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T. M. Burns, J.
Plaintiff Jo Anne Taggie was rendered a permanent paraplegic when she was struck by falling rocks in Tahquamenon State Park on July 4, 1975. She and her husband, plaintiff Ben Taggie, filed a complaint and eventually an amended and second amended complaint seeking to impose liability for her injury on the Department of Natural Resources under several theories. None of the complaints have been answered. Instead, the defendant interposed the defense of governmental immunity. The Court of Claims dismissed the suit on that basis. We reverse.
I
The Court of Claims had initially refused to dismiss the complaint finding that plaintiff had properly pled the existence of a nuisance in fact. On the DNR’s motion for rehearing, the trial court reversed its earlier conclusion, although troubled by the proposition, and found that only a claim of nuisance which resulted in the taking of private property or a trespass on private property would survive a properly pled claim of governmental immunity. Buddy v Dep’t of Natural Resources, 59 Mich App 598; 229 NW2d 865 (1975), and Gerzeski v Dep’t of State Highways, 68 Mich App 91; 241 NW2d 771 (1976), were cited in support of dismissal.
Recent Supreme Court decisions make it clear that the trial court’s decision was incorrect. In Gerzeski v Dep’t of State Highways, 403 Mich 149; 268 NW2d 525 (1978), and Rosario v City of Lansing, 403 Mich 124; 268 NW2d 230 (1978), the Court attempted to clarify the judicially created nuisance exception to governmental immunity. No opinion in either case was signed by a majority of the justices, but five justices would agree that governmental immunity is not a bar to a claim based on an intentionally created nuisance in fact. See, Affiliated FM Ins Co v Michigan, 86 Mich App 203; 272 NW2d 239 (1978).
Rosario is controlling here. Like the present case, Rosario involved a nuisance claim which was dismissed without taking evidence. Justice Moody stated that the pleadings in this type of case must be liberally construed and concluded the allegation that the City of Lansing had "refused” to replace a manhole cover or take other remedial action was a sufficient allegation of intentional nuisance in fact to avoid summary dismissal. 403 Mich at 143-144.
The condition which plaintiffs claim was a nuisance in this case resulted from the convergence of two circumstances which also bring it within the intentional nuisance classification. According to the complaint, the defendant knew that previous rockslides had occurred in the area in which plaintiff was injured and that future rock slides would occur, but did not take any steps to make the area safer, either by removing the offending rocks or keeping tourists out of this area. At the same time, the defendant created an appearance of safety by the use of diagrams, maps, stairs and trails which led these plaintiffs, and other tourists, to the danger area in ignorance of the risk. It is knowledge of these facts which may bring the nuisance within the intentional classification. Rosario, 403 Mich at 143, n 2. As a question of pleading, the complaint is sufficient to avoid dismissal. Whether it can be factually supported is a question which is not properly before us at this time.
The court erred in dismissing the nuisance count of the complaint.
II
The trial court dismissed plaintiff Ben Taggie’s derivative claim for loss of consortium because of a belief that derivative claims could not be maintained in the Court of Claims. The trial court’s rationale was based on Dillon v Secretary of State, 61 Mich App 588; 233 NW2d 96 (1975), lv den, 397 Mich 812 (1976). Dillon prohibited or limited payment of certain derivative claims under the Motor Vehicle Accident Claims Act, MCL 257.1101 et seq.; MSA 9.2801 et seq., because of the specific language of that act. It does not control this case.
The trial court and defendant seem to base their position on the erroneous assumption that Mrs. Taggie’s claim, on which the husband’s claim is dependent, is somehow controlled by the governmental immunity statute, MCL 691.1407; MSA 3.996(107). But, as Justice Fitzgerald makes clear through his opinion in Rosario,. 403 Mich at 131, nuisance as an exception to governmental immunity is a judicially created exception and is controlled solely by the case law. There is no rule in our cases which prohibits appending a claim for loss of consortium to a claim based on nuisance. The trial court erred in dismissing plaintiff Ben Taggie’s claim for loss of consortium.
Ill
At the time of the injury, plaintiffs were camping in the Tahquamenon Falls State Park. A fee was paid to the state for the use of the campsite. Based on these facts, plaintiff alleged a right to recover for personal injuries under a breach of contract theory. The trial court dismissed this claim.
The trial court’s action in this regard was correct. Assuming that some contractual relation arose between plaintiffs and the DNR under the "camper permit and receipt”, there is nothing in that document which would impose on defendant the duties claimed by plaintiffs in their complaint with regard to the site of the injury, which was some distance from the camping area.
Baatz v Smith, 361 Mich 68; 104 NW2d 787 (1960), and Clark v Dalman, 379 Mich 251; 150 NW2d 755 (1967), were properly applied by the trial court. The result suggested by those authorities is not changed by Mobil Oil Corp v Thorn, 401 Mich 306; 262 NW2d 651 (1977). The contract involved in Thorn contained a clause specifically requiring the defendant to make repairs. It was breach of the express contractual clause which led to the possibility of liability on a contract theory in Thorn. Here, plaintiffs claim no breach of an express contractual undertaking by defendant, but only a breach of an implied contractual duty. Such an action is not recognized by our courts. Plaintiffs’ remedy lies under the nuisance count of their complaint. Baatz v Smith, supra.
The dismissal of plaintiff’s claims based on nuisance and loss of consortium are reversed and the matter remanded to the Court of Claims for proceedings not inconsistent with this opinion. Costs to abide the final result. | [
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Per Curiam.
The defendant in a plea bargain agreement pled guilty on October 14, 1977, to passing three nonsufficient fund checks in ten days with intent to defraud, contrary to MCL 750.131a; MSA 28.326(1). The plea bargain provided for the people to dismiss a similar charge pending against defendant. This was performed. On December 2, 1977, defendant was sentenced to five years probation with the condition that the first six months be served in the county jail and, further, that defendant make restitution for $3,299.65 which included the three checks mentioned in the charge and many other checks. Defendant appeals as of right, claiming an inadequate factual basis and that the condition of restitution was unlawful and unreasonable.
The trial court elicited from defendant the factual basis in the following manner:
"THE COURT: Tell me what it was you did?
"THE DEFENDANT: I wrote three checks within— August 21st, the 23rd for the amounts of twenty-five dollars, $14.16 and $25.00 and I did not have the funds in the bank, sir.”
We determine that under the "inference” test of Guilty Plea Cases, 395 Mich 96; 235 NW2d 132 (1975), the factual basis was properly established.
The defendant secondly claims that the condition of restitution was unlawful and unreasonable in that he was required to pay back, in addition to the amounts in the checks mentioned in the charge, amounts for other nonsufficient fund checks which he passed. The principle permitting the court to require such repayment is set forth in the cases of People v Nawrocki, 8 Mich App 225; 154 NW2d 45 (1967), and People v Gallagher, 55 Mich App 613; 223 NW2d 92 (1974), lv den 393 Mich 766 (1974). This is in keeping with the principle of justice of restitution requiring the perpetra tor of the offense to pay back the entire amount obtained by his course of criminal conduct.
At the sentencing of defendant the following took place:
"THE COURT: Well, now, you stand here convicted by your plea of guilty to a charge of writing three nonsufficient checks in ten days; and I realize that that plea of guilty was entered as a result of a plea bargain with the prosecutor’s office for the dropping of some other charges; and an agreement on their part to recommend probation and some jail time . . . and no prison. As you probably know, the department of probation has recommended a prison sentence for you. In fact, they have recommended a maximum prison sentence for you.
"I find that you are nineteen years old, that you have no prior criminal record, that you wrote checks which have caused other persons to lose in excess of $3,700.00. Have you had an opportunity to go over this list of checks that have been.....
"MR. SHUMAR [defense attorney]: Your Honor, I don’t believe he went over the list of checks specifically. We are aware that they were — it was a large amount of checks outstanding.
"THE COURT: It has been recommended-it has been-
"DEFENDANT: There’s been some of that . . . have been — that went down.....
"THE COURT: . . . detailed to the Court that the amount is something in the neighborhood of $3,700.00.
* * *
"THE COURT: Okay. You are nineteen years old. I am going to place you on probation for a period of five years and, as a special condition of this probation, there is going to be a schedule for you to repay the money that you have stolen from others.
"I am also going to include, as an item of your probation, that you serve six months in the county jail. If the probation department wants that jail time served at the conclusion of your probation, I will consider that. I am going to consider what the probation department wishes to do. You have no established roots in this community; 11 [sic] am going to listen to the probation department as to restrictions that should be placed upon you in your movements.
"I must tell you, Luis, that I wasn’t particularly impressed with your acceptance of the five-year probation period; nor with your reaction to the fact that you would be expected to pay back this money. You are looking for an opportunity to prove to us that you have a right to stay out of prison. We want to give you that opportunity. It’s not going to be easy. It’s going to be a real tough period and you are going to be expected to get a job and go to work and start by paying back what you have taken from others that doesn’t belong to you. That’s the beginning. And, if you don’t make it, then you will have no one but yourself to blame.
"I want to be sure that I don’t send you to prison. The only person who is going to send you to prison is Rex Luis Seda-Ruiz.
"That’s all. You may sit down and I will talk to you later.”
The defendant now claims that he has not had an opportunity to look at all the checks that he is now required to make good by restitution. He now alleges that some are not his checks.
We rule that the proper course of action under the circumstances is to affirm the conviction but remand for an evidentiary hearing concerning the correct amount of restitution to be required of the defendant in accord with People v Nawrocki, supra, and People v Gallagher, supra.
Affirmed and remanded. We do not retain jurisdiction. | [
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M. F. Cavanagh, J.
Defendant was charged with and pled guilty to the offense of larceny in a building, MCL 750.360; MSA 28.592. He was sentenced to four years imprisonment with credit for time served, and appeals by right. For the purposes of this opinion, we adopt the further statement of facts and errors involved set out in the dissent.
We concur with our brother Allen that the errors claimed in regard to the plea-taking procedure lack merit. The conviction should be affirmed.
We disagree that the sentence too should be affirmed.
By a 1902 amendment of the Constitution of 1850, the Legislature was given the authority to establish indeterminate sentences. They did so by 1903 PA 136. The subsequent amendments indicate no departure from the indeterminate nature of the sentencing scheme. Nowhere can there be found specific statutory authority for a determinate sentence and, failing this, the sentence rendered in this case must fall.
The dissent makes a good argument for the literal interpretation of the language of MCL 769.8; MSA 28.1080, limiting its application to a person "convicted for the first time”. However, such an interpretation then renders meaningless MCL 769.10; MSA 28.1082 (second felony conviction), MCL 769.11; MSA 28.1083 (third conviction), and MCL 769.12; MSA 28.1084 (fourth conviction). In each of those subsequent sections the Legislature very clearly provided what the punishment could be for somebody convicted of subsequent felonies. It is interesting to note that even those subsequent sections, although increasing the allowable maximum, all provide for indeterminate sentencing. In other words, for the second conviction (MCL 769.10; MSA 28.1082) it is provided, "may be placed on probation or sentenced to imprisonment for a term not more than 1-1/2 times the longest term prescribed for a first conviction of such offense or for any lesser term in the discretion of the court”.
Furthermore, even assuming arguendo that the dissent’s reading of MCL 769.8; MSA 28.1080, is correct, GCR 1963, 785.8(3) requires the sentencing judge to "state the minimum and maximum sentence imposed by the court”. The literal language of the rule established by the Supreme Court, which would take precedence over inconsistent legislation in matters of practice and procedure, Buscaino v Rhodes, 385 Mich 474; 189 NW2d 202 (1971), People v Joker, 63 Mich App 421; 234 NW2d 550 (1975), clearly mandates an indeterminate sentence, without reference to number of previous convictions. At the very least, GCR 1963, 785.8(3) indicates the correct interpretation to be given the sentencing statute in issue.
The annotations are replete with citations which indicate that to charge someone as a second, third, or fourth offender a supplemental information must be filed and a trial had, if necessary, on that supplemental information. Upon conviction the specified penalty can be imposed. The dissent suggests that this can be done without any supplemental information and without any adjudication of any prior convictions. To do so, we are persuaded, would shortcut a legislative scheme designed to be implemented by the prosecutor. The Legislature has provided a relatively simple method for the prosecutor to reach a second, third, or fourth-time offender, and to increase his punishment. If the prosecutor elects not to so charge but instead simply charges as a first-time offender the only punishment authorized by the Legislature is an indeterminate sentence. The court cannot exceed this authority and the limitations specified in People v Tanner, 387 Mich 683; 199 NW2d 202 (1972), apply.
We accordingly vacate the sentence heretofore imposed and remand to the trial court for resen-tencing pursuant to the Tanner opinion.
V. J. Brennan, J., concurred.
1905 PA 184:1921 PA 259:1927 PA 175.
See MCL 769.13; MSA 28.1085, In re Brazel, 293 Mich 632; 292 NW 664 (1940), and People v Parker, 50 Mich App 537; 213 NW2d 576 (1973).
It is interesting to note that Tanner was 23 at the time he was sentenced for manslaughter, which was taken as an included offense of the crime charged, first-degree murder. Tanner had two prior convictions: attempted larceny from a building and unarmed robbery. Records and Briefs, Supreme Court, 4 December term 1971, Defendant-Appellant’s Brief, 3 and Appendix, 4a. | [
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D. E. Holbrook, P.J.
Plaintiff-appellee filed a complaint August 7, 1974, in Oakland County Circuit Court, alleging various misdeeds on the part of defendants-appellants with respect to the operation of a Lansing area restaurant owned and operated by the parties herein. A default judgment was granted against defendants when they failed to answer. Pursuant to a stipulation entered by the parties on October 2, however, the defendants were allowed to answer the complaint. Simultaneously with their answer the defendants filed a demand for a jury trial.
Plaintiff amended his complaint on two separate occasions, with each complaint alleging misuse of corporate funds by the defendant majority shareholders, breach of the plaintiff’s employment contract which conferred upon him the right to manage the restaurant which was the subject matter of the corporation, violation of the majority shareholders’ fiduciary duties with respect to the said corporation, and breach of the parties’ oral agreements. Defendants’ answer denied the existence of any oral agreements, denied any breach of fiduci ary duty, and also controverted plaintiffs contentions of sole managerial authority.
Plaintiff sought various equitable remedies, including the appointment of a receiver and an accounting of profits. He sought to enjoin the defendants from removing him either from the corporate board or from his managerial position with the restaurant and also sought to prevent the defendants from modifying the corporation’s Federal tax subchapter S status. Plaintiff also sought any other equitable and proper relief which the court might deem justified. Plaintiff’s subsequent amended complaints also sought enforcement of the alleged oral agreement in which the plaintiff claimed that the individual defendants had promised:
"[T]hey would not take advantage of him and that they would not take any funds out of the Corporation except their share of the profits; and Clyde Connor further promised him that the Corporation would remain a "Sub-Chapter S” Corporation so that the Plaintiff would be assured of his one-third (1/3) of the profits, and that Plaintiff would have sole control in managing and running the Number Four Restaurant.”
Defendants based their demand for a jury trial upon the plaintiff’s request for enforcement of the alleged oral agreements. Plaintiff contested defendants’ jury demands, asserting that the defendants were not entitled to trial by jury in an action seeking only equitable remedies. Characterizing the plaintiff’s case as entirely equitable, the trial court held that the defendants were not entitled to jury trial on any issue.
By interlocutory order the trial court temporarily enjoined the individual defendants from removing plaintiff from his position on the defendant corporation’s board or from his position as manager of the parties’ restaurant. The court further ordered the defendants to pay the plaintiffs unpaid salary and profits in the amount of $15,708.76, which amount had accrued during the pendency of the litigation while plaintiff continued to perform his employment duties. Defendants’ attempts to appeal these interlocutory orders were denied.
Defendants also sought to disqualify the circuit judge to whom this case had been assigned, alleging prejudice resulting from and evidenced by that judge’s verdict entered in an earlier, similar case involving the individual defendants. This motion was heard by another Oakland County circuit judge, who found that the instant case, which had been assigned under local court rules, because of its similarity in subject matter to the earlier case, was not based upon such similar facts as to require assignment to a single circuit court judge. Nevertheless, it was held that defendants’ delay of 26 months in seeking reassignment rendered their request untimely. Reassignment was therefore denied. The assigned judge began taking proofs in the case during February of 1975. Testimony was interrupted by a default judgment entered against the defendants in April of 1976; this judgment was later set aside and testimony was heard once again beginning in January of 1977.
Testimony was taken first with respect to the value of the defendant corporation. One appraiser testified to an approximate worth of $385,900, while the second testified that the value of the restaurant business was only approximately $200,-000. _
Testimony was then taken with respect to plaintiff’s claims of misconduct by individual defendants. Plaintiff alleged that his employment agreement was violated when the individual defendants independently hired their son and a nephew to managerial positions. Plaintiff contended that these relatives performed few, if any, services of value for the corporation. Further, plaintiff offered evidence that the individual defendants, again without calling a board meeting, opened an office in Lansing and improperly charged its expenses in part to the parties’ restaurant operation, with little or no benefit being received by the defendant corporation from this office.
Plaintiff contended that all proceeds from candy and gum sales at the parties’ restaurant were improperly diverted to a fund created for the individual defendants’ children’s education, that the individual defendants improperly charged the corporation for the cost of maintaining a phone in their home, that the son and nephew were each provided with a car improperly charged to the defendant corporation, that the individual defendants utilized the profits of the corporation to pay another relative’s air fare from Arizona, that the defendants improperly deducted their legal fees in defending the instant action from the corporation’s profits, and finally, that a secretary performing bookkeeping services for the individual defendants in their home was improperly placed on the restaurant payroll. Plaintiff’s testimony was supported in part by the testimony of one of the restaurant’s employees but contradicted by testimony offered by the individual defendants. Ultimately the trial court ruled in favor of plaintiff’s allegations of fraudulent conduct on the part of the individual defendants, decreed a dissolution of the corporate defendant, and awarded the plaintiff damages in the amount of $167,896.87. This amount included accrued wages, attorney’s fees of $2,500, the plaintiff’s one-third share of the defendant corporation, whose assets were increased by the court’s judgment finding the individual defendants liable to the corporation for some $64,000 in improperly diverted profits, and $50,000 in exemplary damages.
The individual defendants appeal from the trial court’s ruling, alleging several errors. The defendants claim that it was error to refuse to reassign this case to a different judge after hearing the defendants’ allegations of prejudice. The decision that the defendants’ delay of 26 months in seeking reassignment was grounds for denial of this motion is clearly not an abuse of discretion and this issue may be dismissed summarily. Similarly, the trial court’s final order allowing dissolution of the corporation and distribution of corporate assets if the plaintiff was not timely satisfied by the individual defendants was not error, given the broad authority granted to the circuit court under MCL 450.1825; MSA 21.200(825), which provides that:
"(1) The circuit court of the county in which the registered office of the corporation is located may adjudge the dissolution of, and liquidate the assets and business of, a corporation, in an action filed by a shareholder when it is established that the acts of the directors or those in control of the corporation are illegal, fraudulent or wilfully unfair and oppressive to the corporation or to such shareholder.
"(2) In an action filed by a shareholder to dissolve the corporation on a ground enumerated in subsection (1), the circuit court upon establishment of such ground may make such order or grant such relief, other than dissolution, as it deems appropriate, including, without limitation, an order providing for any of the following:
"(a) Cancellation or alteration of a provision contained in the articles of incorporation, or an amendment thereof, or in the bylaws of the corporation.
"(b) Cancellation, alteration or injunction against a resolution or other act of the corporation.
"(c) Direction or prohibition of an act of the corporation or of shareholders, directors, officers or other persons party to the action.
"(d) Purchase at their fair value of shares of a shareholder, either by the corporation or by the officers, directors or other shareholders responsible for the wrongful acts.”
The trial court also did not err in providing that the judgment could be enforced either by execution or by garnishment.
The defendants next argue that the award of $2,500 in attorney’s fees to the plaintiff was improper and unauthorized. Defendants-appellants do not challenge the court’s general award of costs and attorney’s fees as provided by GCR 1963, 111.6, but only the $2,500 amount. Under MCL 600.2405; MSA 27A.2405, attorney’s fees are to be taxed and awarded as costs only as authorized by statute or court rule. Such awards are not allowed absent an applicable statute, court rule or recognized exception. State Farm Mutual Automobile Ins Co v Allen, 50 Mich App 71; 212 NW2d 821 (1973), City of Center Line v 37th District Court Judges, 74 Mich App 97; 253 NW2d 669 (1977), lv gtd, 401 Mich 810 (1977).
In Kittermaster v Brossard, 105 Mich 219, 221; 63 NW 75 (1895), the Michigan Supreme Court rejected the argument that "a court of equity may impose a reasonable solicitor’s fee”. Nevertheless, rule 111.6 specifically provides that reasonable attorney’s fees may be awarded to compensate a party who is required to put to proofs any matter which is improperly and unreasonably alleged or denied. The trial court stated in its opinion that the:
"[Extraordinary attorney fee of $2500 was ordered because of the extraordinary burden placed on the plaintiff despite the fact that the individual defendants admitted ultimately that the corporate profits due to the plaintiff were undistributed and had not been paid.”
Thus the court’s award of fees is in compliance with rule 111.6; it is not unreasonable.
The defendants also raise two additional errors which are not so easily disposed of. First, the defendants claim that the trial court’s refusal to grant the defendants’ demand for a jury trial, at least as to the issue of the existence and enforcement of the oral agreements, was error. As noted above, at the circuit court level the plaintiff opposed this demand alleging that the instant matter was entirely equitable; and the trial court held for the plaintiff on that ground. On appeal the plaintiff also questions the timeliness of the defendants’ demand. The plaintiff stipulated that the defendants might file a late answer in this matter, however, and the defendants promptly requested a jury trial following this late answer. Upon the authority of Nelson v Runnels, 31 Mich App 163; 187 NW2d 530 (1971), the defendants’ request for a trial by jury was therefore timely. We also find, however, that the defendants suffered no prejudice as a result of the trial court’s denial of trial by jury on the issue of the existence of the alleged oral contract; after close inspection of the trial court’s opinion and judgment in this matter, we find that the court under the authority of MCL 450.1825, supra, held against the defendants solely on the basis of the plaintiff’s equitable claims. The defendants alleged no rights arising out of the claimed oral agreements and in fact denied the existence of any such agreements. Therefore, since the court did not utilize these agreements as a foundation to award relief to the plaintiff, we are constrained to hold that the trial court’s failure to impanel a jury to hear those claims had no prejudicial effect upon the defendants whatsoever and was not reversible error.
In order that we might not be misunderstood we hasten to add that we fully recognize the defendants’ right to a jury trial on all legal issues joined in the instant case. See 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), pp 412-423. Further, we are aware that a separate panel of the Court of Appeals in Hackett v Connor, 58 Mich App 202; 227 NW2d 292 (1975), under somewhat similar circumstances, remanded the entire matter to circuit court in order to protect the defendants’ right to jury trial on legal issues. In Hackett the Court found that remand was necessitated by the trial court’s denial of defendants’ counsel’s motion for a continuance pending further discovery, which concern is not at issue here. That error alone required that the case be remanded to the circuit court. Further, the Court in Hackett found that the trial court’s judgment for the plaintiffs rested primarily upon "fraudulent breaches” of alleged oral agreements. The judgment reached by the trial court in the instant matter does not rest upon breach of any oral agreements. Rather, as will be seen below, the instant decision was grounded upon the fraudulent conduct of the individual defendants in breach of their fiduciary duties, and upon the trial court’s interpretation of the parties’ written agreements. Hackett does not control, therefore, and finding no prejudice to have resulted to defendants from the trial court’s denial of trial by jury on the legal issue alleged in the plaintiffs complaint, we refuse to remand this matter to the trial court for trial by jury.
Finally, the defendants argue that there was insufficient evidentiary basis for the court to find a breach of fiduciary duty or to support the court’s award of damages in the amount of $167,896.87. It is beyond dispute that in Michigan, directors and officers of corporations are fiduciaries who owe a strict duty of good faith to the corporation which they serve. See 6 Callaghan’s Michigan Civil Jurisprudence (2d ed), § 79, p 208, § 117, p 291. The same is true of majority shareholders, since:
"[T]he law requires the majority in control of the corporation the utmost good faith in its control and management as to the minority and it is the essence of this trust that it must be so managed so as to produce to each shareholder, the best possible return upon his investment.” 6 Callaghan, supra at § 166, p 365.
See also 19 CJS, Corporations, § 764, p 112, § 768, p 123, § 781, p 150, § 786, p 161, § 821, p 223, Thomas v Satfield Co, 363 Mich 111; 108 NW2d 907 (1961), L A Young Spring & Wire Corp v Falls, 307 Mich 69; 11 NW2d 329 (1943), and Thompson v Walker, 253 Mich 126, 134-135; 234 NW 144 (1931).
This Court must review the findings with respect to the plaintiffs equitable claims de novo, with due deference being given to the findings of the trial court under Barnett v International Tennis Corp, 80 Mich App 396, 404; 263 NW2d 908 (1978). In other words, this Court must sustain the findings of the court below unless it becomes convinced, upon review of the evidence, that had it heard the evidence in the first instance it would have been compelled to rule contrary to the ruling actually made by the trial court. The trial court in its holdings points to evidence supporting each of the following items of improper diversion of corporate funds: payment of corporate funds to defendants’ son and to their nephew with no service of value being rendered to the corporation in return, and without the consent of the plaintiff, a member of the corporation’s board of directors; the payment of expenses, including rent, for an office in Lansing which was of little or no benefit to the corporation, also without plaintiff’s consent; improper use of restaurant facilities to generate "gum and mint money”, which money did not accrue to the benefit of the corporation; and finally, payment of corporate funds for unauthorized legal fees and accounting services generally incurred entirely for the benefit of the individual defendants. Further, there is ample evidence to support the court’s determination of the amount of damages suffered by the plaintiff as a result of this misconduct. After reviewing the evidence in support of these findings, we are not left with a firm conviction that the trial court erred in its decision in favor of plaintiff. As the Court stated in Holden v Lashley-Cox Land Co, 316 Mich 478, 484; 25 NW2d 590 (1947):
"It is apparent that a corporation so conducted could not accomplish the purposes for which it was organized, and it was therefore the duty of its directors to wind up its affairs. * * * Their failure to do so, coupled with improper payments to themselves, was a breach of trust imposed in them by the stockholders, and, hence, a constructive fraud. Plaintiff stockholders are entitled to equitable relief to the extent of the appointment of a liquidating receiver, a dissolution of the corporation, and distribution of the assets to its stockholders.” (Citations omitted.)
See also Veeser v Robinson Hotel Co, 275 Mich 133, 137-138; 266 NW 54 (1936).
The individual defendants’ behavior in managing the corporation’s business affairs evidences a significant degree of nepotism, and an incredibly callous disregard for the financial well-being of the defendant corporation and its minority shareholders. The trial court is upheld.
Affirmed.
P. J. Marutiak, J., concurs in this opinion, except as to the matter of $2,500 attorney’s fees.
These values do not include real property, which was leased by the defendant corporation from a second corporation of which the individual defendants were majority shareholders.
In support of the lower court’s interpretation of the parties’ written agreements, we cite with approval 5 Callaghan’s Michigan Civil Jurisprudence (2d ed), § 171, p 743:
"In construing a written instrument, equity always attempts to get at its substance and to ascertain, uphold and enforce the rights and duties that spring from the real intention of the parties, and, in doing so, a court of equity will look into all circumstances under which the instrument was made in order to determine the proper meaning of the transaction, although words of the instrument will not be changed.” (Footnote omitted.)
The court further found these hirings by the defendants to be contrary to the written contract of employment between the plaintiff and defendants. | [
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Danhof, C.J.
On September 21, 1977, defendant was convicted by a jury of armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). This case arose out of an incident occurring on March 19, 1977, in which two employees of Johnny’s Superette, Jeries Qumsyeh and Margaret Fox, were robbed at gunpoint by two men. On November 8, 1977, defendant was sentenced to a term of 10 to 20 years imprisonment on the armed robbery conviction and to a two-year term on the felony-firearm conviction. These sentences are consecutive, see MCL 750.227b(2); MSA 28.424(2). Defendant appeals as of right.
Defendant’s first claim on appeal is that the trial court erred reversibly by allowing the prosecutor to introduce into evidence testimony concerning other criminal acts by defendant. Margaret Fox, one of the victims, testified at trial and identified defendant as one of the men involved in the robbery. She also identified defendant, over defendant’s objection, as the same person who had committed an earlier robbery of the same store on February 22, 1977. The prosecutor argues that this evidence is admissible because the identity of the robber was in issue and this testimony tended to support the witness’s identification of the defendant by showing that she had another opportunity to observe the defendant under similar circumstances.
The general rule is that evidence of a distinct, unrelated crime is not admissible in a trial of a defendant charged with the commission of a different criminal offense. There are, however, several well accepted exceptions to this general rule, see MCL 768.27; MSA 28.1050. One common law exception to this rule is when the evidence offered tends to prove the identity of the person who committed the crime for which defendant is on trial, People v Spillman, 399 Mich 313; 249 NW2d 73 (1976), see also, People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976), People v Wilkins, 82 Mich App 260; 266 NW2d 781 (1978).
In Spillman, supra, a proprietor of a bar was assaulted by armed men and his car was driven away. This incident took place while the proprietor was attempting to enter his automobile after closing his bar. At defendant’s trial, over objection, the proprietor testified that he had also observed the defendant in his bar approximately two weeks before the date in question while the defendant was in the process of perpetrating another armed robbery. On appeal, the Supreme Court reinstated defendant’s conviction stating:
"We believe that the disputed evidence fits within this common law exception to the general rule. The prior viewing of the defendant wearing the same coat, holding the same handgun, occurring under similar circumstances, tends to make this witness’ identification of defendant more credible.” Spillman, supra, at 320.
In the instant case, the identity of the robber was also in issue. The witness’s viewing of the defendant during a robbery approximately one month before this robbery, in the same store under similar circumstances, tends to make this witness’s identification of the defendant more credible. Although the introduction of this testimony may have a prejudicial effect, the trial court did not err reversibly in finding that the probative value of this evidence outweighed its prejudicial effect and in allowing this testimony into evidence, Spillman, supra.
Defendant also claims that reversal is required because the prosecutor failed to produce two res gestae witnesses for trial as required by MCL 767.40; MSA 28.980. Defendant contends that the prosecutor should have produced George Isaac who was not present at the commission of the offense but who had relayed information to the police which implicated defendant in this crime. Defendant also claims that the prosecutor failed to exercise due diligence in attempting to locate and produce an unidentified customer who had entered the store just as, or immediately after, the robbers fled the store. At trial, a hearing was held on these issues. The trial judge found that Isaac was not a res gestae witness since he was not present during the commission of the crime. The trial judge also found that the production of this witness was excused because the prosecutor, after exercising due diligence, was unable to locate and produce him. The trial judge found that the production of the customer was excused because his identity was unknown and the prosecutor had no means by which to locate him.
The mandatory requirements for indorsement and production in MCL 767.40; MSA 28.980, apply only to res gestae witnesses, see People v Rimson, 63 Mich App 1; 233 NW2d 867 (1975), People v Harrison, 44 Mich App 578; 205 NW2d 900 (1973). "A res gestae witness is one who was an eyewitness to some event in the continuum of a criminal transaction and whose testimony will aid in developing a full disclosure of the facts surrounding the alleged commission of the charged offense.” People v Hadley, 67 Mich App 688, 690; 242 NW2d 32 (1976). A res gestae witness has also been defined as "a witness whose testimony is reasonably necessary to protect the defendant against a false accusation”. Harrison, supra, at 591. The failure to produce a res gestae witness may be excused where the prosecutor makes a showing of due diligence in searching for the witness, People v Gibson, 253 Mich 476; 235 NW 225 (1931), Rimson, supra. The determination of whether due diligence has been shown is entrusted to the discretion of the trial court and will be overturned on appeal only where a clear abuse of discretion is shown, Rimson, supra.
Even under the more liberal definition of a res gestae witness, Isaac was not a res gestae witness. He was not an eyewitness to the crime. He was not present at the commission of the crime. From the transcript, it appears that his only involvement in this case was that he received a tip or incriminating information from some unidentified source which implicated the defendant in this crime and he relayed this information to the police. Therefore, it appears that Isaac had no independent personal knowledge of any part of the criminal transaction. The trial judge did not err in finding that Isaac was not a res gestae witness, see, People v Douglas, 52 Mich App 224; 216 NW2d 920 (1974).
In any event, the trial court did not abuse its discretion in finding that the prosecutor exercised due diligence in attempting to produce this witness for trial. The prosecutor contacted Isaac’s parents and discovered that he moved to somewhere in California, had no address where he could be contacted, was living in a van and was not expected to return until October, see People v Blacksmith, 66 Mich App 216; 238 NW2d 810 (1975), People v Douglas, 65 Mich App 107; 237 NW2d 204 (1975).
The failure to produce the customer is excused because his identity is unknown. The only lead the prosecutor uncovered on this witness’s identity was that an employee of the store stated that he might recognize this customer upon seeing him again but that he did not know the customer’s identity or how to locate him. The trial judge did not abuse his discretion in finding that the prosecutor had exercised due diligence in attempting to locate and produce this witness, see, People v Mack, 64 Mich App 587; 236 NW2d 523 (1975).
Defendant also claims that it is a violation of double jeopardy, US Const, Am V, Const 1963, art 1, § 15, to convict him of both 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), as a result of one criminal transaction. For the reasons stated in Judge Beasley’s opinion in People v Walter Johnson, 85 Mich App 654; 272 NW2d 605 (1978), we conclude that these convictions did not violate the double jeopardy clause.
Affirmed.
Cynar, J., concurred. | [
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C. W. Simon, J.
Plaintiffs are three schoolteachers with tenure in the employ of defendant school district. In 1972 they were among those laid off when a drop in district revenue caused by an adverse property tax ruling and a millage defeat precipitated a necessary reduction in personnel. When financial conditions improved, however, new positions were created, but the school board appointed new, probationary teachers to fill the vacancies.
Mr. Chester had taught elementary physical education in the Harper Woods School District for 21 years. He was certified to teach all subjects at the seventh and eighth grade levels, and history, English, French and biology for grades 9 through 12. While he and another elementary physical education teacher, Mr. Goodwin, were both affected by the layoff, the latter being assigned to an elementary classroom, Mr. Goodwin, because of a request made pursuant to a collective bargaining agreement between the school district and the teachers association, was reassigned to fill the only vacancy which later arose in elementary physical education. When two openings occurred in English, Mr. Chester was considered for both but not approved because one involved a developmental language lab and the other a course in drama. It was felt by the school board that his 21-year absence from teaching English at the secondary level rendered him unqualified to handle either of these programs which were to be implemented.
Mr. Stevens had been associated with the Harper Woods School District for 14 years, variously teaching general science for grades 8 through 12, 9th grade civics, 11th grade world history, 8th grade home mechanics and 9th grade auto shop, and coaching varsity swimming and football. He was certified to teach all subjects at the 7th and 8th grade levels, science and history for grades 9 through 12 and physical education for grades kindergarten through 12. When two positions opened, one teaching 7th and 8th grade science and 11th and 12th grade chemistry and the other teaching 7th grade mathematics and general science, he was considered for both but rejected as unqualified in both chemistry and mathematics. Mr. Stevens’ endorsement was restricted to general science and he had had no undergraduate mathematics preparation.
Mr. Rieckhoff, before coming to Harper Woods, had been in charge of the junior high instrumental music program in Benton Harbor for 13 years. While employed by the Harper Woods School District he taught elementary as well as junior and senior high band, junior high music appreciation and one semester of girls’ vocal music. The vocal music program was scheduled for another semester but discontinued because of student disinterest in the instructor’s program. He was certified to teach all subjects in grades 7 and 8, music and social studies in grades 9 through 12 and music in kindergarten through 6th grade. When a vacancy teaching vocal music at the elementary level arose, he was considered but determined unqualified. Apparently, Mr. RieckhoiFs certification to teach vocal music was not within his file at the time of the board’s decision and the nonsuccess of his prior attempt at teaching the course caused them to conclude that he was not competent in the area.
After new teachers were hired to fill each of the vacancies, plaintiffs appealed the board’s decisions to the tenure commission, charging that the action of the school board violated the teachers’ tenure act. MCL 38.71 et seq.; MSA 15.1971 et seq. They argued alternatively that they were either certified and qualified for and thereby, under MCL 38.105; MSA 15.2005, entitled to the positions created, or, if not, that the school board deliberately reshuffled class assignments so as to create vacancies for which they were not qualified.
The tenure commission, with two dissenters, reversed the decisions of the school board. In the controlling opinion was stated:
"These Commissioners are aware of the opportunity school boards have, if they are so inclined, to circumvent the provisions of the Tenure Act by juggling assignments and manipulating course offerings in a manner which would cause the layoff or block the recall of a tenured teacher. The result of such action is the effective dismissal of a tenured teacher without observing the due process provisions of the Act. Upon appeal, we will scrutinize any such complaint to determine if a board’s actions were made in good faith, and will discourage the employment of any new teacher when tenured teachers are on layoff.
"It is our finding, in the present cause, that Appellee did deny appellants Chester, Stevens and Rieckhoff the 'first vacancy’ for which they were certified and qualified to teach, and did attempt to block the re-employment of Chester (and) Stevens * * * by manipulating class schedules.”
And, this decision was upheld by the Wayne County Circuit Court. The dissenters on the tenure commission had held that plaintiffs were either not certified or not qualified to teach in the school year program as it was established. They opined:
"(T)he manner in which the recall of teachers was effected was a studied, deliberate, systematic process by which all facets of the teachers [sic] background and experience were considered prior to a decision on recall being made.
"These Commissioners rule that the Harper Woods School District has properly executed its duties and is in compliance with [MCL 38.105; MSA 15.2005] by exerting its discretion as to qualification in the recall of teachers on lay off due to necessary reduction of personnel.” (Emphasis in original.)
These opinions relate a primary conflict which is the central issue raised here on appeal, whether the tenure commission has jurisdiction to review de novo decisions of a school board with regard to the reappointment of tenured teachers to vacancies which arise after a necessary reduction in personnel has caused their layoff.
Plaintiffs’ claim to the teaching vacancies is based upon MCL 38.105; MSA 15.2005; which provides:
"Any teacher on permanent tenure whose services are terminated because of a necessary reduction in personnel shall be appointed to the first vacancy in the school district for which he is certified and qualified.”
Even in this context, however, "certified” and "qualified” are not synonymous terms. The term "qualified” contemplates some level of competence above and beyond mere certification, the criteria of which must be established by the school board. Holton Public Schools v Farmer, 77 Mich App 765, 772; 259 NW2d 219 (1977) (M.B. Breighner, J., concurring). Accord, MCL 380.1231(1); MSA 15.41231(1) (formerly MCL 340.569; MSA 15.3569); Anderson v Harper Woods Public School Dist, 74 Mich App 227; 253 NW2d 718 (1977).
Where a school board is acting in its quasi-judicial capacity for removal of teachers for cause, its powers are greatly circumscribed by the teachers’ tenure act. "Discharge or demotion of a teacher on continuing tenure may be made only for reasonable and just cause,” MCL 38.101; MSA 15.2001, and only after providing a hearing which accords with MCL 38.102; MSA 15.2002 and MCL 38.104; MSA 15.2004. Further, MCL 38.137; MSA 15.2037 vests the tenure commission with such powers as are necessary to carry out and enforce the act’s provisions, and MCL 38.139; MSA 15.2039 charges it with the duty of standing "as a board of review for all cases appealed from the decision of a controlling board”. Review is de novo. Long v Board of Education, Dist No 1, Fractional, Royal Oak Twp and City of Oak Park, 350 Mich 324; 86 NW2d 275 (1957); Rehberg v Board of Education of Melvindale, Ecorse Twp School Dist No 11, 345 Mich 731; 77 NW2d 131 (1956). And, any final decision of a controlling board under the act is reviewable. MCL 38.121; MSA 15.2021. Bennett v City of Royal Oak School Dist, 10 Mich App 265; 159 NW2d 245 (1968), lv den, 381 Mich 755 (1968).
Thus, where the question is whether a tenured teacher may be dismissed for incompetence or improper conduct, he is entitled to a hearing before the school board and de novo review by the commission. See Rehberg v Board of Education of Melvindale, Ecorse Twp School Dist No 11, supra. This serves the purpose of the teachers’ tenure act which is "to eliminate capricious employment practices by school boards and protect teachers from arbitrary and unreasonable dismissals”. Pounder v Harper Woods Board of Education, 72 Mich App 717, 723; 250 NW2d 504 (1976), modified, 402 Mich 91; 260 NW2d 287 (1977), reh den, 402 Mich 960 (1978).
Where, however, the question is whether, because of economic necessity, a particular teacher should be laid off in the first instance, he is not entitled to either notice of the charges against him or a hearing before the controlling school board. Such would constitute a useless gesture since neither his conduct nor performance is being called into question. Steeby v School Dist of the City of Highland Park, 56 Mich App 395; 224 NW2d 97 (1974). Here, review by the tenure commission would be limited to "whether the [controlling] board of education, under the guise of a 'necessary reduction in personnel’, used circuitious methods in removing the [teacher] from its school system without the protections afforded by the teachers’ tenure act”. Freiberg v Board of Education of Big Bay De Noc School Dist, 61 Mich App 404, 416; 232 NW2d 718 (1975). Goodwin v Board of Education of the School Dist of the City of Kalamazoo, 82 Mich App 559; 267 NW2d 142 (1978). This is consistent with our reading of MCL 38.121; MSA 15.2021 which provides that "[a] teacher who has achieved tenure status may appeal any decision of a controlling board under this act”. Since the act is silent with regard to what constitutes a "necessary reduction in personnel” such issue is not appealable unless cast in terms which allege that the "necessary reduction in personnel” was not made in good faith but amounted to a subterfuge to avoid the act’s protections.
The case at bar, however, involves not the layoff but the reappointment of teachers after a "necessary reduction in personnel”. Plaintiffs make no claim that the reduction was a subterfuge to avoid the teachers’ tenure act. Rather, they contend that they have been denied their right of first recall under § 5 thereof, MCL 38.105; MSA 15.2005. They claim that the decision of the school board to fill the available vacancies with probationary teachers violated the act.
In this posture it is clear that plaintiffs’ claim with regard to the board’s decision is reviewable by the tenure commission. It falls squarely within the language of MCL 38.121; MSA 15.2021, "decision of a controlling board under this act”. Accord, Freiberg v Board of Education of Big Bay De Noc School Dist, supra. However, while as in Long and Rehberg, review would be de novo, the tenure commission is only free to reexamine the facts as found by the school board. It may no more redefine the criteria of "qualification” set by the board than outline new standards of "certification” for the state. To set the parameters of qualification to fill vacancies is a function of the school board which may not be usurped by the tenure commission. It is a legislative rather than a quasi-judicial function.
"School districts, though State agencies, are governed locally and their controlling boards are chosen by the electorate.” Rehberg v Board of Education of Melvindale, Ecorse Twp School Dist No 11, Wayne County, 330 Mich 541, 547; 48 NW2d 142 (1951). It is the school board which determines the criteria of teacher qualification, Holton Public Schools v Farmer, supra, because it is the local board, not the State Tenure Commission, who is charged with the duty of hiring duly qualified teachers both initially and after layoff, MCL 380.1231; MSA 15.41231 (formerly MCL 340.569; MSA 15.3569); Anderson v Harper Woods Public School Dist, supra. In our opinion, construction of the tenure law in harmony with the expressed legislative policy to protect teachers from arbitrary and unreasonable practices does not permit a construction so liberal as to entirely destroy the right of a local board to independently determine matters of policy in the administration of local school affairs. Thus, in reviewing the determination of a school board that a tenured teacher is not qualified for an available position, the tenure commission is constrained to apply the criteria of qualifications set out by the school board unless that criteria itself is either arbitrary, unreasonable or promulgated in bad faith. To further expand the jurisdiction of the commission would be to render it the legislator of all teacher qualification at the expense of local control. If the Legislature intended to deprive local governing bodies of legislative control over teachers’ qualification, that intent should have been definitely stated in the tenure act. Cf., Rehberg v Board of Education of Melvindale, Ecorse Twp School Dist No 11, Wayne County, supra.
Here, with regard to the criteria adopted by the school board, the dissenting members of the tenure commission noted that:
"Dr. Babich testified that a personnel procedure was formulated to assist him and other members of the administrative staff in making such decisions. He further testified that the procedure was uniformly and consistently followed in determining the qualifications of all teachers for a vacancy. In determining which teacher was certified and qualified, consideration was given to such items as the teacher’s certification, the teacher’s degree, whether or not the teacher had pur sued successfully curricula in specific subject areas for the potential teaching assignment, the teacher’s endorsement from an appropriate state agency, evidence of further reinforcement of original endorsement, and demonstrated competency within his or her assigned level within the school district.”
The majority of the commission completely disregarded this basis of qualification in favor of its own. Without ever considering whether the criteria adopted by the board was arbitrary, unreasonable or promulgated in bad faith, the majority erroneously chose to view qualification purely from a perspective of teaching experience. Indeed, its opinion is replete with reference to "new to-rees”. For example, with regard to Mr. Chester they state:
"The two English vacancies in dispute were filled by two newly hired, newly graduated teachers. Surely Chester was at least as qualified as a new hiree who had no teaching experience.”
This we feel was improper.
While we do not hold its criterion unsuitable, the tenure commission failed to accord the board’s determination of qualification the deference it was due. Although review of the facts is de novo, the commission is not free to substitute its idea of qualification for that of the board. Where the local board’s definition is neither arbitrary, unreasonable nor promulgated in bad faith, it is binding upon the tenure commission. Only the facts may be found anew.
Moreover, MCL 380.1282; MSA 15.41282 (formerly MCL 340.583; MSA 15.3583) provides:
"The board of a school district shall establish and carry on the grades, schools, and departments it deems necessary or desirable for the maintenance and improvement of the schools, determine the courses of study to be pursued, and cause the pupils attending school in the district to be taught in the schools or departments the board deems expedient.”
Not unlike the determination of qualification, this grant of authority to the local board carries with it a commitment that the power will be exercised by those duly elected by the voters of the school district. Absent a finding that a decision of the board with regard to class scheduling was arbitrary, unreasonable or made in bad faith, it may not be overturned by the tenure commission.
In the case at bar, the opinion of the tenure commission infers that class schedules were arbitrarily manipulated to block plaintiffs’ re-employment, but such finding is predicated upon an erroneous determination of qualification. Before any finding of manipulation can be made, it must first be determined whether the school board’s criteria for qualification are either arbitrary, unreasonable or promulgated in bad faith; if not, whether, applying the school board’s standards, the complaining teachers are qualified for any of the present vacancies; and, if not, whether they would have been qualified for vacancies which would have occurred had there been no rescheduling. Since such determinations were not made, any finding of manipulation was premature. Therefore, the proper disposition of this case is to reverse and remand to the tenure commission for a determination of whether, in setting their standards for reappointment, the school board acted arbitrarily, unreasonably or in bad faith. If not, the criteria adopted by the school board should control resolution of the subsequent issues.
Finally, it is of no moment that the school board examined "demonstrated competency” as a basis for qualification without affording a prior hearing. Where, as here, the status of the complaining teachers is unaffected and prompt, adequate administrative review is provided, MCL 38.121; MSA 15.2021, due process is not offended. Fusari v Steinberg, 419 US 379; 95 S Ct 533; 42 L Ed 2d 521 (1975), reh den, 420 US 955; 95 S Ct 1340; 43 L Ed 2d 433 (1975).
Reversed and remanded to the tenure commission for reconsideration consistent with this opinion.
Bashara, P.J., concurred. | [
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Per Curiam.
Defendant was charged with and convicted of possession of five pills containing amobarbital and secobarbital which are controlled substances. MCL 335.341(4)(b); MSA 18.1070(41)(4)(b). The offense occurred on May 7, 1976, in a state prison camp where defendant was serving part of his sentence for a previous conviction. Defendant was sentenced to a consecutive term of one to two years and now appeals.
Robert E. Malott, who was employed at defendant’s prison camp, discovered defendant in a 7-foot by 10-foot furnace room of the camp while checking on the whereabouts of another prisoner. The room was off-limits to prisoners and Malott asked defendant what he was doing there, to which defendant replied, "nothing”. Malott quickly searched the room and took defendant to the control office. In his search Malott discovered an envelope, of a type commonly used in the camp, with the following writing on it: "One a day, 141469 [defendant’s prison number] March 26th, 1976”. The envelope contained seven "water pills” which were not a controlled substance and the five pills which constituted the basis of defendant’s conviction. Malott found the envelope behind a fire extinguisher secured to a wall about one foot from where defendant was standing. Malott also saw a blue prison jacket, a belt, and a glass of water in the room but these items apparently did not belong to defendant.
When Malott and defendant left the furnace room, Malott padlocked the door. A short while later Malott found that the window of the room had been broken out from the inside. The door to the room was still locked. The implication from this was that someone besides defendant was in the furnace room when defendant was discovered. A person could have been concealed behind the furnace where Malott would not have seen him. The trial court states that there "very well could have been a person in the room * * * " and the prosecutor conceded in his closing argument that there could have been such a person.
Defendant’s primary contention on appeal is that there was insufficient evidence linking defendant to the controlled substances. In this vein, defendant argues that his motion to dismiss at the close of the people’s case should have been granted and that the prosecutor failed to negate every reasonable theory consistent with defendant’s innocence. A motion to dismiss is reviewed by considering the evidence presented at the time of the motion in the light most favorable to the prosecution, and by determining whether there is evidence supporting each element of the charge. People v De Clerk, 400 Mich 10, 18; 252 NW2d 782 (1977). The prosecutor’s duty to negate reasonable theories inconsistent with defendant’s guilt stems from the circumstantial nature of the evidence in the case. People v Davenport, 39 Mich App 252; 197 NW2d 521 (1972).
Our review of the facts reveals that the prosecutor produced evidence on all elements of the offense charged. Primarily, defendant contends that evidence was lacking which linked defendant to the controlled substances. The contraband found in an envelope with defendant’s number on it, with other pills in it which were of a type prescribed for defendant, and found next to defendant, constituted evidence which would, at least, overcome defendant’s motion to dismiss.
We further find that the circumstantial evidence in this case supports defendant’s conviction. As defendant argues, in a case based on circumstantial evidence the prosecution has the burden of proving that there is no reasonable innocent theory in accord with the facts, and any inference involved must follow as an impelling certainty. People v Davenport, supra. However, it is for the trier of fact to determine whether the prosecution has negated every reasonable theory consistent with the defendant’s innocence. People v Fuller, 395 Mich 451, 455; 236 NW2d 58 (1975), People v Jablonski, 70 Mich App 218, 225; 245 NW2d 571 (1976). See also People v Edgar, 75 Mich App 467; 225 NW2d 648 (1977). And it is likewise for the trier of fact to determine if the inferences are compelling. People v Peterson, 63 Mich App 538, 547; 234 NW2d 692 (1975). In this case the trier of fact did find every reasonable theory of defendant’s innocence negated and the inferences used compelling.
On appeal, defendant also contends the trial court erred in denying a defense motion to dismiss based on, allegedly, defendant’s presentation of prima facie evidence of legitimate possession and the prosecution’s failure to present evidence negat ing legitimate possession. We do not accept defendant’s contention since we find that defendant failed to present evidence of legitimate possession. The only thing defendant showed was that the controlled substance could be obtained by a prescription. Defendant failed to show he ever had a prescription for the substance. MCL 335.356; MSA 18.1070(56).
Defendant’s final contention on appeal is that he did not properly waive his right to a jury trial. At the beginning of the trial, defense counsel stated:
"Your Honor, at this time we would also ask the Court if we could waive trial by jury.”
The trial court responded:
"All right. You may step forward then Mr. Little here, and waive trial by jury.”
Defendant then signed the written waiver of jury form. Defendant now contends this process was insufficient to waive a jury trial because defendant himself did not orally waive his right to a jury.
MCL 763.3; MSA 28.856 requires a written waiver of jury "made in open court”. Although the statute does not actually state a requirement of an oral waiver, at least one panel of this Court indicated such a requirement exists. People v Word, 67 Mich App 663; 242 NW2d 471 (1976). But Word did not say that a defendant himself need necessarily make the oral waiver. People v Rimmer, 59 Mich App 645; 230 NW2d 170 (1975), which Word relied upon, was a case where there was no evidence of any waiver, oral or written, in open court. On the instant record it is abundantly clear that defendant desired to have his case heard by the trial judge and without a jury. There was a waiver in open court, and it was written by defendant and orally made by defense counsel with defendant present. The language and procedure used expressed a clear waiver of a jury trial and conformed with the statutory requirements.
Affirmed.
Defendant contends that the trier of fact only considered one of his theories of innocence, i.e., defendant was "framed”. But in disagreeing with this theory and finding defendant guilty as charged, the trier of fact necessarily found that the envelope of pills was indeed defendant’s and not someone else’s envelope with defendant’s number mistakenly printed on it. | [
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Per Curiam:
Defendants were charged with the crime of assault with intent to commit murder, MCL 750.83; MSA 28.278. After a joint jury trial defendant Dunlap was convicted of the crime charged and sentenced to a prison term of 50 to 80 years, and defendant Williams was convicted of assault with intent to do great bodily harm less than murder, MCL 750.84; MSA 28.279, and sen tenced to a prison term of six years four months to 10 years. A third codefendant, Essie Henderson, was also convicted of assault with intent to murder and a fourth codefendant was acquitted. Defendants Dunlap and Harold Williams now appeal as of right.
Defendants’ convictions arose out of an incident which occurred on March 22, 1976. The complainant and another person went to defendant Dunlap’s house. Upon entering the house complainant was attacked by Essie Henderson. Ms. Henderson stabbed complainant with a pair of scissors, bit off part of her ear, and then hit her on the head with a wine bottle. After complainant was wrestled to the ground and tied up and while Ms. Henderson was sitting on her, defendant Dunlap injected heroin and bleach into complainant’s body approximately six times. Complainant was then thrown into the trunk of a car and taken to the banks of the Detroit River where she was shot twice by defendant Williams, once in the neck and once in the arm. Complainant was found the next morning by police who took her to the hospital where she recovered from her injuries.
On appeal both defendants claim that their trials should have been severed from that of Essie Henderson because Ms. Henderson exculpated herself while implicating defendants. Such a claim, if proven, would require severance. People v Hurst, 396 Mich 1; 238 NW2d 6 (1976). We will address each claim separately.
Prior to trial defendant Dunlap did not move for a severance nor did she join defendant Williams’ motion for a severance. In People v Cochran, 84 Mich App 710, 712; 270 NW2d 502 (1978), this Court stated that "a failure to move for severance precludes review of that issue, except to remedy a miscarriage of justice”. Accord, United States v Papadakis, 510 F2d 287 (CA 2, 1975), cert den, 421 US 950; 95 S Ct 1682; 44 L Ed 2d 104 (1975). A review of the record in this case shows no miscarriage of justice. Ms. Henderson did state that defendant Dunlap had stuck the complainant several times with a needle, but this point was admitted by the defense, and as such, there was no prejudice to defendant’s case. More importantly, Ms. Henderson testified that defendant Dunlap was forced to accompany the others to the river where complainant was shot. Since complainant was obviously not dead at this time, testimony that defendant Dunlap no longer wanted to continue the escapade would tend to negative any finding that she intended to kill complainant, a necessary element of the crime charged. Taken as a whole, then, not only did Ms. Henderson’s testimony not exculpate herself at the expense of inculpating defendant Dunlap but, if anything, Ms. Henderson’s testimony served to exculpate defendant Dunlap. The decision not to object to the joinder of defendant Dunlap’s trial with Ms. Henderson’s was a tactical decision and will not be the basis for reversal on appeal.
Defendant Williams’ case is more complicated. After the jury had been empaneled but before any evidence was taken, defendant Williams did move for severance based on the allegation that one of his codefendants was going to exculpate herself at his expense. He did not support this contention by citing previous antagonistic statements made by the codefendant, as was done in Hurst, nor did he accept the prosecution’s suggestion of making an offer of proof on this point. There is a strong policy in this state in favor of joint trials and a defendant must make an affirmative showing of prejudice before he is entitled to severance. People v Carroll, 396 Mich 408; 240 NW2d 722 (1976). Accord, People v Gunter, 76 Mich App 483; 257 NW2d 133 (1977). Since defendant Williams made absolutely no effort to substantiate his allegation, he waived his objection to the joinder, and on appeal reversal will be granted only to prevent a miscarriage of justice. Cochran, supra.
We find no such injustice in the present case. The record indicates that Ms. Henderson admitted her involvement in this affair and testified to defendant Williams’ involvement. The only place where she tried to exculpate herself and inculpate defendant Williams was in regard to the question of intent to kill. The gist of her testimony on this point was that she did not want to kill complainant but she was forced by defendant Williams to accompany him to the river where he intended to shoot and kill complainant. The reason why severance is dictated in these situations is to assure that defendant will be convicted by the prosecutor’s evidence, and not be prejudiced by a co-defendant who would all too willingly sacrifice defendant to save herself. See Hurst, supra.
In the present case, the prosecution’s evidence clearly showed that defendant Williams put complainant in the trunk of his car, drove her to the river, and shot her twice. The only evidence that Ms. Henderson’s testimony added to this was that defendant Williams had the subjective intent to kill complainant and she did not. The jury totally disbelieved this evidence. It convicted Ms. Henderson of assault with intent to murder and convicted Williams of assault with intent to do great bodily harm less than murder, the exact opposite of what it would have done if it had believed Ms. Henderson’s testimony. Since the prosecution’s evidence clearly showed an assault with intent to do great bodily harm by Williams and the testimony of Ms. Henderson which implicated defendant Williams in a greater crime, but exculpated herself from that crime, was totally disbelieved by the jury, Williams was convicted on the evidence presented by the prosecution and was in no way prejudiced by the antagonistic testimony of his codefendant.
Defendants’ other allegations of error are without merit.
Affirmed. | [
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Bashara, P.J.
The plaintiff sustained a crushed pelvis and other permanent and serious injuries while working for defendant Ford Motor Company. He filed a third-party action against Ford Motor and Hinterman Ford Company jointly and severally.
Plaintiff prevailed in the third-party action and was awarded a gross recovery of $727,640.46. Meanwhile, intervenor Reliance Insurance Company had paid plaintiff $21,689.42 in worker’s compensation benefits and medical and educational benefits for the injury, which the circuit court found to be permanently and totally disabling.
The trial court issued an order reimbursing the intervening insurance company. Both parties appeal the content of the order. The dispute is primarily over the proper formula to use in apportioning litigation expenses between the plaintiff and the intervenor.
Apportioning the costs of a third-party tort recovery between the worker’s compensation insurer and the injured employee is governed by statute. See MCL 418.827; MSA 17.237(827). Judicial construction, however, has left an unsettled foundation upon which to base a determination of the benefits to be included within the "interests” of the insurer as that term is used in the legislation.
Whether to include within that term the credit received by the insurer for benefits payable to the employee in the future is the question presented in this case. That issue was considered by the Supreme Court in Kroll v Hyster Co, 398 Mich 281; 247 NW2d 561 (1976).
Since that review did not yield a majority opinion, the Supreme Court has undertaken a reconsideration of the issue in Schalk v Michigan Sewer & Construction Co, 62 Mich App 658; 233 NW2d 825 (1975), lv granted, 398 Mich 810 (1976). That result will ultimately control the resolution of this case.
The question presented in Schalk has apparently puzzled the Supreme Court, in view of the length of time between oral argument and the present. It is still uncertain when a definitive precedent will be formulated. The parties and this panel had hoped to rely on the Schalk decision for determination of this case. However, to continue our vigil would only inordinately delay the settlement of the rights of the parties and further clog this Court’s already burgeoning docket.
Of the extant opinions considering the question, Justice Williams’ view in Kroll v Hyster, supra, appears to implement the statute in accordance with the apparent legislative intent. Recognizing that settling the rights of the insurer should not depend upon the vagaries of prospective, fortuitous occurrences, the Legislature fixed the date of determining the interests of the parties "at the time of the recovery”.
In Kroll, Justice Williams, joined by Justice Coleman, perceives this legislative policy. He concludes that the advance credit given to the insurer for future worker’s compensation benefits should be included in ascertaining the insurer’s interests in the tort recovery. The opposing view of Chief Justice Kavanagh, joined by Justice Levin, is that contingent and uncertain prospective events can never be anticipated with total accuracy. We respectfully agree with Justice Williams’ observation that such reasoning "violates the clear language of the statute”, Kroll, supra, at 297.
Application of the foregoing principles yields the proper apportionment formula. The total costs of recovery are subtracted from the gross recovery. The amount of reimbursement for benefits paid by the insurer plus the amount of advance credit given to the insurer for benefits payable in the future, as of the date of the tort recovery, is divided by the tort recovery. This expresses the insurer’s proportionate share of the costs of the tort recovery. The balance of those costs is applicable to the employee’s interest in the tort recovery.
Applying Justice Williams’ formula, we also find that the trial court erred in ordering immediate payment of the carrier’s share of expenses to the employee. The payment should be deducted from the future credit remaining to the carrier.
Finally, we note that another panel of this Court has reached an opposite result, apparently relying on the opinion of Chief Justice Kavanagh in Kroll v Hyster, supra, see Fitzgerald v Challenge-Cook Brothers, Inc, 80 Mich App 524; 264 NW2d 348 (1978). We respectfully decline to follow that opinion but observe that the matter will finally be resolved by the eagerly awaited decision in Schalk v Michigan Sewer & Construction Co, supra.
Remanded for proceedings consistent with this opinion.
MCL 418.827; MSA 17.237(827) states in relevant part:
"(5) In an action to enforce the liability of a third party, the plaintiff may recover any amount which the employee or his dependents or personal representative would be entitled to recover in an action in tort. Any recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, shall first reimburse the employer or carrier for any amounts paid or payable under this act to date of recovery and the balance shall forthwith be paid to the employee or his dependents or personal representative and shall be treated as an advance payment by the employer on account of any future payments of compensation benefits.
(6) Expenses of recovery shall be the reasonable expenditures, including attorney fees, incurred in effecting recovery. Attorney fees, unless otherwise agreed upon, shall be divided among the attorneys for the plaintiff as directed by the court. Expenses of recovery shall be apportioned by the court between the parties as their interests appear at the time of the recovery.”
MCL 418.827(6); MSA 17.237(827X6).
MCL 418.827(6); MSA 17.237(827X6).
This formula, applied to a simple example, operates as follows. Assume the following:
Total recovery $1,000.00
fees
Other costs
Compensation paid to date
Probable future compensation 150.00
Total costs
Applying these figures to the formula, we have the following. Total recovery less total costs, $1,000 — $400 = $600 Total compensation, past and future, $50 + $150 = $200 Divide the total compensation by the tort recovery, 200/1000 = 1/5. The carrier, having gotten 1/5 the total recovery, is responsible for 1/5 or 20% of the costs. In this case, 20% of $400 = $80. The carrier is therefore responsible for $80 in costs.
At this point, the employee owes $50 to the carrier to reimburse him for past benefits. However, since the carrier is responsible for $80 in costs, these two figures can be set off, leaving a net sum due to the employee from the carrier of $30. Rather than paying this in cash at the time, it seems more appropriate to merely reduce the advance payment credit.
In our example, the credit is $550 (total recovery less costs, less reimbursement for past compensation). Reducing this figure by $30, leaves a net credit to the carrier of $520. | [
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D. E. Holbrook, J.
The defendant, City of Birmingham, appeals from a November 8, 1977, judgment, entered in Oakland County Circuit Court, enjoining the city from enforcing the terms of the existing R-6 multiple dwelling zoning classification against the plaintiffs’ 1/3-acre parcel of real property. The judgment further ordered that the plaintiffs be permitted to develop the said lot in accordance with the city’s B-3 office and commercial use zoning classification and that the plaintiffs’ property be exempted from the off-street parking provisions of defendant’s ordinance.
The evidence taken at trial indicates that the property in question is improved by a two-story brick building, built more than 50 years ago, and since converted into five separate apartment units. The lot is located at the northwest corner of the intersection of Maple Road and Chester Street in the defendant city’s central business district; it was zoned R-6 multiple family dwelling, in 1941.
A Jacobson’s Department Store complex comprising an entire city block is located at the northeast corner of the above intersection. The block located at the southeast corner of the intersection contains a church and the city post office. The property located directly south of the subject property and across Maple Road is presently vacant, however it has been purchased by the defendant city which intends to erect a public parking structure at that location. The remainder of this block contains one office building, one residence, and vacant land upon which the defendant contemplates constructing a senior citizen multiple dwelling facility.
The city’s central business district continues directly east from this intersection, along Maple Road, the main east-west route of defendant city. Chester Street, which formerly was only lightly traveled, has been turned by the defendant into the westerly leg of a "ring road” encompassing the central business district. In 1966 the defendant purchased the southeast corner of plaintiffs’ land in order to enlarge Chester Street and better accommodate the increased traffic flow.
Adjoining plaintiffs’ land to the north and extending the length of the block is additional church property. To the west and to the north of this property is a limited amount of residential property abutted further west by city park land. Adjoining plaintiffs’ land to the west is a three-family apartment; next lies a single family residence which was vacant at the time of trial; the two succeeding residences have been purchased by the city and converted to public use.
Citing the dramatic change in character of the immediate surroundings during the 30-odd years since their property was originally zoned, the plaintiffs filed a rezoning petition with the city in July of 1974. The plaintiffs’ application, seeking that the property be rezoned for commercial use, was denied in January of 1975. The instant action commenced in March 1975, with the plaintiffs alleging that the existing zoning classification was no longer reasonable, that the defendant’s refusal to rezone the subject property was unreasonable, and that no present substantial relationship existed between the present R-6 zoning and the health, safety and welfare of the defendant’s residents.
At trial the plaintiffs preferred substantial evidence to support the claims made above. One of the plaintiffs testified that it was riot feasible to continue the present usage of the land or to redevelop it as presently zoned. He stated that the plaintiffs’ efforts to sell the land or to finance improvements thereon had met with no success.
A traffic expert testified to the dramatic increase in vehicular traffic at plaintiffs’ location and concluded that access to the property was thereby rendered difficult and dangerous. It was shown that the volume of traffic on Chester Street had increased by 63 per cent since 1964, with nearly 5,000 vehicles now passing in a six-hour period. Traffic on Maple had increased by 30 per cent during the same period and the following data was offered by way of illustration: almost 11,000 cars passed on Maple Road in a six-hóúr period; the average number of vehicles passing was 2,600 per hour; although an average of 3,300 vehicles passed per hour during the "rush” periods.
An accoustical engineer certified that tests conducted by him indicated an average noise level in excess of applicable Federal standards for residential areas. During the "rush” hour, the noise level was measured at a mathematical average of 83 decibels.
An architect related his opinion that the subject property was not suited for residential use. In making this assessment, he stressed the unfavorable impact of the high traffic volume, the unacceptable noise level, the danger and difficulty of vehicle ingress and egress, the small size of the subject site, and the very close proximity of the department store across the street.
A real estate appraiser, called by the plaintiffs, agreed that improvement of the property was economically unfeasible as presently zoned. He also concurred in the conclusion expressed earlier that the difficulty of vehicular ingress and egress to and from the subject property rendered on-site parking overly dangerous.
Another of plaintiffs’ expert witnesses, an apartment management expert, expressed the opinion that an apartment complex of ten or fewer units could not be operated economically on this property. The plaintiffs-appellees also called the Royal Oak City Planner as an adverse witness. This witness testified that the existing zoning was unreasonable, that vehicular access to the site should be minimized, that limited commercial use of the property was feasible and that some residential use of the property might be reasonable.
In an effort to rebut the plaintiffs’ claims, the defendánt called a real estate expert, the next-door property owner, and their own city planner. The testimony of defendant’s witnesses was directed primarily toward controverting the plaintiffs’ claim that the property could not reasonably be used consistent with the present residential zoning.
The real estate expert noted several advantages, such as the proximity of city park land, to residential utilization of the subject property. He also pointed out that larger apartment complexes were being developed on major traffic arteries nearby, and that several housing units of comparable size were currently being operated in the defendant city without experiencing the negative cash flow problems testified to by plaintiffs. This expert witness also disputed estimated valuations offered by plaintiffs’ expert witnesses; as might be expected defendant valued the subject parcel highly, even if used for residential purposes, while the plaintiffs contended that the value of the property varied greatly depending upon the use to which it would be put. While conceding that the plaintiffs’ experts were better qualified in this area, defendant’s expert also controverted' plaintiffs’ estimates of the probable income and expenses which would result from a new residential development.
The owner of the three-family dwelling next door to the subject property testified that she has resided at that location since 1941 and is not bothered by the traffic or by exhaust fumes. She stated that her apartments rent easily.
Defendant’s city planner testified that the present zoning is reasonable. He testified that plaintiff’s proposal would have the negative effects of interjecting further nonresidential activity into a primarily residential area, and of exacerbating the existing traffic problem at Maple and Chester. He further opined that plaintiffs’ site was not too small for economical residential use and that the demand for apartments in Birmingham is high.
Although the parties agreed to submit proposed findings and conclusions, when they failed to reach an accord, the court independently issued its decision on July 13, 1977. In this decision, upon which the court’s November 8, 1977, judgment was based, the court concluded that due to dramatic changes in the surrounding area subsequent to 1941, residential zoning of the subject property was no longer reasonable as the property was unsuitable for such use. The court held that the property could reasonably be used for office or limited commercial use, and therefore granted the injunction referred to above. In reaching these conclusions, the court stressed the following findings of fact.
Ingress and egress to the site have become difficult and dangerous. There exists a lack of visual privacy, and because of the intense usage of the surrounding area, the site offers little "peace and quiet”. As currently utilized the property presents a negative cash flow, °yet the existing structure must be replaced in the near future. Financing for development is not available as currently zoned, and such development would not be economically feasible.
On appeal, the defendant first contends that it was error for the trial court to exempt the subject parcel from the defendant’s on-site parking requirement, since the plaintiffs’ complaint did not specifically mention such on-site parking provisions or request the relief which was ultimately granted. The plaintiffs sought several specific remedies and also "such other relief as may be warranted by the proofs and which is consistent with equity”. Several witnesses unanimously testified to the danger and difficulty resulting from vehicular ingress and egress to and from the subject property. GCR 1963, 518.3, in pertinent part provides that: "every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings”. In applying this rule to questions regarding the amount of damages awarded a party, this Court, in Piatkowski v Mok, 29 Mich App 426, 428; 185 NW2d 413 (1971), held:
"The language of [GCR 1963] 518.3, in no uncertain terms, states that a judgment must be based on what is proved rather than on what is pleaded. To base a judgment solely on what is pleaded totally ignores the word 'entitled’ and the phrase 'even if contained in GCR 1963, 518.3. The plain meaning of a general court rule should not be ignored by this Court.” (Footnotes omitted.)
See also: Gibeault v Highland Park, 49 Mich App 736; 212 NW2d 818 (1973), aff'd, 391 Mich 814 (1974). The testimony alluded to above suggests that the court below properly responded to the existing conditions and equities in granting the contested relief. See Seifert v Keating, 344 Mich 456; 73 NW2d 894 (1955), Kent v Bell, 374 Mich 646; 132 NW2d 601 (1965), Miller v Magline, Inc, 76 Mich App 284, 315; 256 NW2d 761 (1977), lv den, 402 Mich 801 (1977). Also see, discussion in Ellickson, Suburban Growth Controls: An Economic and Legal Analysis, 86 Yale LJ 385, 489 et seq. (1977). Since the trial court’s equitable decree granted relief which was clearly "germane to the issues presented” by the plaintiffs to the court, we find no reversible error arising from the fact that plaintiffs did not specifically request exemption from the defendant city’s on-site parking ordinance in their complaint, Drinski v Drinski, 309 Mich 479, 487; 15 NW2d 714 (1944). As the Court said in Advance Dry Wall Co v Wolfe-Gilchrist, Inc, 14 Mich App 706, 712; 165 NW2d 906 (1968): "The shape of relief in equity is not of necessity controlled by the prayer, but is formed by the court according to the germane conditions and equities existing at the time [the] decree is made.”
Next, the appellant city contends that the trial court erred in holding that the plaintiffs-appellees had sustained the burden of proving that the city’s R-6 zoning of the subject property was unreasonable. The proper standard for review in such a case was set forth in the oft-quoted opinion of Mr. Justice T. M. Kavanagh in Christine Building Co v City of Troy, 367 Mich 508, 517-518; 116 NW2d 816 (1962):
"We hear and consider chancery cases de novo on the record on appeal. * * * This Court, however, is inclined to give considerable weight to the findings of the trial judge in equity cases. This is primarily because the trial judge is in a better position to test the credibility of the witnesses by observing them in court and hearing them testify than is an appellate court which has no such opportunity. We do not ordinarily disturb the findings of the trial judge in an equity case unless, after an examination of the entire record, we reach the conclusion we would have arrived at a different result had we been in the position of the trial judge.” (Citations omitted.)
See also Kropf v Sterling Heights, 391 Mich 139, 152, 163; 215 NW2d 179 (1974).
The zoning enabling act, MCL 125.581; MSA 5.2931, provides that:
"[R]egulations shall be made in accordance with a plan designed to lessen congestion on the public streets, to promote public health, safety and general welfare, and shall be made with reasonable consideration, among other things, to the character of the district, its peculiar suitability for particular uses, the conservation of property values and the general trend and character of building and population development.”
The majority in Christine Bldg Co, at 516, 517, 518, held that:
"[E]ach case must be determined upon its own facts.
" 'Under the act, arbitrary action or the unreasonable exercise of authority may not be justified. * * * The presumption is in favor of validity.’ [Hitchman v Oakland Twp, 329 Mich 331, 335; 45 NW2d 306 (1951)]
"[Nevertheless, the power to zone] is at all times limited by the word 'reasonable’.” (Emphasis added.) (Citations omitted.)
See also, Kropf, supra, 156-157.
Of late, the Michigan Supreme Court has interpreted this "reasonableness” requirement to:
"[R]equire that for an ordinance to be successfully challenged [on due process grounds] plaintiffs prove:
" '[F]irst, that there is no reasonable governmental interest being advanced by the present zoning classification itself * * * or .
" '[S]econdly, that an ordinance may be unreasonable because of the purely arbitrary, capricious and unfounded exclusion of other types of legitimate land use from the area in question.’ [Kropf v Sterling Heights] 391 Mich 139, 158 [215 NW2d 179 (1974)].” Kirk v Tyrone Twp, 398 Mich 429, 439; 247 NW2d 848 (1976).
The plaintiffs may also show, of course, that the city acted unreasonably in that its ordinance denied the plaintiffs equal protection of the laws or failed to make just compensation where the Constitution requires. Kropf, at 156-157.
In the instant case, the plaintiffs claimed that R-6 zoning of the subject property was a denial of due process for both of the reasons stated above; further, the plaintiffs contended that residential zoning of the property rendered it economically unproductive, thereby depriving them of a valuable property right. The evidence in support of these contentions has been thoroughly summarized above. The evidence indicates, and the trial court found, that due to the change in character of the surrounding area, the greatly increased traffic volume, the difficulty of access, the lack of "visual privacy”, the small size of the lot, and the "unacceptable” noise level, the R-6 classification of the subject property no longer advanced a legitimate governmental objective. Residential use of the property was no longer "feasible” under the circumstances, and also did not contribute to the public health, safety or welfare. See, e.g., Gust v Canton Twp, 342 Mich 436; 70 NW2d 772 (1955).
The lower court’s finding that "[t]he present zoning of the land has deprived the plaintiffs of the enjoyment of their property for any use to which it is reasonably adapted” was based upon evidence that the property, in its existing condition, generated a negative cash flow. The court also relied upon the plaintiffs’ evidence showing that multiple residential use development was impractical and that financing would be unavailable for such development.
Applying the standard set forth above to the lower court’s conclusion that R-6 zoning of the subject property is "unreasonable”, we are not convinced that had we been trial chancellor we would have arrived at a different result. The evidence adduced at trial strongly supports the determination that the defendant city’s classification of the subject property no longer operates to benefit the general welfare. Further, the evidence does suggest that as presently classified, the subject property has little or no economic value. The plaintiffs met their burden of proof. We find that the circuit court correctly held the defendant city’s zoning ordinance to be unconstitutional as applied to the plaintiffs’ property, under the standard applied in Christine Bldg and Kropf, supra. R-6 classification of this property does "preclude its use for any purpose to which it is reasonably adapted”. Kirk, supra, at 439, citing Kropf, at 163. (Emphasis added.)
Finally, the defendant city decries the lower court’s action in enjoining the city from enforcing its R-6 classification of the subject parcel and in effectively "re-zoning” the parcel B-3, office-limited commercial-residential. As pointed out in 86 Yale LJ 385, 490, supra, confusion over the proper relief to be awarded in zoning cases has continued at least since the United States Supreme Court’s decision in Nectow v City of Cambridge, 277 US 183; 48 S Ct 447; 72 L Ed 842 (1928). Says the author:
"As one of the few Supreme Court decisions on zoning, Nectow has been an influential case. Its impact has been detrimental in three respects. First, by grounding relief on the Federal Constitution, the Supreme Court federalized an issue of landowner rights that it should have left to state courts and state constitutions. Second, the case has been construed to mean that a landowner’s standard remedy against overly restrictive zoning should be some form of injunctive relief and not damages. Third, by failing to specify what type of injunctive relief the landowner was to receive, Nectow reinforced the judicial tendency toward sloppiness in the specification of remedies in zoning cases.”
One impact which this confusion has had upon the Michigan law of zoning is illustrated by the concluding paragraphs of the Court of Appeals’ opinion in Daraban v Redford Twp, 15 Mich App 132, 136-137; 166 NW2d 295 (1968), aff'd, 383 Mich 497; 176 NW2d 598 (1970). In a section later adopted verbatim by the reviewing court, the unanimous panel stated:
"Generally, the courts will not issue injunctive orders restraining future action by municipal zoning authorities with respect to rezoning after judicial determination of unconstitutionality of a particular provision as applied to a specific parcel of land. Christine Building Company v. City of Troy (1962), 367 Mich 508 [116 NW2d 816] (where 'under the present record’ the refusal of the trial court to set minimum lot sizes was affirmed); Roll v. City of Troy (1963), 370 Mich 94 [120 NW2d 804],
"A review of the cases indicates, however, that such injunctions have been permitted in certain circumstances. Industrial Land Company v. Birmingham (1956), 346 Mich 667 [78 NW2d 656]; Long v. City of Highland Park (1950), 329 Mich 146 [45 NW2d 10]; Redford Moving & Storage Company v. City of Detroit (1953), 336 Mich 702 [58 NW2d 812]; Dequindre Development Company v. Charter Township of Warren (1960), 359 Mich 634 [103 NW2d 600]; Lacy v City of Warren (1967), 7 Mich App 105 [151 NW2d 245].” (Emphasis added.)
None of the cases cited above, however, has explained under which circumstances the court may depart from the general rule and invoke injunctive restraints against future municipal action.
We find that such a foundation must exist, nonetheless, in the traditional power, inherent in courts of equity, to shape the relief granted according to the circumstances of the instant case. Sei-fert v Keating, supra, and Kent v Bell, supra. While the line of cases including Christine Bldg Co, supra, and Roll v City of Troy, 370 Mich 94; 120 NW2d 804 (1963), indicate that this equitable power must be exercised with restraint (it won’t be utilized to create entirely new minimum lot sizes, for example), it does not preclude a court from taking action to enforce its decision on the merits of the case. In the instant case, the court’s action in enjoining the city from interference with the plaintiffs’ use of their property consistent with the B-3 classification operated merely to protect the plaintiffs from further delay, expense or harassment in what the court found to be reasonable use of the plaintiffs’ property.
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R. H. Campbell, J.
The defendant was convicted by a jury of criminal sexual conduct in the third degree, MCL 750.520(d)(1); MSA 28.788(4X1), and was sentenced to a term of imprisonment from 4 to 15 years.
The 14-year-old alleged victim in this matter, as a result of apparent peer group pressures and inner dilemmas which we only speculate about, visited the prosecutor on thé day before trial was to begin. She informed him that she wanted to drop the charges against the defendant and explained that "he didn’t touch me” and that a police officer had pressured her into the charge in the first place. The prosecutor responded with a thinly-veiled threat of a perjury charge against the victim if she changed her story from that given at the preliminary examination (wherein she testified to the sexual act). At trial, this episode was revealed to the court and jury only as a result of the defense counsel’s thorough cross-examination of the witness. On redirect the prosecutor announced "for the record”, that "as Prosecutor of Van Burén County * * * I do not intend to prosecute this person as a perjuror. I am just interested in the truth”.
Prosecution intimidation of witnesses has been condemned, People v Pena, 383 Mich 402; 175 NW2d 767 (1970), whether the witnesses are defense witnesses or prosecution witnesses. People v Harley, 49 Mich App 729; 212 NW2d 810 (1973). We recognize the dilemma of the prosecutor when confronted with such a situation. But there were three additional problems which conclusively tilted the balance here toward reversal. First, neither the trial court nor either of the counsel asked the young witness if she had in fact been intimidated by the threat. Justice Adams in People v Pena, supra, suggested this, in particular, was a question to be asked by the trial court. Here, the prosecutor even requested that the judge ask the witness the question, but the trial judge declined. Second, the prosecutor made no effort to bring the matter to the attention of the court, by examination or otherwise. Rather, a thorough cross-examination of the witness by defense counsel yielded the information which, it is clear, would never have been revealed otherwise. And finally, the prosecutor’s announcement that he would not prosecute her for perjury — coming after she had testified against the defendant — was a blatant attempt to bolster the witness’s credibility. Such stands as an independent error, but also combines, in aggregate, with the prosecutor’s improper handling of the entire incident of the witness’s attempted recantation.
Other errors at trial also combined with the former to require reversal. Contrary to the prosecutor’s assertion at trial, he is not permitted to show the general lack of morality of a defense witness by evidence of specific instances of conduct. Rather, specific instances of conduct may be inquired into on cross-examination only if probative of truthfulness and if concerned with the witness’s character for truthfulness or untruthfulness. MRE 608(b), People v Bouchee, 400 Mich 253; 253 NW2d 626 (1977). Marijuana use is not such an instance of specific conduct contemplated by the rule.
Neither may the prosecutor rebut reputation evidence of character with specific instances of conduct, however, inquiry is allowable into reports of relevant specific instances of conduct. MRE 405, People v Roeder, 79 Mich App 595; 262 NW2d 872 (1977).
The resolution of the issues above makes discussion of the other issues raised by defendant unnecessary.
The defendant’s conviction is reversed and the case remanded for a new trial. The trial court should particularly ascertain whether the action of the prosecutor intimidated the victim into testifying as she did at trial.
Reversed and remanded.
Danhof, C.J., concurred. | [
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R. B. Burns, J.
Defendant was charged with first-degree criminal sexual conduct, MCL 750.520b; MSA 28.788(2). Pursuant to a plea bargain, defendant pled guilty but mentally ill to second-degree criminal sexual conduct, MCL 750.520c; MSA 28.788(3), in exchange for the prosecutor’s promise that defendant would not be tried on the original charge. He appeals and we affirm.
Defendant alleges on appeal that he has not been provided with the evaluation and psychiat-rically indicated treatment which the department of corrections is statutorily obligated to provide. MCL 768.36(3); MSA 28.1059(3). Characterizing this statutory obligation as a promise of treatment, defendant argues by analogy to plea bargain cases, see, e.g., Santobello v New York, 404 US 257; 92 S Ct 495; 30 L Ed 2d 427 (1971), In re Valle, 364 Mich 471; 110 NW2d 673 (1961), that he is entitled to a remand to establish that the promise has been broken and that he is entitled to withdrawal of the plea.
In In re Valle, the Supreme Court held:
"If the evidence establishes that the prosecutor or the judge has made a statement which fairly interpreted by the defendant * * * is a promise of leniency, and the assurance is unfulfilled, the plea may be withdrawn and the case proceed to trial.” 364 Mich at 477-478; 110 NW2d at 677.
Our review of the plea transcript reveals that the decision to plead guilty but mentally ill, as opposed to guilty, was defendant’s, and merely acqui esced in by the prosecutor: The trial court clearly disclaimed authority to assure that the department of corrections would evaluate and treat defendant and stated that it could only recommend such treatment. Thus, there were no promises made which can bring this case within the rule established by Valle.
Defendant contends that 1975 PA 180, creating the guilty but mentally ill verdict, by amending 1927 PA 175, the code of criminal procedure, violates the title-object clause, Const 1963, art 4, § 24, because it contains provision for treatment and parole for those pleading or found guilty but mentally ill. See MCL 768.36(3); MSA 28.1059(3). The statute is presumptively constitutional, and the title must be construed reasonably, not narrowly. The statute may contain provisions which "directly relate to, carry out and implement the principal object”. Advisory Opinion re Constitutionality of 1972 PA 294, 389 Mich 441, 464-465; 208 NW2d 469, 473 (1973). Provisions for treatment and parole of those pleading or found guüty but mentally ill are germane to the principal object of creation of the plea or verdict, which is encompassed within the title provision "to provide for judgments and sentences of persons convicted of criminal offenses”. The statute does not violate the title-object clause.
Defendant argues by analogy to People v McQuillan, 392 Mich 511, 544-545; 221 NW2d 569, 584-585 (1974), that the trial court lacked jurisdiction to make the determination of whether defendant was mentally ill at the time of the offense. However, unlike in McQuillan, here the trial court had statutory authority to make the determination. MCL 768.36(2); MSA 28.1059(2). Defendant’s argument is without merit.
Defendant also argues that MCL 768.36; MSA 28.1059 violates due process by creating an irrational presumption that, if a defendant was mentally ill at the time of the offense, he will be mentally ill at the time of and throughout incarceration. It is alleged that due process requires a hearing before defendant may be incarcerated for treatment. People v McQuillan, supra. This argument is also without merit. Defendant was incarcerated because he was guilty of a crime, not because he was mentally ill. The statute does not presume defendant needs treatment because he was mentally ill at the time of the offense. Rather, the statute provides for an evaluation and such treatment as is psychiatrically indicated. We need not reach the issue of whether defendant is entitled to a hearing in addition to evaluation prior to treatment, as defendant has alleged in his first issue on appeal that he has not received treatment, and because defendant indicated when he pled guilty but mentally ill that he did so because he wanted treatment. Thus, there is no factual support for an inference that defendant has been subjected to unconsented-to treatment without due process.
Lastly, defendant argues that he has been deprived of equal protection of the law because prisoners transferred to the custody of the department of mental health do obtain a hearing for the determination of mental illness. MCL 330.2000, 768.36(3); MSA 14.800(1000), 28.1059(3). However, since all prisoners adjudicated guilty but mentally ill are to receive evaluation, the primary purpose of the hearing is to determine whether treatment can best be provided by a mental health facility. MCL 330.2000(5); MSA 14.800(1000X5). It is thus reasonable for the Legislature to provide a hearing only for those whom corrections officials contemplate transferring.
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V. J. Brennan, J.
This is an interlocutory appeal by plaintiff, Ervan K. Kissel, from the lower court’s order denying plaintiff’s motion to allow further discovery by way of deposition of defendants’ expert medical witness who had examined plaintiff, but was not to be called by defendants at trial.
The present appeal arose out of a negligence action brought by plaintiff for alleged injuries sustained on defendants’ premises. On November 22, 1977, the plaintiff submitted to an independent medical examination by Dr. Douglas H. Giese as arranged by the defendants pursuant to GCR 1963, 311. Defendants then scheduled Dr. Giese’s deposition for December 13, 1977, and on that day plaintiff was provided with a copy of the examination report. At the scheduled time for the deposition, the defendants’ attorney met with Dr. Giese privately and then advised plaintiff that the doctor’s deposition would not be taken.
Plaintiff then moved for an order allowing the deposition of Dr. Giese. The trial court on January 10, 1978, ruled that the doctor was the defendants’ witness, and since the defendants did not intend to use the doctor’s testimony, the plaintiff could neither depose nor subpoena him for trial. The plaintiff appeals the lower court’s order.
Our inquiry focuses upon the following question: Whether a medical doctor employed by a party to examine the opposite party, but who is not to be called to testify by his employer, may be deposed or called as a witness by the opposite party?
It must be noted that Michigan has a strong historical commitment to a far-reaching open and effective discovery practice, and to that end the Court has repeatedly emphasized that discovery rules are to be liberally construed. Daniels v Allen Industries, Inc, 391 Mich 398, 403; 216 NW2d 762 (1974); Hallett v Michigan Consolidated Gas Co, 298 Mich 582; 299 NW 723 (1941).
GCR 1963, 302 provides in pertinent part:
".1 When depositions may be taken. After commencement of an action in any court, any party may take the testimony of any person, including a party, by deposition on oral examination or written interrogatories for the purpose of discovery or for use as evidence in the action or for both purposes.
".2 Scope of examination.
"(1) Persons taking depositions unless for good cause otherwise shown as provided by sub-rules 306.2 and 306.4, shall be permitted to examine the deponent regarding any matter not privileged which is admissible under the rules of evidence governing trials and relevant to the subject matter involved in the pending action * * * .” (Emphasis added.)
The thrust of the defendants’ argument on appeal is that the testimony of Dr. Giese represents privileged information, and the use of the testi mony by the plaintiff is foreclosed by the work-product doctrine. We note that an attorney’s impressions, mental reflections, conclusions and opinions are protected by the work-product restriction. Furthermore, the situation may arise where an attorney’s consultation with an expert contributes to the attorney’s conclusions and legal theories so as to encompass the consultation within the work-product restriction. However, the employment of Dr. Giese in the case at bar does not present this situation.
Normally, an expert is not a person "having knowledge of relevant facts” within the meaning of GCR 1963, 302.2. Klabunde v Stanley, 384 Mich 276, 282; 181 NW2d 918 (1970). However, upon examining the plaintiff, Dr. Giese became a witness to the nature and extent of the plaintiff’s injuries. Having first-hand knowledge, Dr. Giese could then describe what he had seen and give expert inferences therefrom. Such testimony does not fall within any work-product restriction, and therefore the trial court should have granted the plaintiff’s motion.
Defendant cites Lindsay v Lipson, 367 Mich 1; 116 NW2d 60 (1962), as suggestive of a different result. On its facts Lindsay is distinguishable from the case at bar. There the Court held that a physician’s examination of the plaintiff as communicated to the plaintiff’s attorney in preparation of the plaintiff’s case was in essence a communication by the plaintiff to his attorney and was, therefore, protected by the attorney-client privilege. In the present case the medical interpretation of the plaintiff’s injuries was communicated to the defendants’ attorney in the preparation of the defendants’ case and, therefore, no attorney-client privilege attached.
We feel that our decision allowing plaintiff to depose or subpoena Dr. Giese for trial comports with the enunciated purpose behind liberal discovery as follows:
"Properly employed, discovery conserves judicial resources — by facilitating settlement and by shortening the time it takes to try a case properly prepared for trial. Much of what is laboriously brought out during a trial could be covered by stipulation based on the results of pretrial discovery; by narrowing the disputed issues, this would increase the impact of the competing presentations on the points in dispute.
"It seems to us, having in mind the clogged dockets of our trial courts, that the interest in shortening the interval between the commencement of an action and adjudication requires not only that we allow litigants to require disclosure of the other side’s case in advance of trial, but further that in some cases it is the duty of the trial court to insist that the parties employ these and ancillary techniques in an effort to expedite the trial process and to reduce the backlog.” Roe v Cherry-Burrell Corp, 28 Mich App 42, 53; 184 NW2d 350 (1970).
The plaintiff has raised a collateral question as to whether the testimony of Dr. Giese may be bolstered by the fact that he was originally employed by the defendant. We answer in the negative.
Testimony as to the expert’s original employment is not pertinent to any issue presented, and neither party should be bound by the rejected opinions of experts employed by him to assist in evaluating his case. Furthermore, the credibility of a witness generally may not be bolstered until attacked, McCormick, Evidence (2d ed), § 49, p 102, and we see no reason to deviate from the general rule.
Reversed and remanded with directions to the lower court to enter an order allowing the plaintiff to depose or subpoena Dr. Giese for trial. | [
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Per Curiam.
On January 13, 1977, a judgment for $3,640.35 was entered against appellant in district court. Appellant appealed the judgment to the circuit court; however, that appeal was dismissed by the circuit court judge on motion of plaintiff because appellant did not file a bond for one and one-quarter times the amount of the district court judgment. We granted leave to appeal.
The circuit judge dismissed appellant’s claim of appeal, holding that GCR 1963, 705.9 (repealed July, 1977) and GCR 1963, 701.7 (revised July, 1977) required appellant to file a bond for one and one-quarter times the amount of judgment as a condition of maintaining the appeal in circuit court. Appellant does not wish to stay execution on the district court judgment. He argues that, therefore, he should not be required to file a stay bond. Rather, he asserts that a bond covering the costs of appeal should be the only bond required.
The court rules governing appeals to the circuit court have been amended since appellant filed his claim of appeal in the circuit court. The new rules have prospective effect only. 400 Mich lxix (1977); Moore v Spangler, 401 Mich 360, 368; 258 NW2d 34 (1977). Therefore, we will consider appellant’s claim under the court rules in effect at the time appellant filed his claim of appeal. We do not determine whether the same result would follow under the current court rules.
Old Court Rule 705.9 provided in pertinent part:
".9 Appeals; Required Acts of Appellant. In all ap peals, within the time limited for taking an appeal, the appellant shall do the following:
"(a) File in the circuit court a bond as required under subrule 701.7; * * * .” (Emphasis added.)
Old Court Rule 701.7 provided in part:
".7 Bond on Appeal; Stay of Proceedings. Unless exempted by law, the appellant shall file a bond with his claim of appeal, cross appeal, or order following appeal. The bond on appeal
"(1) shall be in a penalty not less than $200 and except for appeals from probate court, if the appeal is by a person against whom a claim has been asserted, it shall be not less than one and one-quarter the amount of the judgment or claim allowed. In appeals from the probate court, the court in which the bond is filed may in its discretion fix the bond in an amount found owing to the estate where a fiduciary’s account has been disallowed or a claim has been allowed against a fiduciary incident to his administration of his trust or estate. In judgments for possession of land, the bond shall be in the amount and on the conditions provided for by statute.” (Emphasis added.)
In construing these court rules, we are required to give words their normal meaning. Cf. MCL 8.3a; MSA 2.212(1). Old Court Rule 705.9 referred to required acts of appellant and it directed that the appellant shall file a required bond. Old Court Rule 701.7 provided that an appellant shall file a bond and the rule directed that the amount of bond shall not be less than a certain amount.
Both "require” and "shall” indicate an intent to make the provisions mandatory. Smith v School District No. 6, 241 Mich 366, 368-369; 217 NW 15 (1928); Law Department Employees Union v City of Flint, 64 Mich App 359, 368, 235 NW2d 783 (1975). Further, the use of the negative "shall not” also indicates an intent to make the provision mandatory. Connecticut Mutual Life Ins v Wood, 115 Mich 444, 448-449; 74 NW 656 (1898).
In view of the clearly mandatory language contained in the court rules, we hold that the circuit court did not err in requiring a bond amounting to one and one-quarter the amount of the district court judgment.
Appellant argues that the mandatory bond in this case violates the equal protection provisions of the Federal and state constitutions. We reject that contention. The right to equal protection of the law is not denied by a state law or course of procedure where the same law or course of procedure would have been applied to any other person in the same state under similar circumstances and conditions. Moore v Spangler, supra, at 370, citing Tinsley v Anderson, 171 US 101; 18 S Ct 805; 43 L Ed 91 (1898). In the instant case, appellant is not required to do anything not required of all other similarly situated appellants in the circuit court. Therefore, we reject his equal protection argument.
The decision of the circuit court is affirmed.
We note that appellant does not allege that he is financially unable to pay the bond and that the bond requirement, therefore, prevents the exercise of his right to appeal. | [
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Per Curiam.
The essential facts of this appeal are not in dispute. Plaintiff Mohammed Amer was allegedly injured on October 2, 1973, in a slip and fall accident. On July 9, 1975, plaintiffs filed a complaint in this action against Durbin Associates and John Doe Corporation. John Doe Corporation allegedly manufactured and sold construction and finishing materials for concrete floors to the builders of the building in which plaintiff allegedly fell. Through answers to interrogatories filed by defendant Durbin on March 17, 1976, plaintiffs became aware of the role of defendant Van Horn Bros., Inc., in the construction of the building. On September 27, 1976, plaintiffs filed a "motion to add necessary parties defendant”. The motion was based on GCR 1963, 205. Van Horn Bros., Inc., was among those defendants sought to be added. On October 1, 1976, the trial court entered an order whereby the additional defendants were "made parties to this action.” On October 18, 1976, plaintiffs filed an amended complaint which specifically named defendant Van Horn. Defendant Van Horn was served with this complaint on October 26, 1976.
On November 12, 1976, defendant Van Horn filed a motion for accelerated judgment based on the applicable three-year statute of limitations. The trial court denied defendant’s motion, holding that its order conferred jurisdiction over defendant and served to add defendant as a party; that defendant was a necessary party; and that the amendment cured a misnomer in the original complaint by substituting defendant for John Doe Corporation.
The parties agree that this action is controlled by the three-year statute of limitations in MCL 600.5805(7); MSA 27A.5805(7). The issue in dispute is whether the action was commenced against this defendant within that three-year limitations period.
In Forest v Parmalee (On Rehearing), 60 Mich App 401, 406-407; 231 NW2d 378 (1975), aff'd on other grounds, 402 Mich 348; 262 NW2d 653 (1978), this Court stated:
"According to Anno: Change in party after statute of limitations has run, 8 ALR2d 6, § 53, p 112, it is 'well settled’ that:
'Where a defendant is brought into an action for the first time upon the filing of an amended or supplemental complaint, the filing of the amendment constitutes the commencement of the action in so far as such new defendant is concerned. The statutory period runs until the time of the filing of the amendment, and if at that time the action is barred, a party thus subsequently brought in may avail himself of the plea.’
An exception to this rule is that the additional defendant may be brought in after the expiration of the statute of limitations where the new party is a necessary party, or acquired its interest in the subject matter of the suit 'pendente lite’ or where the amendment 'merely corrects a defect in the original proceeding’. 8 ALR2d 6, 112. * * * As a general rule, the statute of limitations continues to run in favor of an alleged joint tort-feasor until it is made a party to the suit. 8 ALR2d 6, § 58, p 120. 51 Am Jur 2d, Limitation of Actions, §§ 272, 277, pp 798, 800. See also Ciotti v Ullrich, 267 Mich 136, 138-139; 255 NW 179 (1934), for the general rule that suit is not considered having been commenced against a new defendant until that person is made a party.”
As to plaintiffs’ assertion that defendant is a necessary party, we disagree. Defendant is, at most, a joint tortfeasor. Plaintiffs have complete relief available from defendants already in the suit. Therefore, defendant is not a necessary party within the meaning of GCR 1963, 205. 1 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 551. Cf. Wolff v Dalton, 28 Mich App 643, 646; 185 NW2d 189 (1970). Defendant’s presence in the suit may be desirable, but it is not necessary. See Forest v Parmalee, supra, at 406-407. The trial court thus erred in ruling that defendant was a necessary party. Because defendant is not a necessary party, plaintiffs must begin their action against defendant within the limitations period.
A court action is normally commenced with the filing of a complaint. Buscaino v Rhodes, 385 Mich 474; 189 NW2d 202 (1971), GCR 1963, 101. That rule also applies when parties are added as defendants to a suit. Forest v Parmalee, supra, at 406-407. In the instant case, plaintiffs contend and the trial court agreed that the action against defendant commenced with the trial court’s order. Defendant argues that the trial court’s order does nothing more than grant plaintiffs leave to amend their complaint to include defendant as a party. Our review of GCR 1963, 205.2, 206, 207 and the Author’s Comments thereto in 1 Honigman & Hawkins, supra, persuades us that the defendant is correct and the trial court in error in this regard. We then are left with the issue of whether filing a motion for leave to amend a complaint tolls the statute of limitations.
Our review of the original opinion issued in Forest and the decision on rehearing indicates that, in appropriate circumstances, such a motion may have this effect. These opinions suggest that the deciding factor in this regard is a plaintiff’s diligence in attempting to join the defendant. This is also the approach adopted in Charpentier v Young, 83 Mich App 145; 268 NW2d 322 (1978). In Charpentier, this Court was faced with a fact situation similar to the one at bar and adopted a case by case approach. It left much discretion with the trial court, stating:
"[W]hether a party seeking to add parties to the litigation has complied with the court rules so as to entitle him to suspend the running of an applicable statute of limitations in favor of an added party, is for determination in the first instance by the trial court. An added party may obtain the trial court’s review of the circumstances leading up to the filing of the amended complaint by filing a motion for accelerated judgment based upon the statute of limitations. The trial court may then review de novo the procedural steps taken by the amending party to assure that dilatory tactics have not unjustly deprived the added party of his legitimate statute of limitations defense. It is then within the discretion of the trial court to grant or deny the motion based upon his evaluation of the circumstances in each case.” Charpentier v Young, supra, at 149-150.
The trial court in the instant case, however, did not make any determination concerning plaintiffs’ diligence in attempting to join defendant. Although the six-month interval between the receipt of answers to interrogatories which disclosed defendant’s role in the construction of the building and the filing of the motion to add parties suggests that plaintiffs were not as diligent as they could have been, we prefer to leave this issue for determination in the first instance by the trial court.
We lastly note that the argument that plaintiffs were merely trying to correct a misnomer in their original complaint is not persuasive. This end could have been accomplished by a motion to amend their complaint. Instead, they moved to add defendant as an additional party.
Accordingly, the denial below of defendant’s motion for accelerated judgment is reversed. We remand this cause to the trial court for its determination of plaintiffs’ diligence. Costs to abide the final outcome. We retain no jurisdiction.
Compare Forest v Parmalee, 53 Mich App 505; 219 NW2d 806 (1974), with Forest v Parmalee (On Rehearing) 60 Mich App 401; 231 NW2d 378 (1975), aff'd on other grounds, 402 Mich 348; 262 NW2d 653 (1978). | [
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Danhof, C.J.
Defendant was charged with perjury, see MCL 750.422; MSA 28.664, on the basis of his testimony at a prior trial, in which he was defending against charges of breaking and entering, larceny over $100 and larceny in a building. On February 25, 1976, defendant was found guilty of these larceny and burglary charges. The perjury information was in three counts. Count one alleged perjury by defendant’s testimony as follows: "I didn’t commit that B & E. I didn’t. I ain’t never broke into people’s houses.” The second charged perjury by answering "no” to a question whether defendant had committed a breaking and entering in the neighborhood of a witness, Mrs. Smith. The last count complained of knowing falsification by the statement: "I didn’t commit no B & E. I’m innocent of that. If I ever did something wrong, I didn’t do that. I didn’t commit it.”
The trial court granted defendant’s motion to quash the information relying "solely on the authority of People v Taylor, 34 Mich App 84 [190 NW2d 720] (1971)”, and holding the perjury prosecution to constitute double jeopardy.
We disagree that the prosecution of this charge places defendant in double jeopardy for the reason that the alleged perjury and breaking and entering were clearly separate transactions. People v White, 390 Mich 245; 212 NW2d 222 (1973). However, we affirm the quashing of the information for the reasons stated below.
Any threat of prosecution for perjury based on testimony by the defendant in a criminal proceeding raises a potential conflict of interest. On the one hand, the fear of collateral repercussions from testifying may discourage an accused from taking the stand on his own behalf. Scott v United States, 135 US App DC 377; 419 F2d 264 (1969). A defendant’s right to testify on his own behalf is of consti tutional magnitude, Guilty Plea Cases, 395 Mich 96; 235 NW2d 132 (1975), and is expressly safeguarded by our own court rules, GCR 1963, 785.7 (1) (g) (x). On the other hand, excusing defendants from liability for perjury might encourage false testimony and thereby diminish the integrity of our factfinding system. In a related context, the United States Supreme Court recently held that a criminal defendant has no protected right to commit perjury. United States v Grayson, 438 US 41; 98 S Ct 2610; 57 L Ed 2d 582 (1978).
As a rule of law to resolve this conflict, we hold that although a criminal defendant taking the stand on his own behalf does not have a license to lie, United States v Grayson, supra, he must be protected from threats of perjury prosecutions that unnecessarily chill his right to testify. Cf. United States v Jackson, 390 US 570; 88 S Ct 1209; 20 L Ed 2d 138 (1968).
In determining whether a perjury information unnecessarily discourages a defendant from exercising his right to testify, a careful distinction must be drawn between perjury as to basic adjudicative facts and perjury as to issues of ultimate fact or law mixed with fact. Basic adjudicative facts pertain to who did what, where, when, how and with what motive or intent. Davis, Administrative Law, § 7.03, p 160. They may be proved for both substantive and impeachment purposes. Ultimate fact questions concern the legal definitions and effects ascribed to the basic facts or combinations of basic facts as found. At common law, it is doubtful that false testimony as to the latter can ever be a basis for a perjury charge, since a court would most likely construe it as mere opinion or as a conclusion of law beyond the realm of common knowledge. See 18 Mich Law & Practice, Perjury, § 1, p 458. But see Hoch v People, 3 Mich 552 (1855); cf. Guilty Plea Cases, supra, (for purposes of informing defendant of the nature of the charges against him, it can be expected that most persons will understand the generic term "breaking and entering”). To the extent such a charge is valid at common law, it is constitutionally impermissible as it discourages defendants from exercising their rights to testify, without substantially benefiting the administration of justice. The chance that a defendant will lie about the ultimate fact at issue in his case does not significantly threaten the integrity of the fact-finding process. Knowing the primary historical events, the fact-finder can judge guilt or innocence on its own. The discouraging effect of potential perjury liability in such a situation, while not overwhelming, is "unnecessary and therefore excessive”. Cf. United States v Jackson, supra, 582.
United States v Grayson, supra, is not inconsistent with this approach. That case dealt with the validity of sentence enhancement for perjury rather than separate and subsequent liability for perjury. Hence, the decision implicates a different policy choice; rather than seeking to ensure the integrity of the fact-finding process, the Grayson Court was concerned with the relevancy of a defendant’s mendacity to sentencing. Moreover, the alleged perjury in Grayson went to basic adjudicative facts rather than ultimate questions of fact and law. Grayson, while on trial for unlawful escape from prison, testified that he left out of fear, that another inmate had just threatened him with a large stick with a nail protruding through it, and that he had previously mentioned threats from other inmates to a prison official. He also swore that after he crossed the prison fence he discarded his prison jacket and shirt but not his trousers. This testimony was relevant to defendant’s credibility and to the issue of whether defendant’s escape was planned or was a spontaneous product of duress. If Grayson’s testimony was false and had been believed, it could have seriously undermined the fact-finder’s conclusions on those issues.
Judged by the foregoing tests, counts two and three of the information challenged in this case were properly quashed. The breaking and entering referred to in the second count was the breaking and entering with which defendant had been charged. The statement repeated in the third count was defendant’s answer to his attorney’s question whether he had committed that offense. Both counts are justly characterized as charges for opposing the state on the ultimate issue of defendant’s guilt.
Count one presents a closer question. The statement related in that paragraph of the information had been made in response to an inquiry by defendant’s attorney whether defendant had gone to a home to check it out to see if anyone else was there in order to commit the breaking and entering with which he was charged. The last sentence of defendant’s answer — "I ain’t never broke into people’s houses” — arguably contains testimony as to basic adjudicative fact. Nonetheless, because the major thrust of the statement was to deny an essential element of the crime and because the arguably unprotected testimony was incidental, not in response to a specific question, we construe the answer in toto and deny perjury liability on the basis of any of the assertions therein.
By our resolution of these issues, we have obviated the need to discuss other errors claimed by defendant.
Affirmed.
The statute reads:
"Any person who, being lawfully required to depose the truth in any proceeding in a court of justice, shall commit perjury shall be guilty of a felony, punishable, if such perjury was committed on the trial of an indictment for a capital crime, by imprisonment in the state prison for life, or any term of years, and if committed in any other case, by imprisonment in the state prison for not more than 15 years.”
As a habitual offender, he was sentenced to serve concurrent terms of 5 to 22-1/2 years, 3 to 7-1/2 years and 2-1/2 to 6 years imprisonment. However, in People v Longuemire, 77 Mich App 17, 24; 257 NW2d 273 (1977), the Court, sua sponte, vacated defendant’s conviction and sentence for larceny over $100 since conviction for that crime and for larceny in a building violated double jeopardy on the facts of the case.
Ultimate facts encompass statements as to noncommission of the crime charged or a legal element of the crime. Thus, statements such as "I didn’t bribe Mr. X” or "I didn’t break into that house” are statements of ultimate facts which cannot be used as a basis for perjury. Conversely statements which indicate actual details of the crime charged such as "I didn’t give Mr. X $50,000” or "I didn’t force the door open” are adjudicative facts which can form the basis for a perjury charge.
The risk of conviction for misstatements of ultimate fact may be slight. Not only are such statements likely to be construed as opinion, but also, given the mixture of law and fact inherent in such conclusions, the people would bear a heavy burden of proving the defendant knew the statement was false when he made it. | [
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Per Curiam.
The people appeal as of right from a December 23, 1977, order of Jackson County Circuit Judge Russell A. Noble, dismissing an information against defendant on the ground of entrapment.
Defendant was arrested on August 14, 1977, and charged with the possession of heroin, a violation of MSA 335.341(4)(a); MSA 18.1070(41)(4)(a). On December 14, 1977, an entrapment hearing was held. At the hearing Detective Piziali of the Michi gan State Police testified that he was contacted by the warden of the State Prison of Southern Michigan at Jackson. The wife of inmate Donald Mc-Allister had informed the warden that other inmates, who believed McAllister had outside drug connections, were pressuring McAllister to smuggle drugs into the prison. These inmates, led by "Redbone” Brown, claimed to have the cooperation of a guard at the prison. They wanted McAllister’s wife to deliver some drugs to the prison guard. The drugs would be brought into the prison by the guard and the heroin eventually delivered to Mc-Allister, who in turn would turn the drugs over to Redbone Brown. McAllister was willing to cooperate with the state police in apprehending the guard involved in the scheme.
Subsequently, however, Mrs. McAllister left the state. Thus, Detective Piziali obtained the assistance of trooper Janece Vortman, who agreed to pose as McAllister’s wife. In accordance with instructions relayed through McAllister, trooper Vortman obtained a hotel room at a local Holiday Inn. At the time, she was in possession of a packet of heroin provided by the state police laboratory.
On August 14, 1977, trooper Vortman received a call from a woman asking if she had a package. The caller, who said her husband was a prison guard, indicated that she would pick up the package. Vortman responded that she was instructed to deliver the package only to the guard. The caller then agreed to have her husband pick up the package.
Forty-five minutes later, defendant appeared at the hotel room and identified himself. He was given the heroin which was in a clear plastic packet. He was told it was fifty percent pure and that she didn’t want it "stepped on”. After exam ining the packet, defendant left the room. It was the intention of the police to arrest defendant after he returned to the prison. However, defendant did not go directly to the prison, but instead went toward his home. Fearing that the heroin might be lost, the police arrested defendant.
Defendant disclaimed any knowledge of a heroin smuggling operation. He testified that on the day of the exchange he was contacted by Dennis Hicks, an inmate at the prison. Hicks asked him to pick up a package for him at the Holiday Inn. Defendant claimed to know nothing about the contents of the package. He inferred from trooper Vortman’s comments at the time of the exchange that the package contained brown sugar.
Redbone Brown also testified at the hearing. He claimed to have no knowledge of any smuggling activities involving a prison guard. He claimed that McAllister had at one time approached him about smuggling drugs into the prison, but that he had refused to participate in such a venture.
Michigan has adopted the "objective test” for determining if entrapment has occurred. People v Turner, 390 Mich 7; 210 NW2d 336 (1973). That test, which was taken from Justice Stewart’s dissenting opinion in United States v Russell, 411 US 423; 93 S Ct 1637; 36 L Ed 2d 366 (1973), does not focus upon a defendant’s predisposition to commit the crime charged. Rather, the focus is on:
"whether the actions of the police were so reprehensible under the circumstances, that the Court should refuse, as a matter of public policy, to permit a conviction to stand.” Turner, supra, at 22.
In setting forth the objective test for entrapment, the Court further relied upon language from Justice Stewart’s dissent in Russell, supra, noting:
"But when the agents’ involvement in criminal activities goes beyond the mere offering of such an opportunity, and when their conduct is of a kind that could induce or instigate the commission of a crime by one not ready and willing to commit it, then — regardless of the character or propensities of the particular person induced — I think entrapment has occurred. For in that situation, the Government has engaged in the impermissible manufacturing of crime, and the federal courts should bar the prosecution in order to preserve the institutional integrity of the system of federal criminal justice.” Turner, supra, at 21.
In ruling on a question of entrapment, the trial judge is required to make findings of fact, based upon the evidence presented at the hearing, People v Cancino, 70 Mich App 90, 94; 245 NW2d 414 (1976). The trial judge is required to consider the police conduct in relation to a hypothetical defendant, not one ready and willing to commit the crime. People v Zeegers, 61 Mich App 546, 550; 233 NW2d 76 (1975). Defendant has the burden of proving entrapment by a preponderance of the evidence. People v D’Angelo, 401 Mich 167, 183; 257 NW2d 655 (1977). Typically, those cases where entrapment has been found involve situations where the police have pressured the defendant into committing the crime, People v Duis, 81 Mich App 698, 703; 265 NW2d 794 (1978), or where they have in some way played upon his sympathies. People v Soper, 57 Mich App 677, 679; 226 NW2d 691 (1975).
However, in the present case, the facts fail to establish any such conduct on the part of the police. Rather, defendant relies upon the fact that the heroin which provides the basis for the possession charge was supplied by the police. In support of this theory, defendant cites People v Stanley, 68 Mich App 559; 243 NW2d 684 (1976). There, the Court held that the defense of entrapment is available where the prosecution is aimed at the sale of contraband originally obtained from a government agent. In addition, Stanley involved a situation where a state police detective feigned withdrawal sickness to bring about the sale.
The present case, however, involves neither an appeal to defendant’s sympathies, nor a "take-back” sale. Rather, the present case involves a situation where the police, in response to orders from the persons involved in the criminal enterprise, delivered a quantity of heroin to defendant. Although the fact that the drugs were provided by the government in this case is certainly one factor to consider, that factor must be considered along with all the other facts of the case.
We now hold that the trial judge erred in ruling that entrapment had occurred. The record supports the conclusion that the idea for the crime did not originate with the police. The police had no role in determining how the transfer of the drugs would be carried out. The police were merely responding to the orders of those who had conceived the crime.
We find certain language in People v Roy, 80 Mich App 714; 265 NW2d 20 (1978), to be applicable to this case. That case, like Stanley, supra, involved a "take-back” sale, where drugs were furnished to defendant by the police and later delivered to a different police agent. As is alleged in the present case, Roy, supra, involved a situation where an inmate, Berrier, was working with a prison guard, Roy, to bring in drugs provided by an inmate-informant. In upholding the police conduct against a claim of entrapment, the Court noted at 719-720:
"Roy, however, did not operate unless an inmate provided him with an outside source of drugs. To obtain the required evidence, therefore, it was necessary for the police to provide the outside contact. But the method of operation was not suggested by the police. The plan originated with Roy and Berrier. Nor did the police use any tactics calculated to induce the defendants to commit a crime they were not otherwise ready to commit. They merely followed instructions given them by Berrier.”
In the present case it was also necessary for the police to provide the outside contact in order to apprehend the guard who was allegedly smuggling the drugs into the prison. We do not believe that any "public policy” supports the notion that the police were required to refuse McAllister’s assistance. Rather, in going along with the smugglers’ preconceived plan, the police merely provided them an opportunity to commit the crime. This is not enough to support a claim of entrapment. People v Lassen, 65 Mich App 720, 722; 238 NW2d 384 (1975), Turner, supra, at 21.
* The decision of the trial judge is reversed and the case remanded for trial.
The trial judge’s findings that the officers contacted defendant by telephone and that they supplied him with heroin when he followed their directions are not supported by the evidence. Instead, the evidence indicates that trooper Vortman obtained the hotel room at the direction of Redbone Brown and the other inmates and that she was contacted there by defendant’s wife.
We note defendant’s claim that he did not know the package contained heroin. The determination of guilt or innocence is a separate consideration from that of entrapment. People v D’Angelo, 401 Mich 167, 176; 257 NW2d 655 (1977). Nothing said herein should be construed as bearing upon defendant’s guilt or innocence of the crime charged.
In light of our disposition of this case, we do not find it necessary to address the prosecutor’s challenge to the "objective test” for entrapment. | [
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V. J. Brennan, P.J.
Defendant James Powell pled guilty on June 11, 1976, in Genesee County Circuit Court before Judge Ollie B. Bivins, Jr., to a charge of breaking and entering an unoccupied building, contrary to MCL 750.110; MSA 28.305. After the judge accepted defendant’s plea, he deferred defendant’s sentencing and continued his bond. During the plea proceeding, defendant testified that Clinton Carter had participated in the crime with him but that no one else had been involved.
Later that day, defendant was called as a witness in the trial of an alleged accomplice, James Wilder. At that trial, defendant testified that Wilder had not participated in the crime with him but that another party had been involved. The jury in the Wilder case was not able to reach a verdict and Judge Bivins declared a mistrial. Immediately following the trial, defendant was called to the bench where Judge Bivins accused defendant of perjuring himself, revoked defendant’s bond and remanded him to county jail.
Judge Bivins sentenced defendant on August 5, 1976, to serve from 5 to 10 years in prison. Defendant then moved to set aside the guilty plea, vacate his sentence, and transfer the case to another judge. He alleged in his motion that Judge Bivins had acted improperly in his actions incident to the Wilder trial, thereby punishing defendant for his testimony in that case. The defendant submitted an affidavit in support of his motion. Defendant submits to this Court two affidavits, one from defendant’s trial attorney in this case and one from counsel for defendant in the Wilder case setting forth the factual basis surrounding the claim of the trial judge’s improper conduct. Defendant appeals as of right under GCR 1963, 806.1.
Defendant contends the sentencing court committed error requiring resentencing before another judge when he improperly accused defendant of perjury regarding testimony given in a companion case and immediately afterward revoked defendant’s bond, ordered him returned to county jail and subsequently sentenced him to 5 to 10 years in prison.
The basis of the defendant’s argument is that the trial court considered improper information in its sentencing. Where such a claim is made defendant is required to make a timely motion to the trial court prior to appeal requesting the sentence be vacated. Included with his motion should be appropriate supporting affidavits. See Guilty Plea Cases, 395 Mich 96, 137; 235 NW2d 132 (1975). The defendant in the present case complied with these requirements and thus preserved the matter for appeal.
The problem present is that the court appeared to use the sentencing power reserved solely for punishing the conduct directly involved with the crime charged to punish unrelated conduct. The danger we perceive in allowing such a situation to remain uncorrected is that where defendants are called to testify in companion cases they may perjure themselves in order to placate the trial court. In order to insure complete and uncompro-mised testimony by defendants in such circumstances, we cannot allow the kind of conduct and sentencing consequences involved here. See People v Westerfield, 71 Mich App 618, 625-626; 248 NW2d 641 (1976).
Reversed and remanded for resentencing before another Genesee County Circuit Court judge. | [
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Bashara, J.
The majority accepts the facts as set forth in our brother’s dissent. In view of the opinion of Judge Bashara expressed in People v McDowell, 85 Mich App .697; 272 NW2d 576 (1978), and that of Judge Brennan in People v Blount, 87 Mich App 501; 275 NW2d 21 (1978), we set aside the conviction for felony firearm. However, the defendant’s sentence as an augmentation of the penalty for the underlying felony is upheld.
Reversed in part; affirmed in part.
V. J. Brennan, J., concurred. | [
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Per Curiam.
Defendant was charged in a one-count information with the offense of breaking and entering an occupied dwelling with the intent to commit a larceny therein, contrary to MCL 750.110; MSA 28.305.
Carlton Clayburn testified that he resides at 17621 Meyers, Detroit, Michigan, and that on November 6, 1975, he left for work after having secured his home. He further testified that he identified certain of his personal property at the 12th Police Precinct subsequent to the breaking and entering and stated the said property was in his dwelling at the time he left for work.
There was evidence that a police officer viewed the defendant entering the rear door of complainant’s home and later placing various objects on the rear seat of a car parked in the alley. Defendant was arrested after a high-speed automobile chase.
Defendant was convicted of the offense charged in a jury trial and was sentenced to a term of from 10 to 15 years in prison and now appeals as of right.
The trial court charged the jury on the charged offense and also on the charge of entering without breaking an occupied dwelling with the intent to commit larceny therein. The defendant claims error in the trial court’s refusal to instruct the jury on the charge of breaking and entering an unoccupied dwelling (building) with the intent to commit larceny therein, and the further charge of larceny from a building.
We first deal with the failure of the trial court to instruct on the offense of breaking and entering of an unoccupied dwelling (building) with intent to commit a larceny therein.
In People v Ora Jones, 395 Mich 379, 390; 236 NW2d 461 (1975), our Supreme Court defined the term "necessarily included offenses” as follows:
"The duty of the trial judge to instruct on lesser included offenses is determined by the evidence. People v Phillips, 385 Mich 30; 187 NW2d 211 (1971). If evidence has been presented which would support a conviction of a lesser included offense, refusal to give a requested instruction is reversible error. Id. at 36, People v Hamilton, 76 Mich 212; 42 NW 1131 (1889).
"If the lesser offense is one that is necessarily included within the greater, the evidence will always support the lesser if it supports the greater.”
In order for the offense of breaking and entering an unoccupied dwelling to be a lesser offense necessarily included within the offense of breaking and entering an occupied dwelling, then, the evidence adduced at trial must support a conviction of the defendant for the former offense. Defendant contends that the two offenses are identical except that conviction of the latter requires proof of an additional element: occupation. This is not the case, however.
The two offenses codified by MCL 750.110; MSA 28.305 are of separate and independent origin. Common-law burglary was the antecedent of the statutory offense of breaking and entering an occupied dwelling: as such that offense is clearly an offense against habitation. People v Winhoven, 65 Mich App 522, 526-527; 237 NW2d 540 (1975), 12 CJS, Burglary, § 16, p 678. Breaking and entering an unoccupied dwelling is a similar but clearly distinct offense, clearly an offense against prop erty. As noted in 12 CJS, Burglary, § 23, pp 683-684:
"Where there are statutes punishing burglary of a dwelling house, and also other provisions punishing as a separate offense the breaking and entry of a store or other building 'not adjoining to or occupied with a dwelling-house,’ it is a necessary element of the latter offense that the building broken into should not adjoin, nor be occupied as, a dwelling house.” (Footnote omitted.)
The Michigan Supreme Court has adopted this approach in interpreting the statutory forerunners of MCL 750.110. In Koster v People, 8 Mich 431, 432-433 (1860), the Court said:
"It is a plain principle of law, that where the statutes enumerate several elements as combining to create a crime, the crime can not properly be described without including all these elements. An entry into a shop or warehouse in the night, with intent to commit a felony, is not a crime under this statute, unless it also appears that the shop or warehouse is neither adjoining to nor occupied with a dwelling. Burglary, at common law, must be committed in such a place as is within the definition of a dwelling, which term has received an enlarged signification. Entering other buildings was not regarded in the same light. In making a new crime, the legislature have seen fit to select a peculiar class of buildings, and it can not be enlarged or varied.”
In People v Levey, 206 Mich 129, 133; 172 NW 427 (1919), the Court, in applying 3 Comp Laws 1915, § 15292, the predecessor of MCL 750.110, stated that:
"There was no testimony in the case that the store which was broken into was not adjoining to or occupied with a dwelling house. This is a necessary element of the offense (3 Comp. Laws 1915, § 15292) and should be proved.” (Emphasis added.)
We adopt the same approach in the construction of MCL 750.110. In order for breaking and entering an unoccupied dwelling to be a necessarily included lesser offense in the instant case, it would be necessary that the facts show the additional element of an unoccupied dwelling. On the contrary, however, the facts indicate that the subject dwelling was occupied. This demonstrates that the statutory offenses were intended and constructed so as to be mutually exclusive. Each requires proof of an element which would necessarily preclude conviction under the other.
Breaking and entering an unoccupied dwelling is thus not a lesser included offense in the subject case under the test adopted in Ora Jones, supra. Furthermore, the opinion in Ora Jones states at 390 that:
"In the area of 'cognate’ lesser offenses, the evidence in each case adduced at the particular trial must be examined to determine whether that evidence would support a conviction of the lesser offense.”
Thus, in the case at bar, considering the evidence adduced at trial, breaking and entering an unoccupied dwelling was also not a "cognate” lesser offense of the crime charged.
In reference to the failure of the trial court to have charged the jury on the separate and distinct offense of larceny in a building, we find that the same is not a necessarily included offense nor is it a "cognate” lesser offense under the law in Michigan of breaking and entering an occupied dwelling with intent to commit larceny therein. People v Page, 73 Mich App 667, 670; 252 NW2d 239 (1977), People v Robert Brown, 72 Mich App 749, 750; 250 NW2d 522 (1976), People v Huffman, 315 Mich 134; 23 NW2d 236 (1946).
In this regard we rule that the trial court’s refusal to charge as to larceny in a building was proper.
Affirmed.
M. F. Cavanagh, J., concurs in the result only. | [
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J. H. Gillis, P.J.
This case involves a dispute over an insurer’s liability under the uninsured motorist provisions of an insurance contract.
On February 4, 1974, defendant Lenord Bower sustained personal injuries when he was pinned between the loading ramp of a truck and a barn door opening as the truck was being backed into the barn to pick up cattle. The vehicle was not insured. A suit against the driver and owner of the truck resulted in a jury verdict of no cause of action. No appeal was taken from the judgment.
Defendant Lenord Bower filed for and received personal income protection benefits and medical expense benefits under the no-fault provisions of his contract of insurance with plaintiff. Defendants Lenord and Katherine Bower also filed a demand for arbitration under the uninsured motorist provisions of the insurance contract.
Plaintiff thereupon filed an action in the Delta County Circuit Court for a judgment declaring the rights of the parties under the contract. The court entered its order on December 14,1977, declaring:
(1) The jury verdict is res judicata as to the insurer’s liability to its insured under the uninsured motorist provisions.
(2) If defendants are entitled to arbitration, plaintiff can offset payments made under the no-fault provisions against like benefit payments to its insured under the uninsured motorist provisions.
(3) The uninsured motorist coverages of the policy may be stacked.
The court thereupon found that plaintiff was not under an obligation to arbitrate the claim of its insured. Defendants appeal and plaintiff cross-appeals.
I
The judgment of no cause of action in the Bowers’ case against the uninsured motorist is not a bar to a demand for arbitration under the insurance contract with Farm Bureau. This issue was addressed in Auto-Owners Ins Co v Higby, 69 Mich App 485, 488; 245 NW2d 102 (1976), wherein it was stated:
"To begin with, we find the doctrine of res judicata inapplicable because two lawsuits are not involved here. We are concerned here with the effect of a lawsuit on contractual rights, rather than the effect of one lawsuit on another lawsuit.”
The Court in Auto-Owners went on to discuss whether the insureds had waived their contractual right to arbitration and concluded that under the facts of that case they had not. No allegation has been made in the instant case that defendants waived their right to arbitration so we need not address that issue here. Rather, on the authority of Auto-Owners, supra, we conclude that the trial court erred in holding that the issue of liability is res judicata.
Moreover, examination of the language of the contract makes it clear that the judicial decision is not conclusive of the issue of liability. Part IV of the contract of insurance provides, in part, as follows:
"To pay all sums which the insured or his legal representative shall be legally entitled to recover as damages from the owner or operator of an uninsured automobile because of bodily injury, sickness or disease, including death resulting therefrom, hereinafter called 'bodily injury,’ sustained by the insured, caused by accident and arising out of the ownership, maintenance or use of such uninsured automobile; provided, for the purposes of this Coverage, determination as to whether the insured or such representative is legally entitled to recover such damages, and if so the amount thereof, shall be made by agreement between the insured or such representative and the company or, if they fail to agree, by arbitration.
"No judgment against any person or organization alleged to be legally responsible for the bodily injury shall be conclusive, as between the insured and the company, of the issues of liability of such person or organization or of the amount of damages to which the insured is legally entitled unless such judgment is entered pursuant to an action prosecuted by the insured with the written consent of the company.” (Emphasis supplied.)
The first paragraph states that the issue of liability is to be determined, absent agreement, by arbitration. The second paragraph indicates that a judgment against an uninsured motorist will be conclusive of the issues of liability and damages if written consent to the action is given by the insurer. This paragraph expressly applies only when a judgment is rendered against the uninsured motorist. If the insurer had wished to make a judgment against the insured conclusive of the issues it would have been simple to insert appropriate language. In construing the language in an insurance policy prepared by the insurer, the policy should be construed most strongly against the insurer and liberally in favor of the insured. Nickerson v Citizens Mutual Ins Co, 393 Mich 324; 224 NW2d 896 (1975), The Travelers Indemnity Co v Duffin, 28 Mich App 142; 184 NW2d 229 (1970), rev’d on other grounds, 384 Mich 812; 184 NW2d 739 (1971).
As neither principles of res judicata nor the terms of the insurance policy itself made the judgment of no cause of action conclusive of the issues of liability and damages the trial court erred in holding that the insurer was not obligated to arbitrate the claim of its insured.
II
Having determined the matter must go to arbitration, we next proceed to review the trial court’s determination of the "offset” and "stacking” issues.
The trial court correctly determined that the uninsured motorist coverage could be stacked. Detroit Automobile Inter-Ins Exchange v Curl, 82 Mich App 140; 266 NW2d 479 (1978), Fletcher v Aetna Casualty & Surety Co, 80 Mich App 439; 264 NW2d 19 (1978).
However, the trial court erred in holding that the insurer could only set off payments under the no-fault provisions against similar benefits under the uninsured motorist provisions. The language of § 4, 1| G, of the no-fault provisions of the policy provides:
"Any amount payable under the Family Protection [uninsured motorist] Coverage of this policy shall be reduced by the amount of any personal protection benefits paid or payable under this or any other automobile insurance policy because of bodily injury to an eligible injured person.”
The language of this provision is nearly identical to that construed by the Court in American Fidelity Fire Ins Co v Williams, 80 Mich App 125; 263 NW2d 311 (1977), and Schigur v West Bend Mutual Ins Co, 80 Mich App 640; 264 NW2d 83 (1978). In those cases the Court held that the above provision clearly and unambiguously authorized the insurer to offset, against its liability under the uninsured motorist coverage, any personal protection benefits it paid. We see no basis for concluding otherwise in the instant case.
Reversed and remanded for entry of an order consistent with this opinion. No costs, neither plaintiff nor defendants having prevailed in full. | [
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Beasley, P. J.
Charged with two counts of murder in the first degree in the killing of a woman and a child, defendant was found guilty in a bench trial of two counts of second-degree murder contrary to MCL 750.317; MSA 28.549. After being sentenced to life imprisonment on each count, defendant appeals as of right, raising five issues for consideration.
I.
Did error occur when the court failed to order defendant to undergo a forensic examination prior to trial?
The 1975 amendments to the Code of Criminal Procedure set forth the statutory procedure to be followed when a defendant asserts an insanity defense. Defendant filed notice within the statutory period; however, not until the third day of trial did the court notice that defendant had not been ordered to undergo a forensic examination. The trial judge then recessed trial and ordered defendant to undergo such an examination. Copies of the forensic center report were sent to the prosecuting and defense attorneys immediately upon completion.
MCL 768.20a; MSA 28.1043(1) reads, in pertinent part, as follows:
"Sec. 20a. (1) If a defendant in a felony case proposes to offer in his defense testimony to establish his insanity at the time of an alleged offense, the defendant shall file and serve upon the court and the prosecuting attorney a notice in writing of his intention to assert the defense of insanity not less than 30 days before the date set for the trial of the case, or at such other time as the court directs.
"(2) Upon receipt of a notice of an intention to assert the defense of insanity, a court shall order the defendant to undergo an examination relating to his claim of insanity by personnel of the center for forensic psychia try for a period not to exceed 30 days. When the defendant is to be held in jail pending trial, the center, in its discretion, may perform the examination in the jail, or may notify the sheriff to transport the defendant to the center for the examination, and the sheriff shall return the defendant to the jail upon completion of the examination. When the defendant is at liberty pending trial, on bail or otherwise, the defendant shall make himself available for the examination at the place and time established by the center. If the defendant, after being notified by the center of the place and time of the examination, fails to make himself available for the examination, the court may, without a hearing, order his commitment to the center.”
Defendant contends that this language requires the forensic examination to be conducted prior to trial. On its face, the statute does not preclude a trial court from ordering a forensic examination after trial has begun. Of course, it is better practice for the Center for Forensic Psychiatry to conduct its examination and evaluation prior to trial. But, under the circumstances of this case, we decline to find reversible error in ordering the examination and evaluation after trial had begun.
II.
Was error committed in allowing the forensic center psychologist to testify as a "court” witness?
MCL 768.21(2); MSA 28.1044(2) provides that failure of the prosecution to file a notice of rebuttal of the insanity defense precludes the admission of rebuttal evidence. As a result of the prosecution’s failure to file the requisite notice, defendant objected to the testimony of the forensic center psychologist, Dr. Jackson. Defendant claims that the trial judge’s calling the psychologist a "court witness” was merely a method of circumventing the statute.
A rebuttal witness is one called upon to contradict, repel, explain, or disprove evidence produced by the defense. See, People v Martin.
Appellant was told on July 2, 1976, that Dr. Jackson’s testimony would be heard six days later. The court then committed itself to hearing that testimony before any knowledge of what the testimony might reveal. It precluded the prosecution from calling anyone else in rebuttal should Dr. Jackson’s testimony be unfavorable to them. MCL 768.20a(7); MSA 28.1043(1)(7) gives the judge discretion to allow the prosecutor to file late notice of a rebuttal witness. It states that the prosecutor shall file the names "not later than five days before the trial of the case, or at such other time as the court directs”. Clearly, the court could have let the prosecutor call Dr. Jackson as a rebuttal witness, but chose not to do so.
The new Michigan Rules of Evidence were not in effect at the time of trial. Subsequent to March 1, 1978, when the rules took effect, MRE 706 provides that the court could appoint its own expert witness, by its own motion. Nothing comparable to this section was in force at the time. Therefore, even though we have determined Dr. Jackson to be a "court” rather than a "rebuttal” witness, under case law in effect at the time of this trial, the court could not determine a witness to be its own by simply calling the witness sua sponte.
People v Dickerson held unconstitutional a state statute requiring the court to appoint an expert witness in homicide cases. The Court, prior to the enactment of MRE 706, said:
"The power of selecting and appointing witnesses who shall, after appointment, acquaint themselves with the matter in controversy, and testify concerning the same, is in no sense a judicial act, and, if exercised by the court in accordance with the mandate of section 3, would entirely change the character of criminal procedure, and would seriously endanger, if not absolutely destroy, those safeguards which our Constitution has so carefully enacted for the protection of the accused. The most cursory examination of section 3 will disclose its vice. The court is directed to appoint one or more suitable, disinterested persons to investigate and testify. This appointment is to be made without notice to either the prosecuting attorney or the accused. The reasons which impel the court to make the selection are not of record and can never be known. The names of the selected experts cannot be indorsed upon the indictment by the prosecuting attorney as required by law, for he himself is as ignorant of their identity as is the accused. The right of one accused of crime to know in advance the names of the witnesses who will testify against him and to examine into their character, means of knowledge, etc., in order that he may properly prepare his defense, is a right as ancient as our criminal jurisprudence.” 164 Mich at 153-154.
Although we find that Dr. Jackson could not have been called by the court, we find the error to be harmless under the circumstances of this case. A copy of Dr. Jackson’s report was made immediately available to defense counsel. The court deliberately gave defense counsel an extra day adjournment to have appellant further examined in order to counteract Dr. Jackson’s testimony. No adjournment was requested in order for defendant to have further preparation time; there was no unfairness to defendant in the way the trial court handled this matter of a forensic examination. Further, if we were to grant a new trial, under MRE 706 now in effect, the testimony of Dr. Jackson as a "court” witness would now be available.
III.
Did the trial court err in allowing the psychologist’s testimony regarding defendant’s confession of the crime?
During the cross-examination of the psychologist for the defense, the prosecuting attorney asked if defendant had told the psychologist during the mental examination "that he shot and killed a person known as Linda Anderson Cook”. Over defense counsel’s objection, the witness was allowed to answer. Later, the psychologist from the forensic center related defendant’s confession to him regarding one of the murder counts.
In People v Martin, the Supreme Court decision in 1971 and not the 1977 Court of Appeal’s decision in an unrelated case of the same title referred to previously in this opinion, the potential for self-incrimination in the examining psychiatrist’s testimony where an insanity defense was asserted was discussed. The Court cited Parkin v State, wherein the Court said, "Like the decision to testify in one’s behalf and risk incrimination during cross-examination, the decision to plead insanity and tender proof is not a pathway without stones”.
In affirming defendant’s conviction in Martin, the reasoning of United States v Albright was adopted. That reasoning states:
" 'The manifest purpose of the examination in this case was, and the proper objective of a mental examination in any criminal case where a defendant’s sanity is in issue should be, to obtain knowledge not about facts concerning defendant’s participation in the criminal acts charged, but about facts concerning a defendant which are themselves material to the case. Cf. United States v Wade, 388 U.S. 218, 219, 222, 87 S. Ct. 1926, 18 L. Ed. 2d 1149 (1967). The purpose is not to prove by evidence wrested from a defendant whether he is guilty as charged but, rather, to prove whether a defendant possesses the requisite mentality to be guilty as charged, assuming that his guilt is otherwise established, or whether, legally, he cannot be held criminally responsible, irrespective of what other proof may establish he has done.’ ” Martin, supra, p 428.
Martin is not in conflict with MCL 768.20a(5); MSA 28.1043(1X5) which states:
"(5) Statements made by the defendant to personnel of the center for forensic psychiatry or to any independent examiner during an examination shall not be admissible or have probative value in court at the trial of the case on any issues other than his mental illness or insanity at the time of the alleged offense.”
In the case at bar, the testimony of the psychologist was not considered relative to defendant’s guilt. There was no jury. This was a bench trial. The testimony was probative only to the issue of the insanity of the defendant at the time of the offense and, therefore, did not violate MCL 768.20a(5); MSA 28.1043(1)(5).
IV.
Was defendant denied the effective assistance of counsel where defense counsel presented defendant’s half-brother as his only expert witness?
The evidence of defendant’s guilt was overwhelming. The only issue to be resolved in the case was defendant’s mental state during the com mission of the crime. To support defendant’s claim of insanity, Dr. Fisher, a psychologist and defendant’s half-brother, was called as the only expert by defense counsel. Prior to calling this witness, the trial court indicated that it would appoint an unrelated psychiatrist if defense counsel so desired. Defense attorney chose not to do so. From a tactical standpoint, the defense believed that defendant’s brother would have more of an impact upon the court. He stated that a psychiatrist with a working knowledge of defendant’s background would be more valuable than a psychiatrist who would be meeting the defendant for the first time.
Later, in rendering its decision, the court indicated that the evaluation of Dr. Jackson from the forensic center proved to be the testimony adopted by the court rather than that of defendant’s half-brother.
We find that the decision of defense counsel to present Dr. Fisher as the sole expert witness was a conscious choice of trial strategy. The Court, in People v Garcia, adopted the reasoning of Beasley v United States. Beasley held:
"Defense counsel must perform at least as well as a lawyer with ordinary training and skill in the criminal law and must conscientiously protect his client’s interest, undeflected by conflicting considerations.”
In People v Mays, the Court addressed the issue of a defense attorney’s judgment that one trial tactic would be more successful than another and said: "This Court will not substitute its judgment for that of trial counsel on matters of trial strategy”.
We do not know what facts were revealed to trial counsel within the ambit of the attorney-client privilege. Neither do we know whether trial counsel had other psychiatric advice regarding defendant’s mental condition which led him to believe his client’s best chance lay in not risking additional psychiatric evaluation.
We neither permit second-guessing trial counsel, nor do we speculate what the outcome of the case at bar might have been if additional expert witnesses had been introduced by defendant. We find, under the Beasley-Garcia standard, that defense attorney’s trial strategy did not deprive defendant of the effective assistance of counsel.
Other issues raised by defendant are without merit. Affirmed.
But neither defense counsel nor the assistant prosecutor brought the fact to the court’s attention prior to trial. The usual procedure would be for defense counsel to prepare the order of referral to the Center for Forensic Psychiatry, have it approved as to form by the prosecutor and then to submit it to the court for entry.
75 Mich App 6; 254 NW2d 628 (1977).
MRE 101-1102, effective March 1, 1978.
164 Mich 148; 129 NW 199 (1910).
386 Mich 407; 192 NW2d 215 (1971).
283 So 2d 817, 821 (Fla, 1970).
Martin, supra, p 426.
388 F2d 719 (CA 4, 1968).
398 Mich 250, 264; 247 NW2d 547 (1976).
491 F2d 687, 696 (CA 6, 1974).
64 Mich App 453, 457; 236 NW2d 513 (1975). | [
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Per Curiam.
On June 7, 1973, defendant (hereinafter YMCA), and third-party defendant, Luding-ton Area School District (hereinafter the school district), entered into a contract which provided that the school would have the exclusive use of the YMCA camp from September 24, 1973, to September 28, 1973. On September 23, 1973, plaintiffs, a teacher for the Ludington Area School District and his wife, were at the YMCA camp in anticipation of the school’s use of the camp beginning on the following day. During the evening, plaintiff Sharon Gartside was injured when she was thrown from a horse which she was riding at the camp. As a result of these injuries, plaintiffs filed a suit against the YMCA alleging that they negligently encouraged her to ride a very spirited and quick-tempered horse and negligently provided her with defective riding equipment. The YMCA then filed a third-party complaint against the school district for indemnification. The school district made a motion for summary judgment, GCR 1963, 117.2(1), which was granted, and the YMCA appeals.
The standard of review for determining the correctness of a ruling on a motion for summary judgment pursuant to GCR 1963, 117.2(1), is set out in Borman’s, Inc v Lake State Development Co, 60 Mich App 175, 179-180; 230 NW2d 363, 366 (1975):
"A motion based solely on subsection 1, challenges the legal sufficiency of a plaintiff’s claim and is to be considered by an examination of the pleadings alone. Todd v Biglow, 51 Mich App 346, 349; 214 NW2d 733 (1974). [The] job [of] a reviewing court is to accept as true the well-pleaded facts in plaintiffs complaint, * * * , Weckler v Berrein [sic] County Road Commission, 55 Mich App 7, 9; 222 NW2d 9 (1974), and to determine whether these claims are so 'clearly unenforceable as a matter of law that no factual development can possible [sic] justify a right to recovery.’ Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426, 431; 202 NW2d 577 (1972).”
The YMCA’s claim for indemnification is based on a provision of its contract with the school district, whereby the school district promised:
"(f) To indemnify YMCA against, and to hold YMCA, its agents and employees harmless from, all claims, demands, costs or damages (including attorneys’ fees) because of bodily injury, including death, or property damage to any person or legal entity at any time arising out of or in any way connected with School’s use of the Camp and its facilities.”
The trial court granted the school district’s motion for summary judgment on the basis that the contract provision for indemnification was only intended to apply during the period of the contract: September 24, 1973, to September 28, 1973. While this is one possible interpretation of the contract provision, the indemnity clause is not free from ambiguity on this point. Accepting the well-pleaded facts in the YMCA’s complaint as true, its claim that the indemnity provision was intended to apply to an accident which occurred on September 23, 1973, is not so clearly unenforceable as a matter of law that no factual development could possibly sustain it. Accordingly, the trial judge erred in granting the school district’s motion for summary judgment on this basis.
The school district also contends that even if the trial judge erred in granting the motion for sum mary judgment on the basis that the contract provision did not apply to an injury occurring on September 23, 1973, the order of summary judgment should be affirmed because the indemnity provision of the contract did not bind the school district to indemnify the YMCA for damages caused by its sole negligence.
Indemnity contracts, like other contracts, are to be enforced so as to effectuate the intentions of the parties, Title Guaranty & Surety Co v Roehm, 215 Mich 586; 184 NW 414 (1921). Contracts to indemnify the indemnitee for damages caused by the indemnitee’s sole negligence are not unenforceable or contrary to the public policy of this state, but see, MCL 691.991; MSA 26.1146(1). However, a contract which purportedly indemnifies one against the consequences of his own negligence is subject to strict construction and will not be so construed unless it clearly appears that it was intended to cover the indemnitee’s own negligence, Fireman’s Fund American Ins Cos v General Electric Co, 74 Mich App 318; 253 NW2d 748 (1977), Hubbert v Acme Equipment Co, 55 Mich App 313; 222 NW2d 224 (1974), Klann v Hess Cartage Co, 50 Mich App 703; 214 NW2d 63 (1973), Geurink v Herlihy Mid-Continent Co, 5 Mich App 154; 146 NW2d 111 (1966), Meadows v Depco Equipment Co, 4 Mich App 370; 144 NW2d 844 (1966). Also, indemnity contracts are construed most strictly against the party who drafts them and the indemnitee, Fireman’s Fund, supra. Recognizing these strict rules of construction, the YMCA argues that the contract provisions clearly show the parties’ intention that the school district was to indemnify the YMCA even for damages caused by its own negligence. Alternatively, the YMCA argues that even if the language used in the written contract provision does not sufficiently show the parties’ intention to have the school district indemnify the YMCA for the damages suffered in this case, the contract provision when considered in light of the situation of the parties and the surrounding circumstances, when the facts are properly developed, clearly shows the parties’ intention that the school district would indemnify the YMCA in this case.
Although indemnity contracts are strictly construed, they are to be enforced so as to effectuate the intentions of the parties. Accordingly, in ascertaining the intentions of the parties, one must consider not only the language used in the contract but also the situation of the parties and the circumstances surrounding the contract, see, Title Guaranty, supra. As the Supreme Court stated in Vanden Bosch v Consumers Power Co, 394 Mich 428; 230 NW2d 271 (1975),
"Although not 'expressly’ stated in the agreement, we are persuaded from our reading of that agreement, in light of the surrounding circumstances, that the parties intended that Consumers Power be indemnified against liability for its own negligence of the type precipitating this litigation.”
Applying this reasoning to the facts in this case, we conclude that there are some factual developments possible under the allegations in the YMCA’s pleadings which may establish its right to indemnification. We recognize that the YMCA may not be able to establish, at trial, that the parties clearly intended to provide for indemnification for the indemnitee’s own negligence, see, Fireman’s Fund, supra, Hubbert, supra, Klann, supra, see also Geurink, supra. In the cases cited above, the trial judge ruled that the indemnitees had failed to prove that the written contract provisions, when considered in light of the surrounding circum stances, clearly showed the parties’ intention to indemnify the indemnitee for his own negligence. However, these rulings on the indemnitor’s motion for a directed verdict were made after trial so that the indemnitee was given an opportunity to prove the parties’ intention.
In Meadows, supra, this Court affirmed the trial judge’s decision to grant the indemnitor’s motion for summary judgment but only because the contract provision in that case was barren of any reference to the concept of indemnity for damages caused by the indemnitee’s own negligence. In Vannoy v City of Warren, 2 Mich App 78; 138 NW2d 520 (1965), this Court affirmed the denial of a motion for summary judgment since the written contract terms were equivocal and uncertain as to this point and because the construction of those terms must wait until after the trial court has had an opportunity to consider evidence of the situations of the parties and the circumstances surrounding the contract. This reasoning is also applicable to this case. Although the YMCA may not be able to carry the heavy burden it will bear at trial of persuading the trier of facts that the parties clearly intended that the contract was to cover the YMCA’s own acts of negligence, the YMCA’s complaint does contain a claim which could be factually developed at trial so as to justify a right of recovery. Accordingly, the order of summary judgment entered under GCR 1963, 117.2(1), is reversed and this case is remanded to the trial court for further proceedings.
Reversed and remanded for further proceedings not inconsistent with this opinion. Costs to defendant-third-party plaintiffs.
In Geurink v Herlihy Mid-Continent Co, 5 Mich App 154; 146 NW2d 111 (1966), the trial court granted the indemnitor’s motion for summary judgment. However, it must be seen that in Geurink, supra, the motion was granted after trial, see White v McLouth Steel Corp, 18 Mich App 688; 171 NW2d 662 (1969). | [
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B. M. Hensick, J.
Defendant was charged with carrying a concealed weapon, MCL 750.227; MSA 28.424. He was jury convicted as charged and sentenced to 3 to 5 years imprisonment. He appeals as of right.
On September 13, 1977, at approximately 10 p.m., Detroit police officers Larry Nevers and Michael Angeluski were on street patrol in an unmarked police vehicle. They observed defendant walking down the street and directed the car’s spotlight on him. Officer Angeluski testified that they put the spotlight on defendant because there was a curfew in effect for persons under 18 years of age and they were checking for juveniles still out. Officer Nevers testified that he thought at the time that defendant was possibly a juvenile. Defendant was actually 19 years old at the time of this incident.
After placing the spotlight on defendant, Officer Nevers announced in a commanding voice that they were police officers and that they wanted to talk to defendant. Officer Nevers testified that defendant looked in their direction, reached under his shirt, ran a few steps and ducked behind a parked car. They pulled up next to the car and Officer Nevers again identified himself as a police officer. Defendant ran and Officer Nevers chased him on foot. While he was 10 to 15 feet behind defendant, Nevers saw defendant reach into his waist band area and throw a gun into some nearby bushes. Officer Angeluski also observed defendant throw a gun into some bushes. Defendant then stumbled and fell, and the officers arrested him and retrieved the gun. The gun and four live shells and one spent cartridge, found in the gun, were admitted into evidence.
On appeal, defendant raises several arguments challenging the constitutionality of the Detroit curfew ordinance. Defendant contends that the ordinance is void because it is unconstitutionally vague and overbroad, because it is an emergency enactment which is preempted by MCL 10.31; MSA 3.4(1), and because it permits the arrest of an individual without probable cause. Defendant argues that because he was initially stopped pursuant to an unconstitutional ordinance, and the seizure of the gun flowed from the illegal stop, the gun should have been suppressed at trial.
We begin our discussion of defendant’s constitutional arguments by narrowing the scope of this issue. Defendant, who was 19 years old at the time of the incident, was not a member of the class to whom the ordinance in question applies. He was not, and indeed, could not have been arrested, prosecuted or convicted for a violation of the ordinance. Defendant therefore lacks standing to attack the constitutionality of the statute as it applies to those who are 18 years old or younger. Mary v Lewis, 399 Mich 401, 416; 249 NW2d 102 (1976), Thomas v Morton Salt Co (On Rehearing), 258 Mich 231, 232; 242 NW 235 (1932).
We only address defendant’s contention that the ordinance impinges on the freedom of movement of youthful-looking persons over the age of 18. Although defendant was not charged under the curfew ordinance, we must address this question in order to determine whether the officers’ action in attempting to stop defendant and the subsequent pursuit which led to the seizure of the gun were justified. In People v Terrell, 77 Mich App 676, 679; 259 NW2d 187 (1977), this Court stated:
"The police officer’s investigatory pursuit of defendant must be tested by the Fourth Amendment’s general proscription against unreasonable searches and seizures. Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968). The inquiry demanded by Terry is a dual one.
" '* * * whether the officer’s action was justified at its inception, and whether it was reasonably related in scope to the circumstances which justified the interference in the first place.’ Terry v Ohio, 392 US at 20.”
An officer who has probable cause to believe that a misdemeanor has been committed in his presence may make an investigatory stop in order to acquire additional information to confirm or refute his belief. People v Ward, 73 Mich App 555, 561; 252 NW2d 514 (1977). However, probable cause is not sufficient to justify a warrantless misdemeanor arrest. MCL 764.15; MSA 28.874. Therefore, a police officer cannot arrest a suspected curfew violator, absent proof that the violator is in fact a juvenile.
In People v DeFillippo, 80 Mich App 197; 262 NW2d 921 (1977), lv den, 402 Mich 921 (1978); cert grt’d, — US —; 99 S Ct 76; 58 L Ed 2d 107 (1978), this Court held that the Detroit ordinance which allowed a police officer to arrest an individual for failure to produce identification was unconstitutional. The DeFillippo Court explained that while police may under certain circumstances intrude upon a person’s privacy by stopping him and asking questions, Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968), there can be no requirement that the person answer. " '[Wjhile police have a right to request citizens to answer voluntarily questions concerning unsolved crimes they have no right to compel them to answer.’ Davis v Mississippi, 394 US 721, 727 fn 6; 89 S Ct 1394, 1397, fn 6; 22 L Ed 676, 681 fn 6 (1969). Accord, Terry v Ohio, supra, at 34, 88 S Ct at 1886; 20 L Ed 2d at 913 (White, J., concurring).” 80 Mich App at 202.
In the instant case, defendant could have had no reasonable fear of prosecution under the ordinance. At most, the police officers could have asked defendant if he was a juvenile and defendant could have refused to answer. Given these circumstances, we fail to perceive any substantial infringement on defendant’s constitutional rights.
A party who seeks to strike down a statute as unconstitutional must show direct injury from its enforcement. City of Allegan v Consumers Power Co, 71 F2d 477 (CA 6, 1934). As the instant case only involves a relatively minor intrusion, we reject defendant’s contention that the ordinance infringes on the rights of youthful-looking adults.
We conclude that the suspected violation of the curfew ordinance was a valid reason for the investigatory stop of defendant and that an understandable miscalculation of age is not sufficient to question the validity of the ordinance. The subsequent observation of the gun provided the necessary probable cause to arrest defendant on the felony charge and the seizure of the gun was incident to the valid arrest.
We also reject defendant’s argument that the enactment of the Detroit curfew ordinance as an emergency ordinance is preempted by the exclusive emergency powers granted to the Governor in MCL 10.31; MSA 3.4(1).
The ordinance involved here was passed by the Detroit City Council as an emergency ordinance on August 18, 1976, following the robbing and terrorizing by youths of patrons of a rock concert at Cobo Hall on August 15, 1976. In October, 1976, the curfew provisions were made permanent with only two minor changes. See Note: Juvenile Curfew Ordinances and the Constitution, 76 Mich L Rev 109 (1977), for the background of this ordinance.
Section 4-116 of the Detroit City Charter provides an expedited procedure for immediate enactment of an ordinance at the meeting in which it is introduced where a public emergency exists. The emergency ordinance is automatically repealed on the 61st day after its enactment, unless re-enacted. This procedure eliminates the usual waiting period between passage and enactment of an ordinance.
Walsh v River Rouge, 385 Mich 623; 189 NW2d 318 (1971), which holds that the emergency powers granted to the Governor by MCL 10.31; MSA 3.4(1) are exclusive, is not applicable here. In Walsh, the City Council passed an emergency curfew ordinance which purported to give to the Mayor the power to " 'proclaim a state of emergency, in the City of River Rouge whenever he is advised by the Chief of Police that a civil disturbance, riot or civil commotion is in progress ***.’” 385 Mich at 626. At the same time the ordinance was passed, the Mayor reissued a proclamation which prohibited possession of firearms, ammunition, explosives, inflammable materials or liquids, or other dangerous weapons, within the city by any citizen except law officers; prohibited "unlawful traffic” within the city; created a 6 p.m. to 5 a.m. curfew when no person could be on the city streets except those proceeding to and from work or answering emergency calls or who had special permission; closed all liquor stores and prohibited the sale of alcoholic beverages; prohibited all assemblies of more than 5 persons "unless permission has been granted”; closed gas stations in the city except between the hours of 12 noon and 5 p.m.; and prohibited the sale of more than 5 gallons of gas to individuals with private automobiles.
Section 4-116 does not provide for the declaration of a state of emergency with all the attendant consequences as envisioned by MCL 10.31; MSA 3.4(1) and Walsh. Rather, it merely provides that an ordinance may be given immediate effect where an emergency situation requires it. Further support for this conclusion is found in the commentary to § 4-116 contained in "The Final Report Of The Detroit Charter Revision Commission”, p 9, August 3, 1973 (reprinted with corrections Febru ary, 1974), in which the Commission specifically notes the limitations imposed by Walsh on a city’s power to declare an emergency and impose emergency regulations.
Under MCL 722.754; MSA 28.342(4), a city may regulate by ordinance a curfew on minors. The provision of the Detroit City Charter which allows such an ordinance to be given immediate effect does not rise to the level of a declaration of a state of emergency as provided for in MCL 10.31; MSA 3.4(1). We therefore conclude that no preemption problem exists in the instant case.
Finally, we reject defendant’s contention that the curfew ordinance permits the arrest of an individual without probable cause. Defendant confuses the concept of an investigatory stop with the concept of an arrest. Probable cause to arrest is not necessary for an investigatory stop. People v Lillis, 64 Mich App 64, 70; 235 NW2d 65 (1975).
We have carefully reviewed defendant’s two remaining allegations of error and conclude that no reversible error occurred.
Affirmed.
The relevant provisions of the Detroit curfew ordinance are:
"Sec. 36-3-1. Public Streets, playgrounds, etc.
"It shall be unlawful for a minor to be on the public streets, playgrounds, vacant lots or other unsupervised place, if such minor is under eighteen years of age, between the hours of 10:00 P.M. and 6:00 A.M., except Fridays and Saturdays, when the time for minors sixteen and seventeen years of age shall be between 11:00 P.M. and 6:00 A.M. (Ord. No. 424-F, § 1; Ord. No. 142-H, § 1; Ord. No. 157-H, § 1.)
"Sec. 36-3-5. Exceptions to article.
"The provisions of this article do not apply to:
“(a) A minor accompanied by his or her parent, legal guardian or other adult person having the care or custody of the minor; or
"(b) A minor going to or returning from work, provided, that the minor’s hours of employment do not violate state law; provided further, that the minor possesses a signed statement issued by his or her employer within the previous ninety days setting forth the minor’s hours of employment; and provided further, that such minor shall be exempt from the requirements of this article for not more than one hour before the minor’s work day begins and for not more than one hour after the minor’s work day ends. (Ord. No. 424-F, § 5; Ord. No. 450-F, § 1; Ord. No. 144-H, § 1; Ord. No. 157-H, § 1.)” | [
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D. C. Riley, P.J.
The present matter concerns a single issue; i.e., whether the prosecution’s case in chief established the corpus delicti of first-degree, premeditated murder absent the introduction of defendant’s confession.
Defendant Nathan Wells was charged with first-degree murder, contrary to MCL 750.316; MSA 28.548. Following a jury trial, he was convicted of second-degree murder, MCL 750.317; MSA 28.549, and sentenced to life imprisonment. For the purposes of the issue on appeal, the testimony presented at defendant’s trial will be set forth in some detail.
The victim’s husband testified that he and his wife were separated. On Friday, November 12, 1976, he called his wife’s apartment and spoke to defendant, who stated that the wife was not at home at that time. The following day the witness again called the apartment and this time did speak to his wife. The next evening the witness drove to his wife’s apartment, where he discovered her body in the bedroom. A second witness testified that he accompanied the victim’s husband to the apartment and corroborated the testimony concerning the discovery of the body.
The decedent’s mother testified that she, the victim’s grandmother, and defendant (who is this witness’s cousin) went to the apartment on November 12, 1976, to help the victim pack. The mother testified that when she and the grandmother left to go home the defendant remained at the apartment with the decedent. The grandmother (defendant’s aunt) testified to these same facts.
Several police officers testified as to the condition of the body and of the apartment, and as to the investigation of the scene. Several items of evidence were removed from the apartment and blood samples were taken. Subsequently, defendant’s fingerprint was found on a candlestick that had been removed from the apartment.
A doctor from the Wayne County Medical Examiner’s Office testified that the autopsy revealed that the decedent had sustained two stab wounds and multiple abrasions to the head and neck area. There was also evidence that the victim had been sexually assaulted.
A serologist from the police crime lab testified that traces of blood were found on three of four knives that were discovered soaking in a pan of water in decedent’s kitchen and that traces of hair matching defendant’s were found on a washcloth in the apartment.
A medical technologist testified that tests were performed on a sample of seminal fluid taken from the victim’s body and on a sample of defendant’s saliva, the results of which did not exclude defendant as a possible source of the seminal fluid.
Following these witnesses, the prosecution presented the testimony of a police officer who had taken a statement from defendant. In the state ment defendant admitted choking the decedent and, believing her to be dead, having intercourse with her and then inflicting the stab wounds.
At the conclusion of the prosecution’s case, defendant moved for a directed verdict of acquittal of first-degree murder. The motion was denied and the court eventually instructed on both first- and second-degree murder.
It is a long-standing rule of law in Michigan that the corpus delicti of an offense must be established by evidence independent of the confession of the accused. People v Allen, 390 Mich 383; 212 NW2d 21 (1973), People v Kirby, 223 Mich 440; 194 NW 142 (1923), People v Lane, 49 Mich 340; 13 NW 622 (1882), People v Allen, 39 Mich App 483, 486 fn 2; 197 NW2d 874 (1972).
Prior to the Supreme Court’s decision in Allen, supra, the corpus delicti of murder was established by "proof of the dead body and evidence of an unnatural cause of death”. People v Allen, 39 Mich App at 487. See People v Jackzo, 206 Mich 183; 172 NW 557 (1919), People v Jackson, 1 Mich App 207; 135 NW2d 557 (1965). The majority opinion of this Court in Allen, supra, adhering to the traditional rule, held that the corpus delicti of felony murder did not require proof of the underlying felony independent of the defendant’s confession.
The Supreme Court in Allen, supra, reversed, adopting Judge (now Justice) Levin’s dissent in the Court of Appeals’ Allen decision. 390 Mich at 385-386. In his dissent, Judge Levin made a comprehensive argument that the corpus delicti of any offense requires proof on each of the essential elements of that offense:
"Whatever may be the correct etymological definition of the term ’corpus delicti,’ and, although there are quotations in Michigan cases from other authorities to the effect that the corpus delicti of an offense is established upon showing a specified injury and someone’s criminality as the source of the injury, the law in this state is clear that the corpus delicti of an offense is not established until the people have introduced evidence from which the trier of fact may reasonably find that acts constituting all the essential elements of the offense have been committed and that someone’s criminality was responsible for the commission of those acts.” (Footnote omitted.) 39 Mich App at 495-496.
Consistent with this argument, Judge Levin concluded that the corpus delicti of first-degree murder, including the element which distinguishes the charge from second-degree murder, must be established aliunde the confession:
"Just as the people must establish with evidence the essential element distinguishing second-degree murder from first-degree murder in order to convict an accused person of the aggravated offense, so, too, in order to prove the corpus delicti, that distinguishing element must be established by evidence independent of the accused person’s confession. Otherwise the policy underlying the rule requiring that all the elements of the offense be established independently of a confession— consistently enforced in many Michigan cases — would be eroded in the category of cases where the stakes are the highest, where the accused person has the most to lose and where one would think that the law would be the most solicitous of his rights.” (Footnote omitted.) 39 Mich App at 503-504.
Although we read the Allen rule set forth in Judge Levin’s dissent as applying to all criminal charges, one panel of this Court held that the decision was limited to felony murder, the specific charge in Allen. In People v Sparks, 53 Mich App 452; 220 NW2d 153 (1974), the Court stated:
"The requirement of independent proof is to assure that an accused not be convicted on the basis of his confession to a nonexistent crime. Proof of unnatural death provides that protection. People v Allen, supra [390 Mich 383; 212 NW2d 21 (1973)]. Defendant quotes this case and, while seeming to support defendant’s contentions, Allen is distinguishable. The decision there was only that the element of an underlying felony must be proved without defendant’s confession in a felony-murder case. Allen leaves intact the present body of corpus delicti law regarding other first-degree murder.” 53 Mich App at 459.
The Supreme Court denied Sparks’ application for leave to appeal, but worded the denial in such a manner as to cast doubt on the viability of the Sparks Court’s limitation of the Allen rule:
"On order of the Court, the application for leave to appeal is considered, and the same hereby is denied, because the appellant has failed to persuade the Court that the questions presented should be reviewed by this Court. In denying leave, this Court does not, wish to be understood as accepting the distinction between felony and premeditated murder in the application of the rule enunciated in People v Allen, 390 Mich 383; 212 NW2d 21 (1973), drawn by the Court of Appeals in deciding this case.” People v Sparks, 393 Mich 135; 224 NW2d 481 (1974).
We hold, given the Supreme Court’s position, that the Court of Appeals’ Sparks decision erroneously limited the Allen corpus delicti rule. The language of Judge Levin’s dissent was not confined solely to the felony element of felony-murder. In addition, the Sparks Court, while applying their distinction, nevertheless went on to hold that under the facts of that case premeditation could reasonably have been inferred absent the confession.
The most recent case from this Court also disagrees with the Sparks opinion. In People v Hawkins, 80 Mich App 481; 264 NW2d 33 (1978), it was held that the corpus delicti of first-degree premeditated murder requires a showing of premeditation independent of a confession. See also People v Juniel, 62 Mich App 529, 536 fn 3; 233 NW2d 635 (1975).
Applying the Allen corpus delicti rule to the case at bar, our task is to determine if the evidence presented at defendant’s trial, absent his confession, established the essential element of premeditation.
Premeditation requires a showing that the perpetrator had sufficient time to think about his actions before the commission of the crime and evaluate the consequences and alternatives. People v Vail, 393 Mich 460; 227 NW2d 535 (1975), People v Morrin, 31 Mich App 301; 187 NW2d 434 (1971). Premeditation can be established from reasonable inferences drawn entirely from circumstantial evidence. People v Hoffmeister, 394 Mich 155; 229 NW2d 305 (1975), People v Jesse Smith, 81 Mich App 190; 265 NW2d 77 (1978).
While the testimony presented in the case at bar, absent the confession, created a strong circumstantial inference that defendant caused the victim’s death, we find lacking any evidence by which the jury could reasonably have inferred the existence of premeditation. See People v Hawkins, supra. Apart from the confession there was no evidence regarding the actual commission of the offense. There was no evidence of prior threats or ill feelings between defendant and the deceased, no evidence of any suspicious or inculpatory conduct by defendant, either before or after the crime, and no evidence that defendant arranged the circumstances or intentionally procured a weapon to effectuate the crime. See People v Jesse Smith, supra at 199-200.
The prosecution argues that the nature and number of the victim’s injuries is circumstantial evidence that defendant planned the crime. This precise argument has been rejected by the Supreme Court:
"Hoffmeister moved for a directed verdict, arguing that 'there is no evidence from any witness that [Hoff-meister] did form or did any act with premeditation’.
"The prosecutor' responded that 'the nature of the wounds, [and] the number of wounds’ inflicted on the deceased together with his 'several moments with’ her were sufficient facts from which the jury could reasonably infer premeditation and deliberation.
"The brutality of a killing does not itself justify an inference of premeditation and deliberation. 'The mere fact that the killing was attended by much violence or that a great many wounds were inflicted is not relevant [on the issue of premeditation and deliberation], as such a killing is just as likely (or perhaps more likely) to have been on impulse.’ ” (Citation omitted.) People v Hoffmeister, supra at 159.
Accordingly, we conclude that there was insufficient evidence presented to establish the required element of premeditation absent defendant’s confession. The trial court thus erred in denying defendant’s motion for a directed verdict on first-degree murder. People v Hoffmeister, supra. Even though defendant was eventually convicted of second-degree murder, a new trial is mandated since the jury was improperly instructed on first-degree murder, creating a possibility that the jury invalidly compromised their verdict. People v Vail, supra.
Reversed and remanded.
This factual holding may have been the reason that the Supreme Court, although apparently in disagreement with the legal discussion, denied the application for leave. See People v Hawkins, 80 Mich App 481, 485 fn 2; 264 NW2d 33 (1978).
"Thus, where a jury is permitted consideration of a charge unwarranted by the proofs there is always prejudice because a defendant’s chances of acquittal on any valid charge is substantially decreased by the possibility of a compromise verdict. For this reason it is reversible error for a trial judge to refuse a directed verdict of acquittal on any charge where the prosecution has failed to present evidence from which the jury could find all elements of the crime charged.” People v Vail, 393 Mich 460, 464; 227 NW2d 535 (1975). | [
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Per Curiam.
Defendant was convicted of fraudulently receiving aid to dependent children support payments in violation of MCL 400.60; MSA 16.460. On September 19, 1977, she was sentenced to two years probation, the terms of which included a fine, court costs and restitution. A six-month county jail sentence was to be imposed if defendant failed to satisfy the terms of probation.
Defendant appeals, objecting to certain remarks of the plaintiff, which defendant contends constituted an improper appeal to the jurors’ civic duty and to their individual financial interests as taxpayers. While the remarks to which the defendant now objects were improper, the prosecutor’s argument clearly was not such as to give rise to a
"miscarriage of justice”. People v Robinson, 386 Mich 551; 194 NW2d 709 (1972), People v Small, 67 Mich App 580, 586; 242 NW2d 442 (1976). See also MCL 769.26; MSA 28.1096. Neither was the plaintiff’s argument comparable to the very preju dicial course taken by the prosecutor in People v Gloria Williams, 65 Mich App 753; 238 NW2d 186 (1975), or People v Biondo, 76 Mich App 155; 256 NW2d 60 (1977), lv den, 402 Mich 835 (1978).
In reviewing the evidence, we find that the proofs of the people for conviction were overwhelming. Further, defendant made no objection to the plaintiff’s remarks at trial; the remarks were not so heinous that their effect could not have been cured by a cautionary instruction. Therefore, we find the unobjected-to remarks to be harmless error. People v Small, at 585-586 and cases cited therein. People v Swan, 56 Mich App 22; 223 NW2d 346 (1974).
People v Miller, 49 Mich App 53; 211 NW2d 242 (1973), and People v Hatfield, 46 Mich App 149; 207 NW2d 485 (1973), have no application to the case at bar, since the late filing of a brief does not constitute an admission. Defendant’s additional claims of error are without merit, under MRE 801(c) and People v Chamblis, 395 Mich 408; 236 NW2d 473 (1975).
Affirmed. | [
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D. F. Walsh, P.J.
Defendant Department of Treasury, Franchise Fee Division, appeals the order of the Corporation Tax Appeal Board granting plaintiff railroad’s petition for franchise fee refund for the years 1973 and 1974 and reversing a franchise fee deficiency assessed against plaintiff by defendant for 1972. On cross-appeal plaintiff seeks reversal of the board’s order denying plaintiff’s petition for franchise fee refunds for the years preceding 1973 and for reversal of deficiencies assessed against plaintiff by defendant for 1968 through 1974, excluding 1972.
Plaintiff is a Virginia corporation with principal offices in Cleveland, Ohio. A portion of the railroad owned by plaintiff is operated in Michigan. Until the repeal in 1977, of the corporation fees, taxes and charges act, MCL 450.301 et seq.; MSA 21.201 et seq., plaintiff was obligated to pay an annual franchise fee in Michigan.
From 1968 to 1974, inclusive, plaintiff filed an annual report and paid a franchise fee based thereon, as required by the now repealed act. MCL 450.304; MSA 21.205. With respect to each of those years, deficiencies were assessed by defendant against plaintiff. In each instance, plaintiff applied under § 9 of the act (MCL 450.309; MSA 21.210) for a redetermination of its franchise fee. The redeterminations were timely appealed by plaintiff to the Corporation Tax Appeal Board. The appeals were consolidated for hearing before the board in 1975. Prior to hearing, plaintiff sought leave to amend its petitions for redetermination. The amended petitions added the allegation that defendant had utilized an incorrect formula in computing plaintiff’s annual franchise fee for each of the years in question, being 1969 through 1974. Plaintiff’s request to amend its petitions was granted. The board’s opinion was issued on August 30, 1977.
We address four issues on appeal:
1. Did the board err in ruling that consideration of issues raised in petitions for refund of franchise fees for the years preceding 1973 was barred by the three-year statute of limitations set forth in § 10 (MCL 450.310; MSA 21.210[1]) of the corporation fees, taxes and charges act?
2. Did the board err in ruling that the redeter-mination made by defendant for the 1972 tax year was void because it was based on a field audit conducted "some time after additional information was requested by [defendant] and supplied by [plaintiff]”?
3. Did the board err in ruling that the wrong formula had been used in computing plaintiff’s franchise fee?
4. Did the board err in ruling that deficiencies assessed against plaintiff by defendant were proper and necessary because plaintiff used an incorrect accounting system in determining its paid up capital and surplus?
I. Amended Petition for Refund
On January 30, 1976, plaintiff filed amended petitions for redetermination of franchise fees for the years 1969 through 1974. It was plaintiff’s position that it had paid excess franchise fees for those years based on erroneous calculation of the relevant portion of its paid-up capital and surplus. According to plaintiff, the formula which had been used by plaintiff at the direction of defendant did not satisfy the legislatively prescribed formula set forth in MCL 450.305b; MSA 21.208(2).
1973 A ACS, R 450.68, provides that pleadings before the Corporation Tax Appeal Board may be amended at any time prior to 10 days before the initial hearing and thereafter by leave of the chairman of the board. Citing this rule, the acting chairman granted plaintiiFs request to file the amended petitions.
In ruling on plaintiiFs request for redetermination based on alleged use of an improper formula, however, the board found that the amended petitions sought the relief provided for under § 10 of the act and that, therefore, § 10’s three-year statute of limitations applied. Issues raised in the amended petitions for refunds, therefore, were not considered for years preceding 1973. This was error.
Plaintiff filed proper and timely petitions for redeterminatións and appeals for each of the years at issue under § 9 of the act. That section contemplated not only reversal of incorrect deficiency assessments but also refund of excess franchise fees paid by corporate taxpayers. It was defendant who was responsible for final calculation of corporate franchise fees. MCL 450.304; MSA 21.205. Under §9 the appeal board was authorized to consider any issue pertinent to defendant’s determination. The chairman of the board, in the proper exercise of his discretion, determined that amendment of the petitions would be allowed. The allocation formula issue (see Issue III, infra) was, therefore, properly before the board as to all years for which plaintiff had timely filed for redetermi-nation under § 9 of the act and which were included in its amended petitions.
II. 1972 Field Audit
On May 15, 1972, plaintiff filed its 1972 annual report and paid its franchise fee based thereon. In April 1973, defendant requested a complete breakdown of items included in the report under the heading "Other deferred credits”. A field audit had begun at plaintiffs home office on October 4, 1972. From June to August 1973, plaintiff and defendant corresponded regarding further explanation of certain of the liabilities listed in plaintiffs 1972 annual report. The field audit was concluded on August 17, 1973. A determination of deficiency, based on this audit, was issued on October 9, 1973.
In Borden, Inc v Dep’t of Treasury, 391 Mich 495; 218 NW2d 667 (1974), an evenly divided Supreme Court affirmed an opinion of this Court (43 Mich App 106; 204 NW2d 34 [1972]) which had held that the Department of Treasury was without power to recompute a corporation’s franchise fee after having accepted the corporation’s annual report and franchise fee. A majority of the participating justices held similarly in Clark Equipment Co v Dep’t of Treasury, Revenue Division, 394 Mich 396; 230 NW2d 548 (1975).
The instant record clearly indicates that plaintiffs 1972 annual report and the franchise fee it computed based on that report were never accepted by defendant. The board, therefore, erred in relying on Borden and Clark in reversing the 1972 deficiency assessment.
We further note that the issue of defendant’s authority to conduct audits at anytime for the purpose of determining corporate franchise fee liability was recently definitively resolved by the Michigan Legislature. MCL 450.321; MSA 21.213(1); 1978 PA 392, an act approved August 1, 1978, and ordered to take immediate effect, provides:
"All audits performed by or at the direction of the department of treasury for the purpose of determining liability for a corporate franchise fee levied pursuant to former Act No. 85 of the Public Acts of 1921 [MCL 450.301 et seq., supra], and all payments received and refunds made on the basis of those audits before the repeal of former Act No. 85 of the Public Acts of 1921 are declared to be valid and to have been in fulfillment of the legislative purpose to provide for fair administration and enforcement of that act.”
III. Computation of Railroad’s Franchise Fee
Each of plaintiffs petitions of appeal was amended by addition of the following paragraph:
"Appellant [i.e., plaintiff] alleges that its Michigan Franchise Fees for all years in issue in this proceeding, being 1969 through 1974, have been incorrectly computed by the Corporation and by the Franchise Fee Division, since a weighted average has been used in the allocation of Appellant’s tax base to Michigan, under Section 5b of the Fees, Taxes and Charges Act, MCL 450.305b; MBA [sic] 21.208, whereas the plain language of that section calls for allocation on the basis of a simple average of the railroad’s passenger-mile and ton-mile fractions, separately computed and individually weighted by the ratio of gross receipts from passenger transportation to total gross receipts from all transportation, and by the ratio of gross receipts from freight transportation to total gross receipts from all transportation respectively.”
MCL 450.305b; MSA 21.208(2) set forth the formula to be used in determining the annual franchise fee payable by railroad companies:
"Sec. 5b. For the purpose of determining the annual franchise fee, the tax payable by a railroad company shall be measured by that portion of its paid-up capital and surplus determined by the average of its passenger- mile and ton-mile fractions, separately computed and individually weighted by the ratio of gross receipts from passenger transportation to total gross receipts from all transportation, and by the ratio of gross receipts from freight transportation to total gross receipts from all transportation, respectively: Provided, That in computing the tax of a non-operating railroad there shall be excluded that portion of its paid-up capital and surplus as the ratio of the value of its property released to an operating railroad bears to the total value of its assets.”
For many years defendant has utilized a "weighted average” formula in computing the Michigan franchise fees payable by interstate railroads. There seems to be little argument that this formula fairly accurately reflected the actual amount of plaintiffs business activity attributable to Michigan. Plaintiff argues, however, that this formula is not the formula described in the above-quoted § 5b of the statute.
As noted above (Issue I), the board erroneously refused to consider this issue with respect to the years preceding 1973. With respect to 1973 and 1974, however, the board agreed with the plaintiff that the formula provided for by statute had not been used. Plaintiff’s petitions for refunds for those years were granted.
Our review of the statutory language persuades us that the board’s understanding of that language was correct, and that the "weighted average” formula used by defendant was not the formula mandated by § 5b of the statute.
Defendant now argues that, under § 5e of the act (MCL 450.305e; MSA 21.208[5]), it had authority to compute corporate franchise fees to reflect more properly business activity attributable to Michigan. Section 5e(4) provided that, if it appeared that business activity attributable to Michigan was not reflected in an allocation factor determined pursuant to § 5b, the defendant could apply "any other similar method calculated to effect a fair and proper allocation according to the receipts, activity, business and capital reasonably attributable to this state”. However, §5e also provided that defendant was to publish promptly its rulings with respect to application of adjusted formulas under §5e. The rulings were to be promulgated in conjunction with the Michigan Department of Revenue.
The record indicates that, in 1952, a handwritten message was sent by Mrs. Alma Marzke, the then Administrator of the Corporation Franchise Fee Division, to plaintiff. This message informed plaintiff that the "weighted average” formula would be used by the Franchise Fee Division in computing the railroad’s annual franchise fee. Plaintiff used this formula until consultation with independent counsel in 1975-1976. It was at that time that plaintiff first realized that the plain language of § 5b did not call for a "weighted average”.
Although the Franchise Fee Division has authority under §5e to devise new formulas to further the express legislative intent that franchise fees reflect the amount of a corporation’s business activity attributable to Michigan, the instant record is insufficient for us to determine if the division devised such a formula for railroads engaged in interstate business and properly published it pursuant to §5e(4) and the final paragraph jof §5e. The board did not address the issue of the applicability of § 5e. We, therefore, remand to the board for initial determination of this issue.
IV. Accounting Method
In assessing deficiencies for the years in ques tion, defendant expressed its disagreement with certain accounting procedures used by plaintiff. We affirm the board’s ruling that plaintiff’s reserve for deferred Federal income taxes is to be treated as part of "surplus” for the purpose of computing its franchise fee. National-Standard Co v Dep’t of Treasury, 384 Mich 184; 180 NW2d 764 (1970).
Conclusion
1. With respect to the Corporation Tax Appeal Board’s ruling that consideration of issues raised in plaintiff’s amended petitions was precluded for years preceding 1973 by virtue of the three-year statute of limitations contained in § 10 of the corporation fees, taxes and charges act, the board is reversed.
2. With respect to the board’s ruling that "determinations and redeterminations assessing deficiencies based on field audits are void” the board is reversed.
3. With respect to the board’s ruling as to the propriety of the "weighted average” allocation formula utilized by the Corporation Franchise Fee Division the board is affirmed. Although we affirm the board’s ruling that the "weighted average” formula does not comply with the plain language of § 5b, we remand for consideration of the possible applicability of § 5e. If the board determines that defendant devised and published an alternative formula in compliance with the provisions of § 5e of the act, that alternative formula is to be applied to all years in question, being the years 1969 through 1974. If the board decides that defendant did not devise and publish an alternative formula in compliance with the provisions of § 5e, the formula provided for in § 5b of the act is to be applied, as interpreted by the board in its opinion, to the years 1969 through 1974.
4. With respect to the board’s ruling that the accounting method utilized by the Corporation Franchise Fee Division was correct the board is affirmed. National Standard Co v Dep’t of Treasury, supra.
Reversed in part, affirmed in part, but remanded for redetermination and further proceedings consistent with this opinion. We retain jurisdiction. No costs, a public question. | [
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Danhof, C.J.
These two felony-murder cases arose out of an armed robbery. On October 18, 1972, defendants allegedly robbed a pharmacy and during the perpetration of that robbery shot and killed the pharmacist, Dr. Werra. On October 4, 1973, after a jury trial, defendant Dietrich was found guilty of first-degree murder, MCL 750.316; MSA 28.548. Defendant Cole’s trial was not held until November 18, 1974, because of difficulties in locating him and securing his presence at trial. He was also found guilty by a jury of first-degree murder. Both defendants were sentenced to life imprisonment and appeal as of right. The evidence introduced at each of the defendants’ trials, if believed by the jury, clearly established each defendant’s guilt beyond a reasonable doubt. The evidence indicated that on the night in question, the defendants were riding around in an automobile with two other friends when they asked to be let out. After letting the defendants out of the car, the friends drove around the block. At approximately 8:40 p.m., two persons entered the Butter-worth Pharmacy. The only other people in the store at that time were the pharmacist and a stock boy, Thomas Howland, who was stocking shelves. Howland heard the front door open and someone talking to the pharmacist. He heard two loud noises which he presumed were firecrackers, so he stopped stocking the shelves and went to see what had happened. He then saw one man run past him out the door and another man, wearing a ski mask, standing near the cash register. The man with the mask told Howland to stay where he was because they had a gun. He then took some money from the cash register and ran out the door. Defendants returned to the car and Cole said, "Get out of here. I shot someone”. The four people then returned to an address on Wavell where they had been staying with Susan Ellis.
Early the next morning, defendants had a conversation with Ms. Ellis in which defendant Cole explicitly admitted his participation in the robbery and defendant Dietrich implicated himself in the robbery by correcting some of Cole’s misstatements concerning the events that took place during the robbery. Later that day, these individuals left in an automobile for Kentucky. On the way, Dietrich, who was riding in the back seat, tossed an article of clothing to Cole, who was in the front seat. It was of black and blue woolen material. Dietrich said he could not be identified since he was wearing a ski mask. Cole then threw the article out of the car.
These cases were consolidated on appeal because they raised one common issue and were both remanded back to the trial court for an eviden-tiary hearing on this issue. However, except for this one common issue, these cases raise different issues. For this reason and because defendants were tried separately, this opinion will discuss the issues raised by each defendant separately.
The Dietrich Trial
After trial, defendant’s attorney learned that some of the prosecution’s witnesses received monetary rewards from various organizations, such as Silent Observer and the Kent County Pharmaceutical Association (KCPA), in connection with this case. Defendant contends that the prosecutor knew or should have known of these rewards or at least of the possibility of them, because of the cooperation between the prosecutor, the police, and these organizations. The prosecutor did not disclose any information relating to these rewards either to the defendant before trial or to the jury at trial. Defendant claims that the failure to disclose this material information pertaining to the credibility of these witnesses requires reversal, see United States v Agurs, 427 US 97; 96 S Ct 2392; 49 L Ed 2d 342 (1976), Giglio v United States, 405 US 150; 92 S Ct 763; 31 L Ed 2d 104 (1972), People v Atkins, 397 Mich 163; 243 NW2d 292 (1976), People v Mata (On Remand), 80 Mich App 204; 263 NW2d 332 (1977), People v Nettles, 41 Mich App 215; 199 NW2d 845 (1972).
As mentioned before, on appeal this case was remanded for an evidentiary hearing on this issue. At that hearing, a witness connected with the Silent Observer Program testified that he did not contact any of the witnesses in defendant’s trial either before or during trial. He testified that a reward was paid to Roger Mollema but that he was not contacted about it until November 16, 1973. Another witness testified that she received an award from a veteran’s club in which the victim was a member but that she was not contacted about this until after trial. Also, she testified that prior to trial she had no expectation of receiving a reward. A police detective testified that he was aware that rewards were paid by the KCPA on March 6, 1974, but that he did not become aware of these rewards until after trial. A newspaper article, dated October 20, 1972, was introduced into evidence and it stated that a $500 reward was being offered by the KCPA for information leading to the arrest of the defendants. After the hearing, the trial judge denied defendant’s motion for a new trial since he found that none of the witnesses were offered rewards until after trial. This finding will not be set aside unless it is clearly erroneous, GCR 1963, 517.1.
Defendant’s argument is premised on the basis that the prosecutor has the duty to protect the interests of all citizens and to seek justice, not just convictions, Hurd v People, 25 Mich 405 (1872), People v Nettles, supra. The prosecutor is obligated to present the trier of fact not only with incriminating evidence against the defendant but also with any material evidence exculpating the defendant. This duty to disclose also extends to material impeaching information, Napue v Illinois, 360 US 264; 79 S Ct 1173; 3 L Ed 2d 1217 (1959).
The general standard for materiality in this context is set out in United States v Agurs, supra, at 112-113.
"The proper standard of materiality must reflect our overriding concern with the justice of the finding of guilt. Such a finding is permissible only if supported by evidence establishing guilt beyond a reasonable doubt. It necessarily follows that if the omitted evidence creates a reasonable doubt that did not otherwise exist, constitutional error has been committed. This means that the omission must be evaluated in the context of the entire record. If there is no reasonable doubt about guilt whether or not the additional evidence is considered, there is no justification for a new trial. On the other hand, if the verdict is already of questionable validity, additional evidence of relatively minor importance might be sufficient to create a reasonable doubt.” (Footnotes omitted.)
Almost all the impeaching evidence cases cited by defendant involve a promise or expectation of leniency for an accomplice and/or addict informer, see People v Atkins, supra, People v Mata, supra, People v Nettles, supra. Defendant argues that the only difference between these addict/accomplice-informer cases and this monetary reward case is the degree and kind of benefit conferred upon the witness in exchange for the testimony. Defendant claims that this difference does not justify the prosecutor’s failure to disclose and that this information should have been presented to the trier of fact to be considered together with all the other evidence.
Although defendant’s arguments are not unreasonable, there are other factual differences in this case which distinguish it from cases in which testimony was given in exchange for a promise of leniency. One important distinction in this case is that there was no evidence that any of the witnesses were promised rewards, expected to receive a reward or even knew of the possibility of a reward before they testified at defendant’s trial. As the Supreme Court stated in People v Atkins, supra, at 174, "The focus of required disclosure is not on factors which may motivate a prosecutor in dealing subsequently with a witness, but rather on facts which may motivate the witness in giving certain testimony”.
The possibility of receiving a monetary reward would influence and motivate a witness to give false testimony only if the witness was aware of the possibility of a reward. In this case, there is no evidence that any of the witnesses were aware, before trial, of the possibility of a reward. Furthermore, this is not a case in which it would be atypical for a witness to not have an expectation of consideration for his cooperation, cf. People v Atkins, supra. These witnesses are not addict informers, accomplices or co-conspirators. In United States v Washington, 550 F2d 320 (CA 5, 1977), the Court even questioned whether this type of monetary reward offer was the type of "exculpatory evidence” contemplated by Brady v Maryland, 373 US 83; 83 S Ct 1194; 10 L Ed 2d 215 (1963).
After a review of the record, we conclude that the trial judge’s findings that the witnesses were not aware of the reward until after trial and did not testify with an expectation of consideration were not clearly erroneous. Since none of the witnesses knew of these rewards before testifying, the prosecutor was not under a duty to disclose this information concerning these future possibilities, see People v Atkins, supra, at 174. Further more, considering all the evidence in this case, we conclude that the omitted information, if introduced, would not have raised á reasonable doubt about the defendant’s guilt that did not otherwise exist, see United States v Agurs, supra, at 112, Washington, supra, United States v Masri, 547 F2d 932 (CA 5, 1977). Therefore, any possible error was harmless.
The second issue raised by defendant concerns the admission into evidence of testimony by Ms. Ellis about a conversation which took place between Dietrich, Cole and herself on the morning after the robbery. Ms. Ellis testified that Dietrich and Cole came into her room around 9:30 a.m. and she also testified as follows:
"Q. What were you referring to?
"A. I was referring to the shooting the night before.
"Q. What, if anything, was said after you said that?
"A. Terry Cole said he was the one that shot the man. »
"Q. Terry said he shot the man?
"A. Yes. He said, T shot the man.’
"Q. All right, please continue.
"A. And I asked him, 'Why?’ Terry said they were just robbing him. And then he went into detail about how he went into the store and went behind the counter and the man was sitting on a chair behind the counter, or a wall — I don’t remember exactly what he said, but he said the man was sitting behind a counter, I believe, and he went in and the man came after him. He said that he turned around, shot the gun, and then he turned to run. And he couldn’t remember whether the gun went off or not. So he turned around, looked again when he got to the door, and the man was right there, so he shot it again. And I believe he said that he had only shot it once, and that is when Skippy said, 'No, you shot him twice.’ ”
At trial, defendant objected to the admission of this testimony into evidence on the basis that the references to Cole’s statements were inadmissible hearsay. The prosecutor argues that these statements are admissible in Dietrich’s trial as an adoptive admission, see People v Greeson, 230 Mich 124; 203 NW 141 (1925), see also MRE 801(d)(2). Defendant contends that even if these statements are considered adoptive admissions, they are inadmissible since they were adopted by defendant’s silence, see People v Bobo, 390 Mich 355; 212 NW2d 190 (1973), People v Bigge, 288 Mich 417; 285 NW 5 (1939), People v Parks, 57 Mich App 738; 226 NW2d 710 (1975).
If defendant had been silent when Cole made these statements, then this evidence would not be admissible as an adoptive admission, see Bobo, supra, Bigge, supra. However, the defendant was not silent, but rather, he corrected those statements made by Cole which he thought were incorrect. The circumstances surrounding this conversation and the defendant’s statements in response to Cole’s statements distinguish this case from the holding and rule announced in Bobo, supra.
Even though the introduction of this testimony does not infringe on defendant’s right to remain silent, the use of adoptive admissions in criminal cases is still not favored, see People v Lowe, 71 Mich App 340; 248 NW2d 263 (1976), People v Parks, supra, see also People v Kelley, 32 Mich App 126; 188 NW2d 654 (1971). However, adoptive admissions are- admissible when it clearly appears that the defendant understood and unambiguously assented to the statement made, People v Lowe, supra, Naples v United States, 120 US App DC 123; 344 F2d 508 (1964). From the circumstances surrounding this conversation, it clearly appears that defendant adopted and assented to Cole’s statement. Defendant’s response shows that he heard Cole’s statement and had the ability to respond to it. Furthermore, the statement demonstrates that Dietrich was motivated to deny or correct those portions of Cole’s statement which he thought were untrue. Also, the fact that these statements were made to a mutual acquaintance and that the conversation resulted in a decision that they would all leave the state supports the conclusion that the defendant adopted and/or acquiesced in Cole’s statement. Therefore, in view of the circumstances surrounding this conversation and the indicia of reliability they provide, we do not think the trial judge erred in admitting this testimony into evidence.
The third issue raised by defendant concerns the prosecutor’s attempt to introduce into evidence a statement made by defendant in which he admitted his involvement in another robbery. Evidence which shows or tends to show that the accused has committed another offense wholly independent of and unconnected with that offense for which he is on trial is generally irrelevant and inadmissible, People v Robinson, 386 Mich 551; 194 NW2d 709 (1972). The prosecutor argues that this evidence was admissible under MCL 768.27; MSA 28.1050, to prove defendant’s scheme or plan. The defendant objected to the introduction of this evidence at trial and the trial judge properly sustained his objection. The defendant did not request a special curative instruction or make a motion for a mistrial. On appeal, defendant claims that the prosecutor’s interjection of this testimony into the proceeding requires reversal because the prosecutor should have anticipated this testimony in response to his questioning.
Although the prosecutor should have anticipated this testimony in response to this question, we do not think the error in this case was so offensive to the maintenance of a sound judicial process that it can never be regarded as harmless, see People v Adan, 83 Mich App 326; 268 NW2d 397 (1978), People v Wilkins, 82 Mich App 260; 266 NW2d 781(1978), People v Swan, 56 Mich App 22; 223 NW2d 346 (1974), since the trial judge excluded this testimony from evidence, see People v Willie Lee Lewis, 31 Mich App 433; 188 NW2d 107 (1971), People v Farley, 13 Mich App 132; 163 NW2d 692 (1968), and the prosecutor did not attempt to continue this line of questioning or mention this testimony in his closing argument. Furthermore, considering the other evidence against defendant, any error in this case was harmless beyond a reasonable doubt, see Swan, supra. This testimony was excluded from evidence by the trial judge. Also, although no curative instruction was requested or given, the jury was instructed to consider only the evidence produced in court.
Defendant also raises two issues which relate to the prosecutor’s use of defendant’s prior convictions to impeach his credibility. At the beginning of the trial, defendant made a motion to exclude his prior convictions from being admitted into evidence. In making this motion, defendant’s attorney stated that the defendant had a prior felony conviction for breaking and entering and a misdemeanor conviction for loitering. The trial judge, in the exercise of his discretion, denied defendant’s motion. On appeal, defendant contends that the trial judge erred reversibly in denying his motion because the trial judge did not have sufficient information concerning defendant’s criminal record to effectively exercise his discretion, see People v Farrar, 36 Mich App 294; 193 NW2d 363 (1971). Even though the record does not show the date of defendant’s convictions, the record demonstrates that the trial judge was aware of the nature and number of convictions. Defendant does not claim on appeal that the convictions were so old that their probative value was lost. In conclusion, a review of the record does not support defendant’s claims but rather indicates that the judge had sufficient information to properly exercise his discretion.
In a related issue, defendant claims that reversible error occurred when the prosecutor cross-examined the defendant about his arrest for drunk and disorderly conduct. Defendant on direct examination admitted that he had been convicted of breaking and entering. On cross-examination, the prosecutor asked defendant, "You mentioned arrest and conviction in Florida. Were you ever arrested and convicted for anything else?” Defendant answered, "I was arrested in Kentucky for some drunk and disorderly conduct”. Defendant did not object, at trial, to the admission of this evidence. On appeal, defendant argues that the admission of this testimony requires reversal because the offense was only a misdemeanor which did not involve crimen falsi and because the testimony referred to an arrest, not a conviction.
In People v Renno, 392 Mich 45; 219 NW2d 422 (1974), the Supreme Court held that it was reversible error to impeach a defendant with misdemeanor and municipal ordinance convictions, but that case was not decided until after the trial in this case. Renno, supra, does not apply retroactively to this case because Dietrich had already acknowledged his prior felony conviction on direct examination and because he did not fully preserve this issue by objecting at trial, People v Sanders, 394 Mich 439; 231 NW2d 639 (1975).
Defendant also claims that it was reversible error to admit this evidence of defendant’s arrest without proof of a conviction, see People v Falkner, 389 Mich 682; 209 NW2d 193 (1973), People v Rappuhn, 390 Mich 266; 212 NW2d 205 (1973). However, if there was any error in this case, it does not require reversal. First, it should be noted that defendant’s answer was not responsive to the prosecutor’s question. The prosecutor asked defendant if he had ever been arrested and convicted of anything else but defendant responded that he was arrested for drunk and disorderly conduct. This unresponsive answer to a proper question does not justify reversal, see People v Tutha, 276 Mich 387; 267 NW 867 (1936), People v Petrov, 75 Mich App 532; 255 NW2d 673 (1977). Also, there is no indication that the prosecutor was deliberately attempting to interject inadmissible evidence into the trial. Defense counsel, at the beginning of trial, mentioned that defendant had two prior convictions. Defendant, on direct examination, acknowledged his conviction for breaking and entering. Since he did not mention the misdemeanor conviction, it seems very likely that the prosecu tor’s question was intended to elicit testimony about this other conviction. Furthermore, defendant did not object at trial to the admission of this testimony. Considering the other evidence against defendant, there is no reasonable possibility that the admission of this testimony into evidence resulted in a miscarriage of justice, MCL 769.26; MSA 28.1096.
Defendant also assigns as error the trial judge’s failure, upon request, to instruct the jury on the lesser included offense of second-degree murder. The trial judge denied defendant’s request because he did not think there was sufficient evidence to support a conviction of second-degree murder, see People v Carter, 387 Mich 397; 197 NW2d 57 (1972). At the time of trial, People v Carter, supra, was the controlling Supreme Court case on this issue but since trial, the Supreme Court has decided a number of significant cases concerning this issue, see People v Crawl, 401 Mich 1; 257 NW2d 86 (1977), People v Jenkins, 395 Mich 440; 236 NW2d 503 (1975), People v Carter, 395 Mich 434; 236 NW2d 500 (1975), People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975). In People v Carter, 395 Mich 434; 236 NW2d 500 (1975), the Supreme Court held that second-degree murder is a necessarily lesser included offense of felony-murder. In Ora Jones, supra, the Supreme Court held that an instruction on a necessarily lesser included offense must be given upon request. People v Lovett, 396 Mich 101; 238 NW2d 44(1976), and People v Allen, 80 Mich App 786; 265 NW2d 47(1978), apply Ora Jones, supra, retroactively. In People v Crawl, supra, the Supreme Court held that it was error to fail to give an instruction on second-degree murder in a felony-murder case when the defendant had requested one. The con trolling opinion in Crawl, supra, does not expressly resolve the issue of whether People v Carter, 395 Mich 434; 236 NW2d 500 (1975), is to be retroactively applied. Crawl, supra, was one of the cases held in abeyance while People v Carter was decided, see, People v Crawl, 401 Mich at 7. Since this issue was preserved by a proper and timely request for an instruction on second-degree murder and since this judgment of conviction is pending on an appeal as of right, we conclude that the holding in People v Crawl, supra, should be extended to apply in this case. However, retrial is not required. Instead, we remand for entry of a judgment of conviction of the lesser included offense of second-degree murder and for resentenc-ing, see People v Herbert Ross, 73 Mich App 588, 594; 252 NW2d 526 (1977), provided, however, that if the prosecuting attorney, in his discretion, determines that justice would be better served by retrial on the felony-murder charge, the trial court shall, upon notification by the prosecutor prior to resentencing, vacate the judgment of conviction of second-degree murder and grant a new trial on the felony-murder charge, People v Archie Smith, 396 Mich 825; 238 NW2d 536 (1976).
The Cole Trial
Defendant Cole also contends that it was reversible error for the prosecutor to fail to disclose the fact that certain witnesses at his trial had been paid monetary rewards. Cole’s trial did not take place until November, 1974. By this time, defendant Dietrich had already been convicted by a jury and the witnesses who testified at Dietrich’s trial had already received their monetary rewards. By the time of Cole’s trial, the prosecutor was aware that the witnesses knew that rewards had been offered and paid and this fact distinguishes this case from Dietrich’s. However, considering the other circumstances surrounding this case, we conclude that the prosecutor did not commit reversible error by not disclosing to the jury the information about these rewards.
The primary reason why reversal is not required is that there was no evidence that any of these witnesses had any expectation of another or further rewards for their testimony in this case. The rewards that had been offered were all paid out after Dietrich’s trial. Presumably, the rewards were offered and paid for either the information that led to these defendants’ arrests or for the testimony given at Dietrich’s trial. Since all the allotted reward money had been paid out, it seems unlikely that the witnesses expected further rewards for their testimony in Cole’s trial. Again, this is not a case in which it would be atypical for a witness not to expect consideration in exchange for his testimony, compare, Atkins, supra. There was no evidence that any of the earlier rewards were revocable or that the witnesses feared losing their reward money if they changed their testimony at Cole’s trial. In conclusion, in the absence of any evidence to the contrary, we do not think the fact that a monetary reward was offered and paid to some witnesses at an earlier trial of one accomplice would motivate that same witness, or another witness, to give false testimony at the trial of another accomplice. Since there is no indication that these past rewards would motivate any of the witnesses to give false testimony, the prosecutor did not err reversibly by failing to disclose this information to the jury.
Defendant also raises two issues relating to the prosecutor’s cross-examination of the defendant and the prosecutor’s closing argument. Defendant claims that it was reversible error for the prosecutor, in his closing argument, to refer to defendant’s failure to question some of the witnesses who were present at trial about some of the factual issues in this case. Defendant claims that this argument impermissibly shifts the burden of proof onto the defendant. The substantive message in the prosecutor’s closing argument was that the people’s case was overwhelming and that there was a lack of evidence in favor of the defendant. The statement was not directed at defendant’s refusal to testify but rather to facts that could have been within the knowledge of persons other than the defendant, see People v White, 401 Mich 482; 257 NW2d 912 (1977), People v Williams, 83 Mich App 642; 269 NW2d 251 (1978), People v Rodriguez, 83 Mich App 606; 269 NW2d 199 (1978). The prosecutor’s argument did not impermissibly shift the burden of proof onto the defendant. The jury was properly instructed on the burden of proof by the trial judge.
Another related issue raised by defendant concerns the prosecutor’s questioning of defendant about his use of aliases. On cross-examination, the defendant admitted using aliases both before and after the robbery. Although the issue of whether a defendant’s credibility can be impeached by introducing evidence of his use of aliases is an issue of first impression in Michigan, other jurisdictions have allowed the admission of this evidence for impeachment purposes, see, Bland v State, 42 Ala App 392; 166 So 2d 728 (1964), Fletcher v State, 40 Ariz 388; 12 P2d 284 (1932), Feldman v State, 194 So 2d 48 (Fla App, 1967), State v Waldron, 128 La 559; 54 So 1009 (1911), Commonwealth v Giambrone, 183 Pa Super 283; 130 A2d 254 (1957), State v Sysinger, 25 SD 110; 125 NW 879 (1910), but see People v Fleming, 166 Cal 357; 136 P 291 (1913).
We think that the witness’s use of an alias is highly probative of the witness’s credibility. In this case, the introduction into evidence of defendant’s use of aliases was not highly inflammatory or prejudicial to the defendant, compare People v Fleming, supra. The trial judge did not err in allowing this testimony into evidence for impeachment purposes. The other allegations of prosecutorial misconduct raised by defendant do not require extended discussion or reversal. No objection was made at trial and no curative instructions were requested. Although we do not condone the prosecutor’s actions, see People v Whalen, 390 Mich 672; 213 NW2d 116 (1973), no miscarriage of justice resulted from his questions or argument and reversal is not required, see People v Walton, 76 Mich App 1; 255 NW2d 640 (1977), People v Richard Smith, 68 Mich App 138; 242 NW2d 42 (1976).
Defendant also claims that the trial judge’s instructions to the jury were erroneous. Defendant requested an instruction which would have required the jury to find that he had an actual intention of killing the pharmacist in order to convict him of first-degree felony-murder. The trial judge properly denied defendant’s request. Felony-murder does not require that the defendant have an actual intention to kill the victim. Malice aforethought is all that is required, see People v Haack, 396 Mich 367; 240 NW2d 704 (1976), People v Morrin, 31 Mich App 301; 187 NW2d 434 (1971), see also CJI 16:2:02.
Defendant also claims that the trial judge erred by instructing the jury to find defendant guilty of felony murder if the killing of the pharmacist occurred during the commission of the robbery. Defendant argues that this instruction took the issue of malice aforethought from the jury, see People v Fountain, 71 Mich App 491; 248 NW2d 589 (1976). Although the judge in his instructions did refer to the necessity of finding a murder, we think that the instruction when read as a whole took the essential issue of malice aforethought away from the jury. We recognize that there is a difference of opinion in this Court on this issue, compare People v Wilson, 84 Mich App 636; 270 NW2d 473 (1978), People v Hansma, 84 Mich App 138; 269 NW2d 504 (1978), People v Robert G Thompson, 81 Mich App 348; 265 NW2d 632 (1978), lv gtd, 402 Mich 938 (1978), People v Wright, 80 Mich App 172; 262 NW2d 917 (1977), lv gtd, 402 Mich 938 (1978), People v Fountain, supra, with People v Wilder, 82 Mich App 358; 266 NW2d 847 (1978), People v Till, 80 Mich App 16; 263 NW2d 586 (1977). The opinions in those cases clearly set out the issue to be resolved and the different approaches used in analyzing the issue. It is sufficient in this case to note that we agree with the reasoning and conclusion reached in Fountain, supra. Accordingly, we reverse defendant’s felony-murder conviction. However, retrial on that charge is not required. Instead, we remand for entry of a judgment of conviction of the lesser included offense of manslaughter and for resen-tencing, provided, however, that if the prosecuting attorney, in his discretion, determines that justice would be better served by retrial on the felony-murder charge, the trial court shall, upon notification by the prosecutor prior to resentencing, vacate the judgment of conviction of manslaughter and grant a new trial on the felony-murder charge, People v Archie Smith, 396 Mich 825; 238 NW2d 536 (1976). In view of the resolution of this issue, it is not necessary to consider the other instructional issues raised by defendant, see People v Hansma, supra.
Finally, defendant argues that reversal is required because the court clerk communicated with the jury during their deliberations and inquired into whether they were anywhere near reaching a verdict. At approximately 4:30 p.m., the trial judge asked the clerk to check on the jury’s status for the purpose of determining whether to prepare additional arrangements in the event that deliberations carried over to the next day. The court’s clerk did not ask for the numerical division among the jurors, but the foreman of the jury voluntarily told him this anyway. The jury resumed their deliberations and after approximately 1/2 hour, they returned a verdict of guilty.
In this case, it was not error for the trial judge to have the clerk inquire into whether the jury thought they might agree on a verdict before the day was over. The trial judge did not ask the jury himself. He sent the clerk. The jury had been deliberating since early morning and the hour was growing late. The trial judge expressed his concern over the status of two of the jurors who were pregnant. This minor intrusion into the privacy of the jury’s deliberation is justified to permit the trial judge to make any required arrangements and to properly supervise his docket, see People v Luther, 53 Mich App 648; 219 NW2d 812 (1974). Also, there is no evidence that the clerk interjected any extraneous or prejudicial matter into his conversation with the jury foreman. The clerk did not state any opinion, give any instructions or refer to any of the evidence. He merely asked the foreman whether the jury thought they would be able to reach a verdict before the day was over.
The courts in Michigan have recognized that prejudice may result from the disclosure of the numerical division among the jurors, see People v Wilson, 390 Mich 689; 213 NW2d 193 (1973). In Wilson, supra, the Supreme Court held that it was reversible error for the court to inquire into the numerical division among the jurors. However, the facts in this case are distinguishable from Wilson, supra, since the court did not request this information but the foreman volunteered it anyway. Another factor which tends to lessen the possibility of prejudice in this case is that the foreman did not indicate which way the majority and minority were leaning. Although the trial judge did not follow the procedure recommended in People v Luther, 53 Mich App 648; 219 NW2d 812 (1974), by advising the jury to only tell him whether the majority of the jurors thought they could reach a verdict or that the majority thought they would not reach a verdict, we do not think reversal is required in this case. While the disclosure of the division among'the jurors may create the possibility of prejudice, we think that, in this case, there is no reasonable possibility that the disclosure of this information to the court clerk aided in convincing even one undecided juror of defendant’s guilt beyond a reasonable doubt. Accordingly, we conclude that any error in having the court clerk check on the status of the jury was harmless.
These cases are reversed and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction.
R. H. Campbell, J., concurred.
Another factor which distinguishes this case from People v Bobo, 390 Mich 355; 212 NW2d 190 (1973), is the fact that defendant was not under arrest or even the "focus” of any police investigation when this conversation took place. No police officers were present when the conversation took place. The conversation occurred within 12 hours of the robbery, involved only the defendant, his alleged accomplice, and another acquaintance. The conversation ultimately resulted in a decision that they would all leave the state later that day. Considering all these circumstances and Dietrich’s statement, it seems very unlikely that his initial silence was an attempt to exercise his right to remain silent. Rather, it seems more likely, as the trial judge found, that Dietrich did not respond initially to Cole’s statements because Cole was still talking. For these reasons, and because Dietrich corrected Cole’s misstatement, we conclude that the rule announced in People v Bobo, supra, does not apply to this testimony. | [
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J. H. Vander Wal, J.
The defendant was arrested on July 4, 1977, and charged with carrying a pistol in a motor vehicle in violation of MCL 750.227; MSA 28.424. At a preliminary examination before visiting Recorder’s Court Judge James T. Kallman on July 13, 1977, the defendant was bound over for trial. A motion to quash the information was filed on September 19, 1977. At a hearing on the motion before Recorder’s Court Judge Donald L. Hobson on September 27, 1977, the motion was granted and the case was dismissed. The prosecutor was granted leave to appeal by an order of this Court dated April 7, 1978.
Both parties agree that the defendant, a licensed taxicab operator, was carrying a pistol in his taxicab at the time of his arrest on July 4, 1977. The only question on appeal is whether or not the trial court erred in holding that the defendant’s taxicab was a place of business within the meaning of the concealed weapons statute, and therefore excepted from the coverage of the statute.
MCL 750.227; MSA 28.424 provides in part (emphasis added):
" * * * a person who shall carry a pistol concealed on or about his person, or, whether concealed or otherwise, in a vehicle operated or occupied by him, except in his dwelling house or place of business or on other land possessed by him, without a license to carry the pistol as provided by law or if licensed, carrying in a place or manner inconsistent with any restrictions upon such license, shall be guilty of a felony, punishable by imprisonment in the state prison for not more than 5 years, or by fine of not more than $2,500.00.”
In People v Bailey, 10 Mich App 636, 639-640; 160 NW2d 380 (1968), we stated: " * * * The basic intent of the legislature * * * was that weapons should not be carried where they might be used to take lives.” Accord, People v Johnnie W Jones, 12 Mich App 293, 295-296; 162 NW2d 847 (1968), lv den, 383 Mich 771 (1969).
And in People v Clark, 21 Mich App 712, 716; 176 NW2d 427 (1970), after reviewing the general intent of the statute, we concluded:
" * * * The purpose of the exemptions was to allow persons to defend those areas in which they have a possessory interest. This is the clear import of the phrase 'possessed by him’ which modifies the three areas set forth in the statute.”
It is important to note that we read the three exceptions together to determine their meaning and scope. See also, People v Gatt, 77 Mich App 310; 258 NW2d 212 (1977), lv den, 402 Mich 837 (1977).
With these Michigan cases and principles as a backdrop, we turn to United States v Waters, 73 F Supp 72 (D DC, 1947), cause certified, 175 F2d 340 (1948), app dis, 335 US 869; 69 S Ct 168; 93 L Ed 413 (1948). In Waters, the Federal district court applied a statute which prohibited the carrying of a pistol without a license "except in his dwelling house or place of business or on other land possessed by him” to the carrying of a pistol in a taxicab. The defendant claimed the taxi was his place of business, but the Court concluded:
" * * * The words 'other land possessed by him’ which immediately follow the words 'place of business’ compel the view that the place of business referred to is land. Any interpretation to the contrary would give to the word 'other’ as applied to the word 'land’ no significance whatever. Defendant’s taxicab, therefore, was not a 'place of business’ as the term is used in the statute.” Waters, supra, 73.
We agree with the reasoning in Waters; defendant’s taxicab is not a place of business as the term is used in the statute. Consequently, the trial court erred in quashing the information.
Reversed and remanded.
R. B. Burns, J., concurred. | [
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Beasley, P.J.
Defendant appeals from an order of the trial court which denied defendant’s motion for accelerated judgment and reformed a release which purported to relieve defendant of liability into a covenant not to sue an alleged tortfeasor other than defendant.
Following an automobile accident in which Michael Grzyb was killed, Martha Grzyb, decedent’s widow, retained an attorney, Charles Rawl-ings, to pursue a wrongful death action. The vehicle which collided with decedent’s truck was operated by Kenneth Cox. Cox allegedly was travelling in a westerly direction when he crossed the median and struck the truck of decedent which was travelling in the eastbound lane. Mrs. Grzyb testified that she indicated to Rawlings that she believed Cox was employed by defendant and was acting within the scope of his employment. Rawl-ings never contacted defendant with respect to that information, but, rather, negotiated a settlement with Cox’s insurance carrier for $25,000, the limit on Cox’s policy. Pursuant to this settlement, Rawlings forwarded a release, which was signed by the widow, Mrs. Grzyb, the Peoples Bank and Trust Company, executor of decedent’s estate, and Loren Bartrand, plaintiff in this action, who, as the representative of decedent’s insurance carrier, had a lien on any amount recovered up to the amount of funds it had paid. The terms of the release provided for the discharge from liability of Margaret and Kenneth Cox, "their heirs, executors, administrators, agents and assigns, and all other persons, firms or corporations liable or who might be claimed to be liable * * * ”.
After the release was executed, Rawlings added language on the face of the release stating, "Such draft or drafts to payable solely to Martha A. Grzyb”. Subsequently, Rawlings forged Mrs. Grzyb’s signature and converted the $25,000 to his personal use. However, the law firm with which he was associated made good the loss. Defendant contributed nothing to the settlement.
Plaintiffs contend that Rawlings’s fraudulent conduct precluded probate review of the settlement in accordance with MCL 702.114; MSA 27.3178(184), and Rawlings was, thus, able to facilitate his conversion of the funds. Mrs. Grzyb testified she had no intention of releasing defendant or anyone other than the Coxes and their heirs. She also testified that she had read the entire release and understood it. The liability of defendant was left up to her attorney according to Mrs. Grzyb.
If the release signed by Mrs. Grzyb is upheld, defendant’s potential liability will be negated. The Michigan courts hold that the release of a servant operates to release a master liable solely under the doctrine of respondeat superior. Liability of the employer arises only by operation of law since he did not participate in the commission of a tort.
However, a covenant not to sue an agent will not discharge the principal from liability. Thus, if the trial court’s decision to reform the release into a covenant not to sue is upheld, the principal is not released and the plaintiff may proceed in a suit against defendant.
Denton v Utley lays the foundation for the broad line of cases concerning the equitable reformation of releases. The trial court’s concern in Denton was with an unforeseen injury that was discovered subsequent to the execution of the release. In reforming the release, the court set forth the "fair and knowing” test:
"In the particular case before us, involving a release, we confront merely a specialized application of the overriding principle that in its accomplishment of its mission, equity will strike down without hesitation any agreement resulting from oppression, fraud, mutual mistake of the contracting parties, or other evil. The cases rest upon this great principle, not upon the minutiae urged. It matters not how sweeping are the words involved. When their content cloaks iniquity they shall be vacated and held for naught. To put it affirmatively, any release, to be sustained, must be 'fairly and knowingly’ made. (Farrington v Harlem Savings Bank, 280 NY 1 [19 NE2d 657]; Keefe, Validity of Releases Executed under Mistake of Fact, 14 Fordham L Rev 135 [1945].)”
The Court, in Smith v Flint School District, refused to reform a release where plaintiffs claimed they were unaware of the employee-employer relationship at the time the release was signed. In Smith, the plaintiffs claimed that the "knowing” portion of the Denton test was violated and, consequently, they were entitled to relief. The Court did not agree and distinguished the unknown defendant case from the unforeseen injury case in Denton:
"Therefore, the reasonable approach would be to consider what the releasor knew or should have known at the time of the signing of the release. In this case, plaintiffs could have discovered the relationship, therefore the instant suit should be barred by the release.”
The Court, in Smith, distinguished the case from Chuby v General Motors Corp which further explains the fair and knowing test set forth in Den-ton, supra. In Chuby, the parties had no way of knowing that the cause of action existed at the time of their release, as the cause of action was retroactively recognized by subsequent case law. Also in Chuby, the mistaken assumption that the decedent had experienced no pain and suffering when the release was executed, deprived two additional plaintiffs of their claims.
Another case which upheld a release of an employer was Malone v SCM Corp. This case may be distinguished from the preceding cases as well as the case at bar in that an offer of settlement was made by the employer which plaintiff rejected. In Malone, plaintiff argued that he did not under stand the legal effect of the release. The court, in granting defendant’s motion for accelerated judgment, found no evidence of fraud or misrepresentation at the time plaintiff executed the release.
Centala v Navrude is most analogous to the instant case. The court reformed a release into a covenant not to sue because of the severity of the ward’s injuries; the release inadvertently discharged a party with possible liability without requiring that party to contribute toward the settlement, and the release, under the circumstances, proved not to be in the best interests of the ward.
The court, in Centals, could have relied on the test in Denton, supra, and found that the release violated both the fair and knowing prongs of the test.
Defendant argues that the reformation of a release depends on a showing of fraud, undue influence, duress, misrepresentation, lack of mental capacity, or mistake. The Court, in Denton, indicates otherwise:
"We see, first of all, a wide expanse of the law which has had existence since earliest times: equity’s traditional relief to contracting parties in cases involving fraud and mistake. In our exercise of this power we are frustrated by no form of words employed. If the parties before us have employed artifice and wile, if they have been deluded and betrayed, even, in many cases, by their own fallibility, we are not powerless to relieve them of the consequences.”
The instant case would seem to be an appropriate one for applying the equitable doctrine of reformation. Although Mrs. Grzyb admitted that she read and signed the release, her testimony indicates that she intended only to relieve the Coxes from further liability. We may assume that if Rawlings was truly representing the widow’s interest, he would have pursued the claim against defendant. The deceased earned over a thousand dollars weekly. If Cox was liable and within the scope of his employment, defendants clearly should have been pursued for contribution to the settlement, since the $25,000 paid by Cox’s insurance carrier would be inadequate under those circumstances. We do not find the instant case to resemble Smith, supra, where plaintiff neglected to discover an employee-employer relationship. Mrs. Grzyb knew of the possible relationship of Cox to defendant and passed that information on to Rawl-ings. She placed her trust in her attorney, and he betrayed her.
Finally, but for Rawlings’s criminal conduct, the reasonableness of the settlement would have come before the probate court for approval prior to its distribution. Had the probate court heard the details of the settlement, it is pure speculation as to whether or not the settlement would have been rejected or approved. The court may have discovered that Cox was an employee of defendant and may have rejected the settlement.
We find the fairness element of the fair and knowing test set forth in Denton to be lacking in the execution of the release in the instant case. The facts of the case, the fraud by Rawlings, the lack of probate court scrutiny, the release which found defendant contributing nothing to the settlement, provide an appropriate opportunity for equitable relief.
In so ruling, we recognize that defendant has not in any way been a party to any fraudulent or unfair conduct. But, as indicated, this has not been the issue.
The release will stand as a covenant not to sue the Coxes. The plaintiff may now proceed to trial on the merits.
Affirmed.
Geib v Slater, 320 Mich 316; 31 NW2d 65 (1948), Witucke v Presque Isle Bank, 68 Mich App 599; 243 NW2d 907 (1976), lv den, 397 Mich 842 (1976), Drinkard v William J Pulte, Inc, 48 Mich App 67; 210 NW2d 137 (1973).
Geib v Slater, supra.
Centala v Navrude, 45 Mich App 282; 206 NW2d 544 (1973).
350 Mich 332; 86 NW2d 537 (1957).
Denton, supra, p 342.
80 Mich App 630; 264 NW2d 368 (1978).
Id. at 634.
69 Mich App 563; 245 NW2d 134 (1976).
63 Mich App 11; 233 NW2d 872 (1975).
Centals, supra.
Denton, supra, p 338.
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J. H. Vander Wal, J.
Plaintiff Adolph Gross appeals by leave granted from a July 21, 1977, Workmen’s Compensation Appeal Board order which reversed a hearing referee decision awarding plaintiff $425 in expert witness fees and $400 in actual attorney fees. The referee awarded the fees when he denied defendant’s petition to stop compensation and its alternative petition to divert benefits.
Plaintiff suffered a back injury on July 13, 1968, while lifting heavy pieces of meat in the course of his employment. Thereafter, plaintiff petitioned for and received worker’s compensation benefits. But on October 17, 1974, defendant filed a petition to stop compensation and an alternative petition to divert benefits. Defendant claimed that plaintiff was capable of resuming employment.
At the hearing on defendant’s petitions, it was shown that plaintiff had secured part-time employment as a meat-counter clerk but did not lift heavy pieces of meat or cut meat. Plaintiff’s physician-witness testified to plaintiff’s continuing disability to cut meat and defendant’s physician-witness testified that plaintiff could work but that he would order lighter work for plaintiff because of the subjective complaints of back pain.
The hearing referee denied defendant’s petitions and awarded plaintiff expert witness and attorney fees. Defendant appealed to the Workmen’s Compensation Appeal Board and the board reversed the referee on the subject of expert witness and attorney fees. Plaintiff now appeals by leave to this Court. We affirm.
It is certainly true that the Worker’s Disability Compensation Act is remedial in nature and should be construed in a liberal and humanitarian manner in favor of the employee. See e.g., Jolliff v American Advertising Distributors, Inc, 49 Mich App 1; 211 NW2d 260 (1973), lv den, 391 Mich 780 (1974). But the general rule in worker’s compensation law is that each party pays his or her own attorney and costs unless a statute specifically provides otherwise. 3 Larson’s Workmen’s Compensation Law, §§ 83.11 & 83.20, pp 15-584 and 15-626; and see State Farm Mutual Automobile Ins Co v Allen, 50 Mich App 71; 212 NW2d 821 (1973).
MCL 418.858; MSA 17.237(858) addresses the matter of costs in worker’s compensation cases:
"Sec. 858. The cost of such hearing, including the cost of taking stenographic notes of the testimony presented at such hearing, not exceeding the taxable costs allowed in actions at law in the circuit courts of this state, shall be fixed by the director and paid by the state as other expenses of the state are paid. The fees and payment thereof of all attorneys and physicians for services under this act shall be subject to the approval of a hearing referee. In the event of disagreement as to such fees, an interested party may apply to the bureau for a hearing. After an order by the referee, review may be had by the director if a request is filed within 15 days. Thereafter the director’s order may be reviewed by the appeal board on request of an interested party if a request is filed within 15 days. The director, by rule, may prescribe maximum attorney fees and the manner in which the amount may be determined or paid by the employee. When fees are requested in excess of that provided by rule, the director may award such fee by special order.” (Emphasis added.)
But this statute, as did its predecessors, applies to disputes between attorneys and their clients; it does not apply to disputes between parties. See Rench v Kalamazoo Stove & Furnace Co, 290 Mich 476, 479-480; 287 NW 884 (1939), Pearson v Gillard, 231 Mich 541, 543; 204 NW 725 (1925), May v Charles Hoertz & Son, 204 Mich 432, 436-437; 170 NW 305 (1919).
The Workmen’s Compensation Bureau is a creature of the Legislature and has no more powers than explicitly given to it by the Legislature. Attorneys’ fees, other fees, and expenses must be borne by the parties themselves in the absence of a statute shifting the incidence of such expenses. MCL 418.858; MSA 17.237(858) and Rule 14 of the Workmen’s Compensation Bureau Rules, 1972 AACS R 408.44, are explicit and provide for no attorney fees or other expenses in a petition to stop compensation.
Plaintiff points to no other statutes or cases which might authorize the hearing referee’s action in awarding plaintiff expert witness and attorney fees. Our review of the law indicates that no such authorization exists.
The equities in this case are with plaintiff, but his remedy is with the Legislature and not with the courts.
Affirmed. | [
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D. E. Holbrook, J.
Defendant was charged with breaking and entering an unoccupied building with intent to commit larceny, contrary to MCL 750.110; MSA 28.305. On March 21, 1977, the date set for trial, defense counsel orally moved for a competency examination, pursuant to MCL 330.2026; MSA 14.800(1026). The trial court had discussed this matter with counsel earlier and had been able to schedule a competency examination in the Recorder’s Court Psychiatric Clinic for that morning; the case was adjourned until 2 p.m., at which time a competency hearing would be held. It was agreed that if defendant were found competent to stand trial, a jury would be impanelled immediately following the afternoon hearing.
The only witness to testify at the subsequent competency hearing was a Recorder’s Court Clinic psychologist, Theresa Gillis. Miss Gillis testified that she had earned a master’s degree in psychology and that she'had 13 years of experience at the above clinic. Defense counsel chose not to voir dire Miss Gillis further with respect to her qualifications and agreed that they were "acceptable”. Miss Gillis testified that she considered the defendant competent to stand trial. On cross-examination, she related the procedure whereby her office had arrived at this conclusion.
"Well, we were familiar with Mr. James’ history because we interviewed him in 1972, and because we were asked to make this evaluation on a short notice, we did not go through the usual history taking that we do. But I had that in my possession already.
"This morning Dr. Samora who is a psychiatrist, and Dr. Kennedy who is a physician, and myself intere-viewed Mr. Chatman [sic]. ”
Miss Gillis then went on to explain the procedure in greater detail. Defense counsel offered no evidence or argument to rebut the clinic’s conclusion.
On the basis of Miss Gillis’ testimony, the court found the defendant competent to stand trial, and a jury was impanelled. Voluminous testimonial evidence was taken associating the defendant with the alleged offense. An eyewitness account was offered of defendant’s entry into the subject building. The arresting officers testified to their apprehension of defendant inside the building. Mr. Silk, owner of the delicatessen wherein the defendant was arrested, identified several articles taken from defendant’s pockets as his. During cross-examination of Mr. Silk, defense counsel utilized Silk’s testimony at the preliminary examination in an effort to impeach him.
Testifying on his own behalf against the advice of counsel, defendant offered an entirely different account of the circumstances of his arrest and denied making incriminating statements to police. In rebuttal, the officer in charge of the case recounted verbatim several incriminating statements made by the defendant.
During his final argument, the prosecutor read complainant Silk’s preliminary examination testimony verbatim to the jury. Defense counsel did not object, however, and so no consideration was given to the potential efficacy of a curative instruction. On March 23, 1977, defendant was found guilty as charged. On March 31, 1977, he was sentenced to from 5 to 10 years in prison and now appeals of right.
The defendant contends the court below erred in the following respects: first, that it was reversible error for the court to rest its finding of competency upon the testimony of a psychologist; next, that the Recorder’s Court Clinic’s failure to submit a written report constituted reversible error; finally, that the prosecutor’s action in reading from the preliminary examination transcript also constituted reversible error.
This Court has discussed on several previous occasions those credentials which the law deems necessary to qualify one to give expert psychiatric testimony. In People v Parney, 74 Mich App 173; 253 NW2d 698 (1977), the defendant was originally evaluated and found competent to stand trial by a psychiatrist. Three months later, in preparation for the defendant’s trial on new charges, he was evaluated by a forensic social worker with a master’s degree in social work. The expert had several years experience as a social worker, but only limited experience in forensic psychiatry. She found defendant competent to stand trial once again, however this conclusion was challenged on appeal.
The reviewing Court found no evidence, "[o]ther than the fact of her [very limited] employment with the forensic center” that the social worker was equipped to determine defendant’s competence to stand trial. 74 Mich App at 179. Said the Court: "her recorded background is bereft of any indication that she is experienced in the application of psychiatric knowledge to the processes of law”. 74 Mich App at 180. Furthermore, the Court concluded that "[t]he statutory procedures which become operative after a defendant is found incompetent to stand trial also suggest that assessments of competence are to be performed only by qualified medical experts”. (Emphasis in original.) 74 Mich App at 182.
In the recent case of People v Walker, 84 Mich App 700; 270 NW2d 498 (1978), the substantive testimony at defendant’s competency hearing was once again provided by a social worker. In this case, however, the social worker’s testimony merely provided a foundation for the admission of a report coauthored by the witness and a psychiatrist. Defense counsel did not object to the expert’s qualifications. The reviewing Court pointed out three separate factors which it considered distinguished Walker from the holding of reversible error in Parney. First and foremost among these reasons, the Court noted that unlike the situation in Parney, where no timely psychiatric evidence was offered, in Walker the defendant "did receive a psychiatric examination and the report was cosigned by the social worker and the psychiatrist”. (Emphasis omitted.) 84 Mich App at 703. Also, the Court felt that the "social worker’s testimony was not as substantive as that of the social worker in Parney”. 84 Mich App at 703. Finally, the Court found it relevant that the defendant failed to object to the proferred testimony. The defendant’s conviction was affirmed.
While Parney and Walker dealt with the admission of a social worker’s testimony as expert testimony, the earlier case of People v Lamont Crawford, 66 Mich App 581; 239 NW2d 670 (1976), confronted the same problem faced by this Court: admission of expert testimony by a psychologist. In Crawford, the Court first rejected the defendant’s contention that only a psychiatrist was qualified to evaluate the defendant or to offer testimony with respect to competency. It held that judged by both common law and statutory standards, a "well-qualified clinical psychologist” was "certainly competent to perform the necessary tests”. 66 Mich App at 589. It buttressed this holding by pointing out that the evaluating psychologist operated "under the supervision of a psychiatrist at the center”; that his findings were "reviewed and analyzed” by a psychiatrist; and that the psychiatrist cosigned the submitted report. 66 Mich App at 589.
Except that no written report was ever entered, the instant case is indistinguishable from Crawford. Further, the three factors emphasized by the Walker Court are substantially met herein. We find, therefore, that it was not reversible error for the court to rest a finding of competency upon the testimony of a qualified psychologist, when this testimony is founded upon a properly conducted and properly supervised psychiatric examination.
While it was not error for the court to accept the testimony of a psychologist with respect to defendant’s competency to stand trial, the clinic clearly erred in failing to submit a written report to the circuit court. This error does not, however, require reversal in the instant case. We quote with approval this Court’s opinion in People v Belanger, 73 Mich App 438, 445-446; 252 NW2d 472 (1977), wherein a similar problem was discussed:
"This case is controlled by the recent Supreme Court decision in People v Lucas, 393 Mich 522; 227 NW2d 763 (1975). As will be mentioned later in this opinion, defendant does not, on this appeal, contend that he was incompetent to stand trial. He does maintain that the court herein erred in not conducting the competency hearing required by MCLA 767.27a(4); MSA 28.966(H)(4).
"' "As we said in Blocker, supra, (People v Blocker, 393 Mich 501; 227 NW2d 767 [1975]) failure to follow a statute or court rule respecting competency determination does not ipso facto entitle a defendant to a new trial. Evidence substantiating incompetency-in-fact must establish that there is a violation of rights before a new trial will be ordered. Here, as in Blocker, no evidence of incompetence was adduced at trial and no offer of such evidence is now made.” 393 Mich at 528. [People v Tubbs, 64 Mich App 341, 343-344; 236 NW2d 77 (1975), citing Lucas.]
" 'We therefore adopt the Lucas remedy. The conviction is affirmed without prejudice to defendant’s right to file a delayed motion for new trial if he wishes to claim incompetency.’ ”
The remedy adopted in People v Lucas, 393 Mich 522; 227 NW2d 763 (1975), and in Belanger, supra, where no competency hearing was held, is equally appropriate in the instant case.
We disagree with the defendant’s final allegation that improper argument by the prosecutor in closing necessitates reversal. Overwhelming evidence of defendant’s guilt was given at trial, and the prosecutorial error was not prejudicial. This error was harmless beyond a reasonable doubt under the test adopted in People v Wichman, 15 Mich App 110, 116; 166 NW2d 298 (1968), and People v Lauzon, 84 Mich App 201; 269 NW2d 524 (1978).
Affirmed.
The court’s conclusion with respect to the qualification of a psychologist to provide expert testimony on these matters was based upon strong precedent. See People v Lamont Crawford, 66 Mich App 581, 584-588; 239 NW2d 670 (1976). As noted by the Court in People v Parney, 74 Mich App 173, 179; 253 NW2d 698 (1977), the Crawford holding was broad enough to allow any person associated with the forensic center to provide expert testimony: the Parney Court correctly rejected this conclusion. | [
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Bashara, J.
Defendant appeals his jury conviction of first-degree premeditated murder and first-degree felony murder, MCL 750.316; MSA 28.548.
The facts elicited at trial indicate that on the day in question, defendant drove his car down a trail road and parked off in the woods. He walked back up the trail with his sawed-off shotgun to a gas station where he was once employed. After placing the gun behind the gas station, he conversed with the attendant, Mr. Noppe, until closing time. He then retrieved the gun and proceeded to rob Noppe. The defendant tied up Mr. Noppe and made him get in the trunk of Noppe’s car. He drove the car back to the spot in the woods where he had left his own vehicle and forced Mr. Noppe into the defendant’s car trunk. He then placed a styrofoam cooler in the rear seat of the auto and set it on fire. He left the scene in Mr. Noppe’s car which was eventually found abandoned in Denver, Colorado.
The body of the decedent was found in the locked trunk of defendant’s car. The cause of death was determined to be thermal injuries, carbon monoxide poisoning, and toxic fume inhalation. The owner of the service station testified that $75 was missing, the amount that Mr. Noppe had on his person while working that night.
Defendant was arrested in Texas where a statement was taken during an interview in the Texas jail. A Walker hearing was held prior to trial. The trial court held that defendant’s statement was admissible as evidence.
The killing of Mr. Noppe was never disputed at trial, since the theory of the defense was insanity.
On the second day of trial, defense counsel informed the court that defendant had filed a petition the previous day by mail for removal to the Federal district court. The trial court denied a motion to stay the proceedings, finding that the motion in the Federal court had not been timely filed.
The removal petition was not actually filed until 18 days after the end of the trial, and was eventually denied. The Federal court found there was no valid basis for removal and that the petition had not been timely filed.
Defendant initially claims that oral notice of mailing was sufficient to stay proceedings and, in any event, timeliness is to be determined by the Federal court. We disagree.
At the time of defendant’s trial, the procedural steps necessary to effectuate removal were governed by 28 USC 1446, which provides:
"(a) A defendant or defendants desiring to remove any civil action or criminal prosecution from a State court shall file in the district court of the United States for the district and division within which such action is pending a verified petition containing a short and plain statement of the facts which entitle him or them to removal together with a copy of all process, pleadings and orders served upon him or them in such action.
"(c) The petition for removal of a criminal prosecution may be filed at any time before trial.
"(e) Promptly after the filing of such petition and bond the defendant or defendants shall give written notice thereof to all adverse parties and shall file a copy of the petition with the clerk of such State court, which shall effect the removal and the State court shall proceed no further unless and until the case is remanded.”
The state court need not stay proceedings until the petition is filed. South Carolina v Moore, 447 F2d 1067, 1073 (CA 4, 1971). Oral notice of mailing on the second day of trial does not meet the procedural requisites necessary to remove jurisdiction from the state court.
The right to removal from state to Federal court is wholly statutory and as such can only be exercised in the method designated by Congress, as clearly stated in Biscup v People, 129 F Supp 765, 767 (WD NY, 1955).
"The present statute, insofar as the time for removal is concerned is imperative and mandatory, and must be strictly construed and complied with, Kramer v Jarvis, D.C., 81 F.Supp. 360, owing to the fact that the law was designed to restrict the jurisdiction of the Federal Courts.
"No discretion is conferred on Federal Courts to extend or enlarge the time in which to petition for removal, Cyc. of Fed.Proc. Vol.2, P.334.”
See also Chesimard v Kuhlthau, 370 F Supp 473, 475-6 (D NJ, 1974).
The present case is clearly distinguishable from People v Wynn, 73 Mich App 713; 253 NW2d 123 (1977), where the removal petition was filed and service effectuated on the trial court prior to the commencement of the proceedings.
Defendant’s second contention is that the prosecution failed to establish the corpus delicti of premeditated murder aliunde defendant’s confession as mandated by our Supreme Court in People v Allen, 390 Mich 383; 212 NW2d 21 (1973).
The elements that are claimed not to have been independently proved are premeditation and deliberation. This requisite state of mind is not amenable to direct proof, and as such may be inferred from all the surrounding circumstances. People v Hoffmeister, 394 Mich 155, 159; 229 NW2d 305 (1975), People v Morrin, 31 Mich App 301, 331; 187 NW2d 434 (1971).
Well established guidelines for determining premeditation and deliberation have been formulated by our courts. In People v Berthiaume, 59 Mich App 451, 465; 229 NW2d 497 (1975), these principles were reiterated:
"' (1) Premeditation can be reasonably inferred from the circumstances surrounding the killing;
"' (2) a defendant may not be found guilty of first-degree murder if he did not have an opportunity to subject the nature of his response to a second look or reflection, i.e., one cannot instantaneously premeditate a murder;
" ' (3) a sufficient time lapse to provide an opportunity for a "second look” may be merely seconds, or minutes, or hours, or more, dependent on the totality of the circumstances surrounding the killing;
"' (4) where it is factually clear that there is no evidence of premeditation the trier of fact may not consider a charge of first degree murder.’ People v Meier, 47 Mich App 179, 191-192; 209 NW2d 311 (1973). (Emphasis in original.)”
In determining whether such inferences have an adequate basis, "the state’s evidence must be taken as true, and it must be viewed in the light most favorable to the state, so that the state benefits from every reasonable inference to be drawn therefrom”. People v Charles, 58 Mich App 371, 384; 227 NW2d 348 (1975).
A review of the record reveals facts, set forth at the outset of this opinion, to sufficiently establish an inference of premeditation and deliberation without resorting to defendant’s confession.
The next argument, raised is a novel one. Defendant claims that since arson was the means by which the killing was perpetrated, the arson, in effect, is an assault resulting in murder. Accordingly, the arson should merge with the killing, precluding a felony-murder conviction.
Our felony-murder statute, MCL 750.316; MSA 28.548, provides that,
"All murder which shall be perpetrated by means of poison, or lying in wait, or any other kind of wilful, deliberate and premeditated killing, or which shall be committed in the perpetration, or attempt to perpetrate any arson, rape, robbery or burglary, larceny of any kind, extortion or • kidnapping, shall be murder of the first degree, and shall be punished by solitary confinement at hard labor in the state prison for life.”
Since the Legislature has seen fit to clearly enumerate the exclusive felonies which can underlie a felony-murder conviction, it would not comport with the legislative intent if we were to adopt defendant’s theory of merger.
Arson is a predicate felony in the felony-murder statute. There are no common elements shared by arson and homicide which would mandate merger based on a lesser included or cognate offense analysis. People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975).
Taken to its logical conclusion, defendant’s argument would confine first-degree felony murder to cases where death was not intended by the arsonist. This result would be illogical and has no support in case law or statutory enactment.
Defendant also contends that where there is only one killing, there cannot be a conviction of both first-degree premeditated murder and first-degree felony murder. Although defendant received only one sentence, he argues the court should vacate one of the convictions.
In People v Sparks, 82 Mich App 44, 53; 266 NW2d 661 (1978), this Court found that two such convictions violated double jeopardy. There was only one murder and therefore could only be one crime.
A similar situation was present in People v Hall, 83 Mich App 632; 269 NW2d 476 (1978), where three separate acts resulted in six murder convictions. This was found to constitute impermissible double punishment and three of the convictions and sentences were vacated.
Two convictions, though they result in only one sentence, can still punish the defendant in several ways. People v Stewart (On Rehearing), 400 Mich 540, 549-50; 256 NW2d 31 (1977), and People v Martin, 398 Mich 303, 310-11; 247 NW2d 303 (1976).
Defendant’s final contention regarding jury instructions must be rejected as the matter was not raised in the trial court and no miscarriage of justice occurred therefrom.
Defendant’s conviction of first-degree felony murder is vacated. Defendant’s conviction of first-degree premeditated murder is affirmed.
People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965). | [
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Fead, C. J.
Tbe parties live in St. Louis, Missouri. Plaintiffs are patent attorneys and bad judgment of $10,967.69 against defendant for legal serv ices and advances in connection with the procuring and protection of a considerable number of defendant’s inventions. Both parties appeal.
Defendant invented a rotary compressor, particularly adaptable to iceless refrigeration but having other uses. On September 8, 1928, he executed to Norge Corporation, of Detroit, Michigan, a license to use his compressor on a royalty basis of 90’ cents for each compressor sold by the licensee for refrigeration purposes, “embodying any of the inventions covered by this agreement” and requiring motive power of two or less horse power; and five per cent, of the manufacturer’s selling price on others; with a minimum royalty of $10,000 per year. In connection therewith Norge Corporation loaned defendant $40,000 to purchase the outstanding stock of a corporation then owning* the patents and to have them reassigned to him. It paid defendant only the minimum royalty and charged against it $4,000 per year to apply on the debt.
Much of the dispute at bar rests upon the fact, and attending circumstances, that on May 11, 1932 the license agreement was amended by supplemental contract; reducing the royalty to 10 cents per compressor “sold by it for refrigeration use and embodying any of the inventions covered by this agreement,” but retaining the provision for $10,000 minimum royalty. The supplemental agreement also provided that the debt of defendant to Norge Corporation, then about $35,000, and also all claims of defendant against Norge Corporation for claimed royalties above the minimum be discharged.
The case divides itself generally into three periods of time. From June, 1927 to March, 1930, plaintiffs were principally engaged in obtaining* the compressor patents. From March, 1930, to Novem ber, 1931, tlieir major services were in conducting interference proceedings, procuring patents and broadening the claims on patents to cover the Norge compressors. After November, 1931, they conducted negotiations with Norge Corporation in an effort to obtain more than the minimum royalties for defendant.
In keeping their books and rendering statements to defendant, plaintiffs made charges for services and advances in connection with each project. These charges, aggregating over $5,000, are not disputed, as facts, by defendant. The dispute in fact is as to the so-called “conference” charges. But defendant denies legal liability for any charg’e.
To 1930 defendant had paid plaintiffs little money, and finally they requested a settlement. In addition to the specific charges, for some of which they had rendered him statements, they presented items of $3,800 and $250 for “office conferences,” on the claim that defendant had come to their offices almost daily and talked about the patent affairs. They computed or averaged the hours of the various conferences and charged at the rate of $100 per day. Defendant acquiesced therein and, on March 18, 1930, he and his wife executed to plaintiffs a promissory note for $7,676.92, payable in three months, with annual interest of six per cent., in settlement of plaintiffs’ compensation to that date.
However, defendant demurred at the reservation of conference charges from the bills and insisted that in the future the statements should show his total debt. Thereafter regular statements were furnished to him by plaintiffs, containing charges for specific work and advances, each of which indicated the balance due. On their books plaintiffs made some entries of charges for “numerous confer enees” or “conferences” in connection with particular patents and included them in the statements to defendant. Defendant made monthly payments, aggregating $1,800, on account of services, and about $800 on account of expenses to February 20, 1932, and made no payments thereafter.
About 1929 Forge Corporation started to manufacture a new compressor, which it claimed did not involve defendant’s inventions, and reported to him for royalty purposes only a small part of its output. Plaintiffs, for defendant, claimed the patents read on all the compressors manufactured by Norge and demanded royalties therefor. For a time plaintiffs devoted their efforts to procuring patents and broadening claims on them in order to satisfy Norge Corporation that it was protected thereby. Later the controversy over royalties became more vigorous. October 16, 1930, plaintiffs gave Norge Corporation notice of cancellation of the license. In the course of correspondence with the Norge Corporation’s patent attorney, Mr. Hill, the notice of cancellation was withdrawn January 16, 1931, at Hill’s suggestion and without any agreement. In November, 1931, additional patents were issued to defendant which plaintiffs insisted to Forge operated to establish its liability for royalties on all units manufactured.
April 15, 1932, at a conference in Chicago, at the office of Mr. Hill, with Norge Corporation represented by its president, Mr. Blood, and defendant and plaintiff Rippey present, Blood insisted that the license be amended to provide royalties of 10 cents per compressor and threatened cancellation unless his terms were accepted. It was the general understanding that the 10-cent royalty should cover all compressors manufactured by Forge Corpora tion. The testimony does not go into detail, but it appears that Mr. Rippey asked whether the $35,000 debt of defendant to Norge Corporation would be cancelled and Mr. Blood agreed to do it. At that time defendant’s claim of royalties, which plaintiffs were making for him and believed to be sound, was about $80,000 above the minimum paid him. No agreement was reached at the conference.
Immediately on their return to St. Louis, Rippey and Wilson discussed the situation, Rippey advised Wilson that he could sue Norge Corporation for royalties, he thought recovery could be had but that action would be expensive, his firm did not care to engage upon it unless compensation and costs were provided, and suggested that Wilson think over the matter of accepting* the Norge offer or resting* upon the existing agreement. Wilson considered the situation over the week-end, apparently without final decision upon his course of action. Discussion was also had as to defendant’s debt to plaintiffs for fees and advances and Rippey demanded security.
April 19th, plaintiff Kingsland, at Rippey’s request, drafted an assignment of defendant’s patents to plaintiffs “as collateral security for said indebtedness,” which consisted of the note of March, 1930, and the subsequent open account stated in the assignment as $8,449.81. The instrument recited the negotiations with Norge Corporation and provided: “That in event said negotiations result in a license agreement with said corporation providing for a minimum royalty of at least $10,000 per annum, then the pledged property will be released to the said Edward Wilson by Rippey & Kingsland;” but if the license agreement was not made within 60 days, plaintiffs could sell the patents at public or private sale. Defendant executed the assign ment without objection. The items included in the amount of $8,449.81, to which defendant now objects, are:
“To services day by day conferences in re licensed applications, reissue application, interferences, etc., from Mar. 18, 1930 to Nov. 17, 1931— approximately 35 days, .................. $3,500.
“To services day by day conferences and negotiations with Norge Corporation (November 17, 1931 to May 18, 1932) resulting* in cancellation of note of $35,000, and new licenses agreement, .. $3,500.”
These items appear upon the books of plaintiffs under date of May 18, 1932, and had not been included in bills rendered defendant. Plaintiffs’ claim is that Mr. Rippey and defendant discussed the charges in detail when the security was given and defendant was satisfied with them. Defendant denies such discussion and states that he executed the instrument because he was asked to do so. Mr. Rippey claims to have kept account of the conferences by checking dates and averaging time but, aside from the fact that such bookkeeping did not impress the trial court nor us favorably, the failure periodically to charge the conferences on the books and render statements therefor cannot but cast doubt upon their legitimacy.
After taking security, plaintiffs did no work for defendant except to write a letter to Norge Corporation asking that the terms proposed be changed to 20' cents per compressor, with a minimum royalty of $12,000, and .after the controversy over fees arose, to prepare a claim under a patent for other courisel of defendant because of Rippey’s greater familiarity with it. Defendant claims that he suggested to Rippey other possible terms of compromise on roy alties and did not authorize the letter suggesting 20 cents, but the testimony does not so preponderate.
A few days later Blood asked defendant to come to Detroit to aid in correcting a defect in the device. While there and on May 11th, after discussion in which Blood refused to consider other terms and without notice to plaintiffs, defendant executed the supplemental license agreement above referred to, which was drafted by an attorney for Norge Corporation. The supplemental agreement in no way settled the grave dispute of whether and what Norge compressors embodied defendant’s patents, nor did it agree with the understanding that the royalties should apply to the entire output of Norge Corporation, nor did it provide for royalties on compressors manufactured other than for refrigeration.
Immediately thereafter defendant took the contract back to plaintiffs, who made a copy of it. He knew it was not in accordance with the conference understanding. He did not ask plaintiffs to secure a correction of it. Nor did they advise nor take any steps to secure amendment of it. Their future efforts seem to have been wholly directed to the collection of their charges against defendant.
The assignment by defendant of the patents to plaintiffs secured to the latter no part of the royalties under the new license agreement. The execution of the supplemental license agreement fulfilled the condition of the assignment and obligated plaintiffs to release the patents to defendant. Nevertheless, they attempted to obtain part of the royalties to apply on their-bill. May 26th, they wrote defendant that they had discovered an additional credit due him. of $400 and asked him to return the assignment and execute one which would give them one-half the royalties. Defendant did not execute the assignment and plaintiffs began to press him for payment or security under threat of legal proceedings. June 13th, they recorded the assignment in the patent office, although the condition for its release had been fulfilled. A few days later they advised Norge Corporation that they had a first lien on the royalties and forbade any further payments to defendant.
In order to secure the benefit of his inventions defendant commenced suit against plaintiffs at St. Louis to compel reassignment of the patents, and the suit is still pending. Plaintiffs’ claim that they were willing to reassign at any time on form drafted by defendant’s attorney but the latter refused to present a form is not only impeached by their conduct in claiming under the assignment but by their failure to present a reassignment to defendant until October, 1932, when they offered an assignment which defendant refused to accept because it provided for a ratification of the charges made and acceptance might he a recognition of validity of plaintiffs’ claim.
Plaintiffs also sued defendant at St. Louis upon the note, which suit, however, was dismissed after the present action was begun. In the suit at bar, garnishment process has run against Norge Corporation. In September, 1933, Wilson commenced suit in Wayne county, Michigan, against Norge Corporation to set aside the 10-cent agreement of May 11, 1932, for fraud and duress, alleging conspiracy between Norge and plaintiffs.
Defendant ■ does not question the specific stated items of plaintiffs’ claim of services and advances. He contests the charges for “conferences” not contemporaneously appearing on plaintiffs’ books, for lack of proof of agreement, times and reasonable ness, and denies their approval by him upon knowledge of the facts and with freedom of action. Bnt he further denies liability for any sum whatever on the ground that plaintiffs were guilty of unprofessional conduct and abandonment of his cause, forcing him to make an unfair contract, rendering their services as a whole worthless to him, and thereby forfeiting all right to compensation.
The court held the note of March 18, 1930, valid; the charge for conferences from March 18, 1930 to November 17, 1931 not sufficiently proved, but allowed plaintiffs $2,000 as reasonable compensation therefor; and denied subsequent “conference” charges on the ground that, by their conduct, plaintiffs had prevented defendant from having the benefit of the supplemental license agreement and he was put to the expense and inconvenience of employment of other counsel and to litigation to obtain what plaintiffs were in duty bound to accord him and secure for him. Osterling v. Rose, 286 Pa. 263 (133 Atl. 374).
The relationship between client and attorney is a fiduciary one, not measured by the rule of dealing at arm’s length.- They can agree upon fees, but if the agreement is made after the relationship is begun it is subject to scrutiny by the court in case of dispute. In Bybee v. S’Renco, 316 Mo. 517 (291 S. W. 459), the court cast upon the attorney the burden of proof that the agreed amount of fees is fair and reasonable. The principle is supported in Coveney v. Pattullo, 130 Mich. 275; Neudeck v. Horvath, 244 Mich. 685; Boyle v. Waters, 206 Mich. 515, 6 C. J. p. 686; 2 R. C. L. p. 1038. On the other hand, a client is not necessarily an incompetent before the law and if he acquiesces in a charge as a free contracting person, with knowledge of the facts, and especially if lie acquiesces in it for a reasonable time, there is no reason for the court to put him under guardianship by revaluing the services or scrutinizing them critically or to the unfair disadvantage of the attorney. His account stated will be binding although he may have some criticism of the fees. Locke v. Woodman, 210 Mo. App. 90 (216 S. W. 1006; 240 S. W. 498); Wise v. Hardin, 5 S. C. 325.
The promissory note of March 18, 1930, was executed freely and voluntarily and went unchallenged by defendant for over two years and until he had begun his efforts to escape payment of any fees, however just. Plaintiffs’ services had been loyal and valuable, had produced definite results, and the testimony is that the charges were reasonable. There is no ground for denial of recovery on the note unless plaintiffs were guilty of subsequent misconduct which may be referred back to it.
Like considerations do not apply to the approval of the “conference” charges of $7,000, included in the assignment of April 19, 1932. At that time defendant was confronted by the need to make important decisions as to the advisability of accepting a new Norge contract, or rest upon the existing agreement and suing for past royalties, with possible necessity for change of counsel. The terms of the assignment he executed to plaintiffs and of the supplemental Norge contract make it clear that he was not the kind of a client nor in such a mental state of independence and self-reliance and ability as to render the assignment a valid account stated and beyond the scrutiny of the court.
The understanding in 1930 that future bills to defendant should include all charges, the charge upon plaintiffs’ books of some conference items and their inclusion in bills rendered, and the fact that plaintiffs made no claim for other conference fees, either to defendant before the occasion of demanding the assignment or by entry on their own books, until after they had secured the assignment, are persuasive that the later conference charges were an afterthought and were not within the current contemplation of the parties. Plaintiffs do not claim mistake in failing to make charges or in rendering bills. By their understanding and conduct the parties made the monthly statements analogous to accounts stated on the part of plaintiffs. This excludes recovery on the conference items of $7,000, or any part of it, on the ground of reasonable compensation for work not agreed upon or otherwise.
Defendant’s claim that plaintiffs are entitled to no compensation whatever rests upon the theory that all their services were part of one transaction, directed to the end of securing- the benefit of the Norge contracts, plaintiffs had abandoned defendant and failed to secure to him his rights under the first license agreement, had prevented him from having the benefit of the second agreement and, for such misconduct, had forfeited all compensation.
An attorney may lose his right to fees for unprofessional conduct or abandonment of his client’s case. 6 C. J. p. 722; Bailey Lumber Co. v. Dunn, 109 W. Va. 725 (156 S. E. 79); Faber v. Enkema, 180 Minn. 493 (231 N. W. 410); Duffy v. Colonial Trust Co., 287 Pa. 348 (135 Atl. 204, 49 A. L. R. 406) ; Lane v. Mitchell (Tex. Civ. App.), 289 S. W. 195; 45 A. L. R. 1137, note; Hightower v. Detroit Edison Co., 262 Mich. 1 (86 A. L. R. 509). But we find no authority that where the services are severable, misconduct as to one phase forfeits fees as to another. Such a rule would be generally unfair and is contrary to the authorities. Trapnall v. Byrd, 22 Ark. 10; Davis v. Smith, 48 Vt. 52; Ellerd v. Randolph (Tex. Civ. App.), 138 S. W. 1171; Richardson v. Richardson, 100 Mich. 364; 6 C. J. p. 722.
Plaintiffs’ services clearly were severable. They secured patents which had so much intrinsic value that defendant has brought suit to. set aside the' second Norge contract. The value exists whether it is found in defendant’s rights under either Norge agreement or in the general market worth of the patents. That value had accrued to defendant before any of the claimed acts of misconduct had occurred. Such services were complete. As herein above allowed, plaintiffs’ compensation covers only such services as produced definite valuable results to defendant. Consequently, there is no need for further discussion of the character of plaintiffs’ conduct nor to determine whether or in what respect their acts were improper.
The judgment will be modified by eliminating from the account, all of the conference charges of $7,000, and allowing plaintiffs the amount of the note and interest and the subsequent stated charges with interest, with costs to defendant.
North, Wiest, Butzel, Bushnell, and Sharpe, JJ., concurred. Toy, J., took no part in this decision. Potter, J., did not sit. | [
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Fead, C. J.
December 27, 1926, plaintiff was convicted of the crime of breaking and entering a shop in the nighttime, contrary to 3 Comp. Laws 1929, § 16948 (Act No. 345, Pub. Acts 1925), which provided a maximum penalty of 15 years’ imprisonment therefor. The judgment of sentence, however, read a minimum term of two years and a maximum term of five years, with recommended maximum of two years and six months.
August 20, 1928, plaintiff was released on parole. November 12, 1928, while on parole he committed the crime of robbery armed, in violation of 3 Comp. Laws 1929, § 16722 (3 Comp. Laws 1915, § 15206 as amended by Act No. 374, Pub. Acts 1927), the maximum penalty for which was life or any number of years. On December 28, 1928, plaintiff was sentenced to serve a minimum of 20 years and a maximum of 40 years for such offense.
March 20,1929, on report to him of plaintiff’s sentence of robbery armed and on recommendation of the supervisor of paroles, the commissioner of pardons and paroles entered an order that plaintiff serve his original sentence for breaking and entering, as imposed on December 27, 1926, before beginning the serving of his sentence for robbery armed.
February 12, 1936, the commissioner, acting under Act No. 115, Pub. Acts 1931, made an order annulling the remaining portion of plaintiff’s first sentence (for breaking and entering) to permit him to commence serving his second sentence (for robbery armed). Plaintiff is held by defendants and the prison officers as having commenced service of his term for robbery armed on February 12, 1936.
At no time has plaintiff had a hearing on the charge of violating his parole.
His contentions are that his first sentence would have expired by operation of law in five years, because of the judgment of the court; but that, in fact, it expired on his return to prison because the failure of defendants and their predecessors to accord him a hearing for violation of parole estopped the State from further imprisoning him under the first sentence; that the order continuing his first sentence after his return to prison was unwarranted and unlawful; that his second sentence commenced to run on December 28, 1928, the day it was imposed; and that defendants refuse to correct the records of their department and of the prison to conform to his legal rights.
The action is mandamus, to require defendants to accord plaintiff credit on the term for robbery armed of all time served since December 28, 1928, and to correct the records accordingly.
In 1926, when plaintiff was sentenced for breaking and entering, as now, the indeterminate sentence law provided:
‘ ‘ The maximum penalty provided by law shall be the maximum sentence in all cases except as herein provided and shall be stated by the judge in passing sentence. ’ ’ 3 Comp. Laws 1915, § 15859; 3 Comp. Laws 1929, § 17336.
The statute governed the maximum term; the court could not change it; the provision in the judgment of sentence of a maximum term of five years was a nullity; by force of law, the sentence ran to a maximum term of 15. years. In re Evans, 173 Mich. 25. Consequently plaintiff’s sentence for breaking and entering was in force and unexpired at the time of his second sentence.
Under 3 Comp. Laws 1929, §§ 17516, 17524, the governor or the warden or superintendent of the prison may return a paroled convict to the prison under the conditions named in the statute. Under sections 17524 and 17513 report of the return and the reasons therefor must be made to the commissioner of pardons and paroles, who in turn is required to give the convict a hearing and permit him to show cause, if any, why the original sentence imposed upon him should not be executed.
But 3 Comp.. Laws 1929, § 17526 (also 3 Comp. Laws 1915, § 15868) provides:
“Seo. 10. Any prisoner committing a crime while at large upon parole or conditional release and being convicted’and sentenced therefor shall serve the second sentence to commence from the date of termination of the first sentence after the first sentence is served or annulled. ’ ’
Section 17526 is mandatory and self-executing, having reference to a special condition, and is not governed by the machinery covering violations of paroles. Automatically, a prisoner who comes within its provisions continues to serve his first sentence and he is not entitled to a hearing before the commissioner for violation of parole. Technically, the order of the commissioner continuing plaintiff’s first sentence was not necessary. But it was in accord with the statute and was proper procedure to make the record and definitely advise the convict of his status.
The subsequent annulment of plaintiff’s first sentence by the commissioner was under Act No. 115, Pub. Acts 1931, which adds a section to the statute immediately following section 17526.
“Seo. 10-a. The power to annul the remaining portion of a first sentence referred to in the next preceding section of this act is hereby vested in the commissioner of pardons and paroles.”
The acts of defendants and their predecessors in counting*, as upon his first sentence, time served by plaintiff after his return to prison on his second sentence and until the annulment of the first sentence by the commissioner on February 12, 1936, were in accord with the law.
Writ denied.
North, Wiest, Butzel, Btjshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Chandler, J.
On May 18, 1932, an action was instituted in the name of the Polish American Publishing Company of Detroit, Michigan, by August Cyrowski, its shareholder, and August Cyrowski, individually, as plaintiffs, being filed in pursuance of Act No. 327, § 47, Pub. Acts 1931, complaining against the defendants therein named and particularly the actions of Louis F. Wojcik and other individual defendants in the management of said Polish American Publishing Company, charging the payment of exorbitant salaries and bonuses, misappropriation of funds by defendant Wojcik, the execution of a mortgage, and the sale of bonds not properly authorized by the corporation, and other wrongs which it would be of no avail to recite in detail here.
On June 16, 1932, a second bill of complaint was filed by August Cyrowski, individually, against the same defendants, the recitals in said bill of complaint being substantially the same as those contained in the first bill of complaint. The bill originally asked for the appointment of a receiver for the Polish American Publishing Company and the dissolution of the company, but these portions of the bill were dismissed by an order entered by the Honorable Clyde I. Webster, circuit judge, on June 11, 1932.
Mr. Cyrowski, plaintiff, died November 4, 1933, and an order was subsequently made substituting Arthur Cyrowski, administrator of the estate of August Cyrowski, deceased, as party plaintiff in the cause without prejudice. Subsequent to the foregoing proceedings, and on the 27th of July, 1934, one Paul Faust, upon a petition, was granted leave of the court to intervene in the above cause as a party defendant, his petition setting forth that he is the owner of the stock held by plaintiff, August Cyrowski, at the time of the institution of these proceedings. It appears from the record herein that on October 19, 1932, one Julian W. Koss, recovered a judgment against August Cyrowski in the circuit court for the county of Wayne in the sum of $6,519 and $98.15 costs, that subsequently execution was issued and the sheriff levied upon the stock (60 shares) owned by plaintiff, August Cyrowski, at the time he instituted these proceedings, that said stock was sold on execution sale, duly advertised, on July 24, 1933, and that the same was purchased by said Paul Faust, that said Faust paid the sum of $9,500 for the stock, out of which sum was paid the judgment of plaintiff Koss in the law action, and the remainder, amounting to $2,541.40, was paid to August Cyrowski. It further appears that said Faust caused the said 60 shares of stock previously owned by Cyrowski to be transferred to his name upon the books of the Polish American Publishing Company and a new certificate of stock for said 60 shares to be issued to him.
Separate motions were filed on January 15, 1935, by defendants Frank Januszewski, Stefania Januszewski, John J. Przylubski and Paul Faust to dismiss both bills of complaint filed in these causes. The motions were heard and considered together by reason of the similarity of facts by the Honorable Lester S. Moll, circuit judge in and for the county of Wayne.
For the purpose of simplifying the record and to obviate the taking of testimony, statements were made upon the record by counsel for the respective parties at the time of the hearing on said motions as follows:
“Mr. Burns: There were 360 shares of stock in the Polish American Publishing Company, of which August Cyrowski was the owner of 60 shares at the time these suits were commenced; he was the owner of 60 shares of the 360 shares of the corporation at the time he commenced the suits.
“Mr. LaJoie: We will admit that there was a judgment against Cyrowski; that this stock was sold to satisfy that judgment and was bought by a man by the name of Faust. Therefore, at this time Mr. Cyrowski no longer owns the shares of stock.
“Mr. Burns: And Paul Faust is the owner of the stock, of the 60 shares of stock that Cyrowski owned at the time that he commenced the suits. That the stock was purchased for $9,500 at the sheriff’s sale by Faust, purchased by Faust at the sale.
“Mr. LaJoie: Yes, we will admit he bought it.
“Mr. Burns: And that the stock has been transferred on the books of the corporation and the certificates of stock surrendered and new stock issued.
“Mr. LaJoie: I assume that is true, I don’t know; I don’t dispute it.
“The Court: That is the one question that appeals to me. Can Mr. Cyrowski, we will assume that he is alive, could he profit as a judgment creditor in any other capacity than as a stockholder?
“Mr. LaJoie: That is right, as a stockholder.
“The Court: Is he entitled to any personal judgment in his favor?
“Mr. LaJoie: Not at all, only as a stockholder.
‘ ‘ The Court: Maybe you misunderstood my question. Does August Cyrowski or,his estate, so far as party in interest is concerned, stand alone, or does it stand simply in the status of a stockholder of the corporation1?
“Mr. LaJoie: It stands only in the status of a stockholder in this corporation as of the time that this suit was started — as of the time that this fraud was done.”
Upon the conclusion of the arguments and the submission of said motions to the court, the bill of complaint in both cases was dismissed.
Plaintiff appeals from the order dismissing his bill of complaint, contending that a minority stockholder who commenced an action in equity to recover his portion of funds fraudulently and illegally diverted from a corporation by its dominating and controlling majority of shareholders resulting in special injuries to his property rights and in violation of fiduciary relationship to said minority shareholder, may continue his suit where it appears that he lost his stock pending said litigation.
The defendants contend that where it appears pending litigation that a plaintiff has parted with all of his interest in the litigation, that the court on motion should dismiss the action without requiring a trial of all of the issues involved in the case; that where it appears that plaintiff’s entire claim is based upon his ownership of the shares in a corporation and does not claim that any dividends have been previously declared by the corporation which were not paid him, and he does not claim to be a creditor at the time of the filing of the motion to dismiss, he is no longer a stockholder of the corporation, has no interest in the carrying on of the litigation, and that the motions to dismiss were properly granted.
Appellant insists that the question should have been brought before the court by supplemental pleading’s, and that the issue should have been disposed of at the trial of said cause on the merits, insisting that appellant might have had sufficient reason for setting aside the sale of his stock, insisting that the court had to assume in disposing of said motion not only the sale of said stock but also its validity. In view of the court proceedings herein-before quoted had in open court at the time of the hearing on the motions, we are compelled to hold that the present position of appellant is untenable.
There is nothing in the record or in the briefs of the parties to this cause that even tends to indicate that the present owner of the Cyrowski stock, Paul Faust, ever was a party to any plan, scheme or conspiracy to deprive the plaintiff of his stock, The purchase of the stock, as shown by the record, was made at a public sale thereof, in which Mr. Faust was in no way interested, except later as a purchaser, or in which he was in no way involved. He paid $9,500 for the stock, and that portion thereof in excess of the judgment and costs, upwards of $2,500 was paid to'plaintiff. Mr. Faust thereby became the undisputed owner of the stock held by the plaintiff at the time of the institution of this suit. We are familiar with the holding of this court that, “Motions to dismiss are a substitute for demurrer, pleas in abatement and pleas to the jurisdiction but cannot be used to try the merits and issues of facts. Haney v. Grand Rapids Trust Co., 221 Mich. 160; Thomson v. Kent Circuit Judge, 230 Mich. 354; Brotherton Co. v. Jackson, 231 Mich. 604,” but in view of the admissions of counsel made in the record at the time of the hearing on the motion, we hold that the foregoing cases cited by plaintiff are not applicable to the questions involved in the instant case.
Counsel for plaintiff contend that Court Buie No. 18, § 1, subd. j (1933) “that the plaintiff assigned or disposed of the cause of action before the bringing of suit,” is not applicable here because the appellant did not part with his stock for some 13 months after the bringing of suit.
The statute, 3 Comp. Laws, 1929, § 14010, provides :
“Every action shall be prosecuted in the name of the real party in interest, but an executor, administrator, guardian, trustee of an express trust, a party with whom or in whose name a contract has been made for the benefit of another, or a party expressly authorized by statute, may sue in his own name without joining with him the party for whose benefit the action is brought.”
In Michigan Employers Casualty Co. v. Doucette, 218 Mich. 363, we said:
“What was formerly permissive is now mandatory. All suits must be prosecuted in the name of the real party in interest.”
We call attention to the following eases as bearing upon this question: Niles v. Ransford, 1 Mich. 338 (51 Am. Dec. 95); Webster v. Hitchcock, 11 Mich. 56; Perkins v. Perkins, 16 Mich. 161; Brand v. Smith, 99 Mich. 395; Moore v. Smith, 103 Mich. 387; Waters, for use of Commercial Casualty Ins. Co., v. Schultz, 233 Mich. 143.
The record in this case clearly shows from the pleadings and admissions made in open court that no dividends had ever been declared by the Polish American Publishing Company; that the plaintiff was not a creditor of the corporation; that his stock had been transferred subsequent to the filing of his bill of complaint, and that he was thereby divested of any interest in the corporation or its assets, and that, therefore, the motion for the dismissal of plaintiff’s bill of complaint was properly granted.
Order affirmed, with costs to defendants.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Potter, JJ., concurred. | [
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Long, J.
Relator is garnishee defendant in a cause pending in the Muskegon circuit court, in which Samuel Rosenwald, Julius Rosenwald, and Julius Weil are plaintiffs, and Sol Rosenthal and Sam Rosenthal are the principal defendants. The principal cause was commenced by writ of attachment issued out of the circuit court, and the garnishee proceedings are based thereon. " After the writ of garnishment was served, Bunker & Carpenter, as attorneys for the garnishee defendant, entered a motion in the cause for an order requiring Norris J. Brown and George S. Lovelace, attorneys for the plaintiffs in the original suit, to deliver up to defendant’s counsel all copies taken by them, or either of them, of the books of account, trial balances, and private papers of the firm of Rosenthal Bros., composed of Sol and Sam Rosenthal, the principal defendants, and severally to make oath that, at the time of such delivery, such copies embraced all that said Brown & Lovelace, or either of them, believed to exist, and that said Brown & Lovelace be severally restrained from using in any way the books and papers attached in the principal proceeding, or from disclosing their contents, or the contents of copies taken from them, for the purpose of this case, or for any other purpose whatever, for the reasons:
1. Because the books of account, trial balances, and private papers are not attachable, - under the laws of this State.
2. Because said Brown & Lovelace, who examined the attached books, trial balances, and papers, and took copies thereof, were, and each-of them was, guilty of an abuse of their powers and duties as officers of the court, and of the process of the court.
3. Because said Brown & Lovelace used the process of the court for an unlawful purpose.
4. Because the sheriff of the county exceeded his authority, and was guilty of an abuse of his powers and duties, in permitting said Brown & Lovelace to make an examination of the books and papers so attached, and to take copies therefrom.
5. Because said examination was made, and said copies were taken, while said books, trial balances, and papers were in the possession of the sheriff of said county, who then held them under an unauthorized seizure by virtue of a writ of attachment then in his hands.
- This motion was based upon the testimony of Mr. Lovelace and of the sheriff, given in the case of George B. Cluett et al. v. Gates L. Rosenthal, Garnishee of Sol and Sam Rosenthal, an abstract of which was filed in the cause, and upon an exhibit introduced in evidence in said last-named ease, the same being a circular letter written by said Brown -& Lovelace to the creditors of the firm of Rosenthal Bros., and upon certain,affidavits filed, and the files and records in this cause.
The motion was_ heard in the court below, and denied. 'Mandamus is asked to compel the court to set aside the order denying the motion, and to grant the order asked.
' It appears that, prior to the issuing of any writ of attachment against Rosenthal Bros., they had executed a chattel mortgage to Gates L. Rosenthal, the garnishee defendant here. Proceedings were taken to foreclose that mortgage; and the stock of goods and other property which it covered, amounting to about $30,000, were bid in by Gates L. ■Rosenthal, who claimed, at the time attachment proceedings were commenced, to be in possession. Brown & Love lace, having a claim in their hands not yet due, sued out a writ of attachment on said claim, placing it in the hands, of the sheriff of the county, who entered the store where the properties were situate, and of which Gates L. Rosenthal claimed to be in possession, and seized and took into his possession certain moneys, books of account, paid and ■canceled checks, trial balances, and other books and papers. He took these books to the county jail, and there permitted Brown & Lovelace, who were plaintiffs5 attorneys in the writ, to examine them, and'to take copies from them. After this was done, the property so attached was returned to the store, and the attachment proceedings discontinued.' It is admitted by Brown & Lovelace that they knew that this writ of attachment could not be sustained if a motion was made for its dissolution, as the action was brought upon a debt not yet due, and no sufficient showing had been made in the affidavit to sustain such a writ. Brown & Lovelace, having obtained certain facts from the examination of the books and papers of Rosenthal Bros., sued ■out a second writ of 'attachment in the circuit court for Muskegon county in favor of George B. Cluett and others against Rosenthal Bros., and caused a writ of garnishment to issue against Gates L. Rosenthal. That cause was heard in the circuit court, and is now pending in this Court upon appeal. In that case, in order to establish the plaintiffs5 claim that Rosenthal Bros, had made a fraudulent mortgage, and to show that Gates L. Rosenthal had properties and ■ effects in his hands belonging to the principal defendants, Mr. Lovelace was called as a witness, and was permitted to testify to certain facts which he found by an examination of these books and papers. Upon his cross-examination in that case, it appears that he took copies of such books and papers, including trial balances. It is for the surrender of such papers and copies so taken that this application was made to the court below.
In the Cluett case, Mr. Lovelace testified fully as to what, examination he made, and that after such examination he was in a position to make an affidavit under the law for the issuing of a writ of attachment. From Mr. Lovelace’s testimony, it is quite apparent that Brown & Lovelace knew the first writ of attachment could not be sustained under fhe affidavit upon which it was based, and that the first writ was used for the purpose of getting evidence upon which to ground subsequent writs. No return was ever made to this first writ, but, on the contrary, the suit was discontinued, and the writ withheld, as soon as the evidence was obtained. It is true that Brown & Lovelace deny that the writ was issued for the purpose of getting this information, but, whether it was issued for that purpose or not, it was so used.
To the order to show cause, the circuit judge makes a return in which he says that upon the trial of the Cluett case an objection was made to the introduction in evidence of the contents of the books of Rosenthal Bros., but that such evidence was allowed, and that the jury in ihat cause found adversely to the relator; that in the present case the writ of attachment was sued out by Thomas C. Clark, as attorney for plaintiffs, and that Brown & Lovelace were thereafter substituted in his stead. It is further returned that it appeared, upon the hearing of the motion, that the books and papers claimed to have been inspected were mortgaged by Sol and Sam Rosenthal to relator, as trustee for himself and other creditors, before said attachment, and which mortgage, if valid, was in force at the time said property was attached, and that relator had no rights or interests in the books and papers, except such as he obtained by said mortgage, and that such books and papers were the property of Sol and Sam Rosenthal, and constituted a part of a large amount of property attached. The return further sets forth that, upon the hearing of the motion, relator made no showing that plaintiffs would use or attempt to use the evidence as to the contents of these books and papers upon the trial of said cause wherein relator was interested, and that it did not appear that relator was entitled to the copies of the books and papers taken by Brown & Lovelace. From all the evidence the court determined that the writ of attachment was issued in good faith, and executed in good faith, and that there was no abuse of the process of the court, and that Brown •& Lovelace ought not to be compelled to surrender such copies, or to, make the oath asked. The return nowhere denies that the mortgage had been foreclosed, and the property bid in by Gates L. Bosenthal. This fact appears from the testimony of Mr. Lovelace, and is nowhere contradicted. But it is assumed, not only that the mortgage was void, but that the sale was also void, and therefore the relator had no right to possession, such assumption being based upon the facts obtained by the use of the first writ of attachment.
We think there is conclusive evidence that the facts •obtained by Brown & Lovelace are a part of the case, and the foundation of the case in hand. The only question involved is, has there been an abuse of the process of the •court? Gan parties be permitted to take a writ of attachment, knowing it to be invalid and issued upon an affidavit •confessedly defective, and attach property under it which is not subject to levy, and gain information or evidence upon which to base a proper writ, and sustain that writ by .such means? , It is said by counsel for plaintiffs in the writ, who appear here to defend the action, that it is an •effort to have this evidence adjudged incompetent, and for 'this reason restrain its use, and thus anticipate a ruling of the court below thereon in advance of a trial, and without any showing that it will be offered. This is not the point in issue here, and does not reach the question involved. The claim is that the process of the court has been abused, in that a writ of attachment utterly void, and known to be void by the attorneys causing its issue, and who are officers of the court, has been used to obtain evidence upon which to found subsequent proceedings, and for inquisitorial purposes; that, this being so, the evidence thus obtained is not competent for any purpose, and the parties having possession of any copies containing such evidence are bound to surrender them, and make proof that they have surrendered the whole thereof, so that they may not be used by them, or any one else; and that they have no right to the possession of such evidence.
In this we think counsel for relator are correct. These books of account and trial balances are not property of such tangible character that they can be made subject to such levies. They may be evidences of debt, but their seizure is not the attaching or seizure of' the debt itself. They are not so ihtimately connected with the demands charged therein that the seizure of the books is equivalent to the seizure of the demands, and there is no means by which these demands can be transferred by a direct levy and sale. Freem. Ex'ns, § 112; Com. v. Abell, 6 J. J. Marsh. 476; Thomas v. Thomas, 2 A. K. Marsh. 430; Wier v. Davis, 4 Ala. 442; Carlos v. Ansley, 8 Id. 900; Horton v. Smith, Id. 73. In Dart v. Woodhouse, 40 Mich. 399, it was held that a set of manuscript abstract books are not. subject to levy and sale on execution. In Perry v. City of Big Rapids, 67 Mich. 146, it was held that such abstract books have no intrinsic value, and are not - taxable. In Drake on Attachment (6th ed. § 249) it is said:
“ Where property is of such nature that an attachment of ft would produce a sacrifice and great injury to the defendant, without benefiting the plaintiff;, it is not attachable. Such is the rule in relation to the defendant's private papers, or his books in which his accounts are kept. Much less would an attachment be considered to create a. lien on the accounts contained in the books;” citing Bradford v. Gillespie, 8 Dana, 67.
In Dart v. Woodhouse, supra, Mr. Justice Campbell said:
“It would be very absurd to hold that books could be seized and sold on execution which after sale the purchaser could not use.”
It is conceded that these books and papers seized were not of any value, in themselves. Mr. Lovelace says they were not of much value, except as evidence. In People v. Board of Auditors, 5 Mich. 223, it was held that a warrant drawn by the board of auditors is not subject to levy on execution. In Bradford v. Gillespie, supra, it was held that a return on an attachment of “ Levied upon an account-book, the property of the defendant,” will not authorize a judgment.
As before stated, the real gist of the complaint here is not that property was levied upon which was not subject to levy, but the use which was made of the process of the court. It is seen that the attachment was void, and was levied upon property not subject to levy, yet the parties responsible for it — officers of the court — are permitted to use the evidence thus obtained. If the writ had been valid, 'and the property taken under it had been subject to levy, it was the duty of the sheriff to “ safely keep the same-to satisfy any judgment that may be recovered by the plaintiff in such attachment.” How. Stat. § 7990. Instead of doing this, the writ was used as a search warrant for evidence, and, having obtained the evidence sought,- the books were returned. Had the defendants been charged with a crime, it would have been necessary, in order to obtain a writ which would accomplish what was accomplished here; to show to the satisfaction of the court that probable cause existed, which showing must have been supported by oath or affirmation, the place particularly described, and a de .gcription of the property to be searched for or seized have been set forth with exact particularity.
“ Search warrants were never recognized by the common 'law as processes which might be availed of by individuals in the course of civil proceedings, or for the maintenance of any mere private right; but their use was confined to cases of public prosecutions instituted and pursued for the suppression of crime, or the detection and punishment of criminals.” Robinson v. Richardson, 13 Gray, 456.
Article 6, § 26, of our own Stale Constitution, provides:
“The person, houses, papers, and possessions of every person shall be secure from unreasonable searches and seizures. No warrant to search any place or to seize any person or things shall issue without describing them, nor without probable cause supported by oath or affirmation.”
Here the parties were charged with no crime, yet upon a void process — one which the parties causing its issue confessedly knew to be void — a levy was made upon property not subject to seizure, and copies made thereof; and these copies are now held by these officers, and have actually been permitted to be used in one case as evidence, and in the present ease are the foundation upon which the writ was issued.
But one case has been called to our attention where such a proceeding has- before been attempted. In Hergman v. Dettlebach, 11 How. Pr. 46, it appears that a deputy-i sheriff, under an attachment, levied upon certain books, ■papers, letters, and correspondence of a partnership. It 'was held that under the New York statute certain books '.and papers of a partnership were subject to levy, but letters and correspondence were not among those authorized to be taken. It was said:
“As the whole proceeding on the part of the deputy in examining the books and papers is grossly irregular, an «order must be made that the regular books of account of the firm, and its notes, policies of insurance, and all other securities and vouchers, be safely kept by the deputy-sheriff under lock and key, without power on the part of such deputy or any other person, except the defendants, to look into or examine the same, except under the special order of the court, to be made on notice to the defendants.”
It was further said:
“All other papers, of every name and description, taken by such deputy, and all translations or copies of such translations, if any, of the books, letters, vouchers, or papers, must be delivered up forthwith to the defendants’ attorneys; and, to insure the same, such delivery must be made under an affidavit to be made by such deputy, by the plaintiffs, and their attorneys and counsel, that, at the time of such delivery, such copies embrace every translation or copy of such translation or copy of such original which the deponent knows of, or believes, or has any reason to believe, exists; and the plaintiffs, and their attorneys, agents, and counselors, are hereby restrained from in any way using such original books and papers, or using or disclosing the contents of such copies, in any manner what-' soever, except by special order of the court. This order must be complied with forthwith.”
The process of courts of justice can never be used for' inquisitorial purposes or for oppression, and such use be sustained. If such a practice should be countenanced, no man’s private papers would be free from search or seizure.
The writ must be granted as prayed.
The other Justices concurred. | [
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McGrath, C. J.
Plaintiff sued to recover damages for being wrongfully ejected from one of defendant’s trains, and had judgment. He bought a ticket from Mason to Jackson and return. The testimony tended to show that he had been for some years subject to deep sleeps or chronic drowsiness, from which*' it was difficult to arouse him. On his return trip, in the night-time, he fell into a sleep soon after leaving Jackson. When he became conscious, he found he was being ejected from the car by the conductor. He testified that, before he reached the door of the car, he informed the conductor that he had a ticket to Mason, but that he was not given an opportunity to present it. He is corroborated in this by other testimony.
We think that the learned judge who tried the case presented to the jury the questions involved fully, clearly, and correctly. Among other things, he instructed the jury as follows:
“If the conductor did not give him a fair opportunity under the circumstances, as they appeared to a reasonable man, why, then he was wrong in removing him, or starting to remove him. On the other hand, if the conductor acted, under all the appearances and circumstances, just as a reasonably prudent man would have acted, then he was right in taking him from his seat and removing him towards the door. * * * It was the duty of the conductor to ask the maf£N>r his ticket. It was the duty of the man — the passerflfer — to surrender it. I say this: That if the conductor started the man rightfully towards the door, if he took him from the seat rightfully, and was right in starting him towards the door, then if, at any time before he reached the ground, the man tendered him the ticket, or gave the conductor to understand and realize'that his condition was so changed that the man wanted to give up his ticket, then the conductor should have received it, if that occurred. I do not say that it was the duty of the conductor to again say to him, £I want your ticket;' but I say that the conductor should not, after starting him for the door, either negligently or carelessly or willfully, prevent the man from surrendering his ticket, if he wanted to. It had become the passenger's duty to surrender the ticket. * * * If plaintiff understood what the trouble was, if he understood what was wanted of him, that it was his ticket the conductor was after, and that he was being removed for non-surrender of his ticket, then it was the duty of plaintiff, at first opportunity, without any further request on the part of the conductor, to surrender that ticket. Each man had his fair, honorable duties to perform. And if the man produced, or offered to produce and surrender, his ticket, so that the conductor understood that was what he wanted to do, then he should have received it. So if the conductor did right in taking the man and starting him towards the door, you are to determine, at any time after that, whether the conductor, either intentionally or negligently or carelessly, prevented the man from surrendering his ticket. If he did, he was to blame, because he should have exercised fair care; and, in determining whether- he was exercising fair care, you are to consider all the circumstances of the case, — the duties of the conductor, the fact- that he was at a station, that he was to receive orders, and everything else in the case.”
The judgment is affirmed.
The other Justices concurred. | [
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Hooker, C. J.
The relator filed a bill for divorce, and procured an order of publication upon an affidavit which alleged that the defendant was a resident of the state of Oregon. This affidavit was sworn to on Saturday at a late hour, and the order was obtained from one of the. circuit judges early Monday morning. Upon the hearing of the case, the bill being taken as confessed for want of appearance, the court (another judge) refused to hear the cause, upon the ground that the court had no jurisdiction. An application -is now made for a mandamus to compel the court to hold valid the order of publication, and to proceed and hear said cause.
Substituted service is not favored, and all necessary facts to confer jurisdiction must affirmatively appear upon the record; and, not only must the statutory affidavit have been made, but it must be a part of the record. The recital of an affidavit in the order is not sufficient. Platt v. Stewart, 10 Mich. 260, and note; King v. Harrington, 14 Id. 532. But the proceeding to acquire jurisdiction of non-resident defendants in chancery differs from that in attachment cases. In the latter the act is ministerial, the writ being issued by the clerk when certain statutory facts appear, among them the fact that the defendant, at the time of issuing the writ, is not a resident of the State. In such cases the Court has repeatedly held that the affidavit must be sworn to the same day that the writ issued, to exclude the possibility of the defendant's having become a resident between the dates of the two instruments. Belief was finally obtained from the hardships attendant upon that rule by legislation, but the writ must still be issued before the expiration of the second day from the date of the affidavit, unless the statutory distance increases the time within which it may be obtained. In chancery cases, the order is the result of an adjudication that the statutory cause exists. It is true that the affidavit must make a prima facie case, without which the order is invalid, but the degree of proof requisite is not the subject of review, if it can be said that there is a prima facie case. 1 Barb. Ch. Pr. 92; Soule v. Hough, 45 Mich. 423, and cases cited; Pettiford v. Zoellner, Id. 358. It has been the policy of the courts to hold parties to a strict showing of the statutory requirements, and we think that a complainant should act with diligence. An unexplained delay in obtaining the order after the affidavit is made should be a sufficient reason for denying the order, especially when the actual residence of the defendant is not shown, as in the case of N. Y. Baptist Union v. Atwell, 95 Mich. 239, where a delay of five days was held fatal. In this case, however, the delay was not unreasonable, in view of the fact that the order was apparently obtained at the first opportunity. The intervening Sunday should not be allowed to invalidate the order. The chances of a residence in Oregon being lost, and one in Michigan gained, between Saturday night and Monday noon, were few, and the judge may well have been satisfied of the non-residence of the defendant by the proof furnished.
The writ will issue as prayed, but without costs.
The other Justices concurred.
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Grant, J.
Plaintiff bases his right of recovery upon the negligence of defendant (1) in employing an incompetent and inexperienced fellow-servant, named Oldenberg, and assigning him to work with plaintiff without any instruction or training; (2) in purchasing and using a crooked railway tie.
Plaintiff and Oldenberg belonged to a section gang of four men, who were at the time engaged in loading ties, from a pile alongside the track onto a hand car. The men worked in pairs, one at each end of a tie, plaintiff and the section boss working together, and Oldenberg and the other man, named Miller. The load was nearly completed. The top tie was crooked, and in the center bulged out a little over the line of straight ties under it. ' Olden-berg and Miller were in the act of loading a heavy green-oak tie. The section foreman directed plaintiff to assist them. He took hold near the middle of it. Oldenberg, without waiting for the usual signal, upon which they all lift and throw together, threw his end first. This tie was thrown upon the crooked tie, when suddenly the outside tier tipped over, falling on plaintiff’s leg, and breaking it.
The court properly directed a verdict for the defendant. These four men were fellow-servants. No negligence was shown in the employment of Oldenberg. He was mentally and physically competent to perform the work, which was of the simplest character, not attended with any particular hazard, nor requiring any particular skill. Oldenberg had been employed by the defendant on this section since the 1st of April, and the accident occurred on the 15th. He came to this country in 1879, and was employed on a farm until his employment by the defendant. During this time he was engaged in the usual work of a section man, and once before had been engaged in handling ties in a similar manner. Any one of fair intelligence and the requisite physical ability is.competent to perform such work, and the employer is not required by the law to inquire into his experience, or give instructions in regard to work of so. simple a character.
Judgment affirmed.
The other Justices concurred. | [
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] |
Long, J.
Complainant, in 1892, was the owner of a farm containing about 121 acres in Hillsdale county. It was incumbered by two mortgages, aggregating about $2,000-Complainant was a married man, living in Hillsdale, the farm not being occupied as a homestead. Defendant was the owner of a farm of 169 acres, situate in Clinton and Ingham counties, subject to a mortgage of about $2,600. The husband of defendant, acting as agent for his wife, called upon complainant for the purpose of negotiating an exchange of these farms. It is claimed by complainant that Mr. Thompson represented his wife’s farm as of a dark, loamy, gravelly soil, with 10 acres of timber, 10 acres of low, wet land, and the rest plow land, and that he would make an even exchange, each to take subject to the mortgages. Negotiations for the exchange commenced in January, 1892, and on February 5 Thompson induced complainant to go and look at defendant’s farm. Complainant claims that when he got there he found the land covered with snow; that he could not examine the soil, but, while there, Mr. Thompson pointed out the boundaries of the farm. He was at the farm but a short time, and returned the same night. An exchange was made upon the terms stated, and, in addition, it is claimed by complainant that the defendant was to take some personal property on complainant’s. farm, and to pay the sum of $360 in cash for it. After the deeds were exchanged, the defendant refused to take the personal property, or to pay the $360, denying that any such arrangement was made. Complainant afterwards made an examination of the farm taken by him, and claims that the soil was light sand, and that there were over 70 acres of low, wet, marshy, and irreclaimable land. Complainant had not yet surrendered possession of his farm to defendant, and, upon discovering the condition of defendant’s farm, he, together with his wife, made, executed, and acknowledged a deed of the farm to defendant in due form, and tendered it back to her, at the same time causing a deed of the Hillsdale farm to be- made ready for execution by the defendant to him, and demanded that defendant execute the same, which she refused to do. This bill is filed to set aside the deed to defendant, on the ground of the claimed fraud. The cause was heard in open court, before Judge Lane, who made a decree in favor of complainant, as prayed in the bill.
. We think the proofs abundantly sustain the complainant’s case, and that the fraud is fully established. It will therefore need no diseussion.
It is contended, however, by counsel for defendant, that the bill 'is framed on the theory that, because defendant refused to accept and pay for the personal property, the complainant was entitled to a rescission of the contract. There is a clause in the bill which states:.
“ Such deeds were duly acknowledged and delivered and recorded, and thereupon the said defendant absolutely refused to carry out and perform any other part of the said agreement of exchange hereinbefore stated, and absolutely refused to accept and receive said personal property from your orator, and to pay to your orator the said sum of $360.”
This statement in no manner changes the claim made by the bill. The bill is framed upon the theory that the complainant was induced to make the exchange in reliance upon the false and fraudulent representations of defendant’s agent as to the character of the soil and amount of plow land, and then the above clause is added, showing that defendant’s agent not only misrepresented the character of the soil and amount of plow land, but refused to carry out the other part of the agreement.
It is said, however, that the complainant, when the tender of the deed was made to defendant, again demanded the payment of the $360, and put his' claim for a right of rescission of the contract expressly upon the refusal of defendant to pay it, and not upon tlie ground of the false representations. • It is evident that complainant or his counsel regarded this as a part of the consideration for the exchange, and thought it necessary to make such demand, that the refusal, if made, should constitute a part of complainant’s case; but the bill is framed, as well, upon the theory of fraud and false representations, and the claim of the right of rescission is based upon the fraud, as well as upon the refusal to pay for the personal property. It is also possible that complainant may have been willing to waive the fraud if the defendant would pay the money agreed for the personal property; but this the defendant refused, and the complainant is not estopped from setting up the fraud under the conditions shown. He was insisting that a fraud had been perpetrated from the time he discovered it, and attempted to have the matter righted.
It is insisted that the complainant’s wife is a necessary party to the bill. The deed tendered was executed by the wife, as well as complainant, and effectually barred her dower. The decree of the court below provided that the defendant make, execute, acknowledge, and deliver a deed to complainant of the lands in Hillsdale county, and that the complainant and his wife make, execute, acknowledge, and deliver a deed of the Clinton and Ingham county lands to the defendant. The condition upon which complainant is to have his deed canceled and title restored is that he and his wife make and deliver this deed. The wife of complainant is not a necessary party, and the rights of the defendant are in no way affected by this omission.
The decree of the court below must be affirmed, with costs.
The other Justices concurred. | [
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McGrath, J.
Plaintiff purchased an excursion ticket at Dexter, good to Detroit and return, and rode to Detroit thereon, At about 8 o’clock on the evening of the same ■day he took the train at Detroit for Dexter, taking a seat in the smoking car. When a few miles out of Detroit, the ■conductor took up his ticket. When the train arrived at Ypsilanti, plaintiff left the smoker, and took a seat in a regular passenger car. After the train left Yysilanti, the ■conductor came to plaintiff, and demanded his fare. Plaintiff informed him that he had given him his ticket in the other •car. The conductor then asked him for his cheek. Plaintiff replied that he had not been given a check. The con•ductor threatened to put him off, but did not at that time, but told him that he would have to pay his fare, or get ■off at Ann Arbor. Plaintiff responded that he had surrendered his ticket, and Avould not pay his fare. After the train left Ann Arbor, the conductor returned, and, plaintiff refusing to pay his fare, the conductor called the brakeman, and they together pulled plaintiff from his seat, took him through the car, and put him off, about one mile west of Ann Arbor and eight miles east of Dexter. Plaintiff testified that Avhen his ticket Avas taken up no check Avas given him; that when the conductor came to him the second time, and again just before he was put off, he told the conductor that if he Avould go back with him into the smoking car he would prove his assertions by the man Avho sat with him, but that the conductor told him that he had no time to bother with him; that the conductor insisted that he (plaintiff) had gotten on at Ypsilanti; that he was ejected from the car by force at about 10 o’clock at night; that the night was very dark; that he could not even see the fences on either side of the track; and that he was compelled to walk home. It was not claimed on the trial that plaintiff had not surrendered a ticket, but the conductor insisted that he had given him and all of the excursionists •checks; that he told plaintiff that if he would bring one man that knew him, that said he came from Detroit, it would be all right, but he would not do that; that he used no force in ejecting him; and denied that plaintiff had requested him to go into the smoking car for the purpose •of identification. One of plaintiff’s witnesses, who was in the smoker, testified that the conductor gave plaintiff no check when the ticket was taken up. Another witness, who was in the car from which plaintiff was ejected, testified that she was an excursionist, as were others who were with her; that no checks were given to her or the other excursionists with her; and that she heard plaintiff say to the conductor that if he would go into the smoking ear with him (plaintiff) he could prove that he got on at Detroit, and had given up his ticket, and the conductor refused to go. Plaintiff had a verdict for $1,200, and defendant appeals.
The alleged errors relate to the refusal of requests to charge, and to the instructions given on the question of damages.
The defendant was entitled to have the jury instructed as to the law applicable to its version of the case. After the surrender of his ticket, plaintiff had left his seat in the smoking car, and taken a seat in another car. If plaintiff received a check from the conductor, and, when his fare was demanded, didi not produce the check, and, when requested, refused to go into the other car for identification, he could not recover. The check, if given,, was given him for the very purpose of identification. It was notice to him that the conductor would rely upon its production, and not upon recollection.
The defendant was entitled to the instruction that there was no evidence of malicious intention on the part of the .conductor; but, under the circumstances of this case, if the •jury believed the testimony introduced on behalf of plaintiff, the plaintiff was entitled to recover, not only those damages which are ordinarily termed “ actual damages/-’ but for whatever injury to his feelings or of indignity, pain, and disgrace such conduct would tend to produce in view of the time, place, and circumstances. Conduct may be so hasty and ill-timed, and so far disregard proper precaution and the rights of others, as to be reckless and oppressive, and the law regards recklessness and oppression as aggravating the injury. Detroit Daily Post Co. v. McArthur, 16 Mich. 447, 455; Josselyn v. McAllister, 22 Id. 310; Kreiter v. Nichols, 28 Id. 499; Elliott v. Herz, 29 Id. 202; Kehrig v. Peters, 41 Id. 475; Ross v. Leggett, 61 Id. 445. If plaintiffs legal rights were violated by the expulsion from the train, it was for the jury to consider the injury to his feelings that such conduct would be likely to produce, in view of his consciousness that he was without fault, and had a right to remain upon the train- to his destination. Railroad Co. v. Flagg, 43 Ill. 364; Carsten v. Railroad Co., 44 Minn. 454; Railroad Co. v. Rice, 64 Md. 63; Railroad Co. v. Holdridge, 118 Ind. 281. It was expressly held in Railroad Co. v. Winter’s Adm’r, 143 U. S. 60, that, if plaintiff was rightfully on the train as a passenger, he had the right to refuse to-be ejected from it, and to make a sufficient resistance to being put off to denote that he was being removed by compulsion, and against his will; and the fact that under such circumstances he was put off the train was of itself a good cause of action against the company. Defendant's belief cannot be held to justify unreasonable or reckless conduct. Welch v. Ware, 32 Mich. 77; Raynor v. Nims, 37 Id. 34.
The court was in error, however, in instructing the jury' that plaintiff was entitled to exemplary damages, in the absence of any explanation as to what was meant by that term. Detroit Daily Post Co. v. McArthur, supra. The court had already instructed the jury that plaintiff was entitled to recover as actual damages for such pain 'and mortification and disgrace as the act entailed, and then informed-the jury that if plaintiff made a proposition to the conductor to step back into the other car, and allow him to prove that he got on at Detroit and surrendered his ticket, then he was entitled to recover, in addition to his actual ■damages, what the law calls “exemplary damages.” The jury were left free to add to the amount which they found that plaintiff had suffered from mortification, pain, and disgrace a further sum as a punishment. The aim of law which gives redress for private wrongs is compensation to the injured, rather than the prevention of a recurrence -of the wrong. The law recognizes the fact that an injury may be intensified by the malice or willfulness or oppres- • siveness or recklessness of the act, and simply allows damages commensurate with the injury when these elements are present. The added injury in consequence of their presence is not always susceptible of proof, hence the matter is left to the sound discretion of the jury. Courts, however, should •call attention to the elements that should be considered by juries in this class of cases, and caution them from acting upon improper theories. Josselyn v. McAllister, 22 Mich. 310; Scripps v. Reilly, 38 Id. 10; Stilson v. Gibbs, 53 Id. 280; Wilson v. Bowen, 64 Id. 133.
It is urged that the defendant is not liable in exemplary ■damages for the oppressive or reckless conduct of the con ductor, and Railway Co. v. Prentice, 147 U. S. 101, is relied upon. In that case the act was wholly without the line or scope of the conductor’s authority, and the court expressly recognize the rule that, if any wantonness or mischief on the part of an agent acting within the scope of his employment causes additional injury to the plaintiff in body or mind, the principal is liable to make compensation for the whole injury suffered, and a number of cases are cited in support of the doctrine.
For the errors mentioned, the judgment is reversed, and a new trial ordered.
The other Justices concurred.
Continued from Vol. 97. | [
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McGrath, J.
Plaintiff owned certain village property, and defendant Redford Caverly was the owner of a farm. An agreement was entered into between plaintiff and Redford Caverly for an exchange, and the same was made. The defendant Susannah Caverly, wife of Redford, joined in the deed of the farm to plaintiff, and plaintiff conveyed the village property to Susannah Caverly. Plaintiff claims that Redford Caverly represented that there were but two mortgages on the farm, whereas there were three. The deed from the Caverlys was a warranty deed, excepting the two mortgages' from the warranty, bnt not the third. Plaintiff has paid off the ‘mortgage in question, and sold the farm. She now brings assumpsit to recover the amount paid, joining husband and wife as defendants. The court below found that the only evidence connecting defendant Susannah Caverly with any promises or agreement is the covenant in the deed, and that such covenant was that of her husband only; that plaintiff sues in assumpsit upon the covenants in the deed; that said deed was a warranty against all incumbrances except two mortgages; that the amount agreed upon as the amount unpaid on the two mortgages was $1,013; that at the time of the execution of the deed by defendants there was a third mortgage unpaid, in the sum of $436, which plaintiff has since been obliged to pay; that the consideration paid by plaintiff for the deed was wholly paid to defendant Susannah Caverly by virtue of the conveyance to her; that such, consideration was so paid, and said conveyance so made, at the request of defendant Bedford Caverly; and that said deed was accepted by her, and recorded.
The court erred in rendering judgment for defendants upon these facts. The defendant Susannah Caverly received the entire consideration for the conveyance in which she joined. She must be presumed to have known the purpose ■of that conveyance, and the condition of the title to the property thereby conveyed. A wife who joins with her husband in a deed of lands for .the purpose of securing the conveyance to herself of other property cannot be said to be acting as a surety for her husband. She' is, in such case, contracting with respect to property to be held and owned as'her separate estate.
In Russel v. Bank, 39 Mich. 671, it was held that, had the wife’s transfer of the note been made for any purpose of her own, her liability could not have been questioned. In Johnson v. Sutherland, Id. 579, the rule is laid down that a married woman's promise to pay must be based on a consideration in the shape oí property, and that she has no power to make contracts except concerning her separate estate, which must be either by making agreements concerning property already possessed, and referring to it, or else concerning property acquired by the contract, or in consideration of it. In either case, if the obligation was entered into for her own purpose, or the agreement was concerning property to be acquired by her in consideration of the contract, the fact that her. obligation was in form that of a surety or an indorser would make no difference.
The wife was under no disability, for the reason that she was contracting for property which was to be and become her own. We think, therefore, that the wife was liable upon the covenants in the deed, and the judgment is reversed, and judgment entered here for plaintiff.
The other Justices concurred. | [
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Hooker, C. J.
Plaintiff was a manufacturer of telephones in Chicago. The defendants, who were about to build a telephone line in Michigan, went to Chicago, and purchased some telephones and other appliances from the plaintiff. These telephones were afterwards determined to be infringements of the patents of the Bell Telephone Company, and plaintiff was enjoined from the further manufacture or sale of the instruments, and was ordered to turn over to the Bell Telephone Company all infringing instruments in its possession. Meanwhile, the defendants-had been sued by the Bell Telephone Company, and, either before or after the plaintiff had been enjoined as aforesaid, they turned over to the Bell Telephone Company such instruments as had been in use, in settlement of the actions commenced. A few telephones that had not been used were returned to the plaintiff, and, as we under stand, these were not included in the claim sued upon in this case. The defendants gave notice of recoupment, and claimed damages for the failure of their title to the telephones.
The testimony showed that defendants were not ignorant •of the claim of the Bell Telephone Company that these telephones were an infringement of its patents. It was discussed between the parties at the time of the purchase, and the circuit judge assumed that, a full explanation of the situation was made by the plaintiff, and, in our opinion, practically decided the case. The case should have gone to the jury upon the theory of the defendants as well as upon that of the plaintiff. If the contract, which was not in writing, included a promise to employ all lawyers necessary, and defend and save defendants harmless, and the •same was not done, the defendants should have been permitted to recoup such damages as they sustained, if any, by reason of such failure, which could only be determined by the jury.
We think, also, that the court should not have admitted the testimony of the witness Hotchkiss, showing plaintiff's method of dealing with others in the sale of telephones.
Again, the testimony of Hotchkiss as to what was covered by the patents was inadmissible. He was not shown to be .an expert in such matters.
The judgment must be reversed, and a new trial ordered.
The other Justices concurred. | [
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Grant, J.
The judgment in this case must be reversed, for the admission of incompetent and immaterial evidence.
1. Plaintiff was a land broker, whose principal business was the sale and purchase of land for others upon commission. The declaration contains a special count setting forth an express contract for the sale of certain of defend- . ant’s lands for the sum of $50,000, and that defendant ■ promised that in case plaintiff should sell said lands, or be 'instrumental in procuring a purchaser therefor if the lands should be sold, the defendant would pay the plaintiff a -commission on such sale of 5 per cent.; that the sale was made; that he was instrumental in procuring it, and that by reason thereof the amount of the commission is due. 'The plaintiff, on demand, furnished an omnibus bill of par ticulars, claiming $21,000. The items of this bill are as follows:
For commissions on sale of lands referred to in special count.............................................$4,000
Moneys paid out for defendant at liis request....... 4,000
Work and labor performed.......................... 4,000
Moneys paid out and time expended and labor spent in the sale of the lands............................ 5,000
Time employed in estimating quantity of timber on said land, and furnishing estimate thereof......... 4,000
Plaintiff testified to an express contract for a commission •of 2% per cent., and that the contract was so modified as to give him a commission on whatever amount should be realized upon the sale; that he procured a purchaser by the name of Gates, to whom defendant afterwards sold the land without his knowledge. No other contract was testified to by him. The court instructed the jury that he ■could recover only upon proof of this express contract, and upon proof that he was the procuring cause of the sale.
Plaintiff was allowed, under objection and exception, to testify how much he had paid in procuring estimates, in examining the timber, in railroad fares, and the value of his services. In reply to a question by his counsel, what, in his opinion, a reasonable price would be for the labor performed, he replied:
“I actually paid out $500 to $600, — that is, my labor and time lost and traveling expenses; but it was worth 2% per cent. It is worth 5 per cent., but I agreed to do it for 2{- per cent. That is all I ask.”
..Upon the production of the second witness upon the part of the plaintiff, in reply to an inquiry by the court defendant's counsel said: “I claim that he [plaintiff] is entitled to 2% per cent, on the purchase price of these lands, or nothing.”
Plaintiff did not sue for a breach of the contract, but for its fulfillment. Under the common counts he could, therefore, recover the amount of the contract if it was performed. There was no room for a recovery upon the quantum meruit.
"The authorities which allow suit under the common-counts for what is due on a contract performed on the-plaintiff’s part confine the recovery to money due. It does not reach' to anything else.” Pierson v. Spaulding, 61 Mich. 94.
"A motion to require plaintiff to elect between common and special counts in his declaration ought to be granted where the grounds for recovery thereunder may be inconsistent with each other; or else the trial judge should restrict recovery under the special counts to items which-fall within the precise terms of the agreement on which the count is based.” McLennan v. McDermid, 50 Mich. 379.
" The presumption of an implied assumpsit may be repelled by evidence of a special agreement.” Peters v. Gallagher, 37 Mich. 407.
"In a suit for a fixed salary, evidence of the reasonable value of th'e services is inadmissible.” Marsh v. Turnis Estate, 39 Mich. 100.
Where one seeks to recover the contract’ price under a special contract, evidence of the cost or value of the work is inadmissible. Campau, v. Moran, 31 Mich. 280.
Under these decisions, all evidence of what plaintiff had expended, the efforts he had made, and all negotiations with all other parties, except Mr. Gates, was incompetent. It was not contemplated that defendant should pay any such expenses. It was wholly immaterial whether plaintiff effectuated the sale at a cost to himself of $1 or $1,000, or at the expenditure of one day or one year’s time. He agreed to furnish a purchaser, and the sole question in the case was whether the plaintiff furnished such purchaser.
2. For the same reason, all evidence of prior transactions between the parties, and all correspondence relating to other deals, was incompetent.
3. The plaintiff was erroneously permitted to testify to a conversation with Mr. Gates, after the sale was made, especially that part of the conversation in which he said, “I told Mr, Gates that it was a made-up plan to beat me out of my commissions between him and Mr. Ortman.”
The other questions in the case are concluded by the former decision in 88 Mich. 645. We find no other errors.
Judgment reversed, and new trial ordered.
The other Justices concurred. | [
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McGrath, C. J.
This is an appeal from an order sustaining a demurrer, and dismissing complainant's bill.
The bill sets forth that complainant was the owner in fee of certain lands; that, confiding in the honor and integrity of her brother-in-law, Melvin Sanford, she, on November 4, 1883, being a widow, and without any person to assist her in the cultivation of said lands, conveyed the same in trust to said Sanford, he “covenanting and agreeing with your oratrix to cultivate the same, yielding to your oratrix a reasonable amount of usufruct, as the rents, issues, and profits thereof; that Sanford, “ either through inability to comply with the conditions under which he received the conveyance of said premises, or being otherwise moved to reject the trust, never entered upon the discharge thereof, but left your oratrix in the sole, visible, and actual possession thereof'' up to the 1st day of May, 1892; that said Sanford, “after covenanting and agreeing as aforesaid, * * * removed from the neighborhood;'' that, on November 21, 1885, she “commenced proceedings in this court, against said Sanford and one Samuel H. Stevens,*to cancel said deed of trust,'' etc.; that thereupon said Sanford, on February 1, 1886, conveyed the said premises by warranty deed to complainant; that the only consideration for said conveyance was complainant's equities; that thereupon complainant ceased to prosecute s%id proceedings; that, on September 10, 1885, defendant Stevens attached said lands for a claim of $600 against said Sanford, proceeded to judgment, levied ujDon, and, on August 29, 1889, sold the same at sheriff’s sale; that, on “the 1st day of May, 1892, said Stevens, with force and arms, against the peace and dignity of the people, and without the consent of your oratrix, broke and entered the inclosure of your oratrix’s premises aforesaid, and at divers times since then has trespassed thereon, and threatens to so continue, to the disturbance of your oratfix’s possession and right of possession, to her irreparable injury and damage;” that the supposed attachment lien upon said premises “was never perfected by filing and recording a copy ” of said writ; that said Stevens, when he took out said writ, well knew that said Sanford held no beneficial interest or estate in said lands, and that both the right of possession and use was vested in complainant; that the attachment, levy, and sale cast a cloud upon complainant’s title. ,
The bill prays that defendants may be required to answer; that they may “ especially answer and disclose the nature and purpose of the conveyance” dated November 4, 1883, “and of their several execution of the trust as trustees in succession; ” that defendants account for any funds by them severally received as trustees; that the conveyance made to Sanford “ may be declared a deed of trust, only, and that the title thereby conveyed was not subject to alienation;” that it may be declared that the lands conveyed by said deed were not subject to sale on execution, in satisfaction of the judgment of said Stevens against said Sanford, and that the sale thereof and conveyance to Stevens “vested no other or higher title, interest, and estate than was held by said Sanford, and is, therefore, null and void; ” and that complainant may have such other relief, etc.
Defendant Stevens demurred specially.
The rule that, for misjoinder of parties defendant, those only can demur who are improperly joined (Sweet v. Converse, 88 Mich. 1), disposes of one of the assignments.
Sanford is, clearly, not a necessary party complainant.
The hill makes out a case for equitable relief. It does not necessarily follow, from the allegations of the bill, that the trust set up rested in parol, or that the covenants and agreements of the grantee were not recited in the deed of conveyance. The rule is that, when a party offers to show an agreement, it is to be presumed that he proposes to prove all that is requisite to make the agreement sufficient in law. Seaman v. O’Hara, 29 Mich. 66. It does appear from the allegations in the bill that defendant Sanford recognized the trust, and reconveyed the property. Patton v. Chamberlain, 44 Mich. 5.
One of the grounds of demurrer set up is that “it appears, from the statements in said bill, that complainant has a complete and adequate remedy at law,” and it is insisted that, inasmuch as the bill does not set up that complainant is in possession, or that defendants are not in possession, the bill does not lie, under the statute (3 How. Stat. § 6626). The cause assigned does not cover the point sought to be made under it, but, however that may be, the bill alleged possession until May 1, 1892, and that, on that date, defendant Stevens* with force and arms, broke and entered the premises, etc. Conceding that complainant is not in possession, that Stevens is, and that his-possession'is that acquired as stated, courts will refuse to accord to a possession thus acquired the advantage which would naturally accrue from one acquired by fair and peaceful measures, and will not deprive a party, thus forcibly ousted, of a remedy to which the possession thus wrested from him entitled him. Harrington v. Scott, 1 Mich. 17; Van Auken v. Monroe, 38 Id. 725.
The allegations of the bill do not entitle complainant to a discovery. The bill sets out the purpose of the conveyance to Sanford, that Sanford never entered upon the discharge of the trust, and that, recognizing the trust, he reconveyed. Usually, to entitle complainant to a discovery, it must appear that the matters respecting which discovery is sought are not open to complainant, but are necessarily within defendant's knowledge. Hubbard v. McNaughton, 43 Mich. 220. The facts respecting the conveyance are set out by complainant as within her knowledge, an answer under oath is not waived, and the admission or denial of the facts set up will serve every purpose.
The court below dismissed the bill, but it does not appear upon what ground. On sustaining a demurrer which goes to the merits of the whole bill, the bill may be dismissed, but, on the allowance of a special demurrer of this nature, where the objection can be obviated by simply striking out the objectionable' feature, the court should give an opportunity for amendment. „
The decree of the court below is therefore reversed, with costs of this Court to complainant. The demurrer will be sustained as to the prayer for discovery. The record is remanded, and the complainant may apply to the court below for leave to amend.
The other Justices concurred.
The bill was filed August 18, 1892. | [
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Hooker, C. J.
The plaintiff obtained a verdict and judgment for $215 against the defendant in an action for malicious prosecution.
The plaintiff was local agent of the Farmers' Friend Manufacturing Company, an Ohio corporation, and the defendant, who was general agent of the same concern, caused plaintiff's arrest upon a complaint made by him for the embezzlement of four grain drills, a harrow, some machinery extras and repairs, and $189.67 in money. Upon the examination the magistrate discharged, the plaintiff. Upon the trial of this cause the court held that there was nothing to show that the plaintiff was guilty of the ■offense of embezzlement. He submitted' the following questions to the jury, viz.:
1. Had defendant probable cause for making the complaint?
2. If not, was the defendant justified in making, such complaint by the fact that he acted under the advice of the prosecuting attorney?
The assignments of error are all based upon the charge and the requests to charge. The court’s charge consisted largely of requests of the respective counsel. The first assignment of error is made upon the following:
“You are not compelled to find that defendant acted in good faith in bringing a 'criminal prosecution because he swears that he took advice of the’prosecuting attorney, for, if you find from the evidence that he actually, had within his knowledge facts which showed that no embezzlement had been committed, then his act was malicious.”
The point made upon this instruction is that it did not place the liability upon the fact that he' concealed from the prosecution facts which would have shown that no embezzlement had been committed, but allowed the jury to convict upon the mere fact that he was in possession of such facts, and did not communicate them, although he did not- intentionally conceal them from the prosecuting officer. In the same connection we may allude to the second .assignment. The court charged:
“ Before one can justify the making of a criminal complaint upon the advice of the prosecuting attorney, he must make it appear that he laid all material facts of the matter within his knowledge before such prosecuting attorney.”
It is contended that he should not be held liable if he laid before the prosecuting attorney all facts in his possession which he deemed material, and ■ that the court’s charge would compel a person to decide the question of materiality at his peril. The brief of counsel does not point out what, if any, matters within the knowledge of defendant were not communicated to the prosecuting attorney because not supposed material. He seems to attack the charge as an abstract proposition. The theory upon which defendant justifies is that he acted upon the advice of one presumed to be more competent than he to judge of the materiality of the facts involved. We do not say that a man might not be safe in acting under advice, though he should fail to mention every fact bearing upon the offense; but, as the case must be reversed upon other grounds, and this inaccuracy in the charge, if it be one, is not likely to be repeated, it is unnecessary to discuss it further.
The charge is attacked for the reason that it requires good faith and belief in the guilt of the person accused to justify a verdict for the defendant. The judge charged the jury as follows:
“ The intent had everything to do with it. If Mr. Wood-ford, at the time he made this complaint, himself believed that Mr. Harris had converted the proceeds of those drills with intent to defraud the Farmers’ Friend Manufacturing Company, then there was probable cause for his action in swearing out the complaint.”
There may be some authorities which hold that advice of counsel, based upon a full statement of all facts, is a complete defense, regardless of the opinions or belief of the complainant in relation to the guilt of the accused; but, if so, they are not in accord with the weight of authority. An essential element of probable cause is good faith. In Ravenga v. Mackintosh, 2 Barn. & C. 693, 698, it is said to be a question for the jury whether he acted' bona fide on the opinion, believing that he had a cause of action.
“ Probable cause in general may be understood to be such conduct on the part of the accused as may induce the court to infer that the prosecution was undertaken from public motives.” Ulmer v. Leland, 1 Greenl. 135.
And although the facts known make out a prima facie case of guilt, yet if the circumstances are all consistent with the innocence of the party, and the prosecutor knows the accused is not guilty, or does not believe him to be guilty, he cannot have reasonable cause for the prosecution. Woodworth v. Mills, 61 Wis. 44; Fagan v. Knox, 1 Abb. N. C. 246; Griffin v. Chubb, 58 Amer. Dec. 85 (7 Tex. 603); Prough v. Entriken, 11 Penn. St. 81; Sharpe v. Johnston, 76 Mo. 660; Roy v. Goings, 112 Ill. 656; Brewer v. Jacobs, 22 Fed. Rep. 217.
An instruction that probable cause cannot exist where good faith is lacking may be proper in a case which admits of the question. In this case it is contended that the jury should have been allowed to find that good faith was lacking, because of the attempted settlement of the claim, and. the failure to inform the prosecuting attorney of the letters-, in relation thereto. When a plaintiff is shown to have-taken and appropriated to his own use property belonging-to his employer, proof of an attempt by the defendant to-settle the matter and obtain his own does not of itself tend to show a want of criminal intent upon the part .of such plaintiff, or belief in his innocence upon the part of the defendant. Fagnan v. Knox, 66 N. Y. 525. Nor is there-anything in these letters that tends to sIioav insincerity on the part of the defendant, or to indicate that he doubted plaintiff's guilt. The burden of proving want of probable-cause is upon the plaintiff, and in answer to the prima facie case made by showing the arrest at defendant's instigation, and discharge, the defendant had shown cireum ■stances which tended to establish probable cause. We find nothing from which a want of belief in guilt could be legitimately inferred. There was nothing to indicate bad faith, and the court should not have permitted the jury to find it by submitting the question to them.
The judgment must be reversed, ’and a new trial ordered.
The other Justices concurred. | [
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Butzel, J.
Defendants purchased from plaintiff a parcel of property in the city of Walkerville in the Province of Ontario on an executory land contract. A realtor who had the property for sale contacted Mr. Wardowski in his office in Oakland county. He subsequently went to Canada where he met plaintiff and looked at the property. The contract was executed by defendants at Highland Park, Michigan. It was prepared by a Canadian solicitor on a Canadian form of executory land contract not unlike that currently used in Michigan. It provided, that, if the purchasers should make default in the payment of any instalment of principal and interest, all payments made should be and remain the property of the seller as liquidated damages and not as a penalty, and the whole of the purchase price remaining unpaid should, at the option of the seller, become immediately due and payable. The purchasers did make default and plaintiff brought suit in the circuit court for the county of Oakland for the recovery of $10,619.56, the balance he claims due for principal, interest and taxes remaining unpaid on the contract. He made no tender of a deed before bringing suit and claimed that the contract must be construed in accordance with Canadian law; that under Canadian law the final payment and the giving of the deed are independent covenants and not dependent upon one another and that it was unnecessary to tender a deed before bringing suit and that plaintiff was entitled to the entire balance due as claimed and not merely for damages for breach of contract.
We have frequently held that a tender of a deed is necessary before one may sue on a land contract to recover the unpaid purchase price claimed to be due thereunder, and that, without such tender, the measure of damages is the difference between the amount due upon the land contract and the value of the land at the time the contract is breached. St. John v. Richard, 272 Mich. 670, and cases cited therein.
The parties are not in agreement as. to the Canadian law, but for purposes of this case, we shall assume, without deciding, that under the law of Canada, tender of the deed was unnecessary before bringing suit for the balance due under the contract. The instant suit was not for recovery of an instalment on the contract but for the entire balance due. Under the law of this State, the question of tender in a suit on a defaulted land contract directly affects the amount of recovery. St. John v. Richard, supra; Stewart v. McLaughlin’s Estate, 126 Mich. 1; Carter v. Reaume, 159 Mich. 160; In re Urban’s Estate, 271 Mich. 16. No proofs were offered as to the value of the land and no deed was tendered before the instant suit was brought. For this reason the court properly directed a verdict in favor of defendants. Stewart v. McLaughlin’s Estate, supra.
Plaintiff, however, claims that the contract must be construed in accordance with the Canadian law and that it was unnecessary to tender a deed as a condition precedent to suing for the balance of the pur- • chase price. This is purely a question of procedure or remedy and not one of substantive law, hence the lex fori prevails. The trial judge was correct in his ruling.
A somewhat similar question arose in Mitchell v. Reolds Farm Co., 268 Mich. 301, 311, 312:
“There is no doubt the contract was made in Florida and contemplated performance in Florida, but suit was brought in Michigan, and the remedy available was the remedy afforded by the laws of Michigan.
“Plaintiff relies upon 5 E. C. L. p. 986, § 67, which declares the weight of authority sustains the rule that the measure of damages is a matter of substantive right rather than of remedy. This rule was expressly repudiated in Walton School of Commerce v. Stroud, 248 Mich. 85, which holds (quoting syllabus) : ‘In action in this State on foreign contract, remedy available to plaintiff is the remedy afforded by the laws of Michigan. ’ ’ ’
Foreign citizens are entitled only to the same remedies in our courts as are accorded to our own citizens. Walton School of Commerce v. Stroud, 248 Mich. 85; Mt. Ida School for Girls v. Rood, 253 Mich. 482 (74 A. L. R. 1325). In the latter case, the contention that the covenants under the contract were independent was rejected and the remedy afforded by the Michigan courts applied. The court said:
“Appellant’s counsel also stress the proposition that ‘defendant’s promise to pay the agreed price is an independent promise,’ and therefore the contract price may be recovered without showing plaintiff’s performance of the contract itself. * * * This question was squarely ruled upon in International Text-Book Co. v. Jones, 166 Mich. 86; and the plaintiff’s claim of right to recover on theory of an independent promise was rejected. * * * ‘It is a universally established rule that the affording of remedies in one State for enforcing a contract made in another depends entirely upon judicial comity, and that the remedies and procedure are therefore governed by the lex fori. * * * The lex fori prevails over the lex rei sites, the lex loci contractus, the lex loci solutionis, and all other laws so far as concerns matters that relate to the remedy as distinguished from the substantive contract.’ 5 R. C. L. pp. 941-943.”
In view of our holding, the other questions raised in the briefs become irrelevant. The judgment for defendants is affirmed, with costs.
Fead, C. J., and North, Wiest, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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North, J.
This is an action by plaintiff, as assignee of his wife, and in his own right, for injuries sustained by her and expenses incident thereto, alleged to have been caused by the negligence of an assistant cashier of defendant bank while she was transacting business on defendants’ premises. It is alleged and admitted that the bank was operated by the two defendant corporations in the city of Muskegon. Mrs.- Amelia Relph at noon on December 27, 1934, went to the bank to transact certain business with one of the officials, John Dykema. On entering the bank, to the left is a platform which is elevated about six inches above the main floor, and this is used as office space for certain of the bank’s employees. This space, except for openings or doorways, is inclosed by a partition about four feet high, topped by a marble railing. Immediately to the right of one of these openings, and on the inside of the inclosure, Mr. Dykema’s desk was placed so that when he was seated he could look out over the railing and into the lobby of the bank. On the opposite side of his desk was placed a chair for the accommodation of persons whom he interviewed. A person seated in this chair would of necessity have his back toward the lobby.
At the time Mrs. Relph entered the bank Mr. Dykema was not present but an employee of the bank pointed out his desk to her and she stepped inside the inclosure and seated herself in the chair in front of Mr. Dykema’s desk. Within 10 or 15 minutes he returned, they discussed their business, and then Mrs. Relph stood up and was ready to leave. Her testimony describes the accident as follows:
“As I rose he rose with me and walked way around the side of the table and stood right there in front of me' so close. I sort of stepped back a little, a little sideways, I don’t know how. I fell so quickly I don’t know how it happened. I fell so quick and the step was so close back of the chair, you see. * * # the step, you know, the raise, was back of the chair and getting up, I naturally got up like this and walked about this far, and Mr. Dykema was standing at the edge of the table right in front of me, and I must have stepped back like that and I fell sideways. My foot went right off the step and there was nothing there to catch myself. ’ ’
As a result of the fall Mrs. Relph sustained a fracture of the left hip and was taken in an ambulance to the Iiackley Hospital where she was confined until April 16th, or nearly four months.
Amelia Relph assigned her cause of action to her husband, John Relph, and he brought this suit to recover for the injury, for pain and suffering, for hospital and doctor bills, loss of services, and other expenses resulting from the accident.
The trial court submitted the case to the jury, reserving a motion for a directed verdict under the Empson act (3 Comp. Laws 1929, § 14531 et seg.). A verdict in the sum of $650 was rendered in favor of the plaintiff, which was set aside in the circuit court and a judgment of no canse of action entered on the ground that there was no proof of negligence. Plaintiff has appealed.
The only question involved is whether the trial court was in error in ordering judgment notwithstanding the verdict. Plaintiff’s theory of his right to recover is indicated by the following from his brief:
“We are willing to grant that the maintenance of this platform was not negligence, hut we do maintain that it should have been properly safeguarded by a gate or bar such as was afterwards placed in the doorway. And that there was negligence in so arranging the desk and chair occupied by the customer as to place the customer within dangerous proximity of this opening.”
Appellant also stresses to some extent that at the time the accident occurred Mrs. Rélph’s attention was being given to Mr. Dykema by reason of tbe conversation they were holding, in other words it is claimed that Mrs. Relph’s attention was somewhat distracted from her surroundings. Consideration of this whole record forces the conclusion that there was nothing extraordinary in the nature of a distracting circumstance which justified or excused Mrs. Relph for not having exercised ordinary care and caution. Conclusively she had knowledge of the difference in floor levels. In going to the place where she was seated she had just stepped upon the raised platform. There was no occasion for defendant bank or any of its employees to have anticipated that Mrs. Relph would negligently attempt to back through the doorway leading from the platform to the normal floor level. The only explanation for her having done so is her own thoughtlessness concerning her own personal safety.
“Different floor levels in private and public buildings, connected by steps, are so common that the possibility of their presence is anticipated by prudent persons. The construction is not negligent unless, by its character, location, or surrounding conditions, a reasonably prudent person would not be likely to expect a step or see it. ’ ’ Garrett v. W. S. Butterfield Theatres, Inc., 261 Mich. 262.
‘ ‘ This court is definitely committed to the holding that one going about in public places or semi-public places when possessed of his natural faculties may not escape being charged with negligence if he is heedless of his own safety. If he fails to use the care that an ordinarily careful person would have used in like surroundings, and in consequence sustains in-. jury, he must.bear his own misfortune.” Blankertz v. Mack & Co., 263 Mich. 527, 533.
As being somewhat in the same field of the law, the following cases may be noted: Evans v. Ortten burger, 242 Mich. 57; Rice v. Goodspeed Real Estate Co., 254 Mich. 49; Boyle v. Preketes, 262 Mich. 629.
Judgment entered in the circuit court is affirmed. Costs to appellees.
Fead, C. J., and Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Wiest, J.
Defendant reviews his conviction of the crime of pandering, under an information charging that, on or about the 1st day of May, 1932, at the city of Flint, in Genesee county, and between that date and the 10th day of January, 1936, he “did knowingly accept, receive, levy and appropriate large sums of money of the United States of America without consideration from the proceeds of the earnings of Georgia Coleman, a woman engaged in prostitution, and he, the said Nathaniel Jackson knowing said Georgia Coleman, a female, to be a prostitute did live and desire [derive?] support and maintenance from the earnings and proceeds of the prostitution of said Georgia Coleman.”
The statute, Act No. 328, § 457, Pub. Acts 1931, commonly known as the penal code, provides:
“Any person who shall knowingly accept, receive, levy or appropriate any money or valuable thing without consideration from the proceeds .of the earnings of any woman engaged in prostitution, or any person, knowing a female to be a prostitute, shall live or derive support or maintenance, in whole or in part, from the earnings or proceeds of the prostitution of said prostitute, * * * shall be guilty of a felony. * * * And such, acceptance, receipt, levy or appropriation of such money or valuable thing, shall, upon any proceeding or trial for violation of this section, be presumptive evidence of lack of consideration.”
Defendant contends that the information was insufficient in not alleging specific amounts of money and the dates when defendant received the same.
Defendant did not demand a bill of particulars, nor did he move to quash the information. The information followed the language of the statute and was sufficient.
In State v. Pippi, 59 Mont. 116 (195 Pac. 556), defendant therein was prosecuted for the crime of pandering in having received and accepted money, without consideration, from the earnings of a woman engaged in prostitution, and, in passing upon the point here raised, the court stated:
“The crime for which the defendant was tried is purely statutory. The information follows the language of the statute, contains all that is essential to constitute the crime, is sufficient to apprise the accused of the nature of the offense charged, and is not open to the objection that the amount which defendant received from the prosecuting witness is not stated. The statute does not require that it shall be.”
It is also contended there was error in admitting testimony of the receipt of a sum of money by defendant six days after the last date stated in the information. Again we quote from State v. Pippi, supra:
“It is the general rule' that upon the trial of one accused of crime, evidence of a distinct and independent offense is not admissible; but the rule is equally well settled that the State may introduce evidence tending to prove a uniform plan or course of action on the part of the accused for the purpose of identification, of disclosing guilty knowledge or criminal intent, and to negative the idea that the particular act charged was merely the result of inadvertence or mistake; and, if such evidence also tends to establish the commission of another offense, it is not for that reason inadmissible.”
It is a general rule that evidence of a crime, unconnected with the one an accused is informed against, should be excluded. In the case at bar, however, the offense of pandering was charged as a continuing one over a course of years and the subsequent act, admitted in evidence, and so closely related in point of time, disclosed the continuing course of criminal conduct alleged in the information. It was not evidence of a distinct crime for which another prosecution should be brought but so connected with the criminal course of conduct, established by other evidence, as to not constitute reversible error. It might well have been included in thé information and, had it been so included, it would not have rendered the charge double.
The other testimony was sufficient to justify the jury in finding that defendant was a gambler, living with a common prostitute and knowingly receiving money from her nefarious and sole occupation.
The crime of pandering is, under the statute, a felony. The information alleged that the offending acts by defendant were between the dates mentioned in 1932 and 1936, and, therefore, not barred by the statute of limitations. 3 Comp. Laws 1929, § 17238, as amended by Act No. 144, § 24, Pub. Acts 1935.
It is also contended that the statute (Act No. 328, §457, Pub. Acts 1931) in making “acceptance, receipt, levy or appropriation of such money or valu able tiling, * * * presumptive evidence of lack of consideration,” is unconstitutional in casting upon defendant the burden of going forward with the evidence and negativing the presumption. The identical point was considered in State v. Pippi, supra, and found to have no merit.
Defendant gave no testimony and, therefore, we do not have the question of weighing the evidence against the statutory presumption. Employment of the statutory presumption did not deprive defendant of any right.
“Every accused person, of course, enters upon his trial clothed with the presumption of innocence. But that presumption may be overcome, not only by direct proof, but, in many cases, when the facts standing alone arfe not enough, by the additional weight of a countervailing legislative presumption. If the effect of the legislative act is to give to the facts from which the presumption is drawn an artificial value to some extent, it is no more than happens in respect of a great variety of presumptions not resting upon statute. * * *
“The point that the practical effect of the statute creating the presumption is to compel the accused person to be a witness against himself may be put aside with slight discussion. The statute compels nothing.” Tee Hem v. United States, 268 U. S. 178 (45 Sup. Ct. 470).
In that case the court quoted the following from Mobile, J. & K. C. R. Co. v. Turnipseed, 219 U. S. 35 (31 Sup. Ct. 136, 32 L. R. A. [N. S.] 226, Ann. Cas. 1912A, 463):
“ ‘ That a legislative presumption of one fact from evidence of another may not constitute a denial of due process of law or a denial of the equal protection of the law it is only essential that there shall be some rational connection bfetween the fact proved and the ultimate fact presumed, and that the inference of one fact from proof of another shall not be so unreasonable as to be a purely arbitrary mandate. So, also, it must not, under guise of regulating the presentation of evidence, operate to preclude the party from the right to present his defense to the main fact thus presumed. ’ ’ ’
The information alleged the proper venue and the proofs were in accord therewith.
We find no reversible error and the conviction is affirmed.
Fead, C. J., and North, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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McGrath, J.
On the 17th day of December, 1891, one Erickson entered into a written agreement with one St. Clair, whereby the former leased to the latter a certain shingle mill and outfit, and also gave to the latter a license to cut into shingles all the pine timber upon certain described lands; and the latter agreed to manufacture said timber into shingles, and to pay to the former certain specified prices per thousand for all shingles so manufactured. This agreement was delivered December 29, when St. Clair took possession, and was operating the same when this aotion was commenced. On April 25, 1892, St. Clair sold a quantity of the shingles so manufactured to defendants, who paid for the same in full. Erickson, after the execution of the agreement between himself and St. Clair, but before the delivery thereof, executed a mortgage to plaintiff upon the saw-mill and outfit, and also upon all the standing and down timber upon the same land, and plaintiff filed the same as a chattel mortgage, and now brings replevin against defendants for the shingles so sold to them as aforesaid. No actual notice To either St. Clair or defendants is shown. In the agreement between Erickson and St. Clair the lands are described as belonging to Erickson. The shingles were cut from, timber which was standing at the time- the mortgage to plaintiff was given.
The mortgage to plaintiff, so far as it relates to standing timber, was a mortgage of an interest in real estate (Russell v. Myers, 32 Mich. 522), and the filing thereof in the clerk’s office was notice to no one (Booth v. Oliver, 67 Mich. 664).
The judgment will not, therefore, be disturbed.
The other Justices concurred. | [
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Grant, J.
The relator, Speed, was duly appointed city counselor and head of the department of law in the city of Detroit, July 15, 1893, and entered upon the duties of the office. This appointment was made under Act No. 419, Local Acts of 1893, entitled “An act supplemental to the charter of the city of Detroit, and to provide for a law department in said city." Under the decision in Speed v. Common Council of Detroit, 97 Mich. 198, Mr. Speed's appointment was declared valid, and the council- directed to approve his bond. Thereafter the mayor of the city lodged- charges with the common council against Mr. Speed, for which he asked- said council to remove him. The council appointed a committee to investigate these charges, whereupon the relator filed this petition, asking for the writ of prohibition against the procedure of the council. The writ was granted, subject, however, to a motion to vacate it on cause shown. The respondents made answer to the petition, and moved to vacate the order. The principal question in the case is the power of the council to remove the city counselor for cause, but two preliminary matters will be first determined.
It is suggested, rather than seriously insisted, by the learned counsel for the respondents, that the writ of prohibition does not lie in the present case, for the reason that the common council was proceeding in a political or administrative way, rather than in any other. They cite Mechem, Pub. Off. §§ 1019, 1020; High, Extr. Rem. §§ 769, 783; Burch v. Hardwicke, 23 Grat. 51; People v. District Court, 6 Colo. 534; Smith v. Whitney, 116 U. S. 167. The rule laid down by these learned authors is that the writ lies only to prevent the unauthorized exercise by courts and officers of judicial powers, and does not lie to restrain executive or ministerial action; and the above authorities, together with others, are cited in support of the proposition.
In People v. District Court, the power to remove for certain causes was expressly conferred upon.the city council of Leadville. No doubt, therefore, existed of the jurisdiction of the council in the matter.
In Burch v. Hardwicke, the power was also expressly conferred by the charter upon the mayor to suspend -or remove officers for misconduct in office or neglect of .duty.
In Smith v. Whitney, the writ was invoked to prohibit the Secretary of the Navy, and a general court martial of naval officers, from trying the relator upon charges which had been preferred against him.
In all these cases the respondents were proceeding under the express authority of law, and they are therefore clearly inapplicable to the present case.
The writ lies “to prohibit the exercise by an inferior tribunal or officer of judicial powers, with which he is not ■legally vested,” and “to prevent actions in excess of the jurisdiction conferred by law, and not to regulate or control the manner in which a lawful jurisdiction shall be exercised.” Mechem, Pub. Off. §§ 1013, 1014. Under the Constitution, the Legislature may provide for the removal of municipal officers. It certainly has never been regarded in this State that the officer or body upon whom this power is conferred acts in a purely political, administrative, or legislative capacity. Such officer or body acts, and must of necessity act, in a quasi judicial capacity, and the method of procedure must be of a quasi judicial character. Stockwell v. Township Board, 22 Mich. 341; Dullam v. Willson, 53 Id. 392; Clay v. Stuart, 74 Id. 411; Fuller v. Attorney General, 98 Id. 96. Such officer or body then becomes an inferior tribunal, amenable to the writ of prohibition when acting in excess of the jurisdiction conferred. In such cases it is of little consequence what name is given to the power conferred. The name cannot relieve it of its essential character. It would be a reproach to the law if it did not provide a speedy remedy by which such tribunals can be prohibited from the exercise of an excess of authority, or of an authority which they do not possess. We are of the opinion that the writ lies in the present case. State v. Common Council (Minn.), 55 N. W. Rep. 118; People v. Cooper, 57 How. Pr. 416; 1 Dill. Mun. Corp. § 191 (4th ed. § 253).
While it appeared, upon the argument, to be conceded that the sufficiency of the charges is not here in issue, still we deem it proper to say that the charges preferred, so far as they relate to the acts of Mr. Speed committed before his appointment to and induction into this office, are clearly beyond the jurisdiction of the respondents to determine. There is no provision in the Constitution nor in the laws which prevents a person from holding office for misconduct in another office which he held prior to the one to which he was elected or appointed. We have been unable to find any authority which justifies a removal for such previous misconduct. The misconduct for which an officer may be removed must be found in his acts and conduct in the office from which his removal is sought, and must constitute a legal cause for his removal, and affect the proper administration of the office. There is no restriction upon the power of the people to elect, or the appointing power to appoint, any citizen to office, notwithstanding his previous character, habits, or official misconduct. State v. Jersey City, 25 N. J. Law, 536; Com. v. Shaver, 3 Watts & S. 338.
In Com. v. Shaver, it was held that the trial, conviction, and sentence of a sheriff for the offense of bribing a voter previously to liis election to the office did not disqualify him.
In State v. Jersey City, it was held that the expulsion of an alderman for receiving bribes did not disqualify him for election to the same office. See, also, State v. Common Council, supra; Crawford v. Township Boards, 24 Mich. 248; Richards v. Clarksburg, 30 W. Va. 502; 1 Dill. Mun. Corp. § 190 (4th ed. § 252), and note.
This may be a proper subject for legislative consideration, but, until the Legislature shall choose to disqualify persons from holding office for such reasons, they can constitute no cause for removal.
It was settled in the case of Speed v. Common Council, supra, that the mayor could nbt revoke the appointment when once made, and that neither he nor the common council possessed the power to remove at will. * That case was ably argued, and received the most careful examination by this Court. We see no occasion to change our views, or to question the soundness of the conclusions then reached.
Counsel for respondents, in their brief upon the application for a rehearing in that case, concede that “there is no provision whatever for the removal of an appointive officer upon charges, nor for the trial of such charges;” but they contend (1) that the power of removal is necessarily implied from the language used in the act of 1893; and (2) that the power of removal for cause is implied from the charter and from the nature of the municipal organization.
The only reference to removal from office in the act of 1893 is found in section 8, which reads as follows:
“Upon the expiration of the term of office of the city counselor and the city attorney, or their resignation thereof or removal therefrom, such officer shall forthwith, on demand, deliver to his successor in office all deeds, leases, contracts, and other papers and books.in his hands belong ing to the corporation, or delivered to him by the corporation .or any of its officers, and all papers in actions prbsecuted or defended by him, or which are pending and undetermined.”
From this language it is argued that the power of removal for cause is necessarily implied, and the case of State v. Somers, 35 Neb. 322, is cited in support of the proposition. The provision of the statute of Nebraska then before the court for construction reads as follows:
“Said commissioner of health shall be appointed by the mayor, subject to the approval of a majority of the council; shall hold office for a term of two years from date of appointment, unless sooner removed or retired.”
This statute was amended so as to read as follows:
“All officers appointed by the mayor and confirmed by the council shall hold the office to which they may be appointed until the end of the mayor’s term of office and until their successors are appointed and qualified, unless sooner removed or the ordinance creating the office shall be repealed, except as otherwise provided in section 104.”
Construing these provisions together, it was held that the right of removal was impliedly retained in the hands of the mayor, not in the council.
The difference between the two statutes is apparent. In that case the appointment was until the end of the mayor’s term, unless sooner removed, while, in the present case, section 2 of the act conferring the power of appointment is as follows:
“ He [the city counselor and the head of the legal department of the city] shall be appointed by the mayor on or before the third Tuesday in June for the term of three years from the 1st day of July next succeeding his appointment.”
In State v. Somers, the clause in regard to removal is coupled directly with the appointment, in the same section and the same sentence, and no other object than the removal of the officer is apparent from the language. But in this case it is obvious that the sole purpose of section 8 is to provide for a surrender of the books and papers to their proper custodian in the event of a' lawful successor to the office, and it is fairly to be inferred that this purpose was in the legislative mind in adopting the enactment. Any other conclusion would do violence to the rules of construction. This act was supplementary to the charter of the city of Detroit, and its sole object was the creation of a new department. It is, in its character, an independent act, and, in the absence of controlling language referring to the charter, the language of the act must prevail. The character of this department and the office of the city counselor will be referred to hereafter.
There would be more force in this proposition of counsel if there were no officer mentioned in the act to which the term “removal” might apply; but the city attorney is elected, and, under the express provisions of the charter, may be removed for corrupt or willful malfeasance or misfeasance in office, or for willful neglect of duty, upon charges, which must be tried, and to which the officer shall have the right to make his defense. Charter, chap. 4, § 18. This -act recognizes the city attorney in his status as an elective officer, and therefore the provisions of the charter as to his a amotion apply. But, as to the city «ounselor and the head of the legal department, he is a new officer created by the act, to be appointed under the act, whose duties are specifically defined by it, whose term of office is fixed, and whóse appointment is lodged solely in the mayor. If the Nebraska case were applicable to the facts of this case, it would follow that the power of amotion was lodged in the mayor to remove at will, and this question has been decided in Speed v. Common Council, supra.
Is the power to remove' the city counselor appointed under this act inherent in the municipal corporation or in its governing body, the common council? Judge Dillon, in his valuable work on Municipal Corporations (section 181; 4th ed. § 242), states that the question of implied power of removal by municipal corporations has not been judicially settled in this country, and ventures the opinion that, in the absence of any express or implied restrictions in the charter, such power exists. It is also stated in the opinion in Richards v. Clarksburg, 30 W. Va. 496, decided in 1887, which is largely relied on by respondents’ counsel, that the court was unable to find a single case in the United States where this question had been decided. The charter, in that case, appears to have been entirely silent in regard to the removal of officers, and particular stress seems to have been laid upon the broad powers conferred by the statutes of West Virginia upon the common councils of towns and villages.
Under the facts .of this case, however, we are not required to enter upon an extended discussion or determination of this question. The tendency of the decisions in this country is to regard municipal corporations as an aid to the state government, and to limit their powers to those which are expressly derived from the constitution and 'from legislative enactments, and to those implied powers only which are necessary to carry out the powers thus conferred. The highest tribunal in this country has declared the well-established rule on this subject in Ottawa v. Carey, 108 U. S. 121. Chief Justice Waite, speaking for the court in that case, said:
“Municipal corporations are created to aid the state government in the regulation and administration of local affairs. They have only such powers of government as are expressly granted them, or such as are necessary to carry into effect those that are granted. No powers can be implied, except such as are essential to the objects and purposes of the corporation as created and established.”
See, also, Taylor v. Railway Co., 80 Mich. 77; People v. Hurlbut, 24 Id. 69. In this latter case Mr. Justice Christiancy said?
“But the common council of the city is not the city, nor the legal entity known as the corporation of the city. It is itself but a public board for municipal governmental purposes, with just such powers (not forbidden by the Constitution) as the Legislature have thought, or may hereafter think, proper to confer.”
In discussing the power of a common council to expel a member, the supreme court of New Jersey, in State v. Jersey City, 25 N. J. Law, 539, recognized the power of a corporation at common law to expel a member for sufficient cause, and in its opinion said:
“But the jurisdiction exercised in this case' is not derived from the common law. The common council is not the corporation, and, whatever powers a municipal corporation may have to amove or expel a member' for cause at common law, it is clear that the corporation itself has not by any by-law delegated any of them to the common council, and that body, therefore, cannot avail itself of the common-law jurisdiction vested as an inherent right in the corporation itself to expel a member of their own body. The council derives its jurisdiction from the charter of the corporation.”
It is argued that -the power of removal of the city counselor is necessary in order properly to protect the interests of the city from an incompetent or corrupt incumbent, and therefore it must be inferred that the Legislature recognized this power as existing.- Courts may not surmise or speculate as to the causes or reasons for legislative enactments. With the reasons for conferring or withholding a power the courts have no concern. They must interpret the statute as they find it. The same argument was made in People v. Woodruff, 32 N. Y. 355. After stating the serious consequences which it was claimed would be entailed upon the community under the interpretation given, the court said:
“To obviate these alarming and startling results it is contended that we are to imply and infer an intent on the part of the legislature to have the power lodged in the comptroller, in the first instance, remain with and to be exercised by him whenever the exigency should arise which might-call for it. It is a dangerous principle to imply power when it is not conferred by legislative authority in clea;’ and distinct terms. It is always competent for the legislature to speak clearly and without equivocation, and it is safer for the judicial department to follow the plain intent and obvious meaning of an act, rather than to speculate upon what might have been the views of the legislature in the emergency which may have arisen. It is wiser and safer to leave to the legislative department to supply a supposed or actual casus omissus than attempt to do it by judicial construction.”
The position, character, and duties of the officer created by the act are important considerations upon the principle under discussion. He is required to be an attorney of five years’ practice, to give a bond of $5,000 for the faithful performance of his duties, and to devote his entire time to the duties of the office. He must therefore abandon all his other legal business. He is made the legal adviser, not only of the common council, but of all the other departments of the city government and the boards thereof, except the board of police commissioners. It is apparent that the Legislature contemplated that a man of high .standing and character in his profession should be appointed, to this important position. Is it unreasonable to infer that the Legislature intended to place this important office beyond the control or fear of any other department? That such a man should become incompetent, corrupt, and neglectful of his duties would be an exception to the rule. If it be said that the exception might arise, it may likewise be said that in the change of administrations, when the political complexion of the common council might change, false charges might be made for political purposes in order to remove the incumbent, and replace him by another of the same political faith as the council. Experience has demonstrated that there is at least as much danger of the one as of the other. These considerations may have had weight with the Legislature. The reasons for a fixed term without the power to remove may have had greater weight with legislators than the risk of malfeasance or misfeasance on the part of the officer. They may well have deemed it important that the head of such a department should be free from all fear of removal or interference on the part of the common council. If, however, it was a casus omissus on the part of the Legislature, it is one which the Legislature and not the courts must supply.
No support for the position of respondents can, we think, be found in the charter itself. The subject of removals is completely covered by its provisions, and it excludes removals in any other manner than is there provided. Elective officers, with few exceptions, can be removed for cause. This, under the well-established rule, excludes the power to remove at will. Certain appointive officers, under the charter, can be removed at will, without charges or trial. Charter, chap. 4, § 19. This likewise excludes the power to remove for cause. Where the power to remove at will is given, the law does not contemplate that the officer may be put to the expense of a trial for cause, and have charges of official misconduct placed before the public. Dill. Mun. Corp. § 183 (4th ed. § 245); State v. Jersey City, 25 N. J. Law, 536; Speed v. Common Council, 97 Mich. 198, and authorities there cited; State v. Somers, 35 Neb. 322; Crawford v. Township Boards, 24 Mich. 248. In Mead v. County Treasurer, 36 Mich. 416, 418, it is said:
“ The. general statute concerning removals contains no provision applicable to superintendents of the poor. Hence, there would seem to be no provision for the removal of these officers except the specific regulation in the supervisors’ act. It would therefore seem that the Legislature meant to confer on the supervisors a power to remove on the two specified grounds, but had no intention to give the right on any other ground, or to delegate to the supervisors a discretionary general power to .remove. The provision in the supervisors' act, in so far as -it applies to superintendents of the poor, would be rendered entirely gratuitous if a general authority to remove were to be implied, or should be considered as a consequence of the power to appoint.''
It is also significant that the act gives the common council no voice, either in the appointment or confirmation of the city counselor. The absolute authority and. the entire responsibility of his appointment are given to the mayor, without power of removal at will or for cause. There is nothing in the act which shows any intention on the part of the Legislature to confer such power upon the common council; nor do we think such power is inherent in the council, which, is the governing body of the municipal corporation, and derives its powers from express legislative enactments. \ .
The motion to vacate the order must therefore be denied, with costs.
The other Justices concurred. | [
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Hooker, C. J.
The complainants file a bill to enjoin proceedings before a circuit court commissioner to obtain possession of premises claimed as a homestead by complainants. The defendant claims title under an execution sale, the validity of which seems to depend upon this question of homestead.
Mrs. Kaeding was carrying on the millinery business in '1883, when the premises were purchased by complainants for a home. In December, 1884, they occupied the premises. In 1885, they moved to another part of the city (Detroit) to resume the millinery business, owing to the inability of the husband to work. They remained there four years, and from there went to Michigan avenue, where the millinery business was carried on for two years. The husband recovered after two years’ sickness, and worked during tlie last four years. After filing this bill the complainants again occupied the premises.
The premises became a homestead by the first occupancy, and the complainants testify that it was their intention to-return at some future time. While the parties had resided elsewhere for a long period, there is testimony from both husband and wife of a continuing intent to return to their home after the object of their temporary absence should have been attained. Under our decisions, such intent, if it existed, protected the homestead. Riggs v. Sterling, 60 Mich. 643; Evans v. Railroad Co., 68 Id. 602; Bunker v. Paquette, 37 Id. 79; Earll v. Earll, 60 Id. 30; Pardo v. Bittorf, 48 Id. 275; Karn v. Nielson, 59 Id. 380; Beecher v. Baldy, 7 Id. 488. The good faith of the complainants is a question of fact (Hoffman v. Buschman, 95 Mich. 538), and we feel warranted in finding that the homestead was not abandoned, íhe circuit judge, who saw the Avitnesses and heard their testimony, reached this conclusion, Avhieh is an assurance of the justice of this view of the case.
Decree affirmed.
The other Justices concurred. | [
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Chandler, J.
Plaintiffs filed a petition for a writ of mandamus to compel defendant to vacate its .order, rule or regulation requiring the licensing of brewery drivers and helpers, to cancel such licenses previously issued and pending applications therefor, and to make restitution of fees collected under said order, rule, or regulation. An order to show cause was issued and upon defendant’s return and plaintiffs ’ reply thereto, the following concise statement of agreed facts appeared:
“The liquor control commission on January 29, 1936, passed and adopted the following rule:
“ ‘Moved by Commissioner Gormely, seconded by Commissioner Gorman,
“ ‘That all salesmen, sales representatives, and sales promoters, of beverage alcoholic liquor sold or offered for sale in the State of Michigan by manufacturers, wholesalers, or importers to duly authorized licensees of the liquor control commission, be required to register with and procure a license from the commission under such terms, conditions and requirements as the commission may from time to time establish or require. The license shall be renewable annually on the 1st day of May of each year.
“ ‘Licensees are hereby prohibited from purchasing aleoholie liquors from any but a duly registered and licensed salesman as provided herein; and to do so will be cause for suspension or revocation of the license of such licensee in the discretion of the commission. ’
“The plaintiffs, Kelly, Armstrong and Dubrul, are brewery truck drivers and helpers. In addition to making deliveries with their trucks, part of their work is to take orders from customers for beer manufactured by their employers and deliver the same. The Brewery Drivers’ and Helpers’ Local No. 38 is a voluntary labor union of which the plaintiffs Kelly, Armstrong and Dubrul are members.
“Plaintiffs contend that this rule is invalid and that the liquor control commission had no authority under the Constitution and statutes of the State of Michigan to pass and adopt said rule. The plaintiffs were required to obtain salesmen licenses under protest and they ask that all license fees paid therefor be returned to them. Plaintiffs also claim that they are not salesmen, sales representatives or sales promoter's within the meaning of the rule.
“The liquor control commission avers that the rule is valid and enforceable against the plaintiffs.”
Subsequent to the institution of these proceedings the defendant, on July 8, 1936, passed and adopted the following:
‘ ‘ Moved by Commissioner Gorman and supported by Commissioner Gormely:
“That registration fees for licensed drivers and helpers of breweries, wineries, distilleries and wholesalers be reduced from $5 to $1 effective May 1, 1936, and that a refund be made to. each applicant of the above classification. It is understood that this does not apply to salesmen, sales representatives, or sales promoters.”
It appears that defendant has refunded four dollars of the amount paid under the resolution of January 29, 1936, to all those who are purely truck drivers and helpers.
The liquor control commission was established by authority of Const. 1908, art. 16, § 11, as amended. Pursuant to the authority thus conferred the legislature enacted Act No. 8, Pub. Acts 1933 (Ex. Sess.), as amended. Section 7 of said Act provides:
“The commission shall adopt rules and regulations governing the carrying out of this act and supplemental thereto. ’ ’
It may be stated that we believe that defendant’s resolution of July 8, 1936, does not require that plaintiffs make application for and secure a license but merely requires them to make application for registration. In our opinion defendant has the power to require such registration under the authority conferred by section 7, granting the authority to make rules and regulations, and may impose a reasonable fee to defray partially the expense of such registration. It is not claimed that the fee of one dollar levied in the instant case is excessive or unreasonable.
The writ is denied. No costs will be allowed as a public question is involved. '
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Potter, JJ., concurred. | [
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Grant, J.
Plaintiff derives his title to the lands in .suit by patent from the State of Michigan, and by mesne conveyances from the patentee to him. Defendant relies upon a tax deed from the Auditor General, dated September 17, 1891, for the delinquent taxes for the year 1887. The proceedings to enforce the tax lien, which resulted in a sale of the lands and the issuance of the deed in controversy, were had under the tax law of 1889. Plaintiff's grantor,' who was then the owner of the land, was not served with the subpoena, but was brought in by publication of the notice required by the statute. The proceedings to foreclose the tax lien are conceded to be regular. Plaintiff was permitted to introduce proof tending to show the invalidity of the tax assessed.
The sole question to be considered is whether the decree entered by the circuit court in chancery in the tax proceedings is conclusive, and whether a person not served with process can, in an action of ejectment, contest the validity of the tax. We think the question is ruled by In re Petition of Wiley, 89 Mich. 58. The provisions of the statute applicable to this case will there be found fully stated. Every owner of land is held to know the law. He knows that his land is subject to taxation; that he must pay his fair share of the public revenue; and that, if he fails to do so, proceedings will be taken under the law against his land. ' The statute makes the publication the equivalent of personal service. It is his duty, therefore, to watch the proceedings provided for by the statute for the foreclosure of the lien, and interpose any objections' he may, have to the validity of the tax. The purpose of the statute is to give every person his day in court in an equitable pfoceeding. He has no fight to assume that he will be. served with process, especially if he be a nonresident.
The decree in the chancery proceedings was therefore conclusive upon the plaintiff, and it was error to permit him to question the validity of the tax.
Judgment reversed, and entered in this Court for the defendant, with the costs of both courts.
The other Justices concurred. | [
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Sharpe, J.
On the night of March 28, 1936, at about the hour of 8 p. m., plaintiff, a woman of mature years, in crossing Plainfield avenue in the city of Grand Rapids was struck by an automobile driven by defendant Adrian M. Noorthoek, title to which automobile was in joint names of Adrian Noorthoek and Minnie Noorthoek, his wife.
Plainfield avenue runs northeasterly and southwesterly about 30 degrees east of north. It is 42 feet between curbs and in the center of the street are two sets of street car tracks. The easterly rail of the east track is 13.6 feet west of the east curb and the westerly rail of the west track is 13.6 feet east of the west curb, and between the two tracks is a distance of 5.4 feet. Sweet street runs east and west and intersects with Plainfield avenue.
Plaintiff claims she was walking west on the southerly crosswalk across Plainfield avenue; that when she stepped off the east curb she saw defendants’ car traveling from the north on the westerly side of Plainfield avenue; that she walked to the middle of the street and again made observation to the north and saw the defendants’ car 160 to 164 feet north of where she was standing but that she formed no judgment as to its speed; and that she continued on to the west and when she stepped over the west rail of the westerly track, or between the westerly rail and the curb, she was hit by defendants’ car.
Defendant Adrian Noorthoek claims that plaintiff came from the westerly curb traveling in an easterly direction at a point some distance south of the crosswalk; that she ran into the right front portion of his car and was thrown to the center of the street; and that he broug'ht his car almost immediately to a stop. Plaintiff was taken to Butterworth Hospital where the doctor found an injury to her left foot, right hip, both knees and a possible skull fracture.
The cause was tried before the court and a jury and resulted in a verdict for plaintiff. The record also shows that defendants moved for a directed verdict at the close of plaintiff’s proof. This motion was denied as was also their motion for a new trial.
Defendants appeal and contend that .the trial court was in error in refusing to direct a verdict of no cause of action as to Minnie Noorthoek on the ground that she had no control over the operation of the automobile which collided with plaintiff; that plaintiff was guilty of contributory negligence as a matter of law; and error upon the part of the trial court in charging the jury as follows:
“If the defendant failed to bring his car under such control on approaching this intersection in question, that is, bring it under control where he could bring it to a stop within the assured clear distance ahead, if he failed to do that upon approaching this intersection, then that would constitute negligence on the part of this defendant. As I have already stated to you, it is the duty of one operating an automobile to operate it within the assured clear distance ahead at such speed that they can stop it within the assured clear distance ahead, so that they may avoid striking objects or persons upon the highway. * * *
“I will say to you further, as a matter of law, that this plaintiff in crossing this intersection, after she had entered the intersection and proceeded across the center of the intersection, and was approaching the west half and about to cross the west half, that it was the duty of this defendant, traveling from the north and on the westerly side of this highway, to yield the right-of-way to this pedestrian; in other words, it was his duty to see her as she was crossing-in the maimer in which she claims- — -understand he claims she was not crossing there — but if she was crossing as she claims, it was his duty to see her and to yield the right-of-way to her and avoid striking and running into her. ”
We find no error upon the part of the trial court in its refusal to discharge Minnie Noorthoek, wife of Adrian M. Noorthoek, and a joint owner of the automobile. Section 4648, 1 Comp. Laws 1929, provides as follows:
‘ ‘ The owner of a motor vehicle shall be liable for any injury occasioned by the negligent operation of such motor vehicle. * * * The owner shall not be liable, however, unless said motor vehicle is being driven with his or her express or implied consent or knowledge. It shall be presumed that such motor vehicle is being driven with the knowledge and consent of the owner if it is driven at the time of said injury by * * * (an) immediate member of the family. ’ ’
In Buchel v. Williams, 273 Mich. 132, we held a joint owner liable when the car was driven with her knowledge and consent and for the benefit of the joint owners. . The ruling in the above case is controlling as to the facts in the case at bar.
In determining whether or not plaintiff was guilty of contributory negligence, we have in mind that on the night of the accident the weather was clear, visibility good, and the pavement dry, the street lighted at the intersection, there were no cars approaching to interfere with either plaintiff’s or defendant’s view and the scene of the accident being in a business section within the meaning of 1 Comp. Laws 1929, § 4697 (b), as amended by Act No. 119, Pub. Acts 1933, which provides a maximum speed of 15 miles per hour, and art. 7, § 1, of the traffic ordinances of the city of Grand Rapids, which provides as follows:
“The operator of a vehicle shall yield the right of way to a pedestrian crossing the roadway within any marked crosswalk or within any unmarked crosswalk at the end of a block, except at intersections where the movement of traffic is being regulated by police officers or traffic signals.”
In Arnell v. Gordon, 234 Mich. 140, this court held, on reviewing the denial of defendant’s motion for a directed verdict because of plaintiff’s contributory negligence, that the evidence must be considered in the light most favorable to plaintiff’s right to recover. Under plaintiff’s view of the case, and as the jury found, plaintiff was crossing this intersection on an unmarked crosswalk at the end of a block where traffic was not being regulated by police officers or traffic signals. As she entered Plainfield avenue from the east she looked to the north and saw a car approaching; she then walked to the middle of the street, a distance of 21 feet, again looked to the north and saw a car approaching 160 to 164 feet away, but made no observations as to its speed; she then proceeded across the street. She made a third observation when she was half way between the west car rail and the west curb and then saw defendants’ car a little past the center of the intersection and made a dash to get away from the car but was hit.
In Guina v. Harrod, 275 Mich. 393, this court said:
“Pedestrians have the right to cross the street at street crossings even on a through street. They are not required to anticipate that drivers will violate ordinances, statutes or rules of safety.”
In Petersen v. Lundin, 236 Mich. 590, we said:
“There is no rule of law requiring a pedestrian to rivet his eyes on an approaching automobile. He should look but if, having looked, it appears safe to cross, he may proceed, and his care is not to be determined solely by the fact he was struck and was not at that second looking at the automobile.”
In the case of Nickels v. Hallen, 247 Mich. 291, the plaintiff was crossing Main street at an intersection in the night time and was struck by defendant’s automobile. The court said:
“The intersection was well lighted and no traffic interfered with view of pedestrian or car driver, and yet plaintiff claimed lie looked before and while crossing, and did not see the car until it struck him, and the driver claimed he did not see plaintiff until the car was about two feet from him. When plaintiff left the curb to cross the street he saw a car coming, 100 feet, or more, away. That was, undoubtedly, the car which struck him. Whether plaintiff exercised reasonable care under the particular circumstances described by him was a question of fact for the jury and not of law for the court, and the trial judge was right in so holding. ’ ’
The case at bar is to be distinguished from Richardson v. Williams, 249 Mich. 350; Neeb v. Jacobson, 245 Mich. 678; and Tolmie v. Woodward Taxicab Co., 178 Mich. 426. In these cases the rule is settled that a pedestrian who looks but fails to see a car which is plainly in view cannot recover. The instant case is also to be distinguished from the recognized rule of law that where a person goes into a known place of danger and fails to look and is struck by a car that he would have seen had he looked, he cannot recover. See Dier v. Voorhees, 200 Mich. 510; Tolmie v. Woodward Taxicab Co., supra.
In the case at bar the evidence shows that defendants ’ car was 164 feet away when plaintiff started to cross the west half of the intersection, a distance of 21 feet. She had a right to assume that defendant would drive the car in compliance with the city ordinance which gave plaintiff the right of way at such crossings and whether plaintiff exercised reasonable care under the circumstances was a question of fact for the jury.
Defendants next contend that the court was in error in giving the instructions hereinbefore mentioned and rely on Nickels v. Hallen, supra. In that case the accident happened in the city of Ann Arbor at a street intersection. The plaintiff testified that, before attempting to cross the street, he looked, but did not see the car nntil it struck him and the driver claimed he did not see plaintiff until the car was two feet from him. We there said:
“Whether motor vehicles must travel slowly, in approaching a crosswalk at a street intersection, depends upon circumstances calling for such a degree of care, and not upon the bare fact that people have a right to cross there. The duty is not upon the driver of a car to have 'control of the situation’ and be able, under any and all circumstances, to stop soon enoug’h to avoid an accident. Such a rule would make a driver guilty of negligence by the mere happening of an accident at such a point, no matter how suddenly confronted with a situation by the negligence of others, and would constitute him an insurer of the safety of pedestrians at such a place.”
The duty of drivers of cars at intersections is well stated in Watrous v. Conor, 266 Mich. 397, where we said:
“Drivers of automobiles must at all times have their cars under such control that they will, when approaching a street intersection, be able to avoid endangering the safety of others, who may be lawfully upon the intersection or reasonably expected to be there, 'and if the defendant failed to bring his car under control upon approaching the intersection in question, he is guilty of negligence.’ ” •
In the case at bar the defendant admits that there was nothing to obstruct his view of the crossing and if plaintiff was crossing from east to west as she claims, then it was defendant’s duty to see what was plainly to be seen and to yield to her the right of way in conformity with the city ordinance relating there to, moreover, under such circumstances it was the duty of defendant to avoid running into and striking plaintiff. We find no error in the charge of the trial court as applied to the facts in this case.
The judgment is affirmed. Costs to plaintiff.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Potter, and Chandler, JJ., concurred. | [
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Hooker, J.
Plaintiff, being the owner in fee-simple of lot 10, block B, a parcel of land in the city of Flint, contracted to sell the same to John W. Shearer by an instrument in writing dated June 16, 1888, for the sum of $400. Shearer took possession and made improvements, paid $75 of the contract price, besides interest, and occupied the premises at the time of a fire, which consumed the dwelling thereon. The plaintiff had previously contracted the premises to one Giles, who had procured insurance upon the building from defendant’s agent, though in another company, which insurance was payable to the plaintiff as his interest might appear. This insurance being about to expire, Algoe, the agent, called upon Hamilton, the plaintiff, to see if he wanted to keep it insured. There was nothing to show that Algoe knew anything about the Shearer contract. Algoe testified that Hamilton told him that the property was his, that it had-come back to him from Giles, and to insure it in his (Hamilton’s) name. Hamilton testified that he thought that he told Algoe that he had a contract out with some people, but they had not been in the place for a long time, and he thought that they had abandoned it, and he would have the policy made in his own name. The policy was dated October 20, 1890. One year’s interest had been paid to him on June 18, 1890, and a like payment was made June 4, 1891, by Shearer, who was in possession all of the time after his purchase. The fire occurred October 19, 1891.
The policy was a Michigan standard policy, and contained the clause in relation to sole and unconditional ownership. This policy is in the form prescribed by the insurance policy commission under chapter 137, How. Stat.
The eighth and ninth assignments- of error are based upon the refusal of the court to direct a verdict for the defendant, upon the ground that the policy was void ab initio, because plaintiff’s interest in the premises was a conditional, and not a sole, ownership.
An elaborate and forcible argument is made by appellant’s counsel, based upon the decision of this Court in the case of Clay Fire & Marine Ins. Co. v. Manufacturing Co., 31 Mich. 346. In that case the insurance company was sued upon a policy issued to the plaintiff. The policy described the property insured as “their one-story frame salt block,”'etc. It also contained the following, viz.:
“ If the assured is not the sole and unconditional owner of the property insured, or (if said property be a building or buildings) of the land on which such building or buildings stand, by a sole, unconditional, and entire ownership and title, and is not so expressed in the written portion of the policy, then, and in every such case, this policy shall be void.”
The company defended upon the ground that when the policy was issued the plaintiff was not the entire, sole, and unconditional owner of the property insured; also that the interest of the plaintiff was not expressed in the written portion of the policy; whereby, it contended, the policy 'was void ab initio. This was upon the claim that at the time the policy was issued the premises were occupied by a vendee, who was the equitable owner under a land contract from plaintiff, fully paid, and the plaintiff had no interest in the premises, except that of trustee 'of- the naked legal title. Proof of these facts being excluded, the case was reversed by this Court, which held that the clause describing the property conveyed no other idea than .that of complete ownership by the assured, by a sole, unconditional, and entire ownership and title; that the proof offered would have shown Babcock (the vendee) to have had such a title as would have warranted a statement in the policy that the property belonged to him; and that the plaintiff could not be said to hold by a sole, unconditional, and entire ownership and title when another had so complete a right and interest that he might be rightly considered the owner. The opinion adds: “ The point appears too clear to justify elaborate discussion." It is further said that each could not have an absolute interest held by a sole, unconditional, and entire ownership and title.
Counsel contend that this case lays down the doctrine that a vendee under a land contract may, under a policy similar to the Michigan standard policy, safely permit himself to be described as owner, so long as he makes no misrepresentations concerning the condition of the legal title or of his interest. They strengthen their position by reference to several authorities which support the proposition that a vendee in a land contract may be said to be the sole and unconditional owner of the property contracted. Morris v. Hoyt, 11 Mich. 9, 19; Converse v. Blumrich, 14 Id. 109; Clay Fire & Marine Ins. Co. v. Manufacturing Co., 31 Id. 357; Farmers’ Fire Ins. Co. v. Fogelman, 35 Id. 481; Dupreau v. Insurance Co., 76 Id. 615; Hough v. Insurance Co., 29 Conn. 10.
In Farmers’ Fire Ins. Co. v. Fogelman, 35 Mich. 481, it. was held that a vendee had such an interest, though the contract was only in part performed by him, as would support a policy issued to him upon the express representation that he was owner. He made no 'misrepresentation as to the condition of the title, and the agent did not inquire. The Court said that—
“He was owner by equitable title, and the risk of destruction was his risk. Nobody was under obligation to rebuild for him, and he could protect himself only by insurance.”
It does not appear whether the clause involved here was a part of the policy or not. But in Dupreau v. Insurance Co., 76 Mich. 615, the case arose upon the Michigan standard policy, which does contain it. The case was in other respects similar to the Fogelman case, and the Court said:
“He was in actual possession at the time of taking the policy, and equitably the owner in fee; and we think he may be said at that time to have been the entire, unconditional, and sole-owner, within the meaning of the terms of the policy.”
We may therefore agree with counsel that a vendee is, by these decisions, an owner under this clause, though the vendor may hold the legal title to insure performance of the contract. And it would seem logically to follow that the vendor is not such owner, and our attention is not called to any ease where the' vendor has been held to be such.
There are, however, two decisions cited by counsel for plaintiff which should be discussed in connection with this case. The first is the case of Hoose v. Insurance Co., 84 Mich. 309. Margaret Hoose, the owner, conveyed the land by deed to one Morgan, to secure $2,000, taking back a contract whereby he agreed to reconvey on payment of that sum with interest. Two years later she insured it as her property. Subsequently she surrendered her contract to Morgan, who at the same time executed a similar one to her daughter, Maggie Hoose, who thereupon took an assignment of the policy of insurance from her mother, with the consent of the agent of the company. • It was claimed by the company that the policy was void because Margaret Hoose was not the sole and unconditional owner of the building at the time she procured the insurance. The policy read as follows; viz..
“ Insure Mrs. Margaret Hoose to the amount of * * * one thousand dollars on the two-story frame building,” etc.
The Court held that, in construing the clause referred to, the whole policy should be taken together; that the object sought by the assured was to obtain indemnity against loss of ’her interest; that if the company, which made the policy upon a verbal application, desired to know what interest it was insuring, it should have stated it in that part of the policy pertaining to the riskj that it was the intention of the parties to issue a valid and binding contract of insurance, valid and binding from the time of acceptance of the same by the assured. The Court further said that,—
“To give any reasonable force and effect to this clause of the policy, it can 'only be held to apply to such changes as arise after the policy has been delivered and accepted, in the ownership of the property, * * * and it does not apply to an existing state or condition of the property at the time the jrnlicy was issued. It looks to the future .for protection of the insurer,- and not to the present, only in so far as the preceding portion of the policy is violated by a misstatement or concealment of any fact material to the risk.” - '
The Court remark upon the fact that the policy was issued without stating therein what her interest was, and hold that under the policy, construed with the proofs in the case, the defendant must have understood the condition of the title, and intended to insure whatever interest Mrs. Hoose had. It may be suggested in passing that Mrs. Hoose was at tbe time of insuring either a mortgagor or a vendee under the land contract, and, in either event, under the decisions hereinbefore cited, might have been held to be the owner of the premises.
The other case referred to is Hall v. Insurance Co., 93 Mich. 184. The policy was issued to J. C. Hough “on his two-story frame dwelling. ** It was a Michigan standard policy, made upon an oral application. At the time it was issued, Hough held as purchaser under a land contract, the price being partly paid. Soon after, Hough contracted in writing to sell the building insured, with a part of the premises upon which it stood, to Stevens, giving him possession. Still later, Hough assigned his interest in the original contract, and the policy, to Hall, and the agent of the company assented to the indorsement that the policy should be payable to Hall. In July, 1890, a few months after the assignment mentioned, Stevens was given notice to quit the premises, and that the contract had been declared void; and the Court find that Stevens* contract was void, and that he was a tenant holding over without permission. So that in this case, like the other, the plaintiff’s assignor was, not only when the policy was issued, but at the time of the assignment, a vendee under a land contract, who, as the Court expressly state (page 189), had such an interest in the property insured as would support the recitation in the policy that it covered “ his two-story frame dwelling.** This clearly was within the rule of the cases cited.'
The differences between the Hoose case and the present one are: (1) That in the former the premises were described as “the dwelling;** in this case, “his dwelling.** (2) That in the Hoose case the policy issued, to the owner, i. e., the mortgagor or vendee, while in this case it issued to the vendor in an existing contract of sale. The Hall case differs from this in the latter particular only. It follows that the Hall case differs fro'm the Hoose case in the first particular. The Hoose case, then, has not gone so far as to hold that the clause in question must necessarily have the construction given in all cases, but only where the circumstances show that the parties mutually intended to insure the interest of the applicant, whatever it might he; and, if the Hall case seems to go further, it is upon the authority of the Hoose case, which was supposed to involve “ precisely ■ the same question.” But we think* the Hall case does not go to the extent contended for here, for it lays stress upon the fact that the assured had such an insurable interest as warranted the statement that it was his dwelling.
By the express terms of this policy the company undertook to insure, not “the dwelling,” but “his dwelling.” At the time it was issued the plaintiff was not such owner as would support the statement that it was his, under a policy that was to be void if he was not. the sole and unconditional owner. The circumstances in the light of which the policy was to be construed do not justify us in saying that it was the intention of the insurer to insure such interest as tlie applicant might have. Under such a clause an insurer would have a right to understand that i.t was insuring the one who was the owner, not of an interest of some sort or other, such as that of a mortgagee, but of the sole and unconditional title; and in such case it is a reasonable construction to say that the clause in question would refer to the existing condition of the title, and not alone to subsequent changes. But under the proofs it was a question for the jury to determine whether the agent of the company insured the property understanding that the plaintiff “had a land contract out,” as testified by him. There is no reason why his interest was not insurable, and if it was done understandingly by tbe company it is estopped from denying its liability, under tbe settled law. of tbis State.
Tbe judgment will be reversed, "and a new trial ordered.
The other Justices concurred. | [
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McGrath, J.
Respondent was informed against for grand larceny, pleaded not guilty, and upon trial was convicted.
The questions raised as to the preliminary proceedings will not be considered, as they should have been raised before pleading to the information. Washburn v. People, 10 Mich. 383; People v. Jones, 24 Id. 215; People v. Dowd, 44 Id. 488; People v. Hare, 57 Id. 505; People v. Williams, 93 Id. 623.
But three assignments of error remain to be considered:
1. That the evidence was insufficient to warrant the conviction.
2. That the prosecuting attorney expressed an opinion as to the guilt of the prisoner.
3. That the witness Monheim was improperly allowed to testify respecting the trouble that he had had with respondent subsequent to the larceny of the bicycle.
It is sufficient to say that there is no force in the first contention.
As to the second, the prosecuting attorney did not express an opinion as to the respondent’s guilt. The remark made was that—
“ If you believe the testimony of these various men, corroborated by the facts as they are found concerning the bicycle, then I think you would be justified in convicting the defendant, if you have no reasonable doubt about it.”
On his attention being called to the matter, he said:
“I am here for the purpose of analyzing the testimony, and placing it before you; and, if I have made any remark, conclusions, or inferences, I made them with referencé to the testimony, and no further. Every inference I have about this case, and every proposition, is on the sworn testimony in this case, testified to, and it is on that alone I wish you to consider, and upon that I wish you to return a verdict.”
Then, at his request, the court instructed the jury that “the prosecution has no right to express an opinion as to the guilt or innocence of the defendant.”
As to the third assignment, the principal witness for the people was cross-examined as follows:
“Q. Did you not have some trouble previous- to this?
“A. Previous to what?
“Q. Previous- to buying the bicycle?
X‘A. No.
“Q. Did you have some afterwards?
X(A. Yes.
“Q. You did have some trouble with him?
X‘A. Yes.
“Q. And you would kind of like to get even with him, wouldn’t you?
“A. No.
“Q. You would not want to get even?
xtA. Yes, I would like to get even with him.
XXQ. That is what I thought; you would like to get even with him; that is what I thought. That is all.’’
On redirect, witness was allowed to explain the nature of ■the trouble which he had “afterwards.’’ We think this was entirely competent. The defense opened the door, and sought to affect the credit of the witness by an exhibition of feeling growing out of what occurred subsequently, and the people had the right to explain it.
We find no error in the record, and the judgment is .-affirmed.
The other Justices concurred. | [
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Long, J.
A rehearing was ordered in this case. The questions have been reargued, and, after a careful examination of the record, we are satisfied that there was evidence to go to the jury upon the question of novation, — the same conclusion reached when the former opinion was rendered.
The judgment will therefore be affirmed.
The other Justices concurred. | [
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Montgomery, J.
This is an action of ejectment. The plaintiffs derived their title through a levy upon and sale of the lands in question in a suit instituted against the defendant George W. Balch, in whom the title appears to have been. The defense was that at the date of the levy and sale the property in question was a homestead, and the plaintiffs sought to meet this defense by showing, as they attempted to do, that the defendants* occupancy was merely colorable; and, further, that, prior to any occupancy by the defendants, a lien had been obtained by attachment, which continued in force, and that, therefore, no homestead right could attach as against the attachment lien.
We are satisfied that' the question of whether the occupaney of defendants was merely colorable, and .a device to defeat the intended levy, and without any actual purpose of making the premises a home, was, under the testimony, properly submitted to the jury. But the circuit judge also submitted to the jury the question of whether a lien was created by attachment of the lands prior to the date when defendants claim to have entered upon possession of them as a homestead. Indeed, his charge assumed that such lien by attachment did exist. The errors assigned relate to the rulings upon this subject.
The writ of attachment was sued out on the 1st day of 'November, 1887. It appeared, however, that-this attachment was dissolved by an order of the circuit judge on the 24th of January following. The defendants’ testimony tended to show that their occupancy of the premises as a homestead began February 14, 1888. The levy under the execution was'not made until the 24th of February, 1888. The plaintiffs sought to show that the proceedings in which the order dissolving the attachment was made were removed to the Supreme Court by certiorari. No transcript of the proceedings in the Supreme Court was' offered, but an alleged- copy of a certiorari, not attested by any public officer, was admitted, the court saying at the time, “1 shall admit that as being a paper served on you” (meaning defendants’ attorney). This might have been proper if competent proof of the issue of this writ of certiorari and of the pendency of the suit in the Supreme/ Court had been given, but not only was there a failure to make this proof, but the circuit judge in his charge to the jury treated this proof as sufficient to show that the attachment lien .still continued. He said:
“ They did levy an' attachment, and you have it in evidence when they levied it. They did get a judgment, and under that judgment levied an execution, and under that execution there was a sale made, and the court thereby, under a proper proceeding, sold the lands to the plaintiffs, through the sheriff; and, if this land was not a homestead, they are entitled to a verdict to-day, — that is, if that land, previous to any lien, was not a homestead at the time and. previous to that, then the plaintiffs Jaycox are entitled to a verdict.”
This was error. The attachment was dissolved, and there was no competent proof to show that it was ever reinstated.
The judgment will be reversed, and a new trial ordered.
The other Justices concurred. | [
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McGrath, J.
Plaintiff was a locomotive engineer in defendant's employ, and, while switching in the yard at Muskegon, was injured in a collision. The sketch on next-page will illustrate the situation of the tracks.
Plaintiff, while backing his engine and drawing a train of freight cars on the spur A towards the main track, collided with flat cars which were being backed upon the-main track from the spur B. Two of the freight cars were thrown some distance west of the main track, one of them striking and breaking a telegraph pole, which was-about 10 inches in diameter, and stood west of the main track. One of the flat cars reared, and struck the corner of the tank on the tender of plaintiff’s engine, breaking a hole in the tank, and raising and slewing it around against, the engine cab, pinioning and injuring plaintiff. Plaintiff recovered a verdict of $9,000, and defendant appeals.
The sole negligence charged is the failure to properly fasten the tank to the frame on which it rested. The tank was moored at the rear with two bolts, from five-eighths to three-quarters of an inch in thickness, reaching from ears or lugs attached to the tank down through the 'woodwork, with nuts on the lower ends. These bolts were drawn out of their sockets. One was broken off several inches from the head, and the other partially broken. There was no testimony tending to show that, for all ordinary purposes, tliis tank was not securely fastened. The engine was old, had been in the passenger service for years, and was then transferred to this service, in which it had been for some time. The tank had stood the test of the ordinary jars to .which it had been subjected, and there was no evidence that it had been loose, or that any weakness had been displayed. The only testimony offered was that each of the ears or lugs had two holes and but one bolt, and that in some cases four bolts were ordinarily used, and in others but two. These tanks are not intended to act as buffers in any case, much less in cases of collision. The evidence falls far short of making out a case of negligent construction, and it is unnecessary to discuss the other questions raised. The court should have directed a verdict for defendant.
The judgment is therefore reversed, and a new trial granted.
Hooker, O. J., Grant and Montgomery, JJ., concurred. Long, J., did not sit. | [
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Bushnell, J.
This is an appeal from a decree requiring defendant Carrie Hemmeter, widow of William F. Hemmeter, to pay an assessment upon 455 shares of the capital stock of the People’s American State Bank, of Saginaw. Mr. Hemmeter, the owner of this stock, died on April 25, 1931, and no transfer of the stock has ever been made upon the books of the bank. His last will and testament contains the following:
“Second, I give, devise and bequeath to my beloved wife, Carrie Hemmeter, all of my property, real, personal and mixed for her sole use and benefit, with full power and authority to sell, lease and dispose of and to execute and acknowledge all instruments and conveyances, excepting and providing, however, that our homestead shall not be sold and shall always remain the home for my descendants.
“Third, I bequeath to my son, Arthur W. Hem-meter, the sum of $1,500 to be paid to him in cash after my death.
“Fourth, I will, devise and bequeath all the residue of my estate real, personal and mixed, that shall be left after the death of my said wife and not having been used or disposed of by her during her lifetime to my son, Arthur W. Hemmeter.”
The will was admitted to probate July 13,1931, on petition of Mrs. Hemmeter, the executrix. The inventory lists the stock in question as having an appraised value of $19,337.50, the total value of the estate being $38,462.25. No claim was presented to the estate with respect to the assessment in question, although a notice was sent by the receiver. The final account of the executrix is silent as to the bank stock. It shows that all the money received was disbursed and contains, the usual request for the assignment of the residue “according to law and terms of the will. ’ ’ This account was allowed and the estate was closed on April 5,1933.
Plaintiff, who is a successor receiver of the bank, testified that a conservator was appointed sometime in February of 1933 and that the stock assessment was levied on October 23,1934. A dividend was paid upon the bank stock several months after the. death of Mr. Plemmeter.
The trial judge filed a written opinion in which he observed that the order assigning the residue and closing the estate was entered approximately 51 days after the bank holiday had been declared, and that, although Mrs. Hemmeter consulted a competent attorney, now deceased, who advised her not to accept the stock, and her son, Arthur, intimated a willingness to take it, that she had knowledge of the bank’s refusal to transfer the stock to Arthur, and that:
“At no time prior to the final order closing the estate and the distribution of the assets thereqf did the defendant refuse in writing, or indicate to the judge of probate in any manner whatsoever that she would refuse to take under the terms of the will, or refuse to accept any part of the estate under the terms of the will. ’ ’
The court found that the assets of the estate had been distributed to defendant, who accepted them subject to the stock assessment, and that she is the real owner of the stock in question.
Mrs. Hemmeter’s appeal is largely based upon the inequity of the court’s decree and on the proposition that she cannot be held liable in the absence of a contractual obligation on her part.
The liability of a stockholder may be enforced in a suit at law or in equity by a bank in process of liquidation or by any receiver or other officer succeeding to the legal rights of the bank. 3 Comp. Laws 1929, § 11945 (Stat. Ann. §23.52). The obligation of a stockholder is both contractual and statutory, and the statutory assessment against bank stock made after the death of a stockholder becomes the obligation of his estate. Lawrence v. DeBoer, 273 Mich. 172.
Mrs. Hemmeter could have refused to accept the stock, but there is no indication that she ever did anything to accomplish this. Mrs. Hemmeter peti tioned the probate court to distribute tbe residue of tbe estate according to the terms of tbe will, and tbe court made an order to tbat effect. Tbe stock belonged to tbe estate and was within ber control as executrix. It would be inconsistent to permit ber to seek distribution of tbe residue in ber capacity as executrix and also permit ber as an individual to prevent tbat distribution.
In Re Smith’s Estate, 282 Mich. 566, bank stock was omitted from tbe inventory of tbe estate but subsequent dealings with respect to it were beld to be inconsistent with tbe argument tbat Mrs. Smith never became its owner.
In Fors v. Thoman, 267 Mich. 148, Mrs. Thoman was beld to be an owner upon tbe death of ber bus-band where bank stock was beld by them jointly even though she paid nothing for it and claimed to have no knowledge tbat ber name bad been placed upon tbe certificate, although she bad indorsed and deposited a dividend check in their joint account. See, also, Keyser v. Hitz, 133 U. S. 138 (10 Sup. Ct. 290).
Mrs. Hemmeter was a real and beneficial owner of bank stock and should be beld liable for tbe assessment thereon. Glass v. Lock, 286 Mich. 628; Schlener v. Davis (C. C. A.), 75 Fed. (2d) 371 (99 A. L. R. 498); Forrest v. Jack, 294 U. S. 158 (55 Sup. Ct. 370, 96 A. L. R. 1457), and other cases cited in annotations in 99 A. L. R. 505.
Appellant argues that we should follow tbe rule stated in Andrew v. First Trust & Savings Bank of Ida Grove, 219 Iowa, 1244 (260 N. W. 849). Tbat case has facts quite similar to tbe instant case and there tbe court found tbat there was no liability on tbe part of tbe widow for the assessment because such liability was strictly contractual and consent to become a stockholder was not established even though the widow had received dividends and had accepted possession of the stock. Liability was imposed, however, upon the estate. The rule we have followed in Michigan is that the stockholder’s liability, although contractual, is also statutory, a situation not considered by the Iowa court. See In re Burger’s Estate, 276 Mich. 485; Fors v. Thoman, supra, and In re Smith’s Estate, supra.
Repudiation of ownership not having been effectually established, the residue of the estate having been assigned to Mrs. Hemmeter in accordance with the will, and not having declined to accept the bank stock, she must be held to be its owner and liable for the assessment.
The decree of the circuit court is affirmed, with costs to appellee.
Buteel, C. J., and Wiest, Sharpe, Potter, Chandler, and North, JJ., concurred with Btjshnell, J. | [
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Chandler, J.
Defendants were arrested in Berrien county on the 24th of November last on the charge of larceny of property of the value of more than $50. An examination was held before a magistrate, and each was held for trial in the circuit-court. Informations were filed, and on November 30, 1936, an entry was made on the journal of the circuit court for said county of Berrien to the effect that the defendants were arraigned, waived the reading of the information and pleaded guilty to the information filed against them. They were accompanied by their attorney who waived the reading of the information, withdrew their plea of not guilty and entered a plea of guilty on their behalf.
On December 4, 1936, a petition to withdraw the pleas of guilty was filed by each of the defendants for the following reasons: 1, that the defendants did not have an opportunity to confer with the attorney who entered the pleas of guilty; 2, that the defendants were not informed that they were being taken to court to enter a plea of guilty, and they did not understand that the attorney was to make this plea in their behalf. The court, upon hearing on the petition for leave to change the'pleas to not guilty, denied the request, passed sentence upon the defendants, who now prosecute review, claiming an abuse of discretion.
We have given the showing and counter-showing, as disclosed in the record, careful consideration and are of the opinion that defendants should have leave to withdraw their plea of guilty and enter a plea of not guilty and have a trial by jury if desired. Both defendants upon the hearing on the motion for leave to withdraw their plea of guilty insisted that they were innocent of the charges preferred against them and thus presented an issue of fact open to proof upon a trial.
A question identical to the one here involved was before this court very recently in the case of People v. Piechowich, 278 Mich. 550: We quote from the opinion of Justice Wiest:
“We have given the showing and counter-showing consideration and entertain the opinion that defendant should have leave to withdraw the plea of guilty. A considerate procedure of long recognition in this jurisdiction admits of withdrawal of a plea of guilty at any time before sentence, and this is especially true where in a case like this, an examination has been waived and, therefore, no informative court-recorded evidence is available. The plea admitted guilt but the affidavit in support of the denied motion averred innocence and the issue of fact should be open to proofs upon a trial.”
The sentences are vacated and the cases remanded to the circuit court with direction to permit defendants to withdraw their plea of guilty and plead not guilty and have trial.
Fead, C. J., and North, Wiest, Buteel, Btjshnell, Sharpe, and Potter, JJ., concurred. | [
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Grant, J.
In 1886, defendant Baker was the owner of -a certain tract of pine land and a saw-mill, and certain personal property used in carrying on the business of the mill and lumbering. Complainants purchased this property at an agreed price of $50,000, the terms having been consummated March 23, 1886. The verbal negotiations were carried on between complainant Anderson and Baker. Some correspondence passed between the parties, which is here given. The first letter was written by Mr. Anderson to Baker, and read as follows:
“In your estimate of pine, did you estimate anything below 10 inches diameter? Please answer at once. And, if the actual cut falls below your estimate of 13,000,000, will you guarantee to make the shortage good at $3.50 per thousand feet? If you will do so, I will take it, if satisfactory after I look the property over.”
March 15, 1886, Mr. Baker replied:
“Bear Sir: In my estimate of the pine I figured in 8-inch timber, and, if the, actual cut in boards falls below 13,000,000 feet, I will make the shortage good at $3 per M. I would like to know as soon 'as possible, as I am delaying my preparation on summer work, awaiting your decision.”
March 18, Anderson replied:
“Dear Sir: Replying to your letter of 14th, we will take the property at the price given, and on the basis of 13,000,000 feet, providing you will guarantee that amount, and make the shortage good at the rate of $3.50 per 1,000 feet. If the amount is there, you have nothing to risk. Please let us know your decision at once.”
March 23, Baker replied:
“Dear Sir: I accept your proposition, and would like to have you come here at your earliest convenience to close the trade. Let me know by return mail when you will be here.”
The transfer papers were executed April 2, 1886, but were dated March 22 previous. During the negotiations, complainants made an examination of the lands, and sent a competent timber estimator to examine the timber, and report the amount of his estimate. _ Baker executed the proper deeds of conveyance, and complainants paid $5,000 in cash, and executed to Baker a note and mortgage of $45,000, the balance of the purchase price. The note reads as follows:
“$45,000. . Big Rapids, Mich., March 22, •’86.
“On or before two years after date we jointly and severally promise to pay to the order of La Fora S. Baker forty-ñve thousand dollars at Northern National Bank, with interest at seven per cent, annually. Value received.
“Henry N. Anderson.
“R. II. G-rieein.”
There were some imperfections in the title, which Baker agreed to remove before the papers were delivered. Baker was at this time, and had been for many years, the cashier of the defendant bank, and defendant Stearns was, and had been for many years, its president. Baker was a nephew of Stearns, and they had been engaged in several business transactions. It was agreed that these papers should be placed in the hands of Mr. Stearns, to be kept by him until the imperfections of the title were removed. He gave a receipt as- follows:
“Big Rapids, Mich., April 2, 1886.
“Received of H. N. Anderson and R. H. Griffin and L. S. Baker warranty deed from L. S. Baker and W. F. to said Anderson and Griffin, and note and mortgage from Anderson and Griffin to Baker; said Baker to produce an abstract of title showing clear title to said lands, and assign insurance on mill to Anderson and Griffin, and then note and mortgage to go to Baker, and deed to Anderson and Griffin. G. F. Stearns, Pt.”
These papers - were received by Stearns as president of the bank, and deposited in the vault. Complainants refused to purchase unless Baker would give a written guaranty as to the amount of timber. This guaranty was executed at the same time, bears the same date as the other papers, and reads as follows:
“In consideration of Henry N. Anderson and Russell H. Griffin having purchased of me certain lands described in a deed made by me bearing this date, I hereby guarantee that the lands described in said deed, together with the logs now in Blue lake, w'ill cut out 13,000,000 feet of pine boards or lumber, board measure, if properly handled and manufactured; and I hereby agree that if the said timber and logs are cut and manufactured in a proper manner, and not allowed to go to waste, that I will refund to them the sum of $3.50 per 1,000 feet for the number of feet it falls short of 13,000,000 feet. This agreement is only good for two years and six months from this date.”
This guaranty was inclosed with the papers deposited with Mr. Stearns. Before the papers were finally passed, the mill was destroyed by fire, and the insurance was collected by Baker, and, by the understanding of all parties, was indorsed upon the note. The complainants built a new mill, and proceeded to cut and manufacture the timber.
On February 12, 1887, Baker assigned this note and mortgage to Palmer & Brown, executors of the last will of John F. Brown, deceased, as collateral security for a loan of $20,000 which they had made to Baker upon a note which was indorsed by Mr. Stearns. Complainants made three payments to Palmer & Brown while the note was so held by them, the last payment, of $6,000, being made January 6, 1888. Palmer & Brown had no knowledge of the written guaranty given by Baker, and are conceded to be bona fide holders and pledgees of the note and mortgage.
Defendant Baker was indebted to the defendant bank as maker and indorser of commercial paper to the amount of $30,000. Some of this paper was made by Baker as principal, and indorsed by the Baker Lumber Company, and the balance was made by the Baker Lumber Company, and indorsed by Baker. Baker was the principal stockholder, and the controller and manager, of the lumber company. The financial business of this company was done at the defendant bank. August 3, 1887, Baker assigned the note and mortgage given by complainants to defendant Stearns in trust for the bank, and at the same time wrote to Palmer & Brown, directing them that they should also assign them to Stearns in like manner when the $20,000 was paid. January 23, 1888, there was still due from Baker to Palmer & Brown the sum of $4,507.26. This sum was paid by the bank, through Mr. Stearns, to Palmer & Brown, who, in accordance with the instructions previously received from Baker, assigned the mortgage to Stearns as trustee, and indorsed the note over to him without recourse.
Complainants filed the bill in this cause April 9, 1888, claiming that they had cut and removed the timber as provided for in the guaranty; that there was a shortage of over 6,000,000 feet; that Baker is insolvent; that the defendant bank purchased with knowledge of the guaranty and the arrangement between complainants and Baker; that they have overpaid the amount actually due, — and pray that the note may be declared paid, and the defendant hank may be perpetually enjoined from prosecuting a suit to recover the amount. The decree was for the complainants. The further statement of facts will be found in connection with the points raised.
Palmer & Brown received this note and mortgage in good faith, and without any knowledge that it was burdened with any infirmity -as between complainants and Baker, or any information to put them upon inquiry. They were therefore Iona fide holders, and their interest in it is entitled to protection, both in their own hands, and in the hands of their assignees or indorsees. A subsequent holder, though he had knowledge of such infirmity, took the same title, and succeeded to the same rights, which his indorser had. The bona fide holding, when once attached, continues in the hands of subsequent holders. Shaw v. Clark, 49 Mich. 384; Kost v. Bender, 25 Id. 515; Wood v. Starling, 48 Id. 592. This is the well-established rule, and needs no further citation of authorities. The defendant bank had the right to protect its interests by payment to Palmer & Brown of the amount due them, even if it had knowledge of the guaranty of Baker, and of the defense which complainants might make as against him ox* his assignees with notice. This rule is founded in good sense, and we find no authority to the contrary. The rights between complainants and Baker were not then determined,' and the extexxt of Baker’s liabilities under the guaranty was not knpwn. If, upoxx settlement, either amicably or by sxiit, any amount was found due to Baker, the bank would be entitled to it. It follows that the decree is erroneous, in that it did not provide for the repayment by complainants to it of the amount paid by the bank to Palmer & Brown.
But this rule, in the present case, can be carried no further than to protect the amount thus paid. The Iona fide character of the holding of Palmer & Brown attached only to the extent of their holding, except in the hands of one who should purchase under a foreclosure of the pledge. The rule is correctly stated by the learned counsel for the defendants that—
• “A holder-who derives his title to a bill through a Iona fide holder for value, without notice, has all the rights of such Iona fide holder against the acceptor and all prior parties, although he himself may have given no value, and may be affected with notice.”
The numerous authorities cited sustain the proposition. But the complete answer to the attempt to apply this rule to the present case lies in the fact that Palmer & Brown did not own the absolute title to the note, and that the bank knew this, and obtained an assignment from Baker while it was in the hands of Palmer & Brown as pledgees. The title of the bank is no other or different than it would have been if Baker himself had paid Palmer & Brown; and then made an assignment to the bank. A pledgor does not part with his title, and the only method in which Palmer & Brown could have deprived Baker of his title to the note and mortgage would have been by a proper foreclosure of their lien upon them.
It is not contended that complainants could not defend against this note and mortgage in the hands of Baker to -the extent of the deficiency at $3.50 per thousand. This is true, whether the defense be made upon the ground of fraudulent representations or in reliance upon the guaranty, ■or whether the representations were made by Baker in good ■or bad faith. Such defense is not in the nature of a set-off, but of recoupment. Baker’s representations as to the amount of timber were untrue. Complainants had the right to rely upon them, whether they were written or verbal, or whether contained in a written or a verbal guaranty. Th.ey did rely upon them, and are entitled to recoup their damages as against Baker' and his assignees affected with notice. Unfortunately for the complainants, they did not include the guaranty in the mortgage or note, but in a separate' paper. They therefore placed in the hands of Baker the power to ’ transfer the note and mortgage to a bona fide purchaser for value, and thus cut of all right of defense. That there was a large shortage in this timber was conclusively established, and it seems impossible to believe* that Baker was honest in making these representations. The next important question, therefore, to determine, is whether the bank was a bona fide holder of the note and mortgage. If the bank had notice of the terms of the sale by Baker to complainants, it is not a bona fide holder, and in its hands complainants have the same defense that they would have as against Baker. This rule is too well established to require the citation of authorities.
The testimony is conflicting. It was taken in open court, where the circuit judge saw the witnesses, and had peculiar opportunities to determine the credibility to be given to them. In 1887, complainants became convinced that there was a large shortage in the timber, and on November 23, 1887, they gave the guaranty to their attorney, John Lewis, directing him to go to Big Bapids and investigate the matter. He went to the office of Palmer & Brown, where he found Mr. Palmer, and showed him the guaranty. Mr. Palmer telephoned to Mr. Stearns, who came to his office. Mr. Lewis told him the purpose of his visit, and testifies that it is his recollection that he showed him the guaranty. Mr. Stearns denies this, but admits that he then learned that there was a misunderstanding about the timber. The note and mortgage were then in the hands of Palmer & Brown. At this time the relations between Baker and the bank, as to his indebtedness to it, had not been changed. The bank still retained all of Baker’s notes. On January 24, upon receipt of the note and mortgage from Palmer & Brown, entries were made upon the books of the bank crediting the Baker Lumber Company with the payment of one note of $7,500, indorsed by Baker, and Baker with two notes of $5,000 each, indorsed by the Baker Lumber Company, none of which notes were then due. The balance was credited to the Baker Lumber Com-pany. Complainant Griffin and another witness testify that in a subsequent conversation with Stearns he admitted that he first knew of this guaranty at the time of the conversation with Mr. Lewis, above referred to. Soon after the sale to complainants, Baker’s connection with the bank was severed, and he removed to Chicago. Correspondence passed between them in regard to the transfer of this .note and mortgage to Stearns in trust for the bank, which correspondence was destroyed by the deliberate act of Stearns and Baker. Stearns wrote to Baker to destroy his letters. The excuse given is that the letters referred to private matters aside from this transaction. The intimate relations existing between them cannot be overlooked, from which it may be fairly presumed that Mr. Stearns had knowledge of Mr. Baker’s affairs. After a careful examination of the record, and in view of the better opportunity of the learned circuit judge to arrive at the truth of the matter, we do not feel impelled to set aside his conclusion, in the face of so palpable a conflict of evidence, and so much in the conduct of Baker and Stearns to weaken their evidence.
It is insisted that complainants did not properly handle and manufacture this timber, and that there is still a large amount upon the land. The greater part of the evidence in this record of 3,000 pages relates to this subject. Many witnesses who had examined the land testified in behalf of the respective parties. _ The lands are situated on sections. 25 and 36, township 16 N., range 14 W., and sections 8,. 19, 22, 28, 30, 32, and 34, township 16 N., range 13 W. It is conclusively established that the logs cut were properly manufactured into lumber, and the amount thus manufactured is shown ■ definitely. It is also established by the complainants’ evidence, and by some of the defendants’ witnesses, that the timber was well cut on the ,E. i of the N. E. and the S. £ of the S. E. of section 36, and the S. i of section 30. As to the manner of ■cutting upon the other lands there is a irreconcilable conflict of evidence. To review it would be unprofitable to any but the parties interested directly. Experienced woodsmen were sent by both parties over the lands, and they have given the results of their examinations. Some did not examine the trees with .a view to determining their merchantable character. A large portion of the trees was down timber, caused by windfalls, and much of it was down when the sale was made. A careful examination by cutting and sawing into it was necessary to determine its character. The most of the land had been cut over before the sale, some once, and a part twice, and the largest trees taken. A considerable part of the land was swamp, with large pine trees scattered through it. The evidence on the part of the complainants is quite convincing that it was impracticable to remove much of this timber in the swamps, and that the cost of removal would exceed its value. Some of this timber was left upon the land, but it is impossible to determine from the record approximately how much, since the witnesses on neither side appear to have kept this left in the swamp separate from that left on the high land. It was certainly to the interest of the complainants to cut all the merchantable timber practicable. There is no motive apparent for their leaving it bn the land. They learned in 1887 that Baker was pecuniarily irresponsible, and that their note and mortgage were in the hands of ..third parties, with the claim that they were Iona fide holders. Their interest, therefore, lay in realizing all they could from the timber. We think it shown, by a fair preponderance of the evidence, that they had. handled and manufactured the timber in accordance with the terms of the guaranty. They were not required to remove any timber the cost of which would exceed its value, nor to remove every stick of merchantable timber from the high lands, in order to establish a right of action against Baker. A substantial compliance is all that was required.
The next question to be determined is, how much was the deficiency? The mill tally of the lumber manufactured and sold amounted to 6,253,785 feet; there remained at the mill 84,300, — making a total of 6,338,085 feet of timber actually taken from the land.
The original purchase by Baker in October, 1884,. the amount he then purchased, and the amount sold by him before the sale to complainants, have an important bearing upon the amount there was upon the land, as well as upon the fraud perpetrated upon the complainants. Baker purchased this land from one Antoine E. Cartier. The purchase included the saw-mill, buildings, lumber camps, and outfits, 19 oxen, 7 pairs of horses, 1 span of mules, 6,500,-000 feet of lumber at the mill, and 1,500,000 feet of saw-logs in the lake, for which he paid the. sum of $80,000. He testified that Cartier represented to him that there were 11,000,000 feet of standing pine without section 8. He manufactured the logs then in the lake into lumber, except about 200,000 feet. He thus had for sale and sold from his purchase 7,800,000 feet. He testified that he could not tell how much he received for it, but admitted that he received at least $10 per thousand. He therefore received at least $78,000 for the lumber alone. In addition to this he sold the oxen, the horses, the mules, 'and some of the other personal property, for which he realized about $5,000. If his story be true, he therefore purchased 21,000,000 feet of pine, including the lumber and logs on hand, the sawmill and outfit, and all the other personal property, for $80,000, from which) in a short time, he realized more than that amount, and still had some of the personal property left, and the entire tract of pine. The story is improbable that Cartier represented, or that he (Baker) believed, that there were 13,000;000 feet on the land. Cartier was an experienced lumberman, and must be credited with the capacity to know the value of his property, and to insist upon a reasonable price. His story is much more consistent with the truth than is that of Baker. He testified that he made an estimate of the timber in,July, 1884, and that his estimate was 6,600,000 feet; that before he sold to Baker he had taken off 1,200,000; and that he told Baker that there were about 5,000,000 feet left.
Complainants, before purchasing, sent one Jacob Lowe, who had had 25 years’ experience in manufacturing and estimating timber, to examine and report upon these lands. He made an examination by 40’s, and reported that there were a little over 5,400,000 feet. Anderson informed Mr. Baker that he did not think there was any such amount upon the land as 13,000,000 feet; that it was small timber, and such as he had not been used to. Baker replied that he knew more about the land, that he had been operating in that country, and that it would cut about 13,000,000 feet. Baker had also removed some of the timber. His witness Raub testified that he had cut and removed from one piece over 290,000 feet.
Baker, in his representation to complainants that there were 13,000,000 feet, claims to have relied upon two estimates, made by Raub and one Hemphill. Raub’s estimate was 10,896,000 feet; Hemphill’s, 10,870,000. To these estimates Baker added about 20 per cent., claiming that timber estimated by Doyle’s rule will overrun from 20 to 30 per cent.; and the evidence fairly supports this claim. But RauVs testimony showed that neither in his original estimate nor in his estimate of the amount left upon the land by complainants did he make any attempt to arrive at the amount of merchantable timber. His testimony, therefore, is of but little value, especially in view of the fact that the lands had been before cut over, and, presumably, the best timber taken. Hemphill was not a witness, and there is no evidence as to the manner in which he made his examination. We regard these estimates, therefore, as of no value in determining the amount of merchantable timber, or in forming an honest basis for the representations made by Baker.
Neither the bank nor Baker can be charged with the amount of pine in the swamps which it was impossible to remove. Baker made no representations in this regard, and complainants assumed all risks of the cost of removal. If, including the amouñt which complainants must yet pay, as above stated, they had not paid for the full amount of all the timber there was upon the land, it would be necessary to determine the amount there was in the swamps, and probably to remand the case for further proofs upon this point. But we think that they have overpaid. The amount due when the note and mortgage were received by the bank was $23,089.12. Deducting $4,507.26, the amount paid by the bank to Palmer & Brown, there is left the sum of $18,581.86. We do not think that the shortage can be fairly estimated at less than 5,500,000 feet, which, at $3.50 per thousand, amounts to $19,250. This leaves the complainants out over 1,000,000 feet over the amount they have actually cut and manufactured.
Counsel for defendant, concede that Mr. Stearns was acting for the bank, and that notice to him was notice to the bank; but they argue that Stearns could not be chargeable with bad faith in purchasing the paper, because—
(1). He was acting in pursuance of a previous agreement, made before any question had arisen as to whether there would be a shortage.
(2). By the terms of the guaranty, Baker agreed to refund, — “that is, to pay back to them at $3.50 per thousand.”
The previous agreement referred to was simply a parol promise on the part of Baker, made several months previous to the assignment. This promise was of no binding force, and was of no avail to the bank until the execution of the assignment. Counsel cite, among other authorities, Howry v. Eppinger, 34 Mich. 34, and Miller v. Finley, 26 Id. 254. They quote the language in Howry v. Eppinger, as follows:
“It is not the duty of parties about to purchase negotiable paper to make inquiries as to possible defenses, unless, either from something appearing upon the face of the paper, or from facts communicated to them at the time, they could not honestly purchase without making further inquiry; in other words, that they acted in bad faith.”
From this statement of the law, it appears that the facts communicated at the time of the purchase have the same effect as facts appearing upon the face of the paper. This is undoubtedly the rule, as established by the authorities, which will be found collated in the note to Miller v. Finley. Had the terms of this guaranty been stated in the note, or in the mortgage, which was delivered to Stearns simultaneously with the note, it must be conceded that the bank would have taken it subject to the rebate for shortage. The same result follows if the bank had actual notice of the guaranty.
The transactioh is not susceptible of the construction that complainants agreed to pay the note absolutely, and then look to the personal responsibility of Baker for the deficiency, and a purchaser had no right to act upon such a construction.
The decree must be modified to accord with this decis ion. The defendant bank will recover one-half of the costs of this Court.
McGrath, 0. J., Long and Hooker, JJ., concurred. Montgomery, J., did not sit. | [
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Montgomery, J.
The common council of the city of Detroit vacated that portion of Fourth street in said city extending from Congress street to Fort street. The defendant thereupon occupied the vacated • portion of the street for depot purposes, which of course resulted in closing the street to public travel. The action was had under authority of Act No. 94, Laws of 1891, amendatory to the “Union Depot Act,” so called. The amendatory section of 1891 provides that—
“ Any corporation organized under this act shall have power, with the consent of the common council of any city, or the village board of any village, in which the station and depot grounds of such company are located, to occupy and close any highway, street, or alley within the limits of its station and depot grounds, but such company shall pay to the parties entitled to the same any and all damages that may accrue to them in consequence of the closing of any such highway, street, or alley; and such damages may be recovered in an action on the case in any court of competent jurisdiction.”
The plaintiff is the owner of a brick block fronting Fourth street, and extending from Larned street to Congress. He brings this suit to recover damages resulting to his property from the closing up of Fourth street between Congress and Fort. The portion of the street beyond Congress is made less accessible from plaintiff's property, it being made necessary to make a detour to Third street instead of passing directly through what was formerly- a part of Fourth. It cannot be doubted that there has been some resulting disadvantage occasioned by the closing of that portion of the street. The question presented is, is the resulting inconvenience damnum, absque injuria, or should the damages actually resulting to the property be held recoverable? It is contended, on the one hand, that, such inconvenience as the plaintiff suffers is of like character to that which any member of the community submits to, differing only in degree. On the other hand, it is broadly claimed that under the statute in question any person-who is actually damaged by the closing of the street is entitled to recover his damages, and the fact that it is difficult to draw the line showing when depreciation of property will end does not militate against the right, or present any greater obstacle than is often presented in other classes of cases, and that the question can safely be left to the good sense of the court and the jury.
Under the right of eminent domain, where there is no other limitation of the power than such as is contained in our Constitution, which provides that private property shall not be taken for public use without just compensation, it is conceded that it is competent for the Legislature to provide for a public improvement which may work an incidental damage to property without providing compensation for property not actually taken. See City of Pontiac v. Carter, 32 Mich. 164; Hinchman v. City of Detroit, 9 Id. 103; People v. Board of Supervisors, 20 Id. 95. And the distinct question of whether the discontinuance of a public street, or its appropriation to other purposes than that of a highway, constitutes a taking of the property of the users generally (other than abutting owners) has been distinctly ruled in the negative by many of the American courts. See McGee’s Appeal, 114 Penn. St. 477; Smith v. City of Boston, 7 Cush. 254; Paul v. Carver, 24 Penn. St. 207; Fearing v. Irwin, 55 N. Y. 486; Hatch v Railroad Co., 25 Vt. 49; Dill. Mun. Corp. (4th ed.) § 666. But it is contended that the statute in question is more nearly analogous to those constitutional provisions, which exist in some of the states, that property shall not be taken or damaged for public use without just compensation, and it is urged that where these provisions exist, in some of the states at least, a doctrine has been held which sustains the plaintiff's contention here. Plaintiff's counsel also relies upon decisions of the English courts as sustaining his contention. The English statute provides for compensation to the owner of lands injuriously affected, and it has been held that this entitled one to compensation whose land was permanently diminished in value by an authorized obstruction to a street, although his lot was .at a distance from the obstruction. M’Carthy v. Board, L. R. 7 C. P. 508, L. R. 7 H. L. 243; Railway Co. v. Walker’s Trustees, 7 App. Cas. 299. Mr. Sedgwick, in the eighth edition of his work on Damages (section 1093), comments upon these decisions as follows:
“The disposition made by the English courts of thb question of redress for interference with access, from private property to streets and highways (and the case of water highways, etc., is the same) is particularly deserving of attention. Under the rule already stated, if the owner has suffered no 'injury to his right of ownership he would have had no right of action in respect of his interest in lands if there had been no statutory powers; consequently he cannot maintain a claim to compensation under the statute. The claim, therefore, seems to be limited and defined by the right of access. If the access is taken away, or rendered less convenient, and the value of the lands depreciated, even though they do not immediately abut on the public highway or river, the plaintiff can recover; but if the obstruction is only temporary, or an inconvenience, diverting the public and causing a loss in custom or trade, the damage, as it would not have given the owner any right of action if there had not been any statutory powers,, is not recoverable."
The plaintiff also cites cases in which the construction of a constitutional provision entitling the party to compensation where property is taken or damaged is claimed to be sufficiently broad to include the present case. The cases cited are: Rigney v. City of Chicago, 102 Ill. 64; City of Chicago v. Taylor, 125 U. S. 161; Gottschalk v. Railroad Co., 14 Neb. 550; Railway Co. v. Hazels, 26 Id. 364; Railroad Co. v. Janecek, 30 Id. 276; Harvey v. Railroad Co., 90 Ga. 66; City of Omaha v. Kramer, 25 Neb. 489; Montgomery v. Townsend, 80 Ala. 489; Railroad Co. v. Williamson, 45 Ark. 429; Moore v. City of Atlanta, 70 Ga. 611; Town of Longmont v. Parker, 14 Colo. 386.
In the case of Town of Longmont v. Parker it was held that, under a constitution providing compensation for lands taken or damaged, a land-owner whose means of ingress and egress are interfered with by the construction of a ditch on the highway abutting his land is entitled to recover as damages depreciation of the property because of such ditch, — Eichmond, C., dissenting.
n In Moore v. City of Atlanta it was held that, under a similar constitution, damages resulting to the abutting owner from a change in the grade of a street could be recovered. The same thing was held in Montgomery v. Townsend.
In Railroad Co. v. Williamson it was held that the owner of premises abutting upon a street may recover from a railroad company damages resulting to his premises from the construction of the roadbed in its right of way along the street in such a manner as to obstruct access to the premises, though the owner has no interest in the fee.
In the case of City of Omaha v. Kramer it was held -that the construction of a viaduct on a street upon which the plaintiff's land abutted was such damage as could be .recovered for, the court stating that, under the constitu tional provision providing that property taken or damaged shall be ' paid for, the words “ or damaged ” include all actual damages resulting from the exercise of the right of eminent domain which diminish the market value of private property. The court repudiate the English rule, and the ■ rule adopted in Pennsylvania, that, under such a provision, no damage can be recovered except such as the plaintiff would be entitled to sue for and recover at the common law if the act had not been authorized by statute. See, as to the English rule, 3 Sedg. Dam. § 1124; the Pennsylvania rule, Railroad Co. v. Marchant, 119 Penn St. 541. In Rigney v. City of Chicago the city constructed a viaduct or bridge along Halsted and across Kinzie streets at their intersection, which was 220 feet west of plaintiff's premises, fronting on Kinzie street. The viaduct in question cut off all communication with Halsted street by way of Kinzie street, except by means of a pair of stairs at the intersection of the streets. Halsted street is one of the main thoroughfares of Chicago, on which is operated a line of horse railway. The evidence showed that the value of plaintiff's lot was largely depreciated. The question is' considered at great length, and the majority of the court reach the conclusion that the plaintiff, under the facts stated, is entitled to recover compensation for the injury to his property; the constitution providing that private property shall not be taken or damaged for public use without just compensation. Three members of the court dissented from this opinion, — Justices Scott, Craig, and Sheldon.
The supreme court of the United States, in City of Chicago v. Taylor, followed the decision of the state court, and affirmed a recovery by a plaintiff whose property was damaged by the construction of a viaduct on the street abutting the plaintiff's premises.
Limitations have been placed .upon the rule by the su preme court of Illinois. In City of Chicago v. Building Ass’n, 102 Ill. 379, the complainant sought to enjoin the closing of a street 3£ blocks from its premises, which act it claimed worked a peculiar injury to it. The court say:
“It has been supposed in argument that our constitution, in providing that ‘ property shall not be damaged for public use without due compensation,’ necessarily modifies the doctrine of these cases [referring to Massachusetts, Pennsylvania, Iowa, and other cases cited] to some extent. So far as affects the present question, we are of opinion this supposition is not well founded.”
See, also, the case of City of East St. Louis v. O’Flynn, 119 Ill. 200.
The counsel for the jdaintiff argues that these cases were wrongly decided, as the court attempt to determine as a matter of law in each case whether damages have resulted. This only illustrates the difficulty in drawing any precise line, if it he admitted that one other than the abutting owner is entitled to recover damages for the obstruction or discontinuance of a public street. Indeed, it is not altogether clear that the line intended to be drawn by the supreme court of Illinois is not the one indicated, namely, between an abutting owner affected by the closing of a street adjacent to his premises and one whose property is incidentally affected by the closing of a street in another block. In City of East St. Louis v. O’Flynn, 119 Ill. 204, it is said:
“The only question that can be considered in this court is purely a question of law. It is, can defendant, as a matter of law, be held liable to the plaintiff for damages resulting from the vacation of streets and alleys between Front and Fourth streets, the vacation being in another block in the city than that in which plaintiff’s property is situated ?”
The court then considered the force and effect both of the constitutional provision and the statute of the state as bearing upon the subject; the constitutional provision being that private property shall not be taken or damaged for public use without just compensation, and the statute providing that when property is damaged by the vacation or closing of any street or alley the same shall be ascertained and paid as provided by law. The court say:
“Here plaintiffs lot is not adjacent to the streets or alleys vacated. It is in another block. The access to and egress from his lot are not affected by the vacating ordinance passed by the city. The street in front and the alley in the rear of his property remain open as before, affording the same access to and egress from it. The inconvenience that would be occasioned to plaintiff in going from the street in front of his house to a particular part of the city, on account of vacating and closing up certain streets and alleys in another block, is the * same kind ’ of damage that would be sustained by all other persons in the city that might have occasion to go that way; and, although the inconvenience he may suffer may be greater in degree than to any other person, that fact would not give him a right of action.”
The court held that he had no right of action.
In City of Chicago v. Building Ass’n it was held that the fact that property-owners upon a street have been specially assessed as benefited by the opening of a street some blocks off, and have paid assessments, does not give them any special property in said street, any more than any other tax-payer, and gives them no equitable ground to enjoin the vacation of such part of the street.
The same view was taken in Kean v. City of Elizabeth, 54 N. J. Law, 462. It was said:
“It is assumed by counsel for prosecutrix that, because the prosecutrix was assessed for a benefit resulting from the opening of this street peculiar to herself, she got a vested right in the continued existence of the street, of which she could not be stripped without compensation. But this, I think, is more, plausible than substantial. While the right she got may have been of peculiar benefit to her property, yet it was a right which she shared with the public. The privilege of using the street was shared by each member of the community. It may not have been of the same value to each member of the community, but the right to use the street was in each citizen the same. It was exclusively a public right, put under the control of the representatives of the public. It was subject to alteration or abolition when, in the judgment of those to whom the public interests were confided, those interests demanded such action.”
It was held in that case that a person owning lands upon a part of a street not vacated is not deprived of any vested rights in property for which he is entitled to compensation by reason of such vacation.
A distinction may well be held to exist between the injury which results to an abutting owner, or another so situated that the means of ingress and egress to and from his premises are cut off by a discontinuance of a street, and one owning land upon another street, or on the same street at a distance from the part of the highway discontinued.
The subject has been considered by the supreme court of Massachusetts many times. In Stanwoood v. City of Malden, 157 Mass. 17, damages were sought for a discontinuance of a part of Summer street in Malden, which ran into Florence street obliquely just opposite the petitioner’s land. It was said it is possible, if not probable, that the money value of petitioner’s property was diminished by diverting the stream of travel which formerly flowed towards it over Summer street; and it was contended on the authority of the English cases, and for the further reason that the laying out of the discontinued piece of street would have been a benefit for which the petitioner might have been assessed, that a recovery should be had for its discontinuance. But the supreme court, following Smith v. City of Boston, 7 Cush. 254, denied the right.
In Smith v. City of Boston it appeared that the plaintiff owned several lots in the city on or near Market street, and offered to prove that the value of each had been lessened, and the rent of one or more of them diminished, butdt appeared that no one of the lots bounded on that part of the street which had been discontinued. Chief Justice Shaw, in conveying the opinion of the court, said:
“ There is obviously a difficulty in laying down a general rule applicable to all cases. One limit, however, must be observed, which is that the damage for which a recompense is sought must be the direct and immediate consequence of the act complained of, and that remote and contingent damages are not recoverable. The inconvenience of the petitioner is experienced by him in common with all the rest of the members of the community. He may feel it more, in consequence of the proximity of his lots and. buildings. Still it is a damage of like kind, and not in its nature peculiar or specific. * * * We do not mean to be understood as laying down a universal rule that in no case can a man have damages for the discontinuance of a highway unless his land bounds upon it, although, as applicable to city streets, intersecting each other at short distances, it is an equitable rule. A man may have a farm, store, mill, or wharf, not bounding on a street, but communicating with it by a private way, so situated that he has no access to his property but by the public way. If this is discontinued, he must lose the benefit of his estate or open a way at his own expense, which might be a direct and tangible ' damage consequent upon the discontinuance of the public way, and we are not prepared to say that he would not have a claim for damages under the statute.”
In McGee’s Appeal, 114 Penn. St. 477, the court consider the effect of a constitutional provision which reads as follows:
“Municipal and other corporations and individuals, invested with the privilege of taking private property for public use, shall make just compensation for property taken, injured, or destroyed by the construction or en-v largement of their works,” etc.
The court held that this gave no right of action to the owner of a lot whose property was incidentally injured by the vacation of a public street.
In the case of Coster v. Mayor, 43 N. Y. 399, the city was authorized by act of the legislature to cause the removal of a bridge which was a portion of a street leading to plaintiffs’ lot, which act provided that the city should pay all damages to property caused by the improvement, and should enter into a contract and give a bond to the state to do so. The language of the act was substantially the same as that under consideration here. The court say:
“ ‘Damage’ and ‘claim’are words having a well-defined meaning in statutes and legal instruments. And for so much as they rightfully convey, for so much is the city bound. ‘What is a claim? It is, in just judicial sense, a demand of some matter, as of right, made by one person of another, to do or forbear to do some act or thing as a matter of duty.’ The plaintiffs may claim no more of the city than the law will give them as á matter of right. The city need pay as much as the state should pay as matter of duty."
Considering the question of whether the plaintiffs had such a right which had been encroached upon, the court say:
“The plaintiffs further claim that the best approach to their property having been by the Hamilton-street bridge, and that having been entirely removed by the agents of the state, a damage has resulted to their property for which the city is liable. No part of the bridge was on the property of the plaintiffs. They had no interest or right in it as property. There is left to the plaintiffs an approach to their property by the State-street bridge, though less near, less easy, less commodious. The damage to the plaintiffs’ property from this cause is entirely indirect and remote. It is not claimed to the contrary, and we shall assume that the state had right, by virtue of .this act or from other source, to do this work, and in doing it to remove this bridge. The bridge, so far as the plaintiffs were interested in it, was but a part of a public street or highway. Over streets and highways the legislature has control, and may, when no private interests are involved ot invaded, close them and altogether relinquish their use by the public. And if in the exercise of this right a street be discontinued, and the value of lands abutting on other parts of the street and on neighboring streets is lessened, it is not.such an injury to the owner as to entitle him to damages.”
In Glasgow v. St. Louis, 107 Mo. 204, the plaintiffs sought to enjoin the vacation of Papin street, from Twelfth street to Thirteenth street, one block east of property •owned by plaintiffs, lying between Thirteenth and Fourteenth streets. The situation of the property was not materially different from the property of plaintiff in the present case. The court say:
“There is no doubt but a property-owner has an easement in a street upon which his property abuts which is special to him and should be protected, but here the plaintiffs own no property fronting or abutting on the part of the street which was vacated. Their property is surrounded by streets not touched or affected by the vacating ordinance. They will be obliged to go a little further to reach Twelfth street, but that is an inconvenience different in degree only from that suffered by all other persons, and it furnishes no ground whatever for injunctive relief.
“Nor are the plaintiffs entitled to any relief by reason of the clause in the present constitution which declares 'that private property shall not be taken or damaged for public use without just compensation/ To entitle them to relief because their property will be damaged, though not taken, they must show a special injury. Sere there is no physical interference with their property, iior is any right or easement connected therewith or annexed thereto affected. They will, therefore, suffer no injury which is special or peculiar to them. The inconvenience, if any in reality there is, is the same as that cast upon other persons. For these reasons the constitutional amendment furnishes them no ground for complaint.”
We think the weight of authority in this country fully sustains the contention of defendant that such an injury as that resulting to the plaintiff here is one which he suffers in common with the general public, and damnum absque injuria.
But it is contended by the plaintiff that, unless the amendatory act is so construed as to give the plaintiff a right of action in the -present case, the provision that damages may bé recovered is rendered wholly nugatory, as it is urged that only such streets as are within the depot grounds are permitted to be vacated, and that there is no abutting ■ owner who could be injuriously affected by the closing of • such streets. And, as applied to the present case, such is possibly the result of this construction. But the act is general, and applies to all depot companies. The street which passes through depot grounds may be a cul cle sac, and in such case the closing of a street might leave the owner of the property without any means of egress whatever. In such case, undoubtedly, his right to damages would be as clear for the interruption of his means of ingress and egress as would be that of the abutting owner for a similar interference with a like right. See opinion of Shaw, C. J., in Smith v. City of Boston, supra; Pearsall v. Board of Supervisors, 71 Mich. 438; 74 Id. 558; Goss v. Highway Commissioner, 63 Id. 608; Phillips v. Highway Commissioner, 35 Id. 15.
The circuit judge directed a verdict for the defendant on the ground that the plaintiff was not entitled to recover any damages for the closing of the street in question. We think his conclusion was right, and the judgment will be affirmed, with costs.
The other Justices concurred. | [
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Hooker, J.
Lindsay, the appellant, and Mrs. Richardson were executors and trustees under the will of D. M. Richardson,' deceased. This will bequeathed one-third of the estate to the widow, and, after several other bequests, gave the remainder to trustees, to manage for her son,— one-third to be delivered at his majority, one-half of the remainder when he should arrive at the age of 25 years, and the residue when he should arrive at the age of 30 years. The estate was large, consisting principally of about 5,000 shares of stock of the Diamond Match Company, worth about $150 a share. This stock stood in the name of C. H. Buhl, who claimed to hold it as security for $27,000 or more, and had been the subject of litigation. Mrs. Richardson finally adjusted the matter, and at a meeting attended by Mr. Buhl, herself, appellant, and others, the amount of $27,000, provided by her, was paid Mr. Buhl, who signed the blank assignments on the back of the certificates and delivered them to her, and she took them away without objection from appellant.
Appellant and Mrs. Richardson had not agreed in all things pertaining to the management of the estate, and, while there is no evidence of an open rupture, she had at one time asked him to resign, and he had taken the matter under consideration. Immediately after the stock transaction above narrated, ¿Lindsay wrote the match company, informing it of the assignments in blank, and requesting it to fill blanks, and issue stock to Mrs. Richardson and himself, as trustees. The letter contained no implication of misunderstanding between himself and his cotrustee, but stated that he wrote by way of precaution, lest certificates be issued to those not entitled to them. Soon after, a letter was received by the match company, inclosing the certificates, and asking that new ones be issued to Mrs. E. Jennie H. Richardson. The certificates were issued in the names of both, with which Mrs. Richardson appears to have been satisfied. Appellant subsequently filed his account in the probate court for compensation as executor, in which lie included an item of $5,000 for preventing this stock from being issued to Mrs. Richardson; claiming that the writing of this letter, which is all that he bases the right to such sum upon, was an extraordinary service, worth $5,000. The probate court disallowed the' claim, holding that it was a part of his ordinary duty, as executor, to see that the property of the estate was properly transferred to the executors, which decision was followed in the circuit court.
There is nothing in the case showing that Mrs. Richardson intended to misappropriate this property, and the appellant was careful not to say that he thought she had any such design. If Mrs. Richardson was not entitled to have this stock issued in her own name as security for her advance, — a question that we need not decide, — it was the duty of these executors to have it issued to themselves, as executors. Had appellant asked it, the assignments would probably have been so made out. As it was, he merely wrote a letter made necessary by reason of the character of the assignments. The assignments being in blank, some one had to direct the match company how new certificates should be issued, and one "executor was under no more obligation to do so than the other.
We think the decision of the circuit court was right, and it will be affirmed, with costs.
The other Justices concurred.
See Richardson v. Buhl, 77 Mich. 632. | [
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North, J.
Alice Hodges was the owner of an 80-acre farm in Lapeer county. This property was sold to the State for delinquent taxes and on the 10th day of August, 1932, plaintiff herein, the North Branch Oil & Gas Company, having paid the re quired tax moneys to the State, received from the auditor general of the State a tax deed of the premises. Notice to redeem was served, proof of such service filed, and the statutory period for redemption expired. Thereafter, plaintiff filed a petition in the circuit court of Lapeer county in chancery for a writ of assistance. Hearing was had before Judge Paul Y. Gadola, presiding in the circuit court in Lapeer county, and the writ of assistance was issued. The officer's return to the writ shows that he executed it by placing plaintiff in possession. Counsel seem to agree that there was execution of the writ on July 5, 1933, notwithstanding, as printed in the record, service is shown to have been on May 5,1933. Substantially two years later (June 29, 1935) the petition now before the court was filed by Alice Hodges, and in consequence of facts and circumstances set forth she sought relief which is noted in detail hereinafter. Answer to the petition was filed by the North Branch Oil & Gas Company, a Michigan corporation. After hearing before Honorable Louis C. Cramton, decree was entered in which the order of Judge Gadola, dated April 10, 1933, granting the writ of assistance as hereinbefore noted, and the writ of assistance itself, were held to be null and void and were set aside. The North Branch Oil & Gas Company has appealed.
Numerous reasons are assigned in support of -the appeal, but the fundamental question presented is this: Did Judge Cramton have a right to hear and determine the questions presented by Alice Hodges in her petition filed on the 29th of June, 1935? Appellant considers this petition as an attempt to secure a rehearing on the petition heard and decided by Judge Gadola on April 10, 1933. Appellee insists this is not a petition for rehearing; but on the theory that Judge Gadola’s order for a writ of assistance was null and void, petitioner now, as stated in her brief, “Asks that the court either set aside the order granting the writ of assistance issued * * * or that the court set aside the order to the extent of permitting appellee to file her answer tendered * * * and have a hearing* thereon. ’ ’
Notwithstanding* appellee’s contention to the contrary, clearly this is an attempt to rehear and re-adjudicate the very issue heard and decided by Judge Gadola — i. e. plaintiff’s right to a writ of assistance.
We make no point of the fact that the instant hearing in the circuit court of Lapeer county was before Judge Oramton instead of having been before Judge Gadola, who was called in to hear the former petition in the Lapeer circuit court in the place of Honorable Henry H. Smith, then circuit judge of Lapeer county.
Appellee’s contention that the present proceeding is not a petition for a rehearing is based primarily upon the claim that Judge Gadola did not obtain jurisdiction of the parties or of the subject matter because a proper proceedings by which to secure the writ of assistance was not instituted in the court. This contention of appellee cannot be sustained. It is not necessary to institute an independent suit in order that the tax purchaser may obtain a writ of assistance. Instead a petition for the writ may properly be filed in the tax suit instituted in the circuit court by the auditor general. This matter of practice was detailed by this court in Ball v. Ridge Copper Co., 118 Mich. 7. There a petition for a writ of assistance was filed by the holder of the tax title, “in a proceeding by the auditor general of the State in the Ontonagon circuit court, in chancery, for the sale of certain lands delinquent for taxes. ” It is pointed out in the opinion that provision is made in the statute for the issuance of a writ of assistance as a means provided by the legislature to enable the court to carry its decree into effect. See 1 Comp. Laws 1929, § 3464 (amended by Act No. 290, Pub. Acts 1931). In each of the following' cases the record discloses that the petition for writ of assistance was filed in the tax proceedings: Mann v. Carson, 120 Mich. 631; Roberts v. Loxley, 121 Mich. 63; Beck v. Finn, 122 Mich. 21.
The record before us shows that the petition for the writ of assistance in the instant case was considered by all parties concerned as having been filed in and constituting a part of the original tax proceedings. It is true the petition was not so entitled, but instead was entitled as is the instant case. But it is too late to raise that technical objection at this time, nothing having been claimed for the irregularity when the matter was being heard before Judge Gadola. That the matter was considered as a part of the tax proceedings is evidenced by the fact that a separate case was not docketed, nor did the court require the payment of an entrance fee. Instead appellant’s petition was placed by the clerk of the court with other tax papers. Further in his order for the writ of assistance Judge Gadola recited in detail the proceedings taken in the tax case in consequence of which appellant was entitled to the writ of assistance. Because it was so considered and treated by the court, we must hold that the petition for the writ of assistance was filed in and as part of the tax proceedings. Judge Gadola had jurisdiction of both the subject matter and the parties. His order for the issuance of the writ of assistance might have been reviewed in this court, but no appeal was taken.
As bearing upon whether the instant proceedings is an attempt to rehear and re-adjudicate the issue submitted to Judge Gadola, the following from appellee’s prayer for relief is quoted:
“1. That the order dated April 10, 1933, granted (granting) unto petitioner in the above entitled cause (appellant herein), a writ of assistance, be set aside and held for naught.
“2. That the writ of assistance issued out of and under the seal of this court, based upon aforesaid order, dated April 10,1933, be vacated, set aside and held for naught.
“3. That the petition in the above entitled cause be dismissed or that petitioner be permitted to file her answer produced herewith in said cause, and have a hearing in open court upon said petition and said answer.”
More than two years after Judge Gadola had made, his order, appellee filed her present petition from which we have quoted above and as therein disclosed tendered an answer to the former petition. She seeks to raise the identical issue presented by the petition heard by Judge Gadola.
It is true appellee herein did not enter an appearance in the proceedings had before Judge Gadola; but she had been served with a notice of the hearing and was present in the court room when the hearing was had incident to which the writ of assistance was issued. The time within which an application for a rehearing may be made in an equitable action is fixed by court rule.
“On proper cause shown, a rehearing of an equitable action may be had. No application for such rehearing shall be heard unless filed within two months from the entry of the final decree, except where application is made on the ground of newly-discovered evidence, in which case the application must he filed within four months.” Court Buie No. 48, § 1 (1933).
See, also, Naylor v. Washtenaw Circuit Judge, 250 Mich. 698; Central Trust Co. v. Breitenwischer, 259 Mich. 532; and Weber v. Enoch C. Roberts Iron Ore Co., 270 Mich. 38.
There is no merit to appellee’s contention that she is entitled to a rehearing on the ground that a fraud was perpetrated upon the court at the time of the earlier hearing before Judge Gadola. The extent of her attempt along this line is to allege upon information and belief that Judge Gadola’s issuance of the writ of assistance was void “Because the process of the court was procured and used in a fraudulent manner and that the court was deceived thereby.” Obviously, instead of being a proper allegation of fraud the foregoing is a statement upon information and belief of the petitioner’s conclusions. There was neither sufficient allegation nor proof of fraud to justify relief upon that-ground even had the petition been timely filed.
In her present petition appellee presents additional facts and circumstances which she now urges both as legal and equitable reasons why the issuance of the writ of assistance should not have been ordered by Judge Gadola; but each of these, so far as they have a material bearing upon the issue, could have been and should have been presented to the court at the first hearing. For that reason we do not here review them in detail. Appellee gives no legitimate excuse or reason for not having presented these matters at the hearing in 1933. Such practice cannot be tolerated, otherwise there would be no assurance of finality in a court’s adjudications and no end to litigation. Hughes v. Wayne Circuit Judge, 239 Mich. 110, 115.
The present proceeding is an improper attempt to secure a rehearing of the matters adjudicated by Judge Gradóla. A decree will be entered in this court dismissing appellee’s petition, with costs of both courts to appellant.
Fead, C. J., and Wiest, Btjtzel, Bttshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Grant, J.
This suit was brought to recover $2,500, being the amount paid by plaintiff to defendant as the purchase price of certain pine lands bought of the defendant, and for which he gave, and plaintiff received, a quitclaim deed. The declaration contained the common counts, and a special count, in which it was alleged that the defend-, ant assured the plaintiff that he had title to and owned said land, and ju'omised that he would convey to the plaintiff a good and sufficient title thereto. It avers that he relied upon such assurances and promises in making the purchase; that defendant had no title thereto; and that. said money was paid without consideration. Plain till testified that defendant assured him that he had a perfect title, and would furnish a warranty deed for $2,500. The contract was not concluded in that conversation. Shortly afterwards plaintiff telephoned defendant to send him the deed through the First National Bank, and he would take it. Defendant sent the deed as directed, together with an abstract of the title. Plaintiff paid the money, accepted the deed without any complaint that it was not a warranty deed, and had it recorded. Defendant testified that he refused to give a warranty deed; told plaintiff that he got only a quitclaim deed when he bought it; that for some reason it had been quitclaimed most of the time during its transfers; and that, if he' sold it, he would give onty what he received, namely, a quitclaim deed, and that whoever bought it would have to rely upon the record.
The court was correct in its instruction that there could be no recovery under the special count. This count was not based upon fraud, but upon the failure of consideration. The grantee in a quitclaim deed, in the absence of fraud, assumes all the risk of the soundness of the title. A quitclaim deed cannot, by a parol agreement, be converted into a warranty deed. Putnam v. Russell, 86 Mich. 389.
The court instructed the jury that if defendant knew he had no title to convey, and concealed that fact from plaintiff, and if plaintiff had no knowledge of that fact, .fee was entitled to recover the money; but that, if defend-■amt refused to warrant the title, and refused to make representations in regard to it, or to give assurances of title, but told plaintiff he must rely upon the quitclaim deed, •and he accepted it under those circumstances, he could not recover. Under these instructions the jury found there was no fraud, and rendered a verdict for the defendant. .These instructions were correct. Frost v. Atwood, 73 Mich. 73; Hunt v. Middlesworth, 44 Id. 448; 2 Warv. Vend. 951; 2 Add. Cont. (Morgan’s ed.) § 533. This case does not fall within the rule laid down in Holcomb v. Noble, 69 Mich. 396, which was brought to recover damages for misrepresentation as to the value and quality of the land's sold, and wherein it was held that it was of no consequence that the representations were made in good faith, because the ■deceptive influence of the representations was effective, .and affected the plaintiff as seriously as though it had proceeded from a vicious motive. In the conveyance of title by quitclaim deed there must be an intentional concealment of facts, or an actual and intentional fraud, on the part of the grantor, to entitle the grantee to recover the purchase price; otherwise the grantee could always recover upon the failure of title, though the grantor refused to give‘a warranty deed, and bind himself by the covenants therein contained. The grantee may protect himself by insisting upon a warranty deed, but if he chooses to accept a quitclaim he is entitled to no relief either in law or equitj’.
Error is alleged in that the court, in charging the jury, said that the claim of the defendant was sustained to some extent by the testimony of two witnesses, who were present and heard the conversation between plaintiff and defendant, or at least heard parts of it. If it be conceded that this was error, still we do not think that the remark could have prejudiced tffe jury, under all the circumstances of the case. The testimony of these witnesses was positive as to the conversation to which they testified, and they were not impeached.
Judgment affirmed.
The other Justices concurred. | [
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McGrath, C. J.
One of the east and west streets of the city of Grand Rapids extends across Grand river. West of the river, it is known as “West Bridge*Street,” and on the other side as “East Bridge Street.” A bridge extending from bank to bank connects the two sections. The westerly terminus of the bridge is about 125 feet west of the dock line. The street is 66 feet in width, but the bridge is but 42 feet wide over all. The roadway in the center of the bridge is 24 feet wide, and there is a foot passageway 8 feet wide on each side. Complainant owns the river front on each side of the western terminus of the bridge, and has constructed and maintained for some time, between the dock line and the original river bank, a mill race, which is used to furnish power to factories in the vicinity. Over the east bank of this race or canal, on the south side of the bridge, complainant has built a brick building, which faces the bridge;' and upon application to the common council that body caused the, removal of the south rail of the bridge, giving complainant access to said building from the southerly footway' of said bridge. Complainant has constructed a private bridge over the race, giving him access to the rear of said building from Front street, which runs north and south near the westerly terminus of the bridge, and intersects West Bridge street.
The common council, in April, 1891, declared the paving of West Bridge street, from the west line of - Jefferson street to the bridge, a necessary public improvement. The contract was let, and the work done. The council fixed the assessment district as follows:
“All lots, parts of lots, and pieces of land included within the west line of said Jefferson street and the dock and building line on the west side of said river, as established by the Legislature of the State of Michigan, and extending back from said West Bridge street, on either side thereof, a. distance of 132 feet,. excepting from said described district all public streets and alleys.”
The district so fixed includes land owned by complainant lying north and south of the bridge between the westerly bank of the canal and the dock line. The board of review and equalization made the assessment, and the roll was reported to and confirmed by the council after all parties were heard. Complainant failed to pay his assessment, and these parcels of land were sold to the city, and this bill is filed to set aside such sale, and remove the cloud from complainant’s title. The court below dismissed the bill, and complainant appeals.
All the proceedings are admitted to be regular, but it is insisted that these parcels do not abut upon the street; that the land assessed is in the bed of the river, and is not accessible from the street in question. Other parcels of land within the same assessment district do not abut upon this 'street. Although, in their present condition, these parcels are not accessible by teams immediately from the street, they are or may be accessible for foot passengers, and the street is used in passing to and from them. The west line of both parcels is west of the westerly terminus of the bridge; there is 12 feet of street space both north and south of the bridge; and both parcels may be made accessible from this very street. The lands are owned and held by complainant, are for the most part occupied by him, and devoted to his choice of uses, and the public is excluded as virtually as if a wall were built at the dock line. They are not a part of the river bed, in the sense that the public has a right of way over them.
The right to assess lands for local improvements does not depend upon the use to which the owner may choose to put such land, or whether he may see fit to put it to any use. The charter expressly provides that the benefits shall be assessed upon the owners or occupants of taxable real estate in proportion, as nearly as may be, to the advantage which such lot or parcel is deemed to derive from the improvement. It cannot be said that the improvement does not benefit complainant’s property, and the measure of that benefit is for the council and commissioners. These officers acted within the scope of their powers, and the record contains no evidence of fraud, cor rupt motive, or intentional favoritism. The presumption is that, in making the district and the assessment, the officers of the municipality acted in good faith, and have correctly and faithfully exercised the discretion reposed in them. In such case, where mistake or abuse of discretion is not manifest or .demonstrable, the determination of the municipal officers’ in whom such' discretion, is vested is conclusive, and it is not reviewable by the courts. I Dill. Mun. Corp. § 94.
The decree of the court below is affirmed, with costs to defendant.
The other Justices concurred. | [
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Hooker, J.
An application to reform the decree of this Court is made upon the ground that it is too broad, in that it dismisses the Auditor G-eneraFs petition as to •■all taxes assessed upon the lands involved in this case, and that the township tax, special school tax, road tax, bridge •or building tax, and reassessed orders or township interest tax should have been excepted. Auditor General v. Hill, 97 Mich. 80. An investigation of the record and briefs .shows that counsel agreed that but one question was raised by the record, viz., whether the record of the board of supervisors in relation to equalization and apportionment was duly signed. No claim was made by counsel in the brief that any such exception should be made, or that such taxes Avere involved. The record does" not show whajfc taxes were included in the decree below, or in the petition filed by the Auditor General, either as to the nature of the taxes sought to be collected, or the amounts thereof. The answer prays that the petition of the Auditor General may be dismissed as to such lands, and, so far as we can determine from the printed record, defendant's right to such relief depended upon the single point litigated, upon which the opinion was based.
Ordinarily, the Court cannot be depended upon to go ■outside of the printed record and briefs to ascertain what question may be involved in a case, and cannot give parties a rehearing when they have not seen that the case was-properly presented. In this case, however, the original record shows that such taxes were included; and as the list of lands involved is large, and the loss to the public under the decree entered would be great, we reopen the case upon this application. •
The proceedings of the board of supervisors which were held to be defective were those .relating to the equalization and apportionment and the raising of money for county purposes. It is further objected that it does not appear that' the board made any examination of the certificates, papers, etc., required to be submitted by the townships,showing the amount to be raised therein, or that it heard and considered all objections made thereto by persons to be affected thereby. Under a similar statute, it was held that such taxes were not necessarily invalidated by a failure of the board to direct that such taxes be spread. Hunt v. Chapin, 42 Mich. 24. The board had nothing to do with the ordering of these taxes. While it had authority to examine the return, and hear disaffected parties, it was with a view to having the proceedings perfected if irregular. The failure to do this is an irregularity at most'. It is not shown that there is any defect in these taxes, or that the defendant has been denied a hearing by the board, and the presumption is that such taxes are valid.
The case of Auditor General v. Roberts, 83 Mich. 471, is cited as an authority against this view of the case, but an examination of that case will show that this question was not raised. All taxes were there rejected by the lower court except the State and county taxes, and this Court passed only upon the taxes not rejected.
The decree heretofore entered may be modified by affirming the decree of the court below as to the township taxes, special school tax, road tax, bridge or building tax, and other township taxes, and the petition dismissed as to all other taxes.
The other Justices concurred. | [
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Long, J.
This action was brought to recover commission for the sale of real estate. In August, 1890, defendant placed certain real estate in Detroit in plaintiff's hands for sale. He made several efforts to sell, but was unsuccessful, when in May, 1891, the authority to sell was revoked. In July, 1891, plaintiff claims that he was again given authority to sell, the defendant being in Detroit at that time, and making the arrangement personally, but that it was agreed that Mr. Hannan also had the same authority, and whichever sold should have the commission. Defendant says that the agreement was that, if plaintiff sold the propert}7, Hannan should have 1 per cent., as he then had charge of the property, and plaintiff should have a like amount. The abstract of the property was then in Han-nan's hands. Nothing further occurred until August 13, 1891, when plaintiff wrote a letter to defendant, stating that he had a prospective purchaser in Mr. Barnard, of Menominee, who had left a deposit with him to close a sale of another place if he could not buy defendant's property for $13,500. The defendant was then in Chicago, and wrote in answer to this, on August 13, as follows:
“I received your letter. I will take $13,500 cash if the sale is made right aivay, as I got a good tenant to rent it for three years, and I said I would rent it; but I have signed no lease yet. My husband did not want rue to sell any of my property, but I got a good chance to buy something here. I will take $13,500 cash for both of the houses, and let me know before I sign the lease, and answer as soon as possible.”
On the following day the plaintiff replied:
“Your favor of the 13th inst. at hand. I wired Mr. E. P. Barnard, of Menominee, Mich., your acceptance of $13,500 cash for both houses; * * * hence I will forward on to you, when I receive his acceptance of the same, money enough to close sale, and on receipt of same you can start at once to get abstract and other papers necessary to be made out to close up the sale complete.”
On the day following this letter, the defendant notified Mr. Hannan to turn over the abstract to plaintiff. August 19, at plaintiff’s request, the following telegram was sent defendant: “Barnard will be here Friday, to close sale. Come at once. Answer.” Defendant answered plaintiff: “ Cannot sell. Too late. Thought you could sell sooner.” On the same day of this answer by telegram from defendant, and before plaintiff received it, he wrote defendant, stating that he thought Barnard would be in Detroit that week to close the sale, -and that Ward would send “ a few hundred dollars this week yet, with a contract.” Five days after this, and on August 24, Mr. Barnard came to Detroit, when plaintiff telegraphed defendant:
“ Buyer is here waiting, with cash. We hold you to your acceptance of $13,500 as per your letters and contract left with me; hence sale must go through, or I will sue for full commission. Have made satisfactory arrangement with Hannan. Answer by wire.”
No reply was received to this, and what was meant by “contract left with me” does not appear.
Drpon the trial it was insisted as matter of defense:
1. That in the transaction plaintiff acted as agent of Barnard, the purchaser, of which defendant Avas not at the time apprised.
2. That the authority to sell had ,been revoked, the sale not having been made “right away,” as required by the letter of August 13.
3. That in no event was plaintiff entitled to more than 1 per cent, commission.
—And it is claimed that these questions should have been submitted to the jury.
1. The court directed the jury that—
“If the plaintiff was acting solely as the agent of Mr. Barnard to buy Mr. Barnard a house, and not as the agent of defendant to sell her house, then there would be no claim against defendant. But if he received this property for sale, and his interviews with Barnard grew out of the fact that he had this property for sale, I do not think that his conduct would bear the interpretation that he ivas acting as agent of Mr. Barnard, instead of as the agent of Mrs. Boylan.”
This was a very fair statement of the case to the jury under the testimony. Before Mr. Barnard had ever looked at these premises, he knew plaintiff had them for sale for defendant. It is true that in the mean time they had been taken out of plaintiff’s hands, and authority given to Mr. Hannan to sell them; but subsequently .defendant authorized plaintiff, as well as Hannan, to make the sale, and they could have sold to any other as well as Barnard under the authority from defendant. The plaintiff testified that defendant knew that Mr. Barnard had engaged him to look up a house for him, and that he had been looking at other houses. He also says he disclosed to her fully his relations with Mr. Barnard. He took Mr. Barnard at one time to see defendant, and she talked with him herself about the sale of this very property.
The court directed the jury substantially that the proposition to take the $13,300 if accepted “ right away ” gave the plaintiff a reasonable time to bring about the negotiations with Mr. Barnard; and if the jury believed, under the circumstances, that an acceptance on the 24th was a reasonable time, the defendant would be liable. This was a correct interpretation of the words “right away.” They could not be construed to mean instantaneously, but within a reasonable time, in view of the particular facts. The word “ immediate,” occurring in a statute in relation to the delivery and change of possession of property covered by a chattel mortgage, was held by the court in Richardson v. End, 43 Wis. 316, to mean within a reasonable time under the circumstances. See, also, Turner v. Machine & Foundry Co., 97 Mich. 156.
3. The court instructed the jury that, if the plaintiff was entitled to recover, his commission would be 2 per cent, upon the agreed purchase price. This was error. If defendant’s testimony is true, all that- plaintiff could claim would be 1 per cent. If the sale was made, — so far as plaintiff could make it, — and defendant then refused to execute the deeds of conveyance, he might be entitled to his commission of 1 per cent., as agreed; but the other 1 per cent, to be paid belonged to Mr. Hannan, if to anybody. We think the arrangement could not be construed as giving the plaintiff the whole commission, or the right to sue for it.
Judgment must be reversed, and new trial ordered.
The other Justices concurred. | [
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Montgomery, J.
This case originated in justice’s court. The plaintiff, in 1891, became a farm tenant of defendant under an agreement to work fhe defendant’s farm on shares. He purchased a- half interest in certain stock, tools, and various other articles on the farm, agreeing to pay therefor $282.30, and gave his notes for the amount. In August, 1892, an agreement was made between the parties that the plaintiff should leave the farm, and should sell to defendant his interest in the growing crops, and in all the personal property, increase in stock, etc. A bill of sale was made and delivered, and plaintiff gave possession to defendant. This aotipn was brought to recover an indebtedness claimed to be due to plaintiff arising out of this transaction.
The parties are at variance as to what the agreement under which the plaintiff left the farm was. Upon the trial at the circuit the plaintiff limited himself to a claim for a stated sum of $224, which it was contended the defendant agreed to pay him for his interest in the property. The defendant, on the other hand, alleged that he had an account against the plaintiff in addition to the notes hereinbefore referred to, and that the agreement was on the part of the plaintiff that he would leave the farm, and give a bill of sale of his interest in the stock, etc., in pajrment of these notes and this account. That such a bill of sale'was executed, and the notes delivered, is not in dispute, the controversy between the parties upon this point being whether there was, in addition to this, an agreement upon the part of defendant to pay the plaintiff the sum of $224. It is strenuously insisted by the defendant's counsel that the plaintiff's own testimony shows that there was no meeting of the minds of the parties upon any such contract as is asserted in his behalf, and the circuit judge was requested, both at the close of the plaintiff's testimony and by request to charge at the conclusion of the whole testimony, to direct a verdict for the defendant. The plaintiff supported his claim by no other testimony than his own, and the question presented calls for a thorough examination of his testimony. As it bears upon this point it is as follows:
“I told him [meaning defendant] if he returned the notes, I would return the stock to him; and I wanted $224 for the interest I had in the place, stock and crops that I had raised through the summer; and he agreed to that, and, after the notes were returned, he would not pay the $224. That was all the understanding there was between us.”
On cross-examination he testified:
“ He agreed to pay me, and when the bargain was made he wouldn't do it. I asked him for my pay next day. After we made the writing, I went down after my pay. Same day I moved away. It was while I was on the place. He told me he wouldn't do it. • He said he was not owing me anything, and then I went right off from the place. While I was- yet on the place, I told him I wanted him to pay me $224. He denied it. That was before I left the place. The reason I didn't stay there and insist on my rights in the crops was that he was so mean continuously that I couldn't get along with him.''
In another place in his testimony he testified as follows:
“No, I didn’t know before I left the farm that he was claiming he didn't owe me. I don’t just understand. I was down there, and wanted $224 in cash, and he would agree to that. When the notes were returned, and I had returned the stock, he would not pay the $224. I first asked him to, the first day I was down there; the same day when we made out the papers; the same day or next. It was the same day. Yes, sir; I am pretty sure of that. I ain't positive whether it was the same day or the next. I said to him I wanted the money what I bargained for. He said he didn't owe me anything. I did know that he claimed he didn't owe me anything. The reason I didn't offer him the notes back, and tell him if that was what he claimed I would stay there, was that I couldn't get along with him. I did offer him the notes back. I told him I would return the notes if he would return the stock. I told him that the same day when I was down there. Mr. Randolph came up. I made the bargain with him. He wanted to know how I wanted to settle up. Mr. Randolph was up and done the business for him. It was the same day when we made out the papers. He came up in the morning, and we went down, and I told him how I wanted it straightened up; and Mr. Randolph agreed to that, and made the bargain. I asked Mr. Richards where my money was, and he said he didn't owe me anything after the papers were made out. He did, right at the time. He told me he didn't owe me anything. He had the paper in his hands at that time, and after that time handed it to me. . I didn't tell him I wouldn't have it, that I was going to keep the farm, because I couldn’t get along with him. Right there, at that time, when we made this bargain, I told him I wanted this money, and he told me he didn’t owe me anything. I am sure about that. I asked him for the money when we were there, and he said he didn’t owe me anything. He had the notes when I asked him for the money. At the time these papers were made I said to Mr. Richards, '.Where is my $224?’ and he said he didn’t owe me anything. I am sure about that. I don’t remember which of us had the notes. I am not sure about that. But he still had the contract, and I am not sure but he had the.notes. I can’t tell, when we had the talk, who did have the notes, he or I. So much said that I can’t remember. I didn’t go to see him the next day about paying me $224. It was' the same day. That is the talk that I have testified to before; and that was while I was there yet, making this bargain. I thought he was so bad a man that I couldn’t get along with him, and so I took the paper.”
Counsel for plaintiff says that the witness became confused on cross-examination. This is undoubtedly true. But it is the right of the defendant to have it determined whether, as a matter of law, the plaintiff’s testimony, taken as a whole, — that upon direct examination, as explained and modified by the cross-examination, — states such a contract as is relied upon. We feel constrained to hold in this case that the evidence falls short of making a prima facie case. By the plaintiff’s own statement, pending the negotiations for the adjustment between the parties, he learned that the defendant repudiated his claim to the $224, refused to pay it, and asserted that he didn’t owe him anything; and yet, in the face of this positive assertion, plaintiff concluded the contract, and, as he says, "I thought he was so bad a man that I couldn’t get along with him, and so I took the paper.” Unless contracts can be made by compulsion, no contract was shown here.
The circuit judge should have directed a verdict for the defendant, and for this error tbe judgment will be reversed, with costs, and no new trial ordered.
The other Justices concurred. | [
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Montgomery, J
The plaintiffs recovered a judgment against the defendants in justice's court, which, on being removed by certiorari, was reversed. We are called .upon to examine the several grounds of error alleged in the court below.
It is alleged that the justice failed to obtain jurisdiction, for the reason that the suit was commenced by a short summons, which did not show on its face why a long summons was not employed. The statute does not require any such recitation. See Allen v. Mills, 26 Mich. 123. If the facts had not been such as to justify the use of a short summons, the defendants, on making the fact to appear, would have entitled themselves to an order dismissing the canse. They did not pursue this course, but, on the contrary, made it appear, by their own application for security for costs, that the plaintiffs were not residents of the county, and were therefore entitled to a short summons.
It is next claimed that the return of service is insufficient, for the reason that it does not appear by the return of what county the officer is under-sheriff. The return is signed “ William H. Smith, Under-sheriff.” The service was made, as the return shows, in the city of Muskegon. It is plain enough that the under-sheriff was assuming to act in the county of Muskegon, and the official designation is sufficient.
It is alleged as error that the plaintiffs’ attorney did not sufficiently prove his authority to appear. It is averred that it appeared on his examination that his authority was in writing, and that no writing was produced before the justice. This is the statement in the affidavit. The return, however, does not affirmatively show these facts. The return is — “Jerome E. Turner, a member of said firm, appearing, who, oa_ the return-day of' said summons, had, under oath, proven his authority to appear at the request of James O’Hara, Esq., who announced that he appeared specially for the defendants.” It is further stated in the return that “Jerome E. Turner not only proved his authority to appear orally, but produced, when sworn as a witness in said cause, other documentary proof.” The return certainly does not affirmatively show error, and, if the plaintiffs in error were not satisfied with it, they should have moved for a further return. The allegation of error must be sustained by the return of the justice.
It was also alleged as a ground of error that the justice had lost jurisdiction by holding the cause open from, the 2d of August until 9 o'clock of the next day, on. his own motion; and counsel rely upon Stadler v. Moors, 9 Mich. 264, and Hall v. Shank, 57 Id. 36, as sustaining-this contention. The case of Brady v. Taber, 29 Mich. 199, is also a case where the same subject was considered. In neither of the cases was there any appearance by defendant for any purpose, and the adjournment was for a period sufficiently long to indicate that it could not have been made to enable the justice to give attention to other pressing official business. In Stadler v. Moors, it was said:
“ Though the justice might have held the cause open for a reasonable time, and continued the cause from day to'day,- in the progress of the trial, as the necessities of the case might require, he. had no right, without any such necessity, and without entering upon the trial, to adjourn it over for several days."
The facts in this case are very different. The justice held the cause open only until the following morning. Counsel was present representing the defendants, and made no objection, although objecting to jurisdiction on other-grounds. No suggestion of a want of power was made until the next morning, when it was suggested that the justice had lost jurisdiction. Under the circumstances, it will be presumed that the justice had sufficient valid reasons for holding the cause open from day to day. To hold that there was not the power would result in hampering, unwarrantably, proceedings in justices' courts. It is a well-known fact that most justices have, of necessity, numerous cases returnable on a single day, and oftentimes at a particular hour. In some cases the parties may be prepared for trial; in others, not. To hold that the justice must .deal with a single case as if the trial of that case were to-be his last and only official business would result in ousting him of jurisdiction in all others which might be returnable before him on the same day.
The defendants moved to dismiss the case for the reason that security for costs was not filed. This was denied upon the assurance, as the docket shows, that security should be given “before judgment should be entered against the defendants.” This is evidently a clerical error. Security was in fact filed before the trial proceeded. We think this was sufficient.
It was next contended that the judgment was void because of a discrepancy of the dates appearing upon the docket. The docket entries show that the cause was called on the 2d day of August, at 9 o'clock in the forenoon, and proceedings were had down to, and including, the holding open of the cause until 9 o'clock of the forenoon of August 3. The subsequent proceedings appear opposite a marginal entry of August 2, but at the conclusion of the proceedings is the following:
“ Dated this 3d day of August, A. D. 1892.
“Peter W. Lobby, ■
“Justice of the Peace.”
We have repeatedly held that the docket entries must be deemed controlling, and cannot be varied by parol. Mudge v. Yaples, 58 Mich. 310; Weaver v. Lammon, 62 Id. 367. But in the present case the docket, read as a whole, is not open to misconstruction. It appears by the docket entries that the cause was held open until August 3 at 9 o'clock. All the proceedings which follow this are continuous, and appear by the docket to have occurred on the same day, and all appear above the date of August 3 at the foot of the docket, and demonstrate that the marginal entry of August 2 opposite the later proceedings is a clerical error. Resort to parol testimony is not necessary. The docket speaks for itself, and shows that the, proceedings were had at the time to which the cause was held open.
We think none of the alleged errors went to the jurisdiction of the justice. It may prove of little avail to repeat what the Court has so frequently said, — that the more appropriate remedy in such cases as the present is by appeal. See Gray v. Willcox, 56 Mich. 58; Erie Preserving Co. v. Witherspoon, 49 Id. 377; Galloway v. Corbitt, 52 Id. 460. Undoubtedly, the party has a right to resort to certiorari, but if he does he must do so at the risk of failing to “hit the bird in the eye,” and at the risk of losing a trial on the merits in case of such failure.
The judgment of the court below will be reversed, and that of the justice affirmed, with costs of both courts to the plaintiffs.
The other Justices concurred. | [
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Hooker, J.
The relator, a clergyman of a Wesleyan Methodist denomination, asks a mandamus requiring the respondent to expunge from its records an order suspending him from his office and work as pastor in such denomination, and to restore and re-instate him to and in his former work as such pastor. The grounds upon which relief is sought, as set forth in the petition, are as follows:
“1. That the said conference had no authority or power, either by law or by the discipline, to delegate to any committee the right of trial of any elder of said connection upon charges with reference to his character, with power to fix penalty; that, by the discipline of said connection, the conference itself is the only body entitled and authorized to act upon the charges preferred against your petitioner.
“2. That the committee above made acted without any authority under the discipline, and they had no authority to suspend for the period of . time named in the said report; and, further, your petitioner alleges, in this behalf, that during the said trial he was constantly interrupted in not only his own testimony, but also that of his witnesses, and also in remarks which your petitioner tried to make in his own behalf, which was contrary to the discipline of said connection.
“3. That your petitioner did not have proper notice of a trial, and that he was informed by one Smith, a member of the committee, that no trial would be had.”
An answer was filed, and issues were framed and tried at the circuit; said issues and findings being as follows:
“1. Whether the character of relator prior to September 2, 1891, was good. To this question we answer yes. And whether he had, prior to that time, committed acts unbecoming a minister of the gospel. To this we answer no.
“ 2. To the second question — whether relator, prior to his trial of which he complains in his petition, had been found guilty of wrongful acts before a committee appointed .by respondent, assembled at the home of the relator — we answer that no; he had not.
“ 3. To the question whether, when relator was appointed pastor of the Westville church, he was received in said charge under strong protest, we answer he was not.
“4. To the question whether relator had a fair trial by the said respondent, in accordance with the discipline of the above-named church, we answer that he did not have a fair trial.
lf5. As to whether relator had notice of the trial and the proceedings had in the premises, we answer that he had no proper notice.
“ 6. As to whether relator was, during his trial, interrupted, contrary to the rules and discipline of the said respondent, we answer that he was.
“7. As to whether relator had been offered a new trial, and what were the terms of the offer, to this we answer that he had not been offered a new trial.
“8. To the eighth question — whether relator ha3 acted in hostility to respondent, and whether, if re-instated, it would endanger the welfare of the church — we answer no.
“9. As to whether the respondent has the right to delegate its judicial powers to committees, we answer that it has.
“10. As to whether respondent appointed counsel for relator upon his trial, we answer that they did not.
“11. Whether relator has asked for a new trial under the discipline when it could be had, we' answer yes; and, as to whether it has been refused, we answer there was no absolute refusal, but they did not comply with his request.
“12. As to whether it was stated to Mr. Dempsey, on said trial, by respondent’s counsel, that he would not be forced to a trial unprepared, and that no advantage would be taken on account of the absence of witnesses; and whether or not said Dempsey replied that his witnesses were all present, and that he would withdraw all objections, and proceeded to trial after he had entered a plea of not guilty, — to this question we answer, as to counsel’s statement, yes; as to Mr. Dempsey’s reply, we answer no.”
The first point made by the relator is that the conference only, and not a committee, was authorized to act and fix a penalty upon the charges preferred. The ninth finding of the jury seems to be final upon this question, and is the only means of determining it upon this record. We are therefore of the opinion that the conference could lawfully submit the matter to a committee.
The second ground of complaint attacks the power of the committee. In so far as it states that this committee acted without authority under the discipline, it is within the finding of the jury mentioned. It is further said that this committee had no power to suspend for two years. The answer of respondent asserts that it was within the power of the conference to authorize such committee to impose the penalty named, that the trial was conducted according to the discipline of said church, and that the judgment was just, proper, and right. No other issue than that mentioned involved the question of the power of the committee, and the answer must therefore be taken as conclusive of the fact that such committee had such power and authority. The second ground of complaint states “that during the said trial the petitioner was constantly interrupted in not only his own testimony, but also that of his witnesses, and also in remarks which your petitioner tried to make in his own behalf, which was contrary to the discipline of said connection.” All of this was deniéd in the answer, and an 'issue was framed, viz., the sixth. The jury find that the relator was, during his trial, interrupted, contrary to the rules and discipline of said respondent.
The third and remaining ground is that relator did not have proper notice of trial. The issue framed upon this was as follows, viz.: “As to whether relator had notice of the trial and the proceedings had in the premises,” — to which the jury say, “We answer that he had no proper notice.”
If, then, relator is to have relief, it must be upon one or both of the last two findings, viz.: That he had no proper notice of trial, or that he was improperly interrupted during the trial.
The record clearly shows that the relator was not proceeded against without notice. He states in his petition that he had no notice of the time of trial. The answer states that he was present, in open conference, when preparations were being made for such trial; that he took part in the discussions pertaining to the arrangements for the same; that he requested said conference to assign him counsel to aid in his defense, which request was granted; and that he was represented at the trial by persons of his own selection, and that they raised no question of the want of notice of the time or place of trial. No issue was framed upon these statements, but the jury were required to determine.“ as to whether relator had notice of the trial and the proceedings had in the premises.” To this they answered that “he had no proper notice.” What is meant by a “proper notice,” as contradistinguished from “any notice,” may be a matter of uncertainty; but. in the light of the fact that both petition and answer state that the relator objected at the hearing that the charges “did not" contain either date, time, or place assigned for trial,” we may perhaps be justified in inferring that this was the defect in the proceeding upon which the jury found that a proper notice was not given. That he had actual notice of the time and place of trial is obvious, because he is shown to have been there, with counsel, participating in the trial, and suffering- improper interruptions according to his statement. Chase v. Cheney, 58 Ill. 535. The jury were asked to determine whether the relator had notice. This they did not do, unless we are to infer that he had actual notice from the fact of the insertion of the uncalled for word “proper” in their answer. The jury were not directed to try the sufficiency of the charges, or whether it was necessary that they should state the time and place appointed for trial. We think that there i§ enough in this record to show that the respondent had jurisdiction, not only of the subject-matter, but of the-person of relator. This, being determined, practically disposes of the case.
The statement is made that the relator was unduly interrupted upon the trial,, and the jury have said that, he did not have a fair trial. These questions, like several others having no especial significance, seem to have been tried before the jury, and their findings are returned; but the decision here must rest upon .the questions raised by the petition. The interruption of the relator and his witnesses, and the incidental irregularities of the trial, are not subject to review in this proceeding. Walker v. Wainwright, 16 Barb. 486; Chase v. Cheney, 58 Ill. 509; Connitt v. Dutch Church, 54 N. Y. 551. If they were, no. definite irregularity, prejudicial to the relator, appears, which calls for the issue of a discretionary writ.
AVrit denied, with costs.
The other Justices concurred. | [
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Btjtzel, J.
Plaintiff filed a bill of interpleader to determine the rights of various claimants to the proceeds, of an insurance policy. Mrs. Jago, widow of the insured, claims the insurance as the beneficiary named in the policy. Mrs. Bisbee claims $1,400 of the proceeds by virtue of a written assignment made by the insured at the time when an adjudication of mental incompetency was in force and when there was a guardian of the person and the estate, duly appointed by the probate court. The other defendants claim a small amount of Mrs. Bis-bee ’s share by virtue of an assignment from her. The proofs tend to show that the insured was fully able to comprehend the nature of the assignment to Mrs. Bisbee at the particular time it was made; that it was in payment of $1,400 due Mrs. Bisbee for room, board and nursing furnished the insured who was suffering from encephalitis. The assignment, however, was made without the knowledge or consent of the guardian.
After a careful examination of the authorities in other jurisdictions as well as Chase v. Spencer, 150 Mich. 99, we conclude that the correct rule is that while an insane or incompetent is under actual and subsisting guardianship of estate, he is conclusively-presumed incompetent to make a valid contract, notwithstanding it was made during a lucid interval. See compilation of authorities in 7 A. L. R. 568. He is a ward of the probate court under the laws of this State. The guardian, an officer of the court, has the sole legal right to sell, assign or mortgage the property belonging to his ward’s estate, and any such transfer without the knowledge and consent of the guardian is void. For this reason, we are constrained to reverse the decree of the lower court awarding Mrs. Bisbee the full amount of her claim. We hold that Mrs. Jago has the sole right to the insurance. A decree may be so entered, with costs to Mrs. Jago.
Fead, C. J., and North, Wiest, Bttshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Sharpe, J.
The facts in this case show that plaintiff had been suffering from hemorrhoids for three or four years prior to July, 1929, when he called at the sanatorium owned and operated by the defendant. He underwent a course of treatments from July to December of that year during which time a hemorrhoid was removed and other things done requiring one general anaesthetic and two or three local anaesthetics. On Sunday, May 11, 1930, plaintiff again experienced trouble and the following day called upon defendant. He was given a general anaesthetic, his sphincter muscle relaxed, and he was told to return May 14th which he did but, owing to the fact that he was suffering from a sore throat and not feeling well, no treatment was given him, although he was advised to go home, go to bed and take a bottle of citrate of magnesia. This was the last contact between plaintiff and defendant. The next day Dr. McDonald, a general practitioner, was called to see plaintiff at Ms home. He found Mm with a high temperature, a sore throat, and a general infection. Dr. McDonald treated plaintiff at his home for a few days, then he was taken to Providence Hospital where Dr. McDonald attended him until May 29th. In July, plaintiff again returned to Providence Hospital where he remained six weeks, during which time he was operated upon in the rectal region by Dr. Andries. In September, plaintiff was again operated upon by Dr. Andries for the drainage of an abscess.
•From February to May, 1931, plaintiff was at the University Hospital at Ann Arbor during which time he underwent three - operations, two of them rectal and one abdominal. In June, 1931, plaintiff went to Colorado where he was treated by Dr. Chisholm and had six operations for rectal troubles.
On May 11, 1932, plaintiff commenced a suit by declaration against the defendant alleging that defendant held himself out to the public and to the plaintiff as a physician and surgeon, skilled as a specialist in diseases of the rectum; that on May 12, 1930, plaintiff was suffering from a rectal disease known as hemorrhoids; that on said day defendant was employed to perform a rectal operation to remove said hemorrhoids and to treat and cure plaintiff; that defendant entered upon said employment for a consideration and undertook to remove said hemorrhoids; that defendant did not perform said operation and remove the hemorrhoids in a skillful and careful manner and did not continue the treatment of plaintiff until he was restored to health; that defendant was negligent in performing said operation and the removal of the hemorrhoids and their treatment and that as a result a streptococcic infection set in resulting in a pelvic abscess.
To this declaration defendant filed an answer in which it was alleged that any treatment administered to plaintiff by defendant terminated on December 7, 1929, and as to this course of treatment the statute of limitations was pleaded (3 Comp. Laws 1929, § 13976, subd. 3). The answer also set up the admitted fact that on the 12th day of May, 1930, plaintiff called at defendant’s office suffering from a severe proctitis with a spasm of the sphincter muscle.
The case came on for trial April 17, 1934, and .upon the calling of plaintiff as a witness, defendant objected upon the ground that the declaration did not state a cause of action. The trial judg'e thereupon permitted plaintiff to file a bill of particulars specifying the acts of defendant relied upon by plaintiff as constituting failure to exercise due care, skill and diligence. The cause was continued and plaintiff filed a bill of particulars which recited that the negligence, unskillfulness and malpractice of defendant consisted:
(a) In not properly diagnosing’ plaintiff’s condition on May 12,1930, and subsequently, and thereby learning’ that plaintiff was in a condition where it would be dangerous to relax the sphincter muscle ;
(b) In relaxing the sphincter muscle in view of the then condition of plaintiff;
(c) In not properly diagnosing plaintiff’s condition on May 14, 1930, and in not prescribing proper medicines and treatments therefor.
The defendant filed objections to the bill of particulars :
(1) Because said bill of particulars is, in effect, an amendment to plaintiff’s declaration;
(2) Because said bill of particulars purports to state a cause of action not stated in plaintiff’s declaration ;
(3) Because plaintiff may not now claim a cause of action not alleged in tbe declaration by reason of the fact that the statute of limitations has expired;
(4) Because said bill of particulars is an attempt to do indirectly what the law forbids plaintiff to do directly.
On December 13, 1934, the cause was tried resulting in a verdict for plaintiff. During the progress of the trial defendant objected to the introduction of any testimony because of the insufficiency of the declaration and because the bill of particulars stated a new cause of action. At the close of all testimony defendant moved for a directed verdict and later filed a motion for a new trial. Both motions were denied. Defendant appeals.
It is plaintiff’s claim that to relax the sphincter muscle was an operation; that it was malpractice to relax the sphincter muscle in the presence of proctitis; that this procedure caused a rectal abscess ; and that this rectal abscess caused the conditions found by Dr. Chisholm. Plaintiff also claims lack of proper examination of plaintiff on May 12th and failure to treat properly plaintiff’s condition on May 14th.
The first question that presents itself is the sufficiency of the declaration. The declaration alleged the time of the claimed grievances as May 12, 1930; the duty of defendant to remove the hemorrhoids in a careful and skillful manner and to treat plaintiff for said disease skillfully; and the failure of defendant to perform said operation and remove said hemorrhoids in a skillful manner.
“The declaration shall contain such specific allegations as will reasonably inform the defendant of the nature of the cause he is called upon to defend. Each allegation shall be set forth in a separate paragraph, and the various paragraphs shall be numbered consecutively.” Court Rule No. 19, § 1, (1933).
In Anderson v. Mollitor, 223 Mich. 159, we said,
“Pleadings still serve some purpose; they limit issues of fact to disputed questions they present and of which they give timely notice to the parties. ’ ’
And in Schindler v. Railway Co., 77 Mich. 136, 154, we said:
“The decisions of this Court have been uniform that no proof of negligence can be received, beyond what is alleged, and that allegations of the wrong are necessary. In Batterson v. Railway Co., 49 Mich. 184, it was held that no proof could be a ground of recovery, not within what was alleged with reasonable certainty. The same rule was laid down in Henry v. Railway Co., 49 Mich. 495, and Marquette, H. & O. R. Co. v. Marcott, 41 Mich. 433. In Ives v. Williams, 53 Mich. 636, it was held a failure to demur would not allow the scope of a declaration to be enlarged beyond what it would have been if properly framed on the same allegations. The same principle was laid down fully in Parker v. Armstrong, 55 Mich. 176, holding that a declaration bad intrinsically, for want of needful averments, could not be made good by not demurring. See, also, Stoflet v. Marker, 34 Mich. 313; Jackson v. Collins, 39 Mich. 557; Klanowski v. Railway Co., 64 Mich. 279; Thompson v. Railway Co., 57 Mich. 300.
“Unless something definite is averred, there is nothing to enable it to be known what is pertinent to the issue. A person suing for a single cause of action is bound to know beforehand what wrong he complains of, and wherein the wrong consists. It is not competent to go before a jury on uncertain or conflicting claims. Neither is it competent for a court to allow a mass of testimony to go before a jury, and leave them to decide, each for himself, what is legal negligence and what is not. See case.s above, and Anderson v. Thunder Bay River Boom Co., 57 Mich. 216; Lindstrand v. Delta Lumber Co., 65 Mich. 254, 259.”
Green v. Railroad Co., 168 Mich. 104 (Ann. Cas. 1913C, 98), was a personal injury case resulting in death. The sufficiency of plaintiff’s declaration was before the court and it was said:
“When a declaration fails to advise the defendant with reasonable certainty, according to the circumstances of the case, of the facts upon which plaintiff proposes to rely, and will seek to prove, it cannot be sustained.”
In the instant case there is not a plain and clear statement of the facts of the claimed wrong in plaintiff’s declaration; it does not apprise defendant of the grounds upon which plaintiff relies; it Speaks in terms of an operation for hemorrhoids as of May 12, 1930, and the resulting breach of duty in connection therewith, while the undisputed testimony is that this operation was performed prior to December, 1929, and was barred by the statute of limitations (3 Comp. Laws 1929, § 13976, subd. 3) when the declaration was filed. The declaration did not state a cause of action.
The function of a bill of particulars is well stated in American Cigar Co. v. Shewitz, 224 Mich. 556:
“While technically a bill of particulars is not a part of the declaration and cannot change the issue made by the pleadings it has more than once been said to be explanatory of the declaration and in amplification of it.”
“The object of the practice for the production of bills of particulars is to obviate the uncertainty of general pleading. The intent is to secure such information as will enable the parties to make an intelligent preparation' for .trial, and to enter upon the investigation before the court or jury with an understanding as to what is really in controversy. The bill of particulars is often mentioned as being an amplification of the declaration, or as entitled to be considered as a part of the pleading. But such expressions are metaphorical. The bill is never in strictness a component of the pleading. It m^y have the effect of a pleading in so far as it restricts the proofs to what it contains.” Cicotte v. Wayne Co., 44 Mich. 173.
“A bill of particulars is not a pleading in any court. It may restrict, but cannot enlarge, the scope of the recovery permissible under the declaration, and the issue made by the pleadings is not changed by its amendment.” Applebaum v. Goldman, 155 Mich. 369.
The bill of particulars was filed in April, 1934. It speaks in terms of malpractice in connection with the relaxing of the sphincter muscle in the presence of proctitis. It abandons the claimed malpractice in connection with the hemorrhoid operation as alleged in the declaration and as such alleges a new cause of action not contained in the original declaration.
In Bockoff v. Curtis, 241 Mich. 553, we said:
“It is not within the discretion of a trial court to permit an amendment which states a cause of action barred by the statute of limitations.”
See, also, People, ex rel. Gorman, v. Newaygo Circuit Judge, 27 Mich. 138; Wingert v. Wayne Circuit Judge, 101 Mich. 395; Flint & Pere Marquette R. Co. v. Wayne Circuit Judge, 108 Mich. 80.
The judgment of the lower court is reversed, without a new trial. Defendant may recover costs.
Fead, C. J., and North, Wiest, Btjtzel, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Hooker, J.
The complainant files a bill for the foreclosure of certain instruments, which he recognizes as mortgages, given to Mm by defendant Gamble. The first was a warranty deed, executed on April 6, 1888, by Gamble and wife, of the south 50 acres of the N. W. \ of section 2, and the N. i of the S. E. £ of section 3, township 12 N., of range 4 E. At the same time an agreement in writing was executed by Burt and Gamble, acknowledged by the latter, reciting the fact that said deed had been given, and also that Gamble had delivered to Burt six notes of $2,000 each, with a land contract of the abovedéscribed lands, executed between Gamble and one Patrick La Yelle, and stating that said deed and assignment of the land contract and delivery of the six notes were made for the purpose of securing to Burt the sum of $4,000 within 90 days from the date of such writing, and all obligations that Burt might assume or become liable for by reason of any paper indorsements or obligations that he might make for or at the request of said Gamble; upon payment of which sums Burt was 'to reconvey the premises, contract, and notes to Gamble. On May 2, Gamble and'wife made a warranty deed, conveying to Burt the S. W. ¿ of S. E. i of section 3, township 12 N, range 4 E. An instrument in writing, dated May 4, 1888, but acknowledged on May 12, 1888, by both Burt andGamble, recited this deed, and stated: “ Said conveyance was made for the purpose of securing said Wellington E. Burt for all indorsements heretofore made, or that may hereafter be made, by him, for the benefit of said Henry Gamble.” It required Burt to reconvey upon payment by Gamble.
At the time of making the deed first mentioned, Burt indorsed a note of $4,000 for the accommodation of Gamble, the proceeds being received by Gamble from the Home National Bank. This note was renewed several times, the last renewal being February 20, 1889. Another note, for $800, was made August 7, 1888, and was renewed until April 13, 1889. There was also a note of $2,139.77, given July 31, 1886, which, was renewed from time to time until March 27, 1889. All of these notes and their renewals were made by Gamble, payable to Burt, who indorsed them, and were negotiated by Gamble at the bank for his own purposes. On June 29, 1889, the three notes were merged in one for the sum of $6,939.73, made, indorsed, and negotiated as before. On October 2, 1889, this note was protested, and suit was brought thereon against Gamble, and a judgment recovered, and on April 21, 1890, the bank caused execution to be levied upon the lands conveyed to Burt as aforesaid, and the interest of Gamble in the lands was bid in by the bank at execution sale for $25 for each description, — a total of $75, — on June 21, 1890. The bank thereupon called upon the indorser, Mr. Burt, for payment, and on July 2, 1890, he paid to the bank the sum of $7,251.95, taking from the bank a paper reading as follows:
“East Saginaw, Mich., July 2, 1890.-
“Eor value received, the Home National Bank, of East Saginaw, hereby sells, assigns, and transfers to Wellington B. Burt, of East Saginaw, Michigan, all the right, title, and interest which said bank _ has in and to the f Henry Gamble Property/ so called, the interest being obtained by .suit to collect note.
[Signed] “J. H. Booth, Cashier.”
In addition to the foregoing, Burt had paid to the .Second National Bank, at the request of Gamble, his note ior $2,500, given to Lindsay & Gamble.
It also appears that on September 7, 1889, Burt had -commenced an action against Gamble for the recovery of $198,000, claimed to be due upon dealings between them relating to lumber. Defendant Tarsney’s firm were attorneys for Mr. Gamble in this litigation. Gamble did not redeem the land from the execution sale by the bank, but before the expiration of the year within which he might have done so, viz., on February 13, 1891, a settlement was made between him and Burt of the litigation, and some other matters in which they were interested. This was evidenced by a writing containing the following, viz.:
“The said Henry Gamble does hereby also acknowledge and agree that there is due to the said Wellington R. Burt, for' which said mortgage or trust deed is security, and which is a lien and incumbrance upon the land in Saginaw county, Michigan, hereinbefore described, a certain promissory note made March 21, 1888, due in three months after its date, to Lindsay & Gamble, for $2,500, at the Second National Bank of East Saginaw, Michigan, signed by Henry Gamble, and indorsed by Lindsay & Gamble; and also the claim of the Home National Bank against said Henry-Gamble, which has been assigned to the said Wellington R. Burt, by an assignment dated July 2, 1890, and upon which claim there is. due upon that date the sum of $7,251.95; both of which said last above- claims are to remain and be valid and subsisting liens against said Henry Gamble, and for which said land in Saginaw county, Michigan, above described, is pledged and held as security.
“In consideration of the above and foregoing premises and undertakings on the part of the said Henry Gamble, said Wellington R. Burt does hereby agree and does release and acknowledge satisfaction and payment from the said Henry Gamble of all book accounts and debts due and owing to the said Burt for and on account of, said land transactions and lumbering contracts in the Hpper Peninsula of Michigan, and does hereby release and acknowledge payment of all other claims and accounts against the said Henry Gamble, excepting the said note for $2,500, above mentioned, and the claim of the Home National Bank against said Henry Gamble, assigned to Wellington R. Burt, as above stated, amounting to $7,251.95; all of which said claims are still due and owing from the said Henry Gamble to the said Wellington R. Burt.
“And it is also-mutually agreed between the parties hereto that the suit now pending in the Saginaw circuit court between the said parties be discontinued without cost to either party, and that all matters of difference between them are hereby mutually settled and adjusted, as above set forth.”
The settlement agreed upon in this instrument was carried into effect, and defendant Gamble had the benefit of the same. The suit for nearly $200,000, brought by Mr. Burt against him in the Saginaw circuit, was on February-18, 1891, discontinued; Messrs. Tarsney & Weadock acting-as attorneys for defendant Gamble in the matter of this suit and this settlement.
* On June 10, 1891, this bill and a lis pendens were filed against Gamble and wife. On September 16, 1891, John J. Campbell assigned to defendant Tarsney a judgment-against Gamble for $978.82, rendered in the Saginaw circuit court on February 10, 1891. Execution issued on. September 17, 1891, and levy was made September 18, 1891, upon all the right, title, and interest of Gamble in the land in question. September 22, 1891, a sheriff's deed was made to Tarsney; reciting the proceedings in the suit by the Home National Bank, including sale, etc., the recovery and assignment of the Campbell judgment and the levy of execution, etc., the filing with the register of deeds of a certified copy of the Campbell judgment, under which Tarsney claimed the right to purchase the.interest of the original purchaser, a copy of the assignment of such judgment, together with the necessary affidavits, and that he had paid to the register the amount bid upon the sale upon the first judgment.
Henry Gamble answered the bill, and proofs were taken in open court. On October 19, 1891, the court filed a written opinion, holding that before the bill was filed the Home National Bank had acquired all of the legal title of Gamble, subject to his right of redemption, and was, therefore, a necessary party to the proceedings; also, that it appeared that defendant Tarsney had, since the filing of the bill, taken a sheriff's deed pursuant to the statute, which clothed him with all the legal title of Gamble, and subrogated him to his rights. The statute referred to is How. Stat. §§ 6126, 6140. Leave was given to amend the-bill and bring in these parties, which appears to have been done. Some other amendments were made, but they need not be discussed. From a decree in favor of the complainant, defendant Tarsney alone appeals.
It appears to be conceded that the deeds and defeasances should be considered mortgages. The items included in complainant's bill are: e
1. The note of $6,939.73, given June 29, 1889, compris- . ing (a) the old note of $2,139.77, antedating both mortgages; (5) the $4,000 note, mentioned in the first mortgage; (c) the $800 note, given after the execution of both mortgages.
2. The amount of $2,500, paid by Burt on June 23, 1888.
By the terms of the first mortgage it secured (1) the payment of $4,000 within 90 days; (2) “all obligations that the said Burt may assume or become liable for by reason of any paper indorsements or obligations he may make for or at the request of the said Henry Gamble.” It further provided that, “upon the payment of such sum or sums for which the said Burt shall or may become liable within the time- aforesaid, the said Burt agrees to reconvey,” etc. This latter provision makes it clear that this mortgage was security for such.claims only, in addition to the $4,000 item, as were based upon indorsements, etc., within 90 days. The items of $2,139.77 and $800 were not covered, because not incurred within the period of' 90 days after the execution of the defeasance. The $2; 500 item arose from a payment by Burt of an outstanding obligation of Gamble, and did not come within the language: “ All obligations that the said Burt may assume" or become liable for by reason of any paper indorsements or obligations he may make,” etc. It follows that the $4,000 item only was secured by this mortgage.
■The second mortgage was broader, and clearly- covered .•all indorsements theretofore or subsequently made, for the benefit of Gamble. This, by its terms, covered all of the claims except that for $2,500. It was not broad enough to cover that.
It is contended by the appellant that when Gamble made a note payable to Burt for $6,939.73, being the aggregate of the three items, viz., $2,139.77, $4,000, and $800, it extinguished these mortgages; or, if it did not, that when the paper was indorsed by Burt, and taken by the bank, the security went with it to the bank, and was extinguished by the recovery of a judgment based thereon, and sale on execution; that by such purchase the bank became possessed of all of Gamble’s interest in the land, subject to the rights of redemption of parties interested. We think otherwise. The evidence shows that Burt was not at that time Gamble’s creditor as to these notes, but that the bank was. Burt Avas an accommodation indorser merely; the new note being made payable to him for Gamble’s use and benefit. He might never become such creditor, and in fact did not as to such note until the bank required payment of him upon his indorsement, by which payment a right of action upon his mortgages first accrued.
We think that the assignment of the rights of the bank under this judgment did not affect the mortgages. There is nothing to indicate such intention, and to so hold would be inequitable. In such case the law does not require that the doctrine of merger be applied. Dutton v. Ives, 5 Mich. 515; Cooper v. Bigly, 13 Id. 463; Snyder v. Snyder, 6 Id. 470; Tower v. Divine, 37 Id. 443; Jackson v. Evans, 44 Id. 510; Ann Arbor Savings Bank v. Webb, 56 Id. 377; Powell v. Smith, 30 Id. 451; Hurst v. Beaver, 50 Id. 612; Baker v. Clark, 52 Id. 22.
The effect of what has been said is to determine that, of the amount paid by Burt to the bank, $4,000 is secured by the first mortgage, and all is secured by the second, by virtue of the terms of the mortgages, exclusive of any effect of the agreement made subsequently by Burt and Gamble. The $2,500 debt was not included in the amount secured by either. On February 13, 1891, the complainant and Gamble made a settlement of some matters of difference between them. This settlement, which has been mentioned herein, was evidenced by a writing signed by the parties, wherein it was explicitly agreed that both the $2,500 item and the claim which had been assigned by the bank to Burt should be secured by these two mortgages. It is true that the writing mentions but one mortgage, but both descriptions are mentioned, which shows that both were intended. As between Burt and Gamble, this paper was valid; but it is attacked upon the ground that the transfer to Burt of the interest purchased by the bank at the execution sale did not convey to him all of the interest of the bank, because it was not authorized by the board of directors of the bank, and was not a sealed instrument. But we think one of two things was true: The bank received payment from Burt, and the bank's claim upon the property passed to Burt, or it was extinguished. It certainly could not retain both the money and the land. In the latter case there was nothing left to be the subject of redemption. In the former, the interests were all vested in Burt, Gamble, and La Velle, who had a contract of purchase. We have no doubt that Burt'succeeded to the bank's interest, however. But, in either event, Burt and Gamble were in a situation to make the contract referred to, which we think binding upon them.
As already stated, this contract was made on February 13, 1891. Defendant Tarsney testifies that he was ignorant of this agreement, and claims that it is void as to him, and that his redemption and the sheriff's deed vests the title in him, discharged of the mortgages, or, at most, subject to said mortgages according to their terms, unaffected by the agreement of February 13. The bill and lis pendens were filed June 10, 1891, some three months before defend ant purchased the Campbell judgment. It was constructive notice of the pendency of these proceedings. Defendant asserts that this was not notice to him of any rights of the complainant under the writing of February 13, which was first made a part of the bill by amendment upon the hearing. The bill, as originally drawn, made claim of the amount for which the decree below was rendered, alleging that these mortgages were security for it, and we think this was sufficient notice. Heim v. Ellis, 49 Mich. 243; 1 Beach, Mod. Eq. Jur. § 374, and note; Bellamy v. Sabine, 1 De Gex & J. 566.
We find no error in the proceedings, and the decree of the circuit court in chancery will be affirmed.
McGrath, C. J., Grant .and Montgomery, JJ., concurred. Long, J., did not sit. | [
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Hooker, J.
The complainant, a married woman, filed her bill of complaint against the defendant to set aside a deed made and delivered by her some • years before. Her claim, as made upon the trial, was that her husband was indebted to the firm of Bittner, Wickert & Co., of which the defendant was a member, to the amount of about $3,000, and that she deeded the premises in controversy to defendant, Wickert, subject to a mortgage of $2,000, upon his promise to cancel the debt and surrender the notes representing such indebtedness, upon which notes she appears to have been an accommodation indorser. It appears from the testimony that, at the time the deed was delivered, the defendant indorsed $1,000 upon the larger of the two notes. Some two years later an action was commenced by defendant’s firm upon these notes against complainant’s husband and herself, which resulted in a judgment for the amount of the notes (less the indorsement of $1,000) against the former, the action failing as against complainant, upon the ground that she was a surety for her husband, and that the notes were invalid as to her. She thereupon began this suit.
■ An examination of the bill shows that she nowhere avers that the defendant made the promise to her that seems to have been relied upon at the trial. She alleges that she gave the deed without receiving any consideration for it. from the defendant or any one else, and proceeds to give what she “ alleges to be the facts/3 viz.: That about the date of the deed her husband came to her, and said that the defendant held an old note against him to the amount, of over $1,500, and interest from the date of its execution, some time in 1884, and that the defendant had agreed that if he would pay to the defendant the sum of $1,000, or procure a deed from the complainant to said defendant of the premises in controversy, he (the defendant) “ would cancel and discharge all of Ms claim to said old note, and old indebtedness which had accrued prior to the running account then existing between himself and said defendant, meaning the old note referred to.33 Thereupon she executed the deed, fully believing that defendant would carry out the promise to cancel the said note of her husband, provided she conveyed to him the said lot, and which her husband had informed her, as aforesaid, the said defendant had agreed to do. She then alleges that, after the deed was executed and delivered to her husband, she inquired, after he had taken away the deed to the defendant, whether he had received the note or notes in return, and he informed her that the defendant claimed that the notes were in the bank, and he would get them and deliver them to him; that she frequently spoke to her husband about the matter, who informed her fahat he had endeavored frequently to get the notes from the defendant, but was unable to get them. She then alleges that the defendant sued her husband for the full amount of the notes, less a pretended indorsement of $1,000, which defendant claimed to be made in consideration of the deed in question, and continues: “Thus your oratrix is informed and believes, and therefore charges the fact to be, that the said defendant disregarded his said promise to her husband, based upon which promise, so stated to her, she executed the said deed.” After alleging the judgment against her husband, the bill alleges that the deed was without consideration and void, as complainant was a married woman, and it was made at the request and earnest solicitation of her husband, without consideration.
It will be observed that the bill states that the deed was given upon the statement of the husband that an old note of $1,500 was involved, and that it was the interest of Wickert in the same that was to be canceled. The case is sought to be proved by the testimony of complainant and her husband. Eoyce, the notary, was sworn, but could remember nothing about the transaction.' Mr. Le May says that the debt was owing to the firm of Bittner, Wickert & Co., and that Wickert agreed to cancel and surrender the notes if he would procure the deed. He does not relate the representations he made to his wife, but gives a conversation with Wickert, substantially as alleged in the bill. He says that he spoke to his wife about it, and she said she would sign the deed if Wickert would cancel the notes. He also says that Wickert was present when the deed was signed, -in which his wife corroborates him. He mentions two other witnesses to that transaction, but they were not called. He says that on the way to the house he spoke to Mr. Wickert about the notes, and he said he would get them the next day for him, and that, after he got to the house, his wife asked him (Le May) if he had the notes, and he told her no, that Wickert would get them the next day; and the following conversation occurred:
“ Q. Was Mr. Wickert there when the conversation took place? ,
“A. Yes, sir.
“ Q. Eight in the same room?
“A\ Yes, sir.
“ Q. And he heard it?
“A. Yes, sir; I presume he did.
“ Q. What did Mrs. Le May say to that?
“A. She said it wasn’t a very safe way of doing business. I should have got the notes before I gave him the deed.
“ Q. What did you say, if anything?
“A. I says, fI guess he’s all right. He will hand them back tomorrow; they will be no account to him.’
“ Q. Was that before she signed and delivered the deed to him?
“A. Yes, sir; it was before she signed it.
“ Q. What did she say when you made that remark to her?
“A. She didn’t like to sign it; and I told her there was no danger; she might sign it.
“ Q. Did she then sign it with that statement?
“A. Yes, sir; she signed the deed.
“ Q. Did Mr. Wickert, at that time, make any objection to the statement that he was to deliver up those notes in consideration of that deed? »
“A. He made that agreement with me.
“ Q. Did he say that wasn’t the agreement, when you told your wife it was?
“A. No, no; he never said it wasn’t our agreement; no, no.
” Q. Did Mr. Wickert say anything when she asked about these notes?
“A. He said he would hand them back to me the next day.
“ Q. Did he get the deed at that time from your wife to this lot?
“A. Yes, sir.
“ Q. What was done the next day, — did you have any talk about the notes the next day?
“A. Yes, sir; I went in there, and asked him for those notes. He said he didn’t have them. He said when he would go to the.bank he would get them.
“ Q. Did you ask him, after that, about the notes?
“A. A good many different times.
“ Q. Did he give them to you?
“A. He never did, sir.
“ Q. What reason did he give for not giving them up?
“A. He gave me no reason at all; he kept putting it off, and at last I got tired of asking him.”
Mrs. Le May’s version of the transaction .is somewhat .different.
“Q. How came you to make this deed?
“A. Mr. Le May asked me to do it, and Mr. Wickert would cancel his debt and notes that he had against - him if I signed it.
“Mr. Power: I object to this answer of the witness, covering a conversation between herself and husband in the absence of Mr. Wickert.
“ Q. Now, at the time you made this deed, was there anything said by you, or any person, about these notes, when Mr. Wickert was there?
“A. I spoke to Mr. Le May—
“Mr. Power: I object, unless it appears that Mr. Wickert was present.
“ Q. She testified that he was.
“A. Yes; I asked Mr. Le May if he had brought those notes.
“ Q. What did Mr. Le May say?
“A. He said that he would go down with Mr. Wickert, and he would get them; that he promised to give them to him.
“ Q. Did he state why he hadn’t got them at that time?
“A. No, sir; he didn’t; not at that time.
“ Q. What did he say, if anything?
“A. Well, I said that was no way of doing business, but still I signed the contract.
“ Q. You signed the contract relying upon the promise to deliver those notes and cancel the indebtedness?
“A. Yes, sir.
“Mr. Power: I object to the last question as leading.-
“ Q. Did you receive, yourself, any pay or consideration for making that deed, except what you have now stated?
“A. No, sir; not a, penny.
“ Q. Now, after this deed was made, to whom was it delivered?
“A. Mr. Wickert.
“Q. There at the house?
“A. Yes, sir.
“ Q. When you asked for those notes, where were they, ‘ if Mr. Le May had got them? Didn’t Mr. Wickert say anything himself?
“A. Not that I remember. I was not addressing myself to Mr. Wickert; I merely asked Mr. Le May. I don’t remember whether Mr. Wickert said anything or not.
“Mr. Power: You say you signed this deed for lot 8, block 64, of the .city of Escanaba, at the request of your husband, Joseph Le May?
“A. Yes, sir.
“ Q. And for his benefit, in order to have his business get along?
“A. Yes, sir; that is, have the old indebtedness, — for the old standing debt.
“ Q. You didn't have any talk with Mr. Wickert about this matter?
“A. No, sir; I never had any talk with him.
s}:*;}:**?}::}:****
ci Q. What was your object in signing the deed to Mr. Wickert?
“A. Merely to help Mr. Le May out, under his solicitations.
“ Q. To cancel his indebtedness?
“A. Yes, sir.
“ Q. Had you any other motive or inducement?
“A. No, sir.
“ Q. Did you yourself owe Bittner, Wickert & Co. anything?
“A. No, sir.”
The defendant contradicted Le May in all essential particulars, except as to what occurred at the house when the deed was signed. His attention does not appear to have been called to that. Hpon his failure to contradict Le May in this respect the circuit judge appears to place much stress, but we cannot consider it .controlling. Mr. Le May's testimony does not impress us as being entitled to greater credence than that of the defendant. His wife says that she does not remember that Wickert said anything when she spoke of the notes; that she was not addressing him, but merely asked Mr. Le May. She seems not to have said anything to Mr. Wickert afterwards about it, though Le May says he asked him frequently. So long as matters ran along, and he was permitted to purchase goods upon credit, these parties did not insist upon the notes. When sued, we may reasonably suppose that Le -May would have made this defense if he had any faith in it. Perhaps he did, but, if so, the jury evidently did not credit it. It may be truly said that neither his failure to make such defense nor the disregard of it by the jury could hind the complainant, but it tends to corroborate our opinion of the value of Le May’s testimony. After looking at all the evidence, we think that the complainant has failed to prove her case as alleged, and that she yielded to the importunities of her husband to aid him. The-property was earned by him with such assistance as the wife rendered. It was placed in her name, but she admits his interest in it. At the time of the making of the deed he was insolvent, and this property, worth about $2,500 to $2,800, had a mortgage amounting-to about $2,100 upon it; and he was still, and for some time after, dependent upon Bittner, Wickert & Co. for credit. It was competent for the complainant to deed her property to whom she chose, and though it was as security for, or in payment of, her husband’s debt, the deed was valid.
The decree of the circuit court will be reversed, and complainant’s bill dismissed, with costs of both courts.
The other Justices concurred. | [
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Hooker, C. J.
The complainant’s husband, being in the employ of the Minor Lumber Company, embezzled about $10,000 of the employer’s money. The fact that he was the embezzler óf a small amount was accidentally discovered by a member of the company, and Miller admitted the fact, and confessed to other instances. The services of one O’Neil, a private detective, were secured, and Miller was kept in his custody. He was not arrested, and remained with O’Neil hy consent, but it was undoubtedly understood by all that he was not to be suffered to depart. Miller gave up over $4,000 of the money, which left a shortage of about $6,000. He then proposed to go to Battle Creek, and have his wife deed to the company a house and lot in Alpena, the title to which was in her. The deed was drawn, and he was permitted to go with O’Neil to. Battle Creek, where they found complainant at the sanitarium, in bed, having just undergone a surgical operation. She reluctantly gave the deed. The parties differ as to what occurred there, but we are satisfied that, while no express promise was given by the defendants that Miller should not be prosecuted, it was so understood by complainant, and but for that understanding the deed would not have been given, and that, had not the deed been given, Miller would have been prosecuted. Subsequently complainant returned to her home in Alpena with the intention of surrendering the premises to the defendants, and opened negotiations with them for the sale of her furniture, which was in the house, in the course of which she said that she had been informed that she could have the deed set aside. The defendants finally agreed to purchase the furniture for $1,100, on condition that she would execute a quitclaim deed of the premises, which she was informed would cut off any right she might have in the same. She stated that she did' not intend to try to get the property back, and signed the deed and bill of sale, and received $1,100 in cash from the defendants. This second deed ivas made in April, the first having been made in February. Up to this time Miller had not returned to Alpena, but did so a short time after the second deed was given. Mrs. Miller remained in the house for a time, and then yielded the possession. It was subsequently discovered that Miller was guilty of still further embezzlements, for which he was arrested at the instance of the defendants. What occurred in relation to these proceedings is not very clear, but some •correspondence passed between Mrs. Miller and Mr. Kelley as follows:
“Alpena, October 4, 1887.
“Mrs. W. J. Miller,
“Dear Madam: I have succeeded in getting the paper yon wanted signed by Mr. Maltz, but not in time to take same to the train this morning, as was understood by myself and A. N. S.. therefore I will retain same until he, A. N. S., returns, and then have it signed and delivered to you in accordance with our understanding.
“Yours respectfully, B. J. Kelley."
“As individuals or as members of the Minor Lumber Co., we will not pursue or press the prosecution instituted against W. J. Miller at Alpena, and will put nothing in his way to prevent him from earning an honest living.
[Signed] . “ George L. Maltz.
“A. N. Spratt.
“Dated October 3, 1887."
It appears in evidence that this was not the first time that Miller had been guilty of a crime of this character, ■and that his wife on several occasions had come to his-relief. A year or two after the deed was given she commenced these proceedings.
We have no hesitation in saying that the transaction, at Battle Creek was such as to render the deed there taken voidable on the ground of duress. The complainant was -sick and excited. All her previous experiences may be supposed to have prepared her mind for such charges, and it is manifest that she would cling to her husband, and was prepared to aid him in his trouble under the pressure of his importunities, which were supported by the presence of the officer who had him in his custody. We are also convinced that the deed would not have been executed at that time had she not expected that he would not be prosecuted. There is little doubt that the officer so understood it, and perhaps as little of the intention of the defendants to forbear, if the deed were procured, though they at all times refused to promise anything of the kind. , While no promise was made, this understanding contributed to influence the complainant.
The second deed was given under different circumstances. Miller evidently understood that he was unsafe in the State, and sojourned for a time in Canada, where the complainant was with him for a couple of weeks or more. We must believe that she was aware that he had no promise of immunity when she returned to Alpena, and she went there to carry out her promise by disposing of her furniture and yielding possession of the premises under the Battle Creek deed. She importuned the defendants to buy it, and, by language which seems to have partaken of the nature of a threat, informed them that she was advised that the deed could be set aside. Apparently this was. intended to make them more willing to purchase the furniture, and it seems to have had that effect; for Spratt at once told her that, in view of that, he should require a new deed if he bought the furniture; and therg can be no doubt that he would have refused to buy it had he not supposed that the company was to hold the real estate. The subject was mentioned between herself and Kelley, being introduced by her, when she was informed that she might be able to set aside the deed, but that, if she made the sale of the furniture, and gave a new deed, as required by the company, it would preclude a recovery of the premises. She made haste to close the transaction, and obtained the money for the furniture.. We think that she thereby parted with any right that she had in the premises. The Battle Creek deed was not absolutely void, but at. most voidable, at her option. By this last transaction she saw fit to ratify it, and elected to consider it valid-. Whatever want of free agency there may have been in her act at Battle Creek, there was • no duress or coercion at. Alpena. Her husband was then in safety, being out of the .country. She had time and opportunity to consider the matter. She was advised of her rights, and knew what she could do, and deliberately chose the course taken. She was no novice in such matters, and may have felt that . it was but just to the company to surrender to it property which was perhaps paid for with its money. The letter sent by Maltz and Spratt, dated October 3, in which they stated that they would not press the present prosecution, is not shown to have been connected with the sale of the furniture in April. It does not appear how the letter was procured. It appears that the defendants never promised not to prosecute for the things then discovered; that on all occasions they refused to make such a promise. They had the right to receive money from Miller in payment, and from his wife or any other person by Miller’s procurement, so long as they did not transgress the law by promising, either expressly or by implication, not to prosecute.
The decree .will be affirmed.
The other Justices concurred. | [
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Grant, J.
This action was brought in 'justice’s court, under Act No. 229, Laws of 1887, to enforce a lien for work and labor in loading and skidding a lot of pine and hemlock logs.
Plaintiff was an infant, and process was issued without the appointment of a next friend. Defendant company insists that the court obtained no jurisdiction, because section 6864, How. Stat., provides that no process shall issue in favor of an infant plaintiff until the next friend shall be appointed. There are two answers To this objection :
a — Defendant made no objection for this reason in the justice’s court. Pistorius v. Swarthout, 67 Mich. 186; Peterson v. Fowler, 76 Id, 258.
1) — The justice, upon the motion of the plaintiff, appointed a next friend, which appointment was valid. Parks v. Goodwin, 1 Doug. 56; Gray v. Willcox, 56 Mich. 58.
It is next objected that the description of the property in the writ of attachment was insufficient to confer jurisdiction. It was described as—
“About 200,000 feet of pine and hemlock lumber, and also about 300 cords of slabs.”
This was clearly insufficient, under the authority of Stevens v. Osman, 1 Mich. 92. Unless this decision has been overruled by subsequent cases, the defendant must prevail.
In Farwell v. Fox, 18 Mich. 169, the Court held that the rule in Stevens v. Osman was needlessly stringent.
In Sexton v. McDowd, 38 Mich. 148, it was held that the description in a writ of replevin is sufficient, if, with outside help> the officer executing it can identify the property. The doctrine in Farwell v. Fox and Sexton v. McDowd was approved in Pingree v. Steere, 68 Mich. 204.
In Paterson, v. Parsell, 38 Mich. 607, the writ was held void for failure to describe the property. The writ in that case contained no description, but the affidavit annexed thereto did. The affidavit in that case required by the statute is not required to describe the property, but is to refer to the writ for a description. Motion was made to amend the writ, but the court held there was nothing to amend, and quashed the proceedings.
The strict rule laid down in Stevens v. Osman is practically overruled by the subsequent decisions above cited. We see no reason for 'applying a more stringent rule in attachment cases brought under the log-lien act than in cases of replevin. Under this act the plaintiff is required to annex to the writ an affidavit stating- the amount due him for work and labor performed upon the property “mentioned in the annexed writ.” Under the authority of Paterson v. Parsell, the affidavit cannot be resorted to for a description of the property. Neither in the statement of lien, nor in the writ of attachment, nor in the affidavit attached thereto, is the plaintiff expressly required to state who is the owner of the logs. But the officer executing the writ is required to serve a copy of the attachment “upon the owner of said products, or any of them, their proper agent or attorney, if such owner, agent, or attorney be known to him and residing in this State.” One reason for the decision in the replevin cases above cited is that -the property is in the possession of the defendant, and unlawfully detained by him. This reason, of course, cannot apply to the present case, for the owner may or may’ not be in the actual possession of the property. In the present case, the principal defendant, Howe, was the’ contractor, and plaintiff worked for him, and not for-the owner of the property. It is true that there is nothing upon the face of the writ to indicate that the property belonged to the defendant company. But, when service was made upon it, it was thereby notified that the lumber was seized as its property, and that plaintiff claimed a lien thereon for work done thereon under a contract with the principal defendant. Under the authorities, and particularly under that of Sexton v. McDowd, we are constrained to hold that the description was sufficient.
It was essential for the plaintiff to show the date of the last day’s work done by him. On his direct examination, he testified that this was the 30th of April. On cross-examination he testified that “he knew it was that' day, because he had got it down in a book, or on a piece of paper, rather, in his pocket.” Witness then, evidently, seafched Ms pockets to find the paper, but could not. He said he had had it that morning. He further testified that the book in which he kept the dates got torn, and he drew it off on another piece of paper, and that he had burned the book. On redirect examination he was permitted, under objection, to state that the paper was a copy of his time book, and that it showed each day that he worked, and what he Avorked at; that he had had the paper that' day, since dinner, at his attorney’s (Mr. De Long’s) office. Mr. De Long then stated that the paper might be in his office, and Avas requested by the defendant’s attorney to produce it. This was not done, and the witness was permitted to state its contents. This Avas error, which is not cured by the fact that plaintiff had testified, Avithout the aid of the memorandum, to the date. The paper was not admissible at all, and in any event was the best evidence of what it contained, and its contents could not be shown without due proof of its loss.
The introduction of the affidavit, writ, and return of the officer was error. They were immaterial, and had no bearing upon any question to be submitted to the jury. If they were in any respect irregular, advantage thereof could only be taken by a motion to quash. The judgment would probably not be reversed for this error alone, but it is proper to determine it in the event of a new trial.
Judgment reversed, and neAV trial ordered.
The other Justices concurred.
The property was described as “ a quantity of com, consisting-of about 100 bushels, and a quantity of rye, consisting of about 200 bushels.” | [
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Grant, J.
This is a suit upon a bond of indemnity executed by the defendants to the plaintiffs. The case was tried before the court without a jury, and the facts found by the court are as follows:
1. Lee Avas sheriff, and Yan Wagner his deputy, at the j time of the execution of the bond.
2. Defendants the MaxAvells and Prevost Avere copartners, under the name of S. A. Maxwell & Co., and defendant Sessions was surety upon the bond. .
3. April 6, 1888, James W. Tufts & Co. commenced a suit by attachment against one Willis M. Elder, a merchant, whose stock of goods consisted of groceries, crockery, and drugs. The sheriff, by his deputy, levied upon all the goods of this stock by virtue of said Avrit of attachment. The goods Avere appraised at $2,206.
4. May 23, 1888, one Charlotte Showman, claiming these goods as mortgagee, brought suit against plaintiffs in this case in trover for the conversion thereof. This suit resulted in a verdict and judgment for her on January 8, 1891, for $3,862.51, including costs.
5. On the 5th day of November, 1888, judgment was rendered in favor of Tufts & Co. against Elder for $219.81. Execution Avas issued November 12, 1888, and levy was made upon the goods so attached. ■
6. February 8, 1888, the defendants Maxwell & Co. brought suit in the circuit court for the county of Ionia against Elder, and recovered judgment on May 11, 1888, for $555.56, and costs. October 19, 1888, execution was issued upon this judgment, and placed in the hands of the sheriff October 20. The sheriff levied upon the goods, subject to the attachment lien of Tufts & Co., which goods Avere then in the hands of the sheriff by virtue of the writ of attachment.
7. December 3, 1888, sale of the goods was commenced at public auction, after due notice, under and by virtue of the execution in favor of Tufts & Co. The sale was continued from day to day until sufficient was realized to pay the judgment, costs, and \ expenses. The amount realized and necessary therefor was $757. The balance of said goods was then sold under and by virtue of the execution in favor of the defendants Maxwell & Oo. The amount received for- such balance was $295. The goods were first offered in parcels, but, no bids being made, they were sold in bulk to the defendants Maxwell & Co.
8. Before the levy of the execution in favor of Maxwell & Co., they gave to the,sheriff and his deputy an indemnity bond in the sum of $1,200. The condition of this bond was—
“That if the above-bounden S. A. Maxwell & Co. shall well and truly save, keep, and bear harmless, and indemnify the said Hiram N. Lee and his said deputy, and all and .every person and persons aiding and assisting him in the premises, of and from all harm, let, trouble, damages, costs, suits, actions, judgments, and executions that shall or may at any time arise, come, or be brought against him, them, or any of them, as well for the levying and making sale under and by virtue of such execution of all or any goods and chattels which he or they shall or may judge to belong to the said Willis M. Elder or Charlotte Showman, as well as in entering any shop, store, building, or other premises, for the taking of any such goods and chattels, then this obligation to be void; else to remain in full force and virtue.”
9. At the time levy was made under the execution of Maxwell & Co., they knew that suit had been commenced by Charlotte Showman, as mortgagee, against the said sheriff and his deputy, to recover for the value of the goods so levied upon, and they were informed of the claim of said Charlotte Showman under her mortgage.
10. Charlotte Showman made demand for the remainder of the goods after the Tufts execution had been satisfied, but the officer refused to deliver them, stating that he held them by virtue of the execution in favor of Maxwell & Co.
.11. The execution of Maxwell & Co. was levied on, the goods after the attachment by Tufts & Co. was levied, and before the execution was levied by Tufts & Co.
CONCLUSION OR LAW:
That plaintiffs were entitled to judgment for $295, and interest thereon from December 15, 1888, at 6 per cent, per annum.
Plaintiffs’ positions are summarized as follows:
' 1. Defendants were original trespassers.
2. They were joint trespassers with the officers and Tufts & Co.
3. They became trespassers by ratification and adoption. They are therefore liable for the full amount of the bond.
4. If they are not liable for the full amount of the bond, they are at least Hable in the proportion that the amount of goods purchased by them bore to the whole amount realized from the sale, as that amount is to the whole amount paid by the plaintiffs to Mrs. Showman.
Plaintiffs, under the direction of Tufts & Co., levied upon an entire stock of merchandise, which, 'according to the inventory and appraisal made under the direction of the plaintiffs, was worth 10 times the amount of the claim sued upon, and which, according to the verdict of the jury in the Showman case, was worth 15 times that amount. ' If the goods had not been mortgaged, clearly plaintiffs would not have been justified in seizing them all. If Tufts & Co. and plaintiffs had recognized the validity of the mortgage, the levy on the entire stock would have been proper. Quaere, was it justifiable when the levy was made in hostility to the mortgage, the validity of which was contested? In that case a levy upon sufficient to satisfy the claim would afford a creditor ample protection.
Upon the levy of the attachment, Mrs. Showman notified plaintiffs of her mortgage, demanded possession of the goods, which plaintiffs refused, -and thereupon brought suit in trover for their value. It does not appear whether plaintiffs demanded a bond of indemnity from Tufts & Co. Common prudence would have caused them to demand a bond in order to protect themselves. ' If they did, the injustice of resorting to the bond given by defendants on their levy more than six months afterwards, to recover for the acts of plaintiffs under the direction of Tufts & Co., is apparent. If they chose to proceed without a bond from Tufts & Co., the injustice is equally apparent. In either case defendants should not be held liable beyond the value of the property sold on their execution, unless some inexorable rule of law stands in the way.
Plaintiffs, presumably under the direction of Tufts & Co., retained the goods, under their attachment levy, until the costs amounted to more than twice their claim. Undoubtedly this stock of goods comprised the entire, amount of Elder’s property subject to execution, for the presumption is reasonable that the defendants, with knowledge of the mortgage and of the prior levy, would not have directed a levy upon this property could they have found other. This is not a case where creditors combine in a joint cause against a debtor or his mortgagee. There was no concert of action shown between Tufts & Co. and Maxwell & Co. Their claims and interests were entirely distinct, and continued distinct throughout. When plaintiffs received the execution upon defendants’ judgment against. Elder, the property had been in their possession for six months under the attachment. There was no change of possession. All plaintiffs did was to indorse their levy upon the execution, and their original possession continued. The conversion by plaintiffs had become complete, and Mrs. Showman had brought her action against them for such conversion. Plaintiffs advertised and sold the goods under the Tufts & Co. execution, and then advertised and sold the remainder under defendants’ execution. We do hot think, under these circumstances, that there is any reasonable ground for holding ‘that Maxwell & Co. became either original trespassers under the act of Tufts & Co., or joint trespassers with them, or trespassers by ratification. The fundamental error in the plaintiffs’ argument lies in the assumption that the attachment of Tufts & Co. was for the advantage of Maxwell & Co., whose levy was subsequent and subject to the first. The contrary is the fact, for it is manifest that Maxwell & Co. would have been in a better position if Tufts & Co. had not attached.
In Smith v. Johnson, 95 Ala. 482, Johnson sued out a writ of attachment subsequently to other writs, and gave a bond of indemnity. The property was claimed by one Allen. The levy was indorsed on Johnson’s writ of attachment, which was all that was done in the present case. Subsequently, Johnson discharged the property from the levy, Allen agreeing to relinquish all claim against Johnson because of the levy of his writ. Smith, the sheriff, sued Johnson under his indemnity bond. It was held that he could recover only nominal damages, and that the bond did not cover the acts of the sheriff under previous attachments.
In Posthoff v. Schreiber, 47 Hun, 593, it was held that, as each of the creditors proceeded separately, for his own benefit, exclusive of the others, they were not joint wrongdoers, but. each levy and seizure was a separate and distinct act from all the others. The court, in that case, distinguish it from Posthoff v. Bauendahl, 43 Hun, 570, and hold that there is no conflict between the two cases.
In Davidson v. Dallas, 8 Cal. 227, 254, one Gilson attached a steam tug. • Dallas, on the same day, sued out a subsequent attachment. Separate bonds of indemnity were given to the sheriff. Davidson, claiming the property, sued the sheriff for the seizure of the vessel, recovering a judgment for $85,000. The sheriff assigned the bond of indemnity, given by Dallas, to Davidson, who brought suit upon it. The court'held:
1. If the attachments had been sustained, and the whole proceeds of the property absorbed by the debt of Gilson, then he would have been solely responsible to the sheriff for the entire liability incurred by him to Davidson.
2. If Gilson’s levy had been defeated, and that of Dallas •sustained, then Dallas would have been solely responsible for the entire amount.
3. If both attachments had been sustained, and the property sold for more than sufficient to pay Gilson, then. Gilson .and Dallas would have been responsible in proportion to the amounts paid to each by the sheriff.
“4. If both the attachments had been defeated by Meiggs [the debtor], or if the suits of Gorham [the sheriff] against the indemnitors had been commenced before the determination of the attachment suits against Meiggs, then the separate responsibility of Gilson and Dallas would have been in proportion to the amounts of their respective attachments, except in case the whole amount for which both attachments were levied had exceeded the value of the property as settled in the suit against the sheriff, in which case the prior attaching creditor would have been responsible to the amount of his attachment, and the subsequent attaching creditor for the remainder.”
It. will be observed that that case differs from the present one, in that the property levied upon was a single article, while, in the present case, the property consisted of several articles, and the plaintiffs, in the absence of a mortgage, would not have been justified in levying upon more than sufficient to satisfy the creditors’ claim. A rehearing was granted in that case, resulting in the. affirmance of the first opinion. The case again came before the court in 15 Cal. 75, when there had been an entire change in the court. The soundness of the previous opanion was doubted, and dissatisfaction with it expressed hy the learned judges, in order to obviate the idea of an implied approval. Notwithstanding the doubt thus cast upon the former opinion, we think it has much force, reason, and justice to commend it.
Sutherland, in his work on Damages (§ 763), after discussing the ■ liability of creditors as joint trespassers, says:
“But such liability does not extend to cases in which creditors act independently of each other, and in which valid liens have been obtained, equal in amount to the value of the property, and judgments pursuant thereto have been recovered.”
The importance of the question may justify us in a state ment, as concise as possible, of some of the authorities cited and relied upon by the plaintiffs.
In Lovejoy v. Murray, 3 Wall. 1, no question of the-priority of creditors was involved. Lovejoy brought suit, against one Pratt, attaching personal property, assumed to be the property of Pratt, but claimed by Murray. After the levy of the attachment, and ascertaining that Murray claimed the property, the sheriff declined to proceed further without a bond of indemnity. The court did not decide whether the giving of the bond made the party liable ab initio, but held that it was equivalent to a personal interference in the course of the proceeding, and that the plaintiff in the attachment suit thus assumed the' direction and control of the sheriff’s future action, and thereby became responsible for the continuance of the wrongful possession, and for the sale and conversion of the goods.
In Cox v. Hall, 18 Vt. 191, it was held that.the owner of property may maintain trespass against an officer and a second attaching creditor jointly, and that the previous attachment did not so far divest plaintiff of his possession that he could not maintain trespass, if such previous attachment was unlawful.
In Root v. Chandler, 10 Wend. 110, the creditors of one Rice, of whom Chandler was one, had a consultation a few hours after the first levy was made, and directed the constable to detain the property. In such case all became original and joint trespassers.
In Walker v. Wonderlick, 33 Neb. 504, Wonderlick, a constable, seized the plaintiff’s property under two writs of attachment, issued simultaneously, against one S. T. Walker. The suit was brought against the officer and the attaching' creditors jointly, and the question arose upon demurrer to plaintiff’s petition, and it was held that all were .joint wrong-doers.
In Roberts v. Safe-Deposit Co., 123 N. Y. 57, the action was for the alleged negligence of defendant, a bailee for hire, in surrendering plaintiff's, property to a third party ■on a search warrant. Defendant sought to defend upon the ground that, after the property had been so seized, it was levied upon by attachments against the plaintiff. All the attachment suits against her had been discontinued, ■except one, and, as to that, she offered to show that it •was fraudulent. It was held that such a defense could not ■avail.
The principal case relied on is Watmough v. Francis, 7 Penn. St. 206, 219. In that case the goods were levied upon and sold by virtue of two writs of ft. fa., of which fhe defendant Francis' was one, but was subsequent to another. Francis had given a bond of indemnity. The property sold realized sufficient only to pay the prior execution, so that Francis received no benefit from his levy and sale. He was held liable upon his bond. Much stress-is laid, in the opinion, upon the fact that the goods were sacrificed at the sale, and that it was Francis' own fault that he received nothing in payment of his debt, for it was his duty, as well as interest, to see that the goods brought a fair price. Both writs were in the hands of the ¡sheriff, and he was about to proceed to sell on them, when he was notified that the goods did not belong to the defendant in the execution. He refused to proceed without a bond. Francis gave one, and the sheriff proceeded to sell at the instance of Francis. His liability was held to turn upon the intention of the parties to the bond. The court said:
“What, then, was the meaning of the parties to this /contract? To my mind it is clear, when we consider all ;the attending circumstances, that one had the right to ask, .■and the other was bound to concede, that by the word .f execute' the writ was meant levying and selling the goods, ■paying the proceeds according to law, viz., into court or to the first execution creditor, and applying the surplus, if any, to the payment of the plaintiff’s debt. These duties the sheriff performed to the letter. In nothing has he failed. He levied on the plaintiff’s writ, sold on his writ, and paid the money to the persons legally entitled, as he was commanded. It is not the less a levy and sale on the plaintiff’s writ that he had another writ in his hands, for, as we have seen, he levies and sells on all the writs.”
We do not wish to be understood as indorsing the rule of that case, but it is unnecessary to dissent from it, in this case, on account of the difference in the facts, which have, perhaps, already been sufficiently pointed out. Plaintiffs, in the present case, did not sell under one writ, for the benefit of the other, but sold under each separately. The entire conduct of plaintiffs, Mrs. Showman, Tufts & Co., and of Maxwell & Co. showed that Maxwell & Co.’s claim was considered as entirely distinct and separate from that of Tufts & Co. No such intention as existed in that case can be gathered from the facts of this.
We think it clear that these authorities are inapplicable to the present case, .and do not control it. The conversion by plaintiffs became complete upon Mrs. Showman’s demand upon them, and she had brought her suit for such conversion nearly five months before the levy of Maxwell & Co. That suit was determined by the facts as they then, existed, unaffected by the subsequent levy. It follows that Maxwell & Co. were liable only for the value of the goods sold under their execution. The only evidence of value was the amount realized upon the sale.
Judgment must therefore be affirmed.
The other Justices concurred.
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Fead, C. J.
The defendant First State Bank foreclosed its mortgage in chancery, making the original trustees, their successors and plaintiff parties to the suit, originally or upon petition and order adding them as parties, and had decree of foreclosure. In my opinion, this decree is res judicata of the present suit and the decree dismissing the bill is affirmed, with costs.
North, Wiest, Butzel, and Bushnell, JJ., concurred with Fbad, C. J. | [
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Grant, J.
The bill in this case is filed to foreclose a lien for materials furnished to defendant McGibbon- for repairing and making additions to her house, under Act No. 179, Laws of 1891. It is conceded that the premises are a homestead, and the title thereto is in Mrs. McGibbon. The contract rests in parol, and is claimed by complainant to have been made through Mr. McGibbon, defendant's husband, acting as her agent. It is unnecessary to determine the merits of this controversy. The defendant had entered into a written contract with one Bennett to furnish the materials and do the work, and denies that she made any contract with complainant. Complainant was a witness to this contract, and had full ’ knowledge of its contents, but testified that he refused to trust Bennett, sold the materials-directly to her, and that she, promised to pay for'them'.' The circuit judge found with complainant on this question of fact, and rendered a decree for him for $60.86, the full amount claimed.
The facts about the homestead are undisputed, and must control the case in favor of defendant. It is ruled by Hammond v. Wells, 45 Mich. 11. In that case there was. a written contract, with specifications, signed by the defendant, Mrs. Wells, but the premises on which the house was to be erected were not described. There could have been no dispute in that case about the identification of the’land.' The only difference between that case and the present is-that in the former the terms were in writing, while in the latter they were verbal. In neither was there any writing signed by the wife, purporting to affect the homestead; nor was there shown any intention to create a charge upon the real estate. Under the Constitution, the only process by which a homestead can be sold is one issued by virtue of the foreclosure of a “mortgage lawfully obtained.” Any statute which should create a mortgage by parol upon a homestead would be in violation of the Constitution. As was said in Hammond v. Wells, “the effect of the mechanic’s lien law is to create a species of statute mortgage.” The homestead right given by the Constitution cannot be .divested except by the deliberate act of the owner reduced to writing, and signed by him or her, showing an intention to create a lien. But the statute in question is silent in regard to homesteads. Were, the contract in writing, and the premises described, but it contained nothing to indicate an intention to create thereby a lien upon the homestead, the statute would not apply.
Decree reversed, and bill dismissed, with the costs of both courts.
Hooker, C. J., Long and Montgomery, JJ., concurred. McGrath, J., did not sit. | [
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Potter, J.
Appeal from an award in condemnation arising out of the widening of Michigan avenue, Detroit.
Proceedings were instituted November 19, 1930. December 23, 1935, a jury was duly impaneled and sworn and the case subsequently adjourned to January 6, 1936. From January 6 to January 14, 1936, the jury was to view the premises. The trial occupied many days from January 20, 1936, until October 13,1936, when the jury, having reached their verdict, were discharged.
The F. W. Woolworth Company was the holder of premises under a lease executed January 30, 1924, expiring April 30, 1944, under which it was to pay a yearly rental of $5,400, payable in equal monthly payments of $450 each. There was a provision in the lease for the suspension of rent in case of the total destruction of the building. The F. W. Woolworth Company was also the holder of premises under a lease dated September 21, 1923, expiring April 30, 1944, under which it was to pay rent at the rate of $7,500 a year, in equal monthly payments of $625 on the first of each current month. This lease was similar to the one above mentioned. About these leases there is no controversy. Neither lease made provi sion for a reduction of rent in case of condemnation of the leased property.
The Ansonia Company, a Michigan corporation, became the holder of the title to the premises, and appeals from the award of damages, alleging (1) the jury erred in making an award to the F. W. Woolworth Company for damages to its leasehold; (2) in assessing damages to the leasehold, the jury erred in accepting as a basis of computation the allowance of diminished value of leasehold in direct proportion to the diminution of the area of the land; (3) in assessing the value of said leasehold, the jury erred in failing to reduce the award to the lessee to the present value of the losses it would in the future sustain; (4) in assessing the value of said leasehold, the jury erred in awarding the lessee damage to the leasehold commencing with the date of the verdict rather than the date of the actual deprivation of the full use of the leasehold by the lessee; and (5) the court erred in denying the Ansonia Company’s motion for a new trial.
Evidence was offered by the city of Detroit that the title in fee simple to parcel 68, comprising 100.1 front feet and 113 feet depth, was in the Ansonia Company, and that F. W. Woolworth Company occupied 60.1 front feet, to the full depth of said land, as lessee. Evidence of the value of the buildings upon said land was offered by the city showing the first buildings occupied by the Landau Company on 40 feet of land had a present reconstruction cost of $24,150.86, which was depreciated 40 per cent, leaving its present value $14,490.57; that the value of the building remaining after the taking was $4,881.67, and the cost of rehabilitating the same $2,400, giving the value of the building when finally rehabilitated $7,281.67. Deducting the latter sum from $14,490.57 left a balance of $7,208.90. To ascertain the damage, there was added to the latter figure the cost of rehabilitation of $2,400, leaving the damages to the Landau store on parcel 68 as $9,608.90. The second building occupied by the F. W. Woolworth Company had a frontage of 60.1 feet and a reconstruction cost of the part taken of $15,475.18, which was depreciated 40 per cent., which gave a present value of $9,285.11; that the reconstruction cost of the part remaining was $11,987.56, which, depreciated 40 per cent., left its present value $7,192.56. This gave the present value of these buildings as $16,477.67, and the cost of rehabilitating the remainder $2,700, which would bring the value of the remainder as rehabilitated to $9,892.56. And taking the present value of the front, as $16,477.67 and deducting the value after rehabilitation of $9,892.56 left $6,585.11, to which was added the cost of rehabilitation of $2,700, making the total damage to this building of $9,285.11.
Combining the value thus arrived at for the two buildings, we have the following figures:
Value of Landau parcel before taking.....$14,490.57 Value of Woolworth parcel before taking.. 16,477.67
$30,968.24
Value of Landau parcel after taking......$ 7,281.67
Value of Woolworth parcel after taking... 9,892.56
$17,174.23
Total value before tailing...............$30,968.24
Less total value after taking............. 17,174.23
Difference..............................$13,794.01
Add cost of rehabilitation............... 5,100.00
$18,894.01
The city offered as a witness Mr. Edward, J. Strata who testified in relation to the value of the land involved, a summary of whose testimony was as follows :
Present value of land..................$118,504.38
Present value of building.............. 30,968.24
Total value of land and building........$149,472.62
Value of land remaining after taking... .$ 80,172.08 Value of building remaining after taking 17,174.23
Total value of remainder.'.............$ 97,346.31
Value of the land and buildings taken is. .$ 52,126.31 Cost of rehabilitation.................. 5,100.00
Total damage from taking.............$ 57,226.31
Subsequently upon presentation of the case to the jury, counsel for the city agreed the cost of rehabilitation was deducted from the damages and the figures given by the city’s witnesses as to the damage to the building should be increased by the cost of rehabilitation in each instance. This would give the damages to the Landau building, according to the city’s figures, $12,008.90; and the damages to the Woolworth building $11,985.11. .
On June 17, 1936, in the absence of the Ansonia Company, the Woolworth Company introduced testimony as to the damages to its leasehold interest. Such witnesses were cross-examined by counsel for the city. And on June 18,1936, in the absence of the Woolworth Company, the Ansonia Company offered testimony indicating its land damage to be $80,600; that the damage from the taking would be $76,000; and that the total damage to both buildings was $38,832.76.
The jury returned a verdict fixing the damages to the land at $41,477 and the damage to the buildings at $26,843, making a total award of damages and award for the land and buildings of $68,320. Of this total, the jury awarded to the Woolworth Company for damage to its leasehold the sum of $46,246.50. This award was confirmed by the court and the real controversy is between the Woolworth Company and the Ansonia Company as to the division of the award of damages and compensation.
Private property shall not be taken 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. Const. 1908, art. 13, § 1.
“When private property is taken for the use or benefit of the public, the necessity for using such property and the just compensation to be made therefor, except when to be made by the State, shall be ascertained by a jury of twelve freeholders residing in the vicinity of such property, or by not less than three commissioners appointed by a court of record, as shall be prescribed by law. ’ ’ Const. 1908, art. 13, §!2.
Both the necessity for the tailing and the compensation, so far as the controversy here is concerned, was to be ascertained by a jury of 12 freeholders residing in the vicinity of such property.
Proceedings of the kind here under consideration are not strictly judicial, but inquisitorial. The determination of necessity and the award of compensation in case necessity is found is not to be made by the court, but by a jury of 12 freeholders residing in the vicinity of such property. Such jury when impaneled according to law is the constitutional tribunal for the trial of controversies arising’ out of the exercise of the power of eminent domain. Condemnation proceedings are inquisitorial in their nature. The constitutional tribunal for the determination of the issues is a jury, the judge, after the jury is impaneled, acting in an advisory capacity. In re Widening of South Dix Avenue, 262 Mich. 233.
From the very nature of the constitutional provisions, the jury is judge both of the law. and facts. Chicago, D. & C. G. T. J. R. Co. v. Jacobs, 225 Mich. 677; In re Widening Harper Avenue, 237 Mich. 684; In re Owen and Memorial Paris in City of Detroit, 244 Mich. 377 (61 A. L. R. 190); In re Widening of Bagley Avenue, 248 Mich. 1; In re Board of Education of City of Grand Rapids, 249 Mich. 550.
The question of necessity is for the determination of the jury. Village of Hamtramck v. Simons, 201 Mich. 458; City of Detroit v. Judge of Recorder’s Court, 253 Mich. 6; City of Allegan v. Vonasek, 261 Mich. 16.
The proceedings, being inquisitorial in nature, the jury is not limited to the testimony introduced by the respective parties, but may view the premises. In re Widening of Bagley Avenue, supra.
The jury may listen to the opinion of witnesses, their estimates of value and their methods of arriving at the conclusion expressed. But the jury is not bound by the testimony alone. They are to exercise their judgment, based not only upon the testimony but their own knowledge gained from a view of the premises. They are not to be interfered with or dictated to by the judge. The jury are judges both of the law and facts. Toledo, A. A. & G. T. R. Co. v. Dunlap, 47 Mich. 456; Port Huron & South-Western R. Co. v. Voorheis, 50 Mich. 506; Grand Rapids, L. & D. R. Co. v. Chesebro, 74 Mich. 466; In re Widening of Bagley Avenue, supra.
Many technical rules have been promulgated for determining value, none of which is important. The determination of value is not a matter of formulas or artificial rules, but of sound judgment and discretion based upon a consideration of all the relevant facts in a particular case. It is in the final analysis only the effect of the relative human desire for compared objects expressed in terms of a common denominator. The Minnesota Rate Cases (Simpson v. Shepard), 230 U. S. 352 (33 Sup. Ct. 729, 48 L. R. A. [N. S.] 1151, Ann. Cas. 1916A, 18); International Harvester Co. v. Kentucky, 234 U. S. 216 (34 Sup. Ct. 853); Block v. Hirsh, 256 U. S. 135 (41 Sup. Ct. 458, 16 A. L. R. 165); In re Widening of Bagley Avenue, supra.
Where only part of a parcel is taken, just compensation is to be determined by the amount which the value of the parcel from which it is taken is diminished. The value of the part actually taken is allowed as direct compensation, but the decreased value of the residue of the parcel on account of the use made of the land taken is also allowable as compensation. Port Huron & South-Western R. Co. v. Voorheis, supra; Fitzsimons & Galvin, Inc., v. Rogers, 243 Mich. 649; Johnstone v. Railway Co., 245 Mich. 65 (67 A. L. R. 373); In re Widening of Bagley Avenue, supra. Where only a part of a building is taken, if the remaining portion is of great value and there can be advantageous reconstruction, rearrangement and new adjustment, then the cost of altering the building and all consequential damages because of such alteration, plus the value of the part taken, furnishes the rule for measuring the compensation to be awarded. If what re mains after a part is taken is worthless, the jury should allow the whole value of the building. If not, they should consider what may be done with the remainder and the cost of doing it. City of Detroit v. Loula, 227 Mich. 189; In re Widening of Bagley Avenue, supra.
With respect to the damages awarded in condemnation proceedings, it is not within the province of the court to review the question further than to see that the finding is supported by the evidence. Boyne City, G. & A. R. Co. v. Anderson, 146 Mich. 328 (8 L. R. A. [N. S.] 306, 10 Ann. Cas. 283, 117 Am. St. Rep. 642). If the jury’s award is within the evidence, it may not be disturbed on appeal. In re Petition of the City of Detroit for a Park Site, 227 Mich. 132. The proceedings before this court to review an award on condemnation is in the nature of certiorari and the award of damages should not be disturbed unless palpably contrary to the evidence. Flint & P. M. R. Co. v. Railroad Co., 64 Mich¡ 350.
A tenant for years is the owner of an estate and is entitled to compensation for an injury done in' taking his property for public use. In general terms, the proper measure of' damages is the depreciation in the market value of the property caused by the condemnation. Two questions arise: What was the value of the property — that is, the value of the tenant’s íeasehold unaffected by the injury? And, what was the value at the time of the surrender as affected by the injury? The difference is the true measure of the compensation. Des Moines Wet Wash Laundry v. City of Des Moines, 197 Iowa, 1082 (198 N. W. 486, 34 A. L. R. 1517). In strict terms, the tenant’s recovery is restricted to the value of the unexpired term. It is the value of the unexpired term of the lease, less the rental reserve. In the ascertainment of this value, it is impossible to specify all of the elements that enter into such a problem. All of them cannot be anticipated. Many of them are developed in the course of the litigation consequent upon the exercise of the right of eminent domain. They will vary with the character of the property affected and the uses to which it is applied. Des Moines Wet Wash Laundry v. City of Des Moines, supra. It will frequently happen that market value would be an unsatisfactory test of the value to a tenant of the leasehold interest. Standing alone, it is naturally no test at all and oftentimes it would have no market value. Des Moines Wet Wash Laundry v. City of Des Moines, supra.
“The question is, how to apply the rule for the estimation of damages occasioned by the condemnation of a leasehold interest. The decisions are not harmonious. Ordinarily, market value is the criterion, but in certain cases it is not the true standard by which to determine the value. It is difficult, if not impossible, to lay down a rule of universal application as to what may be considered as elements of damage, as the equities of the parties must more or less depend upon the particular facts and circumstances of each case. * * * This is particularly true as applied to a leasehold. Value must be determined by a consideration of the uses to which the property is adapted. All circumstances naturally affecting this value are open to consideration. * * *
“Every legitimate use to which it may be applied may be considered. Rental and use may be shown as tending to prove value. * * *
‘ ‘An established trade or business connected with a location clearly enhances the value of a leasehold interest, and just compensation contemplates this fact.” Des Moines Wet Wash Laundry v. City of Des Moines, supra.
In Pierson v. H. R. Leonard Furniture Co., 268 Mich. 507 (98 A. L. R. 244) it is said:
“The measure of a lessee’s damages for the condemnation of his leasehold interest is said to he the market value of the leasehold condemned, that is, the difference between the rental value of the remainder of the term and the rent reserved in the lease, or the actual value of the leasehold, where there is no market value. See In re DeLancey Street, 120 App. Div. 700 (105 N. Y. Supp. 779); Kafka v. Davidson, 135 Minn. 389 (160 N. W. 1021); Corrigan v. City of Chicago, 144 Ill. 537 (33 N. E. 746, 21 L. R. A. 212); Bales v. Railroad Co., 92 Kan. 771 (141 Pac. 1009, L. R. A. 1916C, 1090); Clarkson v. Skidmore, 46 N. Y. 297; Larkin v. Misland, 100 N. Y. 212 (3 N. E. 79); In re William and Anthony Streets, 19 Wend. (N. Y.) 678; Mayor and City Council of Baltimore v. Gamse & Bros., 132 Md. 290 (104 Atl. 429); Mason v. City of Nashville, 155 Tenn. 256 (291 S.W. 1074).”
“Where a leasehold estate is taken, it is well settled that the measure of damages is the fair market value- of the estate so taken; or, if only a part thereof be talien, the measure of damages is the difference between the fair market value of the entire leasehold estate and the fair market value of the portion thereof not taken. ’ ’ Kafka v. Davidson, supra.
1‘ The value to the owner of a lease, when he is paying the full rental value of the premises as rent, is the right to remain in undisturbed possession to the end of the term, and it is sometimes held that the loss resulting from the deprivation of this right is the proper measure of the tenant’s compensation. In such case the value may depend upon the use made and the nature of the tenant’s business.” 1 Nichols on Eminent Domain (2d Ed.), p. 715,
The jury in a condemnation case is, as in other cases, the judge of the credibility of the witnesses and the truthfulness of their statements. The jurors hear the testimony, examine the property, consider the estimates placed upon the damages which should be awarded to the respective parties, and make a final determination. Like any other tribunal which is created for the determination of disputed questions of fact, their determination is final and this court may not disturb it so long as it is within the fair range of the testimony and of the facts which the jury may have learned in their examination of the property.
We cannot say from the record in this case, though we might not agree with the award made or the division thereof between the respective parties in interest, that the jury violated the law or misused the powers delegated to them by the Constitution in the determination of this case.
Award affirmed, with costs.
Fead, C. J., and North, Wiest, Bushnell, Sharpe, and Chandler, JJ., concurred. Butzel, J., did not sit. | [
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Potter, J.
Plaintiff recovered a judgment against defendants for damages resulting from injuries caused by being struck by an automobile driven by defendant Brower. Prom such judgment, defendants appeal.
Appellants contend six questions are involved. In order to hold defendant Eding, it was necessary that plaintiff prove the automobile in question was loaned to an incompetent, careless or reckless driver, knowing such driver was incompetent, careless or reckless and likely to 'cause injury to others. Defendant Brower was employed in the garage of defendant Eding and was driving the automobile in question at the time of the injury. The case was tried upon the theory defendant Eding permitted defendant Brower, who was an incompetent, careless and reckless driver, to drive the automobile in question at the time of the injury. There was testimony Brower had been in other automobile accidents. In order for defendant Eding to be held liable, it was necessary the testimony show that Brower was negligent in connection with these accidents, or some of them, and that defendant Eding knew it — that is, that the defendant Eding knew Brower was careless and negligent. There was testimony to show Brower was not negligent in connection with any one of the four accidents in which he had been involved, and that Eding had no knowledge of his incompetence as an operator of an automobile. If this were all the testimony in the case, defendant Eding could not be held liable. But this case has been once before this court (Tanis v. Eding, 274 Mich. 288), and other phases of it were before the court in Tanis v. Eding, 265 Mich. 94, and Kimber v. Eding, 262 Mich. 670. When it was last before the court, it was said, p. 294:
“Right of recovery against Eding is asserted on the theory that he, having control of the automobile by which plaintiff was struck and knowing that defendant Brower was an incompetent, careless and reckless driver, negligently permitted Brower to operate the automobile and plaintiff ’s injuries resulted. Defendant Eding’s motion for a directed verdict and his motion for judgment non obstante veredicto were made on the following grounds: (1) that defendant Eding was not at the time of the accident the owner of the automobile, (2) that there was no proof that defendant Brower was an incompetent, careless or reckless driver, and (3) that there was no proof that defendant Eding knew that Brower was an incompetent, careless or reckless driver. The first reason assigned is not tenable because it is not controlling. Notwithstanding defendant Eding was not the owner of the car, plaintiff, under her pleadings, might still maintain this cause of action against him. See our former decision in the instant case in Tanis v. Eding, 265 Mich. 94. The second and third reasons assigned in support of the motion involve determination of issues of fact as to which there was conflicting testimony. There were two witnesses who testified that subsequent to the accident Eding admitted that he permitted his employee Brower to drive this auto, and also that Brower was a reckless fellow or driver, and there was other testimony from which it might be reasonably inferred that Eding had knowledge of such fact at the time he permitted Brower to drive the automobile by which plaintiff was struck. The trial court properly denied Eding’s motion for a directed verdict and his subsequent motion for judgment non obstante veredicto.”
The testimony involved here is substantially the same as that involved in the record in Tanis v. Eding, 274 Mich. 288. The opinion in that case made the law of this case. We think there was no error in submitting the question of Eding’s liability to the jury.
Defendants assign error upon the rulings of the trial court excluding certain testimony. We have examined the testimony offered in the record in connection therewith. We find no reversible error in the trial court’s exclusion of the testimony.
Error is assigned upon the court’s refusal to give certain of defendants’ requests to charge. The trial court clearly stated what was necessary to prove and establish and what the jury must find in order for plaintiff to recover. There was no error in refusing to give the request to charge complained of. The court substantially covered all the material elements in the case in his charge to the jury.
It is said the court erred in charging1 the jury that if Mr. Brower believed he had a right to take the automobile, that his belief would show that Mr. Eding consented to Mr. Brower driving the automobile. The difficulty with this assignment of error is that it is not based upon the charge of the court. The trial court charged that in determining whether or not the automobile was driven with the consent and knowledge of the defendant Eding,
“You are at liberty to take into consideration all of the sworn testimony in the case and all of the inferences which may logically be drawn from such testimony. Your verdict is to be based not necessarily upon the number of ivitnesses who testified, but upon that testimony which convinces you of its reasonableness and its truthfulness. You, as jurors, are not required to believe anything you would not believe as men, and you have the right and it is your duty to use your common sense and judgment in weighing the testimony and determining the truth thereof. # * * And if yon also believe, by a preponderance of the evidence in addition to the foregoing, that on the occasion when the accident occurred the automobile was being driven by Brower and that Brower was a negligent and careless driver, and that Eding knew that, and by consent, either express or implied, permitted him to drive the car, then your verdict should also be against Eding.'
“If you find from the evidence that at the time Brower took this ear from the garage, Eding had by his act or conduct given his consent to the operation of this automobile by Brower, if he knew or had good reason to know Brower was a careless or reckless driver, then your verdict, if you find under the instruction I have given you, against Brower, should also be against Eding.
“Ordinarily, consent means the agreement, concurrence of the minds or wills. The acts are the result of coming into harmony or accord. A complete consent means that consent which is manifested by signs and actions or facts, or by inaction or silence, which raises a presumption that the consent has been given. It means such consent as is manifested by signs, actions or facts, or by inaction or silence, so that the person that takes a car may reasonably believe he has a right to take it and that it was all right with the person who owned it.”
While the belief of Brower does not show consent on the part of Eding, the action or inaction and the circumstances surrounding the relationship between Brower and Eding and the admissions of Eding that he permitted his employee, Brower, to drive this automobile were sufficient to warrant the charge of the trial court. We find no reversible error in the charge, nor any prejudicial conduct upon the part of counsel for plaintiff.
As pointed out in Tanis v. Eding, 274 Mich. 288, the important issues in this case were questions of fact. They were submitted to a jury under a proper charge and we may not interfere with the conclusions arrived at by the jury as triers of the facts.
Judgment affirmed, with costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Chandler, JJ., concurred. | [
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Fead, C. J.
This is a bill to reform an insurance policy as to the name of the mortgagee in the loss payable clause and for money judgment against defendant. Plaintiffs had decree. The money judgment against defendant included damages for loss of personal property and for barn. No complaint is made as to reformation or the personal property damage, but the issue here is as to the fire loss on the barn.
The issue revolves around the policy provision, 3 Comp. Laws 1929, § 12572:
“Unless otherwise provided by agreement in writing added hereto this company shall not be liable for loss or damage occurring
“(a) while the insured shall have any other contract of insurance, unknown to this company or its agent, on property covered by this policy.”
Plaintiffs McAlpine had their bam insured in the State Mutual Rodded Fire Insurance Company for $2,000. The company reduced the insurance to $1,500, and plaintiffs wanted more coverage. They called on Fred Wright, agent of defendant. After investigation, Wright took an application from the McAlpines covering the barn at $2,000, in which application, in answer to a question, Wright wrote that there was no other insurance on the barn although he knew it was covered by the Mutual policy. He warned the McAlpines that their application might not be accepted by defendant and they should not cancel the Mutual policy until his company should issue one. Although they disagree as to details, it is clear, both from the pleadings and testimony, that when Wright delivered the policy he and the McAlpines agreed that the latter would cancel the Mutual policy at once. McAlpine said he forgot to cancel it, although he cancelled some other Mutual policies. Defendant’s policy was dated May 7, 1932. The fire occurred June 23, 1932. The Mutual policy had not been cancelled and Wright had received no notice or information in regard thereto after he delivered defendant’s policy.
, Defendant relies on the terms of the contract and claims the policy was inoperative because neither it nor its agent knew of the other insurance at the time of the loss. Plaintiffs claim that the provision against the other insurance was not breached because (1) Wright knew of the Mutual policy, and (2) the Mutual policy had been suspended and was not in effect at' the time of the loss.
Wright was guilty of no misrepresentation or concealment which would excuse the McAlpines from the contract consequences of their failure to cancel the Mutual policy. The express agreement for its cancellation negatives an inference that Wright’s knowledge of the Mutual policy would be deemed to continue and bind defendant for a longer time than was reasonably necessary to cancel it. Wright testified that a company rule allowed usually 5 to 10 days for purposes of cancellation. As the McAlpines made no effort to cancel, and there was no showing nor claim that sufficient time had not elapsed to permit the cancellation, the policy clause was operative and prevents recovery, unless the Mutual policy was not in force at the time of the fire.
The plaintiffs’ present claim that the Mutual policy had been suspended was not presented in circuit court. No testimony was taken to show the status of the policy and in their pleadings they raised no such issue but, on the contrary, admitted that the Mutual policy was in force and that they were carrying double insurance. Defendant had the right to rely upon the pleadings and, as the point of suspension of the Mutual policy was not raised therein nor considered upon the hearing, it cannot now be urged.
Decree will be modified to eliminate the money judgment against defendant for the damage to the barn, with costs to defendant.
North, Wiest, Butzel, Btjshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Bushnell, J.
Plaintiff’s decedent, according to the findings of the department of labor and industry, suffered an accidental injury on April 17,1935, which caused his death by a “generalized septicemia and pulmonary embolism” on July 30, 1935. Decedent was a switchman in defendant’s employ; it is claimed that while he was making a coupling between two railroad freight cars, a piece of cold slag fell from one of the cars and struck his right great toe. A few days later, he reported to defendant’s first aid hospital, where his toe was treated and a memorandum made of his version of the nature of the accident and injury, which also contained notations by the company’s doctors as to treatment given. He was later interviewed by an employee of defendant’s compensation department, and a question and answer statement was made; this was not signed by decedent.
There were no eyewitnesses to the accident. The only proofs offered were the testimony of the doctors who treated Kelly, and testimony of the employees who rendered first aid and interviewed the decedent. The latter were called for cross-examination by plaintiff. The statements and memoranda were received over defendant’s objection. No report of the accident was made to the department of labor and industry by the employer.
The department affirmed an award of $18 a week for 300 weeks and ordered defendant to pay medical fees amounting to $388.04 and funeral expenses of $200.
Appellant says:
‘ ‘ The argument as to whether or not deceased sustained an accidental injury thus boils down to the question of ‘ whether memorandums made by defendant’s employees of a conversation with a person, since deceased, which memorandums were made without knowledge of the truth or falsity of that person’s statements and where no opportunity to verify such statements has been had, are competent evidence of the facts related.’ ”
Appellee agrees that appellant “fairly well states the question involved” and adds that, if the memoranda referred to are not admissible in evidence, plaintiff has failed to make out a case. Plaintiff argues that the statements and memoranda made by defendant are admissible under the authority of Fitzgerald v. Lozier Motor Co., 187 Mich. 660, and Act No. 15, Pub. Acts 1935 (amending 3 Comp. Laws 1929, § 14207) construed in connection with 2 Comp. Laws 1929, § 8456.
Act No. 15, Pub. Acts 1935 reads in part:
“Sec. 53. Any writing or record whether in the form of an entry in a book or otherwise, made as a memorandum of any act, transaction, occurrence or event shall be admissible in evidence in all trials, hearings and proceedings in any cause or suit in any court, or before any officer, arbitrators, or referees, in proof of said act, transaction, occurrence or event if it was made in the regular course of any business and it was the regular course of such business to make such memorandum or record at the time of such act, transaction, occurrence or event or within a reasonable time thereafter. All other circumstances of the making of such writing or record including lack of personal knowledge by the entrant or maker, may be shown to affect its weight but not its admissibility. The term- ‘business’ shall include business, profession, occupation and calling of every kind. The lack of an entry regarding any act, transaction, occurrence or event in any writing or record so proved may be received as evidence that no such act, transaction, occurrence or event did, in fact, take place. Any photostatic or photographic reproduction of any such writing or record shall be admissible. in evidence in any such trial, hearing or proceeding by order of the court, made within its discretion, upon motion with notice of not less than four days. All circumstances of the making of such photostatic or photographic reproduction may be shown upon such trial, hearing or proceeding to affect the weight but not the admissibility of such evidence. ’ ’
We held in Gile v. Hudnutt, 279 Mich. 358, that hospital records come within the purview of this act and that it was error on the part of the trial court to exclude them.
The principal authorities cited in the briefs are Reck v. Whittlesberger, 181 Mich. 463, Ann. Cas. 1916C, 771; Fitzgerald v. Lozier Motor Co., supra; and Ginsberg v. Burroughs Adding Machine Co., 204 Mich. 130. In the latter, we discussed the former cases and stated their limitations in the following language:
“It must be patent that the employer or the officer of a manufacturing company, who makes the report to the board,* rarely, if ever, witnesses the accident. He obtains his information from others. It comes to him second hand. If, after making his investigation, he concludes that the accident happened in a certain way and so reports, it may be regarded as an admission, and therefore, some evidence before the board for its consideration. This was the situation in the Beck Case and this was the holding.
“In the Fitzgerald Case, the foreman, whose duty it was to report accidents to his superior, reported that deceased scratched his right hand on manifold on top of the thumb joint. He had received his information from the injured employee. But he was the authorized agent of the company to investigate and make such report; by adopting the claim of the employee as his own report and version of the accident, the employee’s claim became and was his report. Following the Rede Case, it was held receivable as an admission and together with other evidence was held to be sufficient to support the finding.
“These two cases hold that where the employer or his authorized agent, whose duty it is to make report of accidents, who have the opportunity to investigate, makes a report as to the accident, such report is receivable as an admission, and as an admission may be sufficient to establish a prima facie case. It is unimportant how the employer procures his information. It may all be hearsay. It may come through several hands, from different sources; but when he or his authorized agent reports that the accident happened in a certain way, the report stating that it happened that way is an admission and receivable as such. These cases go no further. They do not make the claim of the injured employee as to how the accident happened evidence of the facts. It is only by the adoption of that claim by the employer or his authorized agent that it becomes an admission and receivable as such. In the instant case we have no such report, nor was Dr. McDonnell the agent of defendant for the purpose of making such report. The board was in error in holding that such hearsay evidence was receivable as competent evidence of the facts.”
In the appeal before us, the defendant did not adopt the claim of the deceased and report to the department that the accident happened as stated, therefore, such hearsay evidence was not admissible under the Ginsberg Case.
Has the rule in Ginsberg v. Burroughs Adding Machine Co., supra, been affected by the passage of Act No. 15, Pub. Acts 1935 and our holding in Gile v. Hudnutt, supra? If so, are the memoranda in question admissible and are they sufficient to support the findings and award of the department of labor and industry? The opinion of the department, dated June 8, 1936, does not mention the act and appellant’s brief does not discuss this question which is squarely raised by appellee’s brief.
Section 8456 reads in part:
“Every employer shall hereafter keep a record of all injuries, fatal or otherwise, received by his employees in the course of their employment. ’ ’
Act No. 15, Pub. Acts 1935 says:
“All other circumstances of the making of such writing or record including lack of personal knowledge by the entrant or maker, may be shown to affect its weight but not its admissibility.”
The memoranda contains the following:
“10. Date of accident — 4/17/35.
“11. Hour of accident- — 1:00 p. m.
“12. Nature and cause of injury — Contusion distal and right great toe slightly infected. Employee states that he was making a coupling between two cars; that a piece of cold slag fell off and struck his right great toe. * # *
“39. Other remarks — Employee states he paid no attention to it and did not report it but it got to paining him and he went to his own doctor and to comply with safety rules he then reported to main hospital.”
Exhibit 6 contains the following:
“ Q. What is your trouble?
“A. An infection in my big toe on my right foot.
“Q. When did you first notice the infection?
“A. About three days after I got hurt.
“Q. When did you get hurt?
“ A. On the 17th of April, 1935.
“Q. How did you get hurt?
“A. I was mailing a coupling’ on track 251, two loaded slag cars. When I made the coupling, a piece of slag fell from one of the cars and fell on my foot. I couldn’t get out of the way of it.
“Q. What caused the slag to fall off the car?
“A. Well, from making the coupling. It was cold slag which had run over the side of the car and the jerk when they coupled caused it to fall over and hit me on the toe. ’ ’
Defendant’s “record of surgical case,” exhibit 7, contains the following:
“Diagnosis — Cont. dist. end. rt. gt. toe, slightly infected.
“History — Injured April 17th, claims piece of slag fell on toe. Was frozen 5 years ago. ’ ’
We said in Gile v. Hudnutt, supra:
“No person has a vested right in a rule of evidence. Maki v. Mohawk Mining Co., 176 Mich. 497. This rule does not, however, permit a change of such a nature as substantially to deprive a party of the right to present his side of a case and thus deny due process. ’ ’
In that same case, we quoted the following from Board of Commissioners of Excise of the City of Auburn v. Merchant, 103 N. Y. 143 (8 N. E. 484, 57 Am. Rep. 705):
“A law which would practically shut out the evidence of a party, and thus deny him the opportunity for a trial, would substantially deprive him of due process of law. ’ ’
And we further said:
“We withhold discussion of specific questions which may arise but are not presented to us in the instant case.”
Defendant is compelled by law, section 8156, to keep a record of all injuries, but an employer should not be compelled to make a “hearsay” record and then be confronted with these unverified records as proofs of an accident. Act No. 15, is not a part of the contractual nature of the workmen’s compensation law. Although it is expressed in broad language, it must be construed within constitutional limitations. If properly applied, its provisions do not violate the due process clause of the Constitution.
The act does not make that proof which is not proof; nor does it purport to change the rules of competency or relevancy with respect to recorded facts. It merely provides a method of proof of an admissible “act, transaction, occurrence or event.”
In the instant case, the ultimate fact which the employer’s records actually show is not the fact of an accident, but rather the employee’s claim that an accident occurred. The records are admissible as proof of notice to the employer of a claim of accident, but they are not evidence of the fact that an accident occurred.
So far as is shown in the record before us, if each person concerned with the making of the entries, investigations and reports were called to the witness stand, the testimony of such parties could be nothing more than hearsay, so far as the actual facts of the claimed accident are concerned. The statute should not be construed in a manner that would make the reports and records admissible when the oral testimony of the same facts would be inadmissible.
It is essential to the proper administration of the workmen’s compensation law that records of “all injuries” be kept by “every employer” operating under the compensation act, and we are unwilling to adopt a construction of Act No. 15, that would alter the well understood purpose of section 8456. We adhere to the language of the Ginsberg Case, supra, which we have heretofore quoted. The statements and memoranda quoted in this record are not evidence of the fact of an accident. Ayling v. City of Detroit, 275 Mich. 338.
The rule in Ginsberg v. Burroughs Adding Machine Co., supra, has not been affected by the passage of Act No. 15, Pub. Acts 1935, and our holding in Gile v. Hudnutt, supra.
There being no proof of an accident, the award is vacated, with costs to appellant.
Fead, C. J., and North, Wiest, Butzel, Sharpe, Potter, and Chandler, JJ., concurred.
The powers and duties of the industrial accident board, here referred to, have been transferred to the department of labor and industry and the board abolished. See 2 Comp. Laws 1929, § 8312.— Reporter.
The powers and duties of the industrial accident board, here referred to, have been transferred to the department of labor and industry and the board abolished. See 2 Comp. Laws 1929, § 8312.— Reporter. | [
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Butzel, J.
Plaintiff claimed that on December 27, 1934, she bought from a market in Detroit a can of plum pudding, which was prepared, canned and marketed by defendant; that in accordance with the printed label upon the can, she boiled the closed can for an hour; that then she attempted to open it and after giving one twist on the top of the can with the key attached to its side, the contents of the can exploded in her face and covered the kitchen walls and ceiling; that she was severely injured; that the particles of plum pudding were embedded in her flesh and remained there for a few days before they could he removed; that she “suffered great aches and pains; * * * that she was prevented from performing her household duties; that she could not attend any social affairs, right at the holiday season.”
Her brother, a physician, who was a supper guest at the time the alleged explosion took place, testified that when he heard it, it was not like an explosion, but -was more like a hissing noise or sound. On January 22,1935, less than a month after the alleged accident, he signed a report in which he answered “yes” to the question, “Was the recovery prompt?” and stated that his sister told him that she was opening the can when it burst and spattered over her.
The can was produced in court and showed that the top was smoothly cut off and there was a slight indentation on one side but no outward bulging. The physical evidence indicated that there was no “explosion” as alleged by plaintiff. Plaintiff claimed the top was removed sometime after the “explosion” occurred, hut the top was not produced at the trial. The declaration sounded purely in tort. The trial judge, upon seeing the can, stated that he could not see any sign of explosion, and thereupon plaintiff’s attorney stated that it would be hard to show any explosion by the can. The judge further stated that an action in tort would not lie. Plaintiff’s attorney thereupon stated that he wanted to proceed with the case both on the theories of implied warranty and negligence and that he would rely upon the allegations in his declaration. He, however, made no motion to amend and without it, he was not entitled to go to the jury on the theory of breach of implied warranty. The judge directed a verdict for defendant.
Plaintiff relies largely upon the case of Hertzler v. Manshum, 228 Mich. 416, wherein, however, there were counts covering both negligence and implied warranty. The propriety of including both theories in separate counts in such cases was commented upon by this court in Cheli v. Cudahy Brothers Co., 267 Mich. 690.
The case of Hertzler v. Manshum, supra, apparently nullified the distinction between a claim against the manufacturer in tort and one on implied warranty. The case arose out of the sale of flour which contained poison and it was stated in the opinion that it was a case of a foreign, poisonous substance in the flour and the opinion was confined to such a case. The rule of the Hertder Case is justified when the proofs adequately show a foreign, injurious or poisonous substance in the food article. See Jackson Coca Cola Bottling Co. v. Chapman, 106 Miss. 864 (64 South. 791), where a dead mouse was found inside the bottle, Freeman v. Schultz Bread Co., 100 Misc. 528 (163 N. Y. Supp. 396), where a nail was found in a loaf of bread.
In Paull v. McBride, 273 Mich. 661, involving the sale of contaminated kerosene which had been used in a kitchen stove and exploded, we denied liability and refused to extend the rule set forth in Hertzler v. Manshum, supra. In cases other than where an injurious or poisonous matter was patent in the food product, we have declined to permit a third person to recover from the manufacturer on the warranty unless it is shown that the manufacturer knew, or should have known, of the existence of such deleterious matter. As was said in O’Neill v. James (syllabus), 138 Mich. 567 (68 L. R. A. 342, 5 Ann. Cas. 177, 110 Am. St. Rep. 321, 17 Am. Neg. Rep. 561), which involved the explosion of a bottle of champagne cider:
“Where no contractual relations exist between the seller of an article of commerce, harmless in itself, and one who is injured thereby, as in the case of a manufacturer of champagne cider and a bartender who is injured by an explosion of an overcharged bottle thereof, there must be knowledge on the part of the seller of the danger before he can be held liable.”
Also, see, Pickens v. Crowley, Milner & Co., 258 Mich. 102, and Pesavento v. E. I. DuPont de Nemours & Co., 240 Mich. 434.
Plaintiff failed to show any negligence on the part of defendant. Defendant’s employee, called as an adverse witness by plaintiff, testified that he had never known of a similar case in the many years defendant had manufactured the product and that great care and caution was taken in packing to kill all bacteria. There is no testimony to show how old the can was, or in whose hands it had passed since leaving the manufacturer. No attempt was made to make an analysis of the contents to prove the existence of bacteria. The can itself seemed to be in perfect shape and it was not even shown that plaintiff took the ordinary precaution of a prudent housewife to make a small opening in the can so as to let out steam which, may accumulate after a closed packed can has been boiling in water for an hour.
In Glaser v. Seitz, 35 Misc. 341 (71 N. Y. Supp. 942), where plaintiffs sought to recover for personal injuries claimed to have been sustained as the result of the explosion of a syphon of carbonated seltzer water prepared and bottled by defendant and purchased by plaintiff from a retail dealer, the court said:
‘ ‘ There is no evidence in this case that the bottle * * * was not properly constructed, or that it was constructed differently from bottles in which seltzer water is usually sold. Nor is there any evidence that the manner of putting the water in was different from the method in common use, or that the character of the liquid was different from that usually put into such bottles * * * bottles containing seltzer or vichy water or champagne or ginger-ale or cider will sometimes explode. * * * But it does not necessarily follow that the vendor of those commodities in such bottles or barrels is liable for the explosion, in the absence of misconduct on his part, which misconduct must be affirmatively proved. For want of such proof the case is dismissed.”
In the instant case, we hold that there was insufficient testimony to take it out of the realm of conjecture. As we said in Paull v. McBride, supra:
“Juries may draw reasonable conclusions from the proof, but they may not arrive at their verdicts by processes of guess or conjecture.”
The judgment is affirmed, with costs to defendant.
Fead, C. J., and North, Wiest, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Potter, J.
Plaintiffs appeal from an order of the circuit court denying their petition to discharge a real estate mortgage.
The petition alleges that on August 8, 1916, plaintiffs and others gave a mortgage to the Industrial Savings Bank, of Flint, in the sum of $8,000. This mortgage bore interest at 7 per cent., and in addition plaintiffs paid $42.60 in fees and mortgage tax; that $623.33, the balance on such mortgage,' was included in a new mortgage executed by the same parties to the same bank on June 16, 1927, in the sum of $10,000, bearing interest at 7 per cent., and on which the mortgagors paid in addition the sum of $53.50 for recording fees and mortgage tax; that the $10,000 mortgage above mentioned and described was not recorded but was later paid by a mortgage dated September 14, 1927, in tbe snm of $23,000, with interest at 7 per cent., upon which plaintiffs paid the mortgage tax and the recording fee; that said'mortgage last above named became the property of the Union Industrial Trust & Savings Bank, of which defendant Mark A. Wilson was appointed receiver; that all of said mortgages covered certain real estate situated in the city of Flint, Genesee county, Michigan; and that petitioners are the sole owners of the property by the right of survivorship, Anna Parmalee, one of the mortgagors, having died since the execution of the mortgage last above named.
Petitioners claim the mortgage was usurious; that they tendered the full amount of the principal of said mortgage less the amounts paid thereon, together with insurance, property taxes, attorney fees and costs of foreclosure. This tender was not accepted, but the property was sold at mortgage sale by foreclosure under the power of sale contained therein by defendant May 6, 1936, for the sum of $22,208.33.
No dispute is made but that if the mortgages were usurious and the mortgagors were not liable for interest thereon, the amount tendered by them would be sufficient to pay the amount due upon the principal.
Defendant denied that plaintiffs were entitled to the relief prayed, and the trial court held with him.
The mortgage foreclosed bore interest at the rate of 7 per cent, per annum. In addition to this amount, it is admitted petitioners paid the mortgage taxes and the recording fees for recording the same. This rendered the mortgage usurious. Union Guardian Trust Co. v. Crawford, 270 Mich. 207. Usury having entered into the original mortgage note and the mortgage securing the same, and all renewals thereof, including the mortgage foreclosed, snch nsnry affected the mortgage lien to secure the last note and barred the mortagee’s right to collect interest thereon. This was settled in Gladwin State Bank v. Dow, 212 Mich. 521 (13 A. L. R. 1233), upon the authority of the many cases from outside Michigan, the opinions of text writers cited with approval therein, as well as upon a comprehensive review of the Michigan cases.
The legal rate of interest in this State is fixed by statute, 2 Comp. Laws 1929, § 9239, at the rate of 5 per cent, per annum, with a provision that the parties may stipulate for any rate of interest, not exceeding 7 per cent, per annum, subject to certain provisions therein. The statutes in relation to usury provide:
“No bond, bill, note, contract or assurance, made or given for or upon a consideration or contract, whereby or .whereon a greater rate of interest has been, directly or indirectly, reserved, taken or received, than is allowed by law, shall be thereby rendered void; but in any action brought by any person on such usurious contract or assurance, except as is provided in the following section, if it shall appear that a greater rate of interest has been, directly or indirectly, reserved, taken or received, than is allowed by law, the defendant shall not be compelled to pay any interest thereon.” 2 Comp. Laws 1929, § 9240.
“Whenever it shall satisfactorily appear by the admission of the defendant, or by proof that any bond, bill, note, assurance, pledge, conveyance, contract, security, or any evidence of debt has been taken or received in violation of this act, the court shall declare the interest thereon to be void.” 2 Comp. Laws 1929, § 9241.
We may not construe away the provisions of the section of the statute last above quoted.
Defendant did not attempt to foreclose the mortgage in question in a court of chancery. He added to the unpaid principal the real estate taxes,' recording fees and usurious interest and foreclosed the mortgage at law by advertisement, in the exercise of the power contained in the last mortgage, for the full amount of principal unpaid, including the usurious interest, taxes, recording fees, attorney fees and costs of foreclosure, and sold the lands and premises in question for such full amount, purchasing the same at such foreclosure sale. So that the mortgagee not only provided in each of the mortgages in question for usury, but attempted to enforce such mortgages for the full amount of such usurious interest by foreclosure proceedings at law. If the tender made by petitioners was sufficient, it discharged the lien of the mortgage. Federal Discount Corp. v. Rush, 269 Mich. 612.
It is settled that if the mortgagee had attempted to foreclose the mortgage in equity and collect the usury, it would have forfeited the right to interest, under all the authorities. But petitioners were not able to raise that question. ■ No attempt was made to foreclose the mortgage in chancery. Defendant avoided the equity court and insisted upon the fulfillment, to its full extent, of the letter of the contract. He purchased the premises for an amount which included the unpaid principal, plus the usurious interest. The mortgagee had no right to this usurious interest. By attempting to collect it,, it became forfeited as a matter of law. To hold petitioners were compelled to go into a court of equity and tender the full amount of legal interest upon the mortgage as a condition precedent to relief against the exaction of usurious interest upon the mortgage enables defendant to attempt to procure the whole amount of the usurious interest and, if he fails, to insist upon legal interest as a condition precedent to relief to petitioners. This is contrary to 2 Comp. Laws 1929, § 9241, which makes it the duty of the court to declare the interest upon the usurious debt void. This conclusion is in accordance with Estey v. Capitol Investment Building & Loan Ass’n, 131 Mich. 502; Malone v. Danforth, 137 Mich. 227; and Vandervelde. v. Wilson, 176 Mich. 185, of which in Leach v. Dolese, 186 Mich. 695 (Ann. Cas. 1917 A, 1182), it was said:
“These decisions are authority for the rule that the penalty of the statute attaches only when effort is made to enforce a usurious contract.”
The mortgagee attempted to enforce its usurious contract and under the authorities, as well as the express terms of the statute, the penalty of the statute, — that is, that the interest thereon shall be void, — was incurred.
Section 13318, 3 Comp. Laws 1929, provides a penalty for the failure to discharge a mortgage after full performance of the conditions thereof by the mortgagor. And in Wilber v. Peirce, 56 Mich. 169, it was said:
“It gives the action for refusal or neglect to discharge the mortgage ‘after full' performance of the condition;’ and this, it is argued, means the condition as expressed in the mortgage. We think, on the other hand, it means the condition so far as''it is legal and binds the mortgagor to performance. The statute intends, as we think, that when the mortgagor has satisfied all legal claims under the mortgage, he is entitled to have it discharged; and a re fusal to recognize Ms right will make the mortgagee liable under this statute.”
If performance of the conditions of the mortgage means, as held in Wilber v. Peirce, supra, “that when the mortgagor has satisfied all legal claims under the mortgage, he is entitled to have it discharg’ed,” the mortgager is not limited to the rem.edy to recover the penalty prescribed by 3 Comp. Laws 1929, § 13318, but may proceed by petition for a certificate of discharge under 3 Comp. Laws 1929, § 14403, which gives a right to petition for such discharge when the mortgage is satisfied.
The order of the trial court is reversed, with costs. Petitioners are entitled to a certificate of discharge of the mortgage on making the tender good. Case remanded with directions that such certificate issue as above directed.
Fead, C. J., and North, Wiest, Btjtzel, Btjshnell, Sharpe, and Chandler, JJ., concurred. | [
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Montgomery, J.
In the case of Petrie v. Torrent, 88 Mich. 43, a decreewas■ ■ entered directing- an .accoimting between the parties as to the transactions involved, and which had terminated, and a further direction was made that defendant, Torrent, from time to time, and at stated intervals, file an account of sales and expenditures showing transactions occurring in the interim. The main accounting has been had, and both parties have appealed from the decree to this Court, hut no hearing has yet been had on the appeal. A supplemental statement of account has been filed with the register of the circuit court in chancery. Since the filing of the account the relator applied to the respondent, asking that a day be set for taking testimony and hearing on the account. The appli •cation was denied, on tbe ground that the cause had been removed to this Court by the appeal. This application is made for mandamus to compel the circuit judge to proceed.
The circuit judge was right. How. Stat. § 6739, provides:
“Upon the entering of such appeal, and the filing of such bond, as directed in the preceding section, all proceedings in the cause, in the circuit court in chancery, shall be stayed, except taxation of costs .and proceedings in relation to an additional bond.”
This statute has been twice construed by this Court. Beal v. Chase, 31 Mich. 490; Day v. De Jonge, 66 Id. 550. In the latter case it was held that any proceeding in the ■circuit court after appeal to this Court is null and void. When it is considered that an appeal removes from the custody of the circuit court in chancery all the papers in the case, the bill, answer, testimony, and original decretal order, the propriety of this holding as applied to the present case is apparent. If pressing necessity exists for departing from the usual course, application should be made to this Court for authority to have the hearing proceed under the statute above quoted, and on such application this Court can direct as to the manner of supplying ■the necessary copies of the proceedings, etc. , In, most cases, however, the delay incident to the hearing “of an appeal in this Court would not be deemed sufficient ground for departing from the usual practice.
The mandamus will be denied.
The other Justices concurred.
See Railway Co. v. Chambers, 89 Mich. 5, holding that the effect of perfecting an appeal is to transfer the cause to the Supreme Court, after which that Court alone has jurisdiction of a motion to dismiss the appeal. | [
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McGrath, J.
This is a bill to enjoin the sale of intoxicating liquors upon premises in the village of Sand Beach, conveyed by complainant and another to Frank Pawlowskfs grantor by deed dated October 2, 1883, which contained the following provision:
“ This conveyance and estáte in the said premises hereby created is subject to the express condition that if the said party of the second part, their heirs or assigns, shall at any time sell or keep for sale, or knowingly permit any person under them so to sell or keep for sale, any spirituous or intoxicating liquors, whether distilled or fermented, the entire title and estate in and to said premises hereby conveyed and created shall cease, and the title in and to» said premises shall thereupon at once revert to and vest in the parties of the first part, their heirs and assigns, forever, and it shall then be lawful for the said parties of the first part, their heirs or assigns, to re-enter upon said premises, and said party of the second part, their heirs or assigns, and ■every person claiming under him or them, wholly to remove, expel, or put out.”
Prior to the date of the deed in question, complainant had conveyed several parcels of land in the village to other parties without restriction. The last of these deeds was •dated May 20, 1883. It also appears that on January 24, 1885, complainant conveyed a parcel of land adjoining the premises in question to ■ one Lowry by deed without restriction, and that Lowry, from 1888 and down to the time of the hearing, has kept a liquor saloon upon the premises so •conveyed. Defendant Frank Pawlowski operated a meat market on his premises until August, 1891, since which time his son has kept a saloon therein. Until years after the establishment of the Lowry saloon, defendant had •observed the conditions of his deed.
Restrictions of this class are sustained upon the theory ■that a party has the right, in disposing of his property, to prevent such a use by the grantee as might diminish the value of remaining land, or impair its eligibility for other uses. Watrous v. Allen, 57 Mich. 362; Smith v. Barrie, 56 Id. 314. But is there no mutuality in such agreements? It certainly cannot be said that a grantor has the right afterwards to sell an adjoining lot without restrictions, and thereby diminish" the value of his former grantee’s property, and impair its eligibility for other uses, converting the locality into a saloon locality, and still be allowed to insist upon the restriction. The damage to defendant’s projierty by the permission and existence of Lowry’s saloon is quite as apparent as that to complainant by reason of his ownership of a hotel and his residence in the same block. Chippewa Lumber Co. v. Tremper, 75 Mich. 36.
It “is no answer to say that the omission of. the restriction in the deed to Lowry was a mistake. The consequences are the same to defendants. No proceedings have been taken to correct such mistake.
The decree below must be reversed, and the bill dismissed.
Long, Grant, and Montgomery, JJ., concurred with McG-rath, J. Hooker, O. J., concurred in the result. | [
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Montgomery, J.
The plaintiff Cook is the publisher of the Niles Daily Star. The plaintiff Radican was inter ested with him in the transaction covered by the contract hereinafter referred to. The defendant was the owner of, a farm, and on the 1st of July, 1891, the parties entered into a written contract as follows:
“This agreement, entered into this first day of July,. 1891, between F. "W. Cook and W. M. Radican, of Niles, Berrien county, Michigan, party of the first part, and ?m. Blake, of Niles township, party of the second part, Witnesseth, That said party of the first part agrees to 'advertise in Niles Daily Star property hereinafter described as for sale, free of charge, provided the same is not sold within one year from the date hereof; but, in case said property is sold within one year from the date hereof, either by means of said advertisement or otherwise, said party of the second part hereby agrees immediately after such sale to pay said party of the first part the sum of 2-J- per cent, for such advertising.
“The property to be advertised as aforesaid is described as follows: 160 hcres in north-east quarter of section -33, in Weesaw township, formerly the Dr. Myers farm; 45 acres of timber land, and 115 acres under cultivation; good orchard; one acre of grapes; fair buildings; well watered; splendid stock farm. The same is located within 2$ miles north and west of Galien. Must have §5,000. One-half down and the other secured is the best terms. Can have all over §5,000, and 2i} per cent, besides.”
The plaintiffs offered testimony tending to show that they fulfilled the contract on their part by advertising the farm for sale; that’ they continued to do so until it was disposed, of. They also show that the defendant, on the 3d day of October, 1891, exchanged the land in question with one James Brought for 40 acres of land valued at §2,500, and received in addition §2,500 in securities. The defendant offered testimony tending to show that before-making the exchange with Brought he saw the plaintiff Cook, and stated to him that he had talked of making the-exchange, and that he would not do so if plaintiffs, expected him to pay commission, and that Mr. Cook replied that he would not be expected to pay any com mission, as it was an exchange, and not a sale. Defendant-' did not see Eadican. In rebuttal the plaintiff Cook testified that he did have a talk with the defendant prior to-the sale, arid that defendant represented to him that he-was going to make a trade for land, and that there was no money consideration in it, nothing but land; and that-he (Cook) then told the defendant that if it was an even trade, farm for farm, he would, so far as he (Cook) was concerned, be willing to cancel the contract, but he wrould not do so without the consent of Mr. Eadican. The jury returned a verdict for plaintiffs for the amount of the commission.
The circuit judge instructed the jury, in effect, that if the plaintiffs performed the contract on their part by advertising as agreed, and if the defendant disposed of the property within the year without any release by plaintiffs, the plaintiffs would be entitled to recover; and in this, we think, the circuit judge was clearly right. The cases cited by defendant’s counsel which hold that the agent, to entitle him to a commission, must 'find a purchaser ready to buy at the principal’s price, have no application here. The defendant promised to pay a certain price for a certain specific service, and any act on his part which prevented the plaintiffs from realizing the commission earned by the service (i. e., in this case, the advertising) renders him liable to respond for the amount.
2. The circuit judge charged the jury as follows:
“It is claimed by the defendant that he werit to the plaintiff Cook before the exchange of his farm, and said to Cook that if Cook and Eadican intended to charge him a commission in case of an exchange he would not make the exchange; and that Cook then said that he could go ahead and make the ’exchange, and no commission would be charged. If Cook and Eadican had been partners, this act upon the part of Cook, if Blake had relied upon it, would have bound both Cook and Radican, as already instructed. However, there is no legal evidence of a partnership, and, even though you should find that Cook did say this to Blake, and that Blake acted upon it in making the exchange, .such act of Cook would not of itself bind Radican.”
The undisputed testimony shows that they were jointly interested on one side of the contract, and under these •circumstances we think that the acts of one would, if in behalf of both, bind both. We do not overlook the fact that there was a shaip conflict between the parties as to what the talk was in October between Cook 'and defendant. The circuit judge was entirely right in saying to the jury that, if Cook’s version of what took place was accepted by the jury, defendant would not be released from his contract.
The circuit judge further said, in effect, to the jury, that if Radican said to Blake, at the time of making the contract or before it was made, that he and Cook were partners, then Cook’s promise that there should be no charge for commission, if made, would bind the plaintiffs. From an examination of the record we find that the witness Radican, whose entire testimony is given, nowhere disputes the statement that defendant makes that he (Radican) told the defendant that the two plaintiffs were in partnership in the business. It was therefore error to submit that question as an open question to the jury. Lange v. Perley, 47 Mich. 352; Corbett v. Spencer, 63 Id. 731. Much less can it be said that these instructions cured the error committed in instructing the jury that the plaintiffs were not partners, and that the act of Cook would not bind Radican.
Judgment will be reversed, and a new trial ordered.
The other Justices concurred.
Ellsmore v. Gamble, 62 Mich. 543; Hannan v. Fisher, 82 Id. 208; Kelso v. Woodruff, 88 Id. 299. | [
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McGrath, C. J.
Plaintiffs, residing and doing business in Cincinnati, Ohio, bring replevin under a chattel mortgage for goods seized in attachment. Defendants insist that the mortgage was given to hinder and delay creditors. It is admitted that there ivas less than. 1500 due to the mortgagees -from the debtor when the mortgage was given. The mortgage was for $1,500, and was executed December 26, 1889. Wilson, the mortgagor, testified that the mortgage was suggested by plaintiffs, who told him that it would tide him over; that its object was to keep his creditors off until he could make collections, and tide him over. Plaintiffs insisted that in the early part of December a bill of goods had been ordered by the debtor, amounting to over $1,100, and that the mortgage was given to secure-that amount, as well as the amount then due.
The court instructed the jury that if the mortgage was given to cover an existing indebtedness, and the bill of goods which had been ordered by the debtor, the mortgage would be valid. As an abstract proposition, this would be-true; but the difficulty with the case is that the debtor-swears positively that no bill of goods had been ordered by him, and that no invoice thereof had been sent him. Plaintiffs offered in evidence the following letter, dated January 9, 1890:
“To H. Rosenthal & Sons,
“ Cincinnati, O.
“Gentlemen: The annexed bill of goods I received by mail from your house, and will say that financial embarrassment renders it impossible for me to take the balance-of the goods I ordered of you. I therefore hereby release-you from sending balance of said goods, being in amount. $1,079.96, upon condition that that amount be indorsed on the chattel mortgage I executed to your house on the-26th day of December, 1889, leaving the balance due on said mortgage the sum of $420; which said mortgage was given to secure the purchase price of the said amount of $1,079.96, and other goods heretofore received by me.
“Yours, &c.,
“Madison Y. Wilson.
“Dated Jan. 9, 1890.”
In connection with said letter, an invoice of goods, amounting to over $1,100, dated December 7, 1889, was offered. Indorsed upon the invoice was the following:
“Dear Sir: The above lot of goods are ready, and stored subject to your order. We will forward to you as. soon as our account is paid, or the whole amount is secured to us, as you promised when you were here.
“H. Kosenthal & Sons.”
The plaintiffs sought, by the introduction of the letter with invoice attached, to show that the invoice antedated the mortgage. There is no testimony in the case, except this letter, from which any inference can fairly be drawn that any such bill of goods had been ordered by the debtor, or any such invoice received. ■ Wilson testifies that, at midnight of the day upon which the letter bears date, he was called out of bed, that the letter, already prepared, was presented to him by plaintiffs’ attorney, and that he signed it, but that he had not seen the invoice attached to the letter before this time. The attachment suit was commenced December 29, 1889; but, for some reason, that suit was discontinued, and another instituted on January 29, 1890. One of. the plaintiffs was sworn as a ,witness; and no attempt was made to show by him that any bill of goods had been sold *to, or ordered by, or charged to the debtor, except such as were covered by the actual indebtedness existing-at the time the mortgage was given. The attorney who prepared . the chattel mortgage, and who appeared for plaintiffs in this suit, was plaintiffs’ principal witness. He admits that he in person prepared the letter which the debtor signed, and that he called the debtor out of bed at midnight to sign the same. This witness testified that, at the interview in which he was directed to prepare the chattel mortgage, one of the plaintiffs, the debtor,: and the witness were present. He says:
“It was agreed that the mortgage and note should be for $1,500. Mr. Wilson stated that he owed him this amount that they talked about, and that was agreed upon. The amount of the whisky that he was to receive was also agreed upon. It was to be sent forward.”
Again he says:
“ Mr. Rosenthal then proceeded to state that Wilson was indebted to him to an amount of $200, or $300, or $400, whatever it was, — of course, I could not tell the exact amount of the figures, — and that he was going to let him have some more liquors, and Mr. Wilson was to give him security on his entire stock for what he owed him, and what he was going to ship forward. * * * And after they had talked over about the liquors coming, and the amount due, it was agreed that $1,500 should be the amount written in the mortgage. * * * Mr. Rosenthal said he would send the liquors to make up the difference between the amount of the bill, that Wilson owed him, as they agreed upon.”
Relative to the invoice attached to this' letter, the witness says:
“The paper attached contains a recital showing how he received it. I don’t know when he gave me that paper. I cannot say. I can’t tell whether I got that paper from Mr. Rosenthal or from Mr. Wilson. It came into my hands before that paper was drawn; and whether Mr. Wilson gave me that at the time, or whether it Vas handed to me at the time the mortgage was drawn, I cannot tell, or where I got hold of it I don’t know. It is dated December 7; but, now, whether I got it at the time the 'mortgage was drawn, and left with it, or whether Wilson gave it to me, or Rosenthal, I cannot tell.”
In view of the positive testimony that no goods had been ordered by the debtor; that no bill had been received by the debtor; and that the invoice referred to was first seen by him when he signed the paper dated January 9, — these desultory statements cannot be said to tend to show that an order had at that time been actually given, that the invoice had been sent to the debtor, or had been furnished by the debtor when the letter was signed. If the order had been given for the goods in question, it was in plaintiffs’ power to show the fact. If no order had in fact been given prior to the date of the mortgage, the antedating of the invoice, the indorsement upon the invoice, and the circumstances attending the procurement of the debtor’s signature to the letter of January 9 were inconsistent with an honest purpose. If the mortgage was given to cover an invoice of goods which had been ordered, but not received, the fact of such order was susceptible of proof, and it was unnecessary to secure the letter. The procurement of such letter, and the circumstances under which it was obtained, throw a suspicion upon the transaction, which the testimony in this record does not repel.
Defendants, in their third request, sought to direct the attention of the jury to the attempted decrease of the amount of the mortgage, and it was error to refuse the request.
The defendants should have been allowed, as bearing upon the probabilities, to show in what quantities Wilson had usually ordered liquors. Plaintiffs had been supplying him for years. It was certainly competent to show that an order by a druggist, doing a moderate business, for over $1,100 worth of whiskies, was an unusual one, and out of all proportion to the business that was being carried on by the debtor.
The judgment is reversed, and a new trial ordered.
The other Justices concurred. | [
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On Rehearing.
Wiest, J.
The decree is in accord with the provisions of the indenture and is affirmed.
Giving the provisions of the indenture reasonable construction discloses express power in the trustee to bid and purchase, at the foreclosure sale, in behalf of all the bondholders, whose interest he is bound to protect, without personal possession of the bonds. Such purchase by the trustee does not divest the trust but only vests the legal title in the trustee for the benefit of the bondholders, who thereby become the equitable owners of the res. The inchoate right to the benefit of the security becomes thereby an equitable right of participation in the res. Such enforcement of the provisions of the indenture by decree cannot be successfully contested by the mortgagor and, as no bondholder objects, solicitude relative to protection of the mortgagor is gratuitous. The provisions of the indenture amply protect the rights of all parties in case of purchase by the trustee without possession of the bonds.
The following from Richter v. Jerome, 123 U. S. 233, 246 (8 Sup. Ct. 106), is applicable:
“All the rights the bondholders have or ever had in the mortgage, legal or equitable, they got through the trust company, to which the conveyance was made for their security. As bondholders claiming under the mortgage, they can have no interest in the security except that which the trustee holds and represents. If the trustee acts in good faith, whatever binds it in any legal proceedings it begins and carries on to enforce the trust, to which they are not actually parties, binds them. Kerrison v. Stewart, 93 U. S. 155, 160; Corcoran v. Chesapeake & Ohio Canal Co., 94 U. S. 741, 745; Shaw v. Railroad Co., 100 U. S. 605, 611. Whatever forecloses the trustee, in the absence of fraud or bad faith, forecloses them. This is the undoubted rule.”
Fead, C. J.
Further light, developed on the rehearing, has convinced me that our former opinion (ante, 144) is wrong. I concur with Mr. Justice Wiest in affirmance of the decree.
The principal issue is whether that part of the decree is in error which permits plaintiff, as trustee, to purchase the premises upon foreclosure sale without producing bonds or paying cash to cover the bid.
The authorities are in conflict upon whether, without provision in the trust instrument therefor, the court, on foreclosure, may authorize the trustee to bid at the sale, hold the property in trust, and dispose of it, for all the bondholders. See First National Bank in Wichita v. Neil, 137 Kan. 436 (20 Pac. 528), and annotations, in 88 A. L. R. 1252.
That point was considered in Detroit Trust Co. v. Stormfeltz-Loveley Co., 257 Mich. 655 (88 A. L. K. 1263), but the case has no application here because the facts are. different.
But' mrcase has been cited or found which denied the validity or effect of such an express provision in the mortgage. Nor has reason been advanced why parties in sui juris may not so contract.
In the mortgage at bar, the trustee is expressly given authority to bid for and purchase the premises at foreclosure sale. But for whom?
The mortgage does not declare in haec verba that the trustee may buy only for all the bondholders. But the instrument is incapable of any different construction. It precisely prescribes the rights and duties of the parties which arise, and what shall happen to the premises, when the trustee buys. Article IX, § 5>, provides that if the trustee buys:
1. All bondholders shall pay the trustee their proportion of the costs and expenses of the foreclosure, including attorney and trustee fees, and certain other expenses and advances of the trustee; and the trustee has a lien therefor on the bondholders’ interests in the premises and proceeds of subsequent sale. Parenthetically, this provision persuasively negatives the idea that the trustee must pay the bid, or any part of it, in cash in order that a payment may be made to the bondholders. It clearly contemplates that, instead of receiving money from the trustee when it bids and buys, the bondholders shall pay money to the trustee, not only for its general advances and compensation but for money spent by it in acquiring the title for their benefit.
2. The trustee may manage the property, sell it and distribute the proceeds ratably among those entitled thereto.
Other provisions of the instrument require pro rata distribution of all collections on the debt and proceeds of sale of the premises and emphasize the continuous representation of all bondholders by the trustee. It contains no language providing for or contemplating a purchase on foreclosure by the trustee personally, or for any person, or private group. The words declaring the effect of purchase by tbe trustee and setting up tbe future disposition of the premises are so clear that any bondholder, reading the instrument, would be advised that, no matter in what capacity the trustee assumes to buy or with what, it may buy only for all the bondholders.
This conclusion is reached upon the terms of the mortgage itself, without special consideration' of fiduciary relationship and duties of trustee to bondholders and without dragging the second sentence of article X, § 2, from its ambush.
It is true that the trust instrument contains no provision expressly stating that the trustee may buy without cash or bonds. It is wholly silent upon whether the trustee must, or need not, pay in cash or bonds. Few, if any, contracts set up in words all the details that may be involved in their execution. When the occasion arises, the silences in them are made articulate by operation of law upon, or necessary or reasonable intendment from, the relationship, powers, rights and obligations expressly provided in the contract. If details of procedure are necessary on foreclosure to protect parties, the court may provide them in the decree.
What rule of law is applicable here? When bidding for all the bondholders, on authority from them, the trustee represents the entire mortgagee interest: Its position, therefore, is not different from that of a private mortgagee on foreclosure of his mortgage. This court holds that a mortgagee may purchase on foreclosure without payment of his bid, to the amount of his mortgage, because the ritualism of payment by the mortgagee to the selling officer and the return of the money by the selling officer to the mortgagee would make the payment no more than an “idle gesture.” Griffin v. Union Guardian Trust Co., 261 Mich. 67; Feldman v. Equitable Trust Co., 278 Mich. 619.
It would be equally an “idle gesture” for a trustee, buying for all bondholders, to pay the bid price in cash to the circuit court commissioner because the commissioner would turn it back to the trustee to be applied as the mortgage requires. And if the trustee or others had advanced personal money to buy for all bondholders, the trustee would repay the advance and every one would be back at the point from which he started.
Also, in instances where bondholders are numerous or recalcitrant, so united action and proportional advance from all could not be had, the power of the trustee to bid for all the bondholders would be wholly or substantially nullified by a requirement that its bid be paid in cash or bonds because of the lack of incentive in anyone to advance money or bonds for the benefit of all bondholders instead of using the funds for personal benefit.
In my opinion, the instrument expressly provides that the trustee may purchase on foreclosure, but only for all the bondholders, and, by operation of rules of law and intendment from the power given, it need not pay the bid in cash or bonds.
The authorities, although few upon the precise question, support this position. None has been cited to the contrary.
Kitchen Bros. Hotel Co. v. Omaha Safe Deposit Co., 126 Neb. 744 (254 N. W. 507), is in direct point upon the essential facts that the trust instrument expressly provided that the trustee .'might bid, the use of bonds was permitted as at bar, no express provision requiring, or dispensing with, cash or bonds was set up, and the trustee was authorized to manage and dispose of the premises after the pur chase. The court sustained a provision in the decree of foreclosure that the trustee could give the selling officer a receipt as the equivalent of money.
In Straus v. Chicago Title & Trust Co., 273 Ill. App. 63, the court found in the trust instrument authority in the trustee to purchase without production of bonds (the equivalent of article X, § 2 above referred to in the instrument at bar) and held, not only that the trustee could purchase without bonds or cash, but, in the discretion of the court on petition of a bondholder, the trustee could be compelled to buy. It was the ruling on compulsion that was criticized in 29 Illinois Law Review, p. 218, as permitting the court to change the contract of the parties.
The Straus trust deed does not appear to have contained any provision as to disposition of the property after the purchase by the trustee and it was evidently in support of its construction of the trust deed that the court discussed, with approval, the cases holding the doctrine of inherent power in the trustee to buy and dispose of for all the bondholders, the theory rejected by this court in the Stormfeltz-Loveley Case. In Chicago Title & Trust Co. v. Robin, 361 Ill. 261 (198 N. E. 4), the court re-, jected the inherent power doctrine and distinguished the Straus Case on the ground it concerned express contract power, approving the ruling that the bid need not be paid in cash and bonds in these words:
“ A trustee may be authorized by a trust deed to take the trust property on foreclosure sale for the benefit of all the bondholders and have the necessary or incidental power to bid it in at such sale. ’ ’
Cosmopolitan Hotel, Inc., v. Colorado National Bank, 96 Col. 62 (40 Pac. [2d] 245, 96 A. L. R. 1446), denied the trustee the right to bid without payment of cash, on protest of minority bondholders, because the court held the trust instrument in terms specifically required cash payment. The majority opinion stressed this point by distinguishing other cases on the ground that “nothing appears to indicate that the sale was required to be for cash. ’ ’ In the light of a strong dissenting opinion and the insistence of the majority on the terms of the instrument, it is fairly inferable that the court would have held cash payment by the trustee unnecessary had not the instrument expressly required it.
Smith v. Massachusetts Mutual Life Ins. Co., 116 Fla. 390 (156 South. 498, 95 A. L. R. 508), is not to the contrary. The trust instrument authorized the trustee to purchase and contained a provision which the court held permitted the trustee to discharge the purchase money by a receipt. The court held that these provisions authorized the trustee to purchase for the bondholders, and to take title and to execute a mortgage, but whether execution of the mortgage was under an express or implied trust the court would not say because it was unnecessary to decision. The point was upon the power to buy for the bondholders, not upon whether cash had to be paid. The opinion contains no expression as to the necessity to pay bonds or cash when the trustee is authorized to, and does, bid for all the bondholders and ivhen the trust instrument defines the subsequent duties and powers of the trustee over the premises. It must be remembered that, in the case at bar, the trust instrument not only expressly authorizes the trustee to purchase but expressly provides for the care and disposition of the property by it.
It is suggested that a contrary conclusion is demanded because of the provision in the instrument that, if a purchaser uses bonds on his bid, he must present them for credit thereon of the amount ap portionable to them. The argument is that when the trustee bids, but not with cash, it necessarily follows that it bids with bonds, and it must present them for credit.
We need not discuss the conflict upon whether express provision is necessary to entitle the use of bonds on a bid. The provision therefor is common to trust instruments, and whether necessary or merely precautionary, it is no more than (1) permission or (2) declaration of right, so to use the bonds. In either case, it cannot be construed as a command to use bonds nor a limitation on other rights. As a matter of fact, it is wholly for the benefit of the bondholders, to make it easier for them to finance a bid by using credit for cash. At most, it is an option, and if not exercised, the instrument stands as though the whole provision were stricken from it.
When the trustee buys for all bondholders, it has a decree in its favor, into which the liability on the bonds has been merged, at least for the purposes of the foreclosure (Shields v. Riopelle, 63 Mich. 458), and upon which automatic credit is given for the purchase price unless the court provides a procedure. The trustee uses the money decree, not bonds, to bid and buy.
But, it is urged, the power would be prejudicial to the mortgagor because he is entitled to have the bonds presented at foreclosure and proper credit indorsed thereon as protection in case of action at law on the bonds by individual holders. Bonds are not produced and credit indorsed when the sale is made for cash. The decree establishes the liability of the mortgagor and the sale price establishes his credit thereon for all purposes, regardless of what is used to buy. Also, it is the law of this State that, after foreclosure bill is filed, while suit is pending and after decree, no action at law on the debt may be maintained without leave of court. 3 Comp. Laws 1929, § 14367. In any event, and whether action at law be on the bonds or the decree, the mortgagor would have proper credit.
It has also been suggested that many evils may result from a ruling permitting the trustee to buy on foreclosure without producing bonds or cash. The complaint that competition would be stifled is fully answered in Detroit Trust Co. v. Stormfeltz-Loveley Co., supra. Other suggested evils may or may not occur. It may be that the authority would save bondholders from loss through sacrifice sale and by preservation of the property for a favorable market. This is the evident purpose of the power. Possibility of loss is inherent in all business transactions and all parties to a contract voluntarily assume the risks in it. The responsibility for the contract rests upon the parties. The court must give it effect as it is made. It cannot rewrite it because of a fear or conviction that it will not work well. And, of course, when the contract sets up trust relationships, courts of chancery still have jurisdiction. And actionable wrongs may be redressed in law or equity. See Sage v. Railroad Co., 99 U. S. 334.
"While of no particular effect upon the construction of the trust instrument, it may be noted that no bondholder is here complaining of the decree permitting the trustee to bid and buy without bonds or money.
Defendants’ contention that the ruling would carry the case into a new trust arising from purchase by the trustee and, thus, beyond the statutory jurisdiction of the court on foreclosure, is without merit. "When the foreclosure is completed, the case is closed. Any rights and remedies outside the scope of foreclosure and existing or arising thereafter may seek another forum.
Upon reconsideration, I think the following statement in the former prevailing opinion was too broad:
“We hold the question of when the sale is to be made under a foreclosure in equity is within the sound discretion of the trial judge.”
In ordinary foreclosures, it is for the mortgagee, not for the mortgagor or court, to determine the time of sale. Redfield v. Reid, 148 Mich. 545; 103 A. L. R. 1441, note. The note in A. L. R. indicates authority to the effect that in foreclosure of trust mortgages, the court, in its discretion and on petition of bondholders, may order the time of sale in certain cases. The refusal of the court in the instant case to order sale at or within a definite time was right, whether from the exercise of discretion or from lack of jurisdiction to do.otherwise. Decision on the point may rest on such alternative reasons. The power of the court to fix the time of sale may be left to future consideration in a proper case.
Sharpe, and Chandler, JJ., concurred with Fead, C. J.
See ante, 144. — Reporeer. | [
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Chandler, J.
Defendant is a municipal corporation, having been incorporated and having adopted a charter in accordance with the provisions of the home rule act. Act No. 279, Pnb. Acts 1909, as amended (1 Comp. Laws 1929, §2228 et seq.)- By-zoning ordinance, the defendant city is divided into districts, those pertinent to this cause being known as residence districts B and C. The ordinance in question prohibits the erection in district B of buildings for use other than as single-family dwellings, churches, schools, libraries, truck gardening, private clubs and accessory buildings and restricts the height thereof to 35 feet. In district C buildings may be erected for uses permitted in district B and for certain other enumerated purposes immaterial to this case. The height of buildings in district C is limited to 55 feet or four stories.
Plaintiffs, residents of districts B and C, filed their bill of complaint alleging that defendant had purchased a parcel of land, a portion thereof being within district B and a portion within district C; that on the land so acquired defendant proposed to construct and was proceeding to construct a steel water tower and tank of a total height of 140 feet, said tank having a storage capacity of 600,000 gallons; that the construction of said tower and tank is a violation of the aforesaid zoning ordinance and of the rights, easements and privileges of plaintiffs and that its construction will otherwise result in irreparable damage to plaintiffs, constituting a taking of their property without compensation and without due process of law contrary to Const. 1908, art. 13, § 1. Plaintiffs pray for an injunction restraining defendant from constructing said tower and tank.
Defendant’s answer denies that the construction of said tower and tank will result in irreparable damage to plaintiffs but on the contrary, due to proposed landscaping, will tend to beautify the area and thus enhance the value of plaintiffs’ property and denies that it will constitute a taking of property without compensation and due process of law and further denies that said tower and tank will constitute a nuisance. Defendant further alleges that said ordinance is inapplicable to the municipality; that due to the increase in the volume of water necessary to satisfy the needs of its inhabitants the present water system has become inadequate; that the construction contemplated is necessary to enable defendant to make necessary repairs to the present system; that said improvement is essential to provide the city and its inhabitants with an adequate fire protection system, to provide its inhabitants and industries with sufficient water, and is for the benefit, health, comfort and protection of its citizens.
From a decree dismissing the bill of complaint, plaintiffs appeal.
Whether the erection of the proposed structure would constitute a nuisance per se within the meaning of 1 Comp. Laws 1929, § 2639, obviously depends upon the prior determination of the paramount question involved as to whether the defendant may erect the tower and tank in question on the selected site contrary to the mentioned zoning ordinance.
Under the home rule act, the city, as a permissible charter provision, may provide for the installation of a water works. 1 Comp. Laws 1929, § 2232. In accordance with the permission thus granted, the charter of the city provides, chapter 13:
“Seo. 11. The commission shall canse to be maintained an adequate water works system for the furnishing of sufficient water supply and make all such ordinances, rules and regulations as are necessary for a safe, economical and efficient management of the same.
“Sec. 12. The commission shall also provide for the improvement and extension of the water works and water system wherever and whenever necessary for the public health and welfare, and for adequate fire protection. ’ ’
It is the contention of defendant that the erection of the contemplated water tower and tank is an exercise by the city of the police power in performing a governmental function authorized by the charter; that the exercise of said power is a duty incumbent upon the city to provide for the general comfort, safety and welfare of its citizens; and that the city cannot surrender, circumscribe or incumber the power so granted by the charter by the enactment of a zoning ordinance.
Although a city may in the construction, operation and maintenance of a water works system be acting, under certain factual circumstances, in a governmental capacity, as a general proposition the weight of authority is to the effect that in engaging in such an enterprise the city acts in a proprietary or private capacity. See Miller Grocery Co. v. City of Des Moines, 195 Iowa, 1310 (192 N. W. 306, 28 A. L. R. 815); Lyons v. City of Lowell, 239 Mass. 310 (131 N. E. 860); Woodward v. Livermore Falls Water District, 116 Me. 86 (100 Atl. 317, L. R. A. 1917D, 678); Canavan v. City of Mechanicville, 229 N. Y. 473 (128 N. E. 882, 13 A. L. R. 1123); Milwaukee Electric R. & Light Co. v. City of Milwaukee, 209 Wis. 656 (245 N. W. 856); Omaha Water Co. v. City of Omaha, 77 C. C. A. 267 (147 Fed. 1, 12 L. R. A. [N. S.] 736, 8 Ann. Cas. 614).
Under the circumstances in this case, no sound reason is perceived why the city should not be bound by the ordinance in question so long as such ordinance is in force and defendant is not excepted from its provisions as would be an individual or private corporation in attempting to engage upon the same project under the same conditions. It is undoubtedly true that under the provisions of the charter the city owes a duty to its inhabitants to maintain an adequate water system, but in so providing it cannot proceed in disregard of the plain legislative enactments of the duly elected representatives of its citizens.
The cases cited by defendant to the effect that a municipality may not barter away or surrender any of its sovereign governmental powers are inapplicable and not controlling. Defendant relies on City of Cincinnati v. Wegehoft, 119 Ohio St. 136 (162 N. E. 389). It is to be noted that the ordinance there in question specifically exempted the municipality from its operation. Whatever is there said relative to the result that would have obtained had the city not been so specifically exempted cannot be considered as the established law. The case of C. J. Kubach Co. v. McGuire, 199 Cal. 215 (248 Pac. 676), in so far as it may support the contentions of defendant, is, in our opinion, not an acceptable view.
The decree is reversed and one shall be entered in accordance with this opinion, but without costs, a public question being involved.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Potter, JJ., concurred. | [
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McGrath, C. J.
In September, 1882, Eoss & Co., of Quebec, Canada, contracted to sell to one Prentiss certain standing timber on lands near Grand Marais. Prentiss let the contract to cut the timber to Sullivan, who had gotten out about 4,000,000 feet when Prentiss failed. Eoss & Co. took possession under his contract, at which time Prentiss was indebted to Sullivan. Eoss & Co., in the fall of 1883, permitted Sullivan to take the logs already skidded at a given figure, and made a new contract with Sullivan. October 9, 1883, Sullivan executed to Eoss & Co. a chattel mortgage on his logging outfit to secure contemplated loans to the amount of $10,000, which were to be repaid by May 1, 1884. On November 7, 1883, the contract between Sullivan and Eoss & Co. was reduced to writing. Sullivan was to get out 10,000,000 feet, and to remove same to roll-ways on Lake Superior. The title was to remain in Eoss & Co., and Sullivan was prohibited from removing the logs from said rollways until they were paid for. On December 18, 1883, an agreement was entered into between the same parties, whereby Eoss & Co. were to advance, to carry on the work, $17,243.45, which was to be paid by June 1, 1884, and, until paid, Eoss & Co. were to retain title, and have a lien until stumpage and advances were paid. As additional security, Sullivan, on the same day, executed to Eoss & Co. a chattel mortgage for $30^300, payable June 1, 1884, and a real-estate mortgage for $7,000, payable according to the terms of the agreement aforesaid.
Plaintiff claims that under these agreements he had upon the rollways in the spring of 1884 at least 9,000,000 feet of lumber in the log; that there was then due to Eoss & Co. for stnmpage and advances, $48,200; 'that he had negotiations with several parties for the sale of said logs at $8.50 per 1,000, or $6 for shipping culls, $12 for common, and $33 for uppers; that these negotiations fell through because Connolly, acting for Ross & Co., refused to accept the terms made for payment of amounts due them; that in March, Connolly, acting for Ross & Co., agreed to take the logs at $6.50 for shipping culls, $12.50 for common, and $3'3.50 for uppers, and a contract to that effect was prepared and signed; that afterwards Connolly notified him^ that Ross & Co. refused to go into the deal,— that they did not want to buy that amount; that negotiations were then made with others for the sale, which continued until the latter part of May, 1884; that finally, on May 28, 1884, Connolly, Sullivan, and one Weller .were at Alpena; for the purpose of concluding a sale of the logs to Collins & Johnson; that the terms of payment of advances and stumpage were not satisfactory to Connolly, and that deal was not consummated; that plaintiff left Alpena on May 28, the others remaining; that on June 1, 1884, plaintiff, being very anxious to effect a sale of the logs, so as to pay his obligations to Ross & Co., met Connolly at St. Ignace, and then and there Connolly, for Ross & Co., agreed to take the logs at 9,000,000 feet, and pay therefor $9 per 1,000; that Ross & Co. were to cancel Sullivan's indebtedness that day, and pay him the balance when the logs were sold, or, in case the logs were cut into lumber, when the lumber was sold; that the logs were to be taken to Sault Ste. Marie, and plaintiff was employed at $100 per month to superintend the rafting. This alleged agreement was verbal. One Spencer, who was, and still is, a creditor of Sullivan, claims to have been present, and corroborates Sullivan. The logs were rafted, and towed to Sault Ste. Marie. The towing was commenced about June 15, 1884, and'finished about October 1, 1884. Ross died in October, 1888. Ancillary administration was bad in this State, and Sullivan presented a claim against the estate for the contract price of the logs, less stumpage and advances. The commissioners rejected the claim. Sullivan appealed to the circuit, and had judgment for $70,-417.70. The estate appeals, claiming a balance due the estate of $23,564.43.
The estate insists that no such contract was ever made as is set np. Connolly testifies that he had no talk whatever with Sullivan at St. Ignace; that he did not meet or see him there. The contention on the part of the defense is that the rafting of the logs to the Sault was, in the first instance, to be done by Sullivan on his own account; that when at Alpena, on May. 28, 1884, after the failure to agree upon a sale to Collins & Johnson, Sullivan made a written proposition to Eoss & Co., in which, after reciting his inability to pay his indebtedness, he says:
“I now propose,' if you make me the necessary advances, to raft and tow the logs to Sault Ste. Marie at my risk and expense; when there, to be sold by you to the best advantage, in order to enable you to repay your advances •and stumpage; the logs and securities which you now hold to remain in your possession until you are paid your account, interest, and commissions, and further advances made to be on the same terms and conditions as that already made.”
That Connolly then and there telegraphed to Eoss & Co., at Quebec, and received an answer, saying:
“ Prefer selling. Act as considered best, holding securities. Sullivan must pay your time attending business.”
That thereupon Connolly, on behalf of Eoss & Co., accepted Sullivan’s proposition, and drew a draft upon Eoss & Co., which was received, indorsed, and the proceeds appropriated by Sullivan, and Sullivan receipted for the amount; that Sullivan then requested Connolly to assist him in procuring tugs for the work of rafting the logs to the Sault; that Sullivan then left Alpena; that afterwards, at the Sault, — at just what time does not appear, — it was agreed that the logs should be cut up into lumber on joint account; that, in accordance with that understanding, he (Connolly) went to Marquette, and. had a type-written agreement, consisting of two pages, prepared in duplicate by Mr. ■ Clark, an attorney, brought it to the Sault, and submitted it to Sullivan; that Sullivan objected to some of its terms, whereupon Sullivan, Connolly, and one Weller went to the office of E. S. B. Sutton, an attorney at the Sault, when, after some time spent in discussing the matter, interlineations were made by Sutton in the writing which had been prepared by Clark, a third type-written page was added, and the agreement was then and there executed by Sullivan and Ross & Co., per Connolly, and witnessed by Sutton and Weller.
The agreement recites Sullivan’s inability to pay the indebtedness, and his desire to remove the logs to the Sault, or any other place, at the option of Ross & Co., and obtain further advances for such removal, and Ross & Co. thereby agree to make advances “for the purpose of towing and delivering said logs,” and “paying for the sawing ” thereof; and it is agreed that Ross & Co. “ shall have the same right to the sajd logs and lumber” as they have under former agreements; that the removal of said logs shall be at the risk and expense of Sullivan; that, from the sale of the logs or lumber, Ross & Co. shall first be paid all advances and stumpage, and, if a profit shall remain, Sullivan shall receive one-third and Ross & Co. two-thirds thereof. And then occurs what was-added to the contract by Sutton, and all of the third page of the instrument, which is as follows:
“And the basis of the division of the profits shall be based upon the prices mentioned in a contract drawn but not entered into between the parties hereto, and now in the hands of F. 0. Clark, of Marquette, except as to mill culls, and, as to those, they shall be equally divided between the parties hereto. Basis of value of Norway pine to be $6 for long and $4.50 for short logs, and profits to be divided as above stated. And it is. mutually agreed by and between the parties hereto that Ross & Co., of the second part, shall have the right to pay all the moneys mentioned in this agreement as a further advance for towing and cutting said logs at mill to the parties to whom it is due, and in fact, if they deem it necessary, to control the business in every particular, to their own satisfaction.”
The day of the month on which the contract was entered into is written in with a pen, and several interlineations are made with pen and ink. The paper itself clearly indicates that the first two pages were prepared as a completed ■contract before the addition of the third page.
Sutton and Weller were both sworn, and corroborate ■Connolly. Sutton testifies that he juepared the third page, and that the interlineations and erasures were made by him .as a result of the conference; that the letters “E. S.,” appearing in the margin opposite each interlineation or erasure, were written by him, and that all three sheets were attached before the paper was signed. Sutton was ■directed to prepare copies and file the instrument, and did .so. He was then deputy clerk. The original was found in the clerk’s office at the Sault, indorsed as follows:
“Beceived and filed June 24, 1884.
“E. S. B. Sutton, Deputy Clerk.”
A copy was sent by Sutton to Munising to be filed there. ;Such copy was produced, and indorsed thereon was Sutton’s certificate, as deputy clerk, that it was a true copy, •dated June 25, 1884. It was .further indorsed as follows:
“ Bee’d and filed this. 1st day of July, 1884.
“Thos. Nahbenayash, Town Clerk.”
Sullivan admits his signature, but accounts for it as lollows:
“Well, I was to start with— He had been quarreling with the men a good deal, and discharged 'the tug captains there, and had quite a time; and he said to me: ‘Half of these fellows, Tom, think those logs are yours; and I want you to make a contract to turn over those logs, a bill of sale, showing the real — ’ I was rafting the same day. We were rafting at the same time. And I told him: ‘All right. Go and make out a contract.’ Whatever it was, I told him to go and make it, — an agreement or contract, whatever it was; that I would sign it; and when I got back from the mill I signed it. I was in Mr. Sutton’s office when I signed it. I went down to the mill. There was a little raft coming in, and I went down with the raft, and come down the other way, and come^ip the road. The mill was down half a mile or so. I came down into Mr. Sutton’s office, and they were in there. * * *
“ Q. What were the terms of the paper you signed?
“ A. Oh, it was — the sense of it was — a bill of sale turning over the right of these logs to Mr. Connolly, or Ross & Co.
“ Q. What kind of a looking piece of paper was it?
“A. It was just one sheet of paper. I do not remember , whether it was type-written or in hand-writing."
On cross-examination he admits that Sutton, Weller, and Connolly were present when he signed the paper, and says that he could not tell how long he was at Sutton’s office; that Connolly and he did not go to Sutton’s office together; that he never signed more than one paper at Sutton’s office.
“I was not present when he told Mr. Sutton what to put into it. I went down to the raft, and went down to the mill, half a mile down. I was not ¡Dresent at the time any direction was given in regard to it. I mean to be understood that at the time I came in, after I had been down to the mill, it had all been drawn up. I didn’t hear any instructions given by anybody, or by Mr. Connolly, what to put into it. I didn’t hear any instructions by Mr. Weller what to put into it, and I didn’t give any myself as to what to put in it, and I do not know who did give the instructions what to put in it. I was not there.
“ Q. Wasn’t it read over to you?
“A. Well, I am not positive whether it was or not.. It was, to be a bill of sale turning over the logs, and giving the rights to Eoss. Mr. Connolly told me -what it would be upon the dock.
“ Q. You say you are not positive whether it was read over to you or not?
“A. Ño, I am not.
“ Q. You want to stand on that answer.
“A. Yes, sir.”
It is urged that this contract, giving Eoss & Co. two-thirds of. the margin, was a hard one; but Sullivan had been anxious to sell the logs at $8.50 per 1,000, or $6 for shipping culls, $12 for common, and $33 for uppers, but by this contract they were to be charged up to this venture at $6.50, $12.50, and $33.50, and Sullivan was to receive one-third of the profits over and above those figures. Sullivan endeavors to support his theory by instancing conduct on the part of Connolly which it is claimed is inconsistent with this written contract. In considering Connolly’s conduct, it must be borne in mind that under all the agreements the title to^these logs remained in Eoss & Co.; that Eoss & Co. were interested in them before they were rafted in the sum of $48,200, — nearly 60 per cent, of the value placed upon them by Sullivan. It must be remembered, also, that in the agreement of June 24, Eoss & Co. expressly reserved the right to pay all moneys directly to the parties entitled thereto, and, if Eoss & Co. deemed it necessary, they might assume control of the business in every particular. Although these provisions were not incorporated in the contract until June 24, it is evident that the original draft was prepared before any rafting or towing was done; and, if it be assumed that the contract was in existence, its provisions had evidently been talked over prior to its execution. In June, Connolly contracted for a tug at Detroit, in the name of Eoss & Co. But Sullivan does not deny Connolly’s statement that at Alpena, on May 28, he was requested to assist in getting tngs for towing rafts to the Sault. Weller went from Alpena to Detroit, and was requested by Connolly to send up one or more tugs. Sullivan was unknown in Detroit. Eoss & Co. were known, and had standing and credit.
The contract at Detroit was entered into by Weller for Eoss & Co. Connolly's letter of June 22 to Laub, who was foreman at the mill, directing him not to commence sawing “until I see Sullivan,” and that of June 23, instructing Laub not to put any more logs into the Seymour boom “until we arrange about sawing them,” so far from ignoring Sullivan's voice in the matter, distinctly refer to a conference with Sullivan before anything further was done, and are perfectly consistent with pending negotiations, Connolly’s anxiety for some definite understanding respecting the work about to be undertaken, and the execution of the contract on the day following. ■ Connolly's two letters to Eoss & Co. were but a part of a correspondence, all of which is not given. They are not inconsistent with negotiations culminating in the contract. Just when the difficulties between the tug captains and Connolly took place, or. when the conversations were had in which Connolly insisted that Eoss & Co. were owners, or when Con-. nolly engaged rooms at the Sault, does not appear. It is ’not inconsistent with the existence of the agreement or with its contemplation that Connolly, after he had assumed or contemplated control, should exercise that control, and place himself in a position to direct affairs; that he should direct or discharge tug captains, or employ or discharge any person, even Sullivan himself, or refer to Sullivan as foreman, pay out moneys to the persons entitled to them, engage tugs, take rooms at the Sault, employ a bookkeeper, open an account with the business, and in disputes with parties, who insisted that they were in Sullivan's employ, assert a different management or proprietorship. Nor is it inconsistent with the contract that he should say to Collins, who wanted to buy the timber, that if he could make a profit Ross & Co. could. They had then an interest in the profits. Sullivan had had the management and swing until after the date of this contract. The tug captains regarded him as their employer, and they resented Connolly’s interference. Connolly explains fully why he took the reins.
The first item of book-keeping in the “T. G. Sullivan Special Account” is under date of July'31, 1884, although one item, dated July 10, and two others, dated July 25, appear to have been brought into the account • between May 28 and July 31. Aside from these' items mentioned, over $12,000 had been disbursed, and is charged up, not in the special account, but in Sullivan’s loan account for advances. On June 26, Connolly drew drafts upon Ross & Go., — one in favor of “L. P. Trempe, tug Mystic,” for $1,000; another, in favor of “S. B. Grummond, tug Swain,” for $1,500; and another, of $400, in favor of George Kemp, for coal furnished tug Swain; and, on June 30, another in favor of George Kemp for $363.57. On June 30, Sullivan receipted to Ross & Co. for $3,263.57,. the amount of the aforesaid drafts, specifying the drafts, to whom paid, and the purposes for which paid. On June 24, 1884, Sullivan receipted to Ross & Go. for $200, “as advances to pay men;” on July 5, for $65, “ for sawing at Seymour’s mill;” on July 7, for $1,377.02, “for labor, sawing (including P. M. Church’s account of $111.33) anil rafting logs;” and on July 8, for $282.20, “to pay men for watering and rafting logs.” On July 9, Connolly drew on Ross & Co. for $749.43, in favor of tug Mystic, L. P. Trempe, owner; on July 12, a draft in favor of T. G. Sullivan for $245.33; on July 12, a draft in favor of S. B. Grummond for $1,960; on July 14, a draft in favor of W. A. Burt & Co. for $242.45; and on July 21, a draft in favor of T. G-. Sullivan for $1,440. Sullivan receipted to Ross & Co. for the amount in each instance, except one, when the draft was in favor of Sullivan, and in the receipt the purpose for which the proceeds were used was specified. On August 6 Connolly drew a draft in favor of Burt & Co. 'for $1,500, and Sullivan receipted for the amount “to pay labor at mill, rafting, towing, and other accounts connected with my business.” On August 11 Connolly draws a draft in favor of Sullivan for $1,100, and Sullivan receipts for the same “to pay sundry accounts connected with my business.” During September, October, and November, 1884, drafts aggregating over $10,600 are drawn in favor of Sullivan and other parties on account of sawing lumber, rafting, towing, wages, etc., and in each case Sullivan receipts for the same. The proceeds of these drafts may have, in some instances, passed through Sullivan's hands, but in most instances they were drawn in favor of other parties, and no claim can be made that as to the latter Sullivan's receipt as foreman was at all necessary for any purpose. A number of bills for towing, etc., were made out to Sullivan. In some instances these bills were O. K.'d by Sullivan. The only bill made against Ross & Co. is the bill for the tug engaged at Detroit, under the contract made by Weller.
On June 8, 1884, Sullivan writes Connolly as follows:
“ Mr. McNeff has been to see the timber, and got back to-day. I don’t know as I can make any bargain with Him or not, yet. He is a pretty close fellow. But I think I will make a bargain with McPhee, of Alpena. He was satisfied with the logs. He says they are better than I represented them to him. He will let me know as quickly as possible. I was up to the landing, took up anchors and chains and line, but there was too much ice to start to work, so I came back here, and Finn and I concluded to wait until the tug Swain comes up according to arrangements you and I made. She ought to be here to-morrow.”
On August 11, 1884, Sullivan writes Connolly:
“ In reference to conversation we had to-day as to insurance of cargoes now loaded at dock for Detroit and San-dusky, I wish to inform you that I do not wish you to insure this lumber or any other that I may sell to be delivered by vessel, without first having written instructions from me.”
On August 20, 1884, Sullivan writes to Eoss & Co., at Quebec, as follows:
“I take the privilege of writing to you to see if you would make a^deduction on the stumpage of what pine I have had from you, for I am paying too much for it per thousand feet, as the quality of pine on those lands is not good enough to command $2.50 per thousand at all. You know it has been cleaned of all the cream timber for board square timber, and taken very closely at that. The consequence is, I have to suffer the loss. ■ It is very shaky, and that lowers the price awfully. I have put, at the lowest calculation, $20,000 into the job, besides what money I have had from you, $15,000 of which I have to pay yet (the other was cash that I had saved before), besides my own work for 15 months, and 30 teams’ work. I got supplies and rigging for to put in 10 millions, and the timber did not hold out, — only less than 8 millions. Mr. Weller represented the lands to cut 12 or 15 millions, and bound me to put in 10 millions at least; and, of course, if the timber had stood out, it would have helped me greatly to have got in 2£ millions more. Of course, in binding me to put in 10 millions, he bound you to furnish it. I had lots of supplies left to do it, and they lie on my hands now. At the present price I am paying you for the stump-age, I will have but very little left to pay my other debts, and say nothing for myself; but I do not care for myself so much. Now, I want you to make a deduction in the stumpage of 50 cents per thousand feet, and that will be giving you more than any other man that understands lumber would give last fall. * * * I talked to Mr. Connolly and Mr. Weller about this, and cannot get any satisfaction. Now, in reality they are liable to the law for not furnishing me 10 millions of timber; but I’do not want any law at all, as I have never had a lawsuit in my life, and I hope will not have any with you, as I hope probably to do a good deal more business with you.”
Sullivan now claims, however,. that when this letter was written he had sold these very logs to Eoss & Co. as 9,000,-000 feet at $9 per 1,000, and in the deal his indebtedness to Eoss & Co. was entirely wiped out, and there was at that time a balance coming to him of between -sixty and seventy thousand dollars. Further comment on this letter would seem to be unnecessary.
October 27, 1884, Sullivan executed to Eoss & Co. a bill of sale of a large number of horses for the sum of $9,230. The bill recites that whereas said Sullivan—
“ Has been unable to pay said indebtedness in full; * * „ * that it is further understood and agreed that the above sum, hereby paid by Eoss & Co. to Sullivan for said above-mentioned property, is to be credited upon the amount owing by Sullivan to Eoss & Co. under the indebtedness abové mentioned, and secured by said chattel mortgage, and shall reduce the amount now due and owing under said secured indebtedness the full amount of the purchase price of said property above mentioned, to wit, the sum of $9,230.”
In the fall of 1884, Sullivan goes to the woods, and writes Connolly from Grand Marais, sending him a list of horses and oxen sold by him to Weller and others, evidently covered by the chattel mortgages held by Eoss & Co. He says:
“I will send those things to E. E. as quickly as possible, but Finn’s harness I will send next stage. I did settle with H. Gamble just as he told you, and I had to use the money or starve, and I did not like to get that far down coming on winter; but I have not settled with any person else but the Swede. He settled $112 of his account with me by paying Louis Lamore for the fixing of sail-boat, and $35 board bill that was against us for our men’s board; and the sail-boat is here, and if you want it you can have it; and that is the best I can do. I have not settled with James Eeid yet for the towing of those logs, but will do it as quickly as possible. * * * I wish you would, get my account settled up in full, and if you and Weller give me a deduction of 50c. on the thousand I would like very much to have it done. Also do you know what Brady is. paying for those yards in Detroit, or what he is doing with lumber?”
December 12, 1884, Sullivan writes Connolly, and says:
“ I will write again to Reid to send me the charge against me for towing, and I will forward to you. * * * I would like to get a memorandum of my account in full to date, and also an account of my credits. You need not mind, you know, until you get those bills of Thnrber and Randolph, and settled with Seymour at the Sault in full. Have you found out what Brady is paying for the use of' the yard for lumber, and is it insured? I think it is not. necessary to insure the lumber at Detour until coming on towards spring.”
On May 20, 1885, Sullivan writes Connolly:
“Mr. Goddard, the man that bought from Randolph, has been here for a week, and has closed up the trade with Randolph. He is a member of the board of trade at Saginaw, and understands the present state of the lumber market, I think, thoroughly. He says he will do everything for me that he can to sell my limber to the best advantage, and wanted me to send a man to Saginaw, to go with some of those buyers, and show them the lumber; so I came to the conclusion it was better to send Spencer down, and see if he could make a trade for it, as I think he can. He is a good man to talk up lumber, so I told him, if he finds men that want it, to telegraph you. Mr. Goddard says he knows now pretty well what the lumber is, on account of seeing the timber himself, and of course we having the pick of it. He says he thinks he can find me a buyer right away, and says I want to hold the lumber at Detour strong at $14 or better, straight. My, instructions to Spencer are to sell straight measure, and no other way.”
September 17,, 1885, Sullivan writes to Connolly, desiring to repurchase some of the horses sold by bill of sale of October 27, 1884. He says:
“ Why would it not be best to charge me with the horses at schedule price last fall, and let me pay for them as fast as I can, with interest? I wish to God that you would buy McDonald tract, and give me a chance, if you can, to- make something this winter, as I must do something this winter, if possible, to make a good deal of money; and the only way is to buy timber, and I will sell it to you. If you could only get me the timber, I can get backing, lots of it, to carry me along without any money from you at all, by giving them an interest with me."
In 1886 Sullivan had repurchased some of the horses covered by bill of sale aforementioned, and in February he gives Eoss & Co. a draft on the Peninsular Land Company for $1,050, to pay for said horses. April 13, 1887, Sullivan borrows $500 from Eoss & Co., and gives a mortgage to secure the amount, payable in two years.
A raft of lumber had, in September, 1884, gone over the rapids at the Sault, and such of the logs as were picked up were sawed at Detour. All of the lumber sawed at the Sault had been disposed of before the close of 1885, and the lumber at .Detour was disposed of in 1887. On February 25, 1888, an account was rendered to Sullivan, showing a balance in favor of Eoss & Co., of $23,564.43. (October 2, 1888, Eoss died. September 1, 1889, a statement of the account is again rendered. On October 1, .1889, Connolly writes Sullivan asking when he will pay. 'October 13, 1889, Sullivan writes Connolly the following letter-
“I got home Saturday, and found your letter in reference to Eoss & Co. You can tell them, rather than have a lawsuit I will take $5,000; but as you know, in justice to me, they owe me a great deal more money. If this is not paid to me before long, I will have to take proceedings to collect what they in justice owe me, and I will get it."
Dp to this time no claim had been made by Sullivan that he was not indebted to Eoss & Co., or the estate.
Suppose it be conceded that there was sufficient in the ,circumstances immediately -surrounding the execution of ,-the writing of June 24 to warrant the submission of the -question of misrepresentation, deception, or fraud in its procurement to the jury in a proper case. It is well settled that the victim of a fraud must be prompt in asserting it. The contract is dated June 24, 1884. The first intimation given that this contract did not correctly represent the relations of the parties is contained in the letter of October 13, 1889, written nearly one year and eight months after a statement had been rendered showing all the expenditures in connection with the rafting and towing of the logs, the manufacture of the same into lumber, and the expenses and proceeds of all sales. No attempt is made to explain the receipts given by Sullivan in the mean time, which cover expenditures amounting to tens of thousands of dollars; the payments made by Sullivan, amounting to nearly $10,000, to apply upon the very indebtedness which Sullivan now insists was canceled by the contract of June 1; the mortgage given to secure the loan of $500; the appeal to- Ross & Co. to remit a portion of the stumpage charge; the payment of $1,050 for the horses; the sale by Sullivan of the mortgaged personal property, amounting to over $6,000, on account of Ross & Co.; the letter relating to the insurance of the lumber; the receipts given for money used “in my business;” the letters written after Sullivan had left the mill, relating to the lumber at Detour and Detroit, the towing bills, the sale of the lumber, and the appropriation of the proceeds of other sales. This testimony does not rest in parol, but is in writing, over the signature of Sullivan himself. These instruments, with which this record abounds, are absolutely inexplicable upon the theory which Sullivan now advances, but are entirely consistent with the only other theory advanced in the case, viz., the existence of thé contract in question. These documents are referable only to the contract of June 24. That contract furnished the only key to their solution. There is no middle ground. Plaintiff must be deemed by these writings, covering a period of three years, to have admitted the existence of this contract, and acted upon it, and cannot be permitted, "after the lapse of five years and four months, to raise the question of fraud in its procurement.
This contract was signed in the presence of two witnesses. No claim is made that at the time of its execution it was not read, or that it was not correctly read, or that any artifice was there employed to secure Sullivan's signature thereto, or that it was there stated that it was a mere bill of sale, or that it was there represented to be a paper other than what it purports to be. Sullivan's only claim is that before its execution Connolly told him that he wanted a bill of sale, and went to have it prepared; and it is alleged that the inference to be drawn is that he relied upon Connolly's statements, made before its preparation, and signed the paper, supposing it to be a bill of sale merely. As is said in Campau v. Lafferty, 50 Mich. 114, 117: “No man could rely upon even the most solemn written instruments,” if, upon such evidence, a, contract may be disregarded, It would only be necessary in any case, although all the precautions as to the publicity of execution and signature of witnesses be observed, for the party seeking to avoid a contract to assert that before, the contract was prepared the other party informed him that another and different contract was to be prepared. Instead of attempting to vary the terms of a written instrument by parol, it would only be necessary in any case to set up prior conversations as constituting the contract, and brush aside the written instrument with the unsupported allegation that" the party seeking to avoid that contract supposed that the contract which he signed was that previously agreed upon. Weight must always be given to the fact of execution; and the presumption which exists in favor of written instruments, not unconscionable in their character, but mutually advantageous in their provisions, executed by parties competent to contract, and between whom no fiduciary relations exist, in the presence of witnesses who affix their signatures as such, cannot be overcome except upon testimony from which an inference of duress, deception, misrepresentation, substitution, or artifice is clearly deducible. Campau v. Lafferty, supra; Houghton v. Ross, 54 Mich. 336; Tayor v. Fleckenstein, 30 Fed. Rep. 99. It is true that one witness testifies that Connolly, before the execution of the contract of June 24, told him that Ross & Co. had purchased the logs, and another that in October, 1884, Connolly repeated the statement to him. Connolly denies that he made either statement. Suppose, however, that he made either or both. They were made to third parties. Sullivan was not misled by them. They bear upon the probabilities of the execution of the* contract, and the credit to be given to Connolly’s testimony. Neither the execution of the contract nor the admissions of plaintiff depend in any measure upon Connolly’s testimony. •
There is a well-settled rule adopted by courts of equity in actions brought for the specific performance of contracts for the sale of land, which it seems to us is equally applicable to actions at law founded upon contract, viz., that a party setting up part performance to take a parol agreement out of the statute of frauds must show acts unequivocally referring to and resulting from that agreement, and done with a direct view to its performance. In other words, part performance must be shown by acts- that confirm the existence of the contract. Ramsdell v. Millerd, Harr. Ch. 373; McMurtrie v. Bennette, Id. 124. In the latter case the court say: “The agreement set up must appear to be the same with the one partly performed. There must be no equivocation or uncertainty in the case.” In the present case the contract upon which plaintiff relies rests in parol. This documentary evidence, and all the writings that passed between the parties, excluding from consideration the contract of June M, so far from indicating the existence of the agreement set up by plaintiff, are wholly inconsistent therewith, and unmistakably show that the things done and relied upon to take the agreement out of the statute refer to, result? from,’ and must have been done with a view to the performance of, some agreement other than that reliéd upon ^ by plaintiff. Two contracts, however, are set up. Suppose that both rested in parol. Can there be any doubt as to which this documentary evidence refers to? The object of the statute uhder consideration must be considered, and the obvious duty of the Court is to treat this mass of unexplained documentary evidence as conclusive. A proper regard for the purpose of the stattfte will not permit a party to avail himself, as part performance, of acts done which, by numerous voluntary writings, he has related to another and different contract.
The judgment is therefore reversed, and a new trial ordered..
The other Justices concurred. | [
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Grant, J.
Complainants were sureties on a promissory-note of $200, executed by defendant Ehrmanntraut to defendant Nast. Nast transferred the note to defendants Charles and Edward Neidhold. The Neidholds brought suit upon it before a justice of the peace, and recovered judgment for $216. Defendant Miller was the attorney for the Neidholds in that suit. Complainants allege on information and belief that the note was transferred to the Neidholds by Nast without the payment of any consideration; that the sole purpose of the transfer was to prevent the name of Nast from appearing as plaintiff; and that Nast is the real party in interest. Ehrmanntraut subsequently deposited $216 in the First National Bank of Bessemer for the purpose of paying this judgment, and gave Miller a check for that amount in payment thereof. Miller accepted the check in satisfaction and payment of the judgment, and delivered the note to Ehrmanntraut. Ehrmanntraut had previously given to Nast a check for $200 on said bank in payment of another indebtedness which he owed him. The check was presented at the bank1, and was dishonored. Miller informed Nast that Ehrmanntraut had $216 on deposit in the bank, and that he had given him a check for that amount in payment of the judgment. Nast thereupon went to the bank and presented his dishonored check, which the bank paid. It is alleged that, this was done by collusion between Miller and Nast for the-purpose of securing the payment of the dishonored check, and that this was a fraud against complainants, who are pecuniarily responsible for the amount of the judgment. Miller subsequently presented his cheek for payment, which was refused for want of funds in the bank. The above are the material allegations of the bill of complaint. The claim of the complainants is that the judgment was paid, and they pray that defendants may be enjoined from transferring or assigning said judgment, and from attempting to enforce the payment thereof.
The defendants interposed a general demurrer for want of equity, which was sustained.
The rule that an agent to collect for his principal is not authorized to take anything but money in payment will not avail the defendants under the case made by the bill. If Miller was the duly-authorized agent to collect this judgment, and he received the check knowing that the money was'in the bank to pay it, and notified his principal, it was his duty to present it; and, if Nast waS the real owner of the judgment, it was not in his power to divert the money from the-payment of the debt to which Ehrmanntraut directed it should be applied..
Complainants have not an adequate remedy at law. A judgment stands against them undischarged upon the record. Execution may at any time issue, or a transcript of the judgment be taken into the circuit court. A long silence, with knowledge of the facts, might estop them from taking advantage of the fraud, and be construed into a ratification of the appropriation of the money. It is apparent that the defendants the Neidholds, Nast, and Miller do not regard the judgment as paid, but, on the contrary, that .they regard it as valid and subsisting. Complainants are not required to wait until the plaintiffs in the suit take-steps to enforce their judgment. A court of equity has-jurisdiction to declare the judgment paid, and to restrain the defendants from taking- any steps to enforce it.
The decree must be reversed, with costs, the demurrer overruled, and .the case remanded, with permission to. defendants to answer according to the rules and practice of the court.
The other Justices concurred. | [
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Montgomery, J.
The plaintiff recovered a judgment for personal injuries received while a passenger on defendant’s horse car. The duty of the company, a failure to observe which is claimed to have resulted in the injury, is alleged as follows:
“ It thereupon became and was the duty of said defendant to safely carry, the said plaintiff from said St. Joseph to said Benton Harbor, and to supply for said car upon which said plaintiff took passage as aforesaid safe and gentle horses, and such horses as would not become frightened or fractious at or because of any heap of material, clay, or rubbish that might be by, near, or on the said street railway, or between its tracks. Yet the said defendant did not regard its duty, or use due care in that behalf, but, on the contrary thereof, did not supply and have attached to said car upon which said plaintiff took passage as aforesaid safe and gentle horses, ■ but carelessly neglected so to do, and carelessly and negligently did then and there have attached to said car, for the purpose of pulling, said car, horses that were fractions and turbulent, and were easily frightened' at rubbish or material that lay by, near, or on said street railway, or between its tracks, which then and there was unknown to said plaintiff.”
The declaration also averred that the defendant had caused to be piled near to its tracks heaps of dirt, at which the horses became frightened, and plunged and reared, and would not be quieted; and when plaintiff was endeavoring to escape' from the front platform of the car, without negligence or fault on her part, and to escape what seemed to be a great and impending danger, one of said horses suddenly, without warning, by reason of their fright, did kick said- plaintiff with great force" and violence, whereby the right leg of plaintiff was fractured and broken, and she was otherwise greatly injured.
The circuit judge instructed the jury that the mere fact of piling dirt or clay on or near the track was not negligence, following the decisions of this Court in Cowan v. Railway Co., 84 Mich. 583, and Zanger v. Railway Co., 87 Id. 646. But he also instructed the jury that it was the duty of the railway company to use reasonable care in selecting horses, and that the company was bound to know that want of reasonable care in selecting horses for use on its railway might' result in injury to its passengers, and that the company was bound to take reasonable steps to ascertain whether they were safe for such use; that, if. the railway company in this case used such reasonable care in selecting its horses, it was not in that respect guilty of any breach of duty towards the plaintiff; but if it failed to use the care and caution that a reasonably prudent person would have used under the same circumstances, the plaintiff had a right to complain of such want of care and prudence. The court, proceeding, said: .
“Now, then, considering the use to which these horses were to be put, was the defendant reasonably prudent in selecting and using them for that' purpose? Would a reasonably prudent person, under the same circumstances, have used more care and prudence? If these horses were fractious and easily frightened by the sight or proximity of piles of dirt or clay, did the defendant's officers know such fact? If they did not know it, what measures, if any, did they take to discover the character or disposition of such horses? Did they or did they not do all that a reasonably prudent person would have done before permitting such horses to be used in hauling its cars, or before dumping dirt or clay on or near its track? In this connection you are instructed that whatever this defendant's driver, Congdon, before this accident in question, and in the course of his employment, learned or discovered with respect to the-character or disposition of these horses, is presumed to have been known by the defendant, and the defendant is chargeable with such knowledge possessed by Congdon.''
We think this charge correctly embodied the law applicable to this case, if there was evidence to support it. We find that there was- such evidence, and its weight was for the jury. There was not only the testimony of what occurred on the occasion in question, but the testimony of one O'Keefe, who had driven the horses afterwards, and who testified that they were not a safe team. The testimony of the driver himself had some tendency to show that the horses were more or less excitable.
It is alleged that the circuit - judge erred in permitting the witness O'Keefe to give his opinion as to whether the team was a safe team. The ruling was within the previous holdings of this Court. Laughlin v. Railway Co., 62 Mich. 220; Woodbury v. City of Owosso, 64 Id. 239.
Counsel for defendant also contends in his brief that the court erred in permitting the plaintiff to show by testimony that defendant, after the accident, separated the horses. This testimony was incompetent for the purpose of raising a presumption that the team was vicious, and that proper care had not been taken in its selection. Woodbury v. City of Owosso, 64 Mich. 239; Polzen v. Morse, 91 Id. 208;. Booth, St. Ry. Law, § 402. But on examination of the record we find that no exception was taken to the admission of this testimony, and no error assigned upon the ruling admitting it. We do not deem it necessary to pause to consider whether the error was one which worked prejudice, as, under the well-settled practice of this Court, the alleged error cannot be considered.
The brief contains, a discussion of the question of whether the plaintiff was in fault in riding upon the platform of the car. The testimony is conflicting as to whether the car was crowded. If it was so crowded that it was impossible for her to find room inside the car, she had a right to ride on the platform without being charged with negligence for so doing. Upham v. Railway Co., 85 Mich. 16; Archer v. Railway Co., 87 Id. 101; Booth, St. Ry. Law, § 338. But in the present case it is clear that the injury did not result to the plaintiff because of her riding on the platform. The whole testimony on both sides shows that she was not jolted off the car, but that, when the car was thrown off the track by the action of the horses, she attempted to alight, and, as she claims, the horses veered around, and one of them kicked her, breaking her leg. The defendant claims, >on the other hand, that she jumped off, and received the injury in jumping. This attempt to escape would have been made just the same had she been inside the car, and the same attempt was in fact made by the other passengers. The fact of her having previously been riding upon the platform could not be said to have been the proximate cause of the injury.
.The record contains 42 assignments of error, but we think the views herein expressed cover all the substantial questions raised. There was no error which we can consider which worked a prejudice to the defendant. The jury found the facts in favor of the plaintiff after a full and fair charge, which correctly embodied the law of the case, and the judgment will be affirmed, with costs.
The other Justices concurred. | [
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Sharpe, J.
In May, 1934, R. H. Bronk, Inc., entered into a general agency contract with the defendant company for the writing of insurance. On or about April 14, 1935:, defendant company through its agent Bronk issued to plaintiff a mercantile safe burglary policy expiring April 14, 1938, covering a safe specifically described therein. The policy of insurance contained the following provisions:
“Provision M. Changes. No provision or condition of this policy shall be waived or altered except by written indorsement attached hereto, signed by the president, a vice-president, secretary, or an assistant secretary of the company, nor shall notice to any agent or knowledge possessed by any agent or by any other person, be held to effect a waiver or change in any part of this policy. Changes in the written portion of the declaration, if initialed by any manager, assistant manager, or duly authorized agent of the company, shall bind the company and the assured. The personal pronoun herein used to refer to the assured, shall apply regardless of number or gender.
“Provision N. The statements in items numbered 1 to 15 inclusive in the declaration hereinafter contained are declared by the assured to be true. The policy is issued in consideration of such statements, and the payment of the premium in the declaration expressed. ’ ’
December 19, 1936, Bronk resigned his agency with defendant company, effective January 31,1937; and said resignation was accepted, but no notice of the termination of the Bronk agency was given to plaintiff. On July 23,1937, the safe described in the policy was burglarized, the loss was reported to the Bronk agency by plaintiff, and on September 13, 1937, the loss was adjusted by R. P. Scholte, an adjuster of defendant company.
Prior to the adjustment of the loss, plaintiff bought another safe and on August 27, 1937, called Bronk and asked him to inspect the new safe. Bronk did so and notified plaintiff that he (Bronk) was getting’ an indorsement from the insurance company transferring the insurance to the new safe. Following this conversation with plaintiff and on the same day, Bronk wrote .the insurance company saying, “Will you please make the necessary indorsement transferring to.the present safe.” This letter was received by defendant on August 30, 1937. On the same day that plaintiff and Bronk had their conversation about the transfer of the policy, August 27, 1937, the safe was burglarized. Mr. Bronk was notified of the burglary and immediately referred the matter to the adjuster, Mr. Scholte. Prior to any knowledge of the latter burglary, the defendant company refused to insure the new safe on the ground that it was not a burglar-proof safe. Upon refusal of the insurance company to pay for loss and damage growing out of the burglary, plaintiff began suit and recovered a judgment.
Defendant company appeals and contends:
That R. H. Bronk, Inc., was not an agent of the defendant company at the time of the claimed transfer of coverage, and could not bind defendant company in any event;
Assuming, but not conceding, that as to plaintiff, R. H. Bronk, Inc., was the agent of defendant company, said agent still had no power to change the coverage from one safe to another by parol, where the policy specifically provided that no change could be made unless it was in writing;
That the preponderance of the testimony in this case shows that R. H. Bronk, Inc., did not even purport to make any transfer of coverage from the safe described in the policy to the safe which was burglarized on August 27, 1937;
And that an insurance adjuster has no authority to bind the company in a matter of coverage.
There appears to be no dispute over the fact that the R. H. Bronk, Inc., was appointed as a general agent of the defendant company; and that subsequent to the termination of such agency, the insurance company left with Bronk certain “blanks” to effect transfer of coverage and permitted Bronk to service business that had been written prior to the termination of the agency. It also appears that the insurance company had not notified plaintiff of the termination of Bronk’s agency.
Defendant company strongly urges that plaintiff was never informed that his safe was covered by insurance. The record sustains the finding of the trial court that plaintiff believed he was dealing with an authorized agent of the company; and that his safe was insured.
In Southern Life Insurance Co. v. McCain, 96 U. S. 84, the court held that a person who has dealt with an agency in a matter within his authority has a right to assume, if not otherwise informed, that the authority continues, and when the dealing continues after the authority is revoked the principal is nevertheless bound, unless notice of the revocation is brought home to the other party. See, also, 14 A. L. R. 846 and 21 R. C. L. p. 860.
In Bloomer v. Dau, 122 Mich. 522, 526, we said:
“A general agency continues until in some way parties have been notified of its termination, or have sufficient facts in their possession to put them upon inquiry. ’ ’
In the case at bar, plaintiff had never been notified of the termination of Bronk’s agency, nor had he any knowledge that would lead him to believe that the agency had been terminated. It must follow that, insofar as plaintiff’s rights are concerned, Bronk must be considered as a general agent of defendant company.
Plaintiff contends that defendant company is es-topped from urging, as a defense, the failure of its agent to issue a written indorsement of coverage and relies upon Pollock v. German Fire-Insurance Co. (syllabus), 127 Mich. 460, where we held:
“Where application is made to the agent of an insurance company for permission to remove insured property to another location, and the agent verbally consents to the removal, but fails to indorse such consent on the policy, such failure cannot be set up by the company as a defense to an action on the policy, notwithstanding a provision therein that no officer, agent, or representative of the company shall have power to waive any provision or condition of the policy, or grant any privilege or permission affecting the insurance, except by writing so indorsed. ’ ’
And Cummings v. National Fire Ins. Co. of Hartford, Conn., 251 Mich. 105, where we said:
“Because the indorsement was not made, the defendant denied liability. In seeking to avoid liability because its agent neglected to do what in duty she was bound to do, the company has taken an unconscionable position. The law will not permit it. When notified of the removal of the goods, it was her duty either to make the indorsement or to cancel the policy and return the unearned premium. Having done neither, the company must be held to have consented to the change. Pollock v. German Fire-Insurance Co., 127 Mich. 460; Schlee v. New Zealand Insurance Co., 238 Mich. 112, and cases cited.”
Defendant company contends that plaintiff is bound by the restrictions in the policy and relies on Cleaver v. Trader’s Insurance Co., 65 Mich. 527, 532 (8 Am. St. Rep. 908), where we said:
“The fact that the plaintiff may not have read the printed conditions of his policy, and relied, in ignorance of them, upon the implied or assumed powers of the agent, cannot help him. It was his business to know what Ms contract of insurance was, and there can he no difference in this respect between an insurance policy and any other contract. In the absence of any fraud in the making' of the same, and none is claimed in this case, the insured must be held to a knowledge of the conditions of his policy, as he would be in the case of any other contract or agreement. When the policy of insurance, as in this case, contains an express limitation upon the power of the agent, such agent has no legal right to contract as agent of the company with the insured, so as to change the conditions of the policy, or to dispense with the performance of any essential requisite contained therein, either by parol or writing; and the holder of the policy is estopped, by accepting the policy, from setting up or relying upon powers in the agent in opposition to limitations and restrictions in the policy. Merserau v. Phoenix Mutual Life Ins. Co., 66 N. Y. 274; Catoir v. American Life Ins. Trust Co., 33 N. J. Law, 487.”
And McIntyre v. Michigan State Ins. Co. (syllabus), 52 Mich. 188, where we held:
“The conditions prescribed by an insurance policy as to the payment of a premium note cannot be waived by an insurance agent if the policy expressly stipulates that they shall not be.”
We are of the opinion that the present case is governed by the Pollock Case, supra. In that case the agent failed to do something that he had promised to do, i. e., “indorse the consent on the policy.” The agent, as a general agent, had authority to do this. In the case at bar, Bronk, as general agent, had authority to make the indorsement on the policy covering the new safe; moreover, he promised plaintiff that he (plaintiff) was covered. -In the Pollock Case, supra, we held that the failure of the insurance company to perform the promise made by its general agent could not be set up as a defense to an action on the policy.
After defendant insurance company, through its general agent Bronlc, advised plaintiff that his safe was covered by insurance, it was its duty to take whatever steps that might be necessary to make legally effective such coverage. The failure of the insurance company to take such steps may not now be set up as a defense to an action on the policy.
The judgment of the lower court is affirmed, with costs to plaintiff.
Btjtízel, C. J., and Wiest, Bttshnell, Potter, Chandler, and North, JJ., concurred. McAllister, J., did not sit. | [
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Wiest, J.
In October, 1933, Etta E. MacFarlane, a single woman of financial means and business experience, and plaintiff herein, a widow without financial means and with little business experience, who were long-time friends, went to a branch of the Manufacturers’ National Bank of Detroit and opened a savings account in their joint names, payable to either or the survivor, and signed forms and cards to such effect, including the recital that:
“The intention of the said signators is to create a joint tenancy in this account and in the accounts in continuation hereof with right of survivorship.”
This constituted them joint tenants, with deposits thereunder payable to either, during the life of both, or to the survivor after the death of one of them. 3 Comp. Laws 1929, § 12063 (Stat. Ann. § 23.303).
Act No. 286, Pub. Acts 1937, effective July 23, 1937 (Stat. Ann. 1939 Cum. Supp. § 23.303), added the following amendment:
“The making of the deposit in such form shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding, to which either such banking institution or surviving depositor or depositors is a party, of the intention of such depositors to vest title to such deposit and the additions thereto in such survivor or survivors.”
The initial deposit and all additions thereto were made by Miss MacFarlane.
Miss MacFarlane died testate September 28,1937, leaving an estate, not including the deposit, of the value of about $50,000, and at that time the joint deposit amounted to $7,233.73. Under, the express terms of the deposit and the statute sole title to the deposit then vested in plaintiff.
September 17, 1937, Miss FacFarlane executed a will, making specific bequests, including one of $500 to plaintiff, with residue of her estate in trust for a named beneficiary, and named defendant Thayer executor. The executor learned of the mentioned deposit, counseled with the attorney for the estate, and plaintiff, upon request, visited the office of the attorney and there, in answer to questions, stated she had made no part of the deposit and, under the belief that in such event the deposit was not hers, stated she did not claim it, was at once taken to the bank and there executed a transfer of the deposit to the executor. Subsequently, learning that she owned the deposit and the fact she had contributed no part thereof was immaterial, plaintiff filed the bill herein to be relieved of her mistake, have cancellation of the transfer of the deposit and decree for restoration of the amount thereof. Proofs were taken under reference by a circuit court commissioner and report made in favor of plaintiff. Defendants filed exceptions, and the court dismissed the bill.
Plaintiff reviews by appeal, and contends that no substantial evidence was introduced in rebuttal of" the presumption declared by the mentioned statute and that her ignorance of her rights, taken advantage of in the office of the attorney for the estate in having her release her .vested right without advice or consideration, entitled her to the relief asked.
Defendants claim there' was sufficient evidence to overcome the statutory presumption; that plaintiff declared she made no claim to the deposit and voluntarily joined in placing the same in the hands of the executor, that the attorney for the estate was under no obligation to advise plaintiff of her legal rights and his silence was proper and plaintiff’s claimed mistake does not entitle her to any relief.
While it is true that the attorney for the estate was under no obligation to advise plaintiff as to her legal rights, of which we must assume he was fully aware, inclusive of the law, that her rights were not contingent upon contribution to the deposit and that her disclaimer was manifestly based on a iñistake engendered by his noncontrolling questions, he was bound to recognize her manifest ignorance and not plant advantage to the estate thereon.
The express intention of Miss MacFarlane, in the original application creating the deposit, stands unaffected by subsequent acts on her part and, there having been no fraud or undue influence, we must let stand what she let stand to the time of her death. Had she desired otherwise she was enabled at any time to withdraw the whole or any part of the deposit.
Under the evidence and the law sole title to the deposit vested in plaintiff at the death of Miss MacFarlane, and plaintiff’s release of such right and title was by reason of ignorance of her rights and the mistake brought about by questions well calculated to impress her as vital to her right to claim the deposit.
This is a clear case calling upon the court of equity to place the parties and their rights and obligations where they belong.
The decree of the circuit court is reversed, and a decree will be entered in this court setting aside the transfer of the deposit, restoring ownership thereof to plaintiff, and requiring the executor of the estate of Etta E. MacEarlane, deceased, to repay the money with interest thereon at five per cent, per annum.
Plaintiff will recover costs.
Btjtzel, C. J., and Bushnell, Sharpe, Potter, Chandler, North, and McAllister, JJ., concurred. | [
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