling on the defense motion, the court and counsel examined the officer and juror involved. The officer testified that he approached the juror from behind while escorting the defendants and noticed her speaking to a third party with her back somewhat turned away. The juror testified that she recognized the defendants but noticed nothing unusual about them.
There is no showing, on this record, of prejudice to the defendant that would warrant a mistrial. People v Yarbrough, 78 Mich App 81, 86; 259 NW2d 248, 250 (1977), remanded, 402 Mich 920 (1978). It is apparent that the officer’s actions were inadvertent; furthermore, the juror was sufficiently absorbed in her conversation that her view of the defendants evidently made little impression on her. We therefore find no merit in the defendants’ claim of error on this ground.
We also disagree that the trial court had a duty to give a cautionary instruction to the jury on its own motion concerning this incident. It is true that "a juror’s chance observation of a defendant in custody could, if untreated, provide a source of prejudicial speculation which might infect the ultimate verdict”. (Emphasis added.) United States v Larkin, 417 F2d 617, 618 (CA 1, 1969). In the instant case, the trial court took adequate steps to "treat” whatever untoward effect this view may have had on the jury by examining the juror involved in the presence of counsel and by cautioning her not to discuss the interview. Defense counsel expressed their satisfaction with the procedure and waived any specific instruction. The court had no further duty to instruct the jury on this matter against the wishes of defense counsel and in light of the risk of unnecessarily directing the entire jury’s attention to the incident, thereby possibly increasing its impact. See O’Shea v United States, 400 F2d 78 (CA 1, 1968), cert denied, 393 US 1069; 89 S Ct 726; 21 L Ed 2d 712 (1969). The cases cited in support of the proposition that the court was required to give a cautionary instruction sua sponte as part of its duty to control the conduct of the trial are merely reaffirmations of the court’s duty to curtail any egregious, prejudicial behavior by the participants in the trial, and are thus inapplicable here. For example, see People v Brocato, 17 Mich App 277; 169 NW2d 483 (1969). We therefore find no merit in defendants’ contention.
Defendants next argue that they were deprived of a fair trial on the grounds that the prosecutor, in closing argument, improperly vouched for the credibility of the police officers who testified at trial, thereby causing the jury to suspend its own judgment. Defense counsel did not object to the statements at the time they were made.
Normally, a conviction will not be reversed where there has been no objection and request for a cautionary instruction, unless in all likelihood the instruction would not have eliminated the prejudice arising from the prosecutor’s remarks. People v Tarpley, 41 Mich App 227, 232; 199 NW2d 839, 844 (1972), People v Humphreys, 24 Mich App 411, 414; 180 NW2d 328, 332 (1970).
As an advocate, the prosecutor is free to relate the facts to his theory of the case and to argue the evidence and all reasonable inferences from it to the jury. People v Humphreys, supra. While the prosecutor comments strongly on the reasonableness of the officers’ testimony compared with the defendants’, his remarks stop short of an impermissible personal affirmation in the defendants’ guilt or assurances to the jury that the officers’ version describes what "actually happened”. Compare People v Bigge, 297 Mich 58; 297 NW 70 (1941), People v Pacely, 51 Mich App 67; 214 NW2d 561 (1974), lv den, 392 Mich 786 (1974), with People v McCoy, 392 Mich 231, 239; 220 NW2d 456, 460 (1974), People v Farrar, 36 Mich App 294; 193 NW2d 363 (1971), People v Tarpley, supra, and People v Humphreys, supra. Rather, they tended to emphasize inferences necessary to the prosecution’s case to prove lack of police misconduct. People v Bigge, supra at 68, People v Pacely, supra at 71.
Even if the remarks were arguably improper, we cannot say that whatever prejudice they created could not have been cured by objection and a proper instruction.
We also find that defendant was not denied a fair trial due to the prosecution’s misstatement of the intoxication defense for the reason that the court corrected the prosecutor upon defense objec tion, gave an adequate instruction to the jury concerning the defense and, after consultation with counsel, gave a further clarifying instruction on intoxication upon the jury’s specific request.
Reversed and remanded as to defendant Smith.
Affirmed as to defendant Foster. | [
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On Remand
T. M. Burns, J.
The underlying facts of this case are stated in our prior opinion, People v McCarver, 72 Mich App 311; 249 NW2d 403 (1976). In that initial assessment, a majority of the panel concluded that evidence of illegal marijuana possession or use by the defendant was improperly admitted in a prosecution for possession of amphetamines and reversed the conviction. On further appeal, that conclusion was held to be erroneous, People v McCarver, 403 Mich 376; 269 NW2d 186 (1978), and the case returned to us:
"[F]or consideration of the question of whether the testimony of the Federal agent and the state police detective, standing alone, or when combined with other issues raised by the defendant in the Court of Appeals but not discussed by that Court, served to deny the defendant a fair trial.”
We proceed with that task.
Within a single issue, defendant claims he was deprived of a fair trial by testimonial references to the fact that he had a previous conviction and unspecified, uncharged criminal activity. Because different considerations apply to these points, we discuss these instances in two groups.
The first incident is described in both our earlier opinion and the opinion of the Supreme Court. In response to the prosecutor’s inquiry concerning what the authorities were looking for when the search warrant was executed, the agent from the Federal Bureau of Alcohol, Tobacco & Firearms responded: "We were searching for firearms which were illegal by virtue of their possession by Mr. McCarver who was a convicted felon and certain narcotics or suspected narcotic substances.”
Prior to trial, the trial court had granted defense counsel’s motion to suppress reference to defendant’s 1959 conviction for breaking and entering with intent to commit larceny for purposes of impeachment if defendant should choose to take the stand.
Our courts have recognized that prosecutors and police witnesses have a special obligation not to venture into forbidden areas of testimony which may prejudice the defense. If an officer brings out the fact that a defendant has previously been convicted or charged with crime, even if the answer could be considered nonresponsive, reversible error will have occurred. People v McCartney, 46 Mich App 691; 208 NW2d 547 (1973). This Court has consistently condemned bringing a defendant’s prior record to the jury’s attention where that information is not properly admissible for impeachment purposes. See, e.g., People v Sullivan, 32 Mich App 181; 188 NW2d 247 (1971), People v Thomas Jones, 48 Mich App 470; 210 NW2d 497 (1973), People v Deblauwe, 60 Mich App 103; 230 NW2d 328 (1975).
Given the trial court’s order suppressing reference to defendant’s prior conviction, which was fully justified, and the special duty of prosecutors to steer police witnesses clear of just such responses, we would rest reversal squarely on this point. The fact that defendant was a convicted felon was not relevant to the issues in this case, regardless of any possible relevance in the Federal prosecution.
Defendant also complains of six other separate references by various prosecution and defense witnesses to uncharged or unspecified criminal activity. The thread common to each of these references is the defense theory at trial. The defense contended that defendant had been "set up” by the police or persons working for the police and did not knowingly and intentionally possess a controlled substance. The complained of comments all occurred in trying to prove or disprove that defendant’s name was brought to the authorities’ attention by persons already incarcerated and not vice versa, or in attempting to show the possible bias of the defense witnesses. Admission of this evidence could be justified, by one theory or an other, under the holding of People v Spillman, 399 Mich 313; 249 NW2d 73 (1976), that evidence admissible for one purpose is admissible, notwithstanding the fact that it may be inadmissible if introduced for another purpose. We would not rest reversal on these other references to criminal activity.
The final issue which must be discussed is whether defendant was deprived of a fair trial by the fact that four of the members of the jury which decided his guilt had also been members of the jury which convicted Ricky Miller, a defense witness, for arson.
The fact that several prospective jurors had earlier been members of Miller’s jury panel was brought to light during voir dire. The court questioned each of these jurors to determine if they could impartially deal with Miller’s testimony in light of their prior contact with him. The one juror who was unsure of his impartiality was excused. The four other jurors involved each affirmed that they would consider this case and Miller’s testimony impartially. Defense counsel did not attempt to challenge the remaining four jurors either for cause or peremptorily.
Defendant’s only allegation is that the trial court had a duty to be assured that the jurors had not formed an opinion about the defendant from their knowledge of one of his witnesses. From our review of the record, we conclude that the trial court did exactly what defendant had asked. There was no error.
Reversed and remanded for new trial.
Different considerations might apply had the answer been in response to a question from defense counsel or had the answer come from someone other than a police officer. See, People v Fisher, 77 Mich App 6; 257 NW2d 250 (1977), lv den 402 Mich 811 (1977), People v Chambers #1, 64 Mich App 311; 236 NW2d 702 (1975), lv den 399 Mich 850 (1977).
The statute provides that it is unlawful for any person knowingly or intentionally to possess a controlled substance, MCL 335.341(4)(b); MSA 18.1070(41)(4)(b). The information in this case charged that defendant did knowingly and intentionally possess a controlled substance. The trial court originally instructed the jury in accordance with the statute, but upon defendant’s request instructed the jury that it would have to find the defendant knowingly and intentionally possessed a controlled substance as was charged in the information.
Miller was one of several individuals to testify that while in jail awaiting trial on an unrelated offense, he had been approached by officers who promised him some consideration if he would aid in securing a conviction of McCarver on some unspecified charge. | [
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Allen, P.J.
Does §961 of 1976 PA 66, MCL 168.961; MSA 6.1961, an act amending the removal and recall of public officials provisions of the Michigan Election Law* require the clerk of the governmental unit whose elected officials’ recall is sought, to compare each signature on the recall petitions with the signature appearing on the registration card, or is it sufficient if comparison be made with the names on voter print-out lists on file in the clerk’s office? The trial court ruled that comparison with the signatures on the original registration cards was required, and entered an order staying the recall election of plaintiff council members. From this order the defendant city clerk appeals. We reverse.
On July 25, 1977, recall petitions containing some 35,000 signatures for the recall of plaintiffs, members of the Southfield City Council, were submitted to defendant city clerk. Upon submission, each signature was checked against an IBM printout which showed the voter number, name, address, precinct number, date of birth, and date last voted of each registered elector. The print-out did not contain the signature of the elector. Only if the signature on the petition was illegible was the original signature card checked. As the signatures were checked against the print-out, a notation was made on the print-out so that duplicate signatures could be eliminated. Eight of the clerk’s office staff, augmented by six to eight people from other offices, working overtime each night until 9 or 10 p.m., completed the task in 14 days. According to defendant city clerk it would not have been possible to check each signature against the original signature within the 15-day period allowed by the statute but would have taken twice as long.
Upon completion of the task, the clerk attached a certificate on a form approved by the Secretary of State showing the number of signers on each petition who were registered voters, and the petitions were then filed with the Oakland County Clerk who in turn submitted them to the Oakland County Elections Director who, after counting the signatures as verified by the city clerk, certified the petitions to the Oakland County Scheduling Committee to propose a date for a special election. On August 12, 1977, plaintiffs filed in circuit court a petition for injunctive and declaratory relief. Following an evidentiary hearing at which testimony was given by election officials, the trial court ruled that the city clerk had failed to follow the mandates of the statute and set aside the election which was scheduled for September 27, 1977. An amended final order to this effect was entered September 26, 1977. From that order, defendant city clerk appeals to this Court.
Section 961 as it appeared prior to amendment is set forth below:
"Sec. 961. Whenever petitions signed as provided in sections 954, 955 or 956 of this act are filed against any officer, the official with whom such petitions are filed shall immediately cause the same to be checked with the registration lists to ascertain whether the signatures to said petitions are those of registered electors as stated therein and, if the official with whom such petitions are filed is not the custodian of the registration lists, then he shall have access to said lists for the purpose of making such check. Provided, That if the electoral district of the officers sought to be recalled is constituted of more than 1 city or township, then before such petitions are filed there shall be attached to the same the certificates of the clerks of the several cities and townships showing that the signers to said petitions are registered and qualified electors of the respective cities and townships. The clerk of each city and township before attaching such certificate shall have authority to strike out the names of all persons who are not registered electors of the city or township.”
As amended, § 961 reads as follows:
"Before a recall petition is filed the petition shall be submitted to the clerk of the governmental unit appearing the heading of the petition. The clerk shall compare the signatures of the petition with the registration records on file in his office and shall within 15 days after receipt of the petition attach to the petition a certificate showing the numbers of signers on each petition sheet who are registered electors of the governmental unit. The certificate shall be on a form approved by the secretary of state.”
The substitution of the word "compare” for the word "check” makes our decision difficult and close. Certainly the change in words provided a rational basis for the decision of the court below. Nevertheless, we do not agree. Five reasons support our conclusion.
First, in the absence of clear and specific language, a major change in policy may not be read into the statute. Roberts v IXL Glass Corp, 259 Mich 644, 648; 244 NW 188 (1932). It has long been recognized that handwriting similarity is so much a matter of opinion and so indefinite that generally it may not be acted upon in canvassing petitions. Thompson v Secretary of State, 192 Mich 512, 527; 159 NW 65 (1916). Thus, signatures appearing on petitions filed with the Secretary of State for initiative and referendum are presumed valid, and the burden is on the protestant to establish their invalidity by clear, convincing and competent evidence. In Karwick v Grajewski, 253 Mich 110; 234 NW 168 (1931), a case involving the sufficiency of signatures to petitions for the recall of the mayor of Hamtramck, the Court held that the city clerk was not to act as a handwriting expert. It is common knowledge that signatures change with age or illness. Penmanship when first registering is often different from a signature in later life. Handwriting hastily affixed to a petition at a shopping center or while standing on a street corner differs materially from handwriting leisurely affixed sitting at a desk.
Despite the fact that Thompson involved the canvass of petitions for the initiative rather than a recall, and Karwick was decided under an earlier Michigan statute which did not contain either the word "check” or "compare”, the reviewing process of recall petitions never involved the comparison of handwriting. Instead, the common practice in municipalities using the registration card system only, was to check the signature on the petition with the name on the signed registration card, and in municipalities using the print-out or other systems, to check the signature on the petition with the name on the print-out list. As interpreted by the trial court, the statute would materially change the well established practice. Had the Legislature intended so major a change it would have expressed such intent in the same clear and unambiguous language, viz: "Shall compare the signature on such application with the signature on the registration card”, as appears in § 523 governing the application for ballot requirements.
Second, the amending act substituted the word "records” for the word "lists” in the prior act. We find this change important. When the 1954 Michigan Election Law was passed, the only voting records in use or on hand were the registration cards. These are uniformly described as "registration lists” in the 1954 statute. By 1976, as noted earlier, a number of local units of government had augmented the signature card system with the print-out system. As augmented, the signature cards and the print-outs became the registration records. To us, the word "records” is more inclusive than "lists” in the limited way that word was used in the 1954 statute and clearly evidences a legislative intent to permit the use of more than the old registration cards. The "more” includes the print-out system then in use in many municipal units of government.
Third, the purpose of 1976 PA 66 was to shift the recall process to a different unit of government. An analysis of House Bill 5039, made just before its enactment, by the Analysis Section of the House of Representatives, House Committee on Elections, reads:
"At the present time, petitions for the recall of any elected county, township, city, village, or school official are filed with the clerk of the governmental unit involved (except that petitions for recall of the county clerk are filed with the probate judge). Some persons believe that it is extremely difficult for a clerk to deal with a recall petition for an official with whom he/she works closely. Further, it is almost impossible to convince the circulators of the petition that the certification is being handled objectively. For these reasons, some persons contend that recall petitions should be processed by a different level of government.
Nowhere in the bill analysis or in media releases following final enactment was any mention made that the bill prescribed a different canvassing methodology than had been practiced before. The absence of any reference by the analysis staff to a change in the well established practice of determining the sufficiency of petitions strongly suggests that the Legislature intended no such change.
Fourth, shortening the time within which the clerk is to canvass the petitions is inconsistent with the additional time required if the amendment requires a comparison of signatures. Prior to its amendment in 1976, the statute carried a 30- day deadline for completion of the petition checking process. MCL 168.963; MSA 6.1963. As amended by 1976 PA 66, the clerk was given 15 days to complete the canvassing process. Testimony taken by the trial court was convincing that double the time period is required if comparison must be made with the original registration card rather than a print-out list. It is inconceivable that the Legislature would shorten the time span if it had indeed intended to mandate the more lengthy process required under the statute as construed by the trial court.
Fifth, the use of computer print-out lists is approved by the Legislature. As stated earlier, many cities have placed the information appearing on the original voter registration cards onto computer print-outs. House Bill 5456, signed by the Governor on July 11, 1978, recognizes the practice. Under this bill, signatures placed on an application to vote may be compared with the name on the print-out rather than with the handwriting on the original registration card. This bill indicates legislative recognition and approval of "comparing” signatures with registered names rather than with specific signatures. It would be anomalous for the Legislature to permit verification of voters against names on computer print-outs at the initial point in an election, and then require signature to signature comparison at the recall stage, a point much later in the election process.
Reversed, no costs, a public question being involved.
Removal and recall is covered in §§ 951-976 of the Michigan Election Law, 1954 PA 116. In 1976, the Legislature made major changes in these sections upon enacting 1976 PA 66. See MCL 168.951 et seq.; MSA 6.1951 et seq.
"In trying to ascertain the legislative intent I observe that when the legislature was considering this matter under House Bill 5039 that the word 'checked’ was then changed to the word 'compare’ so I want Mr. Downs and all counsel, you, Mr. Hays, Mr. Beras, to know that I have examined that, too. * * * My interpretation of the word 'compare’ means to examine in order to discover like or unlike characteristics. The statute as amended now requires a comparison and no matter how difficult the task might have been, that is the mandate of the legislature. It no longer means to take the recall petitions and with their signatures and lay them alongside of a printout on registration lists. The best definition I can find in the law about signature itself, 'signature means a person’s name as written down or set down by himself. Therefore it becomes and must be the ruling of this Court that the recall petitions could not be used as a basis for setting up the election date until the comparison is actually made with the written signatures on the registration lists, cards, indexes. So having held the evidentiary hearing this Court now grants a preliminary injunction and temporary restraining order against the certification of the adequacy of the petitions, and the recall elections scheduled for September 27,1977 is cancelled.”
At least nine cities were using computer print-outs in 1976. The units using such system were Midland, Flint, Saginaw, Lansing, East Lansing, Grand Rapids, Mt. Pleasant, Warren and Southfield.
See footnote 7.
During its passage through the Legislature, 1976 PA 66 was House Bill 5039.
Upon signing, House Bill 5456 became 1978 PA 338 (MCL 168.501a; MSA 6.1501[1]).
The fact that House Bill 5456 was adopted after recall petitions were presented in the instant case does not change our decision. House Bill 5456 amended § 523 of the Michigan Election Law. MCL 168.523; MSA 6.1523. That section refers to the initial voting stage and, prior to amendment, stated that before a person offering to vote is handed a ballot the election official "shall compare the signature on such application with the signature on the registration card”. Because § 523 was specific, legislation was necessary to change the procedure. Section 961 did not require signature to signature comparison. | [
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Bashara, J.
This appeal arises from a ruling by the Michigan Employment Relations Commission (MERC) that plaintiffs were not disqualified from serving as bargaining representatives for teachers from both the school systems.
Defendants Kalkaska Board of Education and Vanderbilt Area Schools, ably assisted by comprehensive briefs of amici, contend the Northern Michigan Education Association (NMEA) is an improper bargaining representative for the teachers in their respective systems. The defendants primarily base their contention on the provisions of the labor mediation act, MCL 423.9e; MSA 17.454(10.4). Defendants argue the statute provides that the bargaining unit shall be the employees of one employer, and that the school board is required to deal with a labor organization only when it exclusively represents their employees. Defendants claim that a union representing more than one bargaining unit involving several school systems creates a conflict of interest.
The section in question states:
"The commission, after consultation with the parties, shall determine such a bargaining unit as will best secure to the employees their right of collective bargaining. The unit shall be either the employees of one employer employed in one plant or business enterprise within this state, not holding executive or supervisory positions, or a craft unit, or a plant unit, or a subdivision of any of the foregoing units. If the group of employees involved in the dispute was recognized by the employer or identified by certification, contract, or past practice, as a unit for collective bargainings the commission may adopt that unit.” MCL 423.9e; MSA 17.454(10.4).
A close reading of that section reveals that it does not place a restriction on the bargaining representative, but restricts the bargaining unit itself. In the present case, there is no dispute as to the appropriateness of the bargaining unit.
The public employment relations act (PERA), MCL 423.201 et seq.; MSA 17.455(1) et seq., is the dominant law governing public employee labor relations in Michigan. The Lamphere Schools v Lamphere Federation of Teachers, 400 Mich 104; 252 NW2d 818 (1977). Section 9 of the PERA provides that,
"It shall be lawful for public employees to organize together or to form, join or assist in labor organizations, to engage in lawful concerted activities for the purpose of collective negotiation or bargaining or other mutual aid and protection, or to negotiate or bargain collectively with their public employers through representatives of their own free choice.” MCL 423.209; MSA 17.455(9).
A provision similar to the above cited PERA section is found in the National Labor Relations Act, 29 USC 157.
Our Supreme Court has frequently indicated reliance upon construction of provisions of the NLRA through decisions of the National Labor Relations Board and the Federal Courts in construing the analogous state statute. Rockwell v Crestwood School District Board of Education, 393 Mich 616; 227 NW2d 736 (1975).
Several Federal decisions have found that the principal concern is whether a collective bargaining representative was the free choice of the employees. The manner of selection and the representative chosen are matters exclusively within the province of the employees. The employer has no voice in choosing the representative for its employees and must maintain neutrality in the selection process. NLRB v Jones & Laughlin Steel Corp, 301 US 1; 57 S Ct 615; 81 L Ed 893 (1937), Minnesota Mining & Mfg Co v NLRB, 415 F2d 174 (CA 8, 1969).
The NMEA admittedly represents employees of several school districts. Defendants contend this creates sufficient conflict so as to preclude the NMEA from serving as bargaining representative to any single school district.
Defendants rely on Bausch & Lomb Optical Co, 108 NLRB 1555; 34 LRRM 1222 (1954), in support of their position. However, in that case the union had set up an optical business which directly competed with the employer. Likewise, in Bambury-Fashions Inc, 179 NLRB 447; 72 LRRM 1350 (1969), a union was disqualified because it was operating a business in direct competition with the employer. The NLRB reasoned that the union’s interests in representing the employee salesmen conflicted substantially with its primary interest in coordinating the activities of its affiliates. See also NLRB v David Buttrick Co, 399 F2d 505 (CA 1, 1968), where the Court affirmed an NLRB hold ing that the danger of conflict was not clear and present.
The facts in the case at bar are distinguishable from those cited by defendants. The competition factor is not present here. We agree with the administrative law judge and MERC that the possibility of a substantial conflict of interest is too remote to preclude the NMEA from representing teachers in different school districts.
Defendants also contend that a hearing on objections to an election petition is the proper method for determining whether a labor organization with alleged extra-unit interests is disqualified from acting as collective bargaining representative. Neither the plaintiffs nor MERC has addressed this issue in their respective briefs.
We accept the premise of defendants as correct, not only because plaintiffs have failed to respond, but because a challenge to an election petition is a proper method of determination in such a case. See NLRB v H P Hood Inc, 496 F2d 515 (CA 1, 1974), and City of Hart, 1976 MERC Labor Opinions p 252.
Defendants’ final argument is that this Court should permit the record in this case to be supplemented by the transcript and exhibits of an unfair labor practice hearing held on August 9, 1977. The hearing in question was held approximately seven months after the appeal bringing the principal matter before this Court.
GCR 1963, 820.1 empowers the Court of Appeals to add relevant evidence it deems necessary to resolve a matter before it. However, defendants have shown no good cause for supplementing the present record with after-acquired testimony. We also consider that defendants made no objection to the record when they appealed to this Court. It should also be noted that this Court has already rejected such a request.
We conclude that there has been no showing that a conflict of interest exists which will interfere with the plaintiff representative’s loyalty to the defendants’ employees.
Affirmed, no costs, a public question being involved.
This matter originally came to the Court of Appeals on an application for leave to appeal a MERC opinion ordering an election in the Kalkaska school system. Defendants appealed this Court’s denial of the application to the Supreme Court. In lieu of granting leave to appeal, the Supreme Court remanded the case to this Court for consideration as on leave granted, 401 Mich 826 (1977). The record in the Kalkaska hearing was adopted in the case involving the Vanderbilt Area Schools and the cases were consolidated for appeal here. | [
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R. M. Maher, J.
Michigan Bell Telephone Company brought this interpleader action to determine rights of potential claimants to a sum of money due defendant C & C Excavating for services rendered under a construction contract between Bell and C & C Excavating, as general contractor. Other defendants include various subcontractors and the Michigan Department of Treasury. Default judgments were entered against all defendants except the Department of Treasury and two subcontractors. The Treasury Department, Shores Re-Steel, Inc., and Auburn Supply Company, Inc., filed answers and cross-claims alleging priority of their claims to the subject fund. Shores Re-Steel and Auburn Supply also filed counterclaims against plaintiff Michigan Bell, alleging that plaintiff was liable for certain sums due them from the general contractor, C & C Excavating, for work performed and materials supplied for the job performed for Michigan Bell by C & C. From judgments rendered against Bell in favor of the Treasury Department, Auburn Supply and Shores Re-Steel, Michigan Bell now appeals.
Auburn Supply based its counterclaim on a provision of the contract between Michigan Bell and C & C Excavating which provides as follows:
"The Contractor, if required by the Construction Superintendent before the making of any payment, or at any time during the progress of the work, shall furnish said Construction Superintendent with evidence, in such form as the Construction Superintendent shall require, that all claims, causes of action for damages and all claims or liens for payment of wages or salaries or for payment for tools, machinery or supplies have been paid, released or settled, and in case such evidence be not furnished as aforesaid, such amount as said Construction Superintendent may consider necessary to meet any and all of such claims, shall be retained from any moneys otherwise due the Contractor hereunder, until such claims, causes of action or liens shall have been fully satisfied and until such evidence shall have been furnished.”
Shores Re-Steel also relied on the above-quoted contract provision, alleging in one count that it was a third-party beneficiary of the contract between Michigan Bell and C & C Excavating, and that Michigan Bell breached a duty owed to subcontractors under the contract with C & C to withhold payment from C & C until C & C furnished evidence that claims of subcontractors had been paid. In a second count, Shores Re-Steel alleged that Michigan Bell was negligent in failing to withhold payment from C & C until furnished evidence of payment of claims. In a third count, Shores Re-Steel alleged wrongful disclosure by Michigan Bell in response to a writ of garnishment served on Bell on November 2, 1973, in connection with a lawsuit brought by Shores Re-Steel against C & C Excavating.
Although the pleadings alleged primarily that Michigan Bell was negligent in failing to withhold payment from C & C Excavating under its contract until C & C furnished evidence of payment to subcontractors, the evidence presented at trial was directed at establishing that Michigan Bell’s agent had agreed to pay the subcontractors’ accrued claims against C & C Excavating. The trial court’s opinion, on the other hand, states that once C & C abandoned the project, Michigan Bell assumed the role of general contractor and thereby assumed C & C’s obligations to the subcontractors. The trial court also ruled that Michigan Bell negligently continued to pay C & C after it became aware that C & C had abandoned the project. Thus it appears that the counterclaims were pled on one theory, tried on a second theory and decided on still a third theory. We find, however, that none of the theories presented entitles counterplaintiffs to recover from Michigan Bell.
Dealing first with Shores Re-Steel’s challenge to the garnishment disclosure, we agree with the trial court that Shores’ failure to file a timely challenge to the disclosure under GCR 1963, 738.6 and 738.9 bars it from raising the issue in this proceeding.
Prior to trial, all parties stipulated to the validity of the claims asserted by defendants against C & C Excavating. It was further agreed that the question of priority of claims to the interpleader stake would be submitted for decision on briefs to be filed after the trial. The sole issue upon which testimony was taken was the counterclaims of Auburn Supply and Shores Re-Steel against Michigan Bell.
Auburn Supply presented testimony of Daniel Alexánder, the secretary-treasurer of C & C Excavating, Inc., to the effect that he told a representative of Michigan Bell, one Ed Heichel, at the end of July, 1973, that C & C was in financial difficulties and could not finish the job, and that Alexander would undertake to finish the job started by C & C, forming a new company for that purpose. Alexander further testified that Heichel agreed to pay subcontractors directly, and did in fact pay some subcontractors. He testified that he sent letters to Mr. Heichel authorizing direct payment of Auburn Supply and Shores Re-Steel. Stephen Messina, president of Auburn Supply, testified that he believed oh the strength of Mr. Alexander’s telephone conversation with Mr. Heichel, which he overheard, that his company would be paid directly by Michigan Bell for past and future deliveries of materials. . Messina acknowledged that no representative of Michigan Bell had ever told him directly that Bell would pay him.
As evidence in support of its counterclaim, Shores Re-Steel adopted the testimony of Daniel Alexander and entered into evidence a writ of garnishment previously served on Michigan Bell.
All the many theories raised in this case allege negligence on the part of Michigan Bell. In order to recover on a negligence theory, the subcontractors must prove that Michigan Bell owed them a duty, that it breached that duty and that they were damaged as a result of that breach, Clark v Dalman, 379 Mich 251; 150 NW2d 755 (1967). The primary theory pled by the subcontractors in their counterclaims was that Michigan Bell’s duty to them arose out of Bell’s contract with C & C Excavating. The evidence presented at trial sought to establish that Michigan Bell promised to pay C & C’s obligations to its subcontractors. The theory on which the trial court apparently based recovery was that Michigan Bell assumed the obligations of C & C Excavating by continuing the construction project after it knew of C & C’s precarious financial position.
The Supreme Court dealt with the first two theories in Roulo v Automobile Club of Michigan, 386 Mich 324; 192 NW2d 237 (1971), a case similar on its facts to the case at bar. In Roulo, as in the case now before us, the general contractor on a construction project went bankrupt, leaving a subcontractor unpaid. The subcontractor sued the owner of the building which was the subject of the contract, claiming that the owner was negligent in not requiring the general contractor to furnish a labor and material bond, as specified in the construction contract. The trial court granted defendant’s motion for summary judgment for failure to state a cause of action, and the Supreme Court affirmed. The Roulo Court noted that plaintiff alleged negligence, and could therefore recover only if defendant owed him a duty and breached that duty. The Court rejected the claim that a duty to subcontractors could arise out of a bond requirement in the general contract, Roulo, supra, 328-329:
"Plaintiff * * * tells us that the defendant undertook to render him assistance in collecting his bill from the contractor; that such undertaking was in the form of requiring the contractor to furnish a bond; that the assistance was rendered negligently in that the defendant failed to secure the bond as undertaken.
"The theory is ingenious, but it does not fit.
"The owner’s indirect promissory representation that a bond would be given can hardly create a more binding obligation than a direct promise to the plaintiff to pay him or see that the general contractor pays him.
"In such a case, the law is clear and well settled. MCLA § 566.132 (Stat Ann 1970 Rev § 26.922) provides that such promises must be in writing. We have many times held this statute applicable to cases of this kind. Welch v. Marvin (1877), 36 Mich 59; Carr v. Leavitt (1884), 54 Mich 540; Dupuis v Improvement Co. (1891), 88 Mich 103; Ramsdell v The Citizen’s Electric Light & Power Company (1894), 103 Mich 89; Wilhelm v Voss (1898), 118 Mich 106; Sherman v. Alberts (1908), 153 Mich 361; Raridan v. Bick (1932), 259 Mich 200.
"Even the action of the owner of making payments to the subcontractor does not create an obligation to pay, in the absence of a writing. Preston v. Young (1881), 46 Mich 103.”
Accord, Shurlow Tile & Carpet Co v Farhat, 60 Mich App 486; 231 NW2d 384 (1975).
The situation in the case at bar is identical to that presented in Roulo, supra, with the additional factor of an alleged oral promise by Michigan Bell’s agent to pay the contractor’s debts. Neither the provision in Bell’s contract with C & C Excavating nor the alleged oral promise to pay C & C’s obligations can form the basis of recovery on the subcontractor’s counterclaims.
Regarding the theory that Michigan Bell assumed the role of general contractor when C & C abandoned the project, we find that the facts simply will not support such a theory. Alexander testified that when it became apparent that C & C would be unable to continue, he formed his own company and undertook (with the knowledge of Heichel) to complete the project in the name of C & C Excavating, in order to protect his own reputation in the construction business. Thus it seems clear that if anyone assumed the role of general contractor, it was the new company formed by Alexander, not Michigan Bell. The fact that Bell in fact paid some subcontractors does not create an obligation to pay others, Roulo, supra.
The trial court in its opinion dealt exclusively with the counterclaims against Michigan Bell, making no reference to the original interpleader action. When the Department of Treasury presented a proposed judgment awarding the inter-pleaded fund to the State of Michigan, the court altered it to award a money judgment against Michigan Bell for the amount of the interpleaded fund. Michigan Bell claims that the trial court erred in awarding the Treasury Department a money judgment when the Treasury filed no counterclaim and sought only to claim the interpleaded fund. The Treasury Department, on the other hand, urges us to hold that the judgment entered was in fact nothing more than an award of the interpleaded fund.
GCR 1963, 518.3 gives trial courts broad powers to grant relief to the prevailing party, even if such relief has not been demanded in the pleadings, Tomei v Bloom Associates, Inc, 75 Mich App 661; 255 NW2d 727 (1977); see also Livingston v Krown Chemical Mfg, Inc, 394 Mich 144; 229 NW2d 793 (1975). The relief granted, however, must be supported by the evidence adduced at trial, Tomei, supra. In the case before us there is no evidence which would justify a finding that Michigan Bell is personally liable for the back taxes owed by C & C Excavating.
Having concluded that none of the parties is entitled to a money judgment against Michigan Bell, we must determine which of the three claimants is entitled to the interpleaded fund. The Department of Treasury contends that it is entitled to the fund by virtue of withholding and motor fuel tax liens authorized by MCL 206.351; MSA 7.557(1351), MCL 206.431; MSA 7.557(1431) and MCL 207.114; MSA 7.304, and recorded on November 7 and November 9, 1973, pursuant to MCL 211.682; MSA 7.753(52). Auburn Supply and Shores Re-Steel contend that the tax liens never attached to the interpleaded funds because C & C Excavating was required by MCL 570.151; MSA 26.331 to hold those funds in trust for subcontractors and materialmen, and C & C therefore never had title to the said fund. This argument, however, ignores the provision of the Michigan Income Tax Act which requires an employer to hold taxes withheld from wages as a trustee for the state, MCL 206.351; MSA 7.557(1351). The same statutory section provides that such taxes are payable to the state within 15 days after the end of the month in which they are withheld. The affidavit attached to the Treasury Department’s amended answer sets forth its claim (undisputed by Auburn and Shores) that as of the end of June, 1973, more than $15,000 in unpaid taxes and penalties had accrued. It is thus clear that a trust in favor of the state for more than the amount interpleaded had arisen prior to the time defendants Auburn and Shores performed the work upon which their claims are based.
The Treasury Department’s lien is prior to all other unrecorded liens, MCL 206.431; MSA 7.557(1431), and against all liens attaching after recording of the tax liens. The Department of Treasury is therefore entitled to the interpleaded fund. We remand to the trial court for entry of a judgment to that effect.
Reversed and remanded for proceedings consistent with this opinion.
C & C Excavating, apparently as a result of financial difficulties, had abandoned the job prior to completion and had ceased functioning, leaving a number of subcontractors and materialmen unpaid. The fund which is the subject of Michigan Bell’s interpleader action apparently represents the remaining amount due C & C for work performed prior to the time it abandoned the job.
Heichel died prior to trial, and plaintiff Michigan Bell objected to Alexander’s testimony, on grounds that it was barred by the dead man’s statute, MCL 600.2166; MSA 27A.2166. Plaintiff raises this issue on appeal as well. However, because of our disposition of the other issues raised on appeal, we do not reach the issue of admissibility of Alexander’s testimony.
He testified that subsequent deliveries totaled $884.17 in price.
We are aware of the rule that the Statute of Frauds must be pled as an affirmative defense, GCR 1963, 111.7; Trisch v Fairman, 334 Mich 432; 54 NW2d 621 (1952). We are of the opinion that such a requirement may be considered waived where, as here, the alleged oral promise was itself not pled.
The cited section reads as follows:
"In the building construction industry, the building contract fund paid by any person to a contractor, or by such person or contractor to a subcontractor, shall be considered by this act to be a trust fund, for the benefit of the person making the payment, contractors, laborers, subcontractors or materialmen, and the contractor or subcontractor shall be considered the trustee of all funds so paid to him for building construction purposes.”
MCL 206.351; MSA 7.557(1351), prior to its amendment, provided in pertinent part:
"(2) The taxes withheld under this section shall be returned and paid to the department by the employer within 15 days after the end of any month in which the amount withheld exceeds $100.00. In the case of lesser amounts payment shall be made within 15 days after the end of the quarter period ending in March, June, September and December.
"(3) Every employer required by this section to deduct and withhold taxes on compensation shall be liable for the payment thereof to the state and shall not be liable to any individual for the amount of such payment.”
The exhibits and evidence reveal that the materials were furnished and the work was performed by Auburn and Shores during July, August and September of 1973.
Shores Re-Steel obtained a judgment against C & C Excavating on December 23, 1974. However, the tax liens had already been recorded and therefore are prior to Shores Re-Steel’s judgment lien. | [
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Bashara, J.
The majority accepts the facts as set forth in our brother’s dissent. In view of People v McDowell, 85 Mich App 697; 272 NW2d 576 (1978), and People v Blount, 87 Mich App 501; 275 NW2d 21 (1978), we set aside defendant’s felony-firearm conviction, but uphold the sentence as an augmentation of the penalty in the underlying felony.
V. J. Brennan, J., concurred. | [
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V. J. Brennan, J.
On July 6, 1977, defendant Ronald Blount pled guilty in Recorder’s Court to armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm in the commission of a felony, to-wit, armed robbery, MCL 750.227b; MSA 28.424(2). Defendant was sentenced to 4 to 10 years on the armed robbery and 2 years on the felony firearm, such sentences to be served consec utively. Defendant brings this appeal by right, GCR 1963, 806.1.
Defendant raises four issues on appeal, two of which merit discussion.
Defendant argues that the felony-firearm statute is unconstitutional because it amends a large number of statutes without re-enactment and publication, contrary to 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 re-enacted and published at length.”
The Supreme Court in Advisory Opinion re Constitutionality of 1972 PA 294, 389 Mich 441; 208 NW2d 469 (1973), cites with approval the rationale behind the foregoing prohibition as enunciated by Justice Cooley in People v Mahaney, 13 Mich 481, 497 (1865), which follows:
"An amendatory act which purported only to insert -certain words, or to substitute one phrase for another in an act or section which was only referred to but not republished, was well calculated to mislead the careless as to its effect, and was, perhaps, sometimes drawn in that form for that express purpose. Endless confusion was thus introduced into the law, and the Constitution wisely prohibited such legislation. But an act complete in itself is not within the mischief designed to be remedied by this provision, and cannot be held to be prohibited by it without violating its plain intent.”
It is clear that the felony-firearm statute does not fall within "the mischief designed to be remedied by” the constitutional provision. The statute in question is complete within itself, requires reference to no other statute for its meaning, nor does it alter or amend another statute by reference to the other statute’s title. Therefore, the felony-firearm statute is not violative of Michigan Const 1963, art 4, § 25.
The defendant also contends that his convictions and consecutive sentences for armed robbery and felony firearm arising from a single robbery violate constitutional prohibitions against double jeopardy.
Initially we must point out that the guarantee against double jeopardy "protects against multiple punishment for the same offense”. North Carolina v Pearce, 395 US 711, 717; 89 S Ct 2072; 23 L Ed 2d 656 (1969), People v Stewart (On Rehearing), 400 Mich 540; 256 NW2d 31 (1977). Michigan law has construed this protection to prohibit separate convictions for two offenses arising out of one criminal transaction where one is a necessarily lesser included offense of the other. People v Stewart, supra, People v Martin, 398 Mich 303; 247 NW2d 303 (1976).
A literal reading of the felony-firearm statute indicates that the felony must be shown in order to convict on felony firearm. Therefore, the underlying felony is always a necessarily lesser included offense of felony firearm. People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975). The logical extension of this literal reading would require vacating the conviction on the lesser charge (felony) and affirming the conviction on the higher charge (felony firearm). See People v Stewart, supra, 550, fn 2.
Such a result would require an abdication of our duty to interpret statutes concomitant with the applicable underlying legislative intent. The primary rule governing statutory interpretation is to first and foremost ascertain and give effect to the manifest intent of the Legislature. Simpson v United States, 435 US 6; 98 S Ct 909; 55 L Ed 2d 70 (1978), Gore v United States, 357 US 386; 78 S Ct 1280; 2 L Ed 2d 1405 (1958).
The underlying legislative intent in regard to the felony firearm statute is to require a mandatory, minimum prison sentence in all felonies and attempted felonies where a firearm was carried or possessed. A review of the legislative history of the enactment indicates that certainty of punishment was the primary concern.
This Court is then faced with the dilemma of applying the literal meaning of the statute to an absurd end or interpreting and thus modifying the statute in light of the accompanying manifest legislative intent.
The propriety of our choosing the latter approach is supported by the Michigan Supreme Court in Williams v Secretary of State, 338 Mich 202, 208; 60 NW2d 910 (1953), where the following maxim is quoted with approval:
" ' "Where the language of a statute, in its ordinary meaning and gramatical construction leads to a manifest contradiction of the apparent purpose of the enactment, or to some inconvenience or absurdity, hardship or injustice, presumably not intended, a construction may be put upon it, which modifies the meaning of the words, and even the structure of the sentence. This is done, sometimes, by giving an unusual meaning to particular words; sometimes by altering their collocation; or by rejecting them altogether; or by interpolating other words; under the influence, no doubt, of an irresistible conviction that the legislature could not possibly have intended what its words signify, and that the modifications thus made are mere corrections of careless language, and really give the true intention * * * the language of the statute must be given such a construction as will carry that design into effect, even though, in so doing, the exact letter of the law be sacrificed, or though the construction be, indeed, contrary to the letter.” ’ ” (Emphasis supplied.)
In light of the above we construe that portion of the statute inoperable to the effect that it delineates possession of a firearm during the commission of a felony as a separate and distinct offense. We view and uphold the statute as a sentence enhancement and sentence augmenting measure designed to set forth a mandatory minimum term of incarceration on the underlying felony.
The defendant’s separate conviction for felony firearm is set aside; however, in accordance with the above, his sentence is upheld.
Bash ara, J., concurred. | [
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Per Curiam.
This appeal arises from an order of support entered by the trial court against the defendant.
The facts indicate that over the course of years following the divorce between the defendant and the plaintiff, the children of that former union, in the custody of the mother, became increasingly embittered toward their father. Matters have now reached a state where any meaningful relationship between the father and his children is virtually impossible. The defendant claims that under such circumstances, where the plaintiff has taken from him all the benefits of fatherhood, the defendant should not be burdened with the obligations of that position. He thus objects to the entry of a court order requiring him to pay child support.
While we can understand defendant’s disinclina tion to support children with whom he cannot establish a meaningful relationship, we must reject his contention that his obligation to pay child support has been abrogated. Defendant’s obligation to make child support payments is independent of his right to visit the children. See Kane v Kane, 241 Mich 96, 100; 216 NW 437 (1927), Henshaw v Henshaw, 83 Mich App 68; 268 NW2d 289 (1978), Stevenson v Stevenson, 74 Mich App 656, 658 n 1; 254 NW2d 337 (1977). See also People v Faculak, 325 Mich 56, 59, 37 NW2d 709 (1949).
Defendant has cited some cases which have held that support payments may be suspended or can-celled to punish the wrongful conduct of the custodial parent or to force compliance with court orders regarding visitations. See Pronesti v Pronesti, 368 Mich 453; 118 NW2d 254 (1962). Neither of these considerations is now in issue.
The custodial parent, the mother in this case, is receiving aid from the State of Ohio for the support of her minor children. Under the Uniform Reciprocal Enforcement of Support Act, adopted in both Ohio and Michigan, the State of Ohio is entitled to reimbursement from a person liable under a proper order of support where the state has itself made support payments. MCL 780.159; MSA 25.225(9). Thus, the real party in interest on the side of the plaintiff is the State of Ohio. Whatever the decision of this Court, the named plaintiff will not be affected. To speak in terms of punishing the named plaintiff for her conduct regarding the children or of forcing compliance with court orders by withholding support misses the mark.
We hold that defendant has failed to show that the trial court committed clear legal error in entering the child support order. The decision of the trial court is affirmed. | [
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Allen, J.
In this cause, plaintiffs-appellants ask that the limitations set forth in Gustafson v Faris, 67 Mich App 363; 241 NW2d 208 (1976), on the right of parents to recover damages for emotional injury sustained upon learning of injury to the child, be held inapplicable where the injury to the immediate family member is caused by an intentional tortfeasor as distinguished from a negligent tortfeasor. This issue of first impression comes to us following the trial court’s January 23, 1978, order granting partial summary judgment in favor of all defendants and against plaintiffs Maxine Miller and Phillip Miller as parents of Rodney Miller.
On December 10, 1976, plaintiff Rodney Miller, then age 15, was attending a physical education class at the North Adams High School. The classroom teacher was defendant George Cook. Plaintiffs’ complaint alleges that at said time and place, defendant Cook, after first striking Rodney Miller in the throat and thereby knocking him down, picked Rodney up by the throat and for more than five minutes beat Rodney’s head against the bleachers following which defendant carried Rodney by the throat through the school hallways to the office of the high school principal where Rod ney was denied the right to call his parents and denied medical assistance. The reasons for the alleged assault are not set forth in the complaint.
Plaintiff parents then allege that they sustained injuries in that they became emotionally upset and distraught as a result of the injuries suffered by their son. In their brief, the parents admit that they were not present when the assault took place nor did they become aware of the injuries within a time fairly contemporaneous with the alleged assault.
The defendants filed a motion for partial summary judgment under GCR 1963, 117.2(1) against plaintiffs Phillip Miller and Maxine Miller, claiming that, since the parents neither witnessed the assault nor became aware of the assault contemporaneously with its occurrence, the complaint failed to state a claim upon which relief could be granted. After hearing oral argument and reviewing the law on the matter, the trial court granted the motion on January 23, 1978.
The issue of recovery by a plaintiff when a tort is committed upon a family member is thoroughly discussed in two Michigan cases. Perlmutter v Whitney, 60 Mich App 268; 230 NW2d 390 (1975), Gustafson v Faris, supra. In Perlmutter, this Court ruled that "the law does not allow recovery for mental anguish suffered by third persons as a result of their concern for the injuries of others where such third persons were not witnesses to the accident in which those injuries were sustained”. 60 Mich App at 273. In Gustafson, the rule was softened somewhat by allowing recovery even if the parent was not present, provided that the. parent’s shock and resulting injury occurred fairly contemporaneously with the injury to the child. In so ruling, this Court adopted, by reference, the limitations on recovery by third persons set forth in Prosser, Torts (4th ed), § 54, pp 334-335.
"Some limitations might, however, be suggested. It is clear that the injury threatened or inflicted upon the third person must be a serious one, of a nature to cause severe mental disturbance to the plaintiff, and that the shock must result in actual physical harm. The action might, at least initially, well be confined to members of the immediate family of the one endangered, or perhaps to husband, wife, parent, or child, to the exclusion of mere bystanders, and remote relatives. As an additional safeguard, it might be required that the plaintiff be present at the time of the accident or peril, or at least that the shock be fairly contemporaneous with it, rather than follow when the plaintiff is informed of the whole matter at a later date. (Footnotes omitted. Emphasis supplied.)” Gustafson, supra at 368-369.
Plaintiff parents contend that the Gustafson rule applies only to negligence actions and not to situations where the injury is intentionally inflicted. In support of this position two arguments are advanced: (1) § 435A and § 435B of 2 Restatement of Torts 2nd support such position; and (2) § 54 from Prosser, Torts (4th ed), quoted above, addresses itself solely to negligence situations. We disagree on both arguments.
Sections 435 A and B of the Restatement, read in conjunction with the commentary thereto, refer to the scope of damages rather than to unintended harm to third persons. The illustrations accompanying the commentary refer only to the extended harm of the person directly injured. Clearly, said sections concern additional compensatory relief to the person upon whom the original tort was committed — in the case before us, Rodney Miller.
Admittedly, §54 of Prosser is directed to the negligence situation only. But it does not follow that Prosser would allow damages for emotional distress to nonwitnessing parents. Section 12 of Prosser deals with the intentionally inflicted tort situation and comes to the same conclusion as was subsequently pronounced in Gustafson, supra.
"The decisions indicate that recovery in such cases is limited to plaintiffs who are not only present at the time, but are known: by the defendant to be present, so that the mental effect can reasonably be anticipated by the defendant. The distinction between the wife who sees her husband shot down before her eyes, and the one who hears about it five minutes later, may be a highly artificial one; but it is perhaps justified by the obvious necessity of drawing a line somewhere short of the widow who learns of the decease ten years afterward, when the genuineness and gravity of her distress may very reasonably be doubted.” (Footnotes omitted.) Prosser, Torts (4th ed), § 12, p 61.
In a footnote accompanying the text above quoted Prosser cites Ellsworth v Massacar, 215 Mich 511; 184 NW 408 (1921). In that case our Supreme Court held a husband could not recover for the loss of services of his wife who was incapacitated from shock of an assault and battery committed on the husband but out of the presence of the wife. That decision has not been overruled and was cited with approval in Perlmutter, supra, at 272-273.
Finally, we would note that the rationale for imposing limitations on the right of third parties to recover damages for mental anguish is to protect against disingenuous claims. Since the reason for the limitation does not relate to the degree of fault, the dictinction between a negligent or intentional act does not appear appropriate.
In light of the foregoing, we conclude that in Michigan a cause of action does not exist for damages for mental anguish sustained upon learning of an intentional tort committed at a noncon-temporaneous time upon an immediate family member. The motion for summary judgment was properly granted.
Affirmed, costs to defendants.
Gustafson, supra, held that parents could not recover for their emotional suffering for injuries to their child where the injury to the child was not witnessed by the parents or where the emotional shock to the parents did not occur fairly contemporaneously with the injury to the child. In the instant case the injury to Rodney Miller was not witnessed by the parents nor did it occur fairly contemporaneously.
The grant of partial summary judgment did not affect the right of the injured party to recover nor the right of the parents to recover for medical expenses incurred as a result of injuries to the child.
"§ 435 A. Intended Consequences
"A person who commits a tort against another for the purpose of causing a particular harm to the other is liable for such harm if it results, whether or not it is exceptable, except where the harm results from an outside force the risk of which is not increased by the defendant’s act.
"§ 435 B. Unintended Consequences of Intentional Invasions
"Where a person has intentionally invaded the legally protected interests of another, his intention to commit an invasion, the degree of his moral wrong in acting, and the seriousness of the harm which he intended are important factors in determining whether he is liable for resulting unintended harm.” | [
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Per Curiam.
Defendant was convicted by a jury of unlawful delivery of a Schedule 3 controlled substance, contrary to MCL 335.341(l)(b); MSA 18.1070(41)(l)(b). Defendant was sentenced to a term of 90 days in the county jail and appeals as of right. On appeal, defendant claims that the trial judge erred reversibly in finding that the prosecutor had exercised due diligence in attempting to secure the presence of a res gestae witness at trial and in allowing that witness’s testimony from defendant’s preliminary examination to be introduced at trial.
The alleged delivery took place at defendant’s home while Ms. Malone, a police informer, was present. Malone testified at defendant’s preliminary examination but did not appear at trial. At trial, the prosecutor made a motion to admit Malone’s preliminary examination testimony into evidence under MCL 768.26; MSA 28.1049, because she was unavailable for trial. After an evidentiary hearing, the trial judge found that the prosecutor had exercised due diligence in attempting to locate and produce the witness. Therefore, he allowed the preliminary examination testimony to be admitted at trial. Malone’s testimony seriously incriminated the defendant. After trial, defendant made a motion for a new trial but did not list the nonproduction of this witness or the use of the preliminary examination testimony as a reason for his motion for a new trial.
The prosecutor argues that appellate review is precluded because defendant did not list this reason in his motion for a new trial as required by People v Robinson, 390 Mich 629; 213 NW2d 106 (1973). Although the facts in this case are distinguishable from the facts in Robinson, supra, we think that the policies behind the rule are applica ble to this case. Therefore, we conclude that the rule announced in Robinson, supra, applies. The primary purpose of the Robinson rule is to prevent the ordering of what may be "useless” new trials, Robinson, supra, at 633, People v Allen, 76 Mich App 585; 257 NW2d 263 (1977). At the hearing on the motion for a new trial, the prosecutor must either produce the witness or explain why he cannot produce her. If the witness is produced, the trial court can determine whether her testimony is cumulative and if it is cumulative, a new trial would not be required. If the witness cannot be produced even though the prosecutor exercised due diligence in attempting to locate and produce her, a new trial would not be required. The hearing on the motion for a new trial gives the trial judge an opportunity to resolve these issues and the issue of whether the prosecutor exercised due diligence in attempting to produce the witness for trial, and thereby possibly avoiding the ordering of what may be a useless new trial. The resolution of these issues at a hearing on a motion for a new trial would serve the same function in this case.
The first difference between Robinson, supra, and this casé is that in this case, an evidentiary hearing was held at trial on the issue of the prosecutor’s due diligence. While this hearing gives the trial judge an opportunity at trial to evaluate the prosecutor’s efforts and does provide a record from which an appellate court could review those findings, the hearing does not fulfill all the purposes of a Robinson hearing, see Allen, supra, and cases cited therein. The hearing in this case did not give the trial judge an opportunity to consider any post-trial changes that may have possibly made the ordering of a new trial "useless”, see Allen, supra.
The other difference between this case and Robinson, supra, is that in this case the unproduced witness’s testimony from the defendant’s preliminary examination was introduced into evidence. Since this testimony was introduced at trial, it made available a record which permitted review of the determination of whether the witness’s testimony was cumulative. Therefore, at first glance, it appears that another function of the Robinson hearing was also satisfied in this case.
However, the gravamen of defendant’s argument on appeal is not that the jury was denied the benefit of this witness’s testimony but rather that the jury was denied the opportunity to observe this witness’s demeanor as she testified. The witness’s demeanor could have supported her testimony and been merely cumulative or it might have impeached her testimony. If the witness’s demeanor was cumulative of her testimony, a new trial would not be required. If the witness was produced at the hearing on the motion for a new trial, this would give the trial court an opportunity to determine whether any prejudice resulted to defendant from the fact that this witness’s preliminary examination testimony was introduced into evidence without her being present in court. The resolution of this issue may prevent the ordering of a possibly "useless” new trial.
Therefore, even though the factual setting in this case is different from Robinson, supra, the determinative issue of whether the prosecutor could produce this witness by exercising due diligence is the same in both cases. The policy behind the Robinson rule is equally applicable to this case. Therefore, we conclude that the rule announced in Robinson, supra, applies in this case.
Affirmed.
The importance of having the testifying witness present in court while testifying so that the jury can observe her demeanor is well recognized. It is a part of defendant’s constitutional right of confrontation, US Const, Am VI; Const 1963, art 1, § 20, Barber v Page, 390 US 719; 88 S Ct 1318; 20 L Ed 2d 255 (1968). We recognize the constitutional aspects of defendant’s claim on appeal but conclude that the rule announced in People v Robinson, 390 Mich 629; 213 NW2d 106 (1973), applies in this case. | [
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Per Curiam.
On January 10, 1975, defendant Lacy Anderson, owner and operator of a truck insured by plaintiff Allstate Insurance Co., and Anderson’s passengers, defendants Johnson and Gierak, were severely injured in a collision with an uninsured motorist. Anderson also owned a car insured by Allstate in a separate policy. Each policy contained uninsured motorist coverage in the limits of $20,000/$40,000. This appeal, from an order of summary judgment granted in defendant’s favor on September 2, 1977, concerns the question of whether Anderson and his passengers may "stack” benefits under Anderson’s two policies.
For the reasons stated in the dissenting opinion in Kozak v Detroit Automobile Inter-Insurance Exchange, 79 Mich App 777; 262 NW2d 904 (1977), adopted in Detroit Automobile Inter-Insurance Exchange v Curl, 82 Mich App 140; 266 NW2d 479 (1978), we hold that stacking is permissible as to all three defendants.
Allstate argues that two provisions in the uninsured motorist section of the policy preclude stacking. The first is a part of the definition of "insured”:
"The insurance applies separately with respect to each insured, but the application of the insurance to more than one insured shall not operate to increase the limits of Allstate’s liability.”
The second is a 102-word sentence under the caption "Limits of Liability”:
"The limit of liability stated in the declarations as applicable to 'each person’ is the limit of Allstate’s liability for all damages, including damages for care or loss of services, because of bodily injury sustained by one person as the result of any one accident and, subject to the above provision respecting each person, the limit of liability stated in the declarations as applicable to 'each accident’ is the total limit of Allstate’s liability for all damages, including damages for care or loss of services, because of bodily injury sustained by two or more persons as the result of any one accident.”
Insurance contracts are to be strictly construed against the insurer. Nickerson v Citizens Mutual Insurance Co, 393 Mich 324, 330; 224 NW2d 896 (1975) . The court’s duty is to ascertain the meaning which the insured would reasonably expect. Zurich Insurance Co v Rombough, 384 Mich 228, 233; 180 NW2d 775 (1970). We cannot find that defendant Anderson, reading the two above-quoted clauses, would reasonably expect to be limited to recovery on the truck policy alone. The clauses are not written in terms of a second vehicle, a second policy, or passengers — terms which the insured might understand.
Even if the language were clear, the result might well be unconscionable. The insurer is collecting two uninsured motorist premiums, yet attempting to deliver only one recovery. See Blakeslee v Farm Bureau Mutual Insurance Co of Michigan, 388 Mich 464, 474; 201 NW2d 786 (1972), Boettner v State Farm Mutual Insurance Co, 388 Mich 482, 487; 201 NW2d 795 (1972), Michigan Millers Mutual Insurance Co v Adams, 84 Mich App 361, 366-371; 269 NW2d 602 (1978) (D. E. Holbrook, J., dissenting).
Allstate argues that even if we allow stacking as to the named insured, we should deny it as to the passengers, because they paid no premiums and are not resident relatives of the named insured. We do not find this argument persuasive. The terms of the policy make no such distinction; the definition of "insured” in the uninsured motorist section includes "any other person while occupying an insured automobile”. Thus Auto-Owners Insurance Co v Traviss, 72 Mich App 66; 248 NW2d 673 (1976) , is not on point, because in Traviss the defendant’s decedent did not fall within the policy definition of "insured”.
Allstate also directs our attention to Detroit Automobile Inter-Insurance Exchange v Curl, supra. In that case Russell Curl was killed in a collision with an uninsured motorist. Curl had resided in a household with his parents and a relative named Cummins. Curl’s estate sought to stack three policies — two issued to Curl’s parents, and one issued to Cummins. This Court allowed stacking of the parents’ policies, but denied it as to the Cummins policy.
In the case at bar Allstate contends that Anderson and Gierak are on the same footing as the Cummins policy. We disagree. The logical extension of stacking of the Cummins policy would have been unlimited liability which the insurer could not possibly foresee when writing a policy — e.g., a resident of a commune attempting to stack policies held by 20 or 30 residents of the same commune. In the case at bar, however, the insurer could forsee the liability stemming from a finite number of passengers, all defined as "insureds”, riding in a vehicle of finite size. As stated in the dissenting opinion of Kozak, supra at 786, should this result seem unfair to the insurer, the insurer may always petition the insurance commissioner for a rate adjustment. The insured has no such remedy.
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Per Curiam.
This is an automobile no-fault insurance case wherein plaintiff sustained personal injuries and received Medicare payments with respect to medical and hospital services rendered therefor.
Plaintiff was insured under a no-fault automobile insurance policy issued by the defendant and he made a claim for personal protection benefits under that policy. The policy contained a provision for subtraction of government benefits, as mandated by MCL 500.3109; MSA 24.13109. Defendant therefore deducted the amount paid by Medicare from the benefits paid to the plaintiff.
Plaintiff brought this action on April 15, 1977, to recover the deducted Medicare amounts and was granted a summary judgment by the trial court on the authority of O’Donnell v State Farm Mutual Automobile Insurance Co, 70 Mich App 487; 245 NW2d 801 (1976).
The trial court denied an award of attorney fees for plaintiff’s counsel, finding no unreasonable refusal to pay benefits on behalf of the defendant. From that judgment defendant filed an appeal pursuant to GCR 1963, 806.1 and plaintiff has filed a cross-appeal pursuant to GCR 1963, 807.1.
We are aware of the split of authority in this Court with respect to the constitutionality of the government benefits deduction provision of the no-fault automobile insurance act. O’Donnell, supra, Wysocki v Detroit Automobile Inter-Insurance Exchange, 77 Mich App 565; 258 NW2d 561 (1977), and Pollock v Frankenmuth Mutual Insurance Co, 79 Mich App 218; 261 NW2d 554 (1977), have declared this provision of the act to be in violation of the constitutional standards of equal protection and due process.
On the other hand, the constitutionality of the provision has been upheld in Smart v Citizens Mutual Insurance Co, 83 Mich App 30; 268 NW2d 273 (1978), and Greene v State Farm Mutual Automobile Insurance Co, 83 Mich App 505; 268 NW2d 703 (1978).
We find the latter cases more convincing and quote with approval from Judge Bashara’s dissent in O’Donnell, supra, at 506-507:
"Under the statutory scheme everyone participating in no-fault is entitled to certain minimum benefits. The fact that some individuals are unable to purchase private insurance is of no moment. As long as everyone has an opportunity to enjoy a minimum statutory benefit, there is no absolute deprivation. Any discrimina tion that might exist is insufficient to justify invoking the Equal Protection Clause.”
As to the trial court’s refusal to award an attorney fee, we affirm. See Davidson v Johnson (On Rehearing), 79 Mich App 660, 666-667; 262 NW2d 887 (1977).
Reversed in part; affirmed in part. No costs, a public question being involved. | [
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D. E. Holbrook, J.
The Cheboygan County Road Commission stored a quantity of salt on property which it owned in the Indian River area. The salt was owned by the State Highway Department. Salt seeped into the ground water and contaminated the water supply of several persons in the vicinity. The highway department and the road commission agreed to divide equally the cost of drilling new wells for the affected residents. At the date of trial the cost of such drilling totalled $30,911.95. The road commission sought to recover half of this amount from the defendant pursuant to a contract of insurance. After a bench trial the court found that a valid settlement contract existed wherein the road commission agreed to accept $6,120.93 as full compensation for its claim. We disagree with that finding.
The purported offer in this case is contained in a letter from the road commission’s attorney to the insurance company’s attorney dated November 27, 1972. That letter proposed an open-ended formula by which the insurance company and the road commission would split the road commission’s liability. The letter did not mention future claims.
The insurance company responded with a letter dated April 12, 1973, which offered a fixed dollar amount in return for which the road commission was to release the insurance company from all present and future liability.
It is elementary that a proposal to accept an offer which contains terms differing from the offer is a rejection. Board of Governors of Wayne State University v Building Systems Housing Corp, 62 Mich App 77; 233 NW2d 195 (1975). The insurance company’s letter of April 12, 1973, was a counteroffer. It did not purport to accept the terms of the November 27, 1972, letter. It offered new and different terms.
The plaintiff’s claim is not barred by accord and satisfaction.
The trial court also found that recovery under the contract was precluded by failure to establish compliance with a condition precedent contained in the insurance contract which was not waived by the defendant. The contract of insurance contained a clause requiring the company’s written authorization before payment of claims which were not judgment claims.
At trial the defendant moved to include noncompliance with the "written authorization” clause as an affirmative defense. The plaintiff objected saying that it was only prepared for trial on the one issue stated in the pretrial summary. The trial court ruled that the affirmative defense could not be added but that it would allow testimony concerning compliance with the same contract provision. In so ruling the court held that the plaintiff had the duty to plead and prove compliance with all conditions precedent to recovery contained within the insurance contract. This is contrary to GCR 1963, 112.4 which states specifically that an insurance company must plead noncompliance with a condition precedent as an affirmative de fense. GCR 1963, 111.3 provides that affirmative defenses which are not asserted in the pleadings are waived. The defendant further waived its right to assert noncompliance with the condition precedent as an affirmative defense by failing to have that defense included in the pretrial summary. Farida v Zahar, 50 Mich App 137, 143; 212 NW2d 739 (1973), GCR 1963, 301.3.
In the pretrial summary the defendant specifically admitted liability under the policy but claimed that recovery was precluded by the existence of a settlement contract. The only issue at trial, therefore, should have been whether or not a valid settlement contract existed. We have found that a settlement contract did not exist. We reverse and remand with the instruction that a judgment in the amount of $15,455.97 be entered for the plaintiff.
Reversed and remanded, costs to appellant.
G. R. Cook, J., concurred. | [
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Per Curiam.
Defendant appeals his jury conviction of two counts of second-degree murder, MCL 750.317; MSA 28.549, claiming three errors that deprived him of a fair trial.
First he contends that the court erred in denying his motion for mistrial. We do not agree. The grant or denial of a mistrial motion rests in the sound discretion of the trial judge and relief is merited only after a finding of abuse of that discretion. People v Mitchell, 61 Mich App 153, 165; 232 NW2d 340 (1975), People v Talaga, 37 Mich App 100, 102-103; 194 NW2d 462 (1971). To find reversible error, the trial court’s denial of defendant’s mistrial motion must have been so gross as to have deprived him of a fair trial and to have resulted in a miscarriage of justice. People v Ritholz, 359 Mich 539, 559; 103 NW2d 481 (1960), MCL 769.26; MSA 28.1096.
Here, in the course of recross-examination of the prosecution’s key witness, defense counsel learned that he had once represented. the witness in an unrelated matter. He promptly moved for a mistrial but set forth no reasons why his client had been prejudiced. After taking the motion under advisement and failing to receive any supporting brief from defense counsel, the court denied the motion. On this record we cannot say that the court abused its discretion, that the defendant was deprived of a fair trial resulting in a miscarriage of justice or, as defendant also charges, that he was deprived of effective assistance of counsel. Defendant claims that because of the revelation of counsel’s prior brief representation of the prosecution’s witness he was not able to perform at least as well as a lawyer of ordinary training and skill in criminal law in that he was unable to thoroughly cross-examine the witness. He argues that defense counsel was not able to represent him undeflected by conflicting considerations. The record indicates otherwise.
Defense counsel cross-examined the witness extensively before the inadvertent disclosure. Further, there is no showing of any conflict that affected the scope or depth of cross-examination or quality of representation.
Defendant next argues that the evidence adduced at trial was legally insufficient to convict him of second-degree murder.
The standard of review where the sufficiency of the evidence is questioned is whether the evidence presented by the prosecutor justifies a reasonable person in concluding that all elements of the crime were established beyond a reasonable doubt. People v Johnson, 83 Mich App 1; 268 NW2d 259 (1978), People v Palmer, 392 Mich 370; 220 NW2d 393 (1974). The standard argued by the defendant, that the prosecution must specifically disprove every reasonable theory consistent with innocence, has been challenged by this Court. In People v Edgar, 75 Mich App 467, 472; 255 NW2d 648 (1977), the Court pointed out the weakness in that stáñdard:
"[T]he [Davenport] rule is defective to the extent that it treats circumstantial evidence differently than direct evidence and to the extent that it requires the prosecution to speciñcally disprove all innocent theories.” People v Edgar, supra, at 473-474. Cited with approval in People v Johnson, supra, at 18.
The direct testimony of Arnold Coleman, if believed, established the aggregate elements necessary to find defendant guilty of second-degree murder.
Finally, defendant assigns as error the trial court’s determination that he could not call a codefendant as a witness, and alternatively, that codefendant’s testimony at an earlier guilty plea proceeding should have been admitted into evidence.
During trial, defense counsel sought to call Edward Minor, who pled guilty in a separate proceeding to the charge of second-degree murder arising out of the same incident for which defendant elected to stand trial. At the plea taking proceeding, codefendant Minor admitted the two killings for which defendant was charged. The court, on learning that Minor was appealing his plea and that he would assert his Fifth Amendment privi lege, refused to permit him to be called as a defense witness.
Defense counsel urges that in denying him his right to production of a witness on his behalf, the court denied him a full and fair trial. Further, defendant asserts that Michigan should adopt a rule which causes the privilege against self-incrimination to end once a guilty plea is entered. However, it is clear that the privilege against self-incrimination still applies where an appeal is pending after conviction on a charge to which the incriminating testimony would relate. People v Lindsay, 69 Mich App 720; 245 NW2d 343 (1976). The assertion that Michigan should carve out an exception to the self-incrimination privilege is not properly addressed to this Court. People v Ernest Edwards, 47 Mich App 307; 209 NW2d 527 (1973), rev’d on other grounds, 396 Mich 551; 242 NW2d 739 (1976).
Alternatively, defendant contends that the lower court should have allowed the introduction of Minor’s statement into evidence. The record reveals an attempt by counsel to introduce Minor’s exculpatory declarations through the testimony of a police officer present at the Minor plea. Since we find no basis for the admissibility of Minor’s hearsay assertions, the trial judge’s refusal to allow the statements into evidence was not error. We note that these exonerating avouchments occurred after Minor pled guilty and after he was apprised of the court’s intended sentence. They could not, therefore, be construed as a declaration against penal interest, People v Ernest Edwards, 396 Mich 551; 242 NW2d 739 (1976). Nor do they qualify as prior reported testimony. At the time of the plea, Minor was not under oath and the prosecutor had no opportunity to advance defendant’s involvement through cross-examination. Inasmuch as the statements do not then fall within the hearsay exceptions, defendant’s charge that an unfair trial resulted for failure to introduce Minor’s testimony is without merit.
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V. J. Brennan, P.J.
Defendant Joel David Feld-man was convicted on May 14, 1975, in Bay County Circuit Court of one count of possession of burglary tools, contrary to MCL 750.116; MSA 28.311, one count of possession of a device adapted for breaking into a parking meter with intent to steal, contrary to MCL 752.811; MSA 28.643(101), four counts of inserting part of an instrument into a parking meter with intent to steal, contrary to MCL 752.811; MSA 28.643(101), and four counts of forcing an entrance into a parking meter with intent to steal, contrary to MCL 752.811; MSA 28.643(101). On September 2, 1975, defendant was sentenced to a prison term of from 2 to 10 years on the possession of burglary tools count and 1 to 3 years on each of the remaining counts, the sentences to run concurrently. Defendant appeals his convictions here on delayed leave to appeal granted.
Defendant’s prosecution arose out of events occurring near the Jenison Hardware Store in Bay City, Michigan, across from the Wenona Park. Testimony of employees of the hardware store indicated that on July 29, 1974, three people were observed standing around one of the several parking meters which were located on the street adjacent to Wenona Park. Employee Paul Abbs testified that one of defendant’s companions was holding a wire and that shortly afterward money fell out of a meter and into the purse carried by defendant’s other companion. Defendant appeared to be on watch and was not involved in the actual taking of the money from the meter. This testimony was corroborated by another eyewitness.
The police were subsequently called and apprehended defendant and his companions within Wen-ona Park. During the process of arrest, officers discovered various tools and a roll of money in the front seat of the suspects’ car. These items along with other tools found in defendant’s van were introduced into evidence at trial. Defendant’s conviction on all ten counts of the information followed.
Defendant claims that reversible error occurred when the trial court failed to caution the jury against discussing the case among themselves. In fact the trial court in its preliminary instruction gave the jury the distinct impression that they could discuss the case among themselves during the course of the trial.
The problem which results from this instruction is that the jury is allowed to formulate and express opinions before all the evidence is in. Given the fact that the prosecution presents its evidence first, initial expressions of opinion would most likely be unfavorable to the defendant. Upon the presentation of the defendant’s case, the jury’s inclination would be to give special attention to testimony that confirms their prior expressions so as to avoid any embarrassment involved in changing their opinion. As such the burden of proof is effectively shifted from the prosecution to the defendant. People v Hunter, 370 Mich 262; 121 NW2d 442 (1963). We agree with defendant that this was reversible error.
Inasmuch as the cause must be sent back we will address the defendant’s double jeopardy claim so as to prevent any possible recurrence of error on retrial.
The protection against double jeopardy prohibits double or multiple punishment for the same crime. North Carolina v Pearce, 395 US 711; 89 S Ct 2072; 23 L Ed 2d 656 (1969), People v Alvin Johnson, 396 Mich 424, 430; 240 NW2d 729 (1976).
With this in mind we point out that the defend ant may again be charged with one count of possession of burglary tools contrary to MCL 750.116; MSA 28.311 since this charge was not based on possession of the same tools allegedly used to break into the parking meters.
However, counts 2 through 10 setting forth nine separate charges under MCL 752.811; MSA 28.643(101) do present double jeopardy problems. The facts tend to show that two parking meters were broken into. From this incident the defendant was charged with one count of possession of a device adapted to break into a parking meter with intent to steal, four counts of inserting an instrument into a parking meter with intent to steal and four counts of forced entry into a parking meter with intent to steal. It is clear that the latter eight counts comprise alternate descriptions of two acts of breaking. Such conduct may only be punished singularly, thus the bringing of the eight separate charges was improper. Furthermore, the charge of possession of an instrument adapted to break into a parking meter is necessarily included in the charge of insertion of the instrument. People v Stewart (On Rehearing), 400 Mich 540; 256 NW2d 31 (1977), People v Martin, 398 Mich 303; 247 NW2d 303 (1976).
On remand the defendant can only be charged with one violation of MCL 750.116; MSA 28.311, and two violations of MCL 752.811; MSA 28.643(101). We again caution the prosecutor on the obvious practice of overcharging. See People v Carmichael, 86 Mich App 418; 272 NW2d 667 (1978).
Reversed and remanded.
This writer confesses a change of view as expressed in his dissent in People v Blondia, 69 Mich App 554; 245 NW2d 130 (1976).
We are at a loss to understand why the Bay County Prosecutor has undertaken a policy of "shotgun” charges. The presentation of proofs, the instructions to the jury on the elements of each charge and the instructions on the various verdicts they could return must have caused them much confusion. There is no doubt that this practice would lead to longer trials, a situation most circuits do not need. We do have a suspicion that the multiple-charge policy is for the possible extraction of more pleas, although there is nothing on this record to prove this point. | [
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Beasley, P.J.
Plaintiff appeals as of right from the granting of accelerated judgment to the defendant based on the two-year statute of limitations applicable to the "defective highways” statute.
Plaintiff alleges that on July 29, 1974, she suffered injuries by falling on a defective sidewalk in the City of Detroit. However, she did not file suit for damages in the circuit court until November 14, 1977. Thus, on its face, the two-year statute of limitations has run and bars plaintiff’s action.
In trying to avoid this result, plaintiff claims that she followed the claims procedure delineated in defendant’s ordinance and that this served to stop the statute of limitations from running.
In 1974, defendant city amended its ordinance entitled "Processing of Claims Against the City” to add six sections. The amendment is described as "to determine the extent and manner of processing and settling claims against the City”. Among other things, the ordinance now provides that all claims "shall be first submitted to and reviewed by the Law Department, that the Law Department [of the city] shall promptly notify the claimant of its decision, and if the claim is denied, of claimant’s right to appeal such decision to the Auditor General [of the city]”, that the claimant has 20 days to make such appeal to the auditor general, and that the auditor general shall hold a hearing within 45 days, after having given at least 10 days notice to claimant. Within 15 days after completion of the hearing, the auditor general is directed to make a determination regarding the disputed claim which determination is final, subject to any appeal which "shall be brought only in the court provided by law”. Settlements may be made only with the consent of the city council. Last, the ordinance provides:
"Sec. 2-2-15. All claims of whatever kind against the City must be filed in accordance with the general law of the State applicable to the filing of claims against governmental agencies; otherwise no claim for money or damages may be brought against the City.”
In this case, plaintiff made written claim against the city on November 7, 1974, of the July 29, 1974, fall and was assigned claim number 28235. On December 16, 1975, plaintiff was informed her claim had been denied, and that she had a right to appeal to the auditor general. She claims that on December 30, 1975, she appealed to the auditor general; defendant city denies ever receiving such an appeal. Defendant city alleges that twice in 1976 plaintiffs attorneys wrote regarding "documentation of the damage claim”. Defendant city says that eventually the subject of the appeal to the auditor general came up and that they gave plaintiff "the advantage of the doubt” and sent the appeal to the auditor general on May 10, 1977. On July 21, 1977, the auditor general held a hearing and, on September 26, 1977, the auditor general advised plaintiff that the claim was denied.
As indicated, plaintiff then filed suit for damages on November 14, 1977, but was met by defendant’s motion for accelerated judgment on the ground that the two year statute of limitations had run, which motion was granted.
We do not interpret the cited ordinance as requiring resort to and compliance with it by a claimant as a condition precedent to bringing suit in the circuit court.
In some respects, the ordinance prescribes an internal procedure for processing and handling of claims against the city by the city.
We note that MCL 691.1404; MSA 3.996(104) requires verified notice to the governmental agency of the occurrence of the injury and the defect. We do not interpret the ordinance as freeing a claimant of his duty under that statute.
The type of issue here raised by plaintiff-appellant is not new in Michigan. In Klass v Detroit, which was a 1901 case, plaintiff claimed to have suffered injury on December 31, 1895, as a result of failure to repair a street, made claim to the common council on January 7, 1896, and started suit on March 23, 1897. The then statute required notice of injury within three months and commencement of suit within one year. Hearings had been held before defendant’s committee on claims and accounts as late as March 1897. When the city attorney advised counsel for plaintiff in March, 1897, that the claim was being denied, plaintiff promptly started suit within about ten days. The issue was whether the circumstances of the case estopped defendant city from availing itself of a defense that the statute of limitations had run. The court said not, holding that defendant will not be precluded from asserting the statute of limitations unless defendant was responsible for deceiving the plaintiff and inducing him "to postpone action upon some reasonably well grounded belief’ that his claim would be settled without suit.
In Renackowsky v Board of Water Commissioners of Detroit, plaintiff alleged injury by defendant’s negligence in 1893, but did not start suit until 1897. The trial court dismissed plaintiffs action on the ground that the statute of limitations had run. In reversing, the Supreme Court noted defendant had made payments to plaintiff in response to his claim and interpreted defendant’s conduct to constitute a promise to pay. The Supreme Court concluded that defendant, by its course of conduct, led plaintiff to believe a lawsuit to enforce his claim was unnecessary and, therefore, defendant was estopped from asserting the statute of limitations as a bar to plaintiff’s action.
More recently, a similar issue was raised in Yarger v Hastings. Plaintiff claimed she was injured on April 29, 1961, in a fall in a hole in the sidewalk more than two inches deep. On May 12, 1961, plaintiff made claim to defendant city for compensation for her injury. Thereafter, sporadic communications passed back and forth between plaintiff’s counsel and defendant’s insurance carrier until August, 1963, when the insurance carrier denied the claim on the ground that the statute of limitations had run. When plaintiff started suit, defendant sought to avail itself of the statute of limitations, and plaintiff responded by claiming defendant’s conduct estopped application of the statute of limitations. The Supreme Court affirmed the trial court’s ruling that plaintiff’s claim was barred because the statute of limitations had run. In declining to find estoppel, the Supreme Court held that the limitation "was not of the remedy but of the right under the very statute creating that right” and that a waiver or estoppel cannot be worked against this kind of limitation by a defendant’s misrepresentations.
Hughes v Detroit was another injury from defective sidewalk case. Plaintiff claimed the injury was sustained on October 14, 1947, but did not start suit until May 5, 1950. At that time, the statute of limitations was two years. The Supreme Court affirmed dismissal of the suit by the trial court on the basis of the statute of limitations, saying that defendant city made no false promises of payment nor inducements to delay.
Review of these cases poses the issue here. Were the circumstances of this case such as to lead plaintiff to believe that defendant would not assert the statute of limitations in defense?
As a general proposition, courts incline to find an estoppel from asserting the statute of limitations where there is misleading conduct. However, the cited Michigan cases indicate a disinclination to apply estoppel to running of the statute of limitations. In this case, there is no basis for finding a promise not to assert the statute of limitations. Here plaintiff argues that the language of the ordinance, the fact that when defendant’s law department advised plaintiff that her claim was denied, they also advised her of her right to appeal to the auditor general and the fact that the hearing before the auditor general commenced on July 21, 1977, after the statute of limitations had run under defendant’s theory of its applicability, should give rise to estopping defendant city from availing itself of the statute of limitations.
In the within case, when, on December 16, 1975, defendant city’s law department advised plaintiff that her claim was denied, the statute of limitations had not run and there was ample time for plaintiff to file suit in the circuit court.
Plaintiff had a choice. Either plaintiff could file suit or plaintiff could, under the ordinance, appeal the denial recommended by the law department to the auditor general for a hearing and determination. Plaintiff chose the latter.
The record does not indicate that the city’s representatives deceived or misled plaintiff. If plaintiff misinterpreted the effect of the ordinance and assumed the statute of limitations was stopped by resort to appeal to the auditor general of the city, that error cannot be attributed to or laid at the doorstep of the city’s representatives.
Fair reading of the cases we have cited, considered in conjunction with what happened here, does not indicate a basis for application of the doctrine of estoppel so as to halt the running of the statute of limitations. It was not error for the trial court to conclude that plaintiff’s suit for damages was barred by expiration of the statute of limitations, at least insofar as we view it as an original action.
In her complaint, plaintiff alleged she was bringing action pursuant to § 2-2-12(h) of defendant’s ordinance. As indicated, the language of that section of the ordinance is "shall be brought only in the court provided by law”.
Since claims such as plaintiff’s would fall under the governmental immunity rule, but for the exception contained in the defective highways statute, we interpret the ordinance to refer to the "defective highways” statutes.
Thus, an appeal, as provided for in the ordinance, is governed by the very same statute of limitations as applies where a damage suit is brought without reference to the ordinance.
Consequently, we conclude that, regardless of which theory we attribute to plaintiff, her claim is barred by the statute of limitations.
Affirmed
MCL 691.1411; MSA 3.996(111).
Contrary to MCL 691.1402; MSA 3.996(102).
City of Detroit Ordinance 920-G provides:
"Sec. 2-2-10. All claims of whatever kind against the City, excluding claims by City Employees arising out of the employment relationship, claims against the Department of Water and Sewerage, and undisputed claims for services, labor, and materials furnished to City Departments shall be first submitted to and reviewed by the Law Department.”
The amendment became effective July 1, 1974, adding new sections known as 2-2-10, 2-2-11, 2-2-12, 2-2-13, 2-2-14 and 2-2-15.
129 Mich 35; 88 NW 204 (1901).
Klass v Detroit, supra, p 40.
122 Mich 613; 81 NW 581 (1900).
375 Mich 413; 134 NW2d 726 (1965).
Yarger v Hastings, supra, p 419.
336 Mich 457; 58 NW2d 144 (1953).
Dawson, Estoppel and Statutes of Limitation, 34 Mich L Rev 1 (1935).
City of Detroit Ordinance 920-G, § 2-2-12(h) provides:
"(h) The Auditor General, within 15 days after the completion of such hearing, shall make a determination on such disputed claim; the determination by the Auditor General shall be final; any appeals from such determination shall be brought only in the court provided by law:” | [
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Per Curiam.
After a nonjury trial, defendants, Rodger Clifton and Harry Peterson, were found jointly and severally liable to plaintiff, Texaco, Inc., in the amount of $332,679.08 and defendants, Marlene Peterson and Jeanette Clifton, were found, jointly with the other defendants and severally, liable to plaintiff in the amount of $100,000. Defendants’ liability was based on documents which they executed guarantying payment of certain obligations of the Gripe-Clifton Oil Company, Inc. (hereinafter, G-C Oil), to Texaco. Defendants appeal as of right claiming that they were released from their guaranties because a material alteration occurred in the principal contract between Texaco and G-C Oil which adversely affected their duties as guarantors.
In a letter dated November 13, 1973, Rodger Clifton made a proposal for an agreement between G-C Oil and Texaco whereby G-C Oil would be reestablished as a distributor of Texaco products. This letter acknowledged that G-C Oil had an outstanding debt to Texaco in the amount of $93,853.43. The proposal, which was accepted by Texaco, stated that Texaco would provide G-C Oil with a maximum of 10,000,000 gallons of gasoline per year and that Texaco would also give G-C Oil $250,000 in product advances and extend to them a $100,000 line of credit. These product advances were to be repaid at a rate of one cent per gallon of gasoline sold to G-C Oil by Texaco during the first two years and at a rate of one and one-quarter cents per gallon of gas sold thereafter. In the proposal, G-C Oil offered to execute two promissory notes to Texaco: one for the outstanding debt and another for the product advances. Guaranties were also to be obtained from the defendants. The proposal also provided:
"It is understood that the actual quantities to be supplied by TEXACO to Clifton under the agreement will be subject at all times to and in accord with such TEXACO and/or governmental allocation program in effect during the term of the agreement provided, how ever, that any allocation of products to Clifton will be based upon the gallonage fígures set forth in this agreement * * * .”
On November 14, 1973, G-C Oil and Texaco entered into a written distributor agreement. According to this agreement, Texaco agreed to sell to G-C Oil "in quantities specified from time to time by Purchaser, but * * * not less per year than the minimum quantity nor more per year than the maximum quantity stated below.
Minimum Maximum
Texaco Motor Gasoline -0- gals. 10,000,000 gals ”.
The distributor agreement also provided: •
"9. In the event Seller’s capacity to perform as to all or some of its customers, including Buyer, becomes impractical, in Seller’s sole judgment, for any reason whatsoever, Seller shall be relieved of its obligation to perform hereunder and shall not be obligated to Buyer by reason of any delay in performance in whole or in part. Seller shall notify Buyer in writing of its lack of capacity to perform by mail addressed to Buyer. In such notification Seller shall advise Buyer the quantities, if any, Seller will be able to supply Buyer in the foreseeable future. Within ten (10) days thereafter, Buyer shall notify Seller whether it wishes to purchase such reduced quantities where Seller has advised that reduced quantities are available, otherwise this agreement shall terminate.
"11. If Seller determines that it is unable to perform hereunder by reason of any federal, state or local law or regulation, order, rule, recommendation, request or suggestion relating to priority, rationing or allocation of any product covered hereby, Seller may terminate this agreement at any time on ten (10) days notice to purchaser.
"13. Purchaser understands and agrees that the quantities of product specified herein are the maximum quantities that will be delivered in any twelve month period and the actual quantities to be supplied by Seller will be subject at all times to and in accord with such Texaco and/or governmental allocation program in effect during the term of this agreement provided, however, that any allocation will be based upon the gallo-nage specified herein.”
G-C Oil also executed two promissory notes to Texaco evidencing the $250,000 in product advances and the outstanding debt of $93,853.43. Defendants, Mr. Clifton and Mr. Peterson, each signed these notes guarantying payment of these obligations when due. They also signed guaranties whereby they "unconditionally and absolutely guarantee payment when due of any and all present or future indebtedness owed to” plaintiff by GC Oil. Mrs. Clifton and Mrs. Peterson also signed guaranties similar to their husbands, but these guaranties were limited to the amount of the $100,000 line of credit.
On November 27, 1973, Congress enacted the Emergency Petroleum Allocation Act, 15 USC 751, et seq., which authorized the establishment of a mandatory gasoline allocation program. In the regulations implementing this act, the Federal Energy Administration established a base period for determining one’s allocations of 1972, limiting wholesalers to a certain percentage of the quantity of gasoline they purchased in that year. According to the regulations, G-C Oil’s allocation base was approximately 5,802,500 gallons annually rather than the 10,000,000 gallons referred to in the contract.
On February 26, 1976, G-C Oil initiated a Chapter 11 proceeding in the Federal Bankruptcy Court. On March 15, 1976, plaintiff notified defendants of G-C Oil’s default and demanded payment.
Defendants claim that they were released from their obligations as guarantors because the enactment of the mandatory gasoline allocation program pursuant to 15 USC 751 et seq., materially altered the underlying contract between Texaco and G-C Oil and adversely affected their obligations as guarantors, see Wilson Leasing Co v Seaway Pharmacal Corp, 53 Mich App 359; 220 NW2d 83 (1974). Defendants claim that because the mandatory allocation program used a base of only 5,802,500 gallons instead of the 10,000,000 referred to in the contract, they could not get enough gasoline to sell. Defendants claim that if G-C Oil had received the 10,000,000 gallons promised, it would have been in a better position to meet its obligations so that the guarantors would not have been called upon to pay on its default. Therefore, defendants claim that the enactment of the Emergency Petroleum Allocation Act, supra, materially altered the principal contract so as to release them from their obligations as guarantors.
The trial judge found that Texaco did not unconditionally promise to deliver to G-C Oil 10,000,000 gallons of gasoline even if this required violating mandatory Federal regulations. The trial judge found that this 10,000,000 gallon figure referred only to the maximum amount that Texaco would deliver. The trial judge recognized the inconsistency between the language in paragraph 13 of the distributor agreement which stated that any allocation program would be based on the gallonage specified, 10,000,000 gallons, and the language in the agreement which stated that any allocation program would be in accordance with government regulations in cases in which the government regulations specified a different allocation base. The trial judge interpreted this language to mean that the 10,000,000 gallon base would apply to any voluntary allocation program which was instituted by either Texaco or the government. However, he concluded that the possibility that a mandatory allocation program might be created which required a base different from the 10,000,000 gallon allocation base specified in the agreement was controlled by the provisions of paragraphs 9 and 13 of the distributor agreement. Therefore, he concluded that Texaco was at liberty, under the terms of the contract, to observe the mandatory regulations without breaching the contract.
Findings of fact by the trial court sitting without a jury are to be affirmed unless they are clearly erroneous, GCR 1963, 517.1. After a review of the record in this case, we conclude that the findings of the trial judge were not clearly erroneous. The guarantors in this case were aware of the terms of the underlying contract. All the parties were aware of the possibility of a voluntary and/or mandatory allocation program. The contract was structured accordingly. Although some of the contract terms appear inconsistent, the trial judge did not err in his interpretation of them. Contracts are to be interpreted so that meaning can be given to all the terms thereof, if possible, see McIntosh v Groomes, 227 Mich 215; 198 NW 954 (1924). The enactment of the mandatory program was a con tingency contemplated by the parties when they entered into the agreement and they inserted a provision in the contract stating how this contingency would affect their relationship. The enactment of the mandatory program changed the parties’ duties under the terms of the contract but it did not materially alter the terms of the contract.
Since there was no material alteration of the terms of the contract, the guarantors are not released from their obligations. We also note that the separate guaranties executed by Mr. Clifton and Mr. Peterson were not, by their terms, tied to any particular contract between G-C Oil and Texaco. Therefore, any change in that contract would not have affected the guarantors’ liability on these guaranties, see John A Tolman Co v Griffin, 111 Mich 301, 304; 69 NW 649 (1896).
Defendants also argue that the judgment should be reversed because, according to the terms of the note evidencing the debt on the product advances, G-C Oil’s obligation to repay Texaco was not due. In the promissory note given to Texaco by G-C Oil, G-C Oil agreed to pay off the product advances without interest at the rate of one cent per every gallon of gasoline and fuel oils sold by Texaco to Clifton during the first two years of the agreement and at the rate of 1-1/4 cents per every gallon during the third year of said term. Defendants argue that this method of payment was the exclusive method contemplated by the parties. They argue that the reference to one cent per gallon sold was a condition precedent to G-C Oil’s obligation to repay Texaco and that until Texaco sold and delivered gasoline to G-C Oil, its debt was not due. Defendants also argue that G-C Oil has paid Texaco one cent for every gallon of gas delivered and so it does not owe Texaco any additional money on this note. The trial court found that the delivery of gasoline was not a condition precedent to G-C Oil’s obligation to repay Texaco but that this language in the contract established just one of the alternative methods of payment open to G-C Oil.
We conclude that the trial court did not err in its interpretation of these provisions. In any event, if this clause is viewed as a condition precedent, the performance of it should be excused because of impossibility. The parties stipulated that Texaco had made over $121,000 in product advances to GC Oil and that the $93,000 referred to in the note was an antecedent debt. The only performance left unfulfilled was the payment by G-C Oil. G-C Oil is now bankrupt and is not accepting deliveries of gasoline from Texaco. Since the performance of the condition precedent is now impossible and since the parties were acknowledging a debt absolute upon the signing of the contract, the debt is due and payable in a reasonable time after the condition precedent became impossible to fulfill, see Wagner v Kincaid, 291 Mich 262; 289 NW 154 (1939), Restatement Contracts, § 301, p 445, 5 Williston, Contracts, (3d ed), § 799, p 815, LRA 1917B, p 1050, 148 ALR 1075. A reasonable time has elapsed and the amounts payable under the note are now due. Therefore, the guarantors are obligated to pay.
The other issues raised by defendants do not warrant extended discussion or reversal.
Affirmed. Costs to plaintiff.
This conclusion is also supported by MCL 440.2615; MSA 19.2615, since the trial court found that Texaco did not assume a greater obligation requiring it to violate the mandatory Federal regulations, see also, Terry v Atlantic Richfield Co, 72 Cal App 3d 962; 140 Cal Rptr 510 (1977). 15 USC 755(c) also provided that compliance with the Federal regulations would be available as a defense in any breach of contract action. However, Texaco’s liability for breach of contract.is not the issue in this case. The issue to be resolved is whether the guarantors were released from their guaranties.
See, Grace v Croninger, 12 Cal App 2d 603; 55 P2d 940 (1936); In Grace, supra, the guarantor guaranteed payment of the leasee’s rents for a saloon. The lease provided that the building could be used only as a saloon, a cigar store, or a place for a shbeshine stand. The War Time Prohibition Act, 40 Stat 1046, was enacted and severely limited the leasee’s use of the building. The leasee still used the building to serve non-alcoholic beverages, sell cigars, and to shine shoes. The Court in Grace, supra, held that although the enactment of the prohibition act severely frustrated the leasee’s venture, the lease was still in effect and the guarantor was not released from his guaranty. | [
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R. H. Campbell, J.
This appeal arises out of a suit precipitated by a sale of land in Holland, Michigan. Defendant realtors, Russell Klaasen Realtors, Milton Beelen and Roger MacLeod, represented the buyers, plaintiffs in this suit, throughout the sale until its closing on July 8, 1971.
The final deed excepted a portion of the land the buyers thought was to be included for the purchase price. At the closing, the realtors misrepresented the exception as a mere license or easement in favor of the sellers. Later, it became apparent to the buyers that the sellers were claiming full ownership of the excepted tract.
The buyers sued the sellers on July 25, 1972, seeking reformation of the deed. After substantial procedural delays, the realtors were joined as defendants on November 12, 1975. The amended complaint charged them with failure to apprise the buyers of the true nature of the exception in the deed.
The trial court found the realtors had acted as agents for the buyers and had negligently misrepresented the nature of the deed exception, but ruled the buyers’ claim barred by the two-year statute of limitations for malpractice, MCL 600.5805(3), 600.5838(2); MSA 27A.5805(3), 27A.5838(2).
On appeal the buyers argue theories of delayed accrual and relation back. Alternatively, they urge us to apply the six-year statute of limitations for contract claims, MCL 600.5807(8); MSA 27A.5807(8). We agree to reverse, but on different grounds.
The negligent misrepresentation of the deed exception by the realtors was a breach of contract as well as a tort. See 3 Am Jur 2d, Agency, §§ 200, 299, pp 581-582, 687-688; Anno: Broker’s liability for damages or losses sustained by vendor of real property to vendee because of broker’s misrepresentations; 61 ALR2d 1237. See generally, Anno: Right of principal to recover punitive damages for agent’s or broker’s breach of duty, 67 ALR2d 952. Relevant to such situations are several statute of limitations provisions.
The starting point is MCL 600.5813; MSA 27A.5813, which provides that all personal actions "shall be commenced within the period of 6 years after the claim accrues, and not afterwards unless a different period is stated in the statutes”. An exception to this general six-year rule is found in MCL 600.5805; MSA 27A.5805, which requires "any action to recover damages for injuries to persons or property”, not including certain specified tort actions, to be commenced within three years after the claim first accrues. There is an exception to the exception in MCL 600.5807(8); MSA 27A.5807(8) that re-establishes a six-year period of limitations on "actions to recover * * * for breach of contract”, which according to the most recent Supreme Court interpretation applies to actions for damages to persons and property, so long as the suit is based on an express promise rather than a duty implied in law. Huhtala v Travelers Ins Co, 401 Mich 118; 257 NW2d 640 (1977). Finally, a special two-year limit has been worked out for malpractice suits, MCL 600.5805(3), 600.5838(2); MSA 27A.5805(3), 27A.5838(2). It governs claims based on malpractice by "a member of a state licensed profession” and by other expressly enumerated health care workers.
Our research of Michigan law does not reveal a clear statement of reasons underlying these rules. They can, however, be reconciled with two policies identified by the commentators. In modern legal history, personal and property damage liability is on the upswing, due to the courts’ willingness to impose a broader spectrum of implied duties, to uphold excessive jury awards of damages, and to establish new causes of action. In fairness to defendants and in recognition of the administra tive restraints on courts, the short period of limitations in § 5805 practically limits the instance of personal and property damage suits. See Peyton, Case Comment: U.C.C. — Statute of Limitations— Conflicts Between Personal Injury and Sales Contract Statute of Limitations, 75 W Va L Rev 201, 206-207 (1972). The six-year period under § 5807 has been opened by Huhtala only to the narrow class of personal and property damage claims based on expressly assumed duties. Huhtala also accords with the evidentiary function of the statute of limitations, since express contracts are more likely to be reduced to writing and, therefore, preserved as evidence. See Developments in Law-Statutes of Limitations, 63 Harv L Rev 1177, 1185 (1950). But see Crawford, Comment: Tort in Contract: A New Statute of Limitations, 52 Ore L Rev 91, 101 (1972) (historic validity of difference between tort and contract statutes of limitations eroded by modern practices of data storage and investigation).
Applying the above statutes with their judicial gloss, we find the buyers’ claim falls within the six-year rule of § 5813, and is not removed by any other code provision.
The buyers’ action is clearly personal. Through it they seek to recover damages caused by the realtors’ misrepresentations, alleged to equal the amount necessary to acquire the disputed tract from the sellers. In addition they have pled general and punitive damages. We find these are not allegations of injury to persons or property within the meaning of § 5805.
This Court does not ascribe to the view that "injuries”, as that term is used in § 5805, means "physical injuries”. Accord, Stringer v Board of Trustees of Edward W Sparrow Hospital, 62 Mich App 696; 233 NW2d 698 (1975). But see Case v Goren, 43 Mich App 673; 204 NW2d 767 (1972). Such a narrow reading would be inconsistent with the social policies discussed above. Section 5805 should be construed comprehensively to include actions brought for injuries resulting from invasions of rights that inhere in persons as persons and property owners. However, the injury must be to the person or specific property, and not simply relating to the person or specific property. See Sweet v Shreve, 262 Mich 432, 435; 247 NW 711, 712 (1933); Schenburn v Lehner Associates, Inc, 22 Mich App 534; 177 NW2d 699 (1970). In the case at bar, the realtors’ misrepresentations did not invade any property interest the buyers had in the Holland land, they merely led the buyers to expect more than they ■ received. Framed this way, the case is controlled by Sweet v Shreve, supra, which held that damages caused by a real estate dealer’s misrepresentations to a buyer as to the value of land, were not injuries to persons or property within the meaning of the three-year statute of limitations. The judgment recovered by plaintiffs in that case — roughly equal to the difference between the actual and represented values of the land — are closely analogous to the damages sought in this case. While the realtors’ misrepresentations in the instant dispute were of physical boundaries, the harm remains in the first instance, as in Shreve, to the buyers’ expectations. The fact that the present controversy arises from negligence, rather than fraud, does not alter the nature of the injury. Nor does the circumstance that the buyers claim punitive damages. Although it is stated in Michigan that "[ejxemplary damages are awarded to compensate the injured person, and not as a punishment to the defendant”, 9 Mich Law & Practice, Damages, § 91, p 87, they are granted and measured, not according to the victim’s harm, but primarily by reference to the defendant’s moral culpability. Id. §§ 92, 93, pp 89, 90.
Since the buyers’ suit is not for injuries to person or property, it is unnecessary to consider whether the claim is based on malpractice, as the malpractice period of limitations, by its language, only governs suits for injuries to persons or property. It is also fruitless to determine whether plaintiffs’ action is based on a breach of contract under Huhtala, since the period proscribed by the contracts provision would not change our result.
Applying the rule of § 5813, we find the buyers’ suit is not time barred. The record shows the negligent misrepresentation occurred July 8, 1971, and the realtors were joined November 12, 1975. Under any theory of accrual the action was commenced within six years.
Reversed and remanded. Costs to plaintiffs. We retain no jurisdiction.
Plaintiffs were put on notice of the sellers’ claim in 1972, by a letter offering to sell the disputed tract to plaintiffs, and by the sellers’ subsequent acts of showing the land to prospective purchasers.
There have been earlier indications to the contrary. Thus, in State Mutual Cyclone Ins Co v O & A Electric Cooperative, 381 Mich 318; 161 NW2d 573 (1968), the Supreme Court found "a total absence of any legislative mandate or thought that we distinguish between actions on express contracts to recover damages for injury to person or property and actions based upon implied contract”. Id. at 325; 161 NW2d at 576. See also Huhtala v Travelers Insurance Co, 401 Mich 118, 135-137; 257 NW2d 640, 648-649 (1977) (Coleman, J. dissenting).
Writing for the majority in Huhtala, Justice Levin reconciled State Mutual on its facts, reading the case as one based on an implied term of an express contract. This reading is difficult to understand, since the duty breached in that case — the duty to supply electricity at an appropriate rate — was apparently expressed in the contract. According to the pleadings:
" 'It was the agreement on the part of the defendant to the plaintiff that it would supply such current and the current would be supplied in quantities to serve the purposes of light and power in voltages acceptable to the use of such appliances owned by the plaintiffs assignors either of 110-volt or 220-volt current.’ ” 381 Mich at 320; 161 NW2d at 574. (Emphasis added.)
Huhtala could be construed as applying the contract statute of limitations only to express duties, not otherwise implied in law. That interpretation, however, would be inconsistent with Weeks v Slavik Builders, Inc, 384 Mich 257; 181 NW2d 271 (1970), which held the three-year statute applicable in a case based on an express warranty of fitness for the particular purpose, though such a warranty is also implied by law. See MCL 440.2315; MSA 19.2315. To the extent State Mutual is inconsistent with Huhtala we might read it as effectively overruled. Yet, we find Justice Levin’s discussion of the case unnecessary to the result in Huhtala, as the injury in Huhtala was not an injury to persons or property. See 401 Mich at 130-132; 257 NW2d at 646-647.
We nevertheless follow Huhtala because it is the Supreme Court’s most recent statement on the topic, the statement is undeniably clear, and it is consistent with the most sound reasons for distinguishing between contract and tort for the purposes of setting a prescribed period of limitations. See text at notes 3-6, infra.
Commenting on the failure of courts to draw clear lines between contract and tort statutes of limitations, Dean Prosser notes, "there has been a failure to think the thing through, and the courts have been little concerned with principles, while preoccupied with the problems at hand”. Prosser, The Borderland of Tort and Contract, in Selected Topics on The Law of Torts, pp 380, 451-452 (1953). Legislators are also to blame: “So firmly have statutes of limitations become imbedded in our law in the course of centuries that legislatures seldom reconsider them in the light of the various functions they actually perform.” Developments in the Law-Statutes of Limitations, 63 Harv L Rev 1177, 1185 (1950).
For example, the liabilities of landlords and business invitors have been dramatically increased by recognition of a duty on their part to guard tenants and customers from foreseeable criminal acts of third persons. E.g., Samson v Saginaw Professional Building, Inc, 393 Mich 393, 224 NW2d 843 (1975) (landlord); Earle v Colonial Theatre Co, 82 Mich App 54; 266 NW2d 466 (1978). See also Farwell v Keaton, 396 Mich 281; 240 NW2d 217 (1976) (social companions owe affirmative duty to come to each other’s aid).
E.g., Pippen v Denison Division of Abex Corp, 66 Mich App 664; 239 NW2d 704 (1976) (upholding precedent shattering damage award of 1.725 million dollars for lost wages, pain and suffering, and loss of consortium).
The most notable of recent origin are causes based upon the negligent or intentional infliction of mental distress, and an injured spouse’s independent action for loss of consortium. Contrary to the courts of other states that have considered the question, this Court has even gone so far as to recognize a cause of action for loss of parental consortium. Berger v Weber, 82 Mich App 199; 267 NW2d 124 (1978).
We note that under a different statute relating to "professionals” our Supreme Court has expressly ruled "[r]eal estate agencies are no more professions than any other business agencies”. Pennock v Fuller, 41 Mich 153, 155; 2 NW 176, 177 (1879), and in Kambus v St. Joseph’s Mercy Hospital of Detroit, 389 Mich 249; 205 NW2d 431 (1973), held that the broadened coverage of the malpractice statute of limitations includes only licensed professionals, thereby rejecting the notion that it also includes any licensed occupation.
We also believe it is wise not to venture an interpretation of Huhtala as applied to the circumstances of this case. In their briefs the parties have not dealt with Huhtala. Our reading of the case reveals several open questions. The two classes of actions distinguished by Justice Levin — those based on expressed promises and those based on obligations implied in law — do not exhaust the possibilities. Thus, there may be nonexpress duties implied "in fact”, rather than "in law”. 1 Corbin on Contracts, § 17, pp 38-39. Also of uncertain impact under Huhtala is the distinction, among implied duties, between those that are rebuttable (e.g., under the Uniform Commercial Code, the implied warranties of merchantability and fitness may be disclaimed, see MCL 440.2316; MSA 19.2316) and those that are irrebuttable (e.g., the Uniform Commercial Code’s duty of good faith in the performance or enforcement of contracts, MCL 440.1203; MSA 19.1203). These issues probably should be resolved, like the question of what constitutes an injury to person or property, by reference to the policies underlying the varying periods of limitation. However, absent a clear legislative or Supreme Court statement of these policies, and without benefit of an adversary presentation, we should not unnecessarily establish case precedent in this area. | [
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M. F. Cavanagh, J.
A jury convicted Johnny Mack Henderson of embezzlement and arson. MCLA 750.73; MSA 28.268 and MCLA 750.174; MSA 28.371. His appeal by right presents two allegations of error for our consideration.
I
Defendant first contends that the court committed reversible error when, in overruling a defense objection, it permitted the prosecutor to cross-examine defendant regarding his poor financial situation at the time of the offense, and instructed the jury that it might consider this evidence as bearing on defendant’s motive.
Defense counsel’s objection at trial was based, as is his argument here, on People v Johnson, 393 Mich 488, 496-499; 227 NW2d 523 (1975). Johnson held that, in a prosecution for carrying a concealed weapon, it was reversible error for the prosecutor to question the defendant regarding his unemployment and argue to the jury that it could consider defendant’s unemployment and poverty in determining whether he committed the charged offense. Justice Williams, for the majority, wrote:
"Obviously neither poverty nor unemployment is an element of the crime of carrying a concealed weapon. Either a poor man or a rich man may be either guilty or innocent of carrying a concealed weapon. Likewise whether a man is employed or unemployed is no proof or partial proof of carrying a concealed weapon. Neither does defendant’s poverty or unemployment affect his testimonial credibility in this case. In short, these things neither in law nor in logic are evidence of defendant’s guilt or innocence or his tendency to lie or tell the truth. To assert otherwise is to argue a non sequitur.
"Consequently this argument and advice to the jury by the prosecutor is erroneous and patently prejudicial. And in this connection so is the cross-examination leading up to this argument and advice.” 393 Mich at 496-497. (Footnote omitted.)
Johnson has provoked a number of recent decisions in which different panels of this Court have struggled with the question of when cross-examination regarding the defendant’s financial circumstances will constitute reversible error. See People v Ronald Green (On Remand), 79 Mich App 186; 261 NW2d 253 (1977), and cases therein cited. Reversal in those cases has been held to turn on the number of such questions (People v John Moore, 78 Mich App 150; 259 NW2d 403 [1977], People v Jackson, 77 Mich App 392; 258 NW2d 89 [1977], People v LaForte, 75 Mich App 582; 256 NW2d 44 [1977], People v Baldwin, 74 Mich App 700; 254 NW2d 619 [1977]), whether the defendant first raised the subject on direct examination or by a volunteered, unresponsive statement on cross-examination (People v John Moore, supra, People v Thomas Jones, 73 Mich App 107; 251 NW2d 264 [1976]), whether the matter was emphasized as proving the defendant’s motive (People v John Moore, supra, People v LaForte, supra, People v Baldwin, supra), whether the cross-examination probed into a number of other areas which were regarded as prejudicial and irrelevant (People v LaForte, supra, People v Osborne, 75 Mich App 600; 256 NW2d 45 [1977], People v Ronald Green, 74 Mich App 601; 254 NW2d 788 [1977]), and, of course, whether defense counsel objected to the questioning (People v John Moore, supra, People v Jackson, supra, People v LaForte, supra, People v Baldwin, supra, People v Thomas Jones, supra).
As the foregoing citations demonstrate, there is broad agreement among the panels of this Court as to what facts militate for or against reversal where such cross-examination occurs. However, there is conflict over the basic issue: when is this cross-examination proper?
In appeals from convictions for delivery of heroin (People v John Moore, supra), breaking and entering with intent to commit larceny (People v LaForte, supra), and first-degree murder, under circumstances suggesting a killing for hire (People v Ronald Green, supra), such evidence has been said to be irrelevant and inadmissible to establish the defendant’s motive.
Although they do not explicitly state the theoretical basis of their conclusion, these authorities seem to put their decisions on the ground of legal, as opposed to logical, relevance. This may be inferred from their concern with the prejudicial effect of permitting this cross-examination, as opposed to its lack of a logical connection to a matter in issue.
However, Johnson involved a prosecution for carrying a concealed weapon. In People v Jackson, supra, where the charged offense was armed robbery, the panel interpreted Johnson’s holding as limited to logical relevance, i.e., a holding that the cross-examination there was impermissible solely because there is no logical connection between the defendant’s want of money and the crime of carrying a concealed weapon. The Jackson Court thus concluded, in dicta, that the evidence would be relevant and admissible in a trial for a theft offense.
The Court in People v Thomas Jones, supra, apparently took a similar view of Johnson, finding like inquiries "arguably relevant” in a trial for armed robbery.
In the case before us, defense counsel’s timely and specific objection, and the court’s instruction to the jury that they could consider the evidence as tending to show defendant’s motive, narrow our inquiry to the question dividing the previously cited authorities: in a trial for embezzlement, an offense presumably motivated by a desire for pecuniary gain, is it reversible error to permit the prosecutor, over objection by defense counsel, to cross-examine the defendant regarding his poor financial situation, for the purpose of establishing the defendant’s motive to commit the offense?
To permit routine proof of impecuniousness to establish the motive for a theft offense is unjustifiable unless we assume that wealth exerts a greater attraction on the poor than on the rich. But though the poor may be moved by their need, those with greater income may respond to the pangs of insatiable avarice. We reject the assumption that "easy money” is more alluring to the poor than to the prosperous.
It may be argued that we should permit proof of the origins of each person’s desire for money, whether it be want, or well-fed cupidity. However, greed would not readily be proved. Poverty would. Hence we cannot, consistent with equal treatment to the poor and the well-to-do, indulge ourselves in the fiction that the motive of each may be shown at trial. If we attempt to permit this proof on a routine basis it will, without doubt, further disadvantage those least able to defend themselves in the courts.
This, the rule’s cost, is unwarranted by any resulting benefit. The motive for a theft offense seldom requires explanation. The motive is so pervasive that its proving will establish little more than the defendant’s typicality; such proof increases but little the likelihood that this defendant is guilty of the charged offense. If poor and rich share a common and obvious motive, then why prove poverty?
In summary, we regard the probative value of such evidence as very low, because the desire for more money is not confined to those in need. We also believe that the admission of such evidence, based upon a contrary assumption articulated in prosecutors’ summations, would inhibit realization of a highly valued judicial goal, equality before the courts. Therefore, absent extraordinary facts enhancing the need for such evidence, and thereby its probative value, we hold it to be legally irrele vant. See People v DerMartzex, 390 Mich 410, 415; 213 NW2d 97, 100 (1973). Because there were no such facts in the present case, we hold that the trial court erred by overruling defendant’s objection and instructing the jury that they might consider this evidence as tending to show defendant’s motive.
II
Defendant also contends that reversible error was committed by the prosecutor during cross-examination of the defense witness Dorothy Starrs. The prosecutor elicited from Ms. Starrs her admissions that she had made a number of false statements in applications for ADC benefits.
Defendant, relying on the rationale of the plurality opinion in People v Hammond 394 Mich 627; 232 NW2d 174 (1975), argues that this cross-examination reversibly prejudiced his trial by implicating him in the unrelated offense of welfare fraud.
We disagree. It was proper intrinsic impeachment to extract from Ms. Starrs her confession that she had made fraudulent misrepresentations and omissions while under an obligation to tell the truth. See MCLA 400.60; MSA 16.460. As to defendant, Ms. Starrs testified that he was the father of her two children, that he was living with her, and that he was paying the rent. While this testimony was necessary to establish the facts underlying Ms. Starrs’ fraud, it did not implicate defendant in this crime. See People v Killingsworth, 80 Mich App 45; 263 NW2d 278 (1977). Nor did the prosecutor, in his closing argument, characterize defendant as a "lazy non-provider”, or in similarly disparaging terms, as was the case in Hammond, supra. On the contrary, the prosecutor stressed to the jury that "[t]he reason I went into the details that I did for his girlfriend was because we wanted to establish that she has not told the truth in the past”.
On these facts, we find no reversible error in this cross-examination.
For the reasons expressed in Issue I, this case is reversed and remanded.
J. R. Rood, J., concurred.
"Q How was your financial situation back in August of 1975?
"A Not bad.
"Q How about not good?
"A Not bad.
"Q Didn’t Consumers Power on July 28th, ’75 turn off your power?
"A Yes, they did.
"Q Okay. Hadn’t they turned it off once before in April?
"A They did not.
"Q They did not discontinue the service on April 4, 1975?
"MR. HOWARD [Defense counsel]: Your Honor, I am going to object to this line of questioning. I think it is improper under People v Johnson, 393 Mich, 428.
"THE COURT: I am familiar with that case.
"MR. ZERIAL [Prosecuting attorney]: We are going to the intent. I think it is obvious as to what his financial condition is.
"MR. HOWARD: The man’s poverty or non-poverty is not in question in this trial.
"MR. ZERIAL: That case I am familiar with, and that was a CCW case.
"THE COURT: No, that was the television case. That was that case where the television was on the back seat?
"MR. ZERIAL: Right.
"MR. HOWARD: No, your Honor. It is a CCW case, and the Court says—
"MR. ZERIAL: Just like I said.
"MR. HOWARD: And the Court said—
"THE COURT: Well, I am familiar with either with that case or one like it.
"MR. HOWARD: I really don’t see the relevance either.
"THE COURT: Are you trying to show motive or what?
“MR. ZERIAL: Yes, that case is entirely different.
"THE COURT: Well, let me say this to the jury. We are getting some testimony here about who is married and who isn’t married, and who has kids legitimately and whose aren’t, and who is having the power shut off, and who isn’t. Now, those things are not in issue. I mean, the charge here is embezzlement of money, and the charge here is arson. Now, if the prosecutor is bringing this out to show motive, I will permit it, but only for that purpose. We are not charging anybody here with — I’d like to say sometimes this is a court of chancery not a court of chastity. So only for that purpose, and I would hope that you would restrict it as much as you can, Mr. Prosecutor.
"MR. HOWARD: Your Honor, I would ask that the record reflect my objection.
"THE COURT: What?
"MR. HOWARD: I would ask that the record reflect my objection.
"THE COURT: Yes, it will, and you may have your exception.”
"[Enactment of a] law against poverty,” People v LaForte, supra, 75 Mich App at 584; "[creation of] a two-tiered standard of justice * ** * demolishing] pro tanto the presumption of innocence.” People v Ronald Green, supra, 74 Mich App at 606.
We cannot stress too strongly that our concern here is only with proof of financial need as supplying the motive for a theft offense. Discussions of this issue suffer a tendency to restate it as something like the following: whether impecuniosity may be proved to establish the likelihood that someone would steal. There is a subtle but important shift of emphasis; the inquiry becomes whether someone with lower income is more likely to steal than someone whose income is greater.
It must be recognized that there are two different questions: whether the strength of one’s resistance to a specific means of gain (theft), is inversely proportional to one’s financial need (or social class), and whether the attraction which one feels to monetary gain is directly proportional to that need.
It is the latter inquiry which occupies us here.
As to the former, there may be a statistically verifiable answer. Perhaps the socialization of the more deprived leaves them with less regard for property rights and less resistance to the impulse to gain by violating those rights. We presume that the relationships between social class, financial need, and probability of theft as a response are very complex. Whatever those relationships may be, neither argument nor evidence has been presented to this Court in an effort to justify the cross-examination conducted herein on their basis. We offer no opinion on this question.
We also emphasize that the issue here is not the propriety of using "bookkeeping evidence”, which tends to establish that defendant came into a sum of money, the source of which is inadequately explained, at about the time of the commission of a theft offense. Such evidence might properly be received as probative of defendant’s possession of the fruits of the crime, as opposed to defendant’s motive for committing a crime.
To illustrate the sort of circumstances we have in mind, we offer the following example. Suppose an apparently well-to-do defendant took the stand and testified that his financial well-being put him above any motive for further gain. We would not thereafter look favorably upon a defense objection to the prosecutor’s attempt to impeach such testimony. Cf. People v Kolowich, 262 Mich 137, 146-147; 247 NW 133, 136 (1933). | [
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J. H. Gillis, J.
This is an appeal from the revocation of probation. Defendant was charged with embezzlement of more than $100, to-wit, $23,900, contrary to MCLA 750.174; MSA 28.371. On June 19, 1973, he pled nolo contendere to the charge of attempted larceny over $100, contrary to MCLA 750.92, 750.360; MSA 28.287, 28.592. Defendant was sentenced to five years probation by Judge Clarence Laster, Jr., on July 19, 1973. The order of probation required the defendant to serve the first six months in the Detroit House of Correction and included the condition "that probationer shall make restitution as follows: to be determined”.
On October 30, 1973, the court entered an amended order of probation which exonerated the defendant from serving any further time in jail, allowed the defendant to live in Windsor, Ontario, and restated the earlier condition of the restitution: "to be determined”.
Subsequently, a judgment following civil litigation was rendered against the defendant, and on May 20, 1976, an amended order of probation was entered. The order required the defendant, as a condition of probation, to make restitution in the amount of $23,900, payable at the rate of $1,000 per month.
Apparently, the defendant received no notice of the amended order until June 24, 1976, when he appeared before Judge Laster and the order was explained to him. At that time, the defendant advised the judge of his financial inability to comply with the terms of the order. The judge acknowledged the defendant’s financial inability to pay $1,000 per month from his employment earnings, but refused to amend the order in the belief that the defendant was still in possession of the embezzled funds. The defendant attempted to dispel that belief.
Subsequently, the defendant fulfilled all of the conditions of probation except payment of $1,000 per month restitution. In July and August, 1976, the defendant reported to the probation department as required and paid $5 on each occasion. A notice of probation violation charging the defendant with failure to pay $1,000 per month as ordered by the court was issued and a revocation hearing was held on September 27, 1976, before Judge Laster.
At the hearing, defendant, this time assisted by counsel, reasserted his financial inability to make the monthly $1,000 restitution payments. Defense counsel stated to the court:
"[The defendant] stated he did not have the money, has not got the money, and it is my position, equally, with respect to this matter before, that he can’t be found guilty of contempt, failing to comply with the order based upon the assumption that he has the money.”
The court convicted the defendant of probation violation on the basis of his failure to pay the $1,000 per month restitution as ordered, and sentenced the defendant to 20 months to 2-1/2 years imprisonment.
On appeal, the defendant contends that he was entitled to notice and opportunity to be heard prior to entry of the amended order of probation wherein specific terms of restitution payment were provided.
In People v Good, 287 Mich 110; 282 NW 920 (1938), the Court rejected a similar claim that the due process clause of both the Federal and State Constitutions requires that the defendant be afforded notice and an opportunity to be heard on the amount of restitution prior to its determination. The Court reasoned:
"A defendant [when ordered to pay restitution as a condition of probation] * * * is merely given the alternative of abiding by the conditions imposed or else suffering the imposition and execution of a sentence which ordinarily follows a verdict of guilty. This defendant was not deprived of any of his rights without due process; rather he was given the additional privilege of avoiding the usual penalty of his crime by the payment of a sum of money and the observance of the other conditions attached to his probation. Consequently it was not a deprivation of due process of law to deny defendant a hearing on the question of the amount of 'damages’ to be imposed as a condition of probation and the statute, section 17373, is ample notice of the possibility that such a condition might be imposed.” 287 Mich at 115, 116 (Emphasis supplied.)
The underlying reasoning of the Good Court that probation and its conditions thereof is a privilege has recently been reaffirmed in People v Rial, 399 Mich 431, 437; 249 NW2d 114 (1977). See also People v Jim Williams, 57 Mich App 439, 441-442; 225 NW2d 798 (1975), People v Terminelli, 68 Mich App 635, 637; 243 NW2d 703 (1976). Thus, Good, supra, is still a good law in this jurisdiction and is dispositive of the defendant’s procedural due process claim.
Defendant cites People v Gallagher, 55 Mich App 613; 223 NW2d 92 (1974), in support of his position. In dictum, the Gallagher Court suggested:
"It seems desirable to have the defendant and his lawyer participate in the restitution decision. The matter might be discussed at the time of a plea of guilty. The recommended amount of restitution or reparation and the manner of its payment should be included in the presentence report and disclosed. The court might tell the defendant at the time of conviction that if probation is granted, restitution may be required, and suggest that he and his lawyer propose a plan for restitution to the presentence investigator. In any event, the court could invite comment from defendant about the restitution the court is considering before it is imposed as a part of the sentence.” 55 Mich App at 620.
While the recommended procedure should be followed by sentencing judges, the Gallagher Court did not hold that it was a prerequisite to a valid order of probation, and we decline to do so at this time.
Probation is within the province of the sentencing judge, and the appellate courts will not interfere in probation matters absent a showing of a violation or abuse of statutory authority or violation of some constitutional right of the defendant. People v Sattler, 20 Mich App 665, 669-670; 174 NW2d 605 (1969).
"The amount and manner of payment of reasonable restitution is a matter for the judgment of the sentencing judge, as to him 'may be meet and proper’.” People v Gallagher, supra, at 620.
In People v LaPine, 63 Mich App 554, 558; 234 NW3d 700 (1975), this Court stated:
"However, we caution the trial court that if payment is impossible or would constitute an undue hardship, these conditions should be modified or withdrawn. See People v Gallagher, 55 Mich App 613, 619-620; 223 NW2d 92 (1974).”
There we dealt with a reimbursement condition of parole, and stated that so long as reimbursement fairly reflects the defendant’s ability to pay, the trial court does not abuse its discretion by imposing the requirement. It necessarily follows that where the reimbursement or restitution condition does not fairly reflect the defendant’s ability to pay, it is an abuse of discretion for the sentencing court to refuse to modify or withdraw the condition when notified of the defendant’s financial situation.
Here, the judge was informed of and recognized the defendant’s inability to make the $1,000 monthly restitution payments from his employment earnings. Nonetheless, the judge refused to modify or withdraw the probation condition solely on the basis of the judge’s unverified assumption that the defendant was in possession of the embezzled funds and therefore financially able to make the restitution as ordered. There is some indication in the record that the defendant was not, in fact, in possession of the funds. Defendant also attempted to convince the judge that he did not have the funds.
In People v Westerfield, 71 Mich App 618; 248 NW2d 641 (1976), the Court held that sentencing the defendant on the basis of unverified assumptions of fact was a denial of due process. The Court stated:
" * * * [I]t is apparent that, in effect, defendant’s sentence was increased because of the trial court’s belief that defendant was guilty of offenses which defendant denied. There was no proof to support this conclusion by the trial court. A sentence based on such considerations amounts to a denial of due process. People v Zachery Davis, 41 Mich App 683; 200 NW2d 779 (1972), People v Perine, 7 Mich App 292; 151 NW2d 876 (1967), People v Grimmett, 388 Mich 590; 202 NW2d 278 (1972). A sentencing judge has a duty to ascertain, upon objection by a defendant, that the defendant is not prejudiced in sentencing by false information. People v McIntosh, 62 Mich App 422; 234 NW2d 157 (1975). That duty is not fulfilled where, as here, a convicted defendant is sentenced on the basis of assumptions of fact based on no proof and inconsistent with defendant’s version of the facts.” 71 Mich App at 626. (Emphasis supplied.)
The implicit reasoning of Westerfield, supra, is that the judge’s action in sentencing the defendant on the basis of unsupported assumed facts is arbitrary and unreasonable. Without deciding whether the defendant is afforded the same constitutional protections when the judge determines a condition of probation on the basis of unverified assumptions, we hold that such action is an abuse of discretion and that the resulting probation order is invalid.
The sentencing court may not revoke the de fendant’s probation and impose imprisonment on the basis that the defendant has failed to pay restitution as ordered where he is financially unable to do so. Revocation on this basis constitutes a denial of the defendant’s constitutional right to equal protection, as his imprisonment constitutes a discrimination on the basis of economic status. People v Gallagher, supra at 620, People v Terminelli, 68 Mich App 635, 637; 243 NW2d 703 (1976).
Here, where the defendant objected below to the required restitution payment of $1,000 per month, on the basis that he had no assets and was financially unable to make such payments from his employment earnings, which the judge acknowledged, he is entitled to invoke on appeal the protection of the equal protection doctrine. See People v Billy Williams, 66 Mich App 67; 238 NW2d 407 (1975).
The facts presented by the defendant to the sentencing judge showed that the defendant was financially unable to make monthly restitution payments of $1,000. The sentencing judge may not base his restitution order or revocation of probation on assumed ability to pay where such assumption is objected to by the defendant, and subsequently left unverified.
Therefore, we hold that the court’s revocation of defendant’s probation and sentence imposing imprisonment was improper and must be vacated and set aside. We remand the cause for redetermination of the restitution condition, and strongly urge that the procedures suggested in People v Gallagher, supra, be followed. | [
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Danhof, C.J.
This case involves the custody of a minor child, presently living with her father, the plaintiff, and her paternal grandparents at the latter’s home in Ann Arbor.
The plaintiff brought the child to Michigan in February, 1977, from Texas, where he had separated from the child’s mother. Subsequently, the mother, defendant in this suit, won custody of the child by default judgment filed in Texas on June 2, 1977, and within two weeks thereafter came to Michigan to enforce the decree in the Washtenaw County Circuit Court. The circuit court agreed to accord full faith and credit to the Texas judgment, but stayed enforcement until the father had had a reasonable opportunity to petition the Texas court for an amendment based on a change in circumstances.
The plaintiff discovered that by Texas law the judgment could not be amended in that state for one year. Therefore, he petitioned the Washtenaw court to reconsider its order and determine the permanent custody of the child. The Washtenaw County Friend of the Court informed the court that, because the child was in a critical stage of her development, it was imperative to decide the custody question immediately.
Whereupon, Washtenaw County Circuit Judge Ross Campbell telephoned the Texas court that had entered the initial custody decree to discuss whether Michigan should exercise its concurrent jurisdiction to modify the decree. The judges agreed by phone, later confirmed by letter of record, that it would be expedient for the Michigan court at that time to make some determination of the child’s custody. Accordingly, Judge Campbell held a hearing which both parties attended with counsel, and concluded it was in the best interest of the child to stay with the father so long as he remained unmarried and living at his parents’ home.
The defendant appeals that decision raising issues under both the Uniform Child Custody Jurisdiction Act, MCL 600.651 et seq.; MSA 27A.651 et seq., and the Child Custody Act, MCL 722.21-722.29; MSA 25.312(1)-25.312(9).
I
She first contends that the Washtenaw County Circuit Court did not have subject matter jurisdiction to determine questions relating to the child’s permanent custody. The authority to modify the custody decree of a foreign court is granted and conditioned by three sections of the Uniform Child Custody Jurisdiction Act.
The basic grant of jurisdiction is in § 3 (MCL 600.653; MSA 27A.653) which provides in pertinent part:
"(a) A court of this State which is competent to decide child custody matters has jurisdiction to make a child custody determination by initial or modification decree if:
"(1) This State (i) is the home state of the child at the time of commencement of the proceeding, or (ii) had been the child’s home state within 6 months before commencement of the proceeding and the child is absent from this State because of his removal or retention by a person claiming his custody or for other reasons, and a parent or person acting as parent continues to live in this State; or
"(2) it is in the best interest of the child that a court of this State assume jurisdiction because (i) the child and his parents, or the child and at least one contestant, have a significant connection with this State, and (ii) there is available in this State substantial evidence concerning the child’s present or future care, protection, training, and personal relationships.”
Neither party seriously contends that the Wash-tenaw County Circuit Court lacked minimal jurisdiction. The plaintiff asserts that the court had jurisdiction under subsections 3(a)(1) and 3(a)(2). We agree there was jurisdiction under 3(a)(2).
The first condition to a court’s § 3 jurisdiction to modify a foreign custody decree is stated in subsection 14(a), MCL 600.664(1); MSA 27A.664(1):
"If a court of another state has made a custody decree or judgment, a court of this state shall not modify that decree or judgment unless it appears to the court of this state that the court which rendered the decree or judgment does not now have jurisdiction under jurisdictional prerequisites substantially in accordance with sections 651 to 673 or has declined to assume jurisdiction to modify the decree or judgment and the court of this state has jurisdiction.”
The theory of this subsection is that courts rendering custody decrees normally retain continuing jurisdiction to modify them, and other states, in order to achieve greater stability of custody arrangements and avoid forum shopping, will defer to that continuing jurisdiction so long as the original state retains jurisdiction under the standards of the act. 9 Uniform Laws Annotated (Master ed), Uniform Child Custody Jurisdiction Act, Commissioner’s Note, p 122. (Hereinafter Commissioner’s Note.)
In this case, as the Washtenaw County Circuit Court acknowledged, Texas retained continuing jurisdiction to modify its original decree. See Commissioner’s Note, supra. We find, however, that the Texas court declined to exercise jurisdiction by its phone conversation and letter.
In determining whether to decline or retain jurisdiction, the Texas and Michigan judges admi rably followed the procedures prescribed by the Uniform Child Custody Jurisdiction Act, § 7, MCL 600.657; MSA 27A.657, including the suggestion in subsection d that the courts communicate and exchange pertinent information.
In her brief the defendant complains that the Texas court’s declination of jurisdiction was too informal, that "courts speak through their written orders, not through letters between Judges”. Neither the language of § 14 nor the corresponding commissioner’s notes require a court to formally decline to assume jurisdiction. The act is to be construed to promote its purposes, which are generally to assure that child custody is determined by the state that can best decide the case in the interest of the child, and to discourage relitigation and unilateral removal of children by avoiding judicial conflicts and by promoting cooperation and exchange of information between judges. See Uniform Child Custody Jurisdiction Act, § 1, MCL 600.651; MSA 27A.651. While we would encourage judges in the future to decline jurisdiction by order, we find the purposes of the act were adequately served in the present case by the judges’ mutual decision and its official recordation.
A second qualification to a court’s authority to modify under § 3 is the "clean hands” principle of MCL 600.658(2); MSA 27A.658(2). That subsection is in two parts. The first mandates the court, "[ujnless required in the interest of the child,” to decline to exercise jurisdiction to modify a foreign custody decree "if the petitioner, without consent of the person entitled to custody, has improperly removed the child from the physical custody of the person entitled to custody or has improperly retained the child after a visit or other temporary relinquishment of physical custody”. Clearly, the present plaintiffs acts of removing his daughter from Texas and keeping her in his parents’ home after the Texas decree was entered do not fall within the last clause of the quoted sentence. Neither do we reason that his removal was improper under the preceding clause. "Improperly” under subsection 8(b) means illegally, qualified by a special circumstances justification. Commissioner’s Note §8(b), p 116. Compare, Uniform Child Custody Jurisdiction Act, § 8(a), MCL 600.658(1); MSA 27A.658(1) (definition of "wrongfully”). Since both spouses had a right to custody until a court determination was made, and since the plaintiff removed the child from Texas before the Texas court entered its initial decree, his acts were not illegal.
Part two of subsection 8(b) requires the court in its discretion to decline to exercise jurisdiction, "if the petitioner has violated any other provisions of a custody decree or judgment of another state * * * [and it] is just and proper under the circumstances” to decline jurisdiction. We agree with the Oregon case of Settle v Settle, 276 Or 759; 556 P2d 962 (1976), rev’g, 25 Or App 579; 550 P2d 445 (1976), that the failure to return a child to the one entitled to custody under the decree of another state amounts to a violation of that state’s decree under part two of subsection 8(b). Under the circumstances of this case, however, the Washtenaw County Circuit Court did not abuse its discretion in retaining jurisdiction.
In Settle, supra, the Oregon Supreme Court held it was proper for a lower court to exercise jurisdic tion to modify an Indiana custody decree even though the petitioner’s failure to obey the foreign decree was aggravated by her acts of removing the children from Indiana to Oregon during the pen-dency of a marriage dissolution proceeding in Indiana and secreting the child’s whereabouts in Oregon. In contrast, the petitioner in the present case removed his daughter to Michigan before his wife began marriage dissolution proceedings in Texas and never secreted the child’s whereabouts in this state. Indeed, the petitioner obtained a temporary custody order shortly after he arrived in Michigan, and has maintained custody ever since under a series of orders and judgments of the Washtenaw County Circuit Court.
In the final analysis the court should not decline jurisdiction under the clean hands principle to punish the parent at the expense of the child. Settle, supra; Nelson v District Court ex rel Second Judicial District, 186 Colo 381; 527 P2d 811 (1974). Professor Leonard Ratner emphasizes that "[t]he welfare of the child is the first consideration in determining its custody”, and "[t]his determination should, whenever feasible, be made by the court most likely to decide correctly, i.e., by the court having maximum access to the relevant evidence”. (Emphasis in original.) Ratner, Child Custody in a Federal System, 62 Mich L Rev 795, 809 (1964). In the instant case the Washtenaw County Circuit Court had all the parties concerned with the child’s well being before it and had been provided studies of the child’s present home in Michigan and potential home with her mother in Texas. We find it was the court most likely to decide the custody question correctly. Cf. Nelson, supra, (best interests of child should be determined by state with maximum access to evidence, even when petitioner has violated mandatory part of equity section).
McDonald v McDonald, 74 Mich App 119; 253 NW2d 678 (1977), relied on in opposition to the circuit court’s retention of jurisdiction, is clearly distinguishable from the present case.
II
The defendant’s brief raises three issues under the Child Custody Act. All three call into play the following standard of review:
"To expedite the resolution of a child custody dispute by prompt and final adjudication, all orders and judgments of the circuit court shall be aifirmed on appeal unless the trial judge made findings of fact against the great weight of evidence or committed a palpable abuse of discretion or a clear legal error on a major issue.” MCL 722.28; MSA 25.312(8).
A. Burden of Proof.
In deciding the custody rights of the child in this case the circuit court apparently proceeded under the act’s § 5, MCL 722.25, MSA 25.312(5), to determine the best interests of the child, without allocating a special burden of proof to either side. The nonprevailing defendant claims the court should have proceeded under § 7, MCL 722.27; MSA 25.312(7), to place the burden of proof by clear and convincing evidence on the plaintiff. Section 7 provides in part that: "[t]he court shall not modify or amend its previous judgments or orders or issue a new order so as to change the established custodial environment of a child unless there is presented clear and convincing evidence that it is in the best interest of the child”.
We find § 7 inapplicable to the case at bar, since the court’s order did not change the established custodial environment. Such an environment is created "if over an appreciable time the child naturally looks to the custodian in such environment for guidance, discipline, the necessities of life and parental comfort”. Id. At the time the defendant petitioned the Washtenaw County Circuit Court for enforcement of the Texas decree, the child had been gone from her for four months. When the plaintiff moved for a modification of the Texas decree, the child had been with him for 6 months, and for 13 months at the time of trial. If anywhere, the established custodial environment was with the plaintiff in his parents’ home. Cf. Berman v Berman, 84 Mich App 740; 270 NW2d 680 (1978) (in determining whether custodial environment has been established, look to existing custodial arrangement rather than denomination of custody decree).
We would not go so far, as the plaintiff would have us, to place the burden of proof by clear and convincing evidence on the defendant. That would disrespect the Texas court’s earlier finding that "it would be in the best interest of said child if the Petitioner herein, Deborah Green, were appointed to be the Managing Conservator”. Under the special circumstances of this case, the judge did not err in determining the best interests of the child without recognizing a presumption in favor of either parent.
B. Findings of Fact.
We disagree with the defendant that the trial court failed to make findings on each of the factors enumerated in § 3 of the Child Custody Act, MCL 722.23; MSA 25.312(3). We have reviewed each of the court’s findings, together with the defendant’s corresponding objections, and have not found them to be against the great weight of the evidence.
C. Finality of the Custody Determination.
After specifying the various kinds of relief a circuit court may grant in a custody dispute, § 7 of the Child Custody Act authorizes the court to "[t]ake any other action considered to be necessary”. MCL 722.27(f); MSA 25.312(7)(f). This broad authority, however, is qualified by the objectives of the act, one of which is to achieve stability in a child’s home environment. Berman v Berman, supra.
The defendant contends that the circuit court’s order in the instant case, by granting custody to the plaintiff so long as he remains unmarried and living with his parents, undermines the stability objective. While we do not generally favor orders that contemplate a probable change in environment, we cannot say the circuit court committed a palpable abuse of discretion.
The courts of this state, under the particular circumstances of the cases presented, have upheld custody decrees that were probationary, McLay v McLay, 354 Mich 19; 91 NW2d 824 (1958), alternative, Schilleman v Schilleman, 61 Mich App 446; 232 NW2d 737 (1975), and temporary, Berman v Berman, supra. All of the above decisions are distinguishable from the present, it is true, in that the custody decrees upheld were reviewable after specified periods of time. The decree on review here is more indefinite. It is similar to the above- accepted decrees, nonetheless, in that it does not contemplate an automatic shift in the custodial environment upon happening of the stated contingencies. Rather, it calls for a hearing and review of the custody decision under the then-existing circumstances. Clearly, the home the plaintiff had made for the child with his parents was a material circumstance in Judge Campbell’s decision. Upon a change in material circumstances a nonprevail-ing parent may seek to modify or change an earlier custody order. By restating that right in its order, the circuit court has not obviously thwarted the statutory purpose.
Affirmed. Costs to appellee.
The "home state” concept is not clearly applicable. At the time the child’s mother commenced enforcement proceedings on June 2, 1977, the 22-month old child had not lived in either Michigan or Texas for six consecutive months. The father challenged the enforcement on jurisdictional grounds. When the father moved the Washtenaw County Court to reconsider its order and to modify the Texas decree on grounds of changed circumstances on September 28, 1977, the child had been living in Michigan for more than six consecutive months (since the end of February). Subsection 3(a)(1) was apparently drafted with initial custody proceedings in mind. See 9 Uniform Laws Annotated, Uniform Child Custody Jurisdiction Act, Commissioner’s Note, § 3, p 107, citing Ratner, Child Custody in a Federal System, 62 Mich L Rev 795, 818 (1964). Neither the act nor the commentary indicates whether the date of the above enforcement or modification petitions should be considered "the time of the proceeding” under subsection 3(a)(1). The parties have not pointed us to a case that would aid us in that determination.
In any event, subsection 3(a)(2) jurisdiction is established by the facts that the father is domiciled in this state, the child’s four (or six) month stay established significant contacts, all individuals who have an interest in the child’s well being and custody were either domiciled in Michigan or sought to enforce their legal rights by way of enforcement or permanent custody petitions in this state, and substantial evidence concerning the child’s present or future care, protection and training clearly was available in this state. Accord, Nelson v District Court ex rel Second Judicial District, 186 Colo 381; 527 P2d 811 (1974).
In addition to concurring with Michigan jurisdiction, the Texas court by its letter informed the Washtenaw County Court that the mother’s attorney had moved for a prompt home investigation of the mother in Texas. The Texas court promised that it would order a copy of any such investigation to be forwarded to Michigan.
A Michigan court in that case declined to exercise concurrent jurisdiction to determine permanent custody over children that had been removed by their mother during the pendency of permanent custody proceedings in Washington. In contradistinction to the present case, the Washington and Michigan courts in McDonald had not mutually decided that Michigan would be a more appropriate forum under the policies of the act. We note also that the decision to exercise concurrent jurisdiction over pending custody proceedings is distinct in a policy sense from the decision to modify an already entered custody decree. The two decision making processes are guided by different rules under the Uniform Child Custody Jurisdiction Act. For provisions applicable to simultaneous custody proceedings see § 6, MCL 600.656; MSA 27A.656.
The circuit court stated in its opinion:
"I must say that my decision is based in large part on the fact that the child is now living in Mr. Green’s home, which he is making with his parents, and I stress with his parents, and I do not contemplate the child being removed from that home and Mr. Green being there with it without the Court reconsidering the effect which that would have on the child and what kind of a home is offered at that point in time by both Mr. Green and by the present Mrs. Gregory.”
To the extent the mother’s objection on this point is really a challenge to the court’s findings of fact under subsection 3(e) as to "the permanence, as a family unit, of the existing or proposed custodial home”, MCL 722.23(e); MSA 25.312(3)(e), we incorporate our summary holding under Part II-B.
We add here that subsection 3(d) of the act requires the court also to consider and evaluate "[t]he length of time the child has lived in a stable, satisfactory environment and the desirability of maintaining continuity”. MCL 722.23(d); MSA 25.312(3)(d). Given that the child had lived in its existing home for 13 months at the time of trial and that the Friend of the Court had reported she was in a critical stage of her development, we cannot say it was against the great weight of evidence that her best interests lie in her staying with the father. | [
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C. W. Simon, J.
This interlocutory appeal concerns the splitting of a cause of action arising from an automobile accident. On February 14, 1973, appellee, Tony Martin, and appellant, Juanita Johnson, were involved in a collision wherein Martin allegedly sustained both physical injury and property damage. Martin, however, was insured and, therefore, reimbursed $503.16 by his insurance carrier, Motors Insurance Corporation (hereinafter referred to as MIC), for the damage to his automobile. Because of this payment, MIC became subrogated to Martin’s claim for damage, and on January 10, 1974, filed suit in the Common Pleas Court of Detroit to recover from Johnson.
On April 10, 1974, Johnson, defendant in this action, moved pursuant to GCR 1963, 205.1 to join Martin as a party plaintiff. However, MIC opposed the motion and prevailed in having Martin excluded. Thereafter, the cause proceeded to trial on the merits where, despite Martin’s testimony which was proffered by MIC, a judgment of no cause of action was rendered.
The present action was instituted on August 12, 1974, in the Wayne County Circuit Court. It was brought by Martin against Johnson to recover for the personal injuries he allegedly sustained in the accident. Johnson responded by asserting the prior common pleas adjudication and Martin’s failure to join in the previous suit. She moved for accelerated judgment under GCR 1963, 116.1(5), but such motion was denied by the trial court on the ground that Martin’s suit was not barred by the prior adjudication because he was neither a party nor in privity with any party to the former action. We granted leave to appeal.
This case poses an interesting twist to a classic, yet recurring, problem which arises out of the insurance practice providing for subrogation of the insurer for its insured with regard to the insured’s claim against a third-party tortfeasor after payment by the insurer of only part of that claim. See Anno: Simultaneous injury to person and property as giving rise to single cause of action, 62 ALR2d 977; Anno: Rights and remedies incident to subro-gation to one but not both elements of a single cause of action for injury to person and damage to property, 140 ALR 1241; 166 ALR 870. In such case, either or both could commence suit against the wrongdoer. GCR 1963, 201.2. See Worth v Wagner, 255 Mich 433; 238 NW 175 (1931). Their rights being distinct, the insured would seek recovery on the basis of personal injury or damage to his automobile caused by the collision, and the insurer upon the basis of damage which it had been compelled to pay on account of the collision, under the terms of the policy. 15 Blashfield, Automobile Law & Practice (3d ed), § 484.2, p 177.
Traditionally, since both causes arose out of one tortious act, Michigan law considered them to comprise but one cause of action. General Accident Fire & Assurance Corp, Ltd v Sircey, 354 Mich 478; 93 NW2d 315 (1958), Coniglio v Wyoming Valley Fire Ins Co, 337 Mich 38; 59 NW2d 74 (1953). Thus, an action by the insurer against the tortfeasor for property damage would operate to preclude a subsequent action by the insurer for personal injury, or vice-versa. 1 Am Jur 2d, Actions, § 149, pp 662-663. The policy behind this rule, of course, was to protect the defendant from a vexatious multiplicity of suits. Coniglio v Wyoming Valley Fire Ins Co, supra.
Modernly, while there is still but one cause of action, GCR 1963, 205.1 has replaced the common law rule against splitting a cause of action. 1 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), committee comment (3), p 544. Chunko v LeMaitre, 10 Mich App 490; 159 NW2d 876 (1968). Since joinder is mandatory rather than permissive, the rule makes it obvious that such joinder is required for the benefit of the opposite party and thereby places the burden of objecting to misjoinder on the opposite party. 1 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), committee comment (3), pp 544-545. Under GCR 1963, 111.3 failure to object would result in waiver of the defense of failure to join and allow the cause of action to be split. Chunko v LeMaitre, supra.
Here, defendant Johnson posed a timely motion, but, according to the Common Pleas Court, failed to demonstrate sufficient grounds to justify joinder. The motion was denied and never appealed. Thus, regardless of the propriety of the Common Pleas Court’s decision, it is not now subject to collateral attack. 56 Am Jur 2d, Motions, Rules and Orders, § 46, p 40.
This is not to say that we condone the splitting of a cause of action. Certainly, had the facts at the time of the common pleas determination been as they appear now joinder would have been required. Not only does the individual party have an interest in avoiding the burden of multiple litigation, but the courts and public have an important interest in the complete, consistent and efficient settlement of controversies which necessitates the settling of disputes by wholes. Provident Tradesmens Bank & Trust Co v Patterson, 390 US 102; 88 S Ct 733; 19 L Ed 2d 936 (1968). Whenever possible, these interests should be served by joinder.
Since, however, defendant Johnson waived objection to the cause of action being split, the question arises whether the common pleas adjudication adverse to MIC in any way effects an estoppel against Martin in the case at bar. As with the initial question, whether a cause of action may be split, there is no agreement among the jurisdictions on this point. Anno: Judgment in action growing out of accident as res judicata, as to negligence or contributory negligence, in later action growing out of same accident by or against one not a party to earlier action, 23 ALR2d 710; Anno: Judgment for insurer who paid property damage as bar to another action against same tortfeasor by owner or another subrogated insurer for additional property damage arising from same tort, and vice versa, 22 ALR2d 1455.
Now, Johnson contends that the common pleas adjudication is res judicata in the present litigation, and arguably, implicit in the common pleas determination of no cause of action is a finding either that Johnson was not negligent or that Martin was contributorially negligent. That there was damage to the automobile proximately caused by the accident was not seriously contested. Thus, assuming the doctrine of res judicata would apply it would bar recovery in the present suit.
However, this Court has previously addressed and rejected the identical argument, Chunko v LeMaitre, supra, and we see no reason to diverge from that holding. In Chunko, this Court stated:
"Under the facts of this case the common pleas case concerning property damages was not res judicata in the circuit court personal injury action. To hold otherwise would prevent a real litigation of the personal injury claim, would be contrary to the logic and reality of automobile accident subrogation law, and would ignore the complex court rules which were designed to meet this very situation.” 10 Mich App at 496-497.
Although such result lacks logic in that it could allow recovery for the subrogor where the subrogee has failed, any other result would be equally unjust and not conducive to economical judicial administration. While the court rules attempt to bring all the potential litigants to bar in one action, revival of the doctrine of res judicata in this context would promote strategic waiver of their joinder mandate and encourage a more or less sporting theory of justice. To allow an insured who was without control over the action, without the power to decide when and where the action should be commenced, or if an appeal should be taken, to be bound by an adverse decision in a suit by his insurer would be to place too high a price on collision insurance. Reardon v Allen, 88 NJ Super 560; 213 A2d 26 (1965).
Moreover, we are quick to recognize that it is not only defendants who could seek to make a travesty of the court rule. Since the injured and his insurer are at least arguably in privity, see Guarantee Ins Co v Great American Indemnity Co, 163 F Supp 320 (ED Mich, 1958), application of res judicata would be mutual. Thus, an insured with a personal injury claim unknown to the defendant might forego intervention to avail himself of the doctrine should perchance the lesser sum involved in the property damage suit evoke concessions regarding liability that would not otherwise be made. This form of gamesmanship we find equally offensive. By adopting GCR 1963, 205.1 the Supreme Court has set forth an appropriate means of preventing the undesirable results caused by splitting a cause of action, Detroit v Spivey, 68 Mich App 295; 242 NW2d 561 (1976), and we are not inclined to detract from it.
Affirmed.
Since there exists only one cause of action, split though it may be, the doctrine of collateral estoppel is inapplicable. Where relitigation of the same cause of action is attempted the bar is properly termed res judicata. See 46 Am Jur 2d, Judgments, § 397, pp 563-566.
Since we hold that the doctrine of res judicata is inapplicable in this context it is unnecessary to reach the question whether Martin was in privity with his insurer, MIC. | [
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D. E. Holbrook, Jr., J.
This dispute involves the extent to which state civil service employees may exercise their fundamental rights to speech and association during nonworking hours by engaging in political activities. Specifically at issue are Michigan Civil Service Commission Rule 7, which imposes a blanket ban on political activity by classified employees, and the so-called "political freedom act”, 1976 PA 169, MCL 15.401 et seq.; MSA 4.1702(1) et seq., which allows classified employees to engage in enumerated types of political activities.
The case went to trial on stipulated facts. Plaintiff American Federation of State, County and Municipal Employees Council 11 represents approximately 6500 employees in the classified civil service. Plaintiff Robert Cusack was employed as an "Attendant Nurse 04” until he was discharged for the sole reason that he had filed a petition to become a candidate for sheriff in Ionia County. The other individual plaintiffs are current employees in the classified civil service. In view of the passage of MCL 15.401 et seq.; MSA 4.1702(1) et seq., plaintiffs brought suit to challenge defendant commission’s continued enforcement of Rule 7 which prohibits any political activities by classified employees.
The trial court issued a declaratory judgment which concluded that while the commission’s power to regulate conditions of employment was broad, the commission did not possess authority, either express or implied, to regulate an employee’s private off-duty activities until and unless such activities affect, interfere with or conflict with job performance. Further the trial court concluded that 1976 PA 169 was a proper and constitutional exercise of legislative authority. The trial court concluded that if narrowly interpreted, commission Rules 7.1 and 7.3 could be saved. To the extent MCL 15.402(c); MSA 4.1702(2)(c), conflicted with Rule 7.3, the trial court ruled the statutory subsection "may be without application to certain members of the classified state service”. Since the court concluded a political campaign requires a personal, emotional and physical dedication, the court concluded the commission was justified in discharging plaintiff Cusack. In short, the trial court attempted to uphold both the statute and the conflicting commission rules. Both plaintiffs and defendant appeal various aspects of the lower court ruling.
Both sides present compelling constitutional and policy arguments. In its most basic terms, the dispute involves the clash between commission rules, promulgated under Const 1963, art 11, § 5, which are designed to keep politics out of the state civil service and the fundamental freedoms of speech and association guaranteed all citizens by both the Michigan and Federal Constitutions.
Defendant commission contends the Legislature is without power to legislate in any area within the sphere of authority of the commission. According to the commission, Const 1963, art 11, § 5 grants the commission exclusive jurisdiction to prohibit any political activities by civil servants since the commission is empowered to regulate all conditions of employment.
The constitutional amendment which established the Michigan Civil Service Commission has been in effect since January 1, 1941. It is undisputed that the civil service system was established to put an end to the evils of the "spoils system” which had politicized all levels of state government. The goal of the amendment was to improve the classified civil service by the adoption of a merit system. Reed v Civil Service Comm, 301 Mich 137, 154-155; 3 NW2d 41 (1942).
In pertinent part, Const 1963, art 11, § 5 reads:
"The commission shall classify all positions in the classified service according to their respective duties and responsibilities, fix rates of compensation for all classes of positions, approve or disapprove disbursements for all personal services, determine by competitive examination and performance exclusively on the basis of merit, efficiency and fitness the qualifications of all candidates for positions in the classified service, make rules and regulations covering all personnel transactions, and regulate all conditions of employment in the classified service.” (Emphasis supplied.)
In essence, the commission takes the position that in view of the history surrounding the amendment, the grant of power to "regulate all conditions of employment” allows the commission to impose a blanket ban on political activity because such activity is inherently at odds with the goals of the amendment.
Pursuant to the amendment the commission has promulgated the following rules:
"Rule 7.1 Prohibited Activities. — No employee in the state civil service shall engage in any political activity while on duty, nor shall he be or become: An officer in a political party or organization; a member of any political party committee formed or authorized under the general election laws of the state; a delegate to any state, district or county convention held by any political party in this state; a member of any national political party committee; a delegate from this state to any national political party convention.
"Rule 7.3 Candidates for Public Office. — No employee in the state civil service shall become a candidate for nomination to any partisan elective office without first obtaining a leave of absence. The leave of absence shall remain in force and effect until the candidacy becomes official by the filing of petitions or by the action of a caucus or a convention, or by a filing fee. When a state civil service employee becomes an official candidate for elective office set forth as above, he shall at once resign from his civil service position.”
According to the commission, the purpose of the amendment was to eliminate politics from the classified service and enforcement of these rules is necessary to carry out that purpose. Such sweeping prohibitions are necessary, the commission argues, to prevent political considerations from, however subtly, infecting the integrity and efficiency of the civil service.
In 1976 the "political freedom act”, MCL 15.401 et seq.; MSA 4.1702(1) et seq., was enacted to permit civil service employees (and employees of political subdivisions of the state) to engage in certain political activities. Several of the more important statutory sections provide:
MCL 15.402; MSA 4.1702(2):
"An employee of the state classified civil service may:
"(a) Become a member of a political party committee formed or authorized under the election laws of this state.
"(b) Be a delegate to a state convention, or a district or county convention held by a political party in this state.
"(c) Become a candidate for nomination and election to any district, county, city, village, township, school district, or other local elective office without first obtaining a leave of absence from his employment. If the person becomes a candidate for elective office in the executive or legislative branches of the state or for the supreme court or court of appeals, the person shall request and shall be granted a leave of absence without pay when he complies with the candidacy filing requirements, or 60 days before any election relating to that position, whichever date is closer to the election.
"(d) Engage in other political activities on behalf of a candidate or issue in connection with partisan or nonpartisan elections.”
MCL 15.404; MSA 4.1702(4):
"The activities permitted by sections 2 and 3 shall not be actively engaged in by a public employee during those hours when that person is being compensated for the performance of that person’s duties as a public employee.”
MCL 15.405; MSA 4.1702(5):
"A public employer, public employee or an elected or appointed official may not personally, or through an agent, coerce, attempt to coerce, or command another public employee to pay, lend, or contribute anything of value to a party, committee, organization, agency, or person for the benefit of a person seeking or holding elected office, or for the purpose of furthering or defeating a proposed law, ballot question, or other measure that may be submitted to a vote of the electors.”
MCL 15.406; MSA 4.1702(6):
"(1) An employee of a political subdivision of this state whose rights under this act are violated or who is subjected to any of the actions prohibited by section 5 may make a complaint to that effect with the department of labor. The department shall hold hearings to determine whether a violation has occurred. If a violation has occurred, the department shall so state on the record and may order the issuance of back pay and reinstatement as an employee for a person whose rights were violated.
"(2) Upon motion by the department to the circuit court, the court may issue an injunction to enforce the order of the department.
"(3) The department of civil service shall promulgate rules for hearing alleged violations of this act by a state employee.”
In short, the act permits civil servants to engage in certain types of political activities in their off-duty time. Further the act prevents any unwilling employee from being coerced into engaging in political activity.
Believing its rules are constitutionally mandated and believing the Legislature is without power to legislate in the area of civil service employment, the commission has ignored the statute and continues to enforce Rules 7.1 and 7.3.
No one challenges the broad authority of the commission to regulate on-duty activities of classified employees and to regulate those off-duty activities which actually conflict with job performance. While we recognize that off-duty political activity may affect job performance in some cases, we do not believe that the commission has the authority to impose a blanket ban on all political activities by all civil service employees. Insofar as the commission rules ban all off-duty political activity, they are impermissibly overbroad and invalid.
It is clear that the state cannot require an individual to relinquish rights guaranteed him or her by the First Amendment as a condition of public employment. Abood v Detroit Board of Education, 431 US 209, 233-235; 97 S Ct 1782; 52 L Ed 2d 261 (1977), Elrod v Burns, 427 US 347, 357-360; 96 S Ct 2673; 49 L Ed 2d 547 (1976). It is equally clear, according to Kusper v Pontikes, 414 US 51, 56-57; 94 S Ct 303; 38 L Ed 2d 260 (1973), that,
"There can no longer be any doubt that freedom to associate with others for the common advancement of political beliefs and ideas is a form of 'orderly group activity’ protected by the First and Fourteenth Amendments. NAACP v Button, 371 U.S. 415, 430 [83 S Ct 328; 9 L Ed 2d 405 (1963)]; Bates v Little Rock, 361 U.S. 516, 522-523 [80 S Ct 412; 4 L Ed 2d 480 (1960)]; NAACP v Alabama, 357 U.S. 449, 460-461 [78 S Ct 1163; 2 L Ed 2d 1488 (1958)]. The right to associate with the political party of one’s choice is an integral part of this basic constitutional freedom. Williams v Rhodes, 393 U.S. 23, 30 [89 S Ct 5; 21 L Ed 2d 24 (1968)]. Cf. United States v Robel, 389 U.S. 258 [88 S Ct 419; 19 L Ed 2d 508 (1967)].”
When political activities of a public employee are unrelated to his or her job responsibilities, the employee must be treated as a member of the "general public” for the purpose of adjudicating First Amendment rights. Phillips v City of Flint, 57 Mich App 394, 401-402; 225 NW2d 780 (1975), citing Pickering v Board of Education of Twp High School Dist 205, Will County, 391 US 563; 88 S Ct 1731; 20 L Ed 2d 811 (1968).
There is no question that the commission is granted broad plenary powers to regulate internal civil service procedures and that such procedures are not subject to legislative controls. Viculin v Dep’t of Civil Service, 386 Mich 375, 393-394; 192 NW2d 449 (1971), Welfare Employees Union v Civil Service Comm, 28 Mich App 343, 352; 184 NW2d 247 (1970), lv den, 384 Mich 824 (1971). It is quite another question, however, whether the commission may totally deprive an employee of fundamental First Amendment rights. We conclude that it is beyond the authority of the commission to restrict an employee’s political activity when that activity is not engaged in during working hours and does not actually affect job performance.
When First Amendment rights are being restricted, the state must justify the restriction by demonstrating a "compelling state interest”. Advisory Opinion on Constitutionality of 1975 PA 227 (Questions 2-10), 396 Mich 465, 481; 242 NW2d 3 (1976). All parties concede that the state has a compelling interest in restricting political activities of civil servants while on the job. Plaintiffs readily agree that the commission may validly prohibit political activity during working hours. The Legislature has expressly provided that the allowable political activities must be limited to off-duty hours. MCL 15.404; MSA 4.1702(4).
The commission cannot demonstrate a compelling interest to uphold Rules 7.1 and 7.3 which impose a sweeping prohibition on all political ac tivities of civil servants. Public employment cannot be conditioned on relinquishing one’s right to participate in the political process. Abood, supra, Elrod, supra, Kusper, supra. As the trial judge noted, "It is the purpose of the Commission to keep politics out of the classified state service, not to keep classified employees out of politics.” Absent a showing by the commission that an employee’s off-duty political activities actually affect his or her job performance, the commission is powerless to abridge an employee’s fundamental constitutional rights.
Plaintiff Cusack’s situation highlights the need for a case-by-case approach rather than a blanket ban on all political activity. At the time of Mr. Cusack’s discharge, he was classified as an "Attendant Nurse 04”. It cannot be seriously contended that an attendant nurse can carry out his or her duties in a Republican or Democratic way. If, for example, Mr. Cusack’s campaign activities cause him to miss work or neglect his job duties, then the commission would have grounds to discharge him. But so long as plaintiff Cusack is carrying out his assigned duties during working hours, the commission has no interest in prohibiting his off-duty political activity.
We are certainly aware that there are situations, particularly involving high-ranking administrators, where partisan activities could conflict with job performance. However the potential for such conflicts does not justify a blanket ban on the large number of classified employees who do not exercise policy-making or discretionary authority. The commission is clearly empowered to promulgate rules which deal with classified employees whose political activities actually affect job-performance.
Defendant’s reliance on MacLellan v Dep’t of Corrections, 373 Mich 448; 129 NW2d 861 (1964), and Groehn v Corporation & Securities Comm, 350 Mich 250; 86 NW2d 291 (1957), is misplaced. Neither case involves an analysis of the commission’s power to abridge constitutional rights; MacLellan deals with a civil service requirement that an employee obtain prior written permission before engaging in "supplementary employment” and Groehn deals with the propriety of a "deputy commissioner in charge of regulation of real-estate practices” engaging in real estate transactions. If anything, MacLellan and Groehn indicate that whether an employee’s off-duty activities interfere with job performance must be evaluated on a case-by-case basis.
Defendant’s reliance on Broadrick v Oklahoma, 413 US 601; 93 S Ct 2908; 37 L Ed 2d 830 (1973), is also misplaced. In Broadrick the Court upheld an Oklahoma statute which prohibited state employees from engaging in political activity. Both Broadrick and its companion case, United States Civil Service Commission v National Association of Letter Carriers, AFL-CIO, 413 US 548; 93 S Ct 2880; 37 L Ed 2d 796 (1973) (upholding prohibitions on political activities by Federal employees) rely heavily on the balance struck by the legislative and executive branches that the efficiency of the civil service requires limitations on political activities by government employees. In the instant case the Michigan Legislature and executive have concluded the government has no interest in restricting First Amendment rights of civil servants in their off-duty hours. We find it difficult to say there is a compelling state interest in prohibiting the exercise of First Amendment rights when Michigan lawmakers have expressly declined to assert such an interest.
We conclude that insofar as Rules 7.1 and 7.3 impose a blanket ban on all off-duty political activity, they are impermissibly overbroad. While the commission is granted broad powers within its sphere of authority, it does not possess the power to abridge fundamental rights without a showing that an individual’s off-duty political activities have an actual effect on job performance.
Because the commission is without authority to impose a blanket ban on off-duty political activity, the Legislature has not encroached on the jurisdiction of the commission by the enactment of 1976 PA 169. We conclude that the protection of civil servants’ rights to speech and political association is a proper subject of legislative concern. While the act protects the rights of those who wish to engage in off-duty political activity, it also protects the rights of those who do not. The act does not interfere with the commission’s duty to prohibit on-duty political activity and to insure that partisan considerations do not impair the efficiency of the civil service. Further the commission has the power to restrict off-duty political activity which adversely affects the actor’s job performance or that of his co-employees or even his superiors. This might be achieved by an employee’s aspiring to and running for elective office with intimidating or inimical effect upon some segment of the service directly or indirectly connected. A determination of whether such off-duty activities have an impact on job performance must, however, be made on a case-by-case basis.
We reverse that portion of the lower court ruling which dismissed plaintiff Cusack’s complaint. While the trial judge may be correct in his observation that political campaigns require a personal, emotional and physical commitment, the judge was incorrect in concluding that campaign activities per se conflict with job performance. Whether there is an effect on job performance must be evaluated on a case-by-case basis. Because plaintiff Cusack was terminated under an overbroad commission rule and without any showing that his activities affected his job performance, we reverse and remand.
Affirmed in part; reversed in part; remanded for further proceedings._
Although plaintiff Cusack was discharged before the effective date of 1976 PA 169, he is entitled to reinstatement of his complaint because he was discharged under impermissibly overbroad commission rules. A determination that the rules are overbroad is not dependent on the validity of 1976 PA 169. | [
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D. F. Walsh, J.
Plaintiff appeals entry of summary judgment for defendant, GCR 1963, 117.2(3). Plaintiff had sought damages from defendant for breach of an employment contract.
It was plaintiffs allegation that on February 18, 1975, April 13, 1975, and May 5, 1975, defendant, by and through its executive vice president, entered into an agreement whereby plaintiff was to be employed by defendant in a position of responsibility equal to or greater than his then current position with defendant. Such employment was to be considered new employment rather than a continuation of existing employment. Plaintiffs existing employment was scheduled to and did end in the summer of 1975. Plaintiff expected the new employment to be permanent but terminable at the will of defendant. On May 21, 1975, after plaintiff had passed up two comparable job opportunities with other corporations, plaintiff was advised that his employment with defendant was terminated. He had not yet begun to work for defendant in the promised new position.
The trial court granted summary judgment for defendant, ruling that, by passing up other employment opportunities, plaintiff had merely prepared himself for assuming the new position with defendant. Because the employment was to be terminable at will, plaintiffs claim for damages was rejected. The trial court found no significance in the fact that plaintiff had never been given an opportunity to commence work in the new position.
On appeal plaintiff first claims that the trial court improperly found that there was no genuine issue of material fact. GCR 1963, 117.2(3). We agree with the trial court that there was no evi-dentiary support for plaintiffs claim that material facts were disputed. The court relied solely on plaintiffs complaint and deposition testimony. By deposition plaintiff himself testified that the employment contract was to be terminable at the will of defendant corporation. He was bound by this testimony. Gamet v Jenks, 38 Mich App 719, 726-727; 197 NW2d 160, 164 (1972). In light of this admission the trial court properly disposed of the matter by summary judgment. GCR 1963, 117.3.
Plaintiff also claims that the trial court erred in ruling that defendant was entitled to judgment as a matter of law. We find no error. Although plaintiff testified that he expected his employment to last for the rest of his "working days”, he also admitted that the job would be terminable at the will of the corporation. This admission is in accord with established authority which provides that contracts for permanent or life employment are considered indefinite hirings which, absent distinguishing features or consideration in addition to the services to be rendered, are terminable at the will of either party. Lynas v Maxwell Farms, 279 Mich 684; 273 NW 315 (1937), Adolph v Cookware Co of America, 283 Mich 561; 278 NW 687 (1938). Absent a claim of additional consideration passing from the employee to the employer or a claim that the employee’s discharge contravenes some settled public policy of this state, an employee serving under a contract of employment terminable at will has no cause of action for damages from wrongful discharge. Toussaint v Blue Cross & Blue Shield of Michigan, 79 Mich App 429; 262 NW2d 848 (1977).
The plaintiff in Lynas v Maxwell Farms, supra, sold his restaurant business so that he could assume his duties with the defendant company. It was understood that he was to have a permanent lifetime position with the defendant. When terminated approximately one year after taking his position with the company, the plaintiff sued to recover damages for breach of his contract of employment. The Michigan Supreme Court rejected the plaintiff’s claim that he had supplied additional consideration in selling his restaurant business. The plaintiff’s detriment, if any, in preparing himself to accept the new employment "was not mutually understood as being a part of the consideration” and "was only a necessary incident in placing himself in a position so that he might perform the contract”. Id. at 688-689. The Court ruled similarly in Adolph v Cookware Co of America, supra, where the action of the plaintiff in giving up his chiropractic practice Was found to be only a necessary incident to placing himself in a position to accept and perform under the employment contract and not a part of the consideration paid to the defendant for the contract.
Absent distinguishing features or additional consideration, we see no reason to recognize a cause of action if the terminable at will employee is never given an opportunity to commence employment. Logic dictates that the measure of damages cannot be any greater than that which would follow from a termination of the contract at the earliest possible time after the commencement of performance. See Songer v Mack Trucks Inc, 23 App Div 2d 544; 256 NYS2d 313 (1965).
The instant record contains no suggestion that any consideration, in addition to the rendition of services, flowed or would have flowed to defendant from plaintiff. Passing up other employment opportunities was merely preparatory to commencement of plaintiff’s new position with defendant. There is no suggestion that the parties understood that it was part of the consideration flowing to defendant from plaintiff in exchange for the offer of employment. Nor do we find any public policy grounds dictating that we make an exception to the usual rule as to terminable at will employment contracts.
Accordingly, we find no reversible error on the part of the trial court in entering summary judgment for defendant. That judgment is affirmed.
See, e.g., Sventko v The Kroger Co, 69 Mich App 644; 245 NW2d 151 (1976).
Compare Brawthen v H & R Block, Inc, 52 Cal App 3d 139; 124 Cal Rptr 845 (1975), where the California court noted that moving of the employee’s family and foregoing of other business and contracts would, if bargained for, constitute sufficient consideration to create a cause of action for breach of a contract for permanent employment.
Plaintiff’s reliance on Hackett v Foodmaker, Inc, 69 Mich App 591; 245 NW2d 140 (1976), lv den 399 Mich 823 (1977), is misplaced. In Hackett the jury could have found that the considerable expense incurred by the plaintiff in moving from California to Michigan to accept the defendant’s offer of employment was a part of the plaintiff’s performance which had been bargained for. Such bargaining would have removed the case from the general rule that contracts for indefinite or permanent employment are terminable at will. See Ebling v Masco Corporation, 79 Mich App 531; 261 NW2d 74 (1977). In addition, the Hackett defendant’s refusal to honor its offer of employment after the plaintiff’s participation in an antitrust suit against the defendant raised significant public policy considerations in favor of the plaintiff’s claim of wrongful discharge. We do not feel that the fact that the plaintiff in Hackett was not given an opportunity to commence performance under the contract, while considered "a distinguishing feature” by the Hackett panel, was dispositive in determining the existence of a cause of action for damages. Despite the indefinite term of the employment contract, the plaintiff in Hackett would have had a cause of action even if discharge had come after his performance under the contract had begun. | [
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Per Curiam.
The present action arose out of an accident which allegedly occurred on July 6, 1974. In their first amended complaint, plaintiffs alleged that decedent, Mr. Schaal, suffered a fatal injury when defendant Jeffrey Craig, the driver of the car in question, which was owned by defendant Donald Bauer, suddenly started or jerked the parade float on which the decedent was riding and which was being towed by the car, causing Mr. Schaal to fall from the float, land on his head and sustain fatal injuries. Plaintiffs alleged that defendant Bauer was liable on a theory of negligent entrustment of his automobile to Craig; that defendant Craig was liable for negligent operation of the automobile; and that defendant McMullin was liable for serving alcoholic beverages to plaintiffs’ decedent in her bar when he was already intoxicated, in violation of the dramshop act, MCL 436.22 et seq.; MSA 18.993 et seq.
Trial to a jury began on December 13, 1976, but proceeded only through plaintiffs’ opening statement, at which time defendants’ motions for directed verdicts were granted. The trial court also denied plaintiffs’ motion for a voluntary dismissal without prejudice. Plaintiffs appeal as of right, alleging that the trial court erred in granting defendants’ motions while denying plaintiffs’ motion.
In his opening statement, counsel for plaintiffs stated that he intended to show that defendant Craig was negligent, not in the manner in which he operated the automobile, but in permitting plaintiffs’ decedent to get on the float in an intoxicated condition. Counsel further stated that plaintiffs would show, not that decedent was served in the Spa Bar while intoxicated, but that defendant McMullin gave a six-pack of beer to defendant Craig, who permitted decedent to drink some of that beer.
At the close of plaintiffs’ opening statement, all defendants moved for directed verdicts, alleging surprise. Counsel for plaintiffs admitted that his intended proofs were at variance with the complaint, and that he had no evidence to offer in support of the theories pled. However, he asked that the trial court dismiss the complaint without prejudice to permit plaintiffs to reinstitute the lawsuit, apparently with proper pleadings. Subsequently, on January 4, 1977, plaintiffs moved to set aside the directed verdicts, on grounds that the court should have given them an opportunity to amend their pleadings. The trial court denied this motion as well.
We think the trial court acted properly, and affirm.
The grant or denial of a motion for voluntary dismissal after a responsive pleading has been filed is within the discretion of the trial court, GCR 1963, 504.1. However, the court should dismiss an action only if no prejudice to defendant will result. This Court discussed voluntary dismissal in African Methodist Episcopal Church v Shoulders, 38 Mich App 210, 212; 196 NW2d 16 (1972):
"Plaintiffs argue that the grant or denial of a voluntary dismissal is within the sound discretion of the trial judge. Roberson v Thomas (1968), 13 Mich App 384 [164 NW2d 544]. We agree; however, in exercising that discretion the trial judge is to weigh the competing interests of the parties along with any resultant inconvenience to the court from further delays. Granger v Lundberg (1971), 32 Mich App 462 [189 NW2d 14]. Normally, such a motion should be granted unless defendant will be legally prejudiced as a result. Durham v Florida East Coast Railway Co. (CA 5, 1967), 385 F2d 366. As the purpose of GCR 1963, 504.1(2) is to protect defendant from the abusive practice of dismissal after much time and effort has been put into a lawsuit, any dismissal should be on terms and conditions which protect defendant. See American Cyanamid Co v McGhee (CA 5, 1963), 317 F2d 295.”
In the case at bar defendants, having invested considerable time and money in preparing to defend against the causes of action pled, would be subjected to further expense in defending a new cause of action if the court had granted plaintiffs’ motion for dismissal without prejudice. We find no abuse of discretion in refusing to dismiss without prejudice in this case.
Dismissing an action or directing a verdict at the close of a plaintiff’s opening statement is not looked upon with favor by the courts, Ambrose v Detroit Edison Company, 380 Mich 445; 157 NW2d 232 (1968). In the instant case, however, counsel for plaintiffs sketched a completely different cause of action in his opening statement than was set forth in the pleadings, and freely admitted that he could offer no proofs on the theory pled. In such circumstances, it is clear that there existed no issue of fact for the jury’s determination, and a directed verdict was proper, cf. Tait v Nash, 27 Mich App 446; 183 NW2d 591 (1970).
As to the claim that the trial court should have permitted plaintiffs to amend their complaint, we note that no motion to amend appears on the record of trial. Moreover, the trial court would have been correct in denying a motion to amend even if made on the day of trial, for defendants were undeniably surprised by plaintiffs’ new theory, offered only after time and effort had been expended in extensive discovery in preparation for defending against the theories pled, cf. Ball v Render, 64 Mich App 148; 235 NW2d 90 (1975).
Affirmed. Costs awarded to defendants. | [
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