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Wiest, J.
The parties were formerly husband and wife. They were married in February, 1918, and divorced in April, 1927. The divorce was granted on the application of the husband and without opposition by the wife. Plaintiff’s father, who lived in Pennsylvania, in his will left her a legacy subject to a life estate in her mother, and in March, 1926, plaintiff assigned the legacy to defendant for a stated consideration of $2,500. The defendant had the assignment recorded in Pennsylvania after the divorce. The bill herein was filed in July, 1936, to set the assignment aside on the grounds of coercion, intimidation, and fraud. In his answer to the bill defendant offered, upon return of the $2,500, with interest, to re-assign to plaintiff.
During the marriage plaintiff was a clerk and stenographer in defendant’s law office. Defendant was an attorney at law but in 1936 resigned from the bar. During the time of the marriage defendant received large sums of money from real estate transactions and made deposits in various banks in the joint names of himself and wife.
At the hearing, when plaintiff was asked by her counsel whether she received $2,500 for the assignment, she made the equivocal answer:
“I didn’t receive in particular, $2,500, no, sir.
“Q. Did you receive, from time to time, sums of money?
“A. Large sums of money, yes. I was conducting Ms business in my name. I wrote checks.”
Later she denied receiving any consideration. Plaintiff testified:
“Q. Now, during all those years, he supported you very handsomely, did he not ?
“A. Yes, he did. And he had great confidence in me. He had his bank account jointly with me, and I had a right to draw on his account, as well as himself. * * * He bought me several automobiles. He bought me a Hudson, bought me a Cadillac roadster, and he bought me a Cadillac coupe. ’ ’
She claims that her mother, who had life use of the estate of her father, offered to accept 60 per cent, of the estate and divide the other 40 per cent, among the children, who were residuary legatees, and when she informed defendant thereof he said:
“I was crazy and I should be put in an institution. He further said he would see that I would be, if I went and did anything like that. I was absolutely insane. I did not make any assignment to my mother. * * * He was continually threatening me, my life, and my sanity. He was going to have me placed in an institution, and he threatened me with his revolver, and other things. * * * He said that is where I should be, and that is where he would see I would be. I was not a fit person to look after my own affairs. During all that time, however, I was taking care of his office. He said to me further with regard to this assignment, and the purpose of it, that he wanted me to sign this for my own protection, that I was not a fit person to look after my own affairs. I was all right to look after other people’s affairs, not my own. He wanted me to sign this for my own protection, so that I would not jeopardize my interest in the estate. * * * He would look after my interest, and any time anything should come up, he would see I was taken care of promptly. * * * My mother is still alive. There has not been any of this legacy paid since that time, to me or any of the children. ’ ’
She claims he threatened her several times with . a cocked revolver, stating:
‘ ‘ At the time it just looked like a revolver. It was ready to pop. It was all cocked; I heard him cock it. He was holding it for three hours. All I saw was the muzzle pointing at me. He did not hold it against me, just about the distance that you are away from me now, for three hours.”
Rather a tiresome ordeal for both parties, if it occurred.
.Defendant denied the allegations of plaintiff, and claimed that she wanted to realize something out of the estate without awaiting the death of her mother and he paid her $2,500 in cash for the assignment.
The record discloses that a view of the witnesses must have been of aid in weighing what they said.
The court found that defendant had met the burden of proof in establishing fair dealing with his wife in reference to the assignment and that plaintiff’s long delay in asserting the wrong she now alleges weakened her present claims of coercion and fraud.
We have reached the same conclusion.
The decree in the circuit is affirmed but defendant, not having filed any brief, will not recover costs of this court.
Butzel, C. J., and Bushnell, Sharpe, Potter, Chandler, North, and McAllister, JJ., concurred. | [
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Butzel, J.
Plaintiff in Ms appeal seeks mandamus to compel the department of labor and industry to issue to Mm a certificate of judgment. Plaintiff was injured on November 8, 1928, and shortly thereafter entered into an agreement for compensation with the Royal Indemnity Company, insurer of the employer. The agreement was approved December 8, 1928. On April 3, 1929, plaintiff signed a settlement receipt which was never approved by the department. On July 17,1933, the department adopted general order No. 30 approving all final settlement receipts filed prior to the 17th of April, 1932, in all cases in which no proceedings had been commenced to take judgment, reopen, or for further compensation, and also, in which no proceedings had been had or commenced by either party for more than one year prior to April 17,1932.
On January 14, 1937, almost seven years after the settlement receipt was filed, plaintiff requested a certificate of judgment and a seven days’ notice was sent by the department to the employer. On January 19, 1937, an order was issued recognizing the request as a petition for the review of payments, and the case was set for hearing. Plaintiff recognized said order and procedure for he gave notice of the taking of depositions for use at the hearing. On February 11,1937, the department, evidently through some error, forwarded to the employer notice of request for certificate of judgment, but upon the department’s attention being called to the error, it advised plaintiff’s attorney that a certificate would not be issued until after a hearing and a finding that plaintiff was entitled to the certificate. Thereupon plaintiff sought mandamus in this court. On April 19, 1937, after the instant mandamus proceeding was begun, defendant employer filed with the department a petition requesting approval of the final settlement receipt, or in the alternative, a review of the payments made. It claims that this is the proper method of procedure. Plaintiff, on the other hand, claims a certificate of judgment as a matter of course. ,
The question of the validity of general order No. 30 was considered in Weaver v. Antrim Iron Co., 274 Mich. 493. We held that it was not a blanket approval of the settlement receipts so as to preclude parties from an opportunity of a further hearing. We stated the correct rule as follows:
“The validity of a general order might be questioned if it is claimed to be a blanket approval of thousands of settlement receipts without any other notice to the parties or opportunity given them for a hearing upon its application to the matter affected. The general order does not purport to have such effect nor has the department so treated its applicability. Its primary purpose was stated in Giampa v. Chrysler Corp., 272 Mich. 327. The department has treated the order, not as a blanket approval of settlements, but as merely casting the burden of proof upon the party attacking the settlement and requiring such petitioner to show that the settlement should not be approved.
“The ordinary practice in adjudging such settlements would be to give notice to the parties and hear them. Instead of doing this in all cases, it is evident that the department, in order to avoid multiplicity of proceedings and conveniently to administer the law, has very properly taken occasion to examine into and adjudge the approval of old settlement receipts in connection with petitions to review payments or for further compensation. It has also ordered hearings on settlements when a certificate has been sought for the purpose of instituting proceedings to recover a judgment at law.
‘ ‘ Obviously, the determination by the department of the approval of a settlement is the first step in such cases. If it be approved, the employee must show a subsequent change of condition in order to recover an award. If the settlement is not approved, the original award stands in full force, subject to the power of the department to review payments. Under its power to review payments, the department is called upon to determine the physical condition of the employee from time to time, after the settlement receipt was made, together with earnings, if any, payments made by the employer, if any, and his earning capacity, and then make such determination of the amount due him as the facts warrant. The amount thus found would be a sum for which the employee would be entitled to a certificate for judgment. * * * In so finding, the department first passed upon and denied approval of the settlement receipt, and then, on review of payments, determined that plaintiff was entitled to the whole of the original award. While, strictly speaking, the finding was not an award of compensation, it amounts to a determination of the sum for which plaintiff is entitled to a certificate for the purpose of proceedings at law. So construed and with such effect, the order is affirmed. ’ ’
To like effect, see Morgan v. Chevrolet Motor Co., 255 Mich. 602; Stetu v. Ford Motor Co., 277 Mich. 468. In. the cases cited by plaintiff, the point involved was not raised.
Plaintiff’s petition for a writ of mandamus is denied, with costs to defendant.
Read, C. J., and North, Wiest, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Wiest, J.
In an automobile accident Merton J. Story, 17 years of age, received injuries causing his death. His parents, sole heirs at law of his estate, executed a release of plaintiffs herein from liability, on account of the accident and death, upon payment of $235. Thereafter, the father of the deceased was appointed administrator of the estate and brought an action at law ag'ainst plaintiffs herein and the Otsego Sanitary Milk Products Company to recover damages under the survival act. Thereupon plaintiffs filed the bill herein against Mr. Story, individually and as administrator of the estate, Lottie M. Story, mother of the deceased, and the Otsego Sanitary Milk Company to obtain a decree declaratory of their rights under- the mentioned release and to restrain prosecution of the action at law.
The bill was dismissed on the ground that it was not a case for a declaration of rights as plaintiffs had an adequate remedy in the action at law. Plaintiffs review by appeal.
The action at law has been tried, with judgment therein for the administrator, and that action has been reviewed. Story v. Page, ante, 34.
The case at bar involved issues of fact properly triable in the action at law, and the court was right in dismissing the bill.
The decree is affirmed, with costs to defendants Story.
Fead, C. J., and Forth, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred.
See 3 Comp. Laws 1929, § 13040 et seq. — Reporter. | [
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Wiest, J.
A mortgage upon the property of plaintiff company was foreclosed by advertisement. Defendant Valvoline Oil Company, holder of a junior mortgage, was the purchaser at the sale and filed the sheriff’s deed with the register of deeds, to become effective at the expiration of the period of redemption. A few days before the expiration of the period of redemption plaintiff filed a bill in equity invoking provisions of the moratorium statute (Act No. 98, Pub. Acts 1933) and thereupon the court granted an injunction and after a hearing and in a signed opinion, but without any order entered thereon, stated that plaintiff was entitled to relief under the act, and fixed the rental to be paid by plaintiff at $20 per month, to be paid monthly in advance. Subsequently an involuntary proceeding in bankruptcy was brought against plaintiff and in that proceeding the Valvoline Oil Company, by petition, obtained from the Federal court an order releasing the premises here involved under a finding that plaintiff herein had no right, title or interest therein. Then the Valvoline Oil Company petitioned the circuit court to dissolve the injunction and thereby make the sheriff’s deed effective. The circuit court dissolved the injunction and declared the sheriff’s deed to be in full force and effect.
It appears from the pleadings that plaintiff never paid any of the rental mentioned.
As before stated the court filed an opinion granting relief under the moratorium statute but no order was ever entered.
Plaintiff contends that the opinion served as an order, while defendant asserts that the opinion merely granted an order and calls attention to the provisions of Court Rule No. 10, § 5 (1933):
“Whenever an order has been granted in any chancery proceeding it shall be presented for signature within five days after the granting of the same. If such order is not so presented or time extended by the court, it will be considered as abandoned.”
We have repeatedly held that:
“Courts speak through their judgments and decrees, not through their opinions.” Boyle v. Berg, 242 Mich. 225.
See, also, Harnau v. Haight, 212 Mich. 66, and cases there cited.
Had an order been entered review thereof might have been had, but mere opinions are not reviewable.
Plaintiff never had an order under the moratorium statute; the adjudication in the bankruptcy proceeding should have been observed and the circuit court was fully justified in ending- the delay. There is no merit in the appeal.
Affirmed, with costs to defendant Yalvoline Oil Company.
Fead, C. J., and North, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Chandler, J.
The defendant is the owner and operator of a feed mill and lumber yard. Plaintiff was employed by him as a general laborer. In addition to other duties, plaintiff operated the machinery supplying the power for the feed mill. The source of power is a Diesel type engine, driving a main shaft to which the balance of the machinery is connected by a system of belts and pulleys. The Diesel engine is started, when warm, by means of compressed air supplied by an air compressor operating from the drive shaft. When cold, however, it is necessary to revolve the engine by the use of a small electric motor until it will operate of its own power.
On the morning of February 9, 1935, plaintiff was using the electric motor for the purpose of starting the Diesel engine. The pressure in the compressed air tanks was low and he decided to increase the pressure while starting the engine. To accomplish this purpose, he went to the basement of the building* to place the belt running to the air compressor on a pulley which was then revolving on the main shaft. In so doing, his hand was caught, between the belt and the pulley, resulting in fractures of his arm.
Plaintiff’s declaration alleges negligence in that the defendant did not furnish an idler pulley either upon the drive shaft or the air compressor and thereby eliminate the danger of injury. The record reveals that a clutch was provided whereby the drive shaft could be disengaged from the source of power and that the employees, including plaintiff, had been instructed by defendant not to place the belts upon the pulleys without first stopping the shaft by means of the clutch.
The cause was tried before the court without a jury. Plaintiff appeals from a judgment for defendant.
Defendant, at the time of the injury, had elected not to be subject to the provisions of the workmen’s compensation act, Act No. 10, Pub. Acts 1912 (1st Ex. Sess.), as amended. (2 Comp. Laws 1929, § 8407 et seq.) Both plaintiff and defendant, in their briefs, concede that plaintiff cannot recover if he was guilty of wilful negligence. 2 Comp. Laws 1929, § 8407. Without regard to this question, a careful examination of the record does not to our mind reveal negligence on the part of defendant.
Plaintiff does not allege a violation of a statutory duty on behalf of defendant (2 Comp. Laws 1929, § 8330) but rests his case upon an alleged violation of a common-law duty in that defendant failed to provide an idler pulley either upon the line shaft or the air compressor to eliminate the danger of injury.
The record in many respects is meager. It does not indicate the size of the pulley causing the injury nor the material of which it was constructed. Nor does it reveal the speed of the drive shaft, although there is some testimony to the effect that some of the machinery was operated at the rate of 3,000 revolutions per minute.
It is undoubtedly the duty of the master to provide his servant with a reasonably safe place to work and to supply him with suitable machinery and appliances for his safety in the performance of such work. Swoboda v. Ward, 40 Mich. 420 (15 Am. Neg. Cas. 752, 16 Am. Neg. Cas. 1); VanDusen v. Letellier, 78 Mich. 492. See, also, Washington & Georgetown R. Co. v. McDade, 135 U. S. 554 (10 Sup. Ct. 1044). But proof of the mere happening of an accident and the resulting injury is not of itself sufficient to establish that defendant breached his duty in this particular. Plaintiff made no showing that defendant failed to use due care for his safety under the existing circumstances. No effort was made to adduce evidence as to the standard of care exercised by other employers using machinery of the type to be found in defendant’s mill. In the absence of at least a showing that it was customary to provide idler pulleys under similar conditions, defendant cannot be held guilty of negligence. See Walters v. Wolverine Cement Co., 148 Mich. 315.
Judgment affirmed, with costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Potter, JJ., concurred. | [
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Bushnbll, J.
The receiver of J. E. Farber Company, a Michigan corporation (see In re Petition of Farber, 260 Mich. 652), sold certain machinery, tools, fixtures, office furniture and equipment to plaintiff bank under an order of the court. Claiming that defendant John E. Farber had unlawfully detained some of this property, plaintiff brought an action of replevin. Defendant’s answer to plaintiff’s declaration alleged that certain reamers, milling cutters, drills, gauges and small tools therein described, were the property of Edward E. Farber, who was later granted leave to intervene. Testimony was taken before a jury who found in favor of the defendants; and as to defendant Edward E. Farber, who had waived return of the property, verdict and judgment was against plaintiff in the sum of $1,300 and costs, and plaintiff appeals therefrom.
Appellant contends that the question of intervener’s possessory rights is res judicata because of a certain order of Circuit Judge G-adola in the receivership matter; that the present claim is a collateral attack upon the receivership proceedings, and that appellee is now estopped by his failure to assert bis rights in that action. Plaintiff further asserts that the testimony shows that a demand for the delivery of the property involved would have been futile and says the court erred in submitting the question of demand to the jury.
Acting upon information that John E. Farber claimed to own certain personal property then in the possession of the receiver, the latter filed a petition on July 11, 1933, for an order requiring John E. Farber and John E. Farber, doing business as the Reflex Light Company, or any other claimants to any of the property in possession of petitioner, to show cause why their claims should not be denied.
The personal property in this replevin action, claimed to be owned by the Farbers, were tools stored in a small building adjacent to and connected with the main plant of the J. E. Farber Company. This small building was owned by John Farber and rented to the Farber Company for one dollar per year. John Farber testified that when the company was given possession of this building, he said, “Now, I want to reserve this corner for our tools.” However, when the receiver took possession of the premises, this building was also taken over by him, and the personalty therein thereby came into the possession of the receiver. This possession by the receiver did not, of itself, confer title, nor did it relieve the receiver from the consequences of any proper action to regain possession of chattels, if wrongfully in his possession. See Gutsch v. McIlhargey, 69 Mich. 377, and McAfee v. Bankers Trust Co., 253 Mich. 685. However, the taking over placed the personalty and the premises in the possession of the court through its receiver (In re Petition of Chaffee, 262 Mich. 291).
The petition of the receiver resulted in an order of the circuit court dated July 11, 1933, requiring “John E. Farber * * * and any other claimant to any of the real or personal property belonging to the J. E. Farber Co., Inc., and now in the possession of Paul H. Kelly, receiver,” to appear and show cause why their claims should not be denied. Notwithstanding the apparent limitation to property “belonging to the J. E. Farber Co.,” the plain import of the order required anyone claiming ownership or right to possession of property in custodia legis to establish his claim. John Farber and Edward Farber, as parties to the receivership cause, were bound by that order and recognized its import.
The same day, July 11, 1933, John E. Farber filed a petition to obtain possession of chattels held by receivers in which he stated under oath:
“1. That certain tools and equipment described in exhibit ‘A’ hereto attached and by reference made a part hereof, together with certain dies used exclusively in making reflex truck lights and certain completed automobile blocks, are in the buildings and premises occupied by the J. E. Farber Company, Inc., which company is now in receivership under the control and direction of this court.”
Farber’s petition alleges:
‘ ‘ That your petitioner, either by lease, conditional sales agreement, agency contract or power of attorney, is entitled to possession of the above described tools, equipment, dies and automobile blocks.”
Exhibit “A” specifically describes certain claimed chattels, not in dispute herein, and concludes with this phrase,
“Miscellaneous small bench tools, drill punches, etc., for use in assembling’ lights. ’ ’
On July 27, 1933, the circuit court ordered the receiver to surrender possession to John Farber of the chattels described in the latter’s exhibit “A.”
The testimony indicates that the receiver did not carry out the order as to the personalty therein described.
The real question is whether the tools in dispute herein are the same as those described as “small tools” in the order of dissolution. This question was discussed during* the trial, but apparently was not put in issue by the pleadings nor mentioned in the charge of the court and we are thereby precluded from deciding the question. Fowler v. McQuigg, 222 Mich. 178.
The defendants, being’ parties to the receivership proceedings, are bound by the order to show cause and by Farber’s petition. Unless the tools involved in the replevin action can be shown to be included in the “small tools” mentioned in the order of dissolution, appellees are estopped to assert any claim thereto.
“This question was answered in Harrington v. Huff & Mitchell Co., 155 Mich. 139, by quoting from Henderson v. Henderson, 3 Hare, 100 (67 Eng. Rep. 313), where the vice-chancellor said:
“ ‘In trying this question, I believe I state the rule of the court correctly, when I say, that where a given matter becomes the subject of litigation in, and of adjudication by, a court of competent jurisdiction, the court requires the parties to bring forward their whole ease, and will not (except under special circumstances) permit the same parties to open the same subject of litigation in respect of matter which might have been brought forward as part of the subject in contest, but.which was not brought forward, only because they have, from negligence, inadvertence, or even accident, omitted part of their ease. The plea of res judicata applies, except in special cases, not only to points upon which the court was actually required by the parties to form an opinion and pronounce a judgment, but to every point which properly belonged to the subject of litigation, and which .the parties exercising reasonable diligence, might have brought forward at the time.’ ” McDannel v. Black, 270 Mich. 305, 311.
If the personalty in dispute was included in the order of dissolution, the Farbers might possibly compel a surrender of possession by appropriate proceedings.
Plaintiff has derived its right to possession from the court itself, through its receiver, and under the facts presented in this appeal, defendants have failed to prove a right to possession.
Defendant John Farber claimed that he lawfully and peacefully repossessed the personalty in question and that proper demand to surrender the same had not been made by plaintiff. He testified:
“I finally got friendly with the watchman, and one day Mr. Overton come down to court and I asked the watchman if I could go in that part of my building, I wanted to look at a beam, which I did. He said, ‘All right.’ So we walked out there together. When we got in there I turned around, I looked around a little while, and I said, ‘Well, I guess you better g*et out of here.’ He said, ‘What do you mean?’ ‘Just what I am telling you. Now, get out. I have taken possession.’ That was the first time that I had any kind of an opportunity to get possession of it.”
It was unnecessary for plaintiff to make a formal demand upon defendants in view of the artifice by which John Farber gained entrance to the premises and consequent possession of the property. Reeder v. Moore, 95 Mich. 594.
“A previous demand is not necessary in order to maintain replevin where the original taking or possession of defendant is shown to have been wrongful, as where defendant obtained property by fraud.” 54 C. J. p. 450, § 70.
The judgment is reversed and a new trial granted. Costs to appellants.
Fead, C. J., and North, Wiest, Btttzel, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Bushnell, J.
Appellant filed a bill in equity for the specific performance of an oral contract to make a will. He sought a decree requiring defendant Helen Aylward Luyckx to convey certain real property, and directing defendant Edmun'd T. Luyckx, as administrator of the estate of Elizabeth Aylward, deceased, to transfer 400 shares of the capital stock of the ft. L. Aylward Coal Company, a Michigan corporation. All of this property was owned by Elizabeth Aylward at the time of her death. At the time the alleged oral contract was made, plaintiff was employed by the coal company as its manager under an unexpired, 10-year written contract. It is his claim that Miss Aylward agreed that in consideration of his continuance as manager of the business after the expiration of this contract, and so long as she might live, she would will him all this property, which represented all her interest in the coal company.
After testimony was taken in the circuit court, a decree was entered dismissing plaintiff’s bill. Some of the background of the present litigation may be found in the following reported cases: In re Aylward’s Estate, 243 Mich. 9; R. L. Aylward Coal Co. v. Luyckx, 261 Mich. 394; and Luyckx v. R. L. Aylward Coal Co., 270 Mich. 468. The bill of complaint in the instant case was filed shortly after our determination of R. L. Aylward Coal Co. v. Luyckx, supra, which, case involved an alleged lost will and testament of Miss Aylward.
The legal principles applicable to the enforcement of oral agreements of this nature are set forth in Van Houten v. Vorce, 259 Mich. 545. We said in that case:
“ There must be something more than a mere unexecuted intention to make a will. There must be a contract, a meeting of minds, an agreement based upon a sufficient consideration, clearly proven, and such acts of part performance as to remove the parol agreement from the operation of the statute of frauds (3 ,Comp. Laws 1929, §13411).”
Specific performance of an oral contract to convey or devise real property is a matter of grace and not of right. The question of whether such relief is to be granted must be determined by the circumstances of each case. Denby v. Dorman, 261 Mich. 500, 505.
In this trial de novo, decision rests upon whether there was sufficient proof of the claimed oral contract. Mr. Frank W. Atkinson, an attorney, testified for the plaintiff. He had been retained by Miss Aylward to try the contest of the will of Mary Aylward (See In re Ayhward’s Estate, supra). Mary Aylward was the mother of Elizabeth Aylward and the grandmother of Helen Aylward Luyckx, defendant herein. The will contest was terminated by the denial of a rehearing in October of 1928, and Mr. Atkinson concluded the matter in January or February of 1929 when the legacy was paid to Helen. He again represented Miss Aylward in May of 1929 in connection with the examination of an abstract of title, as a result of which lawsuits were begun by him and were not terminated until 1931. He stated that after 1931,
“I did not transact any further business for Elizabeth Aylward until she consulted me prior to her death about preparing a will for her. She first consulted me within a year of her death and consultations with her in regard to the will continued practically up until the time of her death.”
Over objection of defendants’ counsel that such testimony pertained to privileged communications, Mr. Atkinson was permitted to testify to certain conversations he had with the deceased during social visits with her from February to May of 1929. He stated that the coal business was almost invariably the subject of discussion, and that Miss Aylward told him that Harold King was going to remain in the business as long as she lived. At that time, Elizabeth Aylward had already given King a one-half interest in the business, and it is the testimony of Mr. Atkinson that she said:
“ H am content now, because after all that trouble, Mr. King has agreed to remain and conduct this business in the same way that he had before, and to look after my interests and my personal interests, as long as I live and when I die, the business and the property on Fort street will be Mr. King’s.’ * * * _^n(j giie later on, when she told me that she had agreed that King was to have the' coal property and the stock, that she did not want Mrs. Luyckx to have any of her property. I suggested that if .that was the understanding, that she should have her affairs fixed so that they would be carried out; and she said that Judge Hally had attended to that. She did not use legal phrases and say, ‘in consideration of this, I have agreed to do this, and in consideration of that, Mr. King has agreed to do that.’ ”
Passing the question of the admissibility of Mr. Atkinson’s testimony and treating it all as admissible, we do not think that it establishes a contractual obligation. Our observations in Paris v. Scott, 267 Mich. 400, are applicable to the situation presented by this appeal. We said in that case at page 403:
“In cases of this kind, the testimony of witnesses must be viewed with great caution, because of the frailties of memory, the improbability of repeating the precise language of a person since deceased, of fairly expressing the full state of mind of such person, and because the change of a word may mean the difference between a binding contract and a mere expression of intention. Care must also be taken lest the court, out of consideration of equity or sympathy, make a contract for the parties where none existed, even though such contract might or would express their desires. Where the alleged contracting parties cannot testify, their acts loom large as compared with what witnesses say they said.
“Without attacking the credibility of any of the witnesses, the case presents persuasive indices that the conversations relied upon were merely expressions of intention rather than of a contract which Fred and Alice Paris considered binding on them. ’ ’
We also said in Wild v. Wild, 266 Mich. 570, 572:
“Proof of admissions is concededly the most unreliable known to the law. It should be received with caution and subjected to careful scrutiny as no class of evidence is more subject to error or abuse. Witnesses having* the best motives are generally unable to state the exact language of an admission and are liable by the omission or the change of words to convey a false impression of the language used. No other class of testimony affords such tendencies or possibilities for nnscrnpnlons witnesses to torture the facts or commit open perjury as it is often impossible to contradict their testimony at all or at least by any other witness than the party himself. 2 Jones, Commentaries on Evidence, §295.
“ ‘A fortiori where the admission is that of one deceased the caution should deepen into suspicion for reasons that are obvious and without corroboration is of little value.’ 2 Jones, Commentaries on Evidence, § 295.”
The record shows that on January 28, 1932, three days prior to the death of Miss Aylward, she executed a renewal lease for a further period of 10 years upon the real estate in question, which was then occupied by the corporation for its coal yard, notwithstanding the fact that the lease then in existence did not expire until September 1, 1932. According to its terms, the lessee was not required to exercise its option of renewal until the 1st day of April, 1932. The renewal of this lease was drawn by Mr. Atkinson and he witnessed the instrument. Plaintiff, Harold N. King, executed this document on behalf of the R. L. Aylward Coal Company, the lessee. The natural query is, that if King, on January 28, 1932, had an agreement with Elizabeth Aylward under the terms of which he was to receive her entire stock holdings in the lessee company, as well as the title to the real estate, why was it deemed necessary that a 10-year extension .of the lease be secured at that time?
Mr. Atkinson had been requested by Miss Aylward to prepare a draft of her last will and testament, and he said that at the time Miss Aylward died, the draft was completed with the exception of writing-in the specific amounts of two bequests. He testi fied that Miss Aylward died on Monday and that the will whs completed with these two exceptions on the preceding Saturday. The draft of this proposed will was received in evidence and it shows that plaintiff was to receive one-half of the coal company stock owned by Miss Aylward and an undivided one-half interest in the realty. Mr. Atkinson was questioned about the discrepancy between the draft and the claimed oral agreement; we quote- his replies to certain questions propounded by the trial judge:
“The Court: Right along that line, Mr. Atkinson, just as a matter of information, when you testified with regard to the provision of this will that you drew up before her death, you had in mind the agreement that she told you she had made between herself and Mr. King?
“A. Yes, I did, your honor.
“The Court: Well, with that in mind, I ask you whether such an agreement as you claimed was made with her was irrevocable?
“A. I think so, as a matter of law.
“Q. If you knew as a matter of law when the agreement was made that it was irrevocable, why did you allow her to disregard the agreement?
“A. She wanted the will made that way. There had been a change in the situation between herself and the Luyckx family. She was interested in Mrs. Luyckx’s children. She looked on Harold King in the same way as she had Dick, the same as if they were brother and sister. I knew from my knowledge of the history of the coal company and the Aylward family and of.Harold King’s connection with it, that the paramount thing that he wanted to accomplish and that they all wanted to accomplish was his control of the coal business. It was my honest belief that so long as Mrs. Aylward carried her agreement with Harold King out substantially so that he would control this coal business and this property, that he would have no objection to her giving to these children a part of the real estate. * * *
“The Court: As I understand it, you didn’t tell her as a matter of law she could not properly break this agreement ?
“A. I didn’t tell her in so many words, your honor, because she herself called my attention to the fact that it was not strictly in accordance with her agreement, and asked me if I thought King would object.
“The Court: Well, all right.”
Mr. Atkinson further testified that after the will contest, Judge P. J. M. Hally, personal counsel for Miss Aylward, called him and suggested that he visit her. Mr. Atkinson did not conclude the will contest until 1928; the testimony developed the fact that Judge Hally died in 1926. In explaining this apparently honest error, Mr. Atkinson stated that the occurrence took place over seven years ago and “the picture itself in some particulars was probably a little confused in my mind.” This treachery of memory might well have affected Mr. Atkinson’s recollection of other important incidents in the formation of the alleged oral contract, which also took place the same number of years before he was called upon to testify in the instant case. We direct attention to this phase of the testimony for the purpose of emphasizing the rule stated in Paris v. Scott, supra, and applied in comparable terms in Wild v. Wild, supra; Zack v. Gunderson, 268 Mich. 88; Moyer v. Hafner, 272 Mich. 52; and McClellan v. Moore, 272 Mich. 630.
Bernard II. Johnson, a former vice-president of the Peninsular State Bank, also testified for the plaintiff. He had a number of discussions with Miss Aylward with respect to the coal business and stated that she talked about Mr. King and said she was going to give him her stock in the coal company as well as the real estate. This, he understood, was because of their long association in the business and in consideration of King’s continuance therein. Mr. Johnson testified that he was under the impression that these transfers were to be made “right away,” and that Miss Aylward was to retain the dividends on the stock as long as she lived. At best, Johnson’s testimony merely indicates an intention on the part of Miss Aylward to make a gift and is not the kind of testimony that we have held necessary to establish an oral agreement to make a will. Van Houten v. Vorce, supra; Schulz v. Steffey, 275 Mich. 409; and the other cases herein cited. All the testimony, examined in the light of the acts of the parties, proves no more than an intention on the part of the deceased.
A further analysis of the evidence will be of little benefit, although all of it has been examined. We are compelled to. conclude that appellant King has failed to sustain the burden of proof required by the authorities herein cited and quoted. Because of this determination, a consideration of the other questions raised by the appeal is unnecessary.
The decree of the circuit court is affirmed, with costs to appellees.
Fead, C. J., and North, Butzel, Sharpe, Potter and Chandler, JJ., concurred with Bushnell, J. Wiest, J., concurred in the result. | [
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North, J.
This is a suit in assumpsit by plaintiff against the city of Dearborn. In the first paragraph of her declaration she alleged that on .the 9th day of January, 1930, the defendant hired her as a seamstress in the welfare department of the city and agreed to pay her at the rate of 50 cents per hour for her work. The foregoing was admitted by defendant’s answer. In paragraph two plaintiff alleged that she worked for the city 3,438% hours and by so doing* earned $1,719.25. Defendant denied this and affirmatively alleged that “the total amount of time which plaintiff worked for the city of Dearborn was 288 hours and that the amount of wages earned was a sum of $114.” In paragraph three plaintiff alleged she had been paid on account $836.25 (probably $886.25) “leaving a balance due your plaintiff of $833. ’ ’ Defendant denied this and affirmatively alleged “that aid in the form of pro visions, milk, fuel, rent and miscellaneous advances given to the plaintiff amount to $145.32, leaving’ a balance in favor of the city, now unpaid, of $31.32, ’ ’ and defendant asked judgment in its favor for this latter amount. The case was heard without a jury, and plaintiff had judgment for the amount alleged to be due her in her declaration, $833. Defendant has appealed.
The first question presented is whether there was abuse of discretion by the trial court in denying defendant’s motion to amend paragraph one of its answer. The answer was filed November 17, 1934. On January 21, 1936, the cause came on for hearing, under part 2, rule 5 of the local rules of the Wayne county circuit court, upon the pre-trial docket. This preliminary hearing, presided over by Judge DeWitt Merriam, was for the purposes indicated in the rule, which we quote in part:
_ “Law cases will be called on this docket sometime before they are regularly reached for trial; for the purpose of settlement, disposition of preliminary motions, framing the issues and trial. ’ ’
As a result of this pre-trial hearing, at which the respective attorneys were present, a report was filed by the pre-trial judge that both parties were satisfied with the pleadings and that the pleadings should not be amended “unless necessary to support proofs offered — it’s up to trial judge.”
The case was reached for a hearing on the merits on March 9, 1936. On March 6th, counsel for defendant gave notice to plaintiff’s counsel that upon the trial of the cause the defendant would ask to have its answer amended, setting forth a copy of the proposed amended answer wherein defendant denied the allegations of paragraph one of plaintiff’s declaration, instead of admitting them as in the defendant’s original answer. The proposed amended answer to paragraph one of the declaration was as follows:
“Defendant denies paragraph one of plaintiff’s declaration and states the fact to be that plaintiff applied for welfare aid and incidentally stated that she would be willing to work in return for the aid given her and that no contractual relationship of employer and employee existed at any time between plaintiff and defendant.”
On the day the case was reached for trial, the same having been assigned to Judge Joseph A. Moynihan, the question of amending defendant’s answer was presented. Judge Moynihan referred the matter to Judge Merriam who had presided at the pre-trial hearing. Judge Merriam declined to act upon the proposed amendment, taking the position that it should be disposed of by the trial judge. The matter was ag’ain presented to Judge Moynihan and the proposed amendment denied. The case was then referred to a commissioner for the purpose of taking testimony as to the number of hours plaintiff had worked and the extent to which she had been paid. Defendant’s application to amend the answer was renewed before the circuit court commissioner and by him denied. The scope of the proceedings before the circuit court commissioner is accurately indicated by the following statement in his findings:
“The only thing before me in this matter is the number of hours at 50 cents per hour the plaintiff worked for said city and whether or not any money or things of value was paid by the defendant to the plaintiff for said services.”
Evidently without being mindful of the allegations contained in plaintiff’s declaration, the commissioner concluded from the testimony produced before him that the amount earned by plaintiff and unpaid with accrued interest thereon was $1,920.03; and he reported to the circuit court that plaintiff should be allowed to recover that amount. Objections were made to the report of the commissioner and upon hearing disallowed. Defendant’s motion to amend the answer was renewed at this time and again denied; also defendant’s motion for a new trial was denied, but upon remittitur which reduced the judgment to $833 and costs.
By statutory provision trial courts have the power to amend for the furtherance of justice. 3 Comp. Laws 1929, § 14144. In a very large measure this matter of amending pleadings is one of discretion with the trial court. Kerr v. City of Detroit, 255 Mich. 446; Grant v. National Manufacturer & Plating Co., 258 Mich. 453. The ruling of the trial court in such matters should not be disturbed except upon a showing of an abuse of discretion. The record in the instant case does not disclose an abuse of discretion. People, for use of National Regulator Co., v. Rosewarne, 247 Mich. 22, Morocco v. Lange, 266 Mich. 238. Obviously the local practice followed in Wayne county, whereby provision is made for pretrial hearings, gives a fair and reasonable opportunity for counsel to check their pleadings in advance of the day of trial. By so doing the inconvenience, delay and expense usually attendant upon amendments of pleadings after a case has been set for trial, with the parties, witnesses and possibly jurors in attendance, is avoided. In the instant case no showing was made which constituted a fair rea son for granting defendant’s application for amendment at any time prior to the hearing on the merits. It was not until after the testimony was taken and after the adverse report of the commissioner that defendant’s counsel made a showing that at the time he drafted and filed the original answer he relied upon information then given him “that the plaintiff had been hired and worked in said department as a seamstress at the rate of 50 cents per hour;” hut that subsequent to the pre-trial hearing' he “discovered that plaintiff had requested the privilege of working in the department in exchange for welfare aid furnished her and her family who at the time were in destitute circumstances.” But this showing was not made until April 17,1936. As noted above, defendant’s original answer was filed November 17, 1934, the pre-trial hearing' occurred on January 21, 1936, and the case was before the court for hearing on the merits in March, 1936. Under this record we are not prepared to hold that refusal of the proposed amendment to defendant’s answer was an abuse of discretion.
The only other question which should he considered on this appeal is defendant’s claim that the commissioner erroneously excluded testimony of welfare service rendered to plaintiff’s husband in payment of or exchange for her services to the city. No testimony was excluded which would tend to show payment to plaintiff or the delivery of groceries, fuel or supplies of any kind to her; hut testimony was excluded as to welfare service rendered to plaintiff’s husband. This was on the ground that plaintiff as a married woman could not he held liable for such charges; and defendant having admitted in its answer that plaintiff was hired by the city and worked for the city at the rate of 50 cents per hour, her claim could not be met under the pleadings by a counter showing of welfare service or supplies furnished to her husband. This contention on the part of plaintiff could not have been a matter of surprise to defendant because before the pre-trial hearing plaintiff had filed its plea to defendant’s affirmative pleading and therein stated as follows:
“That she (plaintiff) now is and has been for a great many years a married woman and that during the time of defendant’s alleged recoupment she was married and as such married woman she is not responsible for the matters set forth in defendant’s recoupment. ’ ’
The rulings of the commissioner on the admissibility of evidence conformed to the issues presented by the pleadings. Defendant offered testimony tending to show that the terms of plaintiff’s employment by defendant were different than alleged in the declaration and admitted in the answer. It was not error to exclude this testimony, or other testimony which might have tended to disprove the admitted allegations of plaintiff’s declaration.
We find no reversible error in this record. The judgment entered in the circuit court is affirmed, with costs to appellee.
Fead, C. J., and Wiest, Btjtzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Grant, J.
This suit is based upon two promissory notes, — one for $1,000, dated September 11, 1883; the other, November 7, 1887, for $2,000, — each payable one year from date. Defendant pleaded the general issue, with notice that the notes were barred by the statute of limitations, and an affidavit denying that he executed them.
Plaintiff is a daughter of the defendant. Simultaneously with the execution of the first note, plaintiff wrote, and defendant signed, the following statement:
“I think it best to make some explanation concerning the note of one thousand dollars ($1,000), given September 11, 1883, by me to Mrs. Caroline A. Shattuck. It is in part for timber taken from the 40 acres of land in township of Lenox, of which Caroline A. Shattuck has the deed, and the balance for failure on my part to plant an orchard of 100 fruit trees (according to agreement), and to keep up the fences, and to build a barn on the 40 acres of land, and feed out, on the land, the hay and straw that was raised thereof!, which I wished to do, and was prevented from doing by some one of my own family. I requestéd Caroline A. Shattuck to write this explanation. Also, she is not to compel me to pay the note during my lifetime unless I see fit to do so (unless I fail to secure her against losing it). This I sign of my own free will, because I consider it my duty to do so. There need be no question as to the validity of the note.”
A statement similar in character accompanied the second note, and reads as follows:
“I, Peter O. Hart, have this day given a note of $2,000 to Mrs. Caroline A. Shattuck, to be secured her against the loss of that amount of money that I have been over-persuaded and compelled, against my wishes, by Charles B. Hart and George L. Hart, to assist them in defrauding her of that amount of money, she having hired it to them, and I promised her that I would secure her from losing the money. The said Mrs. Caroline A. Shattuck is not to present the note for collection during my lifetime, if I continue to pay her sufficient on the note to keep it valid, unless she'has good reasons to think there is danger of loss by not presenting it for collection; of, if the said Charles B. Hart and George L. Hart shall pay to Mrs. Caroline A. Shattuck the amount of money they honestly owe her, then she is not to present this note for collection. This explanation is written at my request, and I sign it of my own free will.”
These statements were delivered to the plaintiff with the notes. She testified that these transactions were not to be mentioned to outside parties during her father’s lifetime.
Verdict and judgment were for the plaintiff on the first note. The jury expressly found that there was a valid consideration for the $1,000 note, and that there was no valid consideration for the $2,000 note. The land in regard to which the promise was made had been deeded by the defendant to the plaintiff as a gift, he reserving to himself a life-estate. Inasmuch as verdict and judgment were for the defendant on the second note, it is unimportant to discuss any of the questions in regard to it.
It is contended that there wás no consideration for the note of September 11, 1883, and that the note was void under the statute of frauds, because there was neither a memorandum in writing nor a part performance. The contract executed at the same time with the note shows the consideration for it, and is such a memorandum in writing as satisfies the statute. If the validity of the note depended entirely upon the promise to plant an orchard of 100 fruit trees and to build a barn, it might well be held that there was no consideration for the promise, because defendant was under no obligation to do either, and plaintiff neither paid nor promised anything for such improvements; but, if any timber was unlawfully removed from the land, this would constitute a valid- consideration. It is not necessary that the consideration be adequate. It is sufficient to sustain the promise if there be any. We therefore think it was not error to refuse to direct a verdict for the defendant.
It is next insisted that plaintiff cannot recover because she neither asked, nor did defendant refuse, to secure the note under the terms of the accompanying agreement. This statement was a part of the transaction, and it and the note must be-construed together. Sutton v. Beckwith, 68 Mich. 303; McNamara v. Gargett, 68 Id. 454; Dudgeon v. Haggart, 17 Id. 273; Eberts v. Selover, 44 Id. 519; Smith v. Van Blarcom, 45 Id. 371; Singer Manufacturing Co. v. Haines, 36 Id. 385. The failure to secure was a condition precedent to the right to sue, and demand and refusal were necessary to be shown. Plaintiff testified that she never asked the defendant to pay, and that she brought suit without having asked him for the amount, or presenting it in any way. She did not testify that she asked for security. Plaintiff claims, however, that such demand appears in the defendant’s testimony. On defendant’s cross-examination he testified to giving a certain lease to his son’s wife. This question was then asked:
“ And I see indorsed upon that lease the principal payment of all the rent due. That lease ran till 1897?”
This and other questions were answered, under objection and exception, as follows:
“A. I can’t tell how many pajunents were made. I offered to do it. I came and asked your advice on it. At the time I subsequently took back the conveyance — I took a conveyance of all this land back from George. There was a mortgage on the land when I took it back to Mrs. Shattuck, and he was indebted to me at the time, and at the time I knes^ also that he was indebted to Mrs. Shat-tuck, my daughter. I knew he was owing her some. She had talked with me when she was letting him have money, —of the fact that she had let him have money. She never asked me repeatedly to secure her. She never asked me. Since that she has. * * *
“ Q. So that, when you took back the titles to the 50 and 80, you owned the whole 160 acres, subject only to the mortgage there was on it?
“A. One mortgage on Charles’ of $800, and one on George’s of $1,000.
“ Q. And at that time you had no other obligations?
“A. Yes, sir; I had some indebtedness, — that is, I had signed with Charley; I can’t tell you how much. The two mortgages I had, I know, and the William Canfield mortgage amounted to about $2,400. I think it will show that on the records here. The mortgage was given to William Canfield by Charles Hart, — $800; 10 per cent, interest. Mrs. Shattuck never said anything to me about this' indebt edness of George and Charles to her. I just told you that she had asked me different times if T would not secure her. That was while I had title to the whole 160 acres, after I had deeded it and taken back the titles, that she' spoke to me about it.
“ Q. She told you about how much she had let them have?
“A. As near as I can remember, she claimed that she had let, I think it Avas Charles, about $400, and George about the same, she thought. At the same time she wanted to know, I know, if I wouldn't sell her my claims; not sell them, Jrai? give my claims. She wanted to know if they kept up the interest. I said no; they didn't keep up one dollar to ten. Then she wanted, to know how much they owed me. I said: ‘ Mandy, I can't state; I haven't looked it over; but it is more than I wish it was.' They didn't pay the interest on loans I made to them; they hadn't begun. I had to pay George for the lease of the house. I didn't pay it to George. I told you to pay it to Emma. My house burned five years ago last June, — the 14th of June. I never talked with her about giving her security. She has asked be, but I told her every time— Once she came and said you sent her to me .to see if she could get me to come down and see you with her; that you would arrange it so and so. I told her I wouldn’t do it;' I didn't do that kind of business."
The above is all the testimony bearing upon the question of demand for security. It seems entirely clear that this testimony had no reference to the $1,000 note, but to the money which was due from her brothers to her, and which she claimed her father had promised to pay.
Plaintiff evidently based her right to bring suit upon 'the evidence that the defendant had so disposed of his property to his children and grandchildren that he was unable to give security. It does not follow that, because one is possessed of little or no property, he cannot, through his friends or relatives, secure the payment of a debt. Whether the defendant was worth much or little was not the condition agreed' upon. Her right of action would be complete upon her demand, and his refusal, to furnish security. The evidence, therefore, of the leasing and other. transfers of his property, was incompetent, as was also evidence of .the dealings between him and the other children.
On cross-examination, plaintiff testified as follows:
“ The 40 acres of land was a gift to me. It was deeded to me. The note to make up that portion of the gift he had not fulfilled was also a gift, according to my theory."
It is contended that under this evidence the court should have directed a verdict for the defendant, as requested. We think, however, under all her testimony, it was a question for the jury to determine what she meant by this. The court, however, if requested, should have instructed the jury that, if the no'te was intended as a gift, the plaintiff could not recover, for in that event it amounted to no more than a promise to give, which might be revoked at any time. Delivery of the thing given is necessary to pass title.
Judgment should be reversed, and a new trial ordered.
McGrath, C. J.
I think the judgment in this case should be affirmed. Defendant denied the execution of the notes in question, and gave notice of the statute of limitations. ' Defendant, upon cross-examination, says:
“She never asked me repeatedly to secure her. She never asked me. Since that she has. * * * I just told you that she had asked me different times if I would not secure her. That was while I had title to the whole 160 acres, after I had deeded it and taken back the titles, that she spoke to me about it. * * * My house burned five years ago last June, — the 14th of June. I never talked with her about giving her security. She has asked me, but I told her every time— Once she came and said you [plaintiff’s attorney] sent her to me to see if she could get me to come down and see you with her; that you would arrange it so and so."
Plaintiff insists that her father, by various conveyances and transfers, has disposed of all of his property to his other children and grandchildren, and that she protested against these acts because they left him without support, and without ability to meet his obligations to her. Her brothers were also indebted to her in the sum of $2,200, and in her conversations with her father she referred to this indebtedness as well as that of her father to her. The testimony of defendant, above given, is in some instances associated with her conversations regarding the indebtedness of her brothers to her, and undoubtedly refers to it, but in other instances it is not so associated, and does not necessarily apply to that indebtedness. The testimony comes to us in the narrative- form, and statements made upon cross-examination are not necessarily related to those immediately associated with them.
The plain inference from this record is that, upon the trial below, the demand for security was not questioned. The defense was that defendant did not execute the notes in question, and that they were without consideration. In the charge of the court to the jury, no reference is made to the question of demand for security. No request was submitted by defendant upon the subject. The assignment under which defendant seeks here to raise the question is the refusal of the court to give a general request directing á verdict for defendant.
The judgment is affirmed.
Long, Montgomery, and Hooker, JJ., concurred with McGrath, C. J. | [
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Hooker, J.
The defendant was a creditor of one Doyle. On March 24, 1891, it and Doyle made a written contract, by which Doyle agreed to drive a quantity of logs for it. On the same dajq plaintiffs guaranteed said contract, ffand the payment of the men promptly, by W. H. Doyle,” in writing, upon the contract, and in. defendant’s presence. Immediately below this guaranty was the following, viz.:
“ I hereby sell and assign to F. E. Bradley & Co. all my right, title, and interest in and to the within contract, and direct that all payments to become due on this contract to me be paid to them. W. H. Doyle.
“Dated March 24, 1891.”
On April 7, 1891, a contract was made by telegraph between Doyle and the defendant, whereby Doyle was to “break in” the logs for 20 cents per 1,000 feet. This contract was also assigned to plaintiffs, of which defendant was notified April 17. Dnder these contracts, Doyle earned $2,202, of which $367 was for breaking in. The first work was done April 23. The plaintiffs offered evidence to show that the work was done at their expense, but this was excluded, and plaintiffs excepted. The defendant proved its claim against Doyle, amounting to $1,524.89, which the court allowed to be set off against plaintiffs’ claim, to which plaintiffs excepted.
This raises the question whether a creditor can set off .against the assignee of a chose in action not due at the time of the assignment a claim which was mature before that time. Had both claims been mature, i. e., due and payable, at the time of the assignment, no doubt of the right to set off either could be entertained. And it is equally clear that, if the assigned claim had been mature, an immature one could not be set off. We find numerous cases sustaining this proposition, and one of them (Coffin v. McLean, 80 N. Y. 563) apparently denies the right of set-off under the facts in this case. Mr. Justice Folger says:
“Nor is it [set-off] permitted, except when the demands are mutual; that is, where both were due and payable, before the transfer of either to a third party.”
In that case the claims sought to be set off were of two kinds. Some fell due before the assignment to the plaintiff, and some after. The obligation sued upon was joint, while the claims sought to be set off were several; and this is one ground upon which that decision is based, and applies to all of the claims sought to be set off. The claims of the latter class were also open to.the objection that they did not fall due until after the assignment. But the question of the right to set off a claim mature at the time of the assignment against a plaintiff assignee of an immature claim did not necessarily arise.
Three New York cases are cited to sustain the two reasons for the decision: Beckwith v. Bank, 9 N. Y. 211; Patterson v. Patterson, 59 Id. 574; Jordan v. Bank, 74 Id. 467. The cases of Beckwith v. Bank and Jordan v.. Bank were cases where the claims attempted to be set off matured after the assignment to the respective plaintiffs. That of Patterson v. Patterson was where a bond was taken by plaintiff’s testator, in his lifetime, conditioned to pay a sum to his executor after the testator’s death. This was held to be a claim against which a debt due from the testator in his lifetime could not be set off. The opinion in this case was also written by Mr. Justice Folger. In demonstrating that the cause of action upon the bond did not arise until after the testator’s death, he asserts that a cause of action does not arise from' the contracting of an indebtedness alone, but out of the non-performance of it as well; and he cites authorities to sustain the proposition that a cause of action does not run from the making of a promise to do something at a future time, but only from the expiration of that time. 'Were we to apply this logic to the present case, we should be compelled to admit that, at the time of the assignment, the plaintiffs’ assignor had no demand whatever, except a contract to be performed, whereby the defendant might later become indebted. Had the assignment not been made, the obligation would have matured immediately upon the performance of the contract by Doyle, and the right of set-off by either Doyle or the defendant would have been complete. In such case, Doyle’s subsequent assignment would not deprive the defendant of the right of set-off. But plaintiffs’ contention is that if Doyle assigned his contract before it matured, though it were but an hour before, his assignee could collect the consideration, to the exclusion of the defendant’s set-off. Doyle is permitted to sell his claim before it matures. Plaintiffs say to defendant: “ We bought our claim against you before it was due, and therefore it was not the subject of set-off when we bought it. It is true that by the terms of your contract with Doyle you had a right to become Doyle’s debtor, and all rights that we have acquired are those which Doyle had under the contract. We own the claim against you because we bought it, and we will collect it from you because when we bought it Ihere was no claim against you. It not being due, there was no debt.”
The right of set-off has its origin in the injustice of allowing a person to collect a debt when he is at the same time indebted to his debtor in a sum as large or larger than his own claim. And one who buys a claim against another, not negotiable, takes it subject to all rights of set-off due at the time of his purchase. If A. buys a claim due to-day, B. can set off a debt which is due. If, however, A. has bought the claim half an hour before midnight, the rule is said to be otherwise, though it is difficult to see much difference in defendants’ equities in the two cases.
It is urged that the assignor had merely a contract, which performance would ripen into a valid demand. This he sold, and plaintiffs took it with all its obligations and equities. As the assignor could .not avoid defendant’s right of set-off if he had kept it, and could not convey any greater right than he had, it is said that plaintiffs took no more than the assignor could convey. Until performance, the plaintiffs had no claim against defendant. Coincident with the maturity of the demand, the right of set-off attached. There is apparent force in this reasoning.
The case of Stewart v. Anderson, 6 Cranch, 203, is a casé decided by Chief Justice Marshall, which seems to recognize the doctrine that the assignment of a claim before maturity does not relieve it from set-off. On April 25, 1807, A. gave H. a note, which came to the hands of plaintiff, Stewart, by assignment on August 14, being before maturity, the note being due about October 25, 1807. On June 29, H. gave A. a note payable in 60 days, i. e., August 31, 1807. Stewart brought an action against A., who was allowed to set off his note against H. It will he observed that Stewart acquired a claim that was not due, yet the set-off was allowed, and this, too, though the note set off was not due; the case differing from, and* going further than, this, in that particular. It should be remembered that the act of the Virginia assembly under wdiich this decision was made provided that—
“Assignments of bonds * * * shall be valid; and an assignee * * * may thereupon maintain an action of debt, in his own name, but shall allow all just discounts, not only against himself, but against the assignor, before notice of the assignment was given to the defendant.”
It was argued upon the trial that a claim “could not be a just discount until it became payable,” and that “money cannot be offset before it be due.”
This case appears to support defendant’s contention. But it differs from the present case, in that there was a debt which had been assigned. It was not a case of executory contract, under which a debt might at a future time be created. True, this debt was not due, but the consideration had passed. The sum had been earned, as the giving of the note implies. The maker of such note was a debtor -before maturity, and the holder a creditor. Unless by reason of its negotiability, he could only dispose of such -note subject to equities; and while we do not find it necessary to hold that the maker had an equity to the right to set oil his existing claim, already due, when the note should mature, and do not so hold, we can see that such a conclusion, as in the Cranch case, falls far short of the doctrine that such right should apply to a case of a promise to pay at a subsequent daté, when the promisee should have earned the amount. It is a difference between an existing obligation to pay money already earned, at a future date, and an existing contract, where the debt does not exist, and will not, unless the consideration, whatever it may be, shall be performed. In the one case the holder of the promise to pay has an existing liquidated demand, contingent upon nothing, which he will inevitably have the right to demand and collect at the end of a specified time. In the other, he has no such demand, but an executory promise to pay upon the performance of something else. His right of action, when it accrues, may be a mere action for damages for a breach of contract. He could not set off such right, if the promisor should sue him upon the cross-demand, and it is a matter which may never become a debt. The case in Cranch, under the Virginia statute, seems to have permitted set-off in the former case, but we have found no authority that extends the rule to the latter.
Furthermore, there is no opportunity to enlarge the doctrine of set-off. It is a statutory right, in derogation of the common law, and must be strictly construed. Woods v. Ayres, 39 Mich. 348; Robbins v. Brooks, 42 Id. 63. Section 7365, 3 How. Stat., provides that, “in the following cases, * * * a defendant may set off demands which he has against the plaintiff.” First, then, it must be a demand, as contradistinguished from a right of action. Hanna v. Pleasants, 2 Dana, 269; Gould v. Kelley, 16 N. H. 560; Drew v. Towle, 27 Id. 412; Hepburn v. Hoag, 6 Cow. 613. If the demand has been assigned to the plaintiff, a demand existing against his assignor at the .time of the assignment, and belonging to such defendant before notice of assignment, may be set off, if it was such as might have been set off against the assignor while it belonged to him. 3 How. Stat. § 7365, subd. 8. The language of this subdivision is a little blind, by reason of the use of the word “by,” instead of “to,”.in the second line, but we think that its meaning is unmistakable. This claim of defendant was a proper subject of set-off against that of the plaintiff assignees only if it was such against the_ assignor while he was the owner of it. That it was not is plain, because this claim, i. e., that assigned, was not then due; and subdivision 5 provides that “it can be allowed only in actions founded upon demands which could themselves be the subject of set-off according to law.” Hnder this provision, defendant’s claim, though due, did not become a subject of set-off before the assignment, because the assignor never had a right of action upon a demand which could have been the subject of set-off. As there never was a time, while Doyle owned the contract, when, under this statute, defendant’s claim might have been set off against him, it is not such a demand as can be set off against the assignees. Subdivision 8; Richards v. La Tourette, 53 Hun, 623; Richards v. Village of Union, 48 Id. 263.
The evidence shows that the contract for driving the logs was altered before it was executed, at the suggestion of the plaintiffs, who were to guarantee performance by Doyle. The following language was inserted, viz.:
“A payment of fifty cents per thousand is to be made when the jam has passed the East branch, and the balance. when the rear is within the boom company’s limits. It is understood that the jam mentioned is of the T2 logs.”
The request of the guarantors that the defendant so amend the contract as to provide for payment in installments is significant. Evidently, they were providing a way for Doyle to obtain money to do the job with, and thereby lessening the danger of their being subjected to loss upon their guaranty. The defendant could not shut its eyes to this, and was in duty bound to inform the guarantors of its intention to apply the existing claim against Doyle, of which the guarantors were ignorant, in payment. This is the more apparent when we consider that the guaranty which defendant was exacting included the payment of the men who were to be employed by Doyle, and which defendant was insisting that the plaintiffs should assure. Under such circumstances as the plaintiffs claim to exist, the defendant would be estopped from setting off its claim upon the larger contract (if not both), which it had not disclosed, to the extent, at least, of the amount paid by plaintiffs;, and this might be so although there was an express agreement, of which they were ignorant, between Doyle and the defendant, that the work should be performed and applied in payment of defendant’s claim against him. The question of estoppel would be one for the, jury, under all the facts which could be shown to bear upon it.
The judgment will be reversed, and a new trial ordered.
The other Justices concurred. | [
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Grant, J.
This action is brought to recover $147.30 of a special school tax paid by the plaintiff under a written protest. The tax was voted at a special school meeting of district No. 1 of defendant township, for the erection of a school-house. The principal question is whether the notice of the special meeting was broad enough to include the voting of money for that purpose.
At the annual school meeting, held September 7, a resolution was offered to bond the district for $5,000 to procure a site and build a school-house, but was not carried, and the meeting adjourned. On September 10 of the same year a special meeting was called by the school board, for the purpose of taking a vote to raise the necessary money to carry on the school the ensuing year, and “also for the purpose of taking a vote upon the question of building a new school-house, and such other questions as are necessarily related to the building of said school-house.” The electors met pursuant to this notice,, and • voted a direct tax of $2,000 to apply towards the building of the school-house.
Section 5047, How. Stat., provides:
“But no special meeting shall be called unless the business to be transacted may lawfully come before such meeting, and no business shall be transacted at a special meeting unless the same be stated in the notice of said meeting.”
The court instructed the jury that the notice was insufficient, and directed, a verdict for the plaintiff.
Liberal rules of interpretátion must be applied' to these notices, and if they be such as, under a fair construction, to give notice to the electors of the purpose for which the meetings are called, they must be held sufficient. The necessary funds for the erection of a school-house can only be raised in two ways, viz., by direct tax or the issue of bonds. This the electors of the district were presumed to know. There is no room for holding that they could have been misled by this notice. The electors were notified that, when assembled, they were to vote whether they would erect a new school-house, and whether they would raise the necessary funds in either of the two methods provided by law for that purpose. It would be a reflection upon the intelligence of the electors of the district to hold that they did not understand the purposes for which they,were called together.
Judgment reversed, and entered in this Court for the ■defendant, with the costs of both courts.
The other Justices concurred. | [
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Montgomery, J.
This is an action on a policy of insurance. The plaintiff recovered, and. the defendant brings error. The record contains 32 assignments of error. We shall discuss only those which present questions liable to arise upon another trial. The principal question presented is whether any binding contract of insurance was ever made. The facts were these: The plaintiff had previously been insured by the defendant company, and had suffered a small loss of $5.20, of which he had made no regular proof, as required by the rules of the company. The policy in question was a renewal, and was written and presented by the local agent of the company, Leigh B. Smith. At the time of presenting the policy to the plaintiff, a bill for the premium, amounting to $9, was also presented. The parties are not fully agreed as to what took place at the conference. Both agree that the plaintiff asked to be credited for the $5.20 loss, an'd offered to pay the balance. Both also agree that this proposition was declined by the agent. The agent’s vérsion of what followed is as follows:
“I told the plaintiff that, inasmuch as there seemed to be a misunderstanding in regard to the five dollar matter between himself and Mr. Wood, in order to satisfy him thoroughly, I would take the policy back to my office, and hold it a couple of days, giving him time to call and talk to Mr. Wood in regard to it. I told him that Mr. Wood,'— the result would be the same; that that five dollars could not be allowed him; and that, if he didn’t call within a couple of days’ time, the policy must be sent in to the company.”
The plaintiff’s version of the conversation is as follows:
• “After Smith stated that he wouldn’t allow the $5.20, I said to him, 'I will pay you for what time you have carried my insurance, and you may cancel that policy, and I will get insurance elsewhere.’ He stood a moment, and he said, ‘No, I won’t do that.’ He said: ‘You come up. I will take this policy, and I will hold it in force, and you come up to the office, where Mr. Wood is, and we will talk it over, and we will fix it up some way satisfactory.’ He said, fWe want to do what is fair by everybody.’ Then he took the policy and the bill, — I think took them both. There was no time stated when I should come. He didn't • say how long he would hold the policy. He said: £I will hold this policy good; you come up.' He said when he was going away that he would hold it in force.''
This conversation occurred on the 18th of September. The plaintiff further testified that on the 18th of November he called up the office of Mr. Smith by telephone, and had a conversation with Mr. Wood, a clerk in the office, who, ás the record shows, had charge of the business in the absence of Mr. Smith, and told Mr. Wood that he was about to' go to Chicago for a few days, and wanted to know if his insurance was in force before he went, and was assured that it was in force, and that his property was covered. It further appears that the agent reported the policy to the company in his monthly account, and himself paid the premium. There was also stamped on the back of the policy the following: “'Canceled. Date, October account, 1891. At full Ret. Prem., $9. Non-pmt.’ Royal Insurance Co., Nov. 18, 1891. Received. Chicago.''
The appellant contends that it was error to refuse to direct a verdict for the defendant on the ground that the policy- was not in force at the time of the fire. We do not think that the court erred in this regard. If the plaintiff's version of what took place is accepted as true, it was for' the jury to say whether the parties to the conversation intended that the policy should continue in force for a reasonable time, and whether it was further under-' stood that the- assured undertook to pay the premium. The construction of oral testimony is for the jury, unless it be such that only one inference can be drarvn from it. In this case we áre not prepared to say that the agent and plaintiff may not have both assented to the proposition that the policy should remain in force, and that the matter-in difference between them should be the subject of future agreement and adjustment. If the jury found that the plaintiff assented to this by his conduct, he would un doubtedly have been legally bound to pay the premium for the time that the policy was continued in force, and until its cancellation was directed by him. A failure to appear within a time satisfactory to the agent for the purpose of making the adjustment would undoubtedly have justified cancellation, but such cancellation could not be made effectual without notice to the assured. No such notice was given in this case. On the contrary, if the plaintiff’s testimony be credited by the jury, the exact contrary was the fact, and the clerk assured the plaintiff, only seven days before the fire occurred, that the policy had been continued in force.
This case differs from those cited- by the defendant’s counsel, of which Insurance Co. v. Ewing, 92 U. S. 377, is an illustration. In that case there was no assurance by the agent that the policy should remain in force pending the adjustment of the differences, and nothing appeared from which it could be implied, nor from which an assent by the assured to the continuance of the policy in force could be inferred. The following cases in this Court sustain the views herein expressed: Dibble v. Assurance Co., 70 Mich. 1; Michigan Pipe Co. v. Insurance Co., 92 Id. 482; Mallory v. Insurance Co., 90 Id. 112; Elmondorph v. Insurance Co., 91 Id. 36.
We think it was error, however, for the circuit judge to permit the plaintiff to testify that he believed in good faith that he was insured by virtue of the policy from the time of the conversation with the agent, Smith, down to the time of the loss. Whether he was insured or not was a mixed question of law and fact. So far as it was a question of fact, its solution, depended upon the interpretation to be given by the jury to the conversation which occurred between the plaintiff and the agent, Smith, and not upon the plaintiff’s own undisclosed interpretation.
There was also error in receiving the policy in question under the pleadings without amendment. The plaintiff declared upon a policy of insurance for $2,100, covering $800 on dwelling-house, $400 on household furniture, $400 on frame barn, $200 on frame office building, and $300 on office furniture and fixtures. The policy introduced was for $1,800, covering the same items set forth in the declaration, with the exception that but $100 appeared to be written upon the barn. This was a variance which could not, consistently with the rules of pleading, be overlooked.
We think none of the other questions presented' are. liable to arise upon a new trial of the case, but for the errors pointed out the judgment will be reversed, and a new trial ordered.
The other Justices concurred. | [
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McGrath, C. J.
This is an appeal from an order overruling a demurrer to a bill to foreclose a builder’s lien claimed under a contract with the Muskegon Machine & Foundry Company. Eight other parties are joined as defendants, under a general allegation that they “have or claim to have an interest in the premises, or in some part or parts thereof, as subsequent purchasers, mortgagees, lien claimants, or otherwise.” One John J. Howden is also made defendant, and the bill alleges, respecting him, that on September 20, 1892, complainant “caused to be served upon one John J. Howden, who theretofore, and on or about the 6th day of September, 1892, was appointed receiver for the said Muskegon Machine & Foundry Company, by the order of this honorable court, in a suit then and now pending in said court between Union National Bank of Muskegon, as complainant, and said Muskegon Machine & Foundry Company and others, as defendants, a true copy of his verified statement or account,” and that John J. Howden, as such receiver, “claims to have' some right, title, or interest in and to the said described premises by virtue of his powers and duties as such receiver.” The Muskegon Machine & Foundry Company, John J. Howden, and two others join in a general demurrer.
The only grounds of demurrer that will be considered are such as are available to all of the demurring defendants. Sweet v. Converse, 88 Mich. 1. The receiver of the contracting party is a necessary party to the bill,' and, unless a case is made by the bill as against him,' it must fail as to the other defendants. It is well settled that a receiver cannot be sued without leave of the court appointing him. Tremper v. Brooks, 40 Mich. 333; Citizens’ Sav. Bank v. Circuit Judge, 98 Id. 173. The bill, in the present casé, fails to state that it is filed by leave of the court; and in such case, the defect being apparent on the face of the bill, the question may be raised by demurrer. Jenn. Ch. Pr. 59. At the hearing of a general demurrer, the defendant may orally assign any cause of demurrer which is co-extensive with the demurrer upon the record. Jenn. Ch. Pr. 61.
The order of the circuit court in chancery will be reversed, and the demurrer allowed, with costs of both courts. The record will be remanded, with leave to complainant to apply to that court for permission to amend the bill.
The other Justices concurred. | [
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Long, J.
This claim is for the payment of $10 per month from October 15, 1874, to April 16, 1890. It involves a contingent claim for a like amount, monthly, so long as claimant lives. The commissioners on claims rejected it. Claimant appealed to the circuit court, and succeeded. The estate brings error.
The claimant and deceased were brother and sister, children of Antoine Moross. The claim is based upon a contract alleged to have been made in 1871 between Antoine and Joseph for the benefit of the claimant. Some time prior to 1871, Antoine Moross made a will, in which he gave Nancy, for life, 20 acres of land, and $200 in money. In April, 1871, he made a codicil to the will, whereby he revoked the gift to Nancy, and gave to Joseph what in the original will had been given to Nancy; stating before the revoking clause, “I have since made other provision for her maintenance during her natural life.” Antoine died soon after. In 1875 Joseph conveyed to Nancy the land which had been originally devised to her, and she gave to Joseph on the same day the following receipt:
“Mt. Clemens, February 15, 1875.
“ Received of Joseph A. Moross deed of N. $ of S. E. of S. E. i, sec. 26, town 2 north, range 13 ' east, "in Macomb county, in full settlement of all claims between us.
her
“Witness: 0. Ohapoton. Ann X Linneman.”
mark
It was established on the trial that Joseph promised Antoine, when the codicil to the will was made, that he would pay the $10 per month to Nancy so long as she lived. It was also shown that Joseph for a time paid Nancy the $10 per month, which she accepted; also, that in 1874 Nancy sued Joseph on this contract, and recovered judgment. But it was contended in behalf of the estate that the conveyance of the 20 acres of land to Nancy was in full settlement of the claim. It was also contended:
1. That no liability attached under the provisions of the codicil, and the promise of Joseph to his father to make the payments to Nancy, as Nancy was a stranger to that contract and to the consideration for the promise.
2. That Nancy was guilty of laches.
On the other hand, it was also contended by claimant’s counsel, on the trial below, that the claimant did not have sufficient intelligence to comprehend the alleged settlement.
The court directed the jury, substantially, that if they found that a contract was entered into between Antoine and Joseph to pay Nancy this sum, and that Nancy, when she made this settlement, was incapable of contracting, by reason of not having sufficient intelligence to understand its terms and conditions, the verdict must be for claimant for the contract price, less the value of the land deeded to her by Joseph. The court was asked by the estate to charge:
“ This action is based upon a contract made between Joseph A. Moross, deceased, and his father, Antoine Moross, deceased, to which Mrs. Linneman was not a party. Mrs. Linneman, being a stranger to the contract, ■and to the consideration thereof, can maintain no action upon it.”
" This request was refused, and the jury found a verdict in favor of claimant for $742.33. *
The court should have given the request of defendant’s counsel in his charge to the jury. There is no evidence that Nancy was a party to the contract between Antoine and Joseph. Antoine, by his will, gave Nancy certain property and money. He afterwards, by codicil, revoked the gift to Nancy, and made the same property over to Joseph, upon Joseph’s promise to pay Nancy this monthly indemnity. No consideration moved from Nancy, and we think the ease falls within the rule that a promise made by one person to another for the benefit of a third — a stranger to the consideration — will not support an action by the latter. This rule is settled in this State in Pipp v. Reynolds, 20 Mich. 88; Turner v. McCarty, 22 Id. 265;
Hicks v. McGarry, 38 Id. 667; Hunt v. Strew, 39 Id. 368; Hidden v. Chappel, 48 Id. 527; Edwards v. Clement, 81 Id. 513; Wheeler v. Stewart, 94 Id. 445. In the last-mentioned case it appeared that plaintiff’s husband, in his lifetime, agreed with defendant to buy a one-third interest in the latter’s farm, and to work it, and, if he died before his interest was paid for, the value of his services was to. be paid to his widow, and the payments made wore to be refunded. The husband died, and the widow, in her individual capacity, brought suit to recover the value of the services, and the amount which should have been refunded. It was held that she could not recover.
Counsel for claimant attempt to place the right of recovery on the ground of novation. It lacks the essential elements of a novation. Nancy had no claim against her father’s estate which she could enforce, and it does not appear that she was ever consulted when her father revoked the gift to her and made the property over to Joseph. She released nothing. She had nothing to release. Claimant’s counsel cite Osborn v. Osborn, 36 Mich. 48, and some other cases in this Court, to sustain the proposition that the transaction was a novation; but in Osborn v. Osborn it was said by this Court:
“The circuit judge thought the case came within the principle of Pipp v. Reynolds, 20 Mich. 88; Turner v. McCarty, 22 Id. 265, and Halsted v. Francis, 31 Id. 113. In each of those cases the plaintiff counted on a promise .made to a third person, — not to himself. In this case the plaintiff counts upon a promise made to herself, and the -only question is whether she establishes it.” .
Counsel also contend that, even though Nancy was a stranger to the contract, a trust was created in her favor which might be enforced; that the court would compel the representatives of Antoine to permit the use of their names for the purpose of recovering from Joseph’s estate the fund for the benefit of Nancy, or that Antoine’s representatives could enforce the contract, on their own motiqp, for the benefit of Nancy. This may be true, and yet this action not maintainable. Here the claimant, in her own name, seeks in a court of law to enforce the payment under a contract to which she was never a party, and for which the consideration moved from another. If it can be enforced as a trust, even' by the claimant, she is in the wrong forum for that purpose. These proceedings are in the nature of an action at law, where questions of fact are triable by a jury; and the question óf whether it was a trust fund in the hands of Joseph, which, in equity, he should pay over to Nancy, could not be litigated in this forum. It may be true that Joseph took the property from his father under this will with a promise to pay Nancy these' several sums of money, and that a court of equity would, under proper proceedings, enforce it for her benefit. When that question shall arise, the proper forum wilf have an opportunity to pass upon the question of Nancy’s competency to make the claimed settlement, and the matter of her laches in not bringing the action sooner for the enforcement of the trust. Hntil these questions shall arise in a proper proceeding, we express no opinion upon them.
The judgment of the court below must be reversed. No new trial will be ordered.
The other Justices concurred. | [
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Grant, J.
Plaintiff brought suit in justice’s court, claiming a balance due him of $42.61. He filed a bill of-particulars showing a total claim of $168.73. Defendants gave notice of set-off, with bill of particulars thereof, amounting to $168.13. Plaintiff was defeated in justice’s court, and, on appeal to the circuit court, was again defeated, whereupon he removed the suit to this Court by writ of error. The' sole question of fact was whether defendants had paid $42, and this issue was found by the jury against the plaintiff.
Upon the trial in the circuit court, and after the plaintiff was sworn as a witness in his own behalf, the defendants, through their counsel, admitted the entire bill of particulars, and plaintiff admitted payments to the amount of $126.12. January 24, 1891, defendants agreed to get out and purchase certain cord wood of plaintiff at the price of $1.60 per cord. Sixty-seven and three-fourths cords were taken under this agreement. Plaintiff, on his cross-examination, testified that at this date he owed the defendants a balance of $26.40. The wood, under the contract, amounted to $108.40. Plaintiff also admitted that defendants paid him by check on Boyce’s bank, $10, and order on Siple, $30, and that he got the money on both check and order. This, under the plaintiff’s own evidence, left a balance of $42, the payment of which was the sole controversy.
At the close of the evidence, plaintiff’s counsel requested the court to instruct the jury that the plaintiff was entitled to recover 61 cents, provided the jury should believe the defendants as to the payment of the $42. The court, in its charge, said to the jury that the defendants admitted all the items in the plaintiff’s account, amounting to $168, but claimed that it had all been paid. At the close of the charge, the plaintiff’s counsel called the attention of the court to the fact that the amount admitted was $168.73, and insisted upon the exact amount, and again requested the court so to instruct the jury. This was refused, the circuit judge remarking, “As I understand the testimony, it was limited to even figures.”
After the verdict, the court rendered judgment for the defendants, with costs to be taxed, including an attorney fee of $25. The items, therefore, involved in the appeal, relate to the 61 cents, and $10 claimed to be illegally allowed as part of the costs. ' ,
But for the plaintiff’s testimony after the admissions were made by counsel, there would be considerable force in plaintiff’s contention; but his admission that a balance was due of $26.40 when the .wood contract was made, the amount due upon the contract being conceded, we think 'justified the court in treating the difference — $42—as the true balance between their accounts, and in instructing the jury that upon their determination as to the payment of this amount the right to verdict and judgment depended.
It is insisted that defendants were not entitled to judgment for $10 as a part of the attorney fee for proceedings before notice of trial, under How. Stat. § .9004, because section 7016 provides that, if the return of the .justice be filed 10 days before the first day of any term, either party may notice the case for trial, and therefore the case is ready for notice of trial immediately upon the filing of the return of the justice. We think otherwise. The costs which are in the discretion of the court under How. Stat. § 7026, have reference to the costs allowed by section 9004. It cannot be said that there are no proceedings to be taken by the attorney before notice of trial in appeal cases. The attorney may not have been employed in the justice’s court,. where very informal pleadings are allowed. When employed, it is his duty to examine the papers, and, if the pleadings are not in proper shape for trial, to apply to the court for leave to amend. This may be done before notice of trial. It follows that this is one of the items which may be awarded to either party, as the court may deem just under all the circumstances.
Judgment affirmed.
The other Justices concurred. | [
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Long, J.
Kespondent was convicted on an information charging him with having made an assault on one Elsie Hoertz, a female child of the age of eight years, and taking indecent and improper liberties with her person.
The prosecution was brought under section 93143, 3 How. Stat., which provides:
“If any male person or persons over the age of 14 years shall assault a female child under the age of 14 years, and shall take indecent and improper liberties with the person of such child, without committing or intending to commit the crime of .rape upon such child, he shall be deemed a felonious assaulter, and on conviction thereof shall be punished by imprisonment in the State prison not more than 10 years, or by fine not exceeding $1,000, or both such finé and imprisonment, in the discretion of the court.”
The respondent was a man 62 years of age. On the day in question, he went to the rear of the house of the child’s father, ostensibly to see him, but was told by the mother-that her husband was not at home, but would return in about 20 minutes. Back of the house was a shed, in which, was the child cracking some nuts. The respondent entered the shed, and what took place there is in dispute between the respondent and the child. It becomes necessary to state the claims of the parties, in view of the charge of the court.
The child says that when he entered the shed he said: “What pretty legs you have got.” She said: “Can’t you see my legs there?” He then put his hand under her clothes, — as she expresses it, “under my pants,” illustrating where he put his hand by putting her hand to her side. She told him she would tell her mother, and at once went. into the house. The mother of the girl was called as a witness. She stated that her daughter came in, and told her that the man picked up her dress, and reached way up under her clothing, to her private parts. The witness was permitted, under objection, to detail the whole conversation with her daughter.
The respondent testified in his own behalf that he found the girl cracking nuts; that she was sitting on a block; that he bent .down on one knee in front of her, and took the hammer and cracked some; that he got to fooling with her about them, taking some from her; that she commenced to' crack one, and he was going to get it, or reached to get it, when she, sitting straddle of the block, put up her knee to hold him off, and that he took hold of her leg, and moved it away, to get the nut; that he put his hands upon her in no other way. She said she would tell her ma, and went into the house. He left immediately after that, and did not wait to see her father.
The general rule excludes all hearsay testimony, but there are cases when the exclamations and statements of the injured party are made so near upon the point of time when the injury is inflicted that such exclamations and statements are admissible as a part of the rés gestae. Such was the case in Lambert v. People, 29 Mich. 71. In cases of rape, however, the rule is somewhat extended, and is given by Greenleaf as follows:
Though the prosecutrix may be asked whether she •made complaint of the injury, and when and to whom, *and the person to whom she complained is usually called to prove that fact, yet the particular facts which she stated are not admissible in evidence, except when elicited in cross-examination, or by way of confirming her testimony after it has been impeached. On the direct examination, the practice has been merely to ask whether she .made complaint that such an outrage had been perpetrated upon her, and receive only a simple yes or no. Indeed, .the complaint constitutes no part.of the res gestae-, it is only a fact corroborative of the testimony of the complainant, and where she is not a witness in the case it is wholly inadmissible. ” ,3 G-reenl. Ev. § 213.
But exceptional casés have arisen, when rape was charged, where third parties have been allowed to detail conversations with the prosecutrix. In People v. Gage, 62 Mich. 271, this was allowed. ■ It was not permitted upon the ground that the complaint of the prosecutrix was a part of the res gestae, but as corroborative of her, testimony, and for the reason that the party outraged was of tender years, and that her silence for a length of time was the direct consequence of fears of chastisement, induced by threats of the perpetrator of the wrong. This case goes to the extreme of the rule, and borders closely upon dangerous ground.
In the present case, however, no charge of. rape, or assault with intent to commit that offense, is made. No violence was used, and, if the testimony of the respondent is believed, no offense was committed. If the testimony of the girl is believed, it is doubtful if the jury would have convicted of any greater offense than assault and battery, while the testimony of the mother as to what the girl told her might lead the jury to believe that the respondent was guilty of the offense with which he was charged. They might have regarded it as being received, not as corroborative of the testimony of the girl, but as proof of the offense. The court erred in permitting the mother to detail the conversation with her .daughter. Doubtless, it would have been competent to show by the mother the daughter’s entrance into the house, and her appearance at the time, and whether or not at that time she made any complaint of her treatment by the respondent, but the rule would not permit the prosecution to go further. If such rule as the prosecution contends for be -recognized, then in every case of assault and battery it should be applied, and the prosecutor would be permitted to make corroborative evidence upon his -own statement to a third party, and of which rule evilly-disposed persons Would be likely to take' advantage.
It is contended by respondent's counsel that, to constitute the offense under this statute, the respondent must be shown to have taken liberties with the private parts of the child. We do not think the act susceptible of that construction. The Legislature evidently did not intend so to limit its meaning. The offense is in taking indecent ' and improper liberties with the person of such child. Surely, the Legislature did not intend that the offense should not be regarded as committed unless the indecent liberties were taken with the private parts of the child. It certainly would be indecent for a man to place his hands upon certain other parts of the body of a female child, with intent to*take liberties with her. “Indecent and improper liberties with the person of such child ” means such liberties as the common sense of society would regard as indecent and improper. In this case, as in State v Millard, 18 Vt. 577, it may be said that “ no particular definition is given by the statute of what constitutes this crime. The indelicacy of the subject forbids it, and does not require of the court to state what particular conduct will constitute the offense. The common sense of the community, as well as the sense of decency, propriety, and morality which most people entertain, is sufficient to apply the statute to each particular case, and point out what particular conduct is rendered criminal by it.'' The prosecution in that case was for indecent exposure of the person.
We think there was manifest error in the charge. The court stated what took / place between the parties in the shed up to the time when the respondent said he'attempted to take the nut from the child, and added, “ So far they both agree.” The parties did not agree up to that point. On the contrary, the respondent positively denied that he put his hands upon the girl, or that he had any intent to commit any indecency. If his story be true, he was without fault, and could not have been convicted of an assault even; while, if the story of the girl be true, he was addressing indecent language to her from the outset, and had committed an offense against her.' The way the case was left to the jury under this charge could not but have prejudiced his ease.
The theory of the defense was not stated to the jury in the general charge. The jury should have been told that, if they believed the respondent’s testimony, it was their duty to acquit. We' think the charge' unfair in this respect.
The verdict and judgment must be set aside, and a new trial ordered.
McGrath, Grant, and Montgomery, JJ., concurred with Long, J.. Hooker, O. J., concurred in the result. | [
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Montgomery, J.
This' is an action on a recognizance of bail entered upon by defendants, conditioned for the appearance of Louis Robb at the March term, 1892, of the Berrien' circuit court, for trial on the charge of assault with intent to murder. Verdict for the plaintiff was rendered by direction of the court, and defendants appeal.
It appears that the recognizance was entered into before a circuit court commissioner, and recites that an examination had been had before a justice of the peace, and that it was made to appear that an offense had been committed, and that there was probable cause to believe the principal guilty thereof. It is contended that the recognizance does not appear to have been filed by the clerk of then court. A sufficient answer is that the point was not' called to the attention of the court below, and, furthermore, the recognizance appears to have been estreated, and produced on the trial. How. Stat. § 9485, reads as follows:
“No action brought upon any recognizance entered into in any criminal prosecution, either to appear and answer, or to testify in any court, shall be barred or defeated, nor shall judgment thereon be arrested, by reason of any neglect or omission to note or record the default of any principal or surety at the time when such default shall happen, nor by reason of any defect in the form of the recognizance, if it sufficiently appear from the tenor thereof at what court the party or witness was bound to appear, and that the court or a magistrate before whom it was taken was authorized by law to require and take such recognizance.”
These facts sufficiently appeared in the present case.
It is also contended that the circuit court commissioner had no power to let to bail in a less sum than that fixed by the magistrate. But we do not so construe the statute. Section 9476 provides that—
“Any Justice of the Supreme Court, circuit court commissioner, or any judge of any (circuit) court for any -county, on application of any prisoner committed for any bailable offense, and after due notice to the prosecuting attorney for the county, may inquire into the case and admit such prisoner to bail; and any person committed for not finding sureties to recognize for him may be admitted to bail by any of the said officers.”
The language of the Court in Daniels v. People, 6 Mich. 381, is peculiarly appropriate here:
“This is not a case where a person is held to bail by the examining officer, and forced to enter into the recognizance or stand committed. Here the commissioner acts upon the application of the prisoner, who has already been committed by a magistrate. The statute declares that the commissioner, £on application of any prisoner committed for any bailable offense, may inquire into the case and admit such prisoner to bail.-’”
The report of the case does not show whether the bail fixed by the magistrate was the same as that required by the commissioner. But the power of the commissioner to inquire into the case is clearly implied. ' There certainly could be no occasion to inquire into the case, if the amount of bail fixed bjr the examining magistrate is binding upon the commissioner. The case of Townsend v. People, 14 Mich. 388, does not establish any different doctrine. In that case the respondent was under recognizance taken in open court, still in force, and it was held that prima fade there was no authority in the commissioner to take a new recognizance. But in any case where there is a general jurisdiction to let to bail, and a recognizance is accepted, if it is claimed that such a recognizance was extorted from the prisoner in violation of his right, that fact should be set up in his defense. Champlain v. People, 2 N. Y. 82; People v. Millis, 5 Barb. 511; Carmody v. State, 105 Ind. 546. No such defense was set up in the present case, in the pleadings.
It is claimed that the sureties were discharged by reason of the arrest of the principal for another offense, for which he was held to answer at the same term of court at which he was bound to appear under the present recognizance, and by reason of what occurred on his appearance upon that charge. The testimony on this point was that the principal, Louis Robb, was arrested and held for trial on the charge of keeping a house of ill fame. He was arraigned, and pleaded guilty. The sheriff says:
“ When Mr. Robb pleaded guilty to one case against him here, I took charge of him. I went to Robb, and said to him, cYou will remain here, in the court room.' I was busy here in the court room, fixing the lights, or something of the kind; and he remained here in the court room until I got ready to go to my -supper. Then I left him with another officer. * * * I don't know whether the judge said to me to take charge of him, or whether he said to Robb that he was to remain in the custody of- the officer. I considered it my duty, at any rate.''
This occurred before supper. After supper the court sentenced Robb to pay a fine of $25. He received the sentence, and went from the court room in charge of Mr. Lister, a deputy-sheriff, to the office of the clerk, and paid his fine. It was not to exceed five minutes from the time the judge passed sentence upon him until the fine was paid. Robb was then released from custody.
No doubt. the arrest and continued detention of the principal by the State on another charge, when such- detention makes it impossible for the surety to produce the principal, must operate to discharge the surety from liability. State v. Spear, 54 Vt. 503; People v. Bartlett, 3 Hill, 570. But the mere temporary detention requiring the giv ing of a bond on another charge will not. West v. Colquitt, 71 Ga. 559; 2 Amer. & Eng. Enc. Law, p. 26, and cases cited. Much less, it seems to us, would the detention of the accused at the same place required in the recognizance, for a few moments, work a discharge. It was not his detention there that worked a forfeiture of the bond. On the contrary, it is his departure that is complained of by the State.
Would the testimony offered by the defendants, and excluded by the court, have shown a surrender? Levi Lister was acting as deputy-sheriff at the time the bail was estreated, and at the time vRobb was in court, and sentenced for the offense of keeping a house of ill fame. The defendants offered to show that one of the sureties on the bond requested Louis Hosbein, another deputy-sheriff, to take Robb into custody whenever Be interposed a plea of not guilty to the charge for which he is recognized in this case, and that this request was communicated to Mr. Lister. The court excluded this testimony. We are cited to no case, nor have we' been able to find one, in which it has been held that this is a sufficient surrender. There are cases, it is true, in which it is held that a surrender to the sheriff, accompanied by a certified copy of the recognizance, may be made, but these cases usually depended upon statute. Our statute has made ample provision by section 9488, How. Stat., which provides for the issue of a mittimus, and the delivery of the process, with the body of the principal, to the sheriff. But until there is such delivery, accompanied by process, or the order of some court authorizing the detention of the principal, the sheriff could not justify, a detention upon the mere oral direction of the surety, except as the agent of the surety. Kinney v. Board of Supervisors, 51 Mich. 620. As is said in State v. Le Cerf, 1 Bailey (S. C.), 410, the surrender of the principal must be to some officer # who may commit the principal to jail, or admit him to bail. The deputy-sheriff cannot require witnesses to attend, or the proceedings to be brought before .him. He would have no authority, .ex officio, to detain the principal, and no specific warrant in his hands to justify the detention.
There was no error in the proceedings below, and the judgment will be affirmed, with costs.
The other Justices concurred. | [
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Sharpe, J.
This is an appeal by defendants from an award of compensation made to plaintiff. The facts in so far as they pertain to the happening of the claimed accident are not in dispute.
On January 2, 1936, plaintiff was employed as a bench worker in the sewing room in the Meldrnm plant of the defendant Briggs Manufacturing Company. Her work consisted of tying threads on inside automobile door panels while seated at a table. These inside door panels were made of cardboard with cloth sewed on them and each panel weighed from 3V2 to 4 pounds. It was the duty of another employee to lift the panels from a conveyor and give them to the women tying threads. Occasionally when the fellow employee was absent and the women were in need of more panels, they would get up from their chairs, pick up several panels from the conveyor, and return to their places. At about 11 a. m., on the morning of January 2, 1936, plaintiff was in need of more panels. She picked up six panels from the stock on the floor, walked to her chair, a distance of from 8 to 10 feet, and as she lifted them to the table she felt a pain in her back, with resulting injuries.
Plaintiff claims that she had frequently picked up four panels, but this was the first time she had ever picked up six panels, and that the injury she sustained was the result of an unusual and unexpected happening not to be looked for in the usual and ordi'nary method of performing her duties as a bench worker.
We have held that a workman did not sustain an accidental injury within the meaning of the workmen’s compensation law when it appeared that he was injured while lifting or carrying an object and that such injury was not brought about by an unexpected event. In Marlowe v. Huron Mountain Club, 271 Mich. 107, we said:
“Plaintiff was a strong and apparently able-bodied and reliable man and to the casual observer appeared in good health. In accepting and delivering these mails sacks, he Was doing and performing the precise services he desired and intended to do. The manner of handling these mail sacks was in plaintiff’s discretion. There is no proof he stumbled, slipped, fell or suffered any undue or unexpected strain, or did anything which compelled him to make unexpected or violent movements due to any miscalculation or chance on his part. He received no blow, jar or shock of any kind, expected or unexpected, and there was nothing unusual or out of the ordinary in his handling of the mail sacks, and certainly nothing which suggested, dictated or directed he should carry two of them at a time. ’ ’
In Hooks v. City of Wyandotte, 278 Mich. 232, we said:
“It (the testimony) does not indicate that the injury occurred otherwise than when the work was being done in the usual and ordinary way and without the intervention of any untoward or accidental happening. That no accident, within the meaning of the compensation law, was shown is settled by repeated decisions.”
See, also, Williams v. National Cash Register Co., 272 Mich. 553; Davis v. General Devices & Fittings Manfg. Co., 279 Mich. 103; Tackles v. Bryant & Detwiler Co., 200 Mich. 350; Sinkiewicz v. Lee & Cady, 254 Mich. 218.
We are of the opinion that plaintiff did not sustain an accidental injury within the meaning of the compensation act. The pain appeared in her back while she was lifting the door panels on the table and after she had carried them a distance of 8 or 10 feet. It was not brought about by her slipping or falling. She was doing her work in the way she had ordinarily done it. She was doing what she had intended to do and the fact that she lifted more panels upon this occasion than at other times does not make the event an unexpected one.
Because there is no testimony in this record tending to sustain plaintiff’s claim of an accidental injury, the award of the department must be vacated. Appellant may recover costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Potter, and Chandler, JJ., concurred. | [
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Bhtzel, J.
Plaintiff, claiming to be the beneficiary-under a group policy issued by defendant and the Chrysler Corporation, brought suit upon such policy. The master policy issued by defendant to the Chrysler Corporation and for which a certificate was issued to decedent, contained provisions similar to those that were discussed in Turner v. Chrysler Corporation, 277 Mich. 689, wherein we held a jury question was presented when there was testimony showing that the employee had become permanently and totally disabled prior to his discharge by his employer. In Rothermel v. Ætna Life Ins. Co., 275 Mich. 425, we cited previous cases and reiteratéd that the provisions in the master policy are part of the contract of insurance and plaintiff may invoice them. The master policy in the instant case provided :
• ‘ ‘ If any member while insured under the policy becomes totally disabled before age 60 and if the disability will presumably prevent the member for life from engaging in any occupation or employment for wage or profit and if satisfactory evidence of such disability is furnished the .¿Etna Life Insurance Company at its home office, the insurance company will pay the amount of insurance in force’upon such member’s life at the time the disability commenced. Payment, will be made in instalments in accordance with settlement option number two or three stated below as shall be designated.”
Was there sufficient evidence to raise a jury question as to whether'decedent had become totally dis abled prior to his discharge by the employer? We must view the testimony in the most favorable light towards plaintiff as the verdict for defendant was directed. It appears that decedent had a severe nervous breakdown after working for his employer for over four years. His foreman sent him to the employer’s doctor who found him suffering from nervous exhaustion, irritability and weakness, neurosis with dyspepsia and recommended that he be allowed to go home. The doctor recommended that he stop work and prescribed four different kinds of medicine that included two different sedatives. Both on positive and negative findings, the ailment was diagnosed as neurosis. The doctor, who saw him several times at the end of September, testified that the suicide at the beginning of December was definitely connected with the condition he found in September. In referring to the condition, he stated:
“It was schizophrenic, he was morose, the type of individual at the time I saw him, who was melancholic. It seemed that he thought the world was against him. He was entering — I couldn’t say it was a manic depressive condition, but it simulated that, that very often leads to suicide. ’ ’
A graduate nurse who was sent as an investigator for the mutual aid division of the employer corporation stated that when she went to see decedent, she found him depressed and in a nervous state and told him at the time that work was his salvation. He did go back to work on or about October 1, 1933, and after working 10 days, he was obliged to stop. Decedent’s sister testified that during these 10 days, he was sick, but went to work because he was afraid of losing his job; that he could neither eat nor sleep; that it was difficult to get him to go to work and on one or two occasions he came home before the end of the day. Decedent’s mother testified as follows:
“My son was ill during August, and he kept on going to work. He worked a few days, and then he was dismissed. After he was dismissed, he was asked or called back to work, and when he was called back to work, he worked a few days, and during the time that he was called back to work, he worked at least two or three hours and then he came home. That is when he became very ill. And then he came home after being called, and being that he was not able to work, staying only three hours, two hours, a day. * * *
“Q. What was the color of his cheeks and his complexion after September, 1933?
“ A. His weight went down very low, and his skin was very sallow and his fingers and skin was very long. After September, 1933, he went down to about 125 pounds. He continued to lose weight after September, 1933. He continued to lose weight during the time that he went back to work, 10 days during October, 1933. I saw him take medicine in September, 1933, and October, 1933. * * *
“Q. How did he happen to go back to work during the 10 days in October, 1933, if you know, if you were present during any conversation?
“A. The nurse told him to go back, if he does not he would lose his job. Yes, he did go back to work. He told me that, 'Mother, I am sick, but I will go.’
“Q. Did he work full days during those 10 days?
“A. No. He did not have very much energy to go back to work during September — before September, it was rather hazy before that, as to whether he wanted to go back, wanted to work or not. During the years before he got sick, I did not have any trouble with him in getting him to go to work. Before September, 1933, he did not cry, but you could tell that he was worried and unhappy. He started to cry in September, around September, 1933,
“Q. How often would lie have these crying spells after September, 1933?
“A. Every time I would suggest a doctor to him, to go to a doctor, why he would start in crying.
“ Q. Did he ever cry, have crying spells, during the time that he went back to work for the Chrysler, from October 1 to October 10, 1933?
“A. No, the only thought in mind that he had was that the nurse told him to go back to work, and he did not want to lose his position.”
The medical expert testified that from September 19, 1933, up to the time of his death, decedent was totally and fully disabled. The employer’s hospital record dated September 17, 1933, showed that decedent was allowed to go home and that he was suffering from nervous exhaustion. On December 2, 1933, he committed suicide.
We are not unmindful of the testimony introduced by defendant which would counteract the claims of plaintiff and would attribute decedent’s despondency to disappointment and failure of achievement. There, however, was a jury question presented on the issue of decedent’s permanent and total disability.
The case is reversed, with costs to plaintiff and a new trial ordered.
Fead, C. J., and North, Wiest, Bttshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Butebl, J.
Plaintiff recovered a judgment for the amount of an assessment on stock held by defendant in a bank of which plaintiff had been appointed receiver. Defendant claims that the failure of the governor of the State to attach the seal of the State to the document approving of plaintiff’s appointment as receiver was a fatal defect and therefore plaintiff had no power to act.
Const. 1908, art. 6, § 11, provides:
“All official acts of the governor, except his approval of the laws, shall be authenticated by the great seal of the State, which shall he kept by the secretary of State.”
Act No. 32, § 6, Pub. Acts 1933, provides:
“In case the commissioner of the State banking department shall decide to wind up the affairs of any such bank or trust company, he may appoint a receiver, with the approval of the governor, who shall proceed to close up such bank or trust company, and enforce the statutory liability of the stockholders as provided by law.”
The act does not provide for any particular formality by which such approval shall be given.
While the language of article 6, § 11, of the Constitution seems quite comprehensive, it does not necessitate the affixing of the seal by the secretary of State, the keeper thereof, to every minor act per•formed by the governor. Were this true, it would require the affixing of the seal to all correspondence and every other trivial act of the governor in pursuance of his duties. The appointment of the bank receiver is not made by the governor, but by the banking commissioner. The statute does not even provide for written approval by the governor though it be given in that manner to avoid any question.
A similar question arose in Attorney General, ex rel. Rich, Governor, v. Jochim, 99 Mich. 358 (23 L. R. A. 699, 41 Am. St. Rep. 606), on the construction of a provision appearing in article 5, § 18, Const. 1850, which is almost identical with article 6, § 11, of our present Constitution. In that case, the governor issued a citation ordering certain State officials to appear before him to answer certain charges of alleged misconduct. The Constitution of 1850 (art. 12, § 8) and not a statute gave the governor authority for his act. The claim was made that inasmuch as the citation did not bear the seal of the State, the proceedings were improperly instituted. The court in holding that it was unnecessary to affix the seal, said:
“But such citation is not such an official act as needs authentication. It has no importance, and is of no personal interest to others than those cited, and falls within the multitude of daily acts, which, while official in a sense, do not require authentication by the great seal.”
The approval of the appointment of the receiver made by the banking commissioner does not rise to the dignity of an act that requires the official seal under article 6, § 11, of the State Constitution.
Judgment for plaintiff is affirmed, but without costs.
Fead, C. J., and North, Wiest, Btishnell,' Sharpe, and Potter, JJ., concurred. Chandler, J., did not sit. | [
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Montgomery, J.
This is an action of negligence. Plaintiff was in the employ of defendant in its foundry and car shops. The declaration avers that plaintiff’s duties ■consisted in attending and operating an emery wheel, which wheel was used for the purpose of polishing and sharpening tools used in said shop and for gumming saws; that while the plaintiff was gumming a saw, using the emery wheel for that purpose, the wheel broke, and he was injured by some of the pieces flying into his face, cutting his lips, and doing other -serious injury. The negligence charged against the defendant was—
1. That the wheel was not properly encased. .
2. That an inferior kind of stone was used; that the stone used was not filled with copper wire, or wire of any kind.
3. That the wheel was run at an improper rate of ■speed.
4. That the stone furnished to be used in said wheel would not properly fit in such manner that it could be made secure.
5. That there was no rest or guard connected with said wheel.
The declaration also averred that plaintiff had called the attention of the foreman of the shop to the fact that the shaft was too loose, and he had promised to remedy the defect. The circuit judge charged the jury as follows:
“If an employé, knowing that a machine is unsafe, works upon it, consents to work upon it, has preknowledge, understands its condition, understands that it is in an unsafe, condition, and knowingly continues to work with it, he assumes the risks that are liable to follow. If lie does that without finding any fault, he assumes them the more; and he also assumes them even if he does find fault, unless, as a result of his finding fault, some promise is made to him by his employer to repair or correct, and there is a failure to do it within the time promised, or within a reasonable time.”
This is, in the abstract, a correct statement of law. Sjogren v. Hall, 53 Mich. 274; Prentiss v. Manufacturing Co., 63 Id. 478; Kean v. Rolling Mills, 66 Id. 277; Melzer v. Car Co., 76 Id. 94. But the defendant complains, and justly, that the facts of the present case did not justify the submission of the questions covered by the instruction to the jury; that the instruction left the jury to find that the defects were complained of by the plaintiff, and that there was a promise to remedy them. The record contains no evidence to justify any such charge. . On the contrary, the plaintiff testified:
“ I remember calling the attention of Mr. Steinroose, the foreman, to the condition of the wheel. I cannot hell exactly the day. It was the same week before I got hurt, I think, I called his attention to it. I told him to see Mr. McKinley; the. machine had got to be looked over or somebody would get hurt, maybe get killed right there. He said he was busy, and he said the shaft is too loose in the box; that is all he said, and he went. He didn’t stop to look it over. He looked just a little. He had no time for going around.”
The record also discloses that the other alleged defects were not only open to the plaintiff’s inspection, but that he actually knew of them. He testified:
“I knew there was no solid rest there, and never had been. I knew before the accident happened ■ that the shaft was loose in the box, and getting worse all the time; and I knew it didn’t have any guard or cover; that it never had had. I knew that it run fast. I had seen it a great many times, almost daily.”
The testimony further showed that the plaintiff made use of a block of wood for a rest, which he sometimes fastened solidly to the frame, but on the occasion in ques tion did not. This was ' a block which he had made himself. He testified that nobody told him to make it; that he made it of his own accord; that the reason he did so was because he could not hold the saw and not have any rest; that he had used the rest a couple of months anyhow.
Plaintiff had worked in the shop for four years as a machinist, and must be held to have assumed the risks arising from such defects as were known to him. Michigan Central R. R. Co. v. Smithson, 45 Mich. 212, and cases above cited.
The evidence as to the material used in the wheel’failed' to establish that it was a defect to use a wheel not filled with copper wire. One manufactory had adopted ■ this method of making emery wheels, but it was not general. The wheel in question was manufactured by a reputable company, and any defect in it would not be apparent to observation. The plaintiff testified: •
“ I found out that the emery wheel that bursted was too soft right there on the work, gumming the same saw. I didn’t know it was too soft before. I hadn’t used that stone before. I found that the wheel was too soft at the first tooth, but I couldn’t help it; I didn’t have any other stone.” ...
He continued to use the wheel until the accident occurred. It would appear that, if the stone was defective for the reason that it was too soft, the plaintiff was the only one who knew of the defect, and he assumed the risk.
There was no case for the jury.- The circuit judge should, in response to defendant’s requests, have directed a verdict for the defendant.
The judgment will be reversed, and no new' trial ordered.
The other Justices concurred. | [
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Long, J.
Plaintiff recovered judgment on the trial in the court below for injuries which he claims to have received by reason of defendant’s negligence..
The record shows that on December 28, 1891, in driving across the railroad track of defendant with a team attached to a lumber wagon, plaintiff was struck by an engine, causing the injury complained of. The negligence alleged in the declaration is that defendant was running a wild engine 'over its road at a dangerous and reckless rate of speed, .and passed this' crossing without giving the signals required by the statute; that cars were left standing on a side track, with an engine attached; and that these cars, and the smoke and steam issuing from the engine attached thereto, obstructed plaintiff’s view in making the crossing.
Defendant’s counsel contend that there was no evidence worthy of consideration showing that the bell was not rung or whistle sounded, and that, therefore, the court was in error in submitting that question to the jury. We think the record contains abundant evidence to go to the jury upon that question. While the train hands, and some others, testified that these signals were given, yet the plaintiff, upon his part, introduced witnesses who testified that they were giving attention to the approach of the engine, and some of whom say “ listening for the whistie,” yet no whistle was sounded or bell rung. This testimony is not negative in its character, but is positive and certain, and, if believed by the jury, warranted them in finding that the signals were not given.
' The second point of contention is that the plaintiff was negligent in crossing. The highway in question extends north and south through the village of Clayton, crossing* the railroad track at right angles. On the day of the injury, the plaintiff had brought to the village a load of wood upon his wagon, unloaded it, and started to return home. Upon the wagon, which was a low one, was a wood rack. He was standing, and driving slowly southward. About 50 feet north of the track, and upon the west side of this highway, was a store building. After passing that building, and when about 12 feet from the track, plaintiff testified that he stopped his team, and looked up and down the track, and listened; that the engine on the side track was blowing off steam, and the smoke from it covered the ground, so that his view was obstructed to some extent, not only by the train standing there, but by this smoke and steam; that, seeing or hearing no train, he started forward again, and his wagon was passing over the track when it was struck by the engine, and he was seriously injured.
Upon this point the court instructed the jury, substantially, that it was the duty of plaintiff to use his senses to' discover whether a train was approaching which would make it dangerous for him to cross; that he should have listened; that he should have looked, if there was an opportunity for him to do so; and if the circumstances Avere such that an ordinarily careful and prudent man would not have thought it safe for him to attempt to cross, with the opportunities which he had for ascertaining whether a train was coming, staying in his wagon, then the plaintiff should have taken such other steps as an ordinarily careful and prudent man would have taken to save himself from impending danger; that a railroad track is itself a notice of danger to a person approaching it; that he must take notice that it is a dangerous place, and must exercise that care and prudence which the ordinarily careful and prudent man would take, who was crossing, to protect himself from danger; and that, if the plaintiff did not exercise that degree of care and prudence, then he was guilty of contributory negligence. These instructions were reiterated in another portion of the charge, and the question of plaintiff's due care fully and fairly left to the consideration of the jury.
We think it cannot be said, under the circumstances here stated, that the court could determine, as matter of law, that the plaintiff was guilty of contributory negligence. It is true that in approaching the crossing, and for several ■hundred feet before reaching it, the plaintiff had an unobstructed view for a long distance westward, except as his view was obstructed by this store building, the train- standing upon the side track, and the smoke and steam emitted by the engine attached to it. From 40 to 60 rods west of the crossing, the railroad track passed through a cut of some depth. Westward of the cut, a person located a few hundred feet north of the crossing could not see an engine approach. The proofs show that this engine was run at a great rate of speed, and it can be readily assumed that the reason the plaintiff did not see it before passing the store building was that it was westward of the cut. * After passing that building, he took the precaution to stop his team, and look up and down the track, and listen for the approach of a train. It is undoubtedly true that at this point plaintiff's view was not so obstructed by the train on the side track, which consisted of the engine and tender, a box car, and a long line of flat cars, but that if he had looked he might have seen the engine approaching him, bad it not been for the smoke and steam emitted by the engine; but, with this smoke and steam obstructing his view, it is quite easy'to understand that he might have looked, and yet not seen the engine approaching. With this obstruc tion to his view, it became his greater duty to exercise his sense of hearing. This he claims to have done, and the question was submitted to the jury whether he did or did not observe that care which an ordinarily careful and prudent man would have exercised under the circumstances. If the bell had been rung or whistle sounded at the places required by the statute, one situated as the plaintiff was, and giving his attention, and listening for it, might have heard it. At least, it was a question for the jury to determine; and it cannot be said, as matter of law, that he was guilty of contributory negligence in attempting to make the crossing as he did.
We have examined the charge carefully, and do hot find that the court misstated the law applicable to the case. The charge was very full and fair, and by it the court, protected all the rights of the defendant company. We find no error in the record.
Judgment is affirmed.
The other Justices concurred. | [
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Bushnell, J.
Daniel McDuffee owed his mother, Hariet A. McDuffee, $1,000, which was secured by a mortgage on farm property dated December 18,1900, in which the mother had a life estate. Daniel became further obligated, under the terms of a written agreement dated March 3, 1915, to pay his mother $275 a year rental for the use of her life interest on the same premises.
Mrs. Hariet McDuffee died August 2, 1934, and Charlotte E. Barker, her daughter, as administratrix, proceeded to foreclose the 34-year old mortgage by advertisement. The notice of foreclosure recited that $200 had been paid upon the mortgage interest on June 2,1921. By bill in chancery, plaintiff sought to enjoin the foreclosure sale of the farm, and prayed for a decree declaring the mortgage not to be a lien, and that it be discharged of record. Plaintiff claims that the $200 was paid on account of accrued rental due his mother, upon which he was somewhat in arrears, and not upon the mortgage indebtedness.
Determination of the precise nature of the $200 payment is decisive of the appeal. No claim is made that any payments of principal or interest were made upon the mortgage between its execution in 1900 and June 2,1921.
On May 25, 1921, Charles E. Barker, husband of defendant administratrix, gave plaintiff a receipt reading, “Received of Daniel McDuffee Jr. One Hundred Dollars to apply on rent due Mrs. Daniel Mc-Duffee Sr.,” and on May 31st, Barker wrote Mr. Taggart, who was then the attorney for the mother of plaintiff as follows:
“Mrs. Daniel McDuffee, who is my mother-in-law, has asked me to drop you a line to the effect that her son, Daniel McDuffee, sent her $100 last week, also notifying her that he would send you about $150 more this week and a little later on another $150.
“She would like to have you see to it that when the next money comes from her son through you, that you send him a receipt for the same, and stating in the receipt that said money is to apply on the interest due her on the mortgage, which, as she understands the matter, will act as a renewal of the mortgage,— thus protecting her in this way as to the latter. ’ ’
The plaintiff wrote Mr. Taggart on June 2, 1921:
“Please find inclosed draft to aplie on acount aginst Daniel McDuffee please send reseat for same By return mail. ’ ’
And received a reply dated June 4th, reading:
“I am in receipt of yonrs enclosing certificate of deposit for $200 to our order and to be applied on the account held by your mother. As I understand, this is to be applied as interest on the old mortgage and we will so credit it.”
Mr. Taggart testified:
‘ ‘ After that letter was written, I am sure that Mr. McDuffee never sent a letter to the effect that this letter was incorrect. I have no recollection of his ever saying so either. I think I can positively say he never did until after his mother’s death. His mother died August 2,1934.”
Plaintiff was examined as to the details of the $200 payment. He said it was “paid for rent” and added:
“I afterwards got a receipt from Taggart & Kingston. When I got it, I called at his office and told him the mistake and he turned me down. I told him it was to be applied as rent, not as interest on the old mortgage. In the receipt he claimed it was interest on the mortgage. He wrote me a letter, too, before that time acknowledging receipt of the money. This is the -letter he wrote.
“ (Letter marked Plaintiff’s Exhibit 5 and received in evidence).
‘ ‘ Then after receipt of this letter I went and told them that they were mistaken, that it wasn’t paid to be applied upon the mortgage, but to be applied on the rent. Before receipt of that letter, and on February 9, 1921,1 received this letter from Taggart & Kingston.
“ (Letter marked plaintiff’s Exhibit 6 and received in evidence).”
We have quoted Exhibit 5 (the letter of June 4th); Exhibit 6 is a letter from Taggart & Kingston dated February 9,1921, addressed to plaintiff, which reads:
“I think it was our understanding that one-half of the note should be payable on or before February 1st. Tour mother has made some inquiry as to whether payment had been made and wish you would arrange to do so and also the balance left from your last payment.”
The note referred to in the letter was for the balance of unpaid rent due Mrs. McDuffee amounting to about $800.
The circuit judge said in his opinion:
“At the outset it should be noted that it is highly improbable that plaintiff ever paid the mortgage. He was clearly unable to pay it. The testimony offered by him but indicates that his mother had allowed that the mortgage was out-lawed; not that it was paid. The claims of plaintiff are inconsistent also; he should read the defense suggested by the Elder Weller in Pickwick papers. He was indebted to his mother for rent at the time of the alleged payment, and had given her a note for same. Her attorneys were pressing him to pay the note and rent due. It is more than likely that his mother was more anxious to have the rent paid than to collect the mortgage, as the lease was intended to provide her a home as well as an income.
“May 25, 1921, Mr. Barker collected $100 from plaintiff, and the receipt reads ‘to apply on rent;’ On May 31,1921, Mr. Barker writes to the attorneys relating the payment of the $100 and stating that he would send $150 this week and a little later on another $150; he then suggested that the attorneys apply such payment on the mortgage; this is not plaintiff’s suggestion; it is Mr. Barker’s suggestion. The letter of June 4, 1921, written by the attorneys does not indicate any direction by plaintiff to apply this on the mortgage, but states that ‘I understand, etc. ’ Plaintiff says that he immediately got in touch with the attorneys and told them it was not to be so applied. The letter of June 2, 1921, which accompanied the draft certainly cannot he construed as authority to apply the payment on the mortgage; it states that it is £to apply on account;’ the word ‘account’ cannot be construed to be meant to mean ‘mortgage.’
“The receipt given by Barker, the letter written by Barker to the attorneys, the letter accompanying the draft, and the letter from the attorneys, when all read together, indicates that the payment was not made on the mortgage; while not much weight can be attached to the testimony of the witnesses produced by plaintiff, still it must be admitted that in the light of the papers referred to, there is a strong probability that plaintiff himself did call the attention of the attorneys to their mistake in making application of the $200 payment. It is impossible for attorneys to have remembered with any degree of accuracy the fact of a telephone call or perhaps a call at the office of which the attorney may not even have personal knowledge. The call or the conversation was most likely with some person who answered in the office of the attorney. ■
“It is the opinion of the court that even if the testimony is disregarded the exhibits indicate that the $200 payment was not made to apply on. the mortgage.
“It follows that the-mortgage is barred by the statute of limitations, and the plaintiff is entitled to the relief requested. ’ ’
The findings of the trial court and its decree conform to well settled law.
“No suit or proceeding shall be maintained to foreclose a mortgage on real estate, either at law or in equity, unless commenced within fifteen years from and after such mortgage shall be due and payable, or within fifteen years after the last payment was made on said mortgage.” 3 Comp. Laws 1929. § 13975.
Appellant admits in her brief that the mortgage was due in 1910 and says if the $200 payment of June 2, 1921, was lawfully applied on the mortgage, then said mortgage would not become outlawed until June 2, 1936. The notice of mortgage sale is dated March 28, 1936.
Section 13988, 3 Comp. Laws 1929 reads:
“Nothing contained herein shall alter, take away, or lessen the effect of a voluntary payment of any principal or interest, made by any person; but no indorsement or memorandum of any such payment written or made upon any promissory note, hill of exchange or other writing or on behalf of the party to whom such payment shall be made, or purport to be made, shall be deemed sufficient proof of the payment, so as to take the case out of the operation of the provisions of this chapter. ’ ’
We said in Hiscock v. Hiscock, 257 Mich. 16, 20 (78 A. L. R. 953):
“The indorsements made on the mortgage are properly admissible in evidence (Judson v. Pratt, 208 Mich. 286), although, in the absence of other testimony, they are not sufficient to overcome the statutory bar (Michigan Insurance Co. of Detroit v. Brown, 11 Mich. 265). The evidence as a whole should be clear and decisive of payment. Cowie v. Fisher, 45 Mich. 629.”
See, also, Gordon v. Heller, 271 Mich. 240, 244.
The law of limitation was discussed in Jewett v. Petit, 4 Mich. 508. We quote from the syllabus:
“If the acknowledgment of a debt barred by the statute of limitations, or, if a partial payment of it, is accompanied by declarations, or circumstances, which rebut the implication of a promise of payment, or that the debtor, by the partial payment, admitted Ms obligation to pay the residue, the claim is- not revived. ’ ’
The same subject is fully treated in Ten Eyck v. Wing, 1 Mich. 40. The court said, at page 47 :
“Whenever a new promise is set up to remove the bar of the statute, it ought to be proved in a clear and explicit manner, either expressly, or by such an unqualified acknowledgment as authorizes its implication. Bell v. Morrison, 1 Pet. (26 U. S.) 351, 362; Cambridge v. Hobart, 10 Pick. (27 Mass.) 232; Gardner v. Tudor, 8 Pick. (25 Mass.) 206; Bangs v. Hall, 2 Pick. (19 Mass.) 368 (13 Am. Dec. 437). And although it is held no set form of words is requisite to constitute a sufficient acknowledgment, and that it may be inferred from facts without words, Whitney v. Bigelow, 4 Pick. (21 Mass.) 110, yet the acknowledgment ought to contain an unqualified and direct admission of a present subsisting debt which the party is liable and willing to pay, and be unaccompanied by any circumstances or declarations which repel the presumption of a promise or intention to pay. A’Court v. Cross, 3 Bing. 329 (130 Eng. Rep. 540). If there be anything said at the time of the acknowledgment to repel the inference of a promise, the acknowledgment will not take the case out of the statute; the acknowledgment must be consistent with a promise to pay. Miles v. Moodie, 3 Serg. & Raw. (Pa.) 211; Fries v. Boisselet, 9 Serg. & Raw. (Pa.) 128 (11 Am. Dec. 683); Moyer v. Kirby, 14 Serg. & Raw. (Pa.) 162, 165; Danforth v. Culver, 11 Johns. (N. Y.) 146 (6 Am. Dec. 361); Laurence v. Hopkins, 13 Johns. (N. Y.) 288; Bands v. Gelston, 15 Johns. (N. Y.) 511, 514.”
There was no new promise of payment of the mortgage indebtedness made by the plaintiff.
The decree is affirmed, with costs to appellee.
Fbad, C. J., .and North, Wiest, Btjtzel, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Long, J.
Defendant is a jeweler at Three Rivers, this State. In January, 1891, he bought of plaintiffs, who are wholesale jewelers in Chicago, about $3,000 worth of goods. He paid $1,000 cash, and the balance was to be paid along to suit his convenience. On September 18, 1891, defendant was visited by an agent of plaintiffs with a chattel mortgage already drawn up to the amount of $1,479.30, payable four months after date (September 18); but this mortgage was not signed at that time. On January 2, 1892, the agent' again called, and the mortgage of September 18, 1891, was signed by defendant. Thereafter defendant went to Chicago, and induced the plaintiffs to release this chattel mortgage. Upon his return home he received through the mail the following paper:
“ Office of B. F. Norris, Allister & Co., Wholesale Jewelers, 113-115 State street, Ohicago.
“ The merchandise consisting of watches, clocks, gold and-plated jewelry, plated ware, flat ware, and optical goods, and show cases and fixtures, as well as fire and burglar ploof safe, now in my store on Main street, in the village of Three Rivers, Mich., and which I chattel mortgaged to 'B. F. Norris, Allister & Co. for $1,479.30, and which said chattel mortgage has this day been released to me by said B- F. Norris, Allister & Co.:
“Now, therefore, I agree to receive the said merchandise and the said fixtures and safe from the said B. F. Norris, Allister & Co. on consignment, to be sold by me for their account, I to account to them upon demand for the merchandise and fixtures aforesaid, and they to have the privilege of taking possession of their own goods when they shall hafe reasonable cause to deem themselves insecure, which state of affairs I hereby concede. whenever they so will it.
“Witness my hand and seal this 6th day of January, 1892, at.Three Bivers, Michigan.”
Defendant signed this paper, and sent it to plaintiffs. They placed it on file in the town clerk’s office at Three Bivers, March 8, 1892. On the 29th of February, 1862, the defendant gave a. chattel mortgage upon this stock of goods for the sum of $1,000 to Henry Vosburgh, and it was filed in the town clerk’s office March 7, 1892. On the 9th, plaintiffs brought replevin, and took into their possession the entire stock. On the trial, plaintiffs had verdict and judgment for six cents damages.
It was claimed on the trial in the court below that this agreement was a mere naked power, not coupled with an interest, and gave plaintiffs no rights of property or of possession. The court was asked to charge that proposition, and also to charge further, as follows:
“The defendant in this cause having waived return of the property, and asking a judgment for the value thereof, the jury are instructed that the defendant is entitled to recover what the fair value of the property was at the time when it was taken on the writ of replevin, with interest at 6 per cent, from date.”
The court was also asked to instruct the jury that the instrument under which plaintiffs claim did not cover after-acquired property.
The court refused these charges, and directed the jury that the plaintiffs had a right to take possession under this agreement whenever they had reasonable cause to deem themselves insecure; that the consideration for the agreement was the discharge of the chattel mortgage which plaintiffs held upon the merchandise, and that such discharge was a good and sufficient consideration to uphold the agreement. The court further charged the jury as follows:
“I submit to you whether it was the intention of the parties to the agreement of January 6 to cover by it and include in it the goods on hand, and described in the mortgage, on the I8th day of September, the day it bears date, or whether it was the intention to include and cover by it the goods on hand on the 2d day of January, when it was in fact signed and filed. This chattel mortgage, as both parties concede, was prepared and acted on the 18th day of September, 1891. The parties met again on the 2d day of January thereafter} and the defendant executed the mortgage that had been so prepared and dated. Now, did the parties intend to chattel mortgage the goods on hand September 18 or on January 2? If they did intend to mortgage the goods on hand, January 2, then you cannot find a verdict for the defendant for any amount. If you believe from all the evidence that it was the intention to include only the goods on hand September 18, and then, if you believe from the evidence that additions wrere made to the stock between September 18 and January 2, and that the plaintiffs took from the defendant the addition of goods so made, then you should give the defendant a verdict for the value of such goods, with interest at 6 per cent, from the time they were taken, the defendant having waived a return of the goods. * * * Yon have nothing to do with the value of the whole stock of goods, — whether it was worth more or less than the amount owing the plaintiffs.”
It is contended by the defendant that the court was in error in instructing the jury that the consideration for the agreement was the release of this chattel mortgage. We think that fact is shown upon the face of the agreement jtself, when viewed in the light of the circumstances under which it was made. Defendant asked to have the chattel mortgage released.' The paper recites the fact of the giving of the mortgage, and that “said chattel mortgage has this day been released.”
The court evidently regarded this agreement as a security for the amount mentioned in the chattel mortgage, which was the entire indebtedness of defendant to plaintiffs. The agreement itself gave the plaintiffs a right to take possession when they should have reasonable cause to deem themselves insecure, and under it to an accounting upon demand for the property covered by the agreement. While the court might have been in error in directing the jury that they should take into consideration whether it was the intention of the parties that the goods purchased after September 18 should be covered and held under plaintiffs’ security, yet this instruction did not injure defendant, for whatever rights plaintiffs had were under the agreement of January 6, and whatever goods were in defendant’s possession at that time were covered hy this agreement. Plaint-if£s are not claiming under the chattel mortgage; that had. been released, and the release of'the chattel mortgage was simply the consideration for the new agreement, which covered all the goods on hand at the time it was given.
Neither was the court in error in directing the jury that they had nothing to do with the value of the property. It was claimed by defendant that over 13,000 worth was taken under the writ of replevin; but it was all covered by the security, and plaintiffs had the right to take it all for the purpose of foreclosing their security under this agreement. The only question to be determined on the trial was. whether at the time the writ was issued plaintiffs had the right to possession of the property. The jury found that they were so entitled. This does not bar defendant of his right to tender the amount of his indebtedness to plaintiffs, and, upon payment or tender, to demand and have his goods returned to him. , If, on a foreclosure and sale, anything remains over the amount necessary to satisfy plaintiffs’ claim and costs, that amount plaintiffs would be compelled to account for.
In this we do not determine the rights between the two mortgagees. That question is not involved here.
Judgment affirmed.
The other Justices concurred. | [
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Wiest, J.
Plaintiff, an Illinois corporation, under an Illinois contract, agreed to plan, design, furnish, blueprints, fabricate, manufacture, ship and install special woodwork for defendant corporation, under its former name of W. E. Wood Company, in a building to be erected in Michigan, at the price of $125,161. Before complete fabrication and any shipment defendant notified plaintiff to delay performance and later to cease work under the contract. Thereupon plaintiff brought this suit to recover damages for such breach of the contract and, upon trial before the court without a jury, had judgment.
Upon review defendant presents two questions:
“1. Was the work of installing the woodwork called for by the contract in this case of such a nature that it was a necessary part of an interstate transaction 1
“2. Are the-damages awarded sustained by the evidence % ’ ’
The contract called for a finished result of highly technical work, with a one-year guarantee, and it fairly appears that, without installation by skilled workmen from plaintiff’s factory, the contract would not have been made. The fabricated woodwork was to be of a special and intricate design and to be wholly manufactured at the factory in Illinois. The installation of such specially designed woodwork was a relevant and essential incident, and the contract, as a whole, was within the protection of interstate commerce.
Under the evidence the case at bar, upon this question, is ruled by the holdings in York Manfg. Co. v. Colley, 247 U. S. 21 (38 Sup. Ct. 430, 11 A. L. R. 611); Westerlin & Campbell Co. v. Detroit Milling Co., 233 Mich. 384; Whitehead & Kales Co. v. Taan, 233 Mich. 597; Richards-Wilcox Manfg. Co. v. Talbot & Meier, 252 Mich. 622.
Defendant ordered the work under the contract stopped and must pay, as damages, the expense of plaintiff toward performance, less the salvage value of materials, specially procured for the job, on hand and loss of profits, if fairly within the contemplation of the parties when entering into the contract, if proved with reasonable certainty and removed from the realm of mere speculation and doubtful contingencies. Davey v. Sanders, 253 Mich. 137; United States v. Behan, 110 U. S. 338 (4 Sup. Ct. 81).
The circuit judge awarded plaintiff the following items:
“(1) Labor including machine and operation for the fabrication of doors and panels.. $742.85
“(2) Service of draftsmen for preparing detailed plans including railroad fare for Mr. Dexter to Detroit. .$2,000
“ (3) Cost of blue printing plans. .$216.01
“(4) Expenses of two trips by Otto Hansen to Detroit. .$113.50
“ (5) Materials and supplies purchased by plaintiff less value of materials on hand. .$774.75
“ (6) Cost of cut lumber and panels less salvage value. .$439.59,” and
(7) For loss of profits $5,000; making a total of $9,286.70.
The record has been examined and found to support the awards, inclusive of loss of profits.
Affirmed, with costs.
Fead, C. J., and North, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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North, J.
Plaintiff purchased on land contract from defendants a lot on which a store building was located. In the particulars hereinafter noted plaintiff claims a mutual mistake was made as to the character of the building and in consequence thereof plaintiff filed a bill of complaint herein and sought. abatement pro tanto of the contract price. After hearing in the circuit court decree was entered dismissing plaintiff’s bill of complaint. He has appealed.
Plaintiff first went into possession in 1923 as the tenant of defendants. He continued to occupy the property as a tenant until April 16, 1927, when he purchased it on a land contract. His occupancy of the building both for business and residence purposes has continued. In the contract the property is described as follows: .
“Two-story brick veneer store building and E 22% feet of W 69% feet of N 89 feet of lots 101 and 102, original plat, in the city of Grand Haven, county of Ottawa, State of Michigan.”
Next westerly of plaintiff’s building is a three-story brick building belonging to the Elks, constructed in 1872. Plaintiff’s building* was erected about 50 years ago. At the time of its construction the north and south brick veneer walls were extended west to and flush with the east wall of the Elks’ Building. There was no party wall agreement between the owners of the respective parcels; but the west wall of plaintiff’s building, while it was in no manner connected with or joined to the easterly wall of the Elks ’ Building*, was erected immediately adjacent, leaving an open space of only two or three inches between the two buildings. This westerly wall of plaintiff’s building was not veneered with brick. It is plaintiff’s claim that the Elks’ building was so. close to the westerly wall of his building that the condition just above described was not easily ascertainable and that at the time of his purchase he supposed the westerly wall of his building, as well as the other three sides, was veneered with brick. Plaintiff purchased this property through an agent who represented the defendants. There is no claim of an intentional false or fraudulent misrepresentation. There is testimony that at plaintiff’s insistence the property purchased was described in the contract as a brick veneer building. However, this description was modified by changing it to a more accurate legal description of the property. This was done at the direction of plaintiff’s attorney.
In 1930 the front of the Elks’ building was torn down and at that time plaintiff learned that the westerly wall of his building was not veneered with brick. Notwithstanding this circumstance plaintiff continued his payments on the contract. In the fall of 1935 he 'made an attempt at an adjustment of some kind between himself and defendants. Although the effort to adjust was unsuccessful, plaintiff continued making his monthly payments until the time of filing of the bill of complaint herein, March 2, 1936. The theory upon which plaintiff seeks relief is that there was a mutual mistake in describing the building as a brick veneered building and in consequence of the westerly wall not being veneered he has sustained substantial damages, the testimony concerning which varied in amount from $1,500 to substantially $2,400. As hereinbefore noted the trial court found against plaintiff and dismissed his bill of complaint.
As appears from the opinion of the trial judge hereinafter quoted, his consideration of the testimony in this case brought him to the conclusion that the description of the.building as a “brick veneer store building, ’ ’ was merely incidental to a description of the property rather than a representation that the building was of a particular character, and that neither the vendors nor the vendee relied par ticularly upon this expression. That instead for something- like 50 years the easterly wall of the Elks ’ building had served in part as a westerly protection for plaintiff’s property, and that in consummating- the contract plaintiff did not rely upon the reference in the contract ,to the building as being “brick veneered” and was not induced thereby to make' the purchase. Evidently the trial court was not impressed with testimony directly to the contrary given by plaintiff. There is testimony that the purchase price of the property was arrived at more •on the basis of a front foot value, and that plaintiff referred to the building on the property as not being particularly valuable. The following is a part of the opinion filed by the circuit judge:
“The testimony of Sidney Justema (the agent through whom the property was sold to plaintiff) indicates that he arranged the sale, and at first described the property simply, by a statement of description of the building; Mr. Andros wisely consulted an attorney, who added the -description of the land (legal description). His testimony indicates that there was no discussion about the ‘construction’ of the building, and that the description used by him (Justema) was simply the convenient one, taken from the appearances. He states that Andros considered (said) the building was of little value; later plaintiff repaired it.
“The proofs leave the court in doubt as to what the parties or either of them thought about this wall when the sale was made. It indicates that neither of. the parties thought of the matter at all, and if they had and the actual facts had been known, there would have been no difference in the matter of the sale, and probably, the building would have been described in exactly the same way. * * *
“Plaintiff had lived in and used the building long enough before he bought so that he should be held to have made up his mind that he wanted the building as he knew it was. It is the opinion of this court that plaintiff has no legal or equitable ground for relief. ’'
Plainly speaking the trial judge evidently came to the conclusion, upon consideration of all the testimony given, that plaintiff’s “discovery,” was an afterthought by means of which he rather belatedly undertook to secure a diminution in the contract purchase price. A careful review of this record discloses nothing which would justify us in departing from the determination of the circuit judge as to the facts in the case. Under the circumstances plaintiff was not entitled to relief and the decree entered in the circuit court, dismissing the bill of complaint, was proper. It is affirmed, with costs to appellees.
Fead, C. J., and Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Montgomery, J.
Plaintiff: brought suit in trover to recover for the conversion of timber cut from. land ' of which he .claims to have been at the time the equitable owner and entitled to possession. At the trial he offered testimony tending to show that one William T. Powers, of Grand Eapids, contracted to sell the land in question to plaintiff, and by the contract gave to plaintiff the right to enter upon, occupy, and lumber on the lands so long as he should keep the conditions of the contract. He also offered testimony tending to show that the contract was fully paid up by him within three years from its date, and prior to the trespass sued for. It appears that upon the making of the contract, in 1866, plaintiff at once commenced to cut the timber from the land, and during the three succeeding winters cut all merchantable timber, as he then supposed. He had not since that time, and prior to the alleged trespass by the defendants, occupied the land. It afterwards transpired that there was a quantity of merchantable timber left, which it is claimed was appropriated by defendants. The cutting by defendants was in 1882.
The plaintiff undertook to trace title from the government to Powers, but whether successfully or not it is not important to determine upon the record, in the view that we take of the case. In addition to proof of the execution of the contract and the payment of the purchase price within three years from its date, the plaintiff also intro duced a quitclaim deed from William T. Powers, dated April 2, 1887, which contained a recitation as follows:
“ The above being subject to land contract dated December 6, 1866, between said William T. Powers and said Smith, and, said contract having been assigned by said Smith, not formally re-assigned to him at this date, is made expressly subject to said contract, and any assignment thereof, and does not pretend to convey any title to said Smith as against any one holding an assignment of said contract.-”
The plaintiff’s counsel states that he- does not rely upon this deed. But the defendants’ counsel do rely upon it, and insist that this deed is evidence showing that the title depending upon the land contract had passed out of1 plaintiff, and, as there is no evidence that the right ever revested in him, it follows that he cannot recover on the strength of the title which he held under such deed. No satisfactory answer to this contention has been suggested, and none occurs to us. The plaintiff is at least prima facie bound by the recitation of fact in the deed. No explanation has been offered, and, standing uncontroverted, it shows that the rights derived under the contract had been transferred and vested in another. If plaintiff is right in his contention that whenever the contract was fully performed by him the holder of the contract title had such an interest as entitled him to maintain trover (as to which contention see Haven v. Manufacturing Co., 40 Mich. 286, and Witheral v. Booming Co., 68 Id. 51), it follows that the one entitled to sue and recover is another than plaintiff, according to the prima facie evidence afforded by the recitations in the deed, which are nowhere explained in the record.
Judgment affirmed.
The other Justices concurred. | [
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Long, J.
Plaintiff brought an action for damages for an assault and battery. The defense was that the plaintiff was the assailant, and whatever th.e defendant did was in self-defense. The parties were each called as witnesses, and several other persons who were present at the affray also gave testimony. Plaintiff had verdict and judgment for $1,500 damages.
While the plaintiff was being examined in chief he stated that defendant said to him during the affray, “I will fix yon for that money you pulled out of my pocket once.” His counsel asked him whether he ever took any money out of defendant’s pocket, and he answered that he never did. Counsel then asked, the witness what trouble he had had before that with defendant, and Avithess was permitted to testify, under objection, that he had brought suit against the defendant for alienating his Avife’s affections, and in such suit had recovered judgment. This was objected to, Avhen the court suggested that the record of the judgment would be the best evidence. Defendant’s counsel objected to the introduction of this record of judgment. The court stated that it A?as permitted as bearing, upon the preA'ious relations of the parties; and the judgment record Avas put in evidence. Upon appeal here the only question raised is that the court Avas in error in permitting this evidence to go before the jury.
The court was not in error in admitting the evidence! It appeared from plaintiff’s testimony that when defendant first assailed him he charged him with pulling money out of his pocket. It was in explanation of this that the court admitted the testimony.
Judgment affirmed.
The other Justices concurred. | [
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Fead, C. J.
August 3, 1928, Nick Schneyder, while an employee of defendant, was injured in the right foot by a car running over it and pinching it. The attending physician'was unable to find any fracture or condition which would prevent him from returning to work. Nevertheless, he did not go back to work. He developed a bad mental condition in which notions of injustice and persecution in connection with his claim for compensation predominated. In 1934 he killed a man whom lie thought was trying to steal papers relating to his claim and •he is now confined in the Ionia State Hospital as a criminally insane person. His right leg has become weakened from disuse, partly at least arising out of his idea, that he cannot use it.
In 1928 'he made claim for compensation for “fracture to right foot.” After hearing, the deputy commissioner denied the claim, adjudging that Schneyder had suffered an accident which arose out' of and in the course of his employment but that — “plaintiff’s disability if he has any is not'the cause of an accidental injury, but is due to other causes.”
On appeal, the award was affirmed. In its opinion the department found “If plaintiff has any disability, at the present time, he has not met the burden of proof in showing that it is due to the original injury.”
The award was not res judicata that Schneyder had not sustained a compensable injury. It was res judicata only to the effect that he had suffered an accident but it had not produced a compensable disability at the time of the hearing. There was nothing in it which would prevent the later allowance of compensation if and when the original injury should develop into an actual disability. That Schneyder has become worse, both physically and mentally, since the hearing is undisputed.
The case presents the question whether and when disability arising from a mental disorder growing out of an accident is compensable.
In 86 A. L. R. 961, note, the cases are collected. It is said there does not seem to be any general rule governing such conditions but “generally no award will be made where the chain of causatiori is broken.” However, the authorities plainly indi-, ,cate the logical distinction:
(1) Where the accident has a direct effect upon the nervous system, all the results thereof, both physical and mental, go to make up disability and determine compensability;
(2) But where the mental disturbance is collateral to the injury, does not arise directly from it but is due to worry, anxiety or brooding over the accident or its effect or compensation for it, or the like, it is not compensable.
In the instant case the distinction was not kept in mind in the presentation of testimony nor in the opinion of the department. The department found the fact of total disability without a proper regard for the applicable rule of law. The issue is whether and how far plaintiff’s present disability is the direct result of the physical injury to his foot, excluding the consequences of mental disturbances collateral to and not arising directly from the physical hurt. In view of the fact that the issue has not been adjudicated by the department, the'award is vacated and the cause remanded to the department for reconsideration in conformity with this opinion.
North, Butzel, Potter, and Chandler, JJ., concurred with Fead, C. J. | [
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Butzel, J.
The three banks had all elected to come under the workmen’s compensation act. (2 Comp. Laws 1929, §§ 8407-8485, as amended.) In January, 1932, a receiver was appointed by the circuit court for the county of Ottawa for the Peoples State Bank. The three banks held a joint mortgage on the property of the Ottawa Furniture Company. Plaintiff had previously been employed by the furniture company as a watchman, and as the banks needed someone to look after their security, plaintiff was employed by the three banks, the Peoples State Bank at the time being in the hands of a receiver. About 60' days later conservators were appointed by the State banking commissioner for the First State Bank and the Holland City State Bank. Plaintiff’s employment was continued. While the opinion of the department states that the conservators were appointed in February, 1933, the record indicates that they were appointed in the early part of March.
The accident occurred on April 15, 1933, apparently five or six weeks after the conservators had been appointed. The accident happened out of and in the course of the plaintiff’s employment. When the receiver and conservators were appointed to take over the affairs of the respective banks, no steps were taken to file a formal election to come under the workmen’s compensation act. However, the receiver of the Peoples State Bank paid for renewal of the workmen’s compensation insurance and apparently considered himself under the act.
Prior to the appointment of the receiver and conservators, the relation created between the banks, their employees and the State, by virtue of being under the workmen’s compensation act, was a contractual one. It is true that the receiver and conservators did not, ipso facto, by their appointment become bound by, or entitled to the benefits of, all contracts made by the debtor. However, when a receiver or conservators take over the management of banks, retaining employees of the debtor banks to aid them in the proper performance of their duties, and fail, within a reasonable time after their appointment, to give notice of a contrary intention, they are deemed to have adopted the workmen’s compensation contracts of the debtor banks. The situation is analogous to a receiver’s adoption of a lease or other contract of the debtor, the benefits of which he accepts in administering his trust. While the payment of the insurance premium by the receiver Jalving’, manifesting an affirmative adoption of the workmen’s compensation contract, would not bind the officers in charge of the First State Bank and the Holland City State Bank, the conservators of the latter banks, after the lapse of some five or six weeks, without voicing a contrary intent, are likewise deemed to have adopted the workmen’s compensation contracts.
In Link Belt Machinery Co. v. Hughes, 174 Ill. 155 (51 N. E. 179), the court stated:
“No express declaration by the receiver to the landlord of his intention or election to abide by or carry out the terms of the lease or contract of his insolvent is necessary. It may be done by acts, by continuing in possession of the premises and for a time paying the rent provided for in the lease, # * * or by a failure to make other and different arrangements with the landlord on the question of amount or terms of the lease.”
Again in London v. Public Utilities Commission of Kansas, 245 Fed. 950:
“There never has been any formal adoption by the receiver of these supply contracts. In such case it is not the law that a contract shall be binding upon the receiver until it is disavowed by him, but the law is that it is not binding upon the receiver until it is accepted by him; and * * * ordinarily the law requires the receiver to indicate within a reasonable time whether or not he will accept a contract. ’ ’,
It is entirely within the spirit of the act that such receiver and conservators remained liable under the act until they withdrew as they had a right to do under 2 Comp. Laws 1929, § 8412. Undoubtedly, the employees had a right to believe that they were being protected under the act and the liability was thus created.
Inasmuch as the accident occurred while the banks were in the hands of a receiver and conservators, the further .question arises whether the banks after the return of the corpus or assets, remained liable for an unpaid claim which arose during the receivership.
In Bartlett v. Cicero Light, Heat & Power Co., 177 Ill. 68 (52 N. E. 339, 42 L. R. A. 715, 69 Am. St. Rep. 206), the court said:
“The main question, presented by the demurrer to the amended declaration in the present case, is this: Where a corporation has been placed in the. hands of a receiver, and an injury or death has been caused by the negligence of the receiver while he is operating the property of the corporation; and where, by stipulation between the parties, the receiver is discharged, and the property is restored to the possession of the corporation, can the corporation itself be held liable for damages for the injury so received during the receivership? * * *
“The receivers in such cases are not personally liable upon their discharge for claims of this character, but the claims follow the property or fund which alone can be used to satisfy them. * * * Not merely claims' arising out of contract, but claims for torts, arising through the negligence of the receivers or their subordinates, thus follow the property or fund.
“In the case at bar, if the plaintiff has no remedy for the death of Ms intestate against the company, then he has no remedy at all, inasmuch as the receiver, during whose administration the death occurred, has been discharged from his office, and cannot be held personally liable.”
In that case the court further quoted as follows from 5 Thompson’s Commentaries on the Law of Corporations, § 7151:
“The receiver becomes the new custodian of a property which was before, in a sense, a trust prop erty in the hands of the corporation. In the management of this trust property negligences are committed by his servants, for which, under the settled principles of law, the receiver is liable, — not personally, except where he has been guilty of personal fault,- — but out of the trust funds in his hands. The liability is then essentially a liability of the fund, and not of the custodian. When, therefore, the fund is transferred to a new trustee, whether it be to a new and reorganized corporation created by -the purchasers at a mortgage sale, * * * or whether it be the original corporation, its former owner, to whom, it is redelivered under a new management, it is the case of a trust property, to which a liability has attached, passing into the hands of a new trustee. The trust property continues liable; but from the very nature of the case, any action ■ brought to charge it must, if the receiver has been discharged prior to the bringing of the action, be brought against the corporation which is its custodian,— that is to say, against the new trustee.”
The rule is recognized in an annotation in L. R. A. 1918F, p. 320, as follows:
“As a general rule, a corporation, while its property is in the hands of a receiver, has no control over either the receiver or his servants, and therefore, in the absence of any liability imposed by statute, or of an agreement to assume liability, is not personally responsible for the negligence or wilful torts of the employees of the receiver; although, as will presently be explained, its property may be chargeable with the amount of the damages thereby occasioned.”
Also, see, Ryan v. Hays, (1884) 62 Tex. 42.
The award is affirmed, with costs to appellee.
North, Bushnell, and Potter, JJ., concurred with Butzel, J. Fead, C. J., concurred in the result. | [
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Hooker, J.
The defendants are the owners of a tract of land in this State, and made a contract in writing with the plaintiff, by the terms of which he was to cut and manufacture the timber on said land. This was to be done upon the premises, and the proceeds were to be divided. The defendants reserved the right to have their share-of the product piled up for them if they so elected. The defendants lived in Illinois, and the contract was made by the plaintiff with Mr. Pells and Mr. Bogardus, who acted for Mrs. Bogardus. After the contract was made it was understood that Mr. Pells would be the active manager for the defendants.
Objection was made to the introduction of the statement to Mr. Saxton that Mr. Pells would look after the business for himself and Mrs. Bogardus, upon the ground that -it tended to vary the written contract of the parties by parol. There is no force in this. It cannot be said to have had that effect. It tended to show that his codefendant consented to his management of the business for her, which would perhaps have been implied from the conduct of the parties if this testimony had not been given.
In cutting timber the plaintiff seems to have taken some from adjoining premises, for which a claim of damages was made by the owners. He placed the sum of $150 in the hands of defendant Pells to pay that claim, but it was not used for the purpose, and plaintiff afterwards settled the trespass matter himself.
The next item claimed is $4, which plaintiff testifies was his due for loading a car ;snth. shingles which belonged to the defendants.
Plaintiff further testified that after the shingles were manufactured Mr. Pells said he would take plaintiff’s share of the shingles, and they were accordingly drawn out to the railroad, and piled with his share. The sum of $21.50 is claimed for them.
Another item of $16.50 was for lumber in the mill yard at the time that plaintiff sold his mill to other parties, which lumber Pells said he would dispose of, ■ and account to plaintiff for.
Another item of $148.50 was for plaintiff’s three-fourths interest in a load of hemlock lumber which he sawed out of Mr. Pells’ timber, which plaintiff charged up, upon the understanding that Pells had sold it, and taken the money. Plaintiff says that the defendants owe him for it. The defendants do not deny that Mr. Pells took this lumber, but say that Mrs. Bogardus is not liable for the wrongful conversion by Mr. Pells.
It also appeared that a few months after the contract was made the plaintiff and his sons, who had become interested in the contract with their father, executed a note and chattel mortgage to Pells for $1,000. The record does not show what it was given for, but, as the mortgage covered the saw-mill, teams, implements, logs, etc., we may perhaps be justified in the inference that it was in connection with the business. The record is equally silent as to the payment of this note and mortgage, except that it shows that plaintiff deposited $230 in the bank to the order of Pells, to pay the mortgage, which was claimed to be an overpayment of $40.
The principal contention upon the part of the defendants is that none of these are joint obligations; that,, if there is any liability at all upon these items, Mrs. Bogardus is not a party to it, and tbe court should have directed a-verdict M' the defendants. We do not take that view of the case. There was evidence tending to support the plaintiff’s theory as to some, if not all, of the items in controversy, which made it necessary that the case should be submitted to the jury. This disposes of assignments 7 and 8.
Error is assigned upon the failure of the court to give defendants’ first three requests to charge, but an examination of the charge shows that the substance of them was given.
We find no error in the record, and the judgment will be affirmed.
The other Justices concurred. | [
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Potter, J.
Plaintiff brought suit against defendant to recover damages for personal injuries received when his automobile collided with the trailer owned by defendant on highway US-10. Verdict for plaintiff was set aside and judgment for defendant entered non obstante veredicto. Plaintiff appeals.
At the time of the accident plaintiff was driving north on highway US-10. He was familiar with it. On his way from JPontiac to Clio, in the nighttime, as he approached defendant’s trailer he observed lights 700 or 800 feet north of. where he was, indicating something was obstructing the road. He saw red lights and flares on the highway when he was 700 feet away. He knew the obstruction was standing still.. Instead, of stopping and making observations to determine whether he could pass with safety, he continued to drive toward the parked trailer and, when about 25 feet south of the trailer, he saw two automobiles coming from the opposite direction driving' side by side in the two lanes used by southbound traffic, and he observed another car which swerved into the lane of traffic then being used by plaintiff, coming at a rapid rate of speed. He knew defendant’s trailer was obstructing the easterly lane of the highway. But he was unable, at the spqed he was traveling, to stop his car and turned his automobile into the lane of traffic obstructed by the trailer, hit it and received the injuries complained of.
Defendant’s negligence may be conceded. Plaintiff was in a position where he placed himself. It is not enough that a driver be able to begin to stop within the range of his vision or that he use diligence to stop after discerning an object,— neither of which plaintiff did. The rule makes no allowance for delay in action. Plaintiff must, on peril of legal negligence, so drive that he can and will discover an object, perform the manual acts necessary to stop, and bring the ear to a halt within such range. Raney v. Troost, 242 Mich. 693; Ruth v. Vroom, 245 Mich. 88 (62 A. L. R. 1528); Thompson v. Southern Michigan Transportation Co., 261 Mich. 440. Plaintiff, when he discovered the object obstructing the highway, had ample time to perform the manual acts necessary to stop but, instead of stopping, he continued to drive his automobile in the direction of the object obstructing the highway at a rate of speed so that’ when confronted by the oncoming cars he drove into the rear of the trailer which he knew was standing on the highway. This was negligence.
Judgment of the trial court affirmed, with costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Chandler, JJ., concurred. | [
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Bushnell, J.
Defendants were convicted of a violation of sections 21 and 22 of the blue sky law, being a part of Act No. 220, Pub. Acts 1923, as amended (2 Comp. Laws 1929, § 9769, et seq., as last amended by Act No. 37, Pub. Acts 1935). A trial by jury was expressly waived by each defendant.
Appellants were charged with unlawfully dealing in securities at the city of Petoskey, in the county of Emmet, without first procuring a license therefor as provided in the act.
We quote the following statement of facts from the opinion of the trial judge:
‘ ‘ The facts are not greatly in dispute. Having obtained from sources undisclosed by the testimony a partial list of the stockholders of the Petoskey Portland Cement Company and the Petoskey Transportation Company, defendants wrote three letters to some 80 of them located in Emmet and various other counties of the State. The exact form of the first letter does not appear though its date, April 7, 1936, and contents, at least in part, appear in Exhibit 5. The two follow-up letters bear date April 11 and April 17, 1936. The letters were written on the stationery of ‘Industries Trust & Finance Company, Book Building, Detroit.’ They were signed: ‘ C. S. Forshee Industries Trust & Finance Co., C. S. Forshee, Trustee,’ the name of C. S. Forshee being written in with pen and ink where it first appears, the balance of the signature being typewritten.
‘ ‘ The letter of April 11th, exhibit 5, says:
“ ‘In our letter of April 7th we stated that we were preparing a prospectus outlining our plans for the immediate future. We are inclosing a copy herewith.’
“The letter of April 17th, exhibit 7, says: ‘We have continued our examination of several companies that are seeking the services that we are preparing to give. We have already entered into a contract with one company that has the most promising future that we have ever seen. * * * Mr. Montague, trustee and attorney in fact, or the writer will be in your vicinity in the near future and if agreeable to you will call upon you with all the papers and information necessary to give you a true conception of our company and its activities now, as well as those planned for the future from every angle.’
“The prospectus, exhibit 1, bears the heading: ‘Aims and purposes of the proposed Industries Trust & Finance Corporation (To be incorporated under the laws of the State of Michigan).’
“An appreciation of the paper can only be had by a reading of it. Briefly, after referring to the depression and resulting crippling of industries and their need for financial help, it states:
“ ‘It is with this in mind that the Industries Trust & Finance Corporation was conceived. It is with this in mind that it will be carried on by an organization composed of Michigan men known far and wide for their honesty, integrity and ability.’
“The prospectus then speaks of ‘management,’ ‘operation of the proposed Industries Trust & Finance Corporation,’ ‘organization and financing of the proposed Industries Trust & Finance Corporation,’ ‘location,’ and ‘possible earnings.’ Under the heading ‘organization and financing of the proposed Industries Trust & Finance Corporation,’ it states:
“ ‘The proposed corporation is to be incorporated under the laws of the State of Miehigán with a capital of 50,000 shares of common stock, fully paid and nonassessable, and without par value. There is to be no preferred stock or bonded indebtedness, and no liability attached to stockholders.
“ ‘The corporation is to be composed of a very limited number of preorganization stockholders only. Not a single share of stock is to be sold after incorporation.
“ ‘A very unique plan of: preorganization financing has been devised, whereby from 20 to 25 recommended persons will be invited to participate in the organization of the company. No genéral solicitation of the public will be made, and all members taken'into the company will be issued stock certificates as soon, as incorporation is completed.
“‘No cash will be accepted for-stock.’-* * ' *
“Defendants in the latter part of April came to Emmet county and interviewed stockholders of the Cement and Transportation companies. The plan as outlined by defendants on the witness stand was to trade stock of Industries Trust & Finance Corporation for stock of nondividend-paying companies. The offers to trade in Emmet county were on the basis of two shares of Industries Trust & Finance Corporation stock for one share of Cement Company stock and three shares of Industries Trust & Finance Corporation stock for one share of Transportation Company stock. No actual sales or trades of Industries Trust & Finance Corporation stock were made in Emmet county; many offers, solicitations and attempts to sell and trade that stock were made there by defendants during the time charged in the information. Two actual sales of Transportation Company stock, which had been secured by defendants in exchanges in other counties for Industries Trust & Finance Corporation stock, were made by defendant Montague but the charge against defendants, as narrowed by the bill of particulars, does not include these sales — the evidence of them was received as characterizing the acts of defendants in Emmet county.
“While most of the offers to trade Industries Trust & Finance Corporation stock were made for Cement Company and Transportation Company stock, defendants did not limit their offers to trade for the stock of those companies. Defendants were willing and offered to trade Industries Trust & Finance Corporation stock for marketable shares in any company — they were appealing to those of the general public holding nondividend-paying stocks. This offer and appeal was repeatedly made in many different counties in the State and 16 such trades were made. The acquired stocks were promptly sold by defendants. From shares so received and sold $1,500 was realized. At the time of the trial there was less than $50 of these funds unexpended.
‘ ‘ One of the sales or trades of Industries Trust & Finance Corporation stock for Petoskey Transportation Company stock, which was made in Charlevoix county, is shown by preorganization subscription agreement, exhibit 8, bearing date of April 29,1936.”
This subscription agreement appointed defendant Forshee and two other subscribers were appointed by him to be trustees and attorneys in fact to do all things necessary and expedient to carry out the purposes of the proposed corporation, including the signing of the original articles of association. The agreement contained a ratification and approval of all acts that the trustees and attorneys in fact might do in the premises.
Decision turns on whether the record- shows a ‘ ‘ public offering ’ ’ of stock and whether it shows that subscriptions were “solicited by advertising.”
The statute (2 Comp. Laws 1929, § 9773), as amended by Act No. 37, Pub. Acts 1935, reads:
‘ ‘ Seo. 5. And, except as hereinafter provided, the provisions of this act shall not apply to the sale of any security in any of the following transactions:
“(f) Subscriptions to capital stock made by incorporators in a proposed Michigan corporation, not exceeding twenty-five in number: Provided, That no public offering is made nor subscriptions to such proposed corporation solicited by advertising or commissions received for such subscriptions and that such subscribers actually sign the articles of association in person and not by agent.”
“The purpose of the act is to prevent fraud, deception and imposition on purchasers of securities,” Wickstrand v. Nelson, 273 Mich. 393, and it “should be liberally construed.” Eichbauer v. United, States Fidelity & Guaranty Co., 278 Mich. 674, 680, and 2 Comp.-Laws 1929, § 9771, as amended by Act No. 37, Pub. Acts 1935.
Appellants argue that since the act permits the obtaining of subscriptions in a proposed corporation not to exceed 25 in number, it must necessarily contemplate the right to devise some plan to obtain these subscriptions; that the offerings of the defendants-having been made privately by letter, were personal in their nature; that a public offering is one made to the general public under the terms of which anyone might subscribe; and that-the offering to a selected list of names cannot be said to be public in a State with a population of more than five and one-half million people.
‘ ‘ The 'dividing line between securities which are issued for purpose of being offered for sale to the public and those which 'are not may not be readily discernible in every instance. Each case must be decided upon its own particular set of facts.” In re Leach, 215 Cal. 536 (12 Pac. [2d] 3).
We quote the following from 22 California Law Review, 347 as illustrative of the meaning of sales to the public: '
“By ‘sales to the public’ it is not meant that there need be offers or sales to all of the people but only that there be offers or sales to many of them as contradistinguished from a few. The court must decide whether there has been such a sale or offer upon the facts presented in each case. This would protect the constitutional right qf the bona fide owner to dispose of his property without regulation except where it would be adverse to the best interests'nf the community, i. e., where he endeavors to dispose of them by sales to the public. This would, of course; impose the burden on the court of determining in each case whether there was such a sale, but the Cali fornia court has recently said that the phrase (to the public’ as used in certain parts of the securities act was ‘ reasonably plain and free from any serious ambiguity.’ (In re Leach, 215 Cal. 536, 545, (12 Pac. [2d] 3, 7).
“There is no logical reason to differentiate the seller of securities from the seller of fruit or meat. In either ease it is the duty of the seller to determine for himself whether he is selling to the public or only malting a private sale. In both cases the purpose of the regulation is to protect the public from dangerous products and in both the burden of determining whether he comes under the act is not unjustly placed on the seller.”
The distinction between a public and a private offering cannot be determined by arithmetical calculation, nor can it be controlled by language of negation in a prospectus or circular letter. No hard and fast rule can be laid down by which the limits between a private and a public offering may be ascertained in every instance. In this field of the law as in others, each situation must be determined by its own particular set of facts. See In re Leach, supra.
In this instance, the defendants, as indicated by their representations and the prospectus, were concerned with the promotion of an idea within the pale of the law, but without securing a license from the securities commission. An offer to sell to parties selected from a list of stockholders of a corporation is no more a private offering than if names had been selected from a city or telephone directory, or taken from a list supplied by those in the business of selling such information. _
Forshee testified as! follows:
“As to how it happened that we picked out the stockholders of the Petoskey Portland Cement Com pany, that was due to the fact, I believe, that- Mr. Montague had in his possession a stockholders list, an old list. As to whether we discussed our plan or prospectus, so to speak, and decided that we should pick out a particular company which possibly was not paying dividends upon its stock and that we decided by this plan or course of procedure that it would be much easier to convince or influence these people to turn'their stock over, that is not the idea we had in mind originally. While it is true that we used that list, but it was not the intention to deal entirely in Petoskey Portland Cement Company stock. As a matter of fact, we found that many of these people held stock of different kinds and our plan was to have them submit a list of their holdings and we would endeavor to find a market for them. It would be natural that our main thought would be to organize this company in the easiest possible way, and to finance it the same way. We proposed to get the lists of their holdings and then market their stock, try and find a market for it. They were all asked that question, if they had any stocks or bonds that were lying dormant. We proposed to try and find a market for them.”
This and other testimony indicates that the nature of defendants’ plan was to secure slow-selling non-dividend-paying stock that nevertheless could be converted into cash. Defendants’ offers to sell or trade the stock they proposed to issue were not limited to those who had been contacted by letters; the testimony shows a willingness on the part of appellants to deal with anyone who might become interested.
We purposely refrain from defining either a public or private offering, and hold that the facts in this case warrant the conclusion reached by the trial judge “that the securities of the Industries Trust & Finance Corporation were offered to the public and the transactions fall within the inhibition of the statute. ’ ’
Were subscriptions solicited by advertising1? The act does hot contain its own definition of the word “advertising.” Appellants say the so-called prospectus was in reality only a form letter and not ‘ ‘ advertising.” The act should not be rendered impotent by a harrow interpretation of its language. The word as used in the act is certainly not limited to a notice or offer printed in a newspaper or periodical having general or local circulation, and we may take judicial notice of the widespread use of the mail for advertising. In section 16 of the act (2 Comp. Laws 1929, § 9784, as amended by Act No. 37, Pub. Acts 1935), we find the word used in speaking of “a prospectus or other type of circular or advertising.” The word “advertise” is defined in 2 C. J. S. p. 890 as
“To advise, to announce, to apprise, to command, to give notice of, to inform, to make known, to notify, to publish,” etc.
“It has been said that originally the word (advertising) meant ‘noticing,’ or ‘observing,’ but gradually became extended until now it means ‘making public intimation or announcement of anything,’ whether by publication in newspapers, or by handbills, or by oral proclamation. ’ ’
Many authorities, while not directly in point, but which are of value in a discussion of the problems arising out of the operation of the “blue sky law,” are collected and commented on in 87 A. L. R. 42. See, also, 34 Michigan Law Review, p. 1135 (June, 1936).
We again find ourselves in agreement with the trial judge, who said:
“Defendants urge that by ‘advertising’ the statute means ‘announcement in periodicals or by handbills or placards.’ It is not believed that the legislature intended that the ‘advertising’ should be done in any particular way, otherwise they would have so specified in the act. There are many definitions of ‘advertising,’ and some of them, such as ‘to inform’ * * * ‘advise’ * * * ‘a giving notice, information, notification’ (Standard Dictionary), appear to fit this case. The printing and widely circulating of the prospectus inviting the public to subscribe for the stock, the many letters (some 240 of them) written and sent for the same purpose, and the personal display and distribution of the literature for the same purpose, must be held to be ‘advertising’ within the meaning of the statute.”
The judgments of guilty are affirmed.
North, Butzel, Sharpe, Potter, and Chandler, JJ., concurred with Bushnell, J. | [
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Pbad, C. J.
Plaintiff Prank Dramis, with his wife Sophia as a passenger in his car, drove east on Grand River avenue in Detroit at about 3:30 o’clock a. m. He approached Livernois avenue, which intersects Grand River, at a speed of 20 to 25 miles per hour, slowed down to 10 to 15 miles, and, when 40 to 50 feet from the intersection, looked to the left or north up Livernois avenue. Because of an obstruction he could see north on Livernois avenue only 30 to 40 feet beyond the north curb of Grand River avenue. He saw no cars approaching and saw no traffic going either way on Grand River avenue. He increased his speed to 18 to 20 miles per hour, did not again look to the left but, as he reached the intersection, looked right or south. When he g’ot into the intersection his car was struck by a truck, with semi-trailer attached, driven by defendant from the north on Livernois avenue at a speed of 35 or more miles per hour. Neither driver saw the other before the collision.
Grand River avenue is a through highway 80' feet wide and cars coming into it on Livernois avenue are required to stop at the intersection. There are double street car tracks on Grand River avenue and a safety zone 70 to 80 feet long at the west of the intersection. Plaintiff Dramis was about at the middle of the safety zone when he looked to the left. The intersection was well lighted but the traffic light which operates in the daytime was not then working.
The court directed verdict for defendant on the ground that Dramis was guilty of contributory negligence. The cases were tried together and the issues were identical.
In the state of the traffic it was the duty of Dramis to make reasonable observation both to the left and right of the intersection. When he looked to the left he saw a clear space to the north about as long as his own distance from the point of collision. There was nothing in sight to alarm him. He was on a through highway with a right of way over all cars on Livernois avenue and had the right to assume that any driver from the north would stop at the intersection. His distance from the intersection was short. His duty to look to the right was close upon him. To hold him guilty of negligence as a matter of law would require us to say that a reasonably prudent person would have put little or no reliance upon the preference of a through highway but that he would have anticipated, in spite of all indications to the contrary, that a driver might come from the north and violate the law by refusing to stop. Such a rule would seriously impair the use of the through highway and the value of stop signs; nor would it be in accord with the practice of careful drivers on such highways. See Hilliker v. Nelson, 269 Mich. 359, and Townshend v. Reader, 252 Mich. 465; Arnold v. Krug, 279 Mich. 702.
On the other hand, it cannot be said that Dramis was free from negligence as a matter of law. It is a well-known fact that early in the morning, when traffic is light, drivers are not so heedful of stop signs as im the daytime. Dramis had an open road ahead. It is not difficult to quickly shift gaze from side to side. The fact that he did not see the truck until the moment of collision suggests an inattention which forbids holding him guiltless of negligence in law. In our opinion, the record presents an issue of fact for the jury.
In addition to the state of the testimony, defendant’s motion for directed verdict was based upon the pleadings. He invoked Court Rule No. 24 (1933).
“Section 1. New matter alleged in the answer filed in any action shall be answered by a reply in the same manner that allegations in the declaration or bill of complaint are required to be admitted or denied in the answer.”.
In their declaration plaintiffs set up the claimed circumstances of the collision and averred that when they arrived at the intersection, Dramis looked to the right and left and, seeing no traffic in the immediate vicinity, he determined he was able to proceed in safety; and that defendant failed to stop at the intersection.
In his answers defendant alleged that at the time he entered the intersection plaintiffs were not in such close proximity to it as to endanger or interfere with defendant’s progress and that defendant entered the intersection first.
Plaintiffs did not file a reply. Defendant’s contention is that plaintiffs’ failure to deny these allegations of his answers, by reply, resulted in their being admitted by plaintiffs under the rule and rendered Dramis guilty of contributory negligence as a matter of law.
Disregarding all objections to defendant’s right to make the contention on motion to direct and passing the point of the legal effect of the claimed admissions, we hold the contention untenable.
The court rule was intended to simplify, not to complicate the practice, to define the issue, not to confuse it by requiring court and counsel to balance each allegation against each other allegation in the pleadings on apothecary’s scales. The rule requires “new matter” to be answered, not every new allegation of fact. "When a plaintiff sets up the circumstances of a transaction, defendant’s statement of a different set of circumstances calls for no reply by plaintiff unless defendant’s answer alleges facts which would defeat plaintiff’s cause of -action even though he proved all the allegations of his declaration. In substance, “new matter” means matter in avoidance of plaintiff’s claim, not merely in contradiction of it. In this case the allegations in the declaration and answer are in direct contradiction of each other. Both cannot be true. They present a triable issue.
Reversed, with costs and new trial.
North, Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Potter, J.
Plaintiff recovered a judgment against defendants for $5,000 damages for injuries sustained while a pedestrian by being struck by an automobile. Defendant Zuck alone appeals.
Plaintiff was injured by being struck by an Oldsmobile and appellant’s liability depends upon whether he was the owner thereof at the time plaintiff was injured. At the trial, a police officer was permitted to testify, against appellant’s objection, to what"' defendant Kozakiewicz said at the police station after the accident about appellant owning the automobile. The police officer, Fred Wilkinson, stated defendant Kozakiewicz told him who owned the car he was driving. This was objected to as hearsay and the court stated he would receive it as a part of the res gestee. The testimony showed this statement was not taken immediately following the accident but at the police station approximately 15 minutes after the accident occurred, and that at that time the defendant Kozakiewicz said the car belonged to Nick Zuck. All this was objected to as hearsay.
Statements which are part of the res gestee are always hearsay but constitute, as generally classified, an exception thereto based upon the fact they are spontaneous exclamations which by virtue of their origin have a peculiar trustworthiness. The only conditions on which such statements will be allowed in evidence are: (1) That there is a startling occasion, startling enough to produce nervous excitement and render the utterance spontaneous and unreflecting; (2) the statement must have been made before there has been time to contrive or mis represent; and (3) the statement must relate to the circumstances preceding it. Rogers v. Railway Co., 187 Mich. 490; McAvon v. Brightmoor Transit Co., 245 Mich. 44; Bernard, v. Grand Rapids Paper Box Co., 170 Mich. 238 (42 L. R. A. [N. S.] 930).
The testimony admitted against appellant’s objection was as to the defendant Kozakiewicz a self-serving declaration,— and as to appellant Zuck not a part of the res gestee, but clearly hearsay. There was little testimony outside of that offered by officer Wilkinson tending to show appellant Zuck was the owner of the automobile. The admission of this testimony was prejudicial error. The other questions are not’likely to arise upon a retrial of the case.
Judgment reversed, with costs, and new trial ordered.
Fead, C. J., nell, Sharpe, and North, Wiest, Butzel, Bush- and’ Chandler, JJ., concurred. | [
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McGrath, J.
This is a bill to remove a cloud (a levy) from the title of certain lands conveyed by John B. Schaible to David Schaible, and by David Schaible to complainant, and levied upon under an execution issued upon a judgment in favor of defendant against John B. in an action of trespass for the taking of certain personal property. Defendant sets up that the conveyances were fraudulent, and asks affirmative relief.
John B. is the father of David and complainant. The suit at law was commenced January 11, 1889. On September 11, 1889, John B., by warranty deed, conveyed the lands in question, consisting of 170 acres, to David. The consideration expressed in the deed was $9,350. On the same day John B. transferred to another son ' a mortgage of $1,700. On May 10, 1890, defendant recovered judgment for $2,200. On January 29, 1891, an alias execution issued, and a levy was made on this land. On March 9, 1891, David conveyed to complainant. The consideration named, in this deed was $1,800, and the deed was subject to “a, mortgage of $5,000.” Complainant gave his note to David for $1,700, payable “three years after date, with interest at 5 per cent.” On the same day David made his will in favor of his three brothers, John, George, and Jacob. David died April 9, 1891, and the only asset of his estate was said note. Complainant paid the debts and expenses of the estate, which aggregated $202.90, and .gave to each of' his brothers, John and George, a note for $499.43, and the-original note was surrendered to him. Complainant, called by defendant, testified that the understanding between them was that the notes to John and George were not to be paid until this farm was sold.
Complainant offered the deeds from John B. to David and from David to complainant, and the levy, and rested. Defendant's proofs clearly tend to show that David, at the time of the conveyance to him, lived with his father, and liad no means or property. The bill sets up that John B. is insolvent and financially irresponsible; and complainant, when called by defendant, testified that after September II, 1889, his father had no means or property. There was also proof that after the conveyance.to David, and, indeed, after the deed to complainant, John B. exercised acts of control over the lands in question. Complainant and his father were present in court while the testimony was taken, and were not called to rebut any presumptions arising from this showing.
It was sufficient for defendant to show an existing demand, upon which judgment was subsequently had; that the conveyances by John B. left him without property or means to pay that judgment; and that the conveyance to David was without valuable consideration. The first two propositions were .conceded. The showing that David was without means to purchase, and that John B. was without the proceeds, clearly tended to establish the remaining proposition. It was unnecessary to offer further proof of fraudulent intent. A party is presumed to intend the matnral and necessary consequences of his own acts, and, ■when prejudice to the rights of creditors results, the act .is constructively fraudulent, notwithstanding good motive -or intentions. Winchester v. Charter, 97 Mass. 140; Potter v. McDowell, 31 Mo. 62; Farrow v. Hayes, 51 Md. 498; Allan v. McTavish, 8 Ont. App. 440; Phelps v. Curts, 80 Ill. 112; Bank v. Wheaton, 8 Me. 381; Roberts v. Radcliff, 35 Kan. 502; Babcock v. Eckler, 24 N. Y. 632; Morrill v. Kilner, 113 Ill. 318; Bohannon v. Combs, 79 Mo. 305. The conveyance being voluntary, it is immaterial whether •or not the son participated in the design. Matson v. Melchor, 42 Mich. 477; Reeves v. Sherwood, 45 Ark. 520. The levy was notice to complainant. Cook v. French, 96 Mich. 525. In any event, the conveyance to his grantor being fraudulent, the onus was upon him to show that he purchased in good faith, and for a valuable consideration, Berry v. Whitney, 40 Mich. 65; Letson v. Reed, 45 Id. 27; Davis v. Nolan, 49 Iowa, 683.
It is insisted that defendant. was not at the time of the conveyance a creditor, within the meaning of the statute# How. Stat. § 6203. The statute protects not alone “ creditors,” strictly speaking, but “other persons, of their lawful suits, damages, forfeitures, debts, or demands.” In Hill v. Bowman, 35 Mich. 191, the decision was placed upon the ground that fraud was not shown. The same is true of Brown v. Dean, 52 Mich. 267. The statute was held, however, to apply in Beam v. Bennett, 51 Mich. 148, where the conveyance was after verdict, but before judgment, in an action for -breach of promise of marriage. Although the verdict had reduced the amount of plaintiff’s damages to a certainty, yet, under Detroit Post & Tribune Co. v. Reilly, 46 Mich. 459, there was no debt until entry of judgment. In Pashby v. Mandigo, 42 Mich. 172, Mandigo was a co-surety with Pashby, and before the maturity of the paper conveyed his property to his son.
The construction of the word “creditors” in Hill v. Bowman is a narrow one at best, and the language employed wholly overlooks the other terms employed in the statute, and necessarily excludes them. It is certainly difficult to comprehend why the language “ other persons ” having lawful suits, damages, or demands, should be disregarded. Similar statutes have been construed in other states, and a consensus of the decisions is given in the text of 8 Amer. & Eng. Enc. Law, 750, where it is said:
“A creditor, in this connection, is not necessarily the holder of a debt merely, as that term is generally understood; for one having a legal right to damages capable of judicial enforcement is a creditor, within the meaning of the statutes and law upon the subject of fraudulent conveyances."
The authorities cited — and they are numerous — support the text.
In the present case defendant liad a demand for the taking and conversion of property upon which suit had been commenced, and upon which judgment was afterwards obtained, and we think she is clearly within the protection of the statute. At common law, subsequent creditors are entitled to relief as against fraudulent conveyances made in anticipation of liability, and there is no reason why defendant should not be aided by any presumption which existing creditors would be entitled to avail themselves of.
The decree below is reversed, and a decree entered here for defendant, in accordance with her prayer, with costs of both courts.
The other Justices concurred. | [
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Bushnell, J.
Arthur E. Sharrow is a son, and Minnie S. Shanks is a stepdaughter of Annie Sharrow, deceased. Ruth K. McMichael and Walter H. Sharrow are a sister and brother of Arthur and Minnie. Mrs. Annie Sharrow owned 76 acres of land in Livonia township, Wayne county, where she lived with Ruth and Walter and their families. She became a widow in 1929 and two years later, on December 29, 1931, she conveyed by warranty deeds a portion of her farm to her daughter Ruth, and another portion to her son Walter; these deeds were recorded December 31, 1931. After her death some years later, her will, which she executed in 1929, was admitted to probate. In it she provided for the payment of certain notes made by her husband and herself payable to Ruth and Walter, and devised and bequeathed the residue of her estate in equal shares to Ruth, Walter, Arthur and Minnie. Plaintiffs sought cancellation of the conveyances, claiming that they were obtained by fraud on the part of Ruth and Walter.
The trial judge said in his opinion:
“This is but another of the many distressing family disputes that the court is called upon to view with increasing frequency, and while there may be some circumstances which might arouse the suspicions of a chancellor, I cannot say upon this record that the defendants perpetrated any fraud upon their mother to obtain the deeds in question, nor did they exercise any duress or overcome her will and substituted their desires for hers in the premises. The record discloses some hard feelings between Arthur and his brother and sister at stated intervals and which feelings the mother was aware of. Testimony was also introduced with respect to the mother’s feelings towards the plaintiff Arthur, for his failure to pay more attention to her, and that his respect and affection for his parents materially increased after they had sold the farm to a syndicate and obtained a considerable down payment with a goodly balance reserved in a land contract.
“In going over the record in this case and the reasonable inference to be drawn from it, I do not feel that the plaintiffs have sustained the burden of proof required of them to establish the allegations they have made in their bill of complaint against the defendants.”
An examination of the testimony requires concurrence in the conclusions reached by the trial judge. The record is barren of any proof of fraud; on the contrary, it shows that Mrs. Sharrow knew what she wanted to do and did it. The testimony of the scrivener clearly indicates that she was unin fluenced by anyone and was unaided except by himself, and, that he was a wholly disinterested party.
“Fraud cannot be lightly inferred and the burden of proof was npon plaintiffs. The circuit court was not convinced that plaintiffs established the fraud charged and our examination of the evidence leads us to the same conclusion.” Kirby v. Gibson Refrigerator Co., 274 Mich. 395, 401 (103 A. L. R. 1343).
The decree is affirmed, with costs to appellees.
Fead, C. J., and North, Wiest, Btjtzel, Sharpe, Potter, and Chandler, JJ., concurred. | [
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McGrath, C. J.
Defendant has its home office at Cleveland, Ohio, and in 1884, and subsequently, operated a mine at Negaunee, Marquette county, and a pig-iron furnace at Fayette, Delta county, in this State. Capt. Merry was its general agent, and resided at Negaunee, and his son Harry Merry was superintendent of the furnace at 'Fayette.
Plaintiff's contention is that in 1884, upon the invitation of Capt. Merry, his intestate, Robert W. McClellan, went to Negaunee, and there entered into a verbal contract with defendant, whereby he was to deliver charcoal at 8 cents per bushel on certain docks, some few miles from Fayette, in boxes furnished by the company, the capacity of which was agreed upon at 125 bushels each; that, under this arrangement, McClellan began the delivery of the charcoal in August, 1884, and continued until August 1, 1888; that, during this period, defendant advanced moneys and supplies to McClellan, and from time to time furnished statements of account,- showing both debits and credits; that these statements, until the spring of 1885, credited the charcoal at 8 cents per bushel, but from that time on it was credited, sometimes at 6, again at 6|-, at other times at 7, and again at 8 cents; that from the fall of 1887 until August 1, 1888, although the charcoal was delivered in boxes, as formerly, defendant, without McClellan's consent, and against his protest, determined the amount of charcoal by weight, instead of by boxes, as agreed upon. McClellan -brought suit for the difference between the credited and the contract price, and for the difference in quantity as well, and had judgment. Defendant appeals. McClellan died after appeal taken.
Defendant contends that the remark made at the inception of the contract, that the boxes held 125 bushels each, was not an agreement that the quantity should not be ascertained in any other way. The testimony, however, tended to show that such method was agreed upon, and that it was pursued for three years thereafter; that Capt. Merry knew the quality of the timber from which the charcoal was to be made, and that there was a substantial difference in weight, dependent upon the kind of wood used in the manufacture. An inspector was agreed upon, and during the period in which the quantity was determined by boxes he made deductions for short measure, braize, and poorly-burned brands, and during the period when the quantity was determined by weight this same inspector made proper deductions for brands and braize, and plaintiff claimed only for the difference in the averages during the two periods. We think, therefore, that the method of determining the quantity was material, and that the method agreed upon excluded any other method.
It is next claimed that the contract was not mutual, inasmuch as it was an agreement on the part of the company to take what McClellan could furnish, and was therefore not binding. But plaintiff seeks to recover under a contract so far executed. The contract was indefinite only as to time and quantity to be delivered under it, but that which was to be delivered, and the price, were definitely agreed upon; and defendant’s offer to pay the price, without notice to the contrary, must be regarded as a continuing offer, accepted as acted upon, and binding upon it. Cooper v. Wheel Co., 94 Mich. 272.
It is next insisted that the rendition of statements of account at intervals, during a period of four years, showing a balance in favor of defendant, estopped plaintiff. This would have been true, if McClellan had made no objection, but the testimony tended to show that he did not acquiesce, but repeatedly protested, and was assured that the matter would be adjusted upon the basis of the original contract. McClellan ■ testified that he called the attention of Capt. Merry to the matter, who told him that he would inform Harry that the price was to be 8 cents; and that on other occasions he complained to Harry, who assured him that the mistakes would be rectified. Much stress is laid upon a statement made by McClellan that at' one time Harry told him that he had to make a good showing to the people at Cleveland, and it is urged that McClellan was a party to an attempt to deceive the company. McClellan was not, however, responsible for what representations had so far been made to defendant: The fair inference from his testimony is that this remark was made at a time when he first discovered the change in the price at which the coal was credited; that at that time he had just received three or four monthly statements, in one batch; that he was there to protest against the price credited, and, upon being assured that the matter would be rectified, he left the statements thus far received with the book-keeper for the very purpose of having them corrected. All parties conceded ■that the original agreement was 8 cents, and McClellan’s testimony tended to rebut an inference that he was colluding with the agent to deceive the principal, or any presumption of acquiescence on his part, or that defendant had concluded to withdraw its offer of 8 cents.
The final contention is that McClellan was precluded by the concessions made in a subsequent contract and mortgage from claiming that in the whole business ending November 30, 1888, he was not indebted to defendant in the sum of $4,251.60. It appears that the parties continued their dealings after August 1, 1888. By stipulation at the trial, it was agreed that on December 1, 1888, the balance of account between the parties, resulting from their dealings up to that date, was the sum of $4,251.60 in 'favor of defendant; but, by the same stipulation, plaintiff reserved the right to make the claims which he presented at the trial. The stipulation concludes as follows:
“The above-mentioned balance of $4,251.60, which the defendant contends for in this action, comprises all that defendant-claims in this suit; all subsequent charges, after December 1, 1888, to plaintiff, being otherwise provided for.”
An agreement was entered into between the same parties, dated April 1, 1889, by the terms of which it was agreed that McClellan should manufacture charcoal “from wood now on the bank at the kilns;” that the defendant should advance certain sums to McClellan as the wood was hauled, piled, and measured at the kilns, which advances should be deducted from the monthly payments; that an additional amount per bushel should be deducted, to be applied on an indebtedness existing and due for advances made on said wood, amounting to $6,382.25. This contract contains this further provision:
“It is mutually agreed that the security in this agreement shall not be construed to secure any indebtedness except that above mentioned for advances made since the first day of December, 1888.”
On the same date, McClellan executed a chattel mort- • gage to defendant, which recites that being indebted to defendant in the sum of $6,382.25, “being amount advanced on wood now on the bank at kiln, and not representing total indebtedness” of said McClellan to said company, etc.
It is very clear from this contract and chattel mortgage that the .parties intended to keep separate and distinct, two items of account,, viz., the disputed account, of' $4,251.60, for advances made prior to December 1, 1888,. and the item of $6,382.25, for advances made subsequent to that date; and they evidently sought to avoid, in that agreement and mortgage, an existing controversy concerning the first item. Defendant had been claiming the first-named sum as advances, and as a balance due to it. upon the former contract; and McClellan, while admitting the advances, had been insisting upon a counter-hLaim under the same contract which would wipe out the balance as per statement, and turn the scales in his favor. The accounts rendered had been disputed, and there is no pretense either that the controversy here involved arose afterwards, or that the new contract was regarded by either party as a settlement of the old matter. Nor was defendant misled. ' While the language of these instruments was proper for the consideration of the jury, it did not, standing alone, as a matter of law, conclude plaintiff:. Although the contract and mortgage refer to “any indebtedness” for' advances made prior to December 1, 1888, and to a “total indebtedness,” neither specifies the amount of said advances or of the total indebtedness. If an indebtedness be conceded, what indebtedness? The elements of an account stated are not present. It was necessary to go elsewhere to get at the situation of the account between the parties, and, having done so, it is found that at the time a controversy existed, which neither party regarded as having been settled by the writings in question; that a change had been made in the administration of the company’s affairs; that the object of the new contract was to avoid further disputes, and in framing it the parties desired to avoid existing disputes, rather than, to settle them.
The court was requested to instruct the jury that the plaintiff was barred by the acknowledgments in the contract and mortgage, but the court refused the request, but instructed the jury that—
“ If the plaintiff, as late as the 1st of April, 1889, entered into a new contract with defendant, by which they agreed that the plaintiff was then owing the defendant a certain sum on account of that old deal and indebtedness, it would be a statement of the account between them. It would be such a recognition of that old indebtedness as in justice and in law ought to preclude the plaintiff from claiming anything in this suit. * * * • You may look at that contract in connection with the chattel mortgage, and say whether there is any of this old indebtedness carried forward into this matter, or any recognition of the indebtedness. I should doubt that the expression that fthis was intended not to include any other indebtedness.’ would be .such a solemn admission as ought to bind the defendant here. It would look as though there was a guarding of that point, but you will look at all the testimony bearing upon the accounts.”
The court did not exclude the statements contained in the contract and mortgage from the consideration of the jury, but, undoubtedly referring to defendant’s request, instructed them that the statements referred to, standing alone, would not, as a matter of law, preclude a recovery. What was said to the jury upon that subject must be considered as a whole, and, when so treated, it is not evident that the jury could have understood that they were to disregard the statements referred to.
The judgment is therefore affirmed.
The other Justices concurred. | [
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Montgomery, J.
Plaintiff sued for negligent injury. He was employed in defendant’s factory, and engaged in running a planer. George E. Neville, one of the officers of the corporation, had charge of defendant’s factory, and employed and discharged men. On the 28th of November, 1890, plaintiff had been interrupted in oiling his machine by the necessity of moving some timber which had been placed so near to his machine as to interfere with his work. He started the machine, and passed some of the timber through. It was discovered that the machine was out of order. The plaintiff threw it out of gear, took the oil-can, and attempted to oil the machine from underneath, leaving his mitten on the surface of the planer. In order to oil one portion of the machine, it became necessary for. the plaintiff to put his hand between the spokes of one of the wheels connected with the gearing, and remove the cap of a box. While his hand was in this position, Mr. Neville turned on the feed motion. Plaintiff’s hand was caught in the gearing, and he sustained the injury complained of. It was plaintiff’s duty to see that the machine was properly oiled and adjusted, when being operated by him.
The parties are not agreed as to the facts. The }ffaintiff testified that, when he started to oil the machine, Mr. Neville came up, and plaintiff passed him, leaving him standing in front of the machine. Mr. Neville, on the contrary, testified that the plaintiff and himself had been engaged in- an effort to discover what was wrong with the machine, and in so doing had started and stopped the machine repeatedly; that he finally discovered the difficulty, which he found was a small knot of wood between the rollers and the crossbar of the bed of the machine. He looked around, and did not see the plaintiff. Saw that the oil-can was not in its place, and supposed that the plaintiff had gone out of the mill to fill the oil-can, or for some other purpose. He took a probe, and drove the knot out, backed up the machine, threw the lever forward, and started the feed motion. It was this starting of the machine that caused the injury.
The case was submitted under instructions which left the jury to decide—
First. Whether the act of Neville was or was not negligent.
Second. Whether the plaintiff, in attempting to oil that portion of the machine concealed from Mr. Neville’s view from the point where he stood, was guilty of negligence contributing to the injury. .
The defendant’s two principal contentions in this Court are—
1. That, as a matter of law, the plaintiff was guilty of contributory negligence in placing himself in the position which he occupied without notifying Neville of his purpose.
2. That Neville was, in what he did, a fellow-servant of plaintiff, and, if guilty of negligence, it was not the master’s negligence.
We are not prepared to hold, as a matter of law, that the plaintiff was guilty of negligence contributing to the injury. The jury, in answer to a special question, found that plaintiff was in charge of the machine at the time of the injury, and had the care of the machine, and the duty to keep it in order. This being the case, if he had no reason to anticipate the starting of the machine by Mr. Neville, it would be going far to hold that he was negligent in failing to anticipate such a possibility.
Was the act of Mr. Neville in turning on the feed motion that of a fellow-servant of plaintiff? The defendant concedes, in effect, that Mr. Neville’s relations to the defendant corporation and to the plaintiff were such as that for some purposes he might in law be regarded as a representative of the master, but that in the performance of the particular act of starting the machine he was acting in the capacity of a fellow-servant; and the contention is that the question of whether the act was that of a master or of a fellow-servant depends for its solution rather upon the nature of the act, than upon the general scope or extent of the superior servant’s authority. The contention, precisely as made, is undoubtedly supported by eminent authority, but we are constrained to hold that the previous holdings of this Court have not so limited the liability of the master. See Slater v. Chapman, 67 Mich. 523; Palmer v. Railroad Co., 93 Id. 363; Ryan v. Bagaley, 50 Id. 179; Harrison v. Railroad Co., 79 Id. 409; Erickson v. Railway Co., 83 Id. 281, 93 Id. 414. The decisions of this Court have extended the rule so that it may be said that when the master delegates to a superintendent full power to manage a business, and employ and discharge servants, without interference, such superior servant, in whatever he does in furtherance of the business and operations he has in charge, stands in place of the master, and the negligence of such superior servant is the negligence of the master. This is apparently upon the ground that the servant, in entering the employment, does not take upon himself the risk of negligence on thé part of one who occupies that relation to the business of the master. In McKinney on Fellow Servants (section 41), it is said:
“ Many authorities of great weight have held that if the master places the entire charge of the business in the hands of an agent, exercising no authority therein, he may be liable for the negligence of suc'h agent to a subordinate employé, and that this rule prevails whether the master be an individual or a corporation;” citing a large number of cases, among which are Ryan v. Bagaley and Slater v. Chapman.
Again, at section 55, in commenting on Ryan v. Bagaley, the learned author says:
“The report of the_ case does not indicate the nature of the act the mining captain was performing, and owing to the negligent performance of which the subordinate servant was injured, but the principle on which the case is based is the generally accepted one, — that a master giving the control of his entire business to an agent is responsible for his negligence.”
It is not necessary to a decision of this case to hold that an agent exercising only occasional acts of authority, while performing duties, in the main, those of a subordinate, is, in the performance of the latter duties, to be regarded as a "representative of the principal; but, in the performance of the particular duty in question, Neville was performing an act of authority which he only had the right to perform by virtue of his authority as superintendent of the mills, and within the' scope of his authority to see' that the machinery was in safe condition. We think, under the former rulings of this Court, he must be held to have been, in the performance of this act, a representative of the master, rather than a fellow-servant.
It is contended by defendant that plaintiffs loss of his fingers was not the result of the injury, but was the result of his own condition, being an unhealthy man. There was testimony in the case tending very strongly to show that the plaintiff was, previous to this time, afflicted with a scrofulous disease; and the inference, perhaps, is justified that such serious consequences would not have followed from the injury, had not this been his condition. The court, in commenting upon this testimony, instructed the jury as follows: ■ . '
“In consequence of there being something wrong about his own constitution, the injury was aggravated, and it amounted to about this: That the permanent injury was partially or quite the result of just that thing, rather than the result of the accident itself, in the machinery. Now, you may decide this question: How much of the injury which he has suffered is the consequence of that, rather than the consequence of the injury itself? There is no kind of question, of course, that the accident or injury there — the hurting of his hand in the machine — did cause him some injury; but whether it was all caused by it, or the greater part of it, or only a small part of it, is another question,' and a question which you will have to decide.”
In another portion of the charge he stated:
“If it be true that his'constitution is in such a condition that a little injury, which is liable to occur to many men at any time, will have these aggravated results, he is. not a man in such a condition and situation as a mail who is sound, and the diminution of his capacity to work may not be as great.”
These instructions were sufficiently favorable to the defendant. The fact that the plaintiff was afflicted with a scrofulous difficulty, which rendered it possible, or even likely, that a slight injury would produce more serious results than if inflicted upon a perfectly healthy person, does not put him beyond the pale of the law, or prevent, a recovery of such actual damages as he has sustained.
The other questions presented, we think, do not require discussion.
The judgment will be affirmed, with costs.
McGrath, O. J., Long and Hooker, JJ., concurred. Grant, J., did not sit. | [
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McGrath, C. J.
Plaintiff was engaged as janitor by defendant in- August, 1878, and continued as such until October, 1888. He sues to recover his salary from the time of his discharge until the 1st of September, 1889, claiming an employment for the year ending with the last-named date. His first employment was under the following resolution:
“On motion, the board proceeded to open bids for janitorship of the Central building for 1878-79, and, the bid of M. Laughlin being the lowest,.namely, $300, and furnish' all ¿materials for doing the work, the contract was awarded to him, provided he furnish satisfactory proof of his ability to manage the steam-heating apparatus in a safe manner.”
At the next meeting of the board it was resolved—
“That the contract with the janitor shall include salary at tjie rate of $300,per year, and that he shall be retained at such salary during such time as he faithfully performs the duties of his position satisfactorily to the board, and no longer.”
On June 16, 1879, “on motion, the present janitor was re-appointed, at á salary of $350, for 12 months. Resolutions were adopted in June, 1880, June, 1881, and June, 1882, re-appointing him “ for the ensuing year at the same salary as last year.” No formal re-appointment was made •in 1883, 1884," or 1885. In July, 1886, and-on June 14, 1887, resolutions were adopted, re-appointing him for another year. On June 21, 1887, the committee on teachers “recommended that the proposition of the- janitor to give his entire time to the district for $500 per annum be accepted,” and, on motion, the report of the committee was unanimously adopted. No resolution re-appointing plaintiff was adopted in 1888.
The election in 1888 resulted in changes in the board, and on October 2, 1888, “Mr. Terry moved that the board proceed to ballot for janitor.” Yeas, 4; nays, 2. The record recites that “Mr. Palmer protested against the election of janitor on the ground that one is already in the employment of the board.” The board then proceeded to vote for a janitor. On “a yea and nay vote, five only voted, three of whom voted for Thomas Harris, and Harris “was declared the choice of the board for janitor for the balance of the year.”
The record clearly discloses a yearly hiring. Respecting the employment for the year commencing September 1, 1888, the facts bring the case within the rule laid down in Tallon v. Mining Co., 55 Mich. 147; Sines v. Superintendents of Poor, 55 Id. 383, 58 Id. 503.
The principal contention is that, the original contract being for an indefinite period, the condition of that contract, viz., that plaintiff should be retained “during such time as he faithfully performs the duties of his position satisfactorily to the board, and no longer,” must be considered as attaching to each re-employment, and under this provision the board might remove him at will. This contention cannot be sustained. The original resolution selected plaintiff by reason of his being the lowest bidder for the work. It was for no fixed period. The subsequent hirings were after trial, and for fixed terms, and it cannot be assumed that the parties understood that' the board, with each re-employment, reserved the right to terminate the contract at will, if such ‘be the effect of the provision.
The court left it to the jury to determine whether this provision continued to form a part of the contracts of re-employment, and exception is taken to the instruction, in that connection, that, if a part of the contract, the board might discharge the plaintiff whenever, in the judgment of the board, plaintiff failed to perform his duties to the board's satisfaction, and that “ in that case the board's judgment was conclusive, and, if exercised in good faith, could not be questioned.” There was no error in this instruction. Defendant .had introduced a mass of testimony tending to show that plaintiff was, at the last election for members of the school board, actively opposed to the election of certain of the successful candidates. Plaintiff then offered testimony clearly tending to show that, at the meeting when Harris was elected to succeed plaintiff, one of said successful candidates was asked if there were any complaints against plaintiff, and replied: “No; he has always done his work all right, but we can get some one else that will do it just as well.” The instruction was proper, under the circumstances. Winship v. Association, 78 Me. 571.
We think it may fairly be inferred from the record that •the secretary of the board had the superintendence of the janitor, and that the permits granted by the secretary for short absences absolved plaintiff from any charge of neglect of duty. The court instructed the jury that the board, in the absence of any express provision in the contract upon that subject, had the undoubted right to discharge plaintiff for neglect of duty. The defendant was allowed a wide •range upon the trial, and we find no prejudicial error in the record.
The judgment is therefore affirmed.
The other Justices concurred. | [
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Butzbr, J.
A car in which plaintiff was riding as guest passenger collided with defendant’s truck, consisting of a tractor and trailer, at the intersection of Fullerton and Birwood avenues, Detroit. Plaintiff, who was injured in the collision, claims that defendant’s driver was negligent in driving into the intersection after the automobile, in which plaintiff was a guest, had arrived there and claimed the right of way. Two of plaintiff’s witnesses previously had signed written statements that contradicted their testimony on the trial. The driver of the car in her written statement said that she “had partially completed — -in fact almost completed the turn when my left fender on the side and just above the wheel was struck against the truck just back of the cab.” When confronted with this written statement, she testified:
‘ ‘ That is not correct. By that statement I meant the truck’s front wheel because that is what happened. It is not true that the trailer had practically passed when I hit it.”
The other witness testified in regard to a written statement, signed by him and contradicting his testimony at the trial;
“I read it carefully before I signed it. I said a minute ago that when the truck was at one intersecting line the Ford was at the other. In a statement I said ‘when the truck’s front end was at the south curb of Fullerton I saw a westbound Ford V-8 sedan on Fullerton just west of Birwood.’ * * * I was telling the truth when I made this statement. ’ ’
Both statements were offered in evidence for the purpose of impeachment.
The judge in his charge to the jury, referred to the written statements offered in evidence and stated that they might be used for impeaching the credibility of the witnesses and also if the witness had made a statement out of court and counsel asked such witness if that statement were true and the witness stated that it was true, then it might be “considered substantive evidence, that is, evidence to prove the fact in the statement.” Defendant claims on appeal that statements made by other persons than plaintiff, but offered merely for impeachment purposes cannot be considered substantive evidence to prove a material fact even though the written statements are admitted to be true on cross-esamination. The judge correctly charged the jury. Had the written statements made prior to the trial merely been identified by the witness or the contents denied, they could be used only for impeachment purposes. Rosenberg v. Mageda, 251 Mich. 696. Notwithstanding the fact that a written statement is offered solely for impeachment purposes, so much thereof as a witness at the time adopts by admission of the truth thereof becomes substantive evidence. See Breeden v. Martens, 21 S. D. 357 (112 N. W. 960).
The judgment is affirmed, without costs in this court, appellee having filed no brief.
Fead, C. J., and North, Wiest, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Forth, J.
Plaintiffs in this summary proceedings seek to recover possession of real estate originally sold on land contract dated April 9, 1930, to Max Koehler and wife, and assigned by Koehler and wife to defendants on May 26, 1933. At the time of the assignment there was a balance owing of $5,285.24, with interest from January 9, 1932. After the purchase of the original vendees’ interest by defendants Lind an agreement was entered into between plaintiffs and defendants, dated June 9,1933, for a reduction of monthly payments from $60 provided in the original contract to $30, same to be effective for a period of at least two years. This agreement also required the payment of unpaid taxes by July 1, 1933. In the early part of 1934 defendants defaulted in their payments on the contract and on November 12, 1934, a new contract was drafted providing for the payment of $5,478 in monthly payments of $30 per month for the first year, $40' per month the second year, and thereafter $45. This contract also required defendants to pay all taxes on the property ; to paint the house on or before August 1, 1935; and to procure insurance payable to or to be assigned to plaintiffs. The contract was left with plaintiffs’ attorney for delivery to defendants after the required insurance had been secured. The monthly payments of $30 were made from November, 1934, to May, 1935. During all this period the contraot remained in the office of the attorney for plaintiffs. Differences arose between the parties over insurance and other terms of the contract, and on June 10, 1935, plaintiff George S. Francisco went to his attorney’s office, struck out the signatures of plaintiffs and instructed his attorney to send a copy of the contract, with the signatures stricken, to defendants Lind. The copy of this contract was mailed to defendants together with a letter by .plaintiffs ’ counsel advising that his clients would not recognize the contract, but they would be willing to go ahead under the old contract. There was some further correspondence and a meeting in the office of defendants’ counsel at which it seems to have been agreed that the last executed contract should continue and defendant should pay $91.34 to bring the contract up to date. Subsequently there was some disagreement as to whether the above amount included the cost of additional insurance; but finally, and on July 29,1935, Mr. Francisco by letter agreed to accept defendants’ offer as made. Notwithstanding this, the payment was not made. Instead Lind demanded the drafting of a new contract and that he be given a discount on the purchase price. Under this record there is no question but that the vendors were continually pressing for payment. At no time did they acquiesce in deferred payments in such a manner as would cause defendants to believe plaintiffs were not expecting and demanding prompt payments of the amounts due them under contract.'
Defendants were served with notice of intention to forfeit contract on March 2, 1936, and with notice of forfeiture on March 12, 1936. May 1, 1936, complaint to recover possession was filed. Proceedings were had before a circuit court commissioner, as a result of which a judgment for restitution was rendered. Defendants appealed to the circuit court and the judgment was affirmed. They have now appealed to this court.
■ Appellants seek to take the position that there was a repudiation of this contract by the act of one of the vendors striking from the vendees’ copy of the contract the signatures of the vendors; and that thereafter, the contract being thus abrogated, there was no .foundation for summary proceedings. Clearly this position is not tenable. Defendants are in possession of the property described in the contract and asserting a right to maintain such possession. This right by appellants can be asserted only on the theory that the contract has not been repudiated. Appellants cannot take the inconsistent positions which would arise from the contention that they are still rightfully in possession of the property but there is no contract in existence under which they hold. They make no claim of any other justification for their position except that growing out. of their rights as vendees under the contract. Further it may be noted that the vendors did not and could not accomplish legal repudiation of the contract by merely striking their signatures from the vendees ’ copy of the contract to which one of the vendors happened to have access.
Appellants urge that the notice of forfeiture with which they were served is ineffective because it was not preceded by the service of a notice of intention to forfeit which specifically set forth the reason for the contemplated forfeiture. Under the facts here presented this contention cannot be sustained. This cáse is not one wherein the vendors without complaint accepted numerous belated payments and by so doing lulled the vendees into a sense of security. Instead, the contract here in suit was made between these parties on November 12, 1934, and the monthly payments of $30 were regularly made to May, 1935. Thereafter no payments were made on the contract by the vendees. While there was some subsequent controversy between these parties as to insurance which the vendors claim the vendees should pay, there was no irregularity in making belated payments on the contract. Instead no payments were made at all after May, 1935. Under such circumstances there could be no question that the vendees knew of their default in this particular. The vendors repeatedly pressed for payment. Nothing had happened which in any way induced the vendees to feel secure in the belief that they were justified in making belated payments. Under such circumstances the vendors had a right to give notice of forfeiture for the nonpayment of the contract installments without any preceding notice of an intention so to forfeit the contract. Drake v. Lippman, 234 Mich. 80; August v. Collins, 240 Mich. 23. See, also, Smilay v. Marr, 248 Mich. 139; Adams v. Madora Land Co., 248 Mich. 584. Without quoting in full the notice of forfeiture served upon appellants, it is sufficient to state that it plainly advised the vendees (appellants) that their contract was “in default by reason of the nonpayment of the instalments of principal and interest due thereunder.” In substantially the usual form, the contract provided that after November 12, 1934, the appellants should have possession of the contract premises:
“While they shall not be in default on their part, in keeping and fulfilling the terms of this contract, taking and holding such possession hereunder. * * *
“It is also agreed, by and between the parties hereto that if default shall be made by said parties of the second part in any of the payments of principal or interest, at the time, or any of the times hereinbefore specified, # * * in any such case the said parties of the first part shall have the right immediately after such failure to declare this contract void and at an end, and to retain all payments which shall then have been made hereon, * * * and may take immediate possession of said premises and remove said parties of the second part therefrom.”
The notice of forfeiture stated the default and the reason for forfeiture. Under the circumstances of this case it was sufficient without a preliminary notice of intention to forfeit. It placed appellees in position to institute summary proceedings.
Appellants question the admissibility of testimony concerning certain acts and negotiations of the parties incident to their attempt to adjust differences arising out of this contract. The questions thus raised have no meritorious bearing upon the outcome of this appeal.
Appellees’ right to the judgment obtained before the commissioner and affirmed in the circuit court conclusively appears. The judgment is affirmed, with costs to appellees.
Fead, C. J., and Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Wiest, J.
I cannot lend judicial sanction to the opinion of Mr. Chief Justice Fead.
That opinion overrules Cowdrey v. Cowdrey, 211 Mich. 305; Hatfield v. Hatfield, 213 Mich. 368; Long v. Long, 217 Mich. 211; VanderLaan v. VanderLaan, 228 Mich. 52; LeBlanc v. LeBlanc, 228 Mich. 74; Legatski v. Legatski, 230 Mich. 186; Badzinski v. Badzinski, 234 Mich. 144; DeViney v. DeViney, 237 Mich 271; Vardon v. Vardon, 266 Mich. 341, and many other opinions of this court to the effect that divorces are not a matter of course in this State and, when both spouses are guilty, neither will be whitewashed ; nullifies the letter and kills the spirit óf the statute, 3 Comp. Laws 1929, § 12732; and destroys the clean hand principle of equity.
The scales of equity cannot be adjusted to measure degrees of culpability between erring spouses.
Chief Justice Fead has aptly placed the man and I find the woman no whit better. The evidence is convincing that she was infatuated with an automobile salesman who lived across the line in Indiana. She visited him several times and did not return until late at night or early in the morning and, when he was sick, she visited his home until requested by the salesman’s son not to come there any more. She accompanied the salesman to Detroit and Pontiac, ostensibly, to look at cars or to g’et cars and, on one occasion, remained away all night claiming she had left the salesman at Ypsilanti and she had spent the night at the Irish Hills. She admits that she was in a lonely barn lane entrance late at night with the salesman, and her admission was verified by two disinterested witnesses who said that she was sitting in her own car, under the wheel, with the salesman sitting in the car beside her and with his car parked a little farther down the lane toward the barn. This was claimed to be another occasion when he was trying to sell her an automobile. The salesman denied that occurrence.
She was evidently a woman of morbid views. She was 20 years younger than defendant, had been twice married before and defendant brought up and educated three of her children.
The evidence shows that both parties have been guilty of extreme cruelty.
I apply, as this court has always done, the following provision of the statute above mentioned:
“And no divorce shall be decreed in any case where the party complaining shall be guilty of the same crime or misconduct charged against the respondent.”
The decree is affirmed. No costs.
North, Butzel, and Potter, JJ., concurred with Wiest, J.
Fead, C. J.
Bill and cross-bill for divorce were dismissed. The court held that cause for divorce had been made out against defendant but denied plaintiff relief on the ground that she was not in court with clean hands. Plaintiff appeals.
The parties were married in 1920. Defendant is a physician, 64 years old, had been married before, had three children, two of whom were mature at the time of the marriage to plaintiff. Plaintiff is 44 years old, had been married twice before, had four children who were supported and educated by defendant. There were no children of this marriage. The parties lived at Montgomery, had a comfortable home and some of the luxuries of life. They got along together very well until about 1932, when plaintiff became friendly with an automobile salesman and defendant with a woman.
The misconduct of defendant is amply established by the testimony and no good would be served by setting up the details.
Plaintiff was indiscreet, but there was no proof of serious misconduct with the salesman. Some of the associations of which defendant now complains had his approval at the time. The families were friendly. Defendant knew and sanctioned trips taken by plain tiff and the salesman. It also appeared that plaintiff sometimes interfered in her husband’s practice, as she should not have done. But, all in all, most of the complaints now made against her are by way of defense and were not of a character as did or would render the continuance of the marital relations intolerable to defendant. It was defendant’s conduct which broke up the home.
We think plaintiff is entitled to decree of divorce.
The parties have a home and adjoining lot with defendant’s office on it, at Montgomery, worth $3,700, title to which is held by the entireties; 11 cemetery lots at Detroit, and 5 lots at Ojibway, of uncertain but of little, if any, value; household furniture, office equipment, and a car. Defendant had book accounts ranging from 1896 to date, book value $20,000, real value problematical, estimated by defendant at $500 or less; notes for $8,000, also of uncertain value; and owes $1,100 on notes, signed also by his wife; his practice runs from $6,000 to $8,000 per year, but with no showing of deductible expense.
Plaintiff recognizes that it would be a serious disruption of defendant’s practice if he did not continue to own'the home and office. Plaintiff should have half the worth of the home, $1,850; the cemetery and Ojibway lots should be divided as nearly equally as possible; the household furniture should be divided as nearly equally as may be. In addition, plaintiff should have as permanent alimony $500 in cash, (payable at the rate of $50 per month) and, as costs, expense and attorney’s fees, the $485 allowed by circuit court, with $300 in addition thereto.. Plaintiff should have lien upon the home to secure the lump sum payments awarded. • > •
•The record does not permit us to work out the details of the decree. Defendant should have a reason able time in which to make the payments provided. The division of the lots and furniture may be most justly done after discussion by the parties. We feel that the matter can be best worked out by remanding to the circuit court for entry of decree in accordance with this opinion, with jurisdiction to fix details of division and payment, and to retain jurisdiction to enforce the decree. It should be so ordered.
Bushnell, Sharpe, and Chandler, JJ., concurred with Fead, C. j. | [
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Long, J.
This suit was brought upon two policies, dated, respectively, August 4 and August 18, 1890, — both Michigan standard policies,— one covering $1,000 “on lumber (lath and shingles, if any) owned by the assured, or held in trust or on commission, or sold but not delivered, piled on their mill docks Nos. 4 and 5, Muskegon, Mich.,55 and the other covering $1,000 “on lumber (lath and shingles, if any) owned by them, or held in trust or on commission, or sold but not delivered, while ón their mill docks Nos. 3, 4, and 5, Muskegon, Mich.55 Both policies provide, in the written portions, as follows:
“ Warranted by the assured that a continuous clear space of 150 feet shall hereafter be maintained between the property hereby insured and any wood-working or manufacturing establishment, and that said space shall not be used for handling or piling of lumber thereon for temporary purposes, — tramways, upon which lumber is not piled, alone being excepted, — but this shall not be construed to pro Mbit loading or unloading within, or the transportation of lumber or timber products across, such clear space; it being specially understood and agreed by the assured that any violation of this warranty shall render this policy null and void.”
The policies were originally written covering identically the same lumber upon these docks for a term of three months, at a premium of $20 each, and without any space clause. Upon receipt of the agent’s report, and several days after the policies were issued, the general agents of the company at Erie, Penn., telegraphed their agent at Muskegon to cancel the two policies just written on the Michigan Shingle Company’s docks. Upon receiving the telegram, he attached the 150 feet clear-space clause to the policies, and telegraphed the general agents that the policies had been changed to 150 feet clear space. Within a few days after these telegrams were sent, the agent at Muskegon received a letter from the general agents, as follows:
“We have your telegram of yesterday^ stating that you had changed space clause in policies issued to the Michigan Shingle Company 150 feet. Now, if you can extend the term of the insurance for one year, the matter will be satisfactory. You are probably aware that we are not in the habit of writing short policies on lumber risks. Unless we can be favored with a yearly contract, which, of course, can be canceled any time the assured wishes, we do not care to retain the line.”
After the receipt of this letter the general agents were advised that the clear-space clause had liben added, and the term extended to one year, the premiums being changed from $20 for three months to $27.50 for one year.
A fire occurred on September 9, 1890. It started in the mill. A portion of the shingles on docks 1 and 2 was burned. The lumber on docks 3, 4, and 5 was totally destroyed. On the trial it was contended by the defendant that the clear space was not kept and maintained by plaintiff as provided by the terms of the policies.
The situation of the docks, and clear space between them and the mill, are substantially set out in Michigan Shingle Co. v. Insurance Co., 94 Mich. 389. The loss sought to be recovered for here occurred as stated in that case. It was the same fire. In that case is set out the situation of the Hovey & McCracken mill, and its piles of lumber, and the facts need not be here repeated. The cases are substantially alike in all particulars. The policy in that case contained the same clear-space clause; and in the present case the.record shows that the agent of the company at Muskegon knew, as in that case, the situation of the mills and lumber, and the manner in which plaintiff conducted its business. The fact that the general agents of the company insisted upon the clear-space clause being inserted in the policies does not change the rule. From the entire record, it clearly appears that it was understood between the parties that the use of the docks was to continue as in the past, and that the then situation of the lumber and shingles was regarded by all the parties as equivalent to the clear space required by the policies.
Judgment affirmed.
McGrath, C. J., concurred with Long, J.
Montgomery, J.
I am not able to distinguish this case from Michigan Shingle Co. v. Insurance Co., 94 Mich. 389, and therefore concur with Mr. Justice Long. | [
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Per Curiam.
The information in this case was filed to test the title of the respondent to the office of city counselor and head of the legal department of the city of Detroit. The relator interposed a demurrer to the respondent’s plea, and the case now stands at issue upon the joinder in the demurrer.
The merits of this controversy were disppsed of in Speed v. Common Council, 97 Mich. 198. A full statement of all the facts and claims of the parties will there be found. Any further statement here is unnecessary. • The relator was duly appointed, qualified, and inducted into the office. There was no authority for the appointment of the respondent, and he unlawfully intruded himself into the office.
Judgment of ouster must be entered for the relator, with costs. | [
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Montgomery, J.
This suit is instituted for the purpose of having the complainant’s title, derived through mesne conveyances from the United States, declared to be superior in equity to that of the defendant, derived through mesne conveyances from the State of Michigan. Both parties, of course, concede that the original title was in the government of the United States, but it is contended on the part of the defendant that the title had passed from the federal government to the State prior to the attempted conveyance by the United States to the complainant’s grantors.
On the 28th of September, 1850, Congress passed an act entitled “ An act to enable the state of Arkansas and other states to reclaim the swamp lands within their limits.”
The first section of the act was as follows:
“ To enable the state of Arkansas to construct the necessary levees and drains to reclaim the swamp and overflowed lands therein, the whole of those swamp and overflowed «lands made unfit thereby for cultivation, which shall remain unsold at the passage of this act, shall be. and the same are hereby granted to said state.”
Section 2 of the act made it the duty of the Secretary of the Interior, as soon as practicable after the passage of the act, to make out an accurate list and plats of lands described as swamp and overflowed lands, and to transmit the same to the governor of the state, and at the request of the governor* to cause a patent to issue to the state therefor, and provided that on that patent a fee-simple of said lands should vest in said state of Arkansas, subject to the disposal of the legislature thereof. Section 3 proyided that, in making out the list and plats of the lands, all legal subdivisions, the greater part of which was wet and unfit for cultivation, should be included in the list. Section 4 extended the provisions of the act to each of the other states of the Union in which such swamp and overflowed lands, known and designated as aforesaid, might be situated.
After the passage of the act, and on the 6th of August, 1853, Bush and Bailey, complainant’s grantors, located at the government land office the land in question, and obtained a patent therefor on the 1st of November, 1856, which patent was not, however, recorded until after the conveyance to Cook by the State hereinafter referred to. On the 29th of July, 1858, Addison P. Cook, defendant’s grantor, bought the land in question from the State of Michigan, and received a patent therefor. The lands were certified to the State, in pursuance of section 2 of the act of 1850, on the 27th of October, 1853, and were subsequently, and prior to the conveyance to' Cook, patented to the State. It also appears that the lands unquestionably answered to the terms of the grant, as appears both by the testimony of , their actual state at the date of the grant and also bjr the certification aforesaid. The precise question involved is whether, after the passage of the act of 1850, and before certification to the State, the title to the lands which it should thereafter be ascertained answered to the terms of the act remained in the government of the United States, so that a conveyance from the government would defeat the title of the State conveyed by the act of 1850.
In the case of Busch v. Donohue, 31 Mich. 481, it was held that the title vested in all lands answering to the-description in section 1 of the act of 1850’ at least as early as the certification. This was as far as it was necessary to go in that ease. There was language employed which gives some, color to the claim that the title did not vest until the certification; but this was not necessary to the determination of the case, nor was it a question really involved,' for under the facts of that case the certification preceded the grant to the individual by the federal government. The most that can be said, therefore, is that the case is not an authority sustaining the defendant's contention.
The question . has, however, been before, the Supreme Court of the United States frequently, and, as the question is one involving the construction of an act of Congress, its decisions are authoritative. The latest decision of that court which has come under our notice is Wright v. Roseberry, 121 U. S. 488. Mr. Justice Field' in that case reviews the decisions, as well as the rulings of the Department of the Interior, in a very able and exhaustive opinion, and states the result of the decisions to be that the grant of 1850 was one in prmsenti, passing the title to the lands as of its date, but requiring identification of the lands to render the title perfect; that the action of the secretary in identifying them is conclusive as against collateral attack, as the judgment of a special tribunal to which the determination of the matter was intrusted; but, when that officer has neglected or failed to make the identification, it is competent for the grantees of the state, to prevent their rights from being defeated, to identify the lands in any other appropriate mode which will effect that, object.
In Railroad Co. v. Smith, 9 Wall. 95, it was held that the act of 1850 was a grant in prmenti, and that, in case of a failure by the Secretary of the Interior to certify the lists, the state might, notwithstanding this neglect, grant a title, and that in such case parol evidence could be offered to show the character of the lands.
In French v. Fyan, 93 U. S. 169, it was said:
“ This court has decided more than once that the swampland act was a grant in prcesenti, by which the title to those lands passed at once to the state in which they lay. * * * * The patent, therefore, which is the evidence that the lands contained in it had been identified as swamp lands under that act, relates back and gives certainty to the title of the date of the grant.”
We think it unnecessary to cite at length the numerous cases in which this question has arisen, as they are collated in the opinion of Mr. Justice Field in Wright v. Roseberry. The result of the cases is sufficiently apparent from the summary above quoted. It follows that the attempted grant by the federal government, after having parted with its title, must be treated as a nullity, unless the State, by its manner of dealing with the lands covered by the grant, has authorized the federal government to make conveyance which should be held to bar the title of the State. This is complainant's contention, and reliance is placed on the act of the Legislature of this State of February 14, 1853, the first section of which provides as follows:
‘■‘That the State Treasurer be, and he is hereby, authorized to receive from the general government any moneys that may have been received, or that may hereafter be received, for any of the swamp lands donated to this State, and that the Commissioner of the State Land Office be authorized to take an assignment of all bounty land warrants received for any swamp lands sold in this State since the act of Congress approved September 28, 1850, and to release the interest of the State in any lands sold or entered with said warrants to purchasers or their assigns.”
We think it is clear that the statute was not intended to authorize the federal government to continue to receive land warrants for lands which, under the act of Congress of 1850, had vested in the State. On the contrary, the assignment of only such land warrants as had theretofore been received was provided for. It follows that, the title having vested in the State on the 28th of September,' 1850, the attempted grant by the federal government to the complainant’s grantors must be treated as a nullity. The cases of Dale v. Turner, 34 Mich. 405; Ives v. Ely, 57 Id. 569; Huggett v. Case, 61 Id. 480, — are clearly distinguishable, as in each of these cases, the attempted grant by the federal government was prior to the act of the Legislature of February 14, 1853, and was confirmed by that act.
Both parties to the suit asked that the value of the improvements which the complainant is entitled to receive compensation for he determined in this proceeding. We have examined the record, and reach the conclusion that the value of the land without improvements would be $1,200, and that the increased value of the premises by reason of the improvements is $800. This estimate includes the expense of drainage, which was incurred by way of payment of tax imposed. It is contended that this expense ought not to be allowed, for the reason that the State owed the duty of reclaiming the land under the act of Congress of 1850, which vested title in the State. This is not a proceeding by the State. It is undoubtedly true that the State did not reclaim the land, and it is difficult to see just what remedy would be applied to compel it to do so. This béing the situation, it. cannot be doubted that if the occupant had in good faith joined with his neighbors, and made the improvement by drainage, he would be entitled to the amount of such expenditure. Nor do we think the case different because the neighborhood acted through the drain commissioner, and because the occupant, instead of going through the form of contesting against the tax and making the expenditure himself, chose to recognize tbe proceedings and pay the tax. The land has been benefited by the drain, and the occupant has borne the burden. Equity requires that he should be compensated. It is probably true, as contended by the complainant, that the expense of making the improvement somewhat exceeded the allowance here made; but the statute (How. Stat. § 7836) does not contemplate that the expenditure shall be refunded to the occupant, but only that he shall be allowed such a sum - as compensation for buildings and improvements as shall equal the extent that such buildings and improvements have increased the present value of the premises., Account should also be taken in this proceeding of the fact that the occupant has had the use of the premises up to the time of the commencement of this suit.
The defendant will be entitled to elect to abandon the premises at- the value of $1,200, or to compensate the complainant for the increased value of the land by reason of the improvements in the sum of $800. The defendant will recover costs of both courts.
Hooker, C. J., McGrath and Grant, JJ., concurred. IjONG, J., did not sit.
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Btjtzel, J.
Plaintiff, alleging nonsupport, filed a bill for separate maintenance and support against defendant, who in turn filed a cross-bill for absolute divorce from plaintiff on the ground of cruelty. The parties were married January 14,1913, each of them having been previously married and divorced. They had no issue from the present marriage. Defendant had children by a former marriage. At the time of the hearing, plaintiff, the wife, was 52 years of age and defendant 82.
Plaintiff had no property of her own at the time of the marriage, but defendant owned several parcels of realty in Kent, Muskegon and Newaygo counties. Defendant deeded 80 acres in Alpine township, Kent county, to his son who agreed to pay defendant $300 a year as long as defendant lived. Sixty acres in Newaygo county were conveyed to defendant’s grandson, plaintiff having joined in both of the above deeds. The parties hereto still own resort property on Wolf lake, near Muskegon. At the time it was acquired by defendant through tax title, it was improved with a small three-room cottage with no foundation and also a four-room cottage, similarly constructed. Considerable improvements have since been made on the property and at the time of the hearing there were nine renting cottages, besides one occupied by the parties as their home, also a combination store and bath-house, a garage, barn and ice-house. The property requires considerable repair and lacks modern conveniences. In 1921, defendant had the title to the property fronting on Wolf Lake transferred to the joint names of himself and his wife as tenants by the entirety. Defendant also acquired property at Green Lake and the parties erected thereon a pavilion, poolroom, bath-house and cottages for resort purposes. The main income came from these resort properties, although defendant is also a breeder of hunting dogs and enjoys a small income from bank stock he owns.
For many years prior to 1934, the parties went south each winter. During the latter years, there has been much wrangling between them, neither of them being in good health. Defendant has high blood pressure, a bad heart condition and is suffering from physical debility accompanying old age. Plaintiff has had two operations and is none too well herself.
Two years prior to the present suit defendant filed a suit for absolute divorce against plaintiff, but before it came to trial, it was discontinued and the parties lived together again. Many of the charges made in the present case arose prior to the condonation. Plaintiff charged defendant with penuriousness and also an absolute failure to prop erly support her with the barest necessities. As owner of some property in the city of Muskegon inherited from her mother she receives $38 a month, but she has neglected to pay taxes until there is an accumulation of over $2,000 in back taxes. Defendant in his cross-bill claims plaintiff repeatedly swore at him, struck him and also left him stranded down south when, after a quarrel, she took all the money that she could get hold of, seized the automobile, and drove back to Michigan. She claims that defendant secreted money at all times and refused to furnish her with either food or support. It is admitted that plaintiff worked hard in maintaining the resort property, both in looking after the stores and in cleaning up the places. She also did the washing, cooking and cleaning for the house they lived in.
Neither party is free from blame and while it might be better for the parties to make proper division for the support of each of them during the balance of their lifetimes and a property division in the event of death, nevertheless it is not the type of case in which the court should interfere when both parties are to blame. The trial judge who heard the case did not believe the charges of either of the parties so serious as to warrant granting a divorce or separation. He dismissed both bills. We believe he reached the correct result.
The decree is affirmed, without costs, each party having appealed.
Fead, C. J., and North, Wiest, Bitshnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Grant, J.
The relators, on July 13, 1892, filed a bill of complaint in the circuit court for the county of Allegan, in chancery, to set aside a deed made by one Franklin Peck, deceased, to Sjoujke Sprick, in trusi for Franklin Peck Sprick, an infant, three years of age, and son of Sjoujke, making both defendants. Subpoena was duly issued, and returned July 25, 1892, personally served upon Sjoujke and her son. August 4, 1892, one S. Wesselius entered his appearance as solicitor for the defendants, and demanded a copy of the bill.
December 20, 1892, complainants filed a petition for the appointment of a guardian ad litem for said infant, no application haying been made by or for said infant to have such guardian appointed. On -the same day, an order was entered appointing one John D. Noah as said guardian, unless the infant should, within 10 days after service of this order, procure the appointment of a guardian. Certified copies of this order were duly served personally upon both defendants, and also upon "Wesselius, and proof of service filed. No one appeared to ask the appointment of a guardian, and on February 17, 1893, the appointment of Noah was made absolute. Defendant Sjoujke filed no pleading, and an order pro confesso as to her was duly entered. Noah did not appear, and, on May 24, notified the register in chancery of his refusal to act.
June 15, complainants filed another petition, asking for the appointment of a’ guardian ad litem, and an order nisi was entered, appointing Charles L. Barrett, register of said court, such guardian. Certified copies of this order were also served upon the two defendants and Wesselius. July 20, no one appearing for the infant to ask for a guardian, the order appointing Barrett was made absolute. Certified copies of this order were also served upon defendants and Wesselius.
June 24, 1893, Earle & Hyde filed and served notice of their appearance as solicitors for Barrett, guardian ad litem.. August 1, Earle & Hyde entered a motion to set aside the appointment of Barrett, and noticed said motion for hearing October 2, the first day of the next term of court, although said court was then in session, and continued in session until late in September. August 7, complainants’ solicitor served notice on Earle & Hyde that said court would be in session on the first day of September, and that said motion would then be called up for hearing. Earle & Hyde paid no attention to this notice, for the reason that the then circuit judge was disqualified from hearing the case, and they had no notice that a qualified judge would preside over the court at that time. September 1., the motion was heard and overruled. September 2, Earle & Hyde entered a motion to set aside the order of September 1, giving notice that it would be brought on for October 2. September 28, upon petition of Earle & Hyde, the cause was removed for hearing to the Kent circuit.
When Earle & Hyde appeared, and demanded a copy of the bill, the appointment of Barrett had not become absolute. After it became absolute, complainants^ solicitor notified them that they had prematurely appeared, returned the notice of appearance, and requested them to redate and return the same, and he would at once serve a copy of the bill. This they did not do.
September 8, Barrett entered his appearance, and demanded a copy of the bill. November 13, Barrett filed an answer, but without consultation with Earle & Hyde, and the name of no solicitor is indorsed upon it. Eeplication was filed, and complainants gave notice that proofs would' he taken in open court, and the case was placed on the calendar for the December term of the Kent circuit. November 22, Earle & Hyde entered a motion to strike from the files the answer of the infant by his guardian ad litem and the replication, and for the removal of Barrett as guardian. December 11, the motion was granted, upon the ground that the appointment of Barrett was irregular and void, and not in accordance with sections 8132 and 8133, How. Stat. Complainants made a motion to set aside this order, which the court refused, and the writ of mandamus is invoked to compel the circuit judge to set it aside. October 3, Barrett sent to Earle & Hyde the copy of the bill of complaint which had been served upon him.
The sections of the statute above referred to are as follows:
“Section 8132., If such, infant defendant neglect, for twenty days after the return-day of the process or service of the declaration by which the suit was commenced, to procure the appointment of a guardian to defend the suit, the plaintiff may obtain an order from any judge or officer of the court, mentioned in the preceding section, requiring such infant to procure the appointment of a guardian within ten days after the service of such order.
“Sec. 8133. If a guardian be not appointed within the time specified in such order, the judge or officer granting the same shall appoint some discreet person to be guardian for such infant in the defense of- such suit.”
The proceedings for the appointment of a guardian ad litem were, in our- opinion, in compliance with the statute and the rules and practice of the court. It does not appear that the infant defendant had a general guardian. The subpoena was served on his mother, who was his trustee. The order was in the form laid down in the practice books. Jenn. Ch. Pr. 742; Puter. Mich. Ch. 688; 1 Barb. Ch. Pr. 84.
It is also claimed, on the part of the defendants in the chancery suit, that Mr. Barrett is an unfit person to act as guardian, and that he is, in reality, acting in the interests of the complainants. We find nothing in the answer or in his conduct to justify such an imputation. We find nothing to indicate any attempt to admit away the infant's rights. This he could not do, and if, upon the hearing or upon a proper showing, it should appear that any admission had been made against his interests, the .court would at once grant an amendment to correct it. The severe language of the Court in Damouth v. Klock, 29 Mich. 289, has no application here In that case the interests of the infant defendant were identical with those of the complainants, and adverse to those of the defendant McQueen, who was appointed guardian ad litem.
The pleadings are in ■ condition for a hearing, and are ample to protect all the parties in interest. The solicitors for the infant defendant might have answered when they received a copy of the bill, and the fact that it was not certified to be a correet copy does not, we think, furnish a sufficient excuse for the neglect to do so. Had this been done, all difficulty would have been avoided, and the case brought to a speedy hearing, to which litigants are entitled.
The writ .must issue as prayed.
The other Justices concurred. | [
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Grant, J.
October- 2, 1890, plaintiff and defendant entered into a contract by which defendant agreed to furnish the* chairs to seat plaintiff's opera house for $1,500. The price agreed upon was to be paid by a bankable note, due in 90 days from completion of contract. _ It was provided that if defendant, through negligence or error, made and shipped any chair not in conformity with the plans and specifications, plaintiff “might retain in settlement, from the amount agreed to be paid, double the cost of any chairs so wrongly made or mechanically constructed, until such mistake should be made good;'' but no such mistake or error should, however, affect or delay settlement further than was stipulated as above stated. The title was to remain in defendant until the purchase price was paid. The chairs were set up and ready for use December 18, 1890, and were in plaintiff’s possession and use till this suit was instituted. Defendant claimed that it had furnished the chairs according to the terms of the contract. Plaintiff claimed that it had not, and refused to settle as provided ' in the contract, or to give his note, or to pay any part of the purchase price. He pointed out certain defects, which defendant claims it remedied. He declined t.o point out any other defects, claiming that he was not familiar with the proper construction of such chairs, and should rely upon the judgment of his architect. October 26, 1891, defendant, through its attorneys, wrote a letter to plaintiff asking him to point out specifically the defects in the chairs, so that defendant might remedy them if it chose to do so, and stating that it would remedy any defects due to any .neglect on its part in furnishing or putting the chairs in. To this letter plaintiff made no reply. Soon after, defendant threatened to take the chairs back, whereupon plaintiff filed a bill in equity, and obtained an injunction restraining defendant from taking the chairs or bringing an action of replevin. This injunction was speedily dissolved. Defendant again demanded the chairs, and plaintiff unlocked the doors of his opera house, and put defendant in possession thereof, knowing that it would proceed immediately to remove the chairs. The removal was at once commenced. In 15 or 20 minutes afterwards the sheriff appeared with a writ of replevin issued at the instance of the plaintiff, and replevied. them. Plaintiff’s testimony upon this point is as follows:
££I recollect the time these parties came here, on the date this writ of replevin was issued. Judge Cahill and Mr. Perigrine came together, and met me in front of the opera house between 8 and 9 o’clock in the morning. Judge Cahill said he had come to demand the chairs. I said to him that I supposed that he had had a talk with you [Montgomery], but' that I would like to see you a minute before making any reply. I had learned from my attorney that he had had a conversation with Judge Cahill before that time in relation to yielding possession of these chairs. Judge Cahill said he would not wait, and I simply said, ‘Well, you probably know your business, and I want to say to you, as I have always said, that the doors shall be opened;’ and I turned and stepped into the store, .and told the janitor to open up the front doors of the opera house, and the parties went in.. I did not go up with them, but went up 20 or 30 minutes afterwards. They were taking the chairs down. I think Mr. Perigrine was in charge. I said, ‘You claim you are in possession of the chairs?’ and he said he did. He said they were there to take the chairs out. I said to him there was no need of tearing them loose from the floor; I intended to replevy them. I should not only replevy the chairs, but, if he did not quit tearing them loose and ' injuring the floor, I should have him arrested for trespass. I went to see Judge Cahill about it, and said: ‘I suppose, under the arrangement with Mr. Montgomery, you know we are going to replevy these chairs. Why not leave them where they are?’”
The agent for the defendant testified that when Mr. Cahill told plaintiff that they had come to take the chairs, and asked if he would let them in, plaintiff replied, “You can go in,” called Mr. Sanborn, who had the keys, and said, “You get the keys and let them in,” which Mr. Sanborn did. After this testimony was given, the following colloquy took place between the counsel for the respective parties:
“By Mr. Montgomery: I would like to know if defendant denies possession of the property at the time the replevin writ was served.
“By Mr. Cahill: No, we claim to have been in possession, and to have been put in possession by the plaintiff, and we claim that under no circumstances could the plaintiff so put us in possession for the purpose of laying a foundation for the replevin suit; that, after having put us in possession, it Avas necessary for the plaintiff to make a demand of us, in any event, before this suit could be maintained.'
“Mr. Montgomery: I think both propositions are true. We had no right to pnt them in possession of this property to lay a foundation to bring suit, and in such a case a demand would be necessary; but we had a right to leave the property, and say to them, ‘ If you take it, you do so at your peril.’ We claim a wrongful taking, and claim a demand.”
At the close of the testimony the record contains the following:
“ The following statement was made by defendant’s counsel, by way of admission:
“ Mr. Cahill: In the opera house one night, Mr. Montgomery said to me, in the presence of Mr. Baird, ‘Now, if you ever want these chairs, you don’t need to replevy them; you can come to me, and I will open the doors for you.
“ Mr. Montgomery: Is that all that was said that evening?
“ Mr. Cahill: That is all that I recollect.
“Mr. Montgomery: Didn’t I say that we claimed the right to them, and yon could take them at your peril?
“ Mr. Cahill: Afterwards, in my office, Mr. Montgomery stated to me, ‘ We will never let you have these chairs; we don’t intend to.’ I replied, ‘I understood you to say, if we wanted these chairs, we could have them without replevying them.’ He says, ‘ We will open the opera house for you, but we propose, in case you take them out, to replevy them.’ I said, ‘ I don’t think you can do that.’ He said he thought he could, and there it dropped.”
The court left all the issues in the case to the jury, who rendered a verdict for the plaintiff
The possession of the defendant in a replevin suit must be tortious at the time of the issuance of the writ, in order to maintain the action. How can possession be tortious when the defendant is in possession by permission of the plaintiff? Clearly, the defendant company was entitled to retake this property if it had performed its contract, for the title to the property remained in it until paid for, and demand alone was necessary to perfect its right to possession and to maintain replevin. Claiming that it had so performed it, it made demand for the purpose of replevying the property. Instead of refusing possession, plaintiff unlocked the doors of his opera house, and put defendant in possession of the property. His counsel conceded upon the argument that the effect of plaintiff’s conduct was to deprive defendant of a right of action by replevin. Conclusively, therefore, its possession was not, and could not be, tortious. Possession must be either rightful or wrongful. It cannot be both, nor can it be either, under the same facts, at the will of either party. The possessor of personal property cannot, upon demand, invite the demander into his house or other building, point out the property to him, and say: “There it is. You can take it, but if you do you take it at your peril. I shall replevy it back.” The demander in such case may lawfully take possession of the property. Nor can the former possessor put him in the wrong by immediately demanding possession back. The law does not permit such a game of shuttlecock. The conversation between the attorneys for the respective parties in the opera house does not aid the plaintiff. No agreement or arrangement was thereby entered into between them. The conversation was entirely ignored by the defendant, for it proceeded to make a demand, in order to take the property by due process of law. Defendant claimed and demanded possession under the terms of its contract. Plaintiff perfectly understood this, and surrendered possession. He thereby abandoned all forms of remedy against defendant except the right to sue it for breach of contract, in which suit he would recover such damages as he could show he had sustained, provided that he proved the breach.
The contract, with the plans and specifications, which were made a part of it, covered the full description and character of the chairs to be furnished. All prior negotiations and' representations, therefore, became merged in it. Evidence of a parol warranty and a breach, of it was incompetent. The rights of the parties depend upon the written contract, and must be controlled by its terms.
The contract did not give plaintiff the right to withhold settlement and the execution of his note for a violation of any warranty, but only gave him the right to deduct twice the price of any chair which was wrongly made, or not mechanically constructed in conformity with the plans and specifications. The result of the' plaintiff's contention and the charge of the court would beUhe destruction of the defendant's security, provided the plaintiff could succeed in convincing a jury that the defendant had in any particular failed to make the chairs in accordance with the contract. We do not think this a fair construction to be placed upon such contracts. The vendor retained title in itself for the purpose of securing the payment of the purchase price. Such contracts are valid, and, upon demand, the vendor is entitled to retake the property. If the property conveyed is not in accordance with the contract, the vendee cannot, at his option, retain the title, and thus deprive the vendor of his security The right of the vendor to retake his property upPn demand is not dependent upon the verdict of a jury, or the finding of a court, that he did not furnish the property as specified. The law does not give a vendee such.an advantage. Otherwise, an irresponsible vendee might, by interposing such a claim, defeat the sole purpose of such provisions. Upon failure to settle or pay as agreed, the vendor is entitled to a return of the property. If the vendee has suffered damage by the failure on the part of the vendor, he has a remedy by action for breach of contract. A. sells to B. a horse with warranty ns to soundness, retaining the title till the purchase price is paid. B., claiming the horse is not sound, refuses payment. A. makes demand, and, upon refusal to deliver possession, brings replevin. B. defends on the ground of a violation of the warranty, and claims the right to retain the horse for that reason. If his defense avails, it must, be because the title has passed to him on account of the violation of the contract of warranty Such a rule is not supported by authority or reason.
After the chairs were furnished and in place, and defendant claimed that they were in accordance with the contract, it demanded a settlement. This the plaintiff refused, and, when asked to point out in what particular any of the chairs did not come up to the contract, he refused to do so. The defendant was entitled to know in what respect plaintiff claimed defects, and it had the right to remedy them if it desired to. It was the legal duty of plaintiff to point out these defects. Having failed to do' this, he cannot rely upon them in a replevin suit to defeat the right of defendant to retake the property under the express terms of the contract.
The court should have directed a verdict for defendant.
Judgment reversed, and new trial ordered.
Montgomery, J
The plaintiff purchased of the defendant assembly chairs for his opera house under a written contract. The chairs were described in the contract by the color of the wood, color of the castings, etc., but it contained no further specification as to quality. The defendant frequently sought to have a settlemeirt with the plaintiff, and, failing in this, took possession of the chairs by virtue of a provision of the contract that the title to-the seating, or any portion thereof, should not pass to the plaintiff, but should remain in the defendant; until full payment in cash had been made. It was admitted that, the payment had not been made, but it was contended that there was a warranty as to quality which had been broken, and that by virtue of a provision of the contract, hereinafter quoted, the plaintiff had the right to retain possession of the chairs until the warranty was made good. The warranty was no part of the written agreement between the parties, but depended upon oral testimony. The written contract contained this provision:
“It is further mutually understood and agreed that the seating plans hereinbefore mentioned, when approved by second party, shall be considered a part of this contract, and said first party shall not be held accountable or suffer loss through any errors in measurement of house; but if said first party shall, through negligence or error, make and ship any chair not in conformity with said plans and specifications, then said second party may retain in settle-’ menfc, from the amount agreed to be paid, double the cost of any chairs so wrongly made or mechanically constructed, until such mistake shall be made good, when said sum so retained shall be paid to first party. Such mistake or error shall not, however, affect or delay settlement in accordance with this contract further than is herein stipulated.”
This provision should not, in our judgment, have been construed as warranting the plaintiff in refusing settlement for the chairs on the ground that they did not conform with a warranty not contained in the written agreement. All that was contemplated by the provision was to guard against errors in measurement, or negligence in shipping a chair which could not be placed in the opera house in conformity with the plans and specifications, — such an error as would be apparent at once upon the attempted performance of the contract by the furniture company. This is evident from the fact that it was agreed that settlement should be made by note' due in 90 days. It is clear that it was not intended that defects afterwards ascertained by putting the chairs to use should be corrected by retaining, in settlement, double the cost of the chair.
If it be assumed that there was a warranty in addition to the specifications, the plaintiff had three remedies: He might, independently of the provision quoted, have refused •to accept the chairs if they did not correspond with the terms of the warranty; he might, for any error discovered, at once in the mechanical construction, arising through errors in measurement, or negligence on the part of the furniture company to make the chairs conform with the plans and specifications, retain double the cost of the chairs thus imperfectly constructed; or he might accept the chairs as they were, and sue and recover upon the warranty, if any existed. But he has not taken this course. He has refused settlement altogether, has retained the chairs, and has manifested no purpose to pay for them. The terms of the contract are not sufficiently binding upon the company to justify the plaintiff in confiscating the chairs to his use. The circuit judge should have directed a verdict for the defendant.
I concur with the Chief Justice upon the point discussed by him. | [
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Potter, J.
The Polish American Publishing Company, a Michigan corporation, by August Cyrowski, a shareholder therein, and August Cyrowski, plaintiffs, filed a bill in chancery against defendants Louis F. Wojcik, Frank Januszewsld, Matie Wojcik, Stefania Januszewsld, John J. Przylubski, First Wayne National Bank of Detroit, a Federal banking corporation, Wyandotte Savings Bank, a Michigan corporation, and the Standard Trust Company, a Michigan corporation, for the dissolution and winding up of the affairs of the Polish American Publishing Company; the appointment of a receiver for that purpose; for an accounting by defendants and the payment by them to the corporation of moneys due from them to it; for setting aside a series of bonds issued by the plaintiff corporation, and a trust mortgage securing the payment of the same, as null and void; for refunding of certain moneys to the corporation by persons receiving the same; for an injunction restraining the personal defend ants above named from selling, assigning, pledging, hiding away or in any other manner disposing of their property and restraining Frank Januszewski from drawing and receiving from the corporation any money for salary, bonus or commissions voted to himself, and restraining John J. Przylubski from paying to Frank Januszewski or to his order any money of the corporation on account of any salary, bonus or commissions illegally voted to Frank Januszewski by the board of directors of the corporation, and from altering and changing any books or records of the corporation; and for other and further relief. From a decree for defendants, plaintiff appeals.
The Polish American Publishing Company, a Michigan corporation, had an initial capital stock of $20,000, which was raised to $36,Q00 in 1919. August Cyrowski, plaintiff, owned 60 shares of its capital stock. The bill of complaint alleges that from 1920 to 1930 the corporation was controlled by Louis F. Wojcik who dominated the board of directors, elected its officers and dictated the policy of the corporation ; that the directors other than Wojcik were mere dummy or puppet directors and in pursuance of a fraudulent conspiracy entered into by defendant Wojcik with these rubber-stamp directors he proceeded to plunder the corporation, misappropriate its earnings, exclude plaintiff Cyrowski from participating in the profits of the corporation, and that Wojcik, by reason of his malfeasance and nonfeasance, all of which is discussed with great particularity in the bill of complaint, misappropriated and converted to his own use upwards of a quarter of a million dollars; that since 1930, Frank Januszewski acquired the rights of Loúis F. Wojcik in the corporation and dominated and controlled such corporation in the same manner as defendant Louis F. Wojcik had before that time done and wrongfully extracted large sums of money therefrom without consideration. It is charged plaintiff August Cyrowski had been excluded from the plant of the corporation, from participation in its corporate meetings, from sharing in the profits of the business and from examining the records and books of the corporation ; and that plaintiff Cyrowski had but a few days before the filing of the bill of complaint learned of the defalcations, misappropriations, malfeasance and nonfeasance of defendants.
The defendants denied all of the acts of misfeasance, nonfeasance and wrongdoing alleged against them in plaintiff’s bill of complaint; alleged the capital of said corporation became impaired in the usual and ordinary operation of such business ; claimed the bill of complaint was filed for the purpose of wrecking the business; and denied plaintiff was entitled to the whole or any part of the relief prayed.
The trial court denied plaintiff’s petition for the appointment of a receiver and ordered so much of the bill of complaint as related to the dissolution of the corporation and the appointment of a receiver dismissed.
While this case was pending in the circuit court August Cyrowski, plaintiff, died and his death was suggested on the record and subsequently an order was entered substituting Arthur Cyrowski, administrator of the estate of August Cyrowski, as a party plaintiff.
On August 24, 1934, defendants Frank Januszew: ski and wife and John J. Przylubski moved for leave to file a supplemental answer and an order was entered granting leave to file such supplemental answer. Such supplemental answer alleges that on July 24, 1933, Paul Faust purchased all of the stock owned by August Cyrowski in the Polish American Publishing Company and thereupon became entitled to all the rights of August Cyrowski in and to any rights of action or claims asserted by the said August Cyrowski or his administrator in the cause; and that neither August Cyrowski nor his administrator had any right, title or interest in the cause. In support of this allegation they alleged that one Julian Koss recovered judgment against August Cyrowski in the circuit court for $6,519, together with $98.15 costs, and that the stock of August Cyrowski in the corporation was levied on and sold at execution sale by the deputy sheriff of Wayne county, and in pursuance of such sale Paul Faust paid for the same $9,412.67, from which sum the amount of such judgment and costs was paid, and the sum of $2,541.40, after the payment of $6 in revenue stamps, was paid by the deputy sheriff conducting the sale to August Cyrowski; and, therefore, neither the plaintiff August Cyrowski nor his administrator could maintain this suit, having parted with all of their right, title and interest therein under the execution sale above mentioned, a part of the proceeds of which, after payment and satisfaction of the judgment under which execution was levied against the same, was paid over to and accepted by the plaintiff August Cyrowski.
Two questions are presented: (1) May an^action in equity brought on behalf of the corporation by its minority stockholder for the fraud of majority stockholders in control of the corporation in diverting its assets be prosecuted to completion where it is made to appear that the minority stockholder lost his stock some 14 months after the commencement of suit by Mm and. while the same was pending; and (2) was the trial court right in summarily dismissing the bill of complaint brought for that purpose upon the ground that plaintiff had parted with his stock as above alleged after the commencement of suit by him?
Plaintiff claims the trial court was in error in summarily dismissing the bill of complaint upon the ground that plaintiff August Cyrowski had parted with his stock during the time the case was pending, and appellees contend the trial court was correct in so dismissing the bill of complaint. This presents the only issue.
The capital of plaintiff corporation was a trust fund for the benefit of its creditors and, after the discharge of its obligations to creditors, for its stockholders without preference or priority one over another.
There is no doubt of the right of a corporation to maintain a suit in its own name to recover for it money or property belonging to it of which it has been fraudulently deprived. Such money or property when recovered is the money or property of the corporation — a part of the trust fund for the benefit of creditors and stockholders. Certificates of stock are only evidences of ownership of an aliquot part of the assets of the corporation. The earnings of the corporation belong to it. They, too, are a part of the trust fund in the hands of the corporation. They are additions to the capital thereof. Any stockholder’s interest in such earnings or additions to the capital of the corporation is represented by the certificate of stock which is evidence the legal holder thereof is entitled to an aliquot part of its assets, less its liabilities. And such interest passes, on the passing of the certificate of stock, to the holder thereof. Until the earnings of the corporation are separated from its capital and segregated for dividend purposes and declared as dividends, they do not belong to the stockholders as separate and distinct from the corporation itself. The surplus earnings of a corporation are corporate property. In re Joy’s Estate, 247 Mich. 418 (72 A. L. R. 973). The stockholders of a corporation are not creditors of a corporation as that word is generally used. Leland v. Ford, 245 Mich. 599; Curtiss v. Wilmarth, 254 Mich. 242. Dividends mean corporate profits set apart for division among the shareholders. Knight v. Alamo Manfg. Co., 190 Mich. 223 (6 A. L. R. 789); Barnes v. Spencer & Barnes Co., 162 Mich. 509 (139 Am. St. Rep. 587); Bay City Bank v. St. Louis Motor Sales Co., 255 Mich. 261; Lockhart v. Van Alstyne, 31 Mich. 76 (18 Am. Rep. 156). A stockholder of a corporation has no specific right to any part of the surplus acquired by such corporation, except that he may have an equitable right to a division of the same among the stockholders. In re Joy’s Estate, supra; Dodge v. Ford Motor Co., 204 Mich. 459 (3 A. L. R. 413).
All persons who own shares of stock in a corporation at the time a dividend is declared thereon are entitled to share in the dividend in proportion to the amount of their holdings, regardless of the time when they acquired the shares. 14 C. J. p. 817. As between successive owners of shares of stock in a corporation, the general rule is that dividends belong to the persons who are the owners of the stock at the time they are declared, without regard to the time within which the dividend was earned. 14 C. J. p. 818.
In cases of this kind, since the cause of action exists primarily in behalf of the corporation, the stockholder is not permitted to sne unless lie shows either that the corporation actually refuses to bring the suit or that a refusal of the managing body, if it had been requested to bring the suit, might be inferred with reasonable certainty. 5 Pomeroy’s Equity Jurisprudence (3d Ed.) § 305.
Where money belonging to a corporation is recovered in a stockholder’s suit, the amount found due from the several defendants to the corporation must be paid by them to the treasurer of the corporation and disbursed by him to the stockholders in accordance with their respective interests. Garber v. Town, 208 Mich. 1.
Suits in equity must be prosecuted by the' real party in interest, 3 Comp. Laws 1929, § 14010, subject to the exceptions contained in the statute so providing. If, after plaintiff institutes a suit, he divests himself of any claim, he may not continue to litigate, but the suit may be dismissed. Brewer v. Dodge, 28 Mich. 359. This necessarily follows from the provisions of 3 Comp. Laws 1929, § 14010, which requires the prosecution of every action in the name of the real party in interest.
Plaintiff August Cyrowski’s shares of stock were levied upon and sold during’ the pendency of suit, and by the express terms of the statute the purchaser of such shares of stock became entitled to the dividends thereon. 3 Comp. Laws 1929, § 14598. The title to plaintiff’s stock having passed from him during the pendency of suit, defendants had a right to a dismissal of the bill. Court Rule No. 18, § 1, subd. j (1933). In addition, the stock of plaintiff Cyrowski was sold at execution sale for more than the amount of the execution in the hands of the officer and plaintiff accepted from the deputy sheriff conducting that sale the sum of $2,541.40 after the payment of $6 for revenue stamps. Plaintiff could not take and keep the benefit of the sale of Ms stock under execution and at the same time repudiate the sale and continue to prosecute the suit as a stockholder after he had lost his interest in the capital stock of the corporation.
Decree of the trial court affirmed, with costs.
Fead, C. J., and North, Wiest, Butzel,. Bushnell, Sharpe, and Chandler, JJ., concurred. . | [
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Hooker, C. J.
The plaintiff’s son, being engaged in a business which he found unprofitable, so told the plaintiff, and agreed to let him have the property in dispute, to apply upon an indebtedness due him for money lent to and paid for the son to the amount of several hundred dollars. This talk occurred upon Sunday, and, in accordance with it, the plaintiff on the next day went to the store, and proceeded to remove the property therein. On Tuesday the property in question, before it was removed by the plaintiff, was levied upon by defendant, a constable, under an attachment against the son, dated September 29. On October 5 the plaintiff's son executed and delivered to plaintiff a bill of sale of the property. Upon October 9 the justice quashed the attachment proceedings for a defect in the affidavit, when a new writ was issued, and levied upon the property, which remained in the officer's possession. Plaintiff thereupon brought replevin in the circuit court, and obtained a judgment, from which the defendant appeals. In addition to the property in the store, the writ covered a gray mare, a harness, and a wagon.
It is contended by appellant:
1.. That the plaintiff took no title under the Sunday arrangement, for the reason that it was void, and that the transaction on Monday was a mere voluntary delivery, not rising to the dignity of a contract.
2. That the bill of sale on October 5 was void as against ■creditors, because not accompanied by delivery of the property.
3. That the defendant came lawfully into possession of the property under his first writ, and that a demand was necessary before replevin could be maintained.
4. That the bill of sale was invalid, being made with the intent to hinder, delay, and defraud creditors.
5. That the court erroneously instructed the jury that the burden of proof was upon the defendant to show fraud.
6. That he refused to instruct that, if the plaintiff was a creditor of the son, he could not recover if the bill of sale was made with the intention of defrauding other creditors.
It is undeniable that the negotiations that occurred upon Sunday were invalid, and passed no title to the plaintiff. Our attention is called to no evidence that shows a sale of the property to the plaintiff before September 29. The evidence shows that without further talk than that of Sunday the plaintiff proceeded to remove the property, and that his son saw him doing so without objection. It is settled law in Michigan that a Sunday contract is a prohibited transaction, the illegality of which forbids it being made a sale by a mere delivery later. The delivery must be accompanied by circumstances which in themselves supply the necessary elements of a contract, without depending upon the Sunday transaction for any essential. Tucker v. Mowrey, 12 Mich. 378; Winfield v. Dodge, 45 Id. 355; Benedict v. Bachelder, 24 Id. 425; Allen v. Daffie, 43 Id. 1; Arbuckle v. Reaume, 96 Id. 243; Winchell v. Carey, 115 Mass. 560. It being settled that there is no proof of a sale .before September 29, it follows that the court should not '.have left that question to the jury, as he did, by giving the plaintiffs tenth request.
Appellant further complains of the instructions upon the ¡subject of fraud, claiming that under How. Stat. § 6190, the plaintiff had the burden of proof upon him, and was required to show that the bill of sale was made and received in good faith.* It should not be overlooked that when this bill of sale was given the goods were not in the possession or under the control of the son. He had permitted the plaintiff to take possession, and the defendant had wrongfully seized the property, and withheld it from the plaintiff. As against the defendant, the plaintiff had the right to the possession at all times prior to October 9, and might have maintained replevin upon the facts then existing. The son had placed the property in the plaintiff's possession, and the bill of sale was apparently designed merely to perfect a title which the Sunday contract failed to convey. We think this is not a case in which it can be held that the transaction of October '5 must be presumed fraudulent because the son did not deliver goods of which he had not actual possession, and which the defendant was preventing him from controlling by his own wrongful act. But the question of actual fraud was in the case, and should have rested upon the character of the transactions subsequent to Sunday, including October 5; and this the charge recognized.
No demand was necessary. The taking and detention under the first writ of attachment were tortious, and while the writ, if good upon its face, might have protected the officer from personal responsibility, he cannot base a right to possession upon it if the writ was founded upon a void affidavit. Beach v. Botsford, 1 Doug. 199; Le Roy v. City Railway, 18 Mich. 233; Gidday v. Witherspoon, 35 Id. 368; Adams v. Hubbard, 30 Id. 104.
As already shown, it is possible that the verdict was based upon the transactions previous to September 29, and for this reason the judgment must .be reversed, and a new trial ordered.
The other Justices concurred.
“If James Aspell, however, so bought and had such possession before September 29, 1891, then, even though Thomas Aspell intended in making the sale to cheat and defraud other creditors, that does not afford a defense to the defendant, unless plaintiff participated in such intent, and bought the property for that purpose, and not for the purpose of • satisfying the amount due to him, plaintiff.”
See Hauser v. Beaty, 93 Mich, 499. | [
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Hooker, J.
Deceased, a painter, employing men, got up early to commence a job. While his wife was preparing breakfast, he went to the privy, where he was soon after found dead, upon the floor, by his wife, who testifies that she found a rope about three feet long, with a knot in it, the knot being under his 'neck. Other testimony showed that the neck was bruised or discolored, and there was a three-cornered bruise upon the right temple, A brick was kept in the privy, which was there at the time, to keep the door shut. The door was shut when he was found. Some witnesses testified that there was a discolored ring around his neck. Others did not see this. The privy was eight or ten rods from the house, and there was no evidence that any other person was seen upon the premises. Evidence was offered showing that a short time previous he had been struck over the eye by a person who used brass knuckles, by which blow he was seriously injured. Witnesses differed as to whieh side of the face this injury was upon. An autopsy showed ecchymosis of the brain. There appears to have been no investigation of other organs than the brain. The size of the privy was 6 by 5 feet, and the distance from seat to door was 22 inches.
Plaintiff's theory seems to be that the blow upon the temple caused death. If this be accepted as true, we'must then look for the cause of the blow. Among the possible theories are the following:
1. That some person struck him.
2. That he struck himself with the brick, with suicidal intent.
3. That he fell upon the brick (a) after hanging himself; (b) by falling in a faint; (c) by falling in a fit of apoplexy; (d) by falling from heart failure.
While these are all within the bounds of reasonable con jecture, there is but little evidence in the case to justify a jury in deciding which was the cause. What there is favors the theory that he attempted his own life by strangulation, or by striking himself with the brick, or both, and perhaps falling upon the brick. Of a half dozen or more possible theories, the jury have found one inconsistent with what little evidence there is, and based a verdict upon it. Until there was some evidence tending to show that death resulted from accident, rather than from design or natural causes, such as apoplexy or heart failure, there was nothing to go to a jury. There was not a, prima facie*case of accidental death. The burden of proving accidental death is upon the plaintiff. Until some proof is offered tending to establish one of several equally reasonable theories, some consistent with the theory of accidental death, and some inconsistent with it, a case is not made out.
As this disposes of the case, other questions need not be discussed.
The judgment must be reversed, and no new trial ordered.
The other Justices concurred. | [
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Montgomery, J.
The plaintiff, a corporation duly organized and existing under the laws of the state of New York, brought suit by declaration, alleging that defendant became and was indebted to the firm of Wyckoff, Seamans & Benedict for goods, etc., sold and delivered, and that said firm assigned this claim to the plaintiff. The defendant demurred on the sole ground that the declaration failed to state who are the persons or parties named in said declaration as the firm of Wyckoff, Seamans & Benedict. The plaintiff joined in demurrer, and thereupon entered a motion for judgment on the demurrer on the ground that the same was frivolous. The circuit judge granted the motion, and entered an interlocutory judgment for the plaintiff, and thereafter assessed plaintiff’s damages, and entered final judgment.
Defendant appeals, and in his brief discusses three propositions:
1. That the demurrer was not only not frivolous, but well taken.
2. That plaintiff, having joined in the demurrer, waived any objection on the ground of frivolousness.
3. That, if the demurrer ■ was not well taken, defendant should have been allowed to plead over.
1. Our attention has been called to no case in which it has been held that in averring the assignment of an account or the transfer of a note or bill from a firm to the plaintiff it is necessary to specify the individual members comprising such firm. In' pleading and practice a copartnership is recognized as a legal entity for many purposes, and in practice the method adopted by the plaintiff in this case is common. The rule that it is necessary to set out the full names of the parties to the record has no application. If the purpose be to apprise the defendant of the contract upon which the plaintiff relies as having been entered into by him, the designation of the copartnership by its firm name is quite as well calculated to furnish him with the information as would be the setting out of the names of the individual members. The cases cited by defendant’s counsel are cases in which the plaintiff has failed to give his full name. In such case, if the defendant prevails, judgment }Dasses against the plaintiff, and could be entered against and bind the individual members of the firm. Such is not the case here.
It is a question of more difficulty to determine whether it may be said that the demurrer was so clearly without foundation as to justify the inference that it was interposed merely for delay. We are disposed to hold that the circuit judge committed, no error in holding the demurrer frivolous. The identity of the contract upon which the plaintiff sued we think was so plain upon the face of the papers that no other purpose could be served by interposing a demurrer except that of a delay. In Green’s Practice (page 203) it is said:
“If the demurrer appears to be clearly without foundation, and interposed merely for delay, the plaintiff may, after joining in demurrer, move the court, at the proper time, for judgment on account of the frivolousness of the demurrer.'”
The above reference to Green’s Practice would indicate that the practice pursued of making the motion to the court after joining in demurrer is proper, and that defendant’s contention that the joinder in demurrer waived any objection on the ground of frivolousness is not tenable. The plaintiff is bound to join in demurrer within the time fixed by the rule, or he is liable to be defaulted. The opportunity for making the motion to the court may not occur until after the time has elapsed, and it would be a hardship if he should waive one right by preserving another. The joinder in demurrer comprises simply a statement that the declaration is sufficient in law. This is certainly not an admission that a demurrer which asserts that the declaration is insufficient may not be frivolous.
Should the defendant, under the circumstances of this case, have been allowed to plead over? The record does not show that the defendant asked permission to plead over, or that there was any showing that he had a meritorious defense. It is not a matter of right for a defendant to plead over after a demurrer has been overruled, particularly when it is determined that the demurrer is frivolous. While we do not intimate that an abuse of discretion might not be reviewed, we do not think that there was any abuse of discretion in the present case. In the case of Tefft v. McNoah, 9 Mich. 201, the defendant’s counsel immediately asked leave to plead over, which was not done in the present case. We cannot presume that, had such a request had been made, it would have been refused, particularly if accompanied by a showing of merits. In Shinn’s Practice (section 687) it is said:
• “ If the pleader does not ask permission, the inference may justly be drawn that he is unable to produce the evidence, and that the fact is as alleged in the pleading."
See, also, Bissell v. Spring Valley Township, 124 U. S. 232, and cases cited.
The judgment will be affirmed, with costs.
The other Justices concurred.
Smith v. Canfield, 8 Mich. 493; Barber v. Smith, 41 Id. 138; Fisher v. Northrup, 79 Id. 287; Bjorkquest v. Wagar, 83 Id. 226. | [
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Long, J.
Bill to remove- qloud from title. Complainant married one Michael Haug, November 30, 1889. He died intestate July 19, 1890, leaving no children surviving him. June 10, 1891, Mathias Haug petitioned the probate court for administration upon the estate of Michael Haug. He averred in his petition that he was interested in the estate as a half-brother of the deceased; that the deceased died seised of real estate of the value of $400, but left no personal estate; that the heirs at law were Mary Haug, his wife, aged 30 years, and the petitioner, a half-brother, both residents of this State, and also Anna Haug, his mother, Andrew Haug, a half-brother, Barbara Haug, a sister, and Anna Alers, a step-sister, all resident in Germany. Due notice was given of the' hearing of this petition, and Mathias Haug was appointed administrator of the estate, and he duly qualified and proceeded to act as such. Notice to creditors to file claims was duly given, and at the expiration of the time fixed for filing, no claims having been filed, the administrator, on February 2, 1892, filed his petition in the probate court praying for the sale of the interest of the deceased in the lands, being an undivided one-half interest. In his petition he alleged that no personal property of the deceased had come into his hands, and that the only personal estate belonging to the deceased consisted of some household furniture of the value of 1250, which had been selected by the widow under the statute. He further averred in this petition that there were no debts outstanding against the estate, and that no claims bad been allowed against it; that the charges and expenses of administering the estate, including the future probable charges and expensés, would amount to the sum of $250; that it was necessary, for the purpose of paying said charges and expenses, to • raise the said sum of $250 by the sale of said lands; that said lands were wild and uncultivated, and yielded no income whatever, but that the interest of the deceased in said lands was worth $200. He further set forth the names of the heirs at law and persons interested in the estate, as above specified. The probate court ordered the sale as prayed. It was duly advertised, the necessary bond and oath filed, and- the sale made on May 21, 1892, to the defendant in this suit for the sum of $120. A report of the sale was made and confirmed, and a deed to the purchaser ordered and made on that date. The administrator afterwards made and filed his final account, which was allowed. This account showed the receipt of the $120, the purchase price of the land, and the expenses, as follows: Publishing and posting the necessary legal notices, $40.65; taxes paid, $24.23; attorney’s fees paid, $50; administrator’s commission, $6, — total, $120.88; leaving a balance due the administrator of 88 cents. Afterwards, and on October 17, Í892, upon a proper petition and hearing, the administrator was duly discharged, and his bond and letters of administration canceled.
October 19, 1892, the complainant filed this bill, praying that the defendant be required to quitclaim to her an undivided one-quarter interest in said lands, and that the deed given to defendant upon said sale be canceled and set aside as to that one-quarter interest. The bill alleges such interest to be worth $500. Defendant appeared and filed a general- demurrer to the bill, which was overruled by the court below, and this appeal is taken by the defendant.
Complainant claims by her bill—
1. -That the entire administration proceedings are void, for the reason that the court never acquired jurisdiction of the matter, because the petition for the appointment of an administrator was not made by any one interested in the estate.
2. That if the probate court did obtain jurisdiction for the appointment of* the administrator, yet it had no jurisdiction to order a sale of the lands, for the reason that the petition for the sale showed on its face that the sale asked for was for the purpose simply of paying the charges and expenses of administration, and not for debts - and claims against the estate.
The claims of the defendant are—
1. That the petition for the appointment of the administrator was sufficient, and the court thereby acquired jurisdiction, and that, if any defects appeared in any of the proceedings, they were at most irregularities, and did not render such proceedings void, but voidable only, by action taken in the probate court itself, or by appeal therefrom.
2. That this bill cannot be maintained, as it is a collateral attack, and the lands are held by one who purchased in good faith.
How. Stat. § 5849, as amended by Act No. 68, Laws of 1889, provides for the administration of the estates of persons dying intestate, and directs to whom administration shall be granted, and in the following order:
“First. The widow, husband, or next of kin, or a grantee •of the interest of one or more of them, or 'such of them as the judge of probate may think proper, or such person or persons as the widow, husband, next of kin, or grantee may request to have appointed, if suitable and competent to discharge the trust.
“Second. If the widow, husband, next of kin, or grantee, or the person selected by them, shall be unsuitable or incompetent, or if the widow, husband, next of kin, or grantee shall neglect for thirty days after the death of the intestate to apply for administration or to request that administration be granted to some other person, the same may be granted to one or more of the principal creditors, if any such are competent and willing to take it.
“Third. If there be no such creditor competent and willing to take administration, the same may be committed’ to such other person or persons as the judge of probate may think proper.”
It is evident that under this statute an administrator •can be appointed only when a proper petition is filed for1 that purpose. The petition was made by a half-brother of the deceased. On its face it appears that he was not the next of kin. Under the statute the estate descended to the widow and the mother of the deceased in equal shares, ■as there were no children. Act No. 168, Laws of 1889. 'The petitioner was not the grantee of the interest of tbe widow or the mother of the deceased; nor does it appear that he was requested by the next of kin, or the grantee •of the interest of- one or more of them, to petition for administration. He was not a creditor of the estate, or in any way interested in it. The petition, upon its face, did not confer jurisdiction upon the court to grant letters of administration to the petitioner or any other person. Shipman v. Butterfield, 47 Mich. 487; Besancon v. Brownson, 39 Id. 388; Breen v. Pangborn, 51 Id. 29. It follows that the order for the sale of the property was void, whether it was for the purpose of paying debts, or simply for expenses of administration.
Some question is raised by the defendant that the suit in equity could not be maintained, as it was a collateral attack upon the proceedings. This point is not well taken. The conveyance made by the administrator is a cloud upon complainant’s title, and she, being the owner of an undivided quarter interest, has the right to invoke the aid of a court of chancery to remove the cloud.
The decree of the court below overruling the demurrer must be affirmed. Defendant will be given 20 days from date of notice of this affirmance to answer complainant’s biH.
The other Justices concurred. | [
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McGrath, J.
Plaintiffs bring replevin under a chattel mortgage executed to them by one Partrick, dated December 3, 1892. The mortgaged property was in the possession of Partrick at the date of the mortgage. On January 16, 1893, the property was taken possession of by defendant upon a writ of replevin, under an instrument dated June 19, 1891, by the terms of which Mason agreed to advance to Partrick money, merchandise, and chattels, not to exceed $1,000, for the purpose of establishing a creamery, dairy, and commission business, to be known as the “Muskegon Creamery,” and to be operated by and under the name of H. L. Partrick. In consideration thereof, Partrick agreed to devote his entire time to the management and operation of said business; to assign to Mason a certain land contract; to insure the building then under course of construc ti on, which was to be used as a store and business room for said business, and the contents thereof, for the benefit-of Mason; to attend to all the business matters connected with said business for the benefit of Mason; and to consult with Mason regarding all matters connected with said business, and to abide by Mason’s directions and instructions. The instrument concluded as follows:
“It is hereby strictly understood that the contract for the deed before mentioned, the buildings and improvements, on the foregoing described property, together with all apparatus, chattels, and merchandise used in connection with the before-mentioned business, is and shall remain the property of the said first party until the following-agreement shall have been fulfilled. The said second party hereby agrees to keep an accurate and legible account of all the transactions of said business, and to turn over to said first party all the money which shall accumulate in said business, after first paying all the necessary running expenses in said business, so often as said first party may require, until such time as the entire amount advanced by said first party for the establishment of said business, together with interest on the same at the rate of ten (10) per cent, per annum, shall be received by said first party, his heirs, executors, administrators, or assigns. On the fulfillment of the above contract, the said first party hereby agrees to relinquish unto the said second party all his rights, title, and interest in the above-mentioned property, chattels, apparatus, and business."
On April 1, 1892, Mason and Partrick entered' into a supplementary agreement, by the terms of which they mutually agreed—
“That the amount of interest mentioned in the said instrument shall be changed to 8 per cent., in consideration of the second party to pay the same monthly, the first party having advanced $500 more than the instrument calls for, making a total amount advanced $1,500."
Neither of said papers was filed in the clerk’s office, nor does it appear that plaintiffs had any knowledge of their existence when the chattel mortgage was given.
It appears from the record that, at the time of the execution of the instrument under which defendant claims to own the property, the title to said property was in Partrick; that Mason did not at that time part with the possession of any of the property covered thereby; that while Partrick had, some time in February preceding, received from Mason a horse, harness, and wagon, yet the testimony clearly shows that the same were purchased by Partrick at and for prices stipulated, and were delivered accordingly, and' there is no testimony tending. to show that the sale was not absolute and unconditional; that Partrick came to Muskegon in February, 1891, and was then indebted to Mason in the sum of about $312; that said sum was included in said writing as “advances;” that, since February, Partrick had been carrying on the dairy and commission business, and defendant and others had been supplying him with milk at prices agreed upon, and shipping him produce on commission; that Partrick was, on June 19, indebted to Mason on milk account, $232, on produce account, $123, for a horse, wagon, and harness, $180, and, for a loan made in the early part of June, $100; that these items made up the sum of the “advances;” that, since the execution of said instrument, Partrick had continued to carry on the business as before, and for a portion of the time with a partner; that' he had made all purchases in his own name, had added largely to the plant, bought a farm, stocked it with horses, cows, and hogs, and operated it in connection with the creamery; that in the course of said business he had given his individual notes, indorsed by persons other than Mason; that the indebtedness to plaintiffs grew out of indorsements for the accommodation of Partrick; that, since June 19, Partrick had made payments upon the land contract mentioned in the writing; and that Mason knew of these purchases, dealings, and indorsements.
In the light of these facts, it is clear that this instrument was intended, and must be treated, as a security, merely. Even as between the parties, the intention is to be gathered, not from the face of the instrument alone, but from the situation of the parties, the surrounding circumstances, and the subsequent conduct relative to the subject-matter. This is not, however, a controversy between the parties to the instrument. The transaction cannot be regarded as a conditional sale of chattels, the title .to which was in Mason at the time of the execution of the writing. It is in effect a conveyance .by Partrick, to be defeated by the payment of his indebtedness, and, that being its real purpose, the intentions or suppositions of the parties as to who should be regarded as holding the title cannot avail as against subsequent mortgagees in good faith, under the statute. How. Stat. § 6193. This statute does not permit a transaction which is in substance a mortgage to have the effect of a sale, however disguised, to the prejudice of parties dealing with the debtor, in the absence of the statutory notice to such parties. Nor does this record contain any evidence which tends to show that plaintiffs had any knowledge of the execution, delivery, or existence of this writing, or of any claim by Mason of the ownership of the business or property, or any concession by Partrick to the same effect, until Mason took the prop.erty' under the writ of replevin. There is no pretense that Mason held, himself out to the public as the proprietor of said business or as the owner of the property, or that Partrick so regarded or represented him. The fact that plaintiffs knew that Mason was delivering milk and produce to Partrick does not tend to show notice of any such claim as is now set up by defendant, as other parties were also delivering milk and produce, and both Mason and Partrick testify that the milk was furnished by Mason at stipulated prices, and the produce was to be sold on com mission, and Mason charged both np to Partrick, and credited him with payments made from time to time. The court should have directed a verdict for plaintiffs.
The judgment for defendant is therefore reversed, and a new trial ordered.
The other Justices concurred. | [
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Hooker, J.
Npon the 7th day of October, 1890, the petitioner was sentenced, to be confined in the State prison for a term of four years. At its session of 1893 the Legislature made a change in the law pertaining to the time to be allowed in the reduction of the term of imprisonment of convicts for good behavior. Act No. 118, Laws of 1893. The difference in time allowed will be readily understood by a comparison of the acts, in parallel ■columns:
Acf of 1877. First and second years, 2 months each, 122 days. Third and fourth years, 75 days per year, 150 days. Total, 272 days.
Act of 1893. . First and second years, 5 days per month, 120 days. Third and fourth years, 6 days per month, 144 days. Total, 264 days.
It will be seen from the above that a prisoner whose conduct was such as to entitle him to the full benefit of the statute would be entitled to a reduction of eight days more, under the law of 1877, than under that of 1893. The act of 1893 took effect in May last. If petitioner’s good time is to he computed under the former act through out his term, he was entitled to discharge on January 8, 1894. If it should be computed under the old act up to thé date of its amendment (which is conceded), and subsequently under the new, he should have been discharged on January 11, 1894.
Another feature of the new law, not found in the former, is that convicts serving second terms in said-prison shall receive less benefit, viz., two days per month for the first two years, and three days per month for the third and fourth years. One serving a third term is allowed no reduction whatever. The petition alleges that the warden claims that he (the petitioner) is serving a second term, and proposes to compute the time accordingly, which (giving petitioner the benefit of good time earned before the act of 1893 took effect) would end his term on March 4, 1894. Petitioner does not deny that he is serving a second term in said prison,.and the return states that such is the fact, which, upon the record, must be taken as true.
How. Stat. § 9704 (in force when the petitioner was sentenced), provides:
“ The warden shall keep a record of each and all infractions of rules of discipline by convicts, with the names of the persons offending, and the date and character of each offense, which record shall be placed before the managers at each regular meeting of the board; and every inmate who shall have no infraction of the rules of. the prison or laws of the State recorded against him shall be entitled to a deduction for each year of his sentence, and pro rata for each part of a year, when the sentence is for more or less than one year, as follows.”
The question here presented is whether this language has the effect of vesting the convict with the right to have the time deducted from his sentence if the record shall show him to have been guilty of no infraction of the rules of the prison. It is contended that this law should not be. construed as an engagement by the State to compensate a convict for obedienee to rules which it is his duty to obey, but that it is rather a provision in the furtherance of prison discipline, which, while made by the Legislature because beyond the power of the board of inspectors to make, is still a rule of discipline analogous to those which the board may make and change from time to time, and, it is argued, may therefore be made to take effect upon past offenses. In our opinion, the language of the act clearly indicates that the intention of the Legislature was to assure to the convict a prescribed' reduction upon compliance with the rules of the prison, which should be made known to him from time to time, and this right to earn a reduction of the term was one of which he could not be deprived. Such was the view taken by the Court in Re Walsh, 87 Mich 466; and the supreme court of Massachusetts reached a similar conclusion in relation to an act of that state upon which its opinion was asked by the governor (13 Gray, 618). This being the evident intention of the Legislature, we need not inquire whether or not a law which should constitute a reduction of time a privilege merely, and not a right, would be valid. The petitioner was convicted and sentenced under the earlier act, with this conditional right to a reduction of time. The effect of the act of 1893 is to deprive him, in part, of that right, by impliedly providing that, after the new law should take effect, his credits should be estimated upon a less favorable schedule than that in force when he was sentenced. To that extent we think the law is ex post facto, its effect being to increase, and not to mitigate, petitioner’s punishment. It follows that he is entitled to credit upon'the basis of the earlier statute. To his case the later act has no application.
It is also contended, upon behalf of the petitioner, that under the act of 1893 it is not within the power of the prison authorities to determine whether he is serving a •second or other term in the prison, - and that, before he can be deprived of good time earned, that question must have been adjudicated upon a hearing, where he has had ¡an opportunity to be heard, as upon the trial from which his conviction resulted. We think otherwise. This is not •a case where the law.has authorized the imposition of an increased penalty for a second offense, but one where a •certain class of offenders are denied the benefits of a certain rule, made .for the maintenance of good order in the prison. Whether it applies to a prisoner or not depends upon the fact of his being confined in that prison for the first time. This fact is one which the officers *of the prison have ordinarily the means of determining, and the act evidently designs that it shall be determined by them. Such determination is not necessarily final, and a prisoner could doubtless attack the correctness of such determination upon hateas corpus.
The petitioner will be discharged.
The other Justices concurred. | [
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Grant, J.
The declaration in this case contained the usual counts for use and occupation, but did not in terms count upon the leases hereinafter mentioned. Three leases were introduced in evidence, — the first dated June 22, 1848; the second, April 2, 1849; the third, November 12, 1872. They contained peculiar provisions, which it would be important to state fully if the record were in condition to determine the questions raised upon them. The suit was instituted for the rent for one year, from July 1, 1891, to' July 1, 1892. Mr. Beecher was then living, but died during the pendency of the suit, which was revived against his administrators. At the end of the first five years, and at the end of each succeeding term of five years, the lessor had the power to terminate the lease, and take the improvements, at a valuation to be fixed by appraisers. ‘ The leases were renewed for several terms. In July, 1883, the plaintiffs notified Mr. Beecher that they desired to terminate the lease, the preceding term of five years having expired July 1. Mr. Beecher declined to surrender possession, claiming that a new term had already commenced. Plaintiffs acquiesced in his demand, and he continued in possession at his own wish, and by their acquiescence, until his death. For several years prior to July 1, 1891, he had paid an annual rental of $1,500.
It does not appear that ‘Mr. Beecher had shown any desire or taken any steps to terminate the lease. So long as he was in the occupation and use of the premises from his own choice he was under obligation to pay the rent. He-chose to remain in possession without objection. The plaintiffs chose to recognize him as their tenant. The relation of landlord and tenant therefore existed, and, while Mr. Beecher so remained in the use and enjoyment of the premises, he was bound by its terms.
It is claimed by the defendants that these leases were void for want of mutuality, and for want of certainty as to their duration; that they were contrary to the rule of perpetuities; and that they were terminated by the failure of the lessee to pay the rent after July 1, 1891. Able arguments, are made, and many authorities cited, in support of this contention. These questions are not argued by the counsel for the plaintiffs, because he insists that they are not properly involved in the issue presented by the pleadings. Defendants5 counsel ask a determination of these questions, because it is important to the estate that they be early determined, since a contingent claim is presented against the .estate of Mr. Beecher. Should the questions raised be determined in favor of the defendants, still, for the reasons above given, the judgment in this case must be affirmed. It follows that the proper time and place for their presentation and determination are in the probate court, where the contingent claim is made.
The court, therefore, properly directed a verdict for the plaintiffs, and the judgment is affirmed.
The other Justices concurred. | [
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Wiest, J.
Upon a judgment in a tort action against defendant, plaintiff sued out a body execution or capias ad satisfaciendum, placed defendant in jail, paid the jail fees for a time, then neglected further payment and defendant was released from custody as provided by 3 Comp. Laws 1929, § 14756. Thereafter plaintiff sued out a writ of garnishment on the judgment and defendant moved to quash the writ on the ground that his discharge from custody, under the circumstances mentioned, satisfied the judgment. The court denied the motion and defendant reviews by appeal in the nature of mandamus, and presents the following questidn:
“Where defendant is incarcerated in the county jail under a writ of capias ad satisfaciendum, and thereafter released from custody through the failure and neglect of the plaintiff to pay to the sheriff the statutory fees for his keeping, does this constitute a release and discharge of the judgment?”
Such a release renders the defendant free from future arrest upon a capias ad satisfaciendum but does not discharge the judgment. While in custody no other process could issue on the judgment but upon release, otherwise than by the express consent of plaintiff, the judgment stands unaffected thereby, and process thereon for collection purposes thereafter, with the exception of another capias ad satisfaciendum'xemains available.
While a defendant is in custody that remedy is exclusive. If discharged under the insolvent debtor’s act (3 Comp. Laws 1929, § 15365 et seq.) there is no satisfaction of the judgment. Stephenson v. Purchase, 214 Mich. 95 (14 A. L. R. 496). If discharged from imprisonment by reason of any affirmative act of the judgment creditor then the judgment is satisfied in the sense that no further process may issue thereon.
Black on Judgments (2d Ed.), § 1011, states the true rule, which is one of process or procedure only:
“The arrest and imprisonment of the defendant on a writ of capias ad satisfaciendum is a satisfaction of the judgment against him in such a sense that, while such imprisonment lasts, no proceedings can be taken against his property. ’ ’
And in section 1012, states:
“At common law, the discharge of the defendant from custody under a capias ad satisfaciendum, by the voluntary act of the plaintiff, operated in law as an absolute satisfaction of the judgment. * * * But the rigor of this rule has been relaxed in various States by statutes or judicial decisions. And it is now held that further proceedings upon the judgment are not precluded if the defendant regains his liberty, * * * by the act of the law, or by a discharge under the insolvent laws, or by reason of the plaintiff’s refusing to pay the prison fees.”
‘ ‘ The discharge of a debtor from prison, on the refusal of the creditor to pay for his support in jail, is not a discharge of the debt.” 14 A. L. R. p. 507, citing Nadin v. Battie, 5 East. 147 (102 Eng. Rep. 1025); Prentiss v. Hinton, 6 Blackf. (Ind.) 35; Kellogg v. Underwood, 163 Mass. 214 (40 N. E. 104); Sharpe v. Speckenagle, 3 Serg. & Rawle (Pa.), 463; Hidden v. Saunders, 2 R. I. 391.
In Prentiss v. Hinton, supra, the court said:
“But this court has decided, that the discharge of a debtor in execution because the plaintiff refuses to pay the prison fees, is not a discharge with the consent of the plaintiff. Tatum v. Potts, 5 Blackf. (Ind.), 534.”
“Except where it is otherwise provided by statute, the discharge of the debtor from imprisonment with the consent or by order of plaintiff constitutes a satisfaction of the judgment debt, and of the execution therefor. # * * There is no satisfaction if the imprisonment is terminated without the consent of the execution creditor, as by an escape, or by a discharge under the insolvency laws, or by reason of the creditor’s refusal to pay jail fees.” 23 C. J. pp. 822, 823.
Befusal to pay jail fees and consequent termination of the imprisonment is not satisfaction of the judgment debt. 23 C. J. p. 823, citing Lambert v. Wiltshire, 144 Ill. 517 (33 N. E. 538); Marshall Field & Co. v. Freed, 191 Ill. App. 619, reversed on other grounds, 269 Ill. 558 (109 N. E. 1018).
A judgment creditor might be unable to continue the payment of jail fees, and it would be a travesty to hold that the poverty of a creditor discharges the judgment obligation of the tortfeasor, Failure of plaintiff to keep defendant in jail by payment of jail fees was not consent to his discharge. It led to his release, it is true, but that was by operation of law and not by consent of plaintiff.
Counsel for defendant contend that:
“Although the taking or detention of the body in and of itself does not constitute a discharge, such taking and detention followed by a voluntary release of the body, satisfies and discharges the debt. Defendant further contends that his discharge from custody under the circumstances of this case constitutes a ‘voluntary release.’ ”
In support of such contention counsel cite Strawsine v. Salsbury, 75 Mich. 542, and state that this court had opportunity, in Stephenson v. Purchase, supra, and Karasiewicz v. Kent Circuit Judge, 217 Mich. 589, to overrule and reverse that case in the event it no longer represents the law of this State, and that failure to do so is a clear recognition that the rule remains unchanged and, where the defendant is released from custody through the failure of the plaintiff to pay the expenses of keeping him iii custody it constitutes a satisfaction and discharge of the judgment. The point was not involved in those cases.
, The holding in the Strawsine Case is out of line with modern authority, is a retention of- an incongruous rule of the common law, penalizes the judgment creditor, is a part of the rule originating when the judgment debtor was required to pay his own-jail board and, only in case of his poverty was the creditor called upon, and we now expressly overrule that holding.
The writ of mandamus is denied, with .costs.
Fead, C. J., and North, B'ittzel, Bushnell, Sharpe, Potter., and Chandler, JJ., concurred. | [
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Bushnell, J.
Charles Penny, a judgment debtor, was taken into custody on September 16, 1933, by Thomas Lovitt, sheriff of Jackson county, on a writ of capias ad satisfaciendum. Plaintiffs, who were Penny’s judgment creditors, paid the board of the prisoner from time to time in advance as required by law (3 Comp. Laws 1929, § 14756), at the rate of 50 cents per day, the last payment of $2 being made on November 6,1933.
On November 4th, Penny was transferred to the Foote Memorial Hospital, located within Jackson county on the order of the county physician, where an emergency appendectomy was performed. Penny remained in the hospital until he was dis charged therefrom on December 15, 1933, and was never returned to custody after that date.
The total sum of the amounts paid by plaintiffs to Sheriff Lovitt, at the rate of 50 cents per day, would pay for the “board and keeping” of Penny during a confinement of 55 days. Penny was in the county jail not more than 50 days, but if the time spent in the hospital can be added, the period of actual confinement was much more than 55 days.
Plaintiffs argue that they were under no responsibility for payment of Penny’s board, etc., while he was in the hospital, and that his discharge on December 15th when “his board was then paid for five days in advance from that date” constituted an escape for which the sheriff and his bondsman are liable in this action.
Defendants do not deny that Penny’s board was paid in advance for five days, but argue that while in the hospital he was still in confinement under the writ and that there is no liability on their part because at the time of his release the board of the prisoner was not paid in advance.
Other questions are raised in the briefs, but decision rests upon whether there was an “escape” on December 15, 1933.
The matter was submitted to a jury, under proper instructions, which returned a verdict for the defendants, upon which judgment was entered. The court denied plaintiffs’ motions for judgment non obstante veredicto arid for a new trial.
The pertinent statute, 3 Comp. Laws 1929, § 14756, provides:
“Whenever in any civil action,- any person shall be committed to any jail in default of bail, or by virtue of an execution issued or proceeding founded on a judgment rendered in such suit, the plaintiff or defendant at whose instance such person shall be so imprisoned, shall pay, on demand, to the sheriff or the keeper of the common jail of the county, the expenses of the board and keeping of such person so imprisoned; and the said sheriff or keeper of said jail shall not be required to retain such person any longer in jail than such expenses of said board and keeping shall be paid in advance; nor shall any expenses constitute any charge against the county.”
During Penny’s confinement in the hospital, he was in the custody and under the control of Dr. E. H. Corley, the jail physician, who was a special deputy sheriff; his discharge was with the consent and knowledge of Dr. Corley and the approval of Sheriff Lovitt.
We are not concerned with the question of who is liable for the payment of the hospital charges. So long as the judgment debtor was in confinement under the writ, plaintiffs are required to pay the sheriff, on demand, “the expenses of the board and keeping of such person so imprisoned” and, if such expenses are not paid in advance, the sheriff “shall not be required to retain such person any longer in jail,” etc.
Upon demand, Penny’s board had been paid up to November 8th, and there is testimony to support the finding that subsequent demands on plaintiffs for payment of Penny’s “board and keeping” were refused by plaintiffs.
Under the facts of this case, confinement in the hospital, under the custody and control of Dr. Corley, a deputy sheriff, was such imprisonment as is required by law. 3 Comp. Laws 1929, § 14756.
In construing 3 Comp. Laws 1929, § 14756, we said in Reinert v. Fidelity & Casualty Company of New York, 270 Mich. 607, that the “creditor is not liable for lodging except at tbe jail (Buttles v. Carlton, 1 Ohio, 32).” Penny’s confinement in tbe hospital, in tbe custody of a deputy sheriff, was, in tbe eyes of tbe law, confinement at the jail.
We also said in tbe Reinert ease, supra:
“When, by reason of liberty of tbe prisoner and tbe support of himself, tbe jailer has no expense, there is no basis for reimbursement or for charge against tbe creditor.”
In tbe instant case, tbe prisoner was not at liberty at any time between November 6th, tbe last day upon which bis board was paid, and December 15th, tbe date of bis discharge from custody at tbe hospital. Tbe prisoner did not support himself in tbe interim and although tbe record is silent as to who was responsible for bis “board and keeping” during this period, it is certain that only five days of it was paid for by plaintiffs.
Tbe statute (section 14756) only requires tbe sheriff to retain tbe judgment creditor in jail so long as tbe expense of bis “board and keeping” shall be paid. They were not paid, although demand bad been made and Penny Was released. Tbe facts do not make out a cause of action against tbe sheriff for tbe “escape” of tbe prisoner on December 15:, 1933.
Tbe judgment for defendants is affirmed, with costs to appellees.
Fead, C. J., and North, Wiest, Butzel, Sharpe. Potter, and Chandler, JJ., concurred. | [
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Bushnell, J.
On February 9, 1935, defendant filed a claim against the estate of James S. Brown, deceased, in the sum of $2,647.36. The claim was heard by the probate judge for the county of Isabella, instead of by commissioners on claims, and allowed by him May 13, 1935, in the sum of $1,000. No appeal from this allowance was taken by the administratrix; on August 10th (89 days thereafter) appellant filed a petition for rehearing in the probate court based upon the statement that the probate judge “had an improper conception of the law and facts.” This petition for a rehearing was denied on October 10th, and on November 5th, a notice of and reasons for appeal was,filed in the probate court, some 26 days after the denial of the rehearing. When the matter reached the circuit court, the claimant moved to dismiss the appeal of the administratrix for the reason that the probate judge’s allowance of the claim became final when unappealed from within the statutory period of 20 days. See 3 Comp. Laws 1929, § 15960, regulating appeals from the decision and. report of the commissioners on claims.
Section 15519, 3 Comp. Laws 1929, provides that a judge of probate may “upon the filing in said court of a petition therein, within 90 days of the original hearing, or of the rendering or making of any order, sentence or decree, as the case may be, and after due notice to all parties interested, grant rehearings, and may modify and set aside orders, sentences and decrees rendered in such court,” etc.
The statute, 3 Comp. Laws 1929, § 15681, provides when and how the judge of probate may sit to hear claims and says:
“The action of the judge of probate in passing upon and adjusting claims shall have the same effect upon all claims against the estate as the action of commissioners would have had if commissioners had been appointed and had acted according to law, and subject to the same provisions in reference to appeal. ’ ’
Section 15960 states:
“Any executor, administrator or creditor, may appeal from the decision and report of the commissioners on claims, to the circuit court for the same county, if application for such appeal be made in writing, filed in the probate office within 20 days after the returning of the report of the commis sioners: Provided, The probate judge may extend the time for taking such appeal as provided in section one of this chapter.”
“Probate courts have no power or authority except that conferred upon them by the statutes providing for their creation.” In re Estate of Jeffers, 272 Mich. 127, 134.
“We agree that an appeal from a decision of commissioners on claims is not an appeal from a decision of the probate court.” McAllen v. Lipson’s Estate, 258 Mich. 15.
No statute has been cited and no authority shown in support of appellant’s theory that a rehearing may be granted on the allowance or disallowance of claims in whole or in part. The actions of commissioners on claims and the judge of probate in passing upon and adjusting claims becomes final when the report is filed unless appealed from within 20 days, 3 Comp. Laws 1929, § 15960.
A statutory provision for a rehearing in the probate court which permits the modification or vacation of orders, sentences and decrees cannot be used as a substitute for the statutory right of appeal from the report of commissioners on claims or that of the judge of probate acting in their place “and subject to the same provisions in reference to appeal. ’ ’
The order of the circuit court, dismissing plaintiff’s appeal from the denial of a rehearing on the claim, is affirmed, with costs to appellees.
Fead, C. J., and North, Wiest, Butzel, Sharpe, Potter, and Chandler, JJ., concurred. | [
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McGrath, J.
Defendant was a tenant under complainant. His lease expired April 30, 1892, but at the expiration of his term he refused to surrender possession, and complainant, on May 2, 1892, commenced this proceeding to oust defendant. It appears that, before the expiration ■of the term, complainant had entered into a lease of the premises to one E. for a term which was to commence May 1, 1892; and the sole contention is that complainant, by reason of the agreement with E., had not the right to possession when these proceedings were instituted.
E. held a contract for possession of the premises. By the terms of that contract, complainant was obligated to put E. in possession. Until that was done, complainant could not enforce performance on the part of E., nor could he recover rent. E. had not leased subject to defendant’s tenancy, and was under no obligation to proceed against defendant. The operative character of the contract, so far as E. was concerned, depended upon defendant’s surrender. The failure to vacate deprived complainant of the ability to perform, and left it optional with E. to take or not. Defendant was in no sense E.’s tenant, and the proceeding is not necessarily adverse to E.’s interests. .The case is not one of two landlords, but rather one of two tenants. Complainant’s title has not expired, nor has it been extinguished. In McGuffie v. Carter, 42 Mich. 497, and Hansen v. Prince, 45 Id. 519, the landlords had conveyed away all right, title, and interest in the premises, subject only to the tenants’ rights; but in the present case the lease to E. cannot be said to have divested' the landlord of the power to put the lessee in possession, or of such a right of possession as is necessary for the institution of proceedings to oust the tenant holding over, and enable the landlord to carry out the contract contemplated by that instrument. .
The judgment is therefore affirmed.
The other Justices concurred. | [
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Sharpe, J.
This is an action against defendant school district No. 5 for the collection of the balance due upon certain promissory notes claimed to have been executed by said school district to the Farming-ton State Savings -Bank and negotiated to plaintiff.
The facts indicate that on July 16,17, and 18,1930, certain, promissory notes of defendant school dis1 trict, which had been executed prior to that date, fell due and had not been paid. On July 22,1930, a special meeting of the board of education of defendant school district was held at which time all members were present except the president of the board and at this meeting the following resolution was passed:
“By graded school district under Act No. 319, Pub. Acts 1927.
“Whereas, for the school year beginning July 1, 1930, there has been duly estimated and voted in school district No. 5 fractional of Bedford, Farming-ton and Livonia townships, Oakland and Wayne county, Michigan, the same being a graded school' district, the sum of $49,975 as taxes for general school purposes, and the money is needed for such purposes before it can be collected; and
“Whereas, the delinquent school taxes in said district amount to $59,951.37 and the money is needed for general school purposes before it can be collected.
“Now, therefore, at a special meeting* of the board of education of said district held on the (22d day of July, A. D. 1930) and in pursuance of the authority of Act No. 319, Pub. Acts 1927, as amended, be it resolved that the said board do borrow on the strength of said taxes for the use of said district (the sum of $38,000 from the Farmington State Savings Bank, Farmington, Michigan, upon the promissory note or notes of said district to run for six months from July 22, 1930, and bear interest at the rate of six per cent, per annum, and the- proper officers of this board of education are hereby authorized to negotiate and close -said loan on behalf of the said district,, and to execute the promissory note, or notes of the said district therefor.
‘ ‘ Certified to be a. true copy of resolution adopted at special meeting of board of education of district' No. 5 fractional, Farmington, Redford and Livonia townships, Oakland and Wayne county, Michigan, held July 22,1930.
“F. W. Lahr,
Secretary of board of education, district No. 5, fractional, Farmington, Redford and Livonia twps. Oakland and Wayne county, Michigan.”
July 30, 1930, the treasurer of the school district delivered to the Farmington State Savings Bank $20,000 worth of notes dated July 23,1930, to run for six months, also notes totaling $14,140 and a check for $3,860 all of which paid the notes totaling $38,000 which had previously fallen due July 16, 17, and 18, 1930.
It appears that there was included in the $20,000 in notes delivered to the Farmington State Savings Bank two notes dated July 23, 1930, one in the amount of $2,500 and one in the amount of $5,000. These last two mentioned notes were purchased by plaintiff bank October 3, 1930. These notes became due January 23, 1931, and were renewed and made payable to the Farmington State Savings Bank and by it indorsed to plaintiff bank. Certain payments were made upon the notes. Plaintiff brought suit upon the $5,000 and $2,500 notes dated January 23, 1931, and the trial court entered judgment in favor of plaintiff in the sum of $3,565.20 with interest at the rate of six per cent, to January, 1936. Defendant appeals.
Plaintiff contends that the notes involved in this suit are regular upon their face, were legally executed by the proper officers of the board of education and were purchased by plaintiff for value prior to the due date thereof. It is the claim of defendant that the meeting of the board of education on July 22, 1930, held in the absence of its president, was illegal; that the resolution adopted at said meeting’, while it may have permitted the board of education to borrow money after July 22, 1930, did not authorize them to pay the delinquent obligations of July 16,17, and 18, 1930; and that plaintiff bank was not an innocent purchaser for value of notes involved herein.
The meeting held July 22,1930, was a special meeting of the board of education at which time the president of the board was absent, but did on the following day sign the originals of the notes involved in this cause. We think the subsequent action of the board of education in recognizing the notes by renewing the same and making part payment on said notes now estops it from claiming any irregularity in the action taken at said meeting. The claimed irregularity of this meeting is distinguishable from that found in Vreeland v. School District No. 2, Monguagon Twp., 264 Mich. 212. In that case the absent board member did not sign the teacher’s contract at a later time and could not be charged with ratifying any action taken by the board.
In Prudential Ins. Co. v. Dworkin, 266 Mich. 105, the court adopted the following from 22 C. J. p. 1301:
‘' ‘ There is always a presumption that official acts or duties have been properly performed, and in general it is to be presumed that everything done by an officer in connection with the performance of an official act in the line of his duty was legally done, whether prior to the act, such as giving notice, or determining the existence of conditions prescribed as a prerequisite to legal action, or subsequent to such act.’ ”
The next question invites a discussion of the authority granted in the resolution adopted July 22, 1930. The plaintiff claims- that the resolution is broad enough and that the words “for the use of said district” includes authority to borrow funds to pay delinquent obligations. At the time of the special meeting the school district was indebted to the banks in the sum of $38,000, represented by certain notes that were past due. This fact was known to the school board and they also knew that it was their duty to pay or renew the obligations. From the fact that the resolution authorized the borrowing of an amount of money equal to the past due indebtedness and the further fact that on the following day the proper officers of the school board did in their official capacity deliver to the Farmington State Savings Bank notes and cash equal to the amount authorized in the resolution there is some evidence as to the purpose of the resolution. The school board having thereby at a later date paid on the obligations so incurred are now estopped to deny that the resolution authorized borrowing to pay past due obligations.
In American La France & Foamite Industries, Inc., v. Village of Clifford, 267 Mich. 326, we said:
“ ‘The good faith of government should never be less sacred than that of individuals.’ Where the executed contract is neither malum in se nor malum prohibitum, but can only be avoided because of defects in the manner of its execution, the corporation cannot retain the benefits and deny the authority.”
See, also, McGaughan v. West Bloomfield Township, 268 Mich. 553; Jones v. School District No. 3 of Iosco, 110 Mich. 363; Coit v. City of Grand Rapids, 115 Mich. 493.
Defendant next contends that plaintiff is not a holder in due course. Section 9308, 2 Comp. Laws 1929, provides that prima facie every holder is deemed to be a holder in due course and the burden of proving otherwise rests with defendant. There being no showing that plaintiff was not a holder in due course, it follows that the notes falling due January 23,1931, were legal obligations of the school district. The record discloses that there was no irregularity apparent on the face of the notes; no proof submitted of lack of consideration in the purchase of these notes; no notice to plaintiff by defendant of any claimed defect; nor any claim that the notes were not purchased before maturity.
Complaint is also made as to the admission of some testimony. We have examined these claimed errors and find that they do not affect the merits of the case.
We find no reversible error and the judgment of the trial court is affirmed, with costs to plaintiff.
Fead, C. J., and North, Wiest, Butzel, Potter, and Chandler, JJ., concurred. Btjshnell, J., did not sit. | [
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Fead, C. J.
Plaintiff appeals from an order dismissing his bill on the ground of laches.
The bill, filed October 11,1935-, alleges that in 1927 plaintiff deposited notes and mortgages, in value of over $10,000, in the Nunica State Bank for collection and settlement with him; he had receipt from W. E. Slater, then cashier, which, while obscure in form, provided that “all notes collected by the to be credited to Charles A. Evans account;” collections have been made upon the securities continuously from 1927 to the present time; in 1934 he filed claim with defendant receiver for an accounting and his claim was disallowed; it was also disallowed twice by the State banking commissioner and he was advised by the latter that his remedy, if any, was in litigation. The receiver for the bank was appointed in 1933.
Defendant answered that in 1928 plaintiff had filed bill for an accounting against the bank and Slater; the latter had filed sworn answers wholly denying plaintiff’s interest in the securities; portions of the sworn answer of Slater are incorporated in the instant answer; the former suit was dismissed in 1930 under the statute governing actions in which no progress is made within a year; Slater died January 2, 1932; plaintiff has no interest in the securities or proceeds.'
Defendant’s motion for dismissal of the bill, because the claims are barred by the statute of limitations (3 Comp. Laws 1929, §§13976, 13977), was denied December 31, 1935. The motion to dismiss for laches was filed November 12, 1936.
The motion is based upon the claim that all the oral agreements regarding plaintiff’s securities were made with Slater; and that plaintiff’s action in failing to prosecute the former suit for accounting’ and in waiting until after Slater’s death before filing this bill amounted to laches. He invokes the familiar principle that one who waits until the death of a witness has prevented denial of his claim or disclosure of the truth is guilty of laches and may not maintain a suit in chancery.
The principle is well settled but it is not applicable here. The pleadings disclose written evidence of the transactions by way of receipt for the securities and book accounts. There may be more. The pleadings do not set up specifications from which it can be said that the written evidence is controlled, or whether or in what respect it may be affected, by oral agreements between Slater and plaintiff. Slater’s general denial of liability in' his answer in the former case is a mere conclusion. In fine, the pleadings do not demonstrate that Slater’s testimony, if available and favorable to' defendant, would go to plaintiff’s whole case or be determinative of it. It is further to be noted that plaintiff does not rely upon oral agreements with Slater. Because the effect of Slater’s death upon plaintiff’s whole right to recover does not definitely appear from the pleadings, the motion to dismiss was premature and the point of laches must await developments at the hearing.
This makes it unnecessary to pass upon the other contentions, some of which may be affected by conditions at the trial.
Reversed and remanded for hearing, with costs to plaintiff.
North, Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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North, J.
The defendant herein is a Michigan corporation with authorized preferred stock in the amount of $125,000 in shares of the par value of $10 each, and 100,000 shares of no par stock. The Michigan securities commission authorized the sale of 9,770 shares of preferred stock and 39,080 shares of no par stock in units of one share of the preferred stock and four shares of the no par stock at a price of $10 per unit, such authorization being upon certain conditions imposed by the order of the commission. Thereupon the defendant entered into a contract with Norman Berry & Company, a Michigan corporation, doing a brokerage business, whereby the brokerage company was given exclusive authority to sell the stock in accordance with the order of the securities commission. A representative of the brokerage company contacted each of the plaintiffs in these three cases which are combined and submitted as one. It is the claim of the plaintiffs that they turned over to the broker’s agent either cash or stock in other companies which was to be converted into cash and the proceeds thereof were to have been used to purchase a specified number of units of the stock in defendant company. The stock so placed by the respective plaintiffs with the agent of the brokerage company was sold or at least not accounted for; but the purchased units of stock in the defendant company were not delivered by the broker or its agent-to the respective plaintiffs, nor was plaintiffs’ money or property otherwise accounted for. The license of the brokerage corporation to operate as such was revoked and subsequently it went into bankruptcy. In each of these suits the plaintiff seeks recovery from the defendant company for the money or stock delivered to the brokerage agent. In the circuit court, the cases being tried without a jury, each of the plaintiffs had judgment, and defendant has appealed.
The theory upon which plaintiffs recovered is that the brokerage corporation acted as the agent of the defendant company in making the sale of its stock and that defendant as the principal is liable for plaintiffs’ losses. On the other hand the theory of the defense is that the brokerage corporation instead of acting as an agent was acting in the capacity of an independent contractor. This presents the controlling question for review.
At the outset it should be noted that by the terms pf its contract with defendant the brokerage company did not become an underwriter of the stock. The following authorities hold that an underwriter of a corporation’s stock when acting solely as such in promoting the sale of its stock is an independent contractor: 1 Fletcher, Cyclopedia Corporations (Perm. Ed.), § 230; Fraser v. Home Telephone & Telegraph Co., 91 Wash. 253 (157 Pac. 692). But this proposition of law is not at all pertinent in the instant case because Norman Berry & Company did not underwrite the stock. We must look to the contract between the defendant company and the brokerage corporation to determine, in the light of surrounding circumstances, whether the latter acted as the agent of the former or as an independent contractor. We quote the contract in part:
“Whereas, the first party has an authorizéd capital of 12,500 shares of $10 par value seven per cent, preferred stock, and 100,000 shares of no par value common stock * * * and
“Whereas, the first party is desirous of selling, for the purpose of acquiring additional capital funds, 9,770 shares of its remaining authorized but unissued $10 par value seven per cent, preferred stock, together with 39,080 shares of its remaining authorized but unissued no par value common stock * * * and
“Whereas, the second party is a securities dealer and broker * * * and
“Whereas, the first party desires to have the second party undertake the sale of the above described * * * stock of the first party to residents of the State of Michigan only, ■* * *
“The first party (defendant) * * * agrees:
“To and hereby does appoint the second party (the brokerage company) as its sole and exclusive sales agent for the sale to Michigan residents only • of the aforedescribed * * * stock * * * (and) “To pay the second party a commission for the sale of such units of its stock * * *
“The second party agrees:
“To and does hereby accept its appointment as the sole and exclusive sales agent of the first party £or the sale of the aforedescribed * * * stock * * * (and)
“To diligently endeavor to sell the aforedescribed * * * stock * * * and to pay over * * * the net proceeds on the sale of snch * * * stock as may have been sold on the dates specified below.”
Since it conclusively appears that the broker sold or converted the stocks placed in its hands by the respective plaintiffs, as between the plaintiffs and defendant, this case is in the same status as though plaintiffs had placed cash in the broker’s hands for the purchase of stock in defendant corporation.
The terms of the contract in part above quoted and the nature of the transactions contemplated by. the contract, justify the determination of the circuit judge that the broker was merely acting as an agent of defendant, rather than as an independent contractor. Stripped of its details, all the contract provides is that in consideration of a 15 per cent, commission to be paid, the brokerage corporation agrees “to diligently endeavor to sell” the designated stock of defendant company. The relation between the two was not unlike that of a real estate agent who for an agreed commission undertakes to sell real property for the owner. Clearly such an undertaking expressly establishes the relation of principal and agent. The contract between defendant and the broker designates the latter as “sales agent” of the former. As bearing upon the character of the relation between the broker and the defendant corporation it is somewhat important to note testimony which discloses that prior to purchasing stock in the defendant company two of these three plaintiffs went to its plant and there met a Mr. Muirhead, who from the record appears to have been president or vice-president of defendant company, and he rather actively assisted in the prospective sales to these two men. There is no claim that Norman Berry & Company ever held in its own right any stock of the defendant company. Instead the stock of the defendant company was to have been issued by that company to the purchasers secured by Norman Berry & Company upon the order of the escrow depository bank wherein the broker was to deposit 85 per cent, of the purchase price received for the respective sales.
The finding of the circuit judge that Norman Berry & Company was acting as an agent of the defendant rather than an independent contractor, is sustained by this record. No other material questions are noted in appellant’s brief. The 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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Sharpe, J.
William J. Mexico and wife, prior to the happening of the events involved herein, were the owners of a 94.72-acre tract of land in the township of Huron, Wayne county, Michigan; and on April 17, 1917, mortgaged the above premises to the Rockwood State Bank to secure the payment of $4,000. August 18, 1919, Mexico and wife conveyed the above premises to Frank H. Stoflet and wife. On March 30, 1923, Stoflet and wife mortgaged 68.49 acres of the above mentioned premises to the Rock-wood State Bank to secure the payment of $2,200. Upon default of Stoflet and wife to pay the principal and interest of the above described mortgages, the same were foreclosed by advertisement and sold and conveyed to the Rockwood State Bank on August 23, 1929, and September 12, 1929, respectively.
On December 28, 1929, Stoflet and wife mortgaged the 68.49-acre tract to the State Savings Bank of Carleton for the sum of $3,100. On the 21st day of May, 1930, the Rockwood State Bank discharged their mortgages and conveyed to Stoflet and wife the premises described in the mortgage dated April 17, 1917.
On May 22, 1930, Stoflet and wife paid the State Bank of Rockwood $6,399.01 by check on the back of which was the notation “Anton Kaier” and below that “paid by Stoflet.” The record also shows that Anton Kaier loaned this money to Stoflet and wife as agent for plaintiffs and on the same day a mortgage was executed in favor of plaintiffs in the sum of $16,000 upon the above 68.49-acre tract and two other parcels of land containing 35.90 acres. At the time the above mortgage was given no mention was made of the fact that the State Savings Bank of Carleton had a mortgage upon a part of the above described premises.
Plaintiffs filed their bill of complaint to foreclose the last above described mortgage and as additional affirmative relief asked that their mortgage be declared a prior lien npon the premises described in the mortgage dated April 17, 1917. The defendant State Savings Bank- of Carleton filed an answer to the bill of complaint and a cross-bill to foreclose their mortgage claiming said mortgage to be a first and prior lien upon the land above described. The cause came on to be heard upon an order of reference before a circuit court commissioner who made a finding of facts and conclusions of law in favor of the defendant bank. An order was entered confirming-the report of the circuit court commissioner and from which order plaintiffs appeal.
The sole question involved in this cause is the right of plaintiffs to be subrogated to the rights of the Rockwood State Bank in its two mortgages. It is the claim of defendant bank that there was no legal obligation on the part of plaintiff to pay the indebtedness of Stoflet and wife to the Rockwood State Bank. It is conceded by all parties that plaintiffs are not entitled to legal subrogation.
In French v. Grand Beach Co., 239 Mich. 575, we said:
“The doctrine of subrogation rests upon the equitable principle that one who, in order to protect a security held by him, is compelled to pay a debt for which another is primarily liable, is entitled to be substituted in the place of and to be vested with the rights of the person to whom such payment is made, without agreement to that effect. This doctrine is sometimes spoken of as ‘legal subrogation,’ and has long been applied by courts of equity. Stroh v. O’Hearn, 176 Mich. 164, 177. There is also what is known as ‘ conventional subrogation. ’ It arises from an agreement between the debtor and a third person whereby the latter, in consideration that the security of the creditor and all his rights thereunder be vested in him, agrees to make payment of the debt in order to relieve the debtor from a sacrifice of his property due to an enforced sale thereof. It is wholly independent of any interest in the property which the lender may have to protect. It does not, however, inure to a mere volunteer who has no equities which appeal to the conscience of the court. ’ ’
In 25 R. C. L. p. 1324, § 11, it is said:
“While subrogation is founded on principles of equity and benevolence, and may be decreed where no contract exists, yet it will not be decreed in favor of a mere volunteer, who, without any duty, moral or otherwise, pays the debt of another; for such a person can establish no equity, and can obtain the right of substitution by contract only. ’ ’
In Stroh v. O’Hearn, 176 Mich. 164, 177, we said:
“Subrogation is an equitable doctrine depending upon no contract or privity, and proper to apply whenever persons other than mere volunteers pay a debt or demand which in equity and good conscience should have been satisfied by another. It is proper in all cases to allow it where injustice would follow its denial, and in allowing it all injustice should be guarded against so far as possible. We need not g’o afield in other jurisdictions for authority upon this subject; the law is well settled in this State.”
In Dunitz v. Woodford Apartments Co., 236 Mich. 45, 49, we said:
‘ ‘ Ordinarily, subrogation will not in any event be accorded a purely volunteer. Plaintiff had here no interest to protect until he voluntarily, and for surely no benevolent reason, but solely for the purpose of self-aggrandizement, injected himself into the already troubled affairs of those interested in this property. It is clear that one who seeks to be sub rogated must show some ground for equitable intervention. Bond v. Montgomery, 56 Ark. 563 (20 S. W. 525, 35 Am. St. Rep. 119), and Richards v. Cowles, 105 Iowa, 734 (75 N. W. 848).”
The theory of equitable or conventional subrogation is that the junior lienor’s position is left unchanged by the conduct of the party seeking subrogation and that he is not wronged any by permitting subrogation. An examination of the facts involved in this cause in the light of the above rule shows that the total amount of money which Stoflet and wife owed to the Rockwood State Bank on May 22, 1930, was $6,399.01 and that the indebtedness incurred by Stoflet and wife in the transaction with plaintiffs was $16,000. The mortgages formerly held by the Rockwood State Bank covered only 94.72 acres of land while plaintiffs ’ mortgage not only incumbered 68.49 acres of the above mentioned land but also 35.90 acres of land owned by Stoflet and wife in addition thereto. The possibility of realizing on any deficiency judgment or decree granted against Stoflet and wife would be lessened because of plaintiffs’ prior lien. When plaintiffs loaned the money they had no interests to protect. It was done without any agreement or understanding that they were to enjoy the fruits of subrogation. It was voluntarily done upon their part and to grant it would not leave defendant in its former position. A mere volunteer is not entitled to subrogation.
The decree of the lower court is affirmed. Defendants may recover costs.
Fead, C. J., and North, Wiest, Btjshnell, and Chandler, JJ., concurred with Sharpe, J. | [
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North, J.
Plaintiff’s decedent, a pedestrian, was struck while crossing a public highway by an automobile driven by defendant Vern Woodruff and owned by defendant Roland Woodruff. Plaintiff’s decedent died from the injuries received and this suit followed. The issues of defendants’ negligence and the contributory negligence of plaintiff’s decedent were submitted to a jury and there was verdict for the defendants on the ground of decedent’s contributory negligence. Plaintiff has appealed.
The following facts concerning details of the accident are taken from the statement contained in appellant’s brief. The accident happened in the village of Melvin, about 2 o’clock on the morning of August 25, 1935. Driving conditions were normal. Defendant Vern Woodruff was driving in an east erly direction on a pavement 20 feet wide. Another automobile owned and operated by a Mr. Crysler was ahead of the Woodruff car and proceeding in the same direction on its right, hand side of the pavement. Crysler’s car slowed down, and either stopped or had practically stopped at the time of the accident. Plaintiff’s decedent was walking in an easterly direction along the northerly shoulder of this highway. When Yern Woodruff, who is hereinafter referred to as the defendant, was 200 to 250 feet back of the Crysler car he veered to his left for the obvious purpose of passing the car ahead. About this same time plaintiff’s decedent turned to his right and by normal steps started to cross the pavement in a southerly direction. As he did this the Crysler car was directly in front of him and defendant was approaching from the west at a speed of 20 miles per hour and with bright lights burning. The testimony shows that as decedent reached or neared the center line of the pavement he glanced toward the west, jumped back to the north 8 feet by taking 3 to 5 hurried steps; that he was within 2 feet of the north edge of the pavement and was struck by the right central part of the front of defendant’s car. The north shoulder of the highway at this point was 8 or 10 feet wide and was clear.
Special questions were submitted to and answered by the jury. Prom these questions and answers it appears that the jury found the defendant negligent and also found plaintiff’s decedent guilty of contributory negligence. As noted above, the jury accordingly rendered a verdict in favor of defendants. On this appeal plaintiff complains of the failure of the court to give seven of her requests to charge. The second of these requests reads:
“I charge you that if the defendant car was far enough to the west at the time the decedent, Ed mund R. Mullaney, began walking across the pavement, so that an ordinarily prudent person would believe that he had time to cross ahead of the approaching automobile, the decedent, Edmund R, Mullaney, could not therefore be charged with contributory negligence.”
Obviously the trial court was justified in declining to give this request as presented. The question is not whether the request is an accurate statement of the law, but instead is it applicable to the theories upon which the instant case was tried and also whether giving the request as prepared would have been misleading to the jury and therefore prejudicial. The theory of contributory negligence upon which defendants relied was not that plaintiff’s decedent was guilty of contributory negligence in attempting to walk across the pavement; but instead that his contributory negligence consisted suddenly in retracing’ his steps from a point near the center of the pavement and by so doing negligently placing himself in the path of defendant’s approaching car. Under the circumstances the request was not applicable to the issue which the jury was to determine. And, further, giving the request as drafted would probably have been misleading and prejudicial. Its denial was proper.
Another of appellant’s requests to charge embodied a statement of the law to the effect that since plaintiff’s decedent died as a result of the accident, he was presumed to have exercised due care. There were several eyewitnesses to this accident, hence, the obvious impropriety of charging the jury that the presumption of due care prevailed.
The remaining requests of appellant to charge have been considered and we find each of them was properly denied because of its inapplicability to the issues of fact submitted to the jury or because of an inaccurate statement of the law embodied in such request.
Appellant also complains that there was error in several particulars in the charge of the court as given. We have reviewed the charge of the court and fail to find that in any of the particulars of which appellant complains there was prejudicial error. A number of these complaints are based upon the reference of the trial court to plaintiff’s decedent, at the time he was at or near the center line of the highway, being “out of danger” or in “a place of comparative safety at the center of the pavement.” These expressions were justified by testimony given in the case, and reference to the situation as portrayed by the testimony was necessary in the fair presentation of the law applicable' to defendants’ theory of contributory negligence. This was accomplished by the court without placing undue emphasis upon the testimony or the claim of defendants that had plaintiff’s decedent remained in his position near the center of the highway instead of suddenly going backward to a point about two feet from the northern edge of the pavement the accident would not have happened. Whether defendant was justified in assuming he could pass to the north of plaintiff’s decedent without striking him, or whether defendant was guilty of negligence • in not having his automobile under better control in view of all the surrounding circumstances presented an issue of fact for the jury, and on this issue the •jury found against defendants. The jury also found, and this was clearly an issue of fact, that plaintiff’s decedent in suddenly attempting to retrace his steps was guilty of contributory negligence. This was the controlling issue in the case and the determination of the jury is abundantly sustained by the testimony. The record convincingly discloses that the jury understood the issues submitted and intelligently passed upon them.
One of plaintiff’s counsel was prosecuting attorney of Sanilac county where the accident occurred. This attorney was called as a witness by defendant and subjected to cross-examination as to his official investigation of this accident. We think the practice resorted to was not proper in this case because it is a fair inference from this record that defendant’s counsel was seeking thereby to get before the jury hearsay testimony concerning matters which the prosecuting attorney, through his official investigation, had learned about the accident. Likewise what the prosecuting attorney did or failed to do in making an investigation of the accident was wholly incompetent and immaterial on the trial of the issues in this case. Notwithstanding the improper procedure in this phase of the trial, we are satisfied that the rights of plaintiff were not prejudiced. Under the circumstances the trial judge was justified in holding that this procedure was not a sufficient reason for granting plaintiff’s motion for a new trial, nor does it justify reversal on appeal to this court.
We have considered the reasons assigned in support of plaintiff’s motion for a new trial, which was denied by the circuit judge, and also other questions raised on this appeal; but in none of them do we find a justification for holding that plaintiff did not have a fair trial in the circuit court, or for vacating the verdict and judgment for defendants based on the jury’s finding that plaintiff’s decedent was guilty of contributory negligence. The judgment entered in the circuit court is affirmed, with costs to appellees.
Try.at>, C. J., and Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Bushnell, J.
This is an appeal from a directed verdict in favor of defendant, Consumers Power Company. Plaintiff, a minor, was injured in a highway collision between a car driven by his father in which he was riding and one owned by the defendant company, which was being driven by defendant Russell O’Neil, its employee. The action against Consumers Power Company is based upon 1 Comp. Laws 1929, § 1618. This section reads in part:
“The owner (of a motor vehicle) shall not be liable, however, unless said motor vehicle is being driven with his or her express or implied consent or knowledge.”
Since none of the questions raised by this appeal involves the nature of the collision, a further recital of its details is unnecessary for decision.
After the impact, Mr. Sheathelm, who was unable to extricate his wife from his car, got out as quickly as he could and ran up to where the other car had stopped. O’Neil was sitting on the ground behind the other car. Sheathelm testified:
“I asked him whether he could help me. I said, how come you drove so fast? * * * He didn’t say much. I asked him why he was over, and so much off, and come off the road; he said he was shooting trouble for the Consumers Power Company. ’ ’
O’Neil had been employed by Consumers Power Company for about 11 years in its forestry department. Among his duties were supervising line clearance work, tree trimming, landscape designing .and some reforestation. He was assistant to George Blair, forester for the power company.
It is the claim of plaintiff that O’Neil’s responses to Sheathelm’s questions are admissible under the res gestee rule. The trial court excluded the statements.
In response to the court’s observation that the declaration of an agent was not competent proof of the agency, plaintiff’s counsel said:
“I was calling your honor’s attention to the fact that we are not relying upon this declaration to prove the fact of the employment of this man by the Consumers Power Company. That will be proven in due order by other testimony. This declaration goes to what he was doing at the time and I think practically nothing more.”
We find, however, in plaintiff’s brief, the argument that:
“This was evidence of his employment by that company and of its consent to the use of the Buick in its interest and on its business. The night was stormy. Its lines were nearby. It was clearly admissible as part of the res gestes.”
We have recently repeated the general rule for determining what evidence is admissible as res gestee testimony in Ayling v. City of Detroit, 275 Mich. 338. At page 342 of that opinion, we quoted, from Rogers v. Railway Co., 187 Mich. 490, the following which was cited with approval in Stone v. Sinclair Refining Co., 225 Mich. 344, 350:
- “ ‘It is well established by the authorities that the only conditions upon which such statements will be allowed in evidence are (1) that there is a startling occasion, startling enough to produce nervous excitement, a.nd render the utterance spontaneous and unreflecting; (2) that the statement must have been made before there has been time to contrive and misrepresent; and (3) the statement must relate to the circumstances of the occurrence pre ceding it. 3 Wigmore on Evidence (1st Ed.), § 1750 et seq.’ ”
¥e also quoted Bernard v. Grand Rapids Paper Box Co., 170 Mich. 238 (42 L. R. A. [N. S.] 930), where we said:
“ ‘It has been settled, upon the great weight of the authorities, that, to make such statements admissible as res gestee, they must be spontaneous, made at or near the time and place of the accident, and so closely connected with the occurrence as to be evoked and prompted by it.’ ”
O’Neil’s statement that he was “shooting trouble for the Consumers Power Company,” was made in answer to a direct question put to him by Sheathelm. The reply lacked the essential element of spontaneity, and it cannot be said that the statement was made without opportunity for reflection. Several other questions had been asked of O’Neil before he answered why he was “over and off the road.” The apprehension of a query concerning a happening and the formation of a reply to the query is a mental process and the resulting answer or statement emanates from the mental process and is not the spontaneous outcome of the happening itself. According to plaintiff’s own testimony, O’Neil’s statement resulted only from and was in answer to a direct question put to him. Bernard v. Grand Rapids Paper Box Co., supra.
As was said in the Ayling Case, supra, the statements were not spontaneous and therefore were not admissible in evidence as res gestee testimony.
At the close of the proofs, the trial court granted a motion for a directed verdict as to defendant power company on the ground that there was no evidence that the car driven by O’Neil was used with the company’s knowledge ox consent. The jury returned a verdict for $3,500 against O’Neil upon which judgment was entered. Subsequently a new trial was granted as to defendant O’Neil from which order no appeal has been taken.
In the appeal from the directed verdict in favor of the power company, the evidence offered by plaintiff must be considered in the light most favorable to him and if, from a consideration of that evidence and the reasonable inferences and deductions that may be drawn therefrom, a question of fact is presented, the cause must be remanded for determination by the jury, if not, the judgment should be affirmed. Holgate v. Chrysler Corp., 279 Mich. 24, 27.
In addition to the testimony of O’Neil, defendant power company called O’Neil’s immediate superior, Blair, and A. E. Kriegsman, who, as assistant to the vice-president of defendant company, had general supervision of all of its automobile equipment. O’Neil testified that his authority to use the car was confined to company business, and that he was violating the company’s regulations by using- its car for his personal affairs. Blair and Kriegsman testified to the existence of a rule of the company and the practice of the company prohibiting the use of its cars for anything but its business.
Defendants argue that, upon the authority of Wehling v. Linder, 248 Mich. 241, and Anderson v. Schust Co., 262 Mich. 236, the directed verdict should be affirmed. We said in the Wehling Case, supra:
“One who is driving a motor vehicle incident to the owner’s business is presumed to be duly authorized to so drive the vehicle; but it is the established law in this State that such a presumption prevails in favor of the litigant relying thereon only so long as that phase of the case is not covered by testimony to the contrary. Gillett v. Michigan United Traction Co., 205 Mich. 410; Union Trust Co. v. American Commercial Car Co., 219. Mich. 557; Depue v. Schwarz, 222 Mich. 308; and Noonan v. Volek, 246 Mich. 377. If the testimony opposed to the presumption is clear, positive and uncontradicted, it becomes the duty of the trial judge to direct a verdict if the issue is a controlling one in the case. Union Trust Co. v. American Commercial Car Co., supra. ’ ’
Plaintiff, however, contends that the testimony of defendant’s garage superintendent shows that he did not have any knowledge of a company rule against the personal use of cars; therefore, if such rule had ever been made, published or enforced, the superintendent would have known about it and would have disclosed it in his lengthy cross-examination. This witness was not questioned about the existence of such a rule; nor does the record contain any testimony from which a reasonable inference may be drawn that the defendant company had any knowledge of or ever consented to the use of their cars for the private pleasure of their employees. Unrebutted testimony tending to show the existence and enforcement of a rule cannot be used as a basis for the inference that no rule existed or that it was not enforced.
“It is the peculiar province of juries to draw inferences of fact; hut they must draw them from facts which are admitted or proven upon the trial, and they must be consistent with the admitted or proven facts from which they are drawn.” Bowsher v. Railway Co., 174 Mich. 339, 344.
In Pennsylvania R. Co. v. Chamberlain, 288 U. S. 333, 340 (53 Sup. Ct. 391), the court passed upon a similar question in an action against the railroad company for the negligent death of a brakeman. In that case, it was said:
“And the desired inference is precluded for the further reason that respondent’s right of recovery depends upon the existence of a particular fact which must be inferred from proven facts, and this is not permissible in the face of the positive and otherwise uncontradicted testimony of unimpeached witnesses consistent with the facts actually proved, from which testimony it affirmatively appears that the fact sought to be inferred did not exist.”
That court in adopting the language from another case, said:
“In George v. Railroad Co., 213 Mo. App. 668 (251 S. W. 729) ‘It is well settled that where plaintiff’s case is based upon an inference or inferences, that the case must fail upon proof of undisputed facts inconsistent with such inferences.’ ”
O’Neil stopped work at noon on the day of the accident and obtained the Buick car from the company’s garage around 4 o’clock in the afternoon, attended to a few personal errands, and left his home about 9:30 p. m. to drive a friend to the nearby town of Leslie to call on some mutual friends. It was then raining and the accident happened between Jackson and Leslie after 11 p. m.
To infer that the power company, in its corporate capacity, had knowledge of or consented to the private use of its cars is not a reasonable inference' from the proven facts in this record.
Further to infer that the company had knowledge of or consented to its garage employees permitting other employees to use cars for private purposes, it must first be -inferred that the garage employees actually did this. Thus the inference to be imputed to the company is based upon another inference; this is not permissible.
Plaintiff’s questions regarding separate verdicts and judgments, which were thereafter corrected by the entry of a single judgment, are immaterial.
Defendant O’Neil was using the car without either the express or implied consent of his employer and the trial court was correct in holding* that under the statute and authorities quoted and cited, liability cannot attach to the Consumers Power Company.
The judgment is affirmed, with costs to appellees.
Fead, C. J., and North, Buizel, Sharpe, Potter, and Chandler, JJ., concurred with Btjshnell, J. Wiest, J. concurred in the result. | [
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Potter,, J.
Plaintiff brought ejectment against defendants. There was judgment for defendants and plaintiff appeals.
Plaintiff, claiming title to lot 2 and lot 3 of section 19, town 29 north, range 2 west, Otsego county, Michigan, as grantee of the T. E. Douglas Company, a Michigan corporation, brought ejectment against defendants who claimed title through two State tax deeds and a notice of right to reconveyance.
The T. E. Douglas Company was a Michigan corporation organized in 1904 for the statutory period of 30 years for the purpose of manufacturing, buying and selling of logs, timber and forest products, and carrying on a mercantile business in connection therewith. It owned much cut over land in Crawford and Otsego counties. In 1930, the company iVas not engaged in active business. The three stockholders prior to the transaction herein involved were Thomas E. Douglas and Edward S. Houghton, both of whom are deceased, and Marius Hanson who had made an assignment of all of his property for the benefit of his creditors and who died prior to the institution of this suit. The stock of Douglas and Houghton in the corporation was assigned by the probate court to their respective heirs and stock in the company issued to them.
The heirs of Douglas and Houghton, together with Marius Hanson gave proxies to William B. Henry, of Bay City, to represent them at the annual meeting of the corporation held August 30, 1933, to elect a board of directors and to transact any business that might properly come before the meeting, and for the conveyance of all of its property to a trustee. William B. Henry, G-. Barth and A. Brockmiller were elected directors. A proposed trust agreement with John Bruun, trustee, was presented at this meeting and approved by the stockholders and the board of directors was authorized to transfer all of the assets of the corporation to John Bruun, as trustee. Officers were elected by this board of directors on the same day. June 25, 1934, the directors authorized the officers to enter into the trust agreement with Bruun which had been previously approved at the meeting of the stockholders, and the corporate officers thereupon conveyed the assets of the corporation, including some 3,900 acres of land, to Bruun, as trustee, and plaintiff Bruun executed a declaration of trust. Such trust was created for the purpose of liquidating the assets of the corporation for the benefit of the stockholders. The T. E. Douglas Company filed its last annual report in August, 1930. The secretary of State granted an extension of time for report due in 1931 to January 20, 1932.
Defendants obtained two tax deeds from the State, both dated June 20,1933, for the premises in suit for the taxes of 1929. Both descriptions were combined ■ in the notice of reconveyance and the return shows it was served upon Marius Hanson individually August 24, 1933. November 2, 1934, plaintiff deposited a check with the county clerk of Otsego county for the redemption of the premises in question and notified defendants he desired to redeem.
The trial court held that, although the notice to re-convey was defective, plaintiff had no standing in court because the powers of the T. E. Douglas Company were suspended and it could not elect officers and directors for the purpose of winding up the affairs of the corporation, and declared the deed void which had been executed by the T. E. Douglas Company to Bruun.
The trial court correctly held that where separate descriptions of property sold separately were included in one tax notice, it must appear from such notice how much was paid for each separate description so the individual upon whom the notice was served could determine therefrom the amount he must pay in order to redeem from any description. The notice served did not comply with the rule and was insufficient and fatally defective. Ensley v. Coolbaugh, 160 Mich. 299; G. F. Sanborn Co. v. Johnson, 148 Mich. 405; Jackson v. Mason, 143 Mich. 355. This notice of reconveyance being insufficient, defendants acquired no title to the premises.
Plaintiff in ejectment must recover, if at all, on the strength of his own title and not because of the weakness or want of title of defendants. Bird v. Stimson, 197 Mich. 582; Kushler v. Weber, 182 Mich. 224; Powell v. Pierce, 168 Mich. 427; Webber v. Pere Marquette Boom Co., 62 Mich. 626; Sanborn v. Loud, 150 Mich. 154 (121 Am. St. Rep. 614).
The trial court held the president and secretary of the T. E. Douglas Company had no authority to execute the quitclaim deed to plaintiff of July 9, 1934 ; that the stockholders of the T. E. Douglas Company had no authority to elect officers and directors, for the purpose of winding up its affairs by transferring its assets, at the time when the corporation was de linquent in filing annual reports; and, therefore, plaintiff had no title upon which he could maintain an action of ejectment against defendants. This is the only question of importance in the case.
There is a plain distinction between the franchise to be a corporation and the franchise to do business as a corporation. The franchise to be a corporation belongs to the stockholders — and the franchise to do business as a corporation belongs to the corporation. The general or corporate franchise belonging to the corporators must not be confounded with special or secondary franchises which belong to the corporation. Union Steam Pump Sales Co. v. Secretary of State, 216 Mich. 261; Joyce on Franchises, § 38; 2 Fletcher on Corporations (1st Ed.), p. 2109; 3 Thompson on Corporations (2d Ed.), § 2864; 14 C. J. pp. 160, 161.
The primary franchise of a corporation, the right and privilege to be a corporation, vests in the indi-. viduals who compose the corporation. This right granted by the State by general law upon certain conditions, express or implied, constitutes, when accepted, a contract between the corporation, or the corporators or members, and the State.
“The charter of a corporation, whether it is created by a special act or formed under a general corporation law, is a contract between the corporation, or the corporators or members, and the State. It is a contract between the State and the corporation, between the corporation and the stockholders, and between the stockholders and the State.” 14 C. J. pp. 161, 162.
As said in People, ex rel. Attorney General, v. Railroad Co., 145 Mich. 140, 147 :
“The defendant’s charter is a contract. It is said by defendant’s counsel that it was not a contract inter partes, but in the nature of a deed poll, and is said to be a contract'created by law. What seems to us a preferable statement is that the law presumes assent to the terms of a contract contained in a deed poll from its acceptance by the grantee. The law does not in such case impose a contract upon the party, but by the acceptance of a deed poll the grantee becomes an assenting party to its terms and the contract is an express one.”
This contract between the corporation and the State may not be impaired by subsequently enacted statutes in the absence of an express reservation so to do. This is unimportant here because by Const. 1908, art. 12, § 1, it is provided:
“All laws heretofore or hereafter passed by the legislature for the' formation of or conferring rights, privileges or franchises upon corporations and all rights, privileges or franchises conferred by such laws may be amended, altered, repealed or abrogated. ’ ’
Act No. 327, § 91, Pub. Acts 1931, provides that if any profit corporation shall for two consecutive years neglect or refuse to file its annual report or pay its corporation fees, the charter of such corporation shall be absolutely void without any judicial proceeding whatsoever. And such corporation shall be wound up in any manner provided by this act, unless the secretary of State shall, for good cause shown, extend the time for the filing of such report, or the payment of such fee, as the case may be.
The corporation in question failed for two consecutive years to file its report and to pay its franchise fee. The franchise fee for 1930 was not paid on August 31, 1931, or thereafter, and on August 30, 1933, the day before the expiration of the two years, the corporate meeting was held at which directors of the corporation were elected and at which corporate officers were elected and the transfer of the property to plaintiff authorized.
Act No. 327, § 87, Pub. Acts 1931, provides:
“If any corporation neglects or refuses to make and file the reports and/or pay any fees required by this act within the time herein specified, and shall continue in default for 10 days thereafter, its corporate potvers shall he suspended thereafter, until it shall file such report, and it shall not maintain any action or suit in any court of this State upon any contract entered into during the time of such default.”
By Act No. 327, § 87, Pub. Acts 19'31, the corporate powers of the corporation were suspended. This did not dissolve the corporation. It withdrew from it the power granted by the State to do business. The corporation was shorn of its franchise to do business, its secondary franchise. But the corporation was not dissolved. The franchise to be a corporation was not suspended. The powers of the stockholders were not affected. The charter of the corporation and the corporate organization still subsisted. It is only when the corporation, or its officers or agents, neglect for two consecutive years to file its annual report or pay its corporation fees that the corporate charter becomes void and the corporation defunct. Act No. 327, § 91, Pub. Acts 1931. Even after the corporation is dissolved, it still continues a body corporate for three years for the purpose of administering its estate, disposing of and conveying its property and closing its business.
Act No. 327, § 75, Pub. Acts 1931, provides:
“Any corporation whose charter expires by limitation, or which corporation is otherwise dissolved, shall nevertheless be continued a body corporate for, the term of three years from such expiration or dis solution for the purpose of prosecuting and defending suits by or against it, and of enabling it to settle and close its business, to dispose of and convey its property, and to divide its assets but not for the purpose of continuing the business for which such corporation shall have been established.”
"What powers may a private corporation for profit exercise during the three years immediately subsequent to its dissolution? There can be no question that by the express terms of the statute, it remains a body corporate — that is, a corporation legally existing, 13 C. J. p. 1263, for certain specific purposes, vis.: for the purpose of prosecuting and defending suits by or against it, and of enabling it to settle and close its business, to dispose of and convey its property, and to divide its assets but not for the purpose of continuing in business.
There is no provision in the statutes providing for the election of officers of a corporation during this three-year period, but it is expressly authorized to settle and close its business, dispose of and convey its property, and divide its assets. The corporation is empowered to continue as such for the purpose of winding up its affairs. This three-year period for liquidating and winding up its affairs was provided to enable the corporation to function as such for the full period of its corporate existence. As said in Ruggles v. Buckley & Douglas Limber Co., 210 Mich. 58, 65:
“The board was under no obligation to anticipate the expiration of its corporate existence by making preparations for its dissolution. Under the statute (3 Comp. Laws 1929, § 11335), it may continue as a body corporate for the term of three years thereafter, during which time its affairs must be settled. The purpose of this section was well stated in Bewick v. Alpena Harbor Improvement Co., 39 Mich. 700:
“ ‘The object of this clause was not to limit, but to enlarge the corporate privileges, so that corporations whose existence for general purposes was nearing its end might enjoy the advantage of doing general business during the whole charter period, instead of being compelled to begin winding up their affairs before it ended.’ ”
Such corporation during this period has full power and authority to do everything requisite and necessary to wind up its affairs in a legal and orderly manner and to dispose of and convey its property. The dissolution of a corporation at common law entails a loss to corporate property and, to avoid this, the statute was passed.
A corporation belongs to its stockholders. The directors and officers of a corporation have no title to its property. They are mere agents or trustees for the stockholders to perform corporate acts. Rossi v. Caire, 174 Cal. 74 (161 Pac. 1161). A corporation is in a sense1 a legal fiction. Chicago & Grand Trunk R. Co. v. Miller, 91 Mich. 166. It was said by Chief Justice Marshall to be “an artificial being, invisible, intangible, and existing only in contemplation of law.” Trustees of Dartmouth College v. Woodward, 4 Wheat. (17 U. S.) 518, 636., Regardless of the accuracy of this definition, it is obvious a corporation may act only through its officers and agents and no express statutory provision is necessary to authorize the stockholders of a corporation to elect officers to transact, .the business necessary to wind up its affairs, dispose of and convey its property, and divide its assets. That power is implied from the very nature of a corporation, from corporate existence itself. The statute extending corporate existence for three years, requiring the disposition and conveyance of corporate property, and the making of corporate re ports, necessarily implies the power in the corporation by its proper officers and agents to do and perform the necessary acts to carry out the terms of the statute.
“A corporation possesses implied power to elect directors and other suitable officers and agents to direct and govern its affairs and to conduct its business.” 14A C. J. p. 49.
“Where the act is silent, and there is no prohibition, the power inheres in the corporation to hold an election. It is a necessity of its corporate existence, and is among the implied powers granted. This is familiar law.” Wright v. Commonwealth, 109 Pa. 560 (1 Atl. 794), citing 2 Dillon on Corporations, p. 768; Angell & Ames on Corporations, § 124; People v. Runkel, 9 John. (N. Y.) 147, 157.
This was the rule of the common law. The power of election was incident to a corporation, and the power to elect officers within a certain time does not take away the power implied as incident to the existence of the corporation. Rolle’s Abridgment, p. 514.
“The election of directors and other suitable officers or agents, for the direction and government of the affairs of the corporation, and the- conduct of its business through the agency of such officers, pertain to the condition and nature of aggregate corporate bodies.” Hughes v. Parker, 20 N. H. 58, 71.
• The legality of the election of corporate officers cannot be brought collaterally in question, but proceedings must be instituted for the express purpose of trying and evicting them if not properly entitled to the offices which they have assumed to exercise. Hughes v. Parker, supra.
See, also, Hurlbut v. Marshall, 62 Wis. 590 (22 N. W. 852).
Act No. 327, § 87, Pub. Acts 1931, suspends the corporate powers of the corporation, but it does not affect its franchise to be a corporation. The franchise to be a corporation becomes absolutely void without any judicial proceeding whatever only when the corporation for two consecutive years fails to file its annual report and to pay its franchise fees in accordance with section 91 of the act. And, even after the expiration of that time, it has full power and authority to do and perform every act requisite and necessary to be done to wind up the affairs of the corporation. Turney v. Morrissey, 22 Cal. App. 271 (134 Pac. 335); Boyd v. Hankinson, 34 C. C. A. 197 (92 Fed. 49); Rossi v. Caire, supra; Welsh v. Steinbaugh, 64 Col. 177 (171 Pac. 62); Hanan v. Sage, 58 Fed. 651.
In Folger v. Chase, 18 Pick. (35 Mass.) 63, it is said of a statute authorizing corporations to wind up their affairs after the expiration of their corporate charters:
‘ ‘ This is a just and wise remedial law, and ought to be liberally expounded. By the principles of the common law, upon the civil death of a corporation, all its real estate remaining unsold, reverts back to the original grantor and his heirs; and the debts due to and from the corporation are extinguished. The object of the statute was effectually to guard against the inevitable consequences of this rule of the common law.”
The corporation, after the forfeiture of its charter and incidental with the proceedings to wind up its affairs, had authority to convey all of its property to a trustee, in trust, to be distributed among its shareholders with a view to winding up its concerns. Hanan v. Sage, supra.
The corporation did not cease to exist upon its charter becoming absolutely void in accordance with the provisions of Act No. 327, § 91, Pub. Acts 1931, because, by the provisions of section 75 of that act, it could continue to be a body corporate for the term of three years after such dissolution for the purpose of enabling it to close up its business, though it existed only for the purpose of winding up its corporate business and closing up its concerns. But, to do this, it had full control over all its property, and could dispose of it for the purposes indicated in the statute. Hanan v. Sage, supra. This was the rule recognized in Rossi v. Caire, supra; Turney v. Morrissey, supra; Boyd v. Hankinson, supra; and by Grand Rapids Trust Co. v. Carpenter, 229 Mich. 582.
We think the trial court erred in holding the corporation could not elect officers during the period its corporate powers were suspended. The right to elect directors of a corporation was vested by the corporate charter in the stockholders or members of. the corporation. That charter remained in full force and effect so far as it conferred the franchise to be a corporation. The election of officers of the corporation may not be here inquired into, though at that time Marius Hanson had made an assignment of his property for the benefit of creditors. The trust creatéd by the directors of the corporation, of which plaintiff was the trustee, did not constitute a corporation.
Judgment reversed, with costs, and case remanded with instructions to enter judgment for plaintiff.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Sharpe, and Chandler, JJ., concurred.' | [
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Long, J.
Bill was filed in this cause to foreclose the mortgage mentioned in Gates v. Cornett, 72 Mich. 420, 436. The mortgage was given by Gates, and the other defendants are made parties as subsequent incumbrancers. Decree of foreclosure was made in the court below, but the lien held by the two Blairs and Wilson was held to have priority over the mortgage. The complainant is assignee of the mortgage from Cornett, Gates alone appeals.
It is contended by his counsel that the court below erred (1) in including in the mortgage lien interest on the mortgage from its date; (2) by providing in the decree that, in case of any deficiency upon sale, Gates should pay the same.
The mortgage is in the ordinary form, and is accompanied by the note of Gates. Counsel for defendant Gates base their contention upon the ruling of this Court in Gates v. Cornett, supra, and claim that this Court so changed the form of the security that it left a lien under the decree with interest from date of decree only, and also relieved Gates from any personal liability for deficiency. It was said in that case:
“We think the benefits received by the complainant on account of the improvements represented by the notes and mortgages set up in the bill of complaint, including the money loaned by defendant to complainant to pay taxes, are equivalent to the note and mortgage dated December 18, 1884, namely, $5,534.82; and this mortgage may stand as a valid security for that amount, but .to draw interest only at the rate of 6 per cent., the now legal fate of interest, from date.”
It will be seen from this statement that the only change made in the mortgage was in the rate of interest. No other change was made, or intended to be made, in the mortgage, and it was expressly stated that it should draw interest from date. It was not intended to relieve" Mr. Gates from his obligation on the note for any deficiency that might arise upon the sale. By the decree in that case, the form or character of the security was not changed. The recovery of the amount was not by an enforcement of the decree of this Court, but by proceedings under the mortgage and note. In the trial of this case, the court below very properly held that the interest was payable on the mortgage from date, and that the defendant Gates was- personally liable for any deficiency.
In this Court, counsel for complainant attempts to raise the question that the court below was in error in giving, the lien of the defendants Blair and Wilson priority over the complainant’s mortgage. The complainant took no appeal, and it needs no citation of authority to show that he cannot be heard on that question here.
The decree of the court below is' affirmed.
The other Justices concurred. | [
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Chandler, J.
On May 4, 1936, the city of Detroit filed a petition in the circuit court for the county of Wayne pursuant to the provisions of Act No 149, Pub. Acts 1911, as amended by Act No. 37, Pub. Acts 1925 (1 Comp. Laws 1929, § 3763 et seq.), "to acquire the right to take property for the use or benefit of the public without the consent of the owners for a public improvement or for the purpose of its incorporation or for the public purposes within the scope of its powers (department of public works site, sewage disposal and for municipalpublic utility conduits and tunnels for sewer purposes).”
Appellants were the owners of a certain parcel of unoccupied land, consisting of 57 acres hounded on the easterly end by Jefferson avenue, on its southerly side by the Biver Bouge, and on its westerly and northerly sides by the main line of the Michigan Central Bailroad and the Delta spur servicing Zug island and nearby industries, which, together with other lands, was desired by the city for the proposed improvement. A jury impaneled for the purpose of determining the necessity for the taking of said property and for determining the compensation to be paid therefor, found that the improvement was a public necessity and that it was necessary for this purpose to take of the land owned by appellants approximately 47 acres and awarded appellants a substantial amount as compensation for such taking. The record discloses a compliance with the constitutional and statutory requirements for bringing the parties before the court for the determination of the necessity for such proposed improvement, -the condemnation of private property necessary therefor, and the compensation to be awarded the owners of the property to be taken for such proposed improvement.
On June 23, 1936, appellants, by their attorney, filed notice of their appearance in said proceedings. On July 3, 1936, an order issued to summon freeholders to determine the necessity for the improvement and the taking' of appellants’ and other private property therefor, and the compensation to be awarded. On July 17th, a jury was struck, venire issued returnable August 4th, on which date a jury of 14 was impaneled, who, after being duly sworn, proceeded to view the premises and later proceeded to a trial of the matters involved in these proceedings. The calendar entries and the record reveal that appellants were represented by their attorney in these preliminary proceedings. It is important to note at this time that instead of a jury of 12 being impaneled, as is contended by appellants should have been done, that a jury of 14 was impaneled, and further that the impaneling of that number was without opposition on the part of any of the interested parties, including appellants, and that 14 were impaneled in view of the fact that it was at that time contemplated that the proceedings to be had might occupy a period of several months with the possibility that during such hearing one or more of the jurors might be disqualified or eliminated by disease or death from being able to deliberate at the conclusion of the hearing upon the issues involved. As a matter of fact the taking of testimony and other matters involved, including the deliberations of the jury continued from August 5 to December. 24, 1936. It was intended that 14 qualified jurors should view the premises, hear the testimony, and that at the conclusion of the hearing two of said jurors should be withdrawn as provided by Act No. 93, Pub. Acts 1931, and that 12 of the jurors should deliberate for the purpose of determining the necessity of the proposed improvement, the necessity for the taking of private property therefor and the amount of the award which should be made to the property owners as compensation for the property necessarily taken to bring about the completion of the improvement contemplated by the initiation of the condemnation proceedings. Counsel for appellants admitted before this .court, that the 14- jurors impaneled and sworn were freeholders of the city of Detroit, that at. the time of the impaneling and swearing of 14 jurors for said hearing by order of the court, with the further order that but 12 of said jurors should participate in the deliberations, neither appellants nor any of the other parties whose property was proposed to be taken interposed any objection whatsoever, although the court stated at the time that he would impanel 14 jurors, his reason being because of prior experience in which one or more jurors had, during protracted hearings, become disqualified or eliminated by disease or death, resulting in a mistrial and requiring the impaneling of another jury at large expense and great inconvenience to all parties concerned.
We, therefore, hold that the action of Judge Moynihan in the impaneling ■ of 14 jurors instead of 12 under these circumstances was not only justified by Act No. 93, Pub. Acts 1931, but was commendable regardless of said statutory provision in view of the fact that it was well known that the proceedings then pending would be both protracted and expensive, and that all parties interested, either by consent in open court, or by silence, acquiesced in this procedure.
At the conclusion of the hearing of testimony on October 20th the names of the two jurors were withdrawn by lot, leaving 12 qualified jurors to deliberate upon the testimony taken, determine the necessity of the proposed improvement, the necessity of taking appellants ’ and other private property therefor, and the compensation to be awarded for the taking of private property for such improvement. These deliberations continued until December 24, 1936, at which time said jury found the proposed improvement a public necessity, and that it was necessary to take the appellants’ and other private property for such improvement, and made substantial awards compensatory for such taking.
A review of. the proceedings in this case and the testimony taken therein is convincing to this court that there was ample testimony to justify the find ing’ of the jury of the necessity of the proposed improvement, the necessity of the taking’ of private property, including’ appellants’, therefor, and that the award to appellants was reasonable. Under these circumstances this court should not and will not substitute its opinion for that of the jury who heard all of the testimony, viewed the premises and in performance of their sworn duty as jurors rendered a verdict in accordance with their judgment.
Appellants further contend that the conduct of counsel for appellee who conducted the hearing was prejudicial to appellants’ interest. A review of the entire record fails to disclose any conduct on the part of the city’s representative that was unprofessional, unethical, or could have any tendency whatever to be prejudicial to the rights or interests of any parties concerned in this proceeding. In fact the record discloses that the conduct of all counsel participating was most exemplary.
Another question raised by counsel for appellants has to do with the competency of jurors, especially with respect to three jurors who sat on election hoards during the primary election day which occurred during the pendency of the proceedings and received the usual compensation awarded to those who sit on election hoards during primary elections. Counsel contends that these three jurors were employees of the city and by reason of the services rendered as members of the election hoard were disqualified, and that the verdict rendered should be set aside for this reason. • The record does not disclose nor give grounds for inference that at the time of the examination of these jurors on their voir dire by counsel for appellants that they were members of the election board in their respective precincts. All that appears relative to this sitúa tion occurred on Friday, September 11, 1936, when the court propounded this question:
“How many of you jurors are on election boards?
‘ ‘ Three of you. Well, I suppose you want to work on the election boards ?
“Mr. Atkinson: Sure it is $12 for each of them.
“The Court: That will be Tuesday, well, I will excuse this jury then until next Thursday. You gentlemen go to work on your law and get it all briefed. Then I will try and get some time to listen to your argument on the law. ’ ’
The calendar entries from the record disclose the following*: September 11. Trial in progress; September 17. Trial in progress; October 1. Cause adjourned to Wednesday, October 7, 1936; October 12. Trial in progress.
On October 7, 1936, counsel for appellants stated:
“At this time I move for a mistrial of this matter for the reason that three of the jurors on this jury are employees of the city election commission, and I wish to call your honor’s attention to certain information in connection with it. The facts of' this employment of these, men by the city came to our attention just before the primaries when you asked if there were any members of the jury on the panel and three of them indicated that, that is the first information we had, they had not given this information on the voir dire.”
This statement by counsel could refer to none othj3r..but the following* question-which was asked of alb,of the jurors by him collectively: “Are any of yon?, or your relatives employed in any department of the. city, county, the State or Federal government at this time?” One juror -replied that he, had a brother who was a clerk in Judge Webster’s court. . This inquiry was made at the time of the selection of the jury on July 17th. We find no sup port for the claim that at the time of the voir dire examination of these jurors that they were members of an election board, but even if they were, they were not employees of the city or any department thereof. Evidently at some time prior to the primary election they were designated by the election commissioners of the city of Detroit to act as inspectors of election in their respective precincts. We might say they were appointed as such, that they were required to take an oath and act as inspectors for said election but they were not such officials of the city of Detroit as would prevent them from acting as jurors in a case in which the city was an interested party. They were not subject to discharge by any city official or any department of the city. The relation of master and servant did not exist. They were selected to act as officers of the election in their respective precincts. They had but one duty to perform and that was a sworn duty similar to the duty of a juror who had been drawn for service by the jury commission of Wayne county. Their duties, as those of jurors, are prescribed by law, that is, to perform such duties in accordance with the oath taken by each before becoming members of these boards. Neither a juror nor an election inspector can be discharged or removed except for a violation of his duty. An inspector of elections is in no sense an employee of a city, township or county. He is a sworn officer for the performance of certain particular duties, and neither this court nor any other court to our knowledge has held that an election inspector is not qualified to act as a juror in a case in which the municipality wherein he is acting as such inspector is an interested party and is disqualified as a matter of law from serving as a juror. To hold otherwise would indicate but little faith in the integrity of those whose qualifications fit them for the performance of a public duty to respond to a summons to serve as a juror and determine the questions at issue in accordance with the law and the facts. If any one of the jurors in question had been desig*nated by the election commissioners of the city of Detroit to act as an inspector in his precinct such fact did not disqualify him as a juror, and a challenge for cause would be of no avail. The litigant is entitled to make certain inquiries of jurors to ascertain the state of their minds and to develop facts which would justify or warrant a peremptory challenge and is entitled to true answers from prospective jurors. There is nothing in this record to indicate that any juror who was finally impaneled did not truthfully answer all interrogatories. The subsequent appointment of three of them to be election inspectors at the primary election held on September 15, 1936, and the fulfillment of the appointment by them without objection by counsel for the parties in interest is not justification for a claim of mistrial of the cause after two or three days of hearing subsequent to the primaries. In fact the contention of counsel relative to the competency of these three jurors is without any merit whatsoever.
A few other objections, more trivial, if possible, than the foregoing, have been assigned as reasons for the reversal of the judgment. We shall not take the time or space to discuss them. Appellants were deprived of no rights or privileges guaranteed to them by the Constitution or statutes of this State.
The findings and award of the jury, confirmed by the circuit court, show complete justification by the record.
The judgment is affirmed, with costs to petitioner.
Fead, C. J., and North, Wiest, Butzel, Bushnbll, Sharpe, and Potter, JJ., concurred. | [
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McGrath, J.
On April 2, 1889, defendants entered into a writing, which, omitting the formal parts, is as follows:
“I, or either of us, hereby guarantee the payment toJTohn A. Tolman Co. of any and all moneys collected by-John L. Morrissey for account of John A. Tolman Co., and for all moneys which they may from time to time-advance to said John L. Morrissey, and any and all indebtedness now due or which may hereafter become due John A. Tolman Co., in excess of the amount due said John L. Morrissey as per agreement between said John A. Tolman Co. and said John L. Morrissey, and to accept a verified statement of the account' as kept in the regular books of said John A. Tolman Co. as correct and final between the said company and the said John L. Morrissey, and without requiring any demand or notice of default. My liability, however, is limited hereby to one thousand ($1,000) dollars, together with all costs, attorney’s fees, and expenses that shall arise from enforcing collection; and for such .amounts this is intended as a contimring guaranty.”
The Tolman Co. was contemplating the employment of Morrissey, and the above guaranty was sent to defendant, who resided at a distance, for signature. On April 15, 1889, the Tolman Co. entered into a written agreement with Morrissey, which is as follows:
“Engaged John L. Morrissey as salesman to solicit orders, for goods for us, expending his entire time and energy in faithfully and intelligently rendering such service, for one year from date (or at our option as to time, if less time); we to pay him 40 per cent, of the profits he makes on the route selling goods for us; he to pay his own expenses, and furnish his own sample cases. On the further condition that he stays the full year’s time out, and also stands 50- per cent, oí the losses that may be incurred from bad debts on the territory for the time. When the sales for the year are collected for, we are then to pay an additional 10 per cent, of the profits (and till that time this 10 per cent, of the profits is to be held as a guaranty fund for the purposes specified; and these stipulations he agrees to); and at the end of the year, when collections for the. sales are made, if no losses from bad debts have occurred, we are to pay over the 10 per cent., but, if any losses have occurred, we are to deduct half of the amount of the same from this 10 per cent, guaranty fund, and pay over the balance. If half the amount of the losses exceed the amount of the guaranty fund, we are to stand the balance.”
Morrissey continued in the employ of plaintiff for three years, when he absconded. At that time he was in arrears to plaintiff in the sum of $1,380.29. Plaintiff had no communication with defendants until after Morrissey absconded.
The court restricted the recovery to the amount which was due at the end of the year contemplated by the last-named agreement, to which the guaranty referred. In this, we think, the trial court was right. The agreement could not be extended, and defendants bound as to transactions arising after the year had expired. The clause with reference to a continuing guaranty evidently relates to “costs, attorney's fees, and expenses that shall arise from enforcing collection,” and refers to matters in the course of the business done during the year, which would, in the .ordinary course, be unsettled when the year expired.
/.The mere re-employment of Morrissey, and giving him an «opportunity to make up the deficiency, would not operate 'to release the sureties. By the terms of the agreement, defendants agreed to. accept a verified statement of the account as kept in the regular books as correct and final. The agreement also -provided that Morrissey should be .charged with 50 per cent, of the losses, and the item charged upon that account was a proper charge.
We find no error in the record, and the judgment is affirmed, without costs to either party.
The other Justices concurred. | [
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North, J.
These suits arise out of a collision between the automobile in which plaintiffs were riding and defendant’s truck. They were combined for trial. The automobile was owned and driven by Arvo Hautala, but his claim for damages in consequence of personal injuries, medical care for his wife, loss of wife’s services, and injuries to his automobile was assigned to his wife, Esther Hautala. She seeks damages for the injuries sustained by her husband and also for her own personal injuries. Plaintiff John Silampa seeks damages for his personal injuries, expenses of hospitalization, loss of time, et cetera. In each of the two cases the respective plaintiffs had verdict and judgment thereon. Defendant has appealed.
About 9 o’clock in the evening of February 2, 1937, Mr. and Mrs. Hautala and John Silampa were in an automobile, on their way to Crystal Falls. When they were some 5 or 6 miles north of Crystal Falls and proceeding in a southerly direction on US-141, they passed over the peak of a long hill and started down the southerly slope. Before reaching the summit Hautala saw the reflection of the lights of an approaching1 vehicle coming’ from the south and he testified that he slowed down the speed of his car to 20 or 25 miles per hour. Defendant’s driver, operating a truck tractor and semitrailer, was proceeding’ northerly with approximately a 10-ton load. The semitrailer was 22 feet, 8 inches long. The driver was not using chains on his tractor. This was a graveled highway, but the surface was covered with packed snow and there was some ice at or near the point of accident. At this place there were guard rails along the roadside, the distance between them being about 32 feet. These rails were 38 inches high and snow had been pushed against them by the snow plows, forming a bank about three feet wide inside of the guard rail on either side, and these banks were higher than the rails. The bill which defendant’s truck driver started to ascend was substantially a third of a mile long. He testified when he got about 300 feet from the top of the hill his tractor wheels began to spin and he stopped in the right hand lane of the highway close to the bank of snow for the purpose of putting on his chains. He set his brakes, left his engine running, got out of the cab, and placed a block under the left-hand wheel of the semitrailer. But before the block was placed, the truck and trailer started to move backwards and had proceeded six inches to a foot. Even after the block was placed the trucking equipment continued to slide backwards for a distance of about 33 feet. In this backward movement the trailer jackknifed, so that when it stopped it was standing nearly at right angles across the highway and within a couple of feet of the snow bank on the westerly side. The brakes on the tractor were set tight enough so that the tractor wheels were locked during the course of the backward movement.
As Hautala approached the point of accident he was facing and saw the lights on the tractor; but with the lights in his eyes he did not see the trailer crosswise of the road until he was 60 to 75 feet from it. Plaintiffs claim that inability to see this trailer was due in part to its being of a color similar to the surface of the highway itself where the icy snow and gravel were mixed. While Hautala had previously applied the brakes somewhat and to some extent slackened his speed, when he discovered the trailer across the road he immediately applied his brakes full force. Plaintiffs claim Hautala could have stopped before reaching the trailer, except for the fact that an unexpected icy condition of the highway extended from about 50 feet north of the point of collision to about the same distance south. The automobile struck the trailer with considerable force, and the damage resulted for which recovery is sought in these two cases.
Among the negligent acts with which plaintiffs charge defendant are that the driver of defendant’s truck and trailer, in violation of 1 Comp. Laws 1929, § 4697, as amended by Act No. 119, Pub. Acts 1933 (Stat. Ann. § 9.1565), did not drive the same in a careful and proper manner having due regard for traffic, the surface and width of the highway and other conditions then and there existing; that defendant’s driver did not keep the vehicle in his charge under proper control; that he negligently produced a dangerous condition in the highway; that the van in his charge was parked on the wrong side of the highway; that defendant’s equipment was not provided with adequate brakes; and that defendant’s driver negligently failed to give proper warning of the dangerous condition which he had caused. An act of alleged negligence, particularized by plaintiff, is that defendant’s driver placed the block under the left wheel of the semitrailer knowing that by placing it under the left wheel, instead of the right wheel, in event his equipment slid back down the hill, it would have a tendency to throw the semitrailer to the west and across the highway instead of to the east and out of the highway. Plaintiffs also charge that defendant’s driver was negligent in operating the tractor on the snow-covered roads and attempting to proceed up the hill where the accident happéned without placing* chains on the tractor.
Our investigation of the record satisfies us that there was testimony of negligence of a character alleged and, therefore, a question for the jury as to negligence was presented. It was for the jury to determine from all of the attendant circumstances disclosed by the testimony whether defendant’s driver was guilty of negligence which was the proximate cause of the accident. Surely the act of the driver in placing the block under the left wheel of the semitrailer, which would have a tendency to draw the trailer in its backward movement across the highway, might be found to have constituted negligence. Further, if for any reason the jury did not give full credence to the driver’s testimony, negligence might have been found from failure to give timely warning to approaching traffic. Appellant’s contention that the record contains no testimony tending to establish negligence on the part of the defendant cannot be sustained.
Appellant contends it was not only entitled to a directed verdict on the ground that there was no evidence of actionable negligence on the part of defendant ’s driver but also on the ground that Hautala is shown to have been guilty of contributory negligence as a matter of law and that his contributory negligence is imputable to each of these plaintiffs. Appellant asserts that Hautala was guilty of contributory negligence in that, in violation of 1 Comp. Laws 1929, § 4697, as amended by Act No. 119, Pub. Acts 1933 (Comp. Laws Supp. 1935, § 4697, Stat. Ann. § 9.1565), he was driving the automobile in which plaintiffs were riding at an excessive rate of speed, considering the surrounding circumstances on the highway, and at a speed greater than would permit him to stop his automobile within the assured clear distance ahead; that he did not have- his automobile under control as he approached the point of accident; and further, that the physical facts, particularly the damages to his automobile, conclusively show Hautala was guilty of contributory negligence. There is testimony in the record from which the fair conclusion may be drawn that had not the highway at or near the point of the accident been icy, Hautala, who had no knowledge or warning of this condition, would have been able to have stopped his car after discovering the semitrailer across the highway and before the collision. This icy condition of the highway was unknown to Hautala or the plaintiffs in this case. They had not encountered such a condition in the highway over which they had passed for a number of miles before reaching the place of the accident. Disinterested witnesses corroborated plaintiffs’ testimony as to the icy condition near the point of accident. There was testimony that the back end of the trailer was so near to the snow bank on the west that plaintiffs’ auto could not pass.
We think the record is such that it fairly presents an issue of fact for the jury as to whether Hautala was guilty of contributory negligence; and that it would have been error had the trial court held him guilty of contributory negligence as a matter of law. Stankrauff v. DeVoe, 281 Mich. 660; Park v. Gaudio, 286 Mich. 133.
Appellant contends there was error in the following extracts from the charge to the jury:
“It became and was his duty to exercise reasonable care and precaution to avoid injury to others in consequence of the stoppage of the truck on the road and this was especially true if the truck or van obstructed the westerly side or southerly line of the highway. * * *
“You have a right and should consider in this connection whether or not in the exercise of ordinary care, under the circumstances, the truck driver might not have avoided the obstruction of the other side of the highway by blocking his vehicles, the truck and van, in a better manner, by turning the wheels so that if the truck and van did slide back and jackknife it would not obstruct the other side of the road by using different or better means of blocking than was used. * * *
“It is not at all clear how long- the truck was there before the collision actually occurred, except as we get it from the truck driver and whether he is telling the truth or not is a matter for you to decide.
“If the wheels were locked and they slid, they must have done so in consequence: of the weight, or nature of the road and icy condition of the road and the vibration caused by the engine of the truck or for some other reason and not in consequence of the inadequacy of the brakes. * * *
“You have a right, however, to consider on the question of whether or not the truck driver exercised ordinary care under all of the circumstances —the evidence as to whether or not he turned his wheels to the right and stopped the motor.”
In each instance if the quoted portion of the charge is read in connection with the context it will be found not to have been prejudicial to defendant. Taken as a whole the charge to the jury was clear and fully as favorable as defendant could rightly ask. The trial judge in his charge entirely withdrew from the jury’s consideration any claim on plaintiffs’ part that there was actionable negligence in that defendant’s truck was not equipped with adequate brakes, or on the sole ground that the driver, when he stopped the truck, did not turn the front wheel to the right. The controverted issues of fact were clearly outlined in the charge and impartially submitted to the jury for determination. As applied to this case the charge was free from reversible error.
We cannot accept appellant’s contention that the verdict in either of these cases was excessive. For herself and her husband Mrs. Hautala recovered $3,277. Each of these two sustained painful physical injuries. There is testimony that Mrs. Hautala’s eyesight has been affected and injury done to her nervous and physical being*. Each sustained loss of earnings. Damage to the Hautala automobile was approximately $500. Aside from compensation for damage to the automobile, the amount received by Mr. and Mrs. Hautala was less than $1,500 each. Plaintiff Silampa, who recovered $3,000, also suffered painful bodily injuries, substantial loss of earnings, and, at the age of 28 years, according’ to competent testimony, has suffered a 15 per cent, partial permanent disability in earning capacity. We would not be justified in disturbing the amount of the verdict in either case.
The judgments are affirmed, with costs to appellees.
Butzel, C. J., and Wiest, Bushnell, Sharpe, Potter, Chandler, and McAllister, JJ., concurred. | [
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Sharpe, J.
Plaintiff began suit against the city of Bay City to recover certain taxes paid under pro test. Plaintiff is a Michigan corporation and on April 12, 1932, filed with the hoard of assessors of Bay City a statement under oath showing the value of its shares of stock for assessment purposes, as of the second Monday in April, 1932, to he $9,734.98. Thereafter, the board of assessors increased the valuation of the shares of stock of the plaintiff from the sum of $9,734.98 to' the sum of $59,685 and spread the same upon the assessment rolls of the city, of Bay City. In making the increase the board of assessors added to the value of the stock for taxation the sum of $50,000 representing the book value of the abstract hooks owned by plaintiff.
In the court below the plaintiff contended that the issue involved was determined by the decisions in Perry v. City of Big Rapids, 67 Mich. 146 (11 Am. St. Rep. 570) and Loomis v. City of Jackson, 130 Mich. 594, while the defendant contended that abstract books have an available cash value at all times; that they are used as a medium of making a profit and as such are taxable property. The trial court held that the abstract books being property liable to seizure and sale on execution are also property liable to assessment for taxation. Plaintiff appeals.
The question involved in this cause is not new in Michigan. In Dart v. Woodhouse, 40 Mich. 399 (29 Am. Rep. 544), we said:
“The counsel in the argument of this cause on both sides .found difficulties in the nature of the property, but did not plainly present the radical difficulty that the right in unpublished manuscripts is neither goods nor chattels subject to execution. The right of the proprietor of such a manuscript to publish it or to keep it back from publication is not only a property right, but one which is purely incorporeal and attended with considerations of a nature entirely different from any involved in other rights. * * * The value when it is considered at all in a pecuniary sense depends on the information or interest of the composition or document, and not on the particular bundle of paper which records it. ’ ’
The question was next considered in the case of Perry v. City of Big Rapids, supra, Mr. Justice Campbell again writing the opinion. This case, involved directly the question as to whether abstract books were taxable. The court referred to the provision of the then Constitution requiring assessments to be made on property at its cash value. This constitutional provision was retained as article 10, '§ 7, of- the present Constitution. The court said, referring to that provision:
“This means not only what may be put to,valuable uses, but what has a recognizable pecuniary value inherent in itself, and not enhanced or diminished according to the person who owns or uses it. The court below found expressly, and could not. have found otherwise, that these abstract books have no intrinsic value. They are only valuable for the information they contain, and that information is conveyed by consultation or extracts. Their value is only kept up by their completeness and continued correction. ’!
After the decision in the Dart and Perry Cases the legislature passed Act No. 197, Pub. Acts 1899, providing for levy and sale on execution of abstract books, maps, plats, charts, and other records owned or kept by any person, copartnership, or corporation for the purpose of furnishing abstracts or, information concerning- the title to lands in this State.
The question was next and last considered by our court in the case of Loomis v. City of Jackson, supra. In a Per Curiam opinion the court applied the rule of the Dart and Perry Cases. It took cog nizance of the enactment of Act No. 197, Pub. Acts 1899, and said:
“It is to be presumed that the legislature was cognizant of both of the above decisions. They chose to enact a law making such property subject to levy and sale upon execution, but have not yet chosen to make it subject to taxation. Making it subject to levy upon execution does not render it subject to taxation; so making it subject to taxation would not render it subject to sale upon execution.”
Since Dart v. Woodhouse, supra, was decided in 1879 we have, by a continued line of authority, established the rule of property that these books and records are not the subject of taxation. This decision has, for more than 50 years, been recognized as the law concerning the taxation of abstract books and many sessions of the legislature have met in the meantime without any action upon this subject matter. The record shows that there has been no material change in the business or methods of abstracting titles to real estate and we must hold that abstract books and records are not property within the purview of our taxing statutes.
The judgment of the lower court is reversed, without a new trial and with instructions to enter judgment for plaintiff in the sum of $2,124.26 together with interest at five per cent, from January 9, 1933. Plaintiff may recover costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Potter, and Chandler, JJ., concurred.
See 3 Comp. Laws 1929, § 14572. — Reporter. | [
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Montgomery, J.
This is an action of ejectment. The plaintiff claims title to the land in question under an act of Congress approved June 3, 1856, which granted to the State of Michigan certain lands to aid in the construction of railroads within the State, such lands comprising alternate sections, designated by odd numbers, for six miles in width on each side of the roads, and which act provided further thatj when the lines of the roads were definitely fixed, selection might be made from lands . nearest to the tiers of sections above specified, of lands in alternate sections, equal in amount to such lands as the United States had previously sold or otherwise appropriated. This grant was followed by an acceptance by the State, by Act No. 126, Laws of 1857, by which act the Flint & Pere Marquette Railroad Company was vested with the right to the lands along the line of its road, when located. The line of road was approved in August, 1857, and the road completed as early as 1874. The company conveyed the land to the plaintiff August 23, 1879. The defendant claims title to the land by conveyance from the State of Michigan. It appears that the lands were patented to the State by the United States on the 25th of July, 1862. The description was included with a large number of others. The grant purported to be under the so-called “SwampLand Act ” of September 28, 1850.
The plaintiff recovered, and the defendant brings error, and insists — First, thaj; the patent from the United States is conclusive that the lands were of the character included in the swamp-land .grant; or, second, if not conclusive for all purposes and in all forums, that it must be held conclusive in an action at law, where the legal title only is involved, and that the effect of the conveyance was to invest the legal title in the defendant. On the other hand, it is contended by the plaintiff that upon the approval of the right of the railroad company, by the terms of the act of Congress and of the statute above referred to, title vested in the railroad company, and^ that any attempted subsequent conveyance to the State under the swamp-land act could not defeat the title of the company.
The selection was approved June 18, 1859, by the Secretary of the Interior, and prior to the issuance of the patent to the State under which the defendant claims. We think it is clear that upon this selection, whether the title of the railroad company was defeasible for any default on its part or not, a title or interest vested in the company to such lands described in the list as had not been sold or otherwise appropriated, and that as to such lands, after the approval of such list, they were no longer subject to sale by the federal government. See Johnson v. Ballou, 28 Mich. 379.
But a .question of greater difficulty is whether, for the purpose of this case, it must he held that the lands in question had been otherwise appropriated. The act of September 28, 1850, entitled “An act to enable the state of Arkansas and other states to reclaim the swamp lands' within their limits,” has been recently considered by the ■Court in the case of Sherman v. A. P. Cook Co., 98 Mich. 61. It was there held, following the decisions of the Su•preme Court of the United States, that this act amounted to a grant in praesenti, and that, when a patent was subsequently issued by the Department of the Interior for the lands listed, the act of the Department of the Interior, ■by relation, took effect as of the date of the grant; and 'such has been the holding of the Supreme Court of the United States in a long line of cases. See, also, French v. Fyan, 93 U. S. 169; Wright v. Roseberry, 121 Id. 506. In French v. Fyan it was held that the second section of the act of 1850 devolved upon the Secretary oí the Interior the duty, and conferred on him the power, off determining what lands were of the description granted by that act, and made his office the tribunal whose decision on . that subject was to be controlling, and that the action of the land office in issuing a patent for any of the public land subject to sale by pre-emption or otherwise is conclusive of the legal title; and this is undoubtedly the general rule of law. But a patent is never conclusive, in any forum, in a case where it appears that the department from which it issued had at the time no jurisdiction to issue it. Smelting Co. v. Kemp, 104 U. S. 636, 646, in which case it was said that a patent may be collaterally impeached in any action by showing that the department had no jurisdiction to dispose of the lands; that is, that the law did not provide for selling them, or that they had been reserved from sale, or dedicated to special purposes, or had been previously transferred to others.
In the case of French v. Fyan it did not appear that the land department had acted upon the question, and once determined that the lands were not swamp lands. In the present case it not only appears that the Secretary of the Interior, under date of June 18, 1859, approved the selection of the lands by the Flint & Pere Marquette Bail- road Company, and thereby designated the lands as within the grant to the State to aid in the construction of that road, but it also appears that in the case of lands designated as swamp lands, and approved by the Secretary of the Interior under section 2 of the act of 1850, the lands in question were not included; so that there was not only a determination that the lands vested in the railroad company, but there was also a determination' that- they were not swamp lands. This vested the title in the railroad company, beyond the power of the department thereafter to divest it by the mere issue of a patent. Johnson v. Ballou, 28 Mich. 379. The department had no longer any jurisdiction to dispose of the lands, and that fact may be shown in an action of ejectment. See Webber v. Boom Co., 62 Mich. 626.
The judgment will be affirmed, with costs.
The other Justices concurred. | [
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Wiest, J.
Idle statute, 3 Comp. Laws 1929, § 12327, imposes a specific tax upon premiums on business permitted to be done in this State by a foreign insurance company and payable between the first day of January and of April for the preceding calendar year.
In April, 1933, the National Life Insurance Company, of Illinois, paid the State of Michigan such specific tax for the calendar year 1932, amounting to the sum of $18,403.49.
In liquidation and dissolution proceedings in the superior court of Cook county, Illinois, defendant Patrick J. Lucey was appointed principal receiver of the insurance company on October 17,1933.
In November, 1933, under a bill in equity filed by the Michig’an commissioner of insurance, the circuit court for the county of Ingham, in chancery, appointed an ancillary receiver of the assets of the National Life Insurance Company within the State of Michigan.
In March, 1934, the Illinois receiver intervened in the Ingham circuit court proceeding, and the court directed surrender to him of the assets of the corporation within this State, inclusive of $22,378.00 in cash, and discharged the local receiver but decreed that the funds so turned over should stand charged— “with the same lien or preference, if any, in favor of the State of Michigan, to secure the payment of its said claim, which would exist in case said sum were still in the hands of said ancillary receiver, and this court hereby retains jurisdiction of said intervening petitioner and of this cause to determine the validity and amount of said claim of the State of Michigan and’ the question of whether any lien or preference for the payment thereof exists, to all of which the said Patrick J. Lucey, as receiver of the National Life, now here in open court consents. ’ ’
At the time of the decree the claim of the State was made for the tax in the amount of $12,295.64, on gross premiums, collected by the insurance company on its business within this State during the calendar year 1933, up to the time the proceedings were commenced in the Illinois court.
Such reserved matter came before the Ingham court and in August, 1936, the court decreed allowance of the claim of the State without interest from April 1,1934, and ordered the Illinois receiver to pay the same within 60 days as a preferred claim and with priority out of the mentioned money turned over by the local receiver as above mentioned.
Prom this decree the Illinois receiver prosecutes review claiming:
1. The specific tax on the premiums is payable in advance at the beginning of the year for the privilege of doing business during the succeeding year:
2. That the tax had neither accrued nor become payable prior to the appointment of the Illinois receiver ;
3. That the Illinois law governs rights and the State of Michigan cannot be given priority on its claim.
In behalf of the State it is claimed that the tax is imposed for the year during which the premiums were collected.
We quote the pertinent provisions of the statute:
“Taxation of Foreign. Insurance Companies. Every foreign insurance company, of the classes herein enumerated, admitted to do and doing any insurance business in this State, shall, as a condition precedent to the privilege of doing business, pay to the treasurer of the State of Michigan, on the first day of January, of each year, or before the first day of April next thereafter, (subject to the retaliatory provisions herein before provided) a tax upon its said business written in this State under the authority of the commissioner of insurance hereof, for the year ending December thirty-one of the preceding-year, computed as follows:
“First, Life insurance companies, a tax of two per centum on the gross premiums, excluding considerations for original annuities.” 3 Comp. Laws 1929, § 12327.
“It is the contention of the defendant (Lucey, as receiver), that the premium tax imposed by the State of Michig-an under 3 Comp*. Laws 1929, § 12327, is in the nature of a license or franchise tax for the privilege of doing business, and is payable as a condition precedent to the privilege of transacting- business in the State of Michigan for the ensuing year. Similar to substantially all license, privilege or franchise taxes, we contend that the tax is payable in advance, and that upon payment thereof a certificate of authority or license to transact business for the ensuing year is issued. In determining the amount of the tax to be paid, premiums received during the preceding year are merely used as a basis for computing the amount to be paid for the license. Because that tax is payable in advance, the National Life had already paid for the privilege of doing business through March 31, 1934. Since the National Life ceased doing business on October 17, 1933, no further tax for the privilege of doing business subsequent to March 31, 1934, could accrue.”
We are not so impressed and adopt the view of the circuit judge:
“In accordance with well-established principles the language used by the legislature must be interpreted in the light of the purpose sought to be accomplished. Bearing such purpose in mind, may it fairly be said, as claimed by counsel for the Illinois receiver, that the legislature intended that the specific tax of two per centum on the premiums received on the insurance business during any calendar year, due to the State on the first of January and payable on or before the 31st of March following, is in reality a tax due and payable for the ensuing year. Or, as claimed on behalf of the State, was it intended that the tax should be regarded as for the year during which the premiums are collected, with the right to a renewal of a certificate of authority to continue in business contingent on payment within the prescribed time? If the objections are well founded the conclusion obviously follows that the legislature has, in effect, exempted from the specific tax foreign insurance companies during- the first year of operation in Michigan. By way of illustration let us assume that a company organized under the laws of another State enters the State, for instance, on the second of January, 1937, continues in business here during that year, and withdraws on the 31st of December. Under the theory advanced no specific tax would be due to the State. It does not seem to me that the statute is fairly susceptible of such construction. Obviously the practical result would be a discrimination against local insurance companies. It cannot be assumed that any such result was intended. ’ ’
The statute imposes the specific tax upon the gross premiums received by the insurance company each year and is levied at the close of the year, and its payment is compliance with the tax levy during such calendar year and not for the ensuing year.
We find no merit in the position assumed in behalf of the receiver.
Counsel for the receiver contend that the tax here in question was not due and payable until January 1, 1934, and, therefore, there was no provable debt due at the time of appointment of the receiver. When the insurance company went out of business under the liquidation proceeding the tax on the gross premiums to that time became due and payable, and by operation of law a valid subsisting claim against the assets in custodia legis.
The receiver, appointed in Illinois, had no extraterritorial jurisdiction. The Michigan court had power to appoint an ancillary receiver, there being property of the corporation in this State and the State having a claim for taxes.
Except by permission of the Michigan court the Illinois receiver could not take such property from the State and, to the end of protection of the claim of the State for the taxes, the court could impose conditions, inclusive of adjudication of priority of the claim to be paid out of the funds turned over to the Illinois receiver. The mentioned order directing the Michigan receiver to turn the impounded funds over to the Illinois receiver impressed the funds with payment of the tax and the Illinois receiver accepted the funds in accord therewith.
Comity has been recognized without surrender of the preference right of the State and it is incumbent on the Illinois receiver to observe comity and carry out the conditions under which he obtained administration of such funds.
The decree is affirmed with costs.
Fead, C. J., and North, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Butzel, J.
Plaintiff was awarded compensation at the minimum rate of $7 per week for injuries he claims to have sustained while in the employ of defendant Vittori. The latter, at the time of the accident, was an independent contractor employed by defendant Klotz to plow a logging* road through the snow. Klotz was subject to the workmen’s compensation act with the State accident fund as his insurance carrier. Vittori was not subject to the act, he having been employed by Klotz to do the job at a flat rate of $6. "We limit our discussion to the questions involved as stated in appellants’ brief.
Appellants contend that the relation of employer and employee did not exist between plaintiff and any of the defendants at the date of the accident. Vittori was looking* after his father’s gas station and on December 10, 1932, the date of the accident, and for some time previous thereto, a group of young* men out of work made the gas station a gathering* place for social purposes, and they were glad to do small odd jobs for Vittori in return for his hospitality, he usually treating them to a meal, or giving* them some other slight token of appreciation. He had extended credit to plaintiff. On the day of the injury, there had been a very heavy snowfall and Vittori was employed to clear the road with a snowplow attached to his truck. A number of men, including* plaintiff, accompanied him. Plaintiff claims that, in accordance with Vittori’s instruction, he rode on the left side of the truck with his feet on the bumper in order to w'atch the pin that connected the plow to the truck. He was jarred off, knocked to the side of the snowbank and the truck ran completely over his hips and he thus suffered serious and permanent injuries. In addition to compensation at $7 per week, he was awarded $268 for medical expenses, $238.47 for hospitalization and $229 for special nursing services. Vittori asserts that he agreed to pay plaintiff the sum of $1 solely for the use of a heavy chain that belonged to plaintiff’s father and no sum whatsoever for his services, which plaintiff was to perform gratuitously. Plaintiff, on the other hand, claims that-Vittori agreed to pay him $1 for working on the snowplow the afternoon of the accident. Notwithstanding Vittori’s statement that on previous days plaintiff worked for him, and in turn he treated plaintiff to a meal, or some other inexpensive reward, plaintiff asserts that on several days shortly before the accident, he had worked for Vittori, but was unable to remember what pay he received. As there is some testimony, though, very meager, that plaintiff was employed the afternoon of the accident for the sum of $1, we are bound to affirm the finding that plaintiff was a statutory employee under 2 Comp. Laws 1929, § 8416.
There can be no question but that plaintiff was a casual employee. One so employed is entitled to compensation from an employer operating under the act, as amended. Bathrick v. Village of Burr Oak, 278 Mich. 262. Appellants, however, claim that there is no basis for finding compensation because there is no method of ascertaining the amount of the daily wage. They call our attention to Hartman v. Village of St. Clair Shores, 246 Mich. 603, involving’ the case of a volunteer fireman whose compensation depended upon the time he arrived at the fire and who only received pay if he was one of the first six volunteer firemen to respond. Since the opinion was handed down, the statute has been amended so as to fix the wages of volunteer firemen for the purposes of the act at a fixed sum. 2 Comp. Laws 1929, § 8413, as amended by Act No. 58, Pub. Acts 1931.
The statute is very indefinite as to compensation for casual employees. The department found that plaintiff received $1 for the day’s work and therefore was entitled to the minimum of $7 per week. Such holding was within the purport of the act which provides for minimum compensation at the rate of $7 per week (2 Comp. Laws 1929, § 8425).
Plaintiff was incapacitated for a long period and is still partially disabled. Plaintiff testified that he was wholly unable to work for 18 months after December 10, 1932, the date of the injury, but that since then he has been driving a truck for 16 days a month for six months and that he has been paid the sum of $1.66 per day, plus his board; that he has been so employed by an entirely different employer, the Pox Valley Construction Company. "While the testimony shows that plaintiff cannot do as heavy work in general as he was able to perform prior to the accident, he can do lighter and more profitable work than that in which he was employed at the time of the accident. In his new employment he was not performing* work that had been specially “made” for him by his employer or that was temporary or nondescript as in MacDonald v. Great Lakes Steel Corp., 268 Mich. 591, and 274 Mich. 701, and Hood v. Wyandotte Oil & Fat Co., 272 Mich. 190, which cases "the department cites in its opinion. By his own testimony, plaintiff’s disability has been diminished so that his present earning capacity is in excess of $7 per week. The compensation payable when added to the employee’s'wage-earning capacity after the injury in the same or other employment shall not exceed his average weekly earnings at the time of such injury. 2 Comp. Laws 1929, § 8427. Under the circumstances, the department should not have granted compensation at $7 per week for any period after plaintiff showed that he actually earned an amount in excess of this sum.
The case is remanded to the department of labor and industry for entry of an award in accordance with this opinion. Defendants will recover costs.
Fead, C. J., and North, Wiest, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Hooker, C. J.
The will of John O’Connor being admitted to probate, the contestants appealed -to the circuit court, where, by direction of the court, the jury rendered a verdict in favor of the proponents, and contestants again appealed.
The will is-attacked upon the grounds of (1) mental incapacity of the testator, and (2) undue influence. The testator was an unmarried man of nearly 80 years of age, who had resided at Detroit for many years, and, for some 9 years previous to his death^ had lived with Mrs. Elizabeth O’Connor and her daughter Catherine. Etta Yan Burén, another daughter of Elizabeth O’Connor, lived upon adjoining premises. Elizabeth Avas the widow, and Catherine and Etta were daughters, of Thomas O’Connor, a deceased brother of the testator, who had resided in Detroit previous to his death. The will was made about six months before the testator died. Counsel for contestants asserts that he died possessed of upwards of $40,000. The will gave three parcels of real estate to Etta and Catherine upon condition that they care for their mother during her life; $300 to his niece Mary (O'Connor) Madison for her care of his brother James (deceased); bequests to three .charities in Detroit, aggregating $1,000; and the residue-to «Catherine O’Connor. The contestants are Mary (O’Connor) Madison and her two brothers, children of testator’s brother Patrick, who died in Ohio about eight years previous to the death of the testator.
The 111th assignment alleges error in that the court directed a verdict for proponents. This direction was right, there was no evidence to go to the jury upon the subject of undue influence, and if mental competency was proved. The burden of proving the latter was upon the proponents, and a prima facie case was made out by the testimony- of the witnesses to the will. To overcome it, several witnesses were sworn upon behalf of the contestants:
William J. Shields, who met testator in front of the city hall, said that his eye-sight seemed poor, for he did not recognize him for a second or two; that he had failed considerable physically since he met him a year before; that he shuffled along when he walked, and seemed very feeble; and that his voice was weak. He joked the witness about getting married, as he had been in the habit of doing. The witness stated that he hardly thought he was able to judge of testator mentally.
James Shields, Sr., testified that the testator was an old acquaintance, and that he visited the witness about a year before he died, returning home alone about 9 p. si. upon a street car; that he was physically feeble, and needed assistance to the car, though he objected to witness accompanying him; and that he dropped twice, with his knee upon the sidewalk. The witness saw him again in October or November before he died. He was upon the opposite side ■of the street, and appeared weaker. He also stated that “during the last year everything about him seemed to fail, and naturally his strength failed, and his opinion/-’ He then stated that he thought him incompetent to mak'e this will, and gave as. a reason that the will was so different from rvhat testator had previously said he intended to make it. The witness saw him last a short time before death, and was then told by testator that he (testator) was not long for this world.
John Hardie, a witness about the same age as testator, crossed the street to meet him the fall before he died, but did not address him, because he appeared in a passion, and tried to get away as soon as he could, for fear people would think that they were quarreling. No further explanation of the transaction was given.
Frederick H. Corbett, a tailor, who had left Detroit in 1885, returned in 1888. He had at one time had a land deal with the testator, and after his return, and in September, 1889, he went to see the testator for the purpose of trying to sell him some southern lands, but he did not find him in condition to do business. He does not seem to have discovered this until, after an attempt, lasting about 15 minutes, to interest the testator, the latter got angry, and pushed the papers across the table, and refused to have anything to do with the matter. He stated that testator was feeble and decrepit, and he could not make him understand about it at all. He was fidgety and deaf, and told witness that he did not want to do any more business with him. So, witness says thjit he conceived the idea that there was no use trying to do any busifiess with him, for the reason that he was not capable of'doing it. The court refused to allow this witness to testify to his opinion in relation to the testator’s competency until he should relate the conversation that occurred at the time of this transaction. The testimony of this witness, especially in the light of tlie cross-examination, rather tends to create the belief that the testator recollected the past, and was able to look after his financial affairs with some prudence. Had he, at his age, yielded to the witness’ importunities, and bought a piece of land in a remote state, there might have been more reason for doubting his competency.
One other witness testifies upon this subject, — Andrew J. Scott. He says that the testator was debilitated physically, but able to get about until in the winter; that he was pretty deaf.
“ In talking with him I had no difficulty, except that I had to talk loud. He would answer as though he understood. Sometimes he would not answer, but he was a peculiar man that way. He failed some the last year. I had an interview with him three months - before he died. Old age appeared to be getting on him. He did not talk as he used to. He was a very solid talker, and had good judgment.”
In this interview he asked the witness about a man who lived in Ireland, in a part of the country witness never knew. The witness told him “yes,” to please him. Then he asked which road they came to town on, — the old or new, — and the witness, to please him, said they came by the new line. Then he was asked his opinion as to competency, and his testimony was excluded. This was some time after the will was made.
The opinion of a witness upon the question of the competency of a testator is admissible only when it appears that the witness was sufficiently acquainted with "him to be able to form an opinion; and it may be considered settled that the trial court may properly require the witness to state all of the circumstances upon which his opinion is based before permitting him to state his opinion, and perhaps it would not be a great stretch of discretion if he permitted cross-examination before allowing the opinion to be given. An opinion that a man is incompetent must be supported by some evidence that is inconsistent with competency. Hence, it is for the court to pass upon the competéncy of the witness, and, unless there is something that legitimately tends to show incompetency, the opinion cannot be taken; and we cannot approve the course taken in this case, of repeatedly asking the opinion of the witness without a full showing of the circumstances within the knowledge of the witness. Eliminating such opinions as were given, there is no testimony fairly tending to show incompetency. It is shown that the testator was old, that he failed in health, that he was feeble, that his mind was not so strong as formerly, and that hei(was deaf; but all these things were under circumstances that raise no presumption of incompetency. A witness stated an instance of forgetfulness, but it was three months after the will was drawn. This will was not very complicated. The transaction, when it was made, shows an apjDreciation of his situation.
The opinions of acquaintances upon the subject of competency are admissible where the witness is shown to have had the means of observation. This was fully discussed by Mr. Justice Campbell in the case of Beaubien v. Cicotte, 12 Mich. 459. It may be claimed that from that case the inference should be drawn that the opinion of an acquaintance, who saw the testator at the time of the alleged incompetency, may be given in the first 'instance, leaving cross-examination to test the value of such opinion. But upon page 501 it is said:
“The practice permits all who have had means of observation to testify concerning, the existence and measure of capacity with reference to the matter in controversy. * * * In every case the witnesses who speak from their own observation are expected to describe, as well as they can, what has lead to their conclusions, as well as their means of observation; but the cases referred to show that in many instances the results of very limited observation have been permitted.”
Again, on page 503, it is said:
“But no testimony can be of any real value unless it appears the witness had adequate means and opportunities for forming some conclusion.”
This opinion, if read in the light of the writer’s opinion in the case of White v. Bailey, 10 Mich. 161, leaves no room for doubting that it is the settled law of Michigan that an opinion that a testator was incompetent can only be given when the witness has testified to circumstances upon which, it is predicated, and which to some extent justify it. White v. Bailey, 10 Mich. 161; Beaubien v. Cicotte, 12 Id. 459; Rice v. Rice, 50 Id. 448; Kempsey v. McGinniss, 21 Id. 123; Prentis v. Bates, 88 Id. 567, 93 Id. 234. The extent to which such proof must go.cannot be limited' by an inflexible rule. It must depend upon the familiarity of the witness with the testator, the character of the disqualification, the nature and number of extraordinary circumstances detailed, and proximity to the act involved in point of time. Taken as a whole, they should move the judicial discretion of the trial judge, by apprising him that the witness may fairly doubt the competency of the person upon reasonable grounds (Prentis v. Bates, 93 Mich. 242; Lynch v. Doran, 95 Id. 395); and this discretion must be carefully exercised (Rice v. Rice, 53 Mich. 432). We have carefully examined the testimony in the case, and find no witness who was qualified to testify to such a fact under this rule.
The further claim was made that the will, was the result of undue influence exercised by the several devisees. We do not find any proof upon this branch of the case, and the judge Avas justified in saying so to the jury.
It being determined that the proofs taken vindicate the court in his direction of a verdict, it follows that the judgment should be affirmed, unless the court has erroneously excluded evidence which might have raised á question for the jury.
As stated, the assignments of error are numerous, but many of them are repetitions of the same legal question, and no attempt will be made to disquss them separately. A large number of assignments have been covered by what has been said about the competency of witnesses, and they need not be further alluded to. Other questions were subsequently answered, and hence the objections lost their force, if they had any.
Upon the question of undue influence the contestants complain that they were not permitted to show the relations existing between the testator and the proponents, with whom he lived, by showing their treatment of him and remarks about him. Assignments 5 and 70 are based upon the exclusion of the questions: “Will you state to
the jury, so far as you could see in the house, as to whether the old gentleman did what they wanted him to?” and, “Will you state, Mrs. Morris, under whose control he was during the last six months of his life, that yon .saw?” The first question was asked of a nephew, cine of the contestants, who visited testator several years before his death. The objection was sustained, but the witness answered the question fully as to the conduct of affairs-■The other question called for a conclusion, and was objectionable for that reason, if no other.
An attempt was made to prove undue influence by showing statements of the several devisees. The court excluded this testimony, and error is assigned thereon. The theory upon which this testimony has been held admissible has been said to be that the legatee was a party in interest. Mr. Greenleaf says (2 Greenl. Ev. § 690) that such declarations are admissible where the legatee is a party to the record or a party in interest, but not otherwise. The authorities upon which this is based are as follows: Atkins v. Sanger, 1 Pick. 192. That case was tried upon appeal before three of the five justices, who decided to admit the evidence of one of three legatees. No opinion is written by the court, and the reporter contents himself with the following brief statement, viz.:
“The chief justice, after a short consultation with his brethren, said the court were inclined to admit evidence- of the declarations of either of the executors as to facts which took place at the time of making the will.” He adds: “This decision does not interfere with the case cited of Phelps v. Hartwell [1 Mass. 71].”
A note is appended, as follows:
“ On the issue of clevisavit vel non, the declarations of one of the devisees, who is not a party to the record, are not evidence to invalidate a will (Lightner v. Wike, 4 Serg. & R. 203; Bovard v. Wallace, Id. 499; Nussear v. Arnold, 13 Id. 323); but the declarations of a sole devisee would be evidence."
Thus, we find the case of Atkins v. Sanger discredited upon its face. A reference to the case of Phelps v. Hartwell, 1 Mass. 71, shows that such evidence was excluded, .and that there was very little justification for the statement of the reporter in the case of Atkins v. Sanger, that ■“ this decision does not interfere with the case of Phelps v. Hartwell.” The editor appends a note to the latter ■case, in which he says: “Such evidence was admitted in the case of Atkins v. Sanger.” It is worthy of mention that Sedgwick, J., in the case of Phelps v. Hartwell, said that, if the person who made the declaration had been solely interested, the testimony would have been admissible.
The Pennsylvania decisions cited in the note to the section cited from Greenleaf are interesting. In the case of Lightner v. Wike, 4 Serg. & R. 203, it was held that the declaration of an executor and devisee that testator had left no will was not admissible. In Bovard v. Wallace, Id. 499, a similar doctrine was held. In Nussear v. Arnold, 13 Serg. & R. 329, the court reiterates the doctrine, ■citing the case of Phelps v. Hartwell, 1 Mass. 71, as the •only decision directly in point that the writer of the opinion had been able to find, outside of the Pennsylvania cases. This case also implies that the rule is different as to the declaration of a single devisee. Thus, we find that the authorities cited by the counsel for appellants do not sustain his position. This doctrine of Phelps v. Hartwell is supported by the following cases: Blakey v. Blakey, 33 Ala. 617, and cases cited; Thompson v. Thompson, 13 Ohio St. 356; Shailer v. Bumstead, 99 Mass. 127.
The question was referred to by this Court in Re Estate of Lambie, 97 Mich. 49, where the declarations of one who was devisee of the entire estate was held admissible. But we think that the rule does not extend to cases where there are several interested in sustaining the will, as in this case. An inspection of the record shows 27 assignments of error upon questions of this character, after the court had signified that such testimony was not admissible. The question being once fairly raised and decided, the court might, with propriety, have required counsel' to refrain from repetition.
In passing, we feel constrained to criticise the proceedings upon the trial to the extent of saying that attempts to introduce the opinion of a witness before he has fully stated all the circumstances upon which it is based should not be indulged in. As a climax to circumstances legitimately raising the doubt of competency, the opinion may be asked. The court can then pass upon it intelligently, and his ruling can be satisfactorily reviewed. Repeated efforts to introduce testimony against the decision of the judge are unseemly, and except in cases where something has been inadvertently omitted, or where counsel has not anticipated the ruling made, should not be made or permitted. Attempts to meet such emergencies as those mentioned will seldom be obstructed, and, once the court's ■ruling is ascertained, counsel should endeavor to conform to it as closely as the legal rights of his client will permit. By such a course-the administration of justice is facilitated, and mutual confidence of judge and counsel assured and preserved, in and for which both, as officers of the court, are equally interested and responsible.
.Of the 111 assignments of error, 110 arise upon the introduction of evidence, and, of these, 17 are based upon the exclusion of answers to questions by contestants' counsel upon the objection that they were leading. The harm in leading questions is done when the question is -asked, and, while such questions have their proper place and use, we think no court or opposing counsel should be required to submit to repeated infractions of the rule. Every lawyer should know that they are within the discretion of the court, and, if 17 questions were necessary to ascertain the inclination of the trial court, it would at least seem unnecessary' to trouble ■ this Court with them.
After a careful analysis of the proof and the several assignments, we find no error in the case. The judgment will therefore be affirmed, with costs.
The other Justices concurred. | [
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Chandler, J.
This action is brought by the administratrix of the estate of Charles Jones, deceased, who was killed in a store operated by defendant, C. F. Smith Company, on November 26, 1934. The case was submitted to the jury which rendered a verdict of $4,000 in favor of plaintiff and against defendant. On a motion to enter judgment non obstante veredicto by defendant, C. F. Smith Company, Honorable Homer Ferguson, circuit judge before whom said cause was tried, granted said motion and entered a judgment in favor of defendant.
For a statement of the facts and circumstances leading up to the killing, we adopt from the opinion of the court upon the granting of defendant’s motion, in so far as it is sustained by undisputed testimony in the case, the following:
“The C. F. Smith Company owned and operated a grocery store at 451 Harper avenue, Detroit, Michigan. The store was managed by Mr. Ries. Said manager had operated a store for some four years. The store had been held up twice prior to the date in question. The date of the first holdup was not stated, but the second holdup was approximately 10 days prior to the date in question. The said manager had been instructed by officials of the said corporation as to how he should care for the money in the store, and how the same should be concealed in different envelopes, to lessen the danger of total loss in case of a holdup. The manager had reported the first two losses of money by robbery armed to the officials. On Saturday, November 24, 1934, a police officer of the metropolitan police department of the city of Detroit went into the store, and went to the back part where he was concealed from view of those entering the door, by an icebox in the store; that he remained there from 7 p. m. until the close of the store at about 10 p. m. At about 4 o’clock on Monday, November 26,1934, John R. Sheridan, a police officer of the city of Detroit entered the store premises and said to the manager, “I am going to keep you company for a while. ’ ’ The police officer thereupon went to the rear of the store and was concealed from the view of those entering the store by an icebox. The police officer remained out of view of the customers of said store until shortly after 6 o’clock on said date. Prior to 6 o’clock, Charles Jones, the deceased, entered the premises, purchased a dozen eggs, and paid for the same, remaining in the store after the purchase for some 10' minutes, having had a conversation with the manager of the said store. The manager, at no time, told the deceased Jones that there was a police officer in the said store. There was also in the store at the time’ Marie Anderson, a girl of 14 years of age; Arthur Vincent, a boy 17 years of age; and one John Wade. At about 6:25 p. m. a bandit, one' James Ferrell, entered the store with a drawn pistol, and immediately placed the girl, Marie Anderson, in front of him as a shield. With his drawn gun, he walked to the cash register and demanded the manager to get the envelopes first. The store manager proceeded to get the envelopes. Then, without any warning, the police officer stepped into full view, and the bandit Ferrell opened fire. After the girl was able to extricate herself from in front of the bandit, the police officer, who came into full view with a drawn gun, began to shoot. The officer shot six times, and the bandit shot a number of times. * * * After the bandit left, the bandit having been shot six times by the police officer, Jones was found upon the floor near the front window, mortally wounded, and he died within a few minutes from the injuries thus received. The evidence shows that the bullet wound causing’ the death of Jones was from the gun of John Sheridan, the police officer.
‘ ‘ This action was brought against the city of Detroit, John Sheridan, and the defendant, C. F. Smith Company. A directed verdict was had at the opening of the case upon motion of the city of Detroit. The court submitted special questions to the jury in the case of the plaintiff against Sheridan, the police officer. The jury answered that question, that there was no negligence on the part of the officer in the use of his fire arm in the shooting of Jones. The answer released the defendant Sheridan from liability and a judgment of no cause of action has been rendered for Sheridan. The court submitted three questions to the jury, which'are as follows:
" ‘Question No. 3: Did the defendant store company fail to maintain and operate its store in a reasonably safe manner as a reasonably prudent merchant would have maintained and operated his store?
“ ‘ Answer: Yes.
" ‘Question No. 4: If you answer question No. 3 "yes,” then answer this question No. 4: Was the failure of the C. P. Smith Company to maintain and operate its store in a reasonably safe manner, as a reasonably prudent merchant would have maintained and operated his store such a cause as operated to produce the particular consequences, that is, the injury and death of the plaintiff’s decedent, Charles Jones, without the intervention of any independent unforeseen cause without which such injury would not have occurred?
“ ‘ Answer: Yes.
“ ‘Question No. 5: Did plaintiff’s decedent, Charles Jones, do anything while in the store whieh contributed in any degree to the injuries he received in the store in question?
“ ‘Answer: No.’ ”
The questions involved for our determination are: first, did the defendant, C. F. Smith Company, by its manager, in permitting the officer to secrete himself in the store, exercise that degree of prudence .which a reasonably prudent merchant would have exercised under the circumstances.in this case; and second, if it was negligence on the part of the defendant company to permit the officer under the facts and circumstances of this case to secrete himself in the store, was such negligence the proximate cause of the injuries here complained of? The jury answered both of these questions in favor of plaintiff.
The plaintiff contends that the defendant by permitting the officer to secrete himself in the store to await the arrival of a bandit, who might or might not come, created a trap, and insists that “he who creates a trap is liable for damages. ’ ’ The decisions cited by appellant relative to traps are not applicable to this case. The word “trap” as defined by Webster’s New International Dictionary (Deference History Ed.), is as follows:
“(1) A device, as a pitfall, snare, or machine that shuts suddenly as with a spring, for taking game and other animals: a gin. (2) Hence, any device or contrivance by which one may be caught unawares, stratagem; snare; gin.”
(1) Was the act of defendant’s manager in permitting a police officer to be in hiding within the store, such officer being there in the exercise and performance of his duties, either to prevent the commission of a crime or to apprehend and arrest a known or unknown bandit, a tortious one ? If it was a wrongful act, then the plaintiff can recover, providing such negligence was the proximate cause of the injuries complained of. (2) If such act on the part of the manager constituted an act of negligence and rendered unsafe the store of defendant, then was such negligence the proximate cause of the death of decedent, without the intervention of any independent, unforeseen cause, without which his death would not have occurred?
The trial judge answered both of these questions in the negative, and a careful review of all of the facts and circumstances in this case, as disclosed by the record therein, convinces us that he was right.
The police officer, John Sheridan, was acting as permitted by the law, and in compliance with an order of his superior. .The police officer was there for a dual purpose: first, to prevent the commission of a crime; and second, to apprehend an enemy of the law if he should appear. The officer was performing-a legal and regular duty, and the jury in freeing him from liability found that he was not negligent. It was the legal right of the officer to take the life of Ferrell, the bandit, or to attempt to take his life, to prevent said bandit from tailing his (the officer’s) life. It was by virtue of his sworn duty to uphold the law that he acted as he did to effectuate an arrest.
The record is convincing that officer Sheridan was not in defendant’s store on the day in question at the request of defendant or any of its agents. We quote from the testimony of one of plaintiff’s witnesses, Lieutenant Bock:
“Because of an epidemic of holdups in the last two or three weeks preceding that date, in that precinct, Sheridan was detailed to the C. F. Smith store at 451 Harper. My instructions to him, were to conceal himself in such a position where he could see anyone that came in, and, in case of a holdup he could apprehend the bandit or try to prevent the holdup. * * *
“I never at any time, discussed holdups with the officials of the C. F. Smith Company, nor to my knowledge did anyone in my precinct. * * *
“Other officers were stationed at other stores on that particular night. All had specific instructions to conceal themselves and to apprehend the holdup man in case he came in, or to prevent the holdup. I did not send officer Sheridan as a private protector of the C. F. Smith money or goods.”
With this convincing proof that neither the defendant nor its agents had any control over' officer Sheridan, or that he was acting under any instructions from defendant, there was no relationship of respondeat sv,périor, and the officer in attempting to arrest the bandit, and in the gunplay which resulted, was acting on his own initiative in an attempt to protect his own life and the lives of those who were in the store, and the jury by their verdict found that his conduct was not wrongful, that he was not negligent, although, it was his own independent act, not intentional of course, that resulted in the death of plaintiff’s decedent.
The act of defendant’s manager in permitting the police officer to be in the store, even though secreted, was only the act which we would expect of any law-abiding citizen desirous of preventing crime and apprehending those guilty of criminal acts. It is indeed much to be regretted that loss of life was one of the consequences in this attempt to prevent the commission of a crime and arrest of a criminal. The record certainly does not disclose that such loss of life or injuries might be contemplated, foreseen or expected, either by the defendant’s manager or the officer who fired the fatal shot.
As was so well stated by Judge Ferguson in the granting of defendant’s motion:
‘ ‘ The same thing * * * could have happened in this case, had the officer been anywhere in the store, or had the officer been passing after the bandit had entered the store. It would be extending the rule of negligence too far to say this defendant was negligent and that this store was not a reasonably safe place to do business when it had an officer of the law in it. Many business places have placed armed guards and officers in their places of business for the protection of customers and the enforcement of the criminal law. To permit a recovery in this case would be to say that such conduct was illegal, and that it was negligence to aid in the administration and enforcement of the criminal law.”
Judgment affirmed, with costs.
Fead, C. J., and North, Wiest, Butxel, Bushnell, Sharpe, and Potter, JJ., concurred. | [
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Sharpe, J.
Plaintiff sold to the Ottawa Manufacturing Company certain merchandise between February 8 and April 21,1934, to the extent of $1,880.85 and now brings suit against defendant, one of the stockholders of said company. The Ottawa Manufacturing Company was incorporated in January, 1930, with Frank Smitton, husband of defendant, one of the incorporators. He served as director and vice-president until his death, February, 1932. On his death, defendant became the sole owner of the-1,500 shares of stock that had been held jointly by them.
At the stockholders’ meeting held in February, 1933, the defendant Was elected a director of the corporation and at a directors’ meeting held the same day was elected vice-president. In February, 1934, defendant was re-elected to both offices, but was not present at either meeting. The annual reports of the company for the years 1933 and 1934 were made by the proper officers of the company and received at the office of the secretary of State but unaccompanied by the privilege fee on each occasion, and were therefore not filed. The statute (Act No. 327, § 82, Pub. Acts 1931) requires the filing of these annual reports and the payment of these fees. Section 87 of the above act provides that, “Any officer or officers of such corporation so in default who has neglected or refused to join in making of such report and/or pay such fee shall be liable for all debts of such corporation contracted during the period of such neglect or refusal.”
It is the claim of plaintiff that defendant was elected a director in February, 1933, and on the same day was elected vice-president and re-elected in 1934 and that by virtue of the failure or neglect of the corporate officers of the Ottawa Manufacturing Company to file their annual reports with the secretary of State, the liability of defendant became fixed as to merchandise sold to the company during the period of February 8 to April 21,1934.
The defendant claims:
1. That she was not and is mot a director of the corporation for the following reasons: She did not give a proxy to vote her stock, nor give any instructions to elect her director; she did not accept or agree to accept or act in the position of director; she did not act in the position of director; and she was not present when the meetings were held ‘although the minutes show she was present;
2. That she is not and never was an officer of the corporation for the following reasons: she was never elected to that office, never accepted any office, and never performed nor was ever requested or required to perform any of the duties of any office in the corporation; and the minutes upon which her alleged election as vice-president by the board of directors is based are erroneous, but, even if correct, would be illegal because they attempt to give effect to an illegal delegation of authority of a director;
3. That before an officer or even a director of a corporation becomes snch and makes himself chargeable with the duties of that office he must accept the office, otherwise he is not an officer.
The trial court found in favor of the defendant and also made the following finding of facts:
“The evidence shows conclusively that she was not personally present at either meeting but that a Mr. Harry Marshall was present representing her interest. The evidence also shows conclusively that she was elected vice-president without her knowledge or consent and without the knowledge or consent of her representative. In fact her representative could not act as her proxy at a directors ’ meeting. * * *
44 She was not present at either meeting but at the stockholders’ meeting was represented by Mr. Marshall. Her re-election as vice-president was again without her knowledge or consent or that of her representative. In fact, neither she nor her representative ever knew that she ever held the office of vice-president, nor did she ever do any act or perform any duty as an officer of the company. ’ ’
We have read the record carefully and agree with the trial court’s finding of facts. Defendant never authorized anyone to elect her a director or vice-president; she never accepted that position; she was never notified that she had been so elected; she took no part in the management or operation of the corporation’s business; she was never notified of or attended any meeting of the board of directors; nor did she sign any papers that would be incumbent upon one holding such a position.
4 4 The person who never accepted the office of director, but was simply held out as such by others without his knowledge, cannot be held liable for any failure on the part of the board to comply with the statute.” 2 Thompson on Corporations (3d-Ed.), p. 1010, § 1450.
“The theory of the law is that the officer should show his willingness to serve by acceptance of his appointment. The selection of a person as an officer without his knowledge will not make him, such officer unless he afterwards indicate his acceptance either expressly or impliedly, — as, by acting as an officer.” 2 Thompson oii Corporations (3d Ed.), p. 1091, § 1499.
“To make one an officer of a corporation, his consent, as well as an appointment or election is necessary. A person who is elected without his knowledge, and who does not accept the office, or act as an officer, is not an officer, although he may have received stock after his election. * * * In a Kentucky case, the court said: ‘One elected to an office must accept it in some way before he can be said to have become an officer. And he must accept it during the term for which he was elected. Holding over applies only to officers who were elected and installed during the term.’ ” 2 Fletcher Cyclopedia Corporations (Perm. Ed.), p. 71, § 314.
The record fails to show that defendant was an officer or director of the Ottawa Manufacturing Company at the time claimed by plaintiff.
Judgment of the lower court is affirmed, defendant may recover costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Potter, and Chandler, JJ., concurred.
Bramblet v. Commonwealth Land & Lumber Co., 26 Ky. L. Rep. 1176 (83 S. W. 599). — Reporter. | [
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Grant, J.
The defendant is a graded school-district, with five trustees. Plaintiff had been employed as a teacher in the school during the latter part of the school year 1891. It is claimed that she was employed under a written contract dated June 27, made pursuant to a resolution of the school board on June 20, for the ensuing-school year, commencing in September. She presented herself in the schoolroom on the morning of the opening of school, to perform her contract, but was informed by the director that another teacher had been employed. She also appeared on the second and third mornings for a like purpose, but on the third morning was denied permission to enter the school-house. She claims that she made proper efforts to obtain like employment in other schools, but failed. At the close of the year she brought this suit for breach of the contract, to recover as damages the salary of $400, mentioned in it. The court directed a verdict in her favor. The facts will be stated in connection with each point raised by the defense.
June 20 a meeting of the school board was held, at which all the members were present. A resolution was adopted, by a vote of three to .two, to employ plaintiff as principal for the ensuing school year at a salary of $40 per month. June 27 The contract was made, signed by three members of the board — the moderator, assessor, and one trustee — and by the plaintiff. It is insisted that the contract is void because not signed by the director, under How. Stat. § 5134, subd. 4, which makes it the duty of the board to employ qualified teachers, and to require the director and moderator to make contracts with them on behalf of the district. This point is ruled against the defendant in Crane v. School-Dist., 61 Mich. 299. It is not in the power of the director and moderator to defeat the action of the board by refusing to sign a contract authorized by it.
The contract was valid, though made prior to the annual school meeting. The old board had the right to employ teachers for the ensuing year. Tappan v. School-Dist., 44 Mich. 500; Cleveland v. Amy, 88 Id. 374. The reasons for the rule are fully stated in Tappan v. School-Dist. The statute providing that the annual meeting may be changed from September to July does not affect the rule.
After the annual election in July, at which two new trustees were elected, and on July 18, the board met, and by resolution rescinded the action of the old school board in hiring teachers for the ensuing year. July 20 notice of this action was mailed to the plaintiff, and she admits having received it. For this action no reason was given. It was not in the power of the subsequent board to rescind a contract which was legally made by the old board, without some valid reason therefor. These school contracts are governed by the same rules as other contracts, and, when once legally made, are equally binding upon both parties thereto. Neither can violate them without compensating the other for the damages sustained.
Plaintiff introduced in evidence two certificates, one a third and the other a first grade. The first-grade certificate showed that she was qualified to teach in any school-district in this State for four years. These were objected to as incompetent. The objection now made is that there was no proof that they had been issued and signed by the secretary and chairman of 'the board that issued them. If the defendant then claimed that there was a defect in the certification, it was its duty to 'point it out upon the trial. Technical objections of this character cannot be taken advantage of under a general objection of incompetency and immateriality. Krolik v. Graham, 64 Mich. 226; Wood v. Weimar, 104 U. S. 786.
No evidence was introduced on the part of the defendant as to any efforts made by plaintiff to secure the like employment elsewhere, nor as to her opportunities for doing so, except that which was elicited from the plaintiff’s cross-examination. Upon receipt of the letter notifying her of the resolution of the board attempting to rescind the contract, she at once replied that she should insist upon keeping the contract, and that she would be present at the beginning of the school year for that purpose. She testified that between the time of the receipt of this letter and the opening of school she inquired of some personal friends in Livingston county, where she lived, if they knew of any vacancies in the graded schools of that county. She made no application, because she knew of no vacancy. Most graded schools employ their teachers before the close of the school year in June. After September 7 she made several applications for positions in graded schools, but did not find any. She made no applications in ordinary district schools.
The law does not require .that the plaintiff should have sought or accepted service of a different grade or character from that in which she was employed. Her testimony was uncontradicted, and in no manner impeached. The court therefore was right in holding that she had done all that the law required her to do in- attempting to find other employment. Wood, Mast. & Serv. § 127. A plaintiff may rest his ease upon proof of a contract of service, its breach, and damages, which are determined by the contract price of the services. The defense that he was engaged in other profitable employment, or might have had other similar employment, is an affirmative one, and the burden of proof is upon the defendant. 2 Gfreenl. Ev. § 261a. If an employer sees fit to discharge his employé without legal excuse, it is equally within his power to seek, and, if he find, to offer, other similar employment to such employé, or to furnish evidence to the jury that such employment might, with reasonable effort, have been obtained. When he has been guilty of the wrong, the law 'casts the burden upon him to show that the employé has not, or need not have, suffered damages.
When a master rescinds a contract of service before the time agreed for the commencement of such service, the ■ servant has his choice of two courses, — he may consider and treat the contract as rescinded, or he may treat it as still existing, and tender performance at the proper time. Howard v. Daly, 61 N. Y. 362. The same reasoning does not apply to a rescission before the time fixed for the service to commence that does to a discharge from service. In the latter case the servant is presumed to be out of employment, and it is clearly his duty to accept other similar employment; but in the former case he is not presumed to be out of employment, and cannot therefore, in reason, be required to seek other employment to cover the future period. If, however, as in the case of teachers, they are taking their vacation for lest and recreation, they cannot legally be called upon to abandon these, and seek employment for the coming year. Plaintiff was therefore justified in notifying defendant that she would insist upon her contract, and be ready at the proper time to perform it.
The court rejected the question, “Did you ever study geometry?” This was one of the studies named in the course of study in the high school department. This was offered for the purpose of showing the incompetency of plaintiff to perform her contract. The course of study was introduced in evidence, and shows that geometry was an optional study of the spring and winter terms in the tenth grade. ' This was the only evidence offered to show incompetency, but perhaps it is sufficient to raise the question of the right to defend on this ground. Plaintiff’s certificate showed that she had passed an examination, and was qualified to teach in this particular school. Undoubtedly, the school board; upon application made to it, has the right to require further examination of the applicant, to determine whether or not it will employ him. That was not done-in this case. Plaintiff had already taught in this school for some time. Both she and the board were familiar with the course of study. She made no concealment as to her qualifications. Her certificate entitled her to teach, if the board saw fit to employ her. Under these circumstances, we are of the opinion that the board had no right to rescind the contract, even if it had been done upon the ground of alleged incompetency. It is not claimed that the board was not aware of her qualifications at the time the contract was made. She had the right to enter upon the service, and have her competency determined by the service rendered.
It is a hardship upon the district to be compelled to pay for services which were not rendered, and, upon the contrary, it is an equal hardship upon the plaintiff to be thus thrown out of employment. The defendant is responsible for the hardship through'the action of its- officers,, and must therefore suffer the consequences.
Judgment affirmed.
The other Justices concurred.
How. Stat. § 5046. | [
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Hooker, J.
Plaintiff appeals from a judgment of not guilty, rendered in an action brought by him for libel against the defendant, the publisher of the Jackson Patriot.
The publications complained of grew out of a transaction between the plaintiff and one Stillwell, the traveling agent of a Chicago house, from whom the plaintiff had previously bought some varnish. Being asked to pay for the same, a difficulty arose between himself and Stillwell, which was followed, later in the day, by an assault upon Still- well by the plaintiff upon the street. The court instructed the jury that—
“ The various publications set forth ■ in the plaintiff’s declaration contain the following statements, which are libelous per se: In the article pleaded in the first count, the statements that the plaintiff was a cowardly assailant, and that the attack upon Stillwell was brutal and unmanly, were each libelous. The article set out in the second count charges the plaintiff with cowardice. That charge is libeh ous. The article set forth in the third count in substance charges the plaintiff with making an assault on Stillwell by belaboring Stillwell over the head with a heavy horsewhip, and without provocation. This was libelous. The article charged in the fourth count is libelous per se, in charging the plaintiff with having attempted to horsewhip a crippled Chicago traveling man, of the name of Stillwell, for light provocation or no provocation at all, and with having sneaked up and taken Stillwell unawares; and also in calling the plaintiff a guilty scoundrel. 'And, in the article upon which the fifth count is based, the charge that the assault upon Stillwell was brutal and unmanly, and that the plaintiff acted in a cowardly manner, w,ere each libelous.”
The court then continued as follows:
“ There are no other distinct statements in the various publications declared upon which are libelous per se, and no- others upon which the plaintiff can rely as a cause of action; but you are at liberty to consider the entire publications declared upon, and read in evidence, for the purpose of explaining the parts which I have referred to, and in affecting the question of damages.”
The counsel for the plaintiff assign error upon this, and contend that the articles were libelous per se in the following particulars, viz., as to plaintiff’s being indebted to the house of which Stillwell was agent, as to Stillwell’s going there to collect a bill, and as to plaintiff’s having deducted a certain amount from a bill which he was owing, without authority. Plaintiff asserts that these publications imputed dishonesty to him. The words referred to by plaintiff are found in several counts, viz.:
In the First Count:
“The cause of the trouble was a dispute over $1.25, which Hanaw (said plaintiff meaning), who is connected with the J. W. Hewitt Cart Company, deducted without authority from a bill for varnish rendered by Mr. Stillwell's house. Mr. Stillwell characterized the proceeding as a ‘.dirty, Jew trick."'
In the Second Count:
“Lawyer Hewitt spoke at some length upon what he conceived to be extenuating circumstances. Mr. Stillwell, he s^id, had angered Mr. Hanaw (said plaintiff meaning) past all forbearance, by characterizing his action in deducting $1.25 from a varnish bill as a ‘dirty, Jew trick."'
In the Third Count:
“Detroit Journal: Ferd. Hanaw' (said plaintiff meaning), a Jackson carriage builder, owed a Chicago concern a bill, and their traveling man, J. M. Stillwell, went to collect it. Hanaw (said plaintiff meaning) would not pay unless Stillwell knocked off $1.25 for alleged defects in materials, and Stillwell told Hanaw (said plaintiff meaning) it was a ‘ dirty trick' to try and beat the house. He then went his way.''
In the Fourth Count:
“ Grass Lake News: * * * It seems that Hanaw (said plaintiff meaning), without authority, deducted $1.25 from a bill of varnish which Stillwell was endeavoring to collect from the Hewitt Cart Company, who have the first-named party (said plaintiff meaning) in their employ.''
In the Fifth Count:
“Lawyer Hewitt spoke at some length upon what he conceived to be extenuating circumstances. Mr. Stillwell, he said, had angered Mr. Hanaw (said plaintiff meaning) past all forbearance, by characterizing his action in deducting $1.25 from a varnish bill as a ‘dirty, Jew trick.' * * * The cause of the trouble was a dispute over $1.25, which Hanaw (said plaintiff meaning), who is connected with the J. W. Hewitt Cart Company, deducted without authority from a bill for varnish rendered by Mr. Stillwell's house. Mr. Stillwell characterized the proceeding as a ‘dirty, Jew trick,' which naturally angered Mr. Hanaw (said plaintiff meaning), who took revenge, as above stated, an hour or two after the stormy interview at*the cart works.”
It will be observed that each of the publications- referred to was stating the cause for the assault, some of them being copied -from other papers, and some purporting to be the language of plaintiff's counsel upon the trial of an assault and battery case growing out of the difficulty, wherein the plaintiff was convicted. They are, in every instance, connected with the more important statements concerning the assault, which seems to have been the subject of the publications. They nowhere charge the plaintiff with dishonesty, or assume to determine the question of the justice of Stillwell's claim. In several of them the words are coupled with aggravating language on the part of Stillwell, and taken as a whole, either separately of collectively, they fairly apprise the reader that the assault grew out of a dispute over an alleged indebtedness. We think the judge was right in saying that they were not libelous per se.
Error is assigned upon the refusal of the court to give to the jury plaintiff's third, fifth, seventh, and ninth requests to charge. No useful purpose will be subserved by incorporating these requests, and it Will be sufficient to say that we think the third, seventh, and ninth were properly refused, Avhile the fifth Avas covered by the general charge.
Error is assigned upon the following language of the charge:
“ The burden of proving justification is upon the defendant. The question, then, for your determination in this regard, accurately stated, is this: Has the defendant shoAvn, by a preponderance of the evidence, that all the libelous statements were true as a matter of fact? It is sufficient for the defendant to justify so much of the defamatory matter as constitutes the sting of the charges. It is unnecessary to refute and justify every Avord of the libelous matter, so long as the substance of the charges be justified. If you find from the evidence that the substance of the imputations which I have charged you are libelous have been proved true, a slight inaccuracy in one of their details will not prevent the defendant succeeding, providing the inaccuracy in no way alters the conception of the charges, and would have no different effect on the reader of the paper than that which the literal truth would have produced if printed. If you find that the truth as shown by the evidence, and the charges which I have instructed you were libelous, are not materially variant, but are substantially the same, and would not produce a different effect on the reader, — that the effect on the reader of .the Patriot would be the same, whether the libelous charges were published or whether the literal truth -as shown by the evidence had been published, —you should regard in that case the defendant’s justification as complete, and the plaintiff cannot recover. But, if you find to the contrary, then the plaintiff is entitled to your verdict for the consequences of all libelous statements which have not been justified.”
Plaintiff’s counsel assert that this language was. too general, and that the judge should have called the jurors’ attention to various facts which they allege appeared upon the trial. It is doubtless within the discretion of the circuit judge to refer in his charge to the testimony, so long as he does not expressly or impliedly voice his opinion upon questions of fact, or give undue prominence to any fact or circumstance. We.have examined the charge, and find it exceptionally lucid and comprehensive. In our judgment, there is no reason for believing that the jury misunderstood or failed to comprehend the law applicable to the case.
The judgment of the circuit court will be affirmed.
The other Justices concurred. | [
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Sharpe, J.
June 18, 1935, defendant insurance company issued a fire insurance policy to plaintiff on a frame building used as a dance hall on the north side of Sand Lake, Newaygo county, and for an additional premium the policy was extended to cover loss or damage by windstorm, cyclone, or tornado to an amount equal to but not exceeding that covering loss or damage by fire.
The structure insured was a two-story building, the lower portion being used as a bath house. The dance hall was 40 by 60 feet with a rear lean-to 10 by 20 feet for the orchestra. It was built in 1934, facing south, and close to the shore line of a lake that was about one-half mile long and one-fourth mile wide. The roof was round with a supporting arch through the center. The frame was built of two by fours and four by fours, the roof was constructed of matched lumber with heavy tar and felt paper. On January 11, 1936, it was discovered that the building had been damaged. Part of the south half of the roof was down on the dance floor, the rear or north portion of the building was only slightly damaged, the east Avail had fallen somewhat to the east, and the south section of the roof extended over the south wall and lumber and timbers were scattered as far as 25 feet from the original wall of the building.
Plaintiff began suit for damages, the cause Avas submitted to a jury and a verdict rendered for plaintiff. At the close of plaintiff’s proofs, defendant made a motion for a directed verdict on the ground that there was no issue of fact to be submitted to a jury. This motion was denied as well as a motion for a new trial. Defendant appeals.
The trial court in submitting the case to the jury gave the following instruction as his interpretation of the meaning of the word “windstorm” as found in the policy of insurance:
“The word or expression ‘windstorm’ is to be distinguished from the word ‘wind.’ The word is defined as a storm characterized by high wind with little or no precipitation. As used in the policies in suit it should be considered as something more than an ordinary gust of wind, no matter how prolonged and it takes its meaning, measurably at least, from the other words with which it is associated, that is, tornado and cyclone, but it need not have either the cyclonic or the twirling or whirling features which usually accompany tornadoes or cyclones; but it must be more than an ordinary current of air no matter how long continued. In other words, it must assume the aspect of a storm that is an outburst of tumultuous force, and unless the plaintiff has shown that the damage to this building was caused by a windstorm, by a preponderance of the evidence, that is, by evidence that is more convincing to you than the other evidence, then your verdict must be for the defendant.”
The only question for our consideration is, whether the building was blown down by a windstorm within the meaning of that expression as used in the insurance policy and as defined by the trial court.
Plaintiff submitted evidence to the effect that the building was well and substantially constructed in 1934; that a witness who lived 300 feet east of the building saw it standing at 5 p. m., January 10th; that he went to bed about 10 p. m., and during the night was awakened by a noise caused by the rattling of the paper on the roof of the house in which he lived; that the next morning he was told that the building had blown down; that he noticed that part of the roof on the south side of the building was on the dance floor; that other parts of the building had fallen on the floor, while the gable appeared to be blown away from the building.
We have examined the evidence carefully and from the manner in which the building fell we do not find any evidence that a windstorm was the cause. Nor do we find in the rattling of the tar paper or the falling of a tree 80 rods awTay from the dance hall any evidence of a windstorm.
In view of the fact that the burden of proof lies with plaintiff to show that the damage was caused by a windstorm as contemplated in the insurance policy, and there being no proof to substantiate plaintiff’s claim we are constrained to reverse the judgment without a new trial. Defendant may recover costs.
Fead, C. J., and North, Wiest, Butzel, Bushnell, Potter, and Chandler, JJ., concurred. | [
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North, J.
This is an appeal in the nature of certiorari to review the action of the State board of registration in medicine in revoking defendant’s license to practice as a “drugless healer.”
In 1924 defendant was granted a license by the Michigan State board of registration in medicine as provided in 2 Comp. Laws 1929, § 6739, subd. 3, reading as follows:
‘ ‘ The board is authorized to issue a license or certificate of registration to any person who desires to practice a system of treatment of human ailments or diseases, and who does not in such treatment use drugs or medicines, internally or externally. * * * A practitioner under this subdivision shall not be permitted to use in any form the title of ‘doctor’ or ‘professor’ or any of their abbreviations.”
A notice was served on defendant requesting him to appear before the board on June 10, 1936, and show cause why the license issued to him to practice drugless healing should not stand revoked or suspended for a limited time because of his having used the title “doctor;” for having issued and mailed on, to-wit, September 2, 1935, a communication and distributed cards upon which the title “Dr.” appears; for having exceeded and violated the terms and conditions under which he was licensed to practice by administering treatments not within the scope of the authority conferred by said license, specifically in the case of one Otto Fischel and also of other persons at divers times; and for having on the, to-wit, 5th day of August, 1935, represented; himself to be qualified to practice medicine.
Defendant appeared with his counsel. He was the only witness produced and at the time he was called to testify his counsel consented to his giving testimony. The use of the term “doctor” was admitted by defendant’s counsel and it was also admitted that defendant had distributed and circulated letters and cards referring to himself as “Dr. Wm. Wicker.”
The testimony shows that plaintiff is an ordained minister of the Christian Spiritualist Association; that his healing methods are both religious and drug-less healing; that his drugless healings were performed by manipulation of the muscles and nerves of the body. Much of the rest of the defendant’s testimony is taken up with examination as to his qualifications to diagnose and treat various diseases enumerated in a circular letter issued by defendant. Defendant’s counsel offered numerous objections to this testimony on the ground that the charges preferred did not involve a determination of defendant’s learning or professional skill and therefore such inquiry was beyond the scope of this hearing, but the testimony was taken over his objection.
After taking defendant’s testimony the hearing was concluded and'the matter taken under advisement. No objection was raised by defendant’s counsel to the fact that- other witnesses were not produced. The State board of registration found William Wicker guilty of: 1. Using the title ‘ ‘ Dr., ’ ’ representing himself as a physician; 2. Advertising of grossly improbable statements; 3. Failing to limit his practice to the scope of authority conferred; and an order was entered that his license stand revoked. On appeal from such order of the State board of registration in medicine defendant reviews by writ of certiorari in this court.
The notice served upon defendant did not contain a charge that he was guilty of the “advertising of grossly improbable statements.” Some testimony was taken which might be held sufficient to establish a charge of this character had it been made against defendant. But in reasonable fairness to one cited to appear-and answer specific charges, he should not be charged with one type of misconduct and on hearing be convicted of another and wholly different type of misconduct not contained within the charges made and served upon him. In the instant case it is a fair, and perhaps a necessary, construction of the record that, until after his hearing was concluded, the case taken under advisement and the adverse ruling made against him, defendant was in no way advised that he was charged with unprofessional conduct in “advertising of grossly improbable statements.” For this reason revocation of his license on this ground cannot be sustained.
The notice served upon defendant charged him with having exceeded and violated the terms and conditions under which he was licensed to practice by administering treatments not within the scope of his license. As to this portion of the charge it may first be noted that it is not sustained by any testimony and, secondly, (as is contended by defendant’s counsel) it is too indefinite to be used as the basis of a lawful hearing of this character.
“In proceedings of this kind it is not necessary that they be stated with that exactness required of court pleadings. It is sufficient if they inform the defendant with substantial certainty in what manner he has been guilty of unprofessional and dishonest conduct.” In re Van Hyning, 257 Mich. 146.
“The person charged is at least entitled to: * * * A reasonably definite statement of the charge or charges preferred against the accused.” Hanson v. Michigan State Board of Registration in Medicine, 253 Mich. 601.
Careful review of this record shows the only charge established against defendant which is sufficiently stated in the notice served upon him was that he unlawfully used the title “Dr.” As hereinbefore noted, such use was admitted. But appellant contends (as he did at the hearing before the board) that it was not within the scope of the authority of the board to revoke or suspend his license for this improper use of the term “doctor” or abbreviation “Dr.,” notwithstanding the provision of the statute above quoted. This contention is based upon the specific provisions found in the sixth subdivision of 2 Comp. Laws 1929, § 6739, which in part reads as follows:
“The board of registration of medicine may refuse to issue or , continue a certificate of registration or license provided for in this section, to any person guilty of grossly unprofessional and dishonest conduct. The words ‘unprofessional and dishonest conduct,’ as used in this act, are hereby declared to mean: ’ ’ and here are added nine subdivisions (a to i, inclusive) defining the specific things which within the terms of the statute, constitute “unprofessional and dishonest conduct.”
In this manner the statute governing the power of the board has provided express limitations. Beyond such express limitations the board has no power to discipline. A reading of the statute, which we have not quoted in full, will disclose that neither expressly nor by fair implication can the improper use of the word “doctor” or the abbreviation “Dr.” be found to be included in any of the subdivisions of the statute defining and limiting what constitutes ‘ ‘ unprofessional and dishonest conduct.” It follows that the board, which is a purely statutory body having only statutory powers, was without authority to suspend or revoke defendant’s license because of his improper use of the word “doctor” or the abbreviation “Dr.”
We attach no significance to the fact that defendant, who was voluntarily sworn and testified, was the only witness produced upon the hearing; nor are we of the opinion that there is any merit to appellant’s claim that his testimony was taken under duress. It is unnecessary to give consideration to other questions raised by appellant.
The order of the board of registration in medicine revoking defendant’s license is set aside and held for naught. Costs to appellant.
Fead, C. J., and Wiest, Butzel, Bushnell, Sharpe, Potter, and Chandler, JJ., concurred. | [
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Potter, J.
Plaintiff filed bill for divorce against defendant September 3, 1935. Defendant filed an answer and cross-bill. Plaintiff’s right to a decree of divorce was not contested. Defendant offered no testimony. There is no contest over plaintiff’s right to a divorce here.
The only question in' dispute arises over the trial court having- set aside a quitclaim deed from defendant to plaintiff of real estate, their then home, held by them as tenants by the entirety.
Defendant left home July 6, 1935, and about two weeks later sent to his wife a quitclaim deed of his interest in the property in question. There is no testimony of fraud, undue influence, coercion, want of consideration, or other thing tending to invalidate the deed in question.
Defendant could terminate the tenancy by the entirety by a conveyance of his interest in the land to his wife. 3 Comp. Laws 1929, § 13069.
The deed in question purports to have been made for a valuable consideration, — and even though it was a purely voluntary conveyance, it would be valid as between the parties. Draper v. Brown, 153 Mich. 120; Wipfler v. Wipfler, 153 Mich. 18 (16 L. R. A. [N. S.] 941); Coleman v. Coleman, 239 Mich. 139.
The deed was valid. That part of the decree of the trial court setting the same aside and dividing the real estate between the parties is set aside, with costs to plaintiff.
Fead, C. J., and North, Wiest, Btjtzel, Btjshnell, Sharpe, and Chandler, JJ., concurred. | [
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Wiest, J.
In February, 1935, Henry A. Green was employed by Sears, Roebuck & Company to perform carpenter work in the company store at Pontiac, and plantiffs claim that, while about such work on the 13th day of February, 1935, a wood sliver entered his left middle finger, and blood poisoning ensued, causing his death 10 days later.
Defendant prosecutes review from an award to plaintiffs, as dependents, contending there was no competent evidence supporting the finding' that the injury arose out of and in the course of Mr. Green’s employment. There were no witnesses to the claimed accident. The injury, in and of itself, was not severe and Mr. Green continued to work on February 13th, and 14th, and on February 15th, stated to defendant’s local superintendent that he had met with an injury. The usual report of an accidental injury was made, but there was included therein the statement:
“Employee claimed on 2/15/35 that he ran a splinter in the third finger of his left hand while at work on 2/13/35. No witnesses to accident. No previous notification or knowledge of accident by employer.
“Nature and extent of injury in detail — On 2/15/35 employee did not report for work. His wife reported by telephone that he was unable to work due to swollen hand and arm. Employer instructed employee to report to the store for medical examination and attention. The employee did so, and was turned over to Dr. Chauncey G. Burke, the company’s physician, for examination and treatment. The physician found the man’s finger considerably swollen and the left hand and arm somewhat swollen. Employee stated he had suffered considerable pain from the arm during the night. He then reported for the first time that he had run a sliver in his finger while at work on 2/13/35. * * *
“It is understood that this report shall not be construed as an admission that the employee was disabled or died as the result of an accident arising out of and in the course of his employment or that a compensable accident occurred within the meaning of the provisions of the workmen’s compensation law.
“The employer (self-insurer) denies that any accident arising out of and in the course of the employment of the employee occurred as claimed, and denies that any compensable accident within the meaning of the workmen’s compensation act occurred, and denies that the employee was disabled or died as the result of an accident arising out of and in the course of his employment.”
Counsel for plaintiffs stress the report of the accident and minimize the negation therein as of no consequence.
The report of an accident may or may not furnish •competent evidence of the happening of an accident, but a report expressly negativing any knowledge of an accident, except by repute or hearsay, and denying that such an accident occurred, cannot be considered prima facie evidence of the happening of such an accident in the course of employment. In such a case it is but hearsay in origin and so remains unless reported as an unqualified fact.
Statements made by the deceased to the doctor two days after the alleged accident as to particulars thereof cannot be considered probative evidence for the physician was not in the employ of defendant, except as particular cases were sent for his attention. What the deceased said to his wife upon his return home, after ending his day’s work, relative to the happening of the accident, was hearsay and inadmissible.
‘ ‘ Evidence of the narrative of a past fact, to establish the existence of that fact, is inadmissible.” 10 Modern American Law, p. 336.
The wife of the employee could not be called to testify to what her husband told her, if he were living, in support of his claim of an accident, and the bar is not’ lifted by the fact of his death.
Undoubtedly, Mr. Green suffered an accident, but it was of such a common nature that it might have happened anywhere and at any time.
The local operating superintendent made a report to defendant of the claimed accident and at the hear ing was a witness and testified:
“He (Mr. Green) came into the office, he complained. of soreness of his finger and on being asked what the cause of it was hke said that he believed it was from a splinter ran in his finger; he didn’t say where and he didn’t say when.”
The department held that:
‘ ‘ The effect of this report, inasmuch as the defendant had it within its means at that time to investigate the circumstances surrounding the accident, and must be presumed to have done so, is to establish prima facie an accidental injury. ’ ’
The presumption could not exist in the face of the testimony.
There was no competent evidence from which a finding could be made that the injury claimed arose out of and in the course of the employment, and the finding of the department was contrary to the rules of evidence stated in Reck v. Whittlesberger, 181 Mich. 463 (Ann. Cas. 1916 C, 771); Ginsberg v. Burroughs Adding Machine Co., 204 Mich. 130, and Kelly v. Ford Motor Co., ante, 378.
The award is vacated, with costs.
Fead, C. J., and North, Btjshnell, Sharpe, Potter, and Chandler, JJ., concurred. Btjtzel, J., did not sit. | [
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Montgomery, J.
. Action was brought in the court below upon a promissory note given by the defendant, payable, to the plaintiff or order. The defense set up was that the plaintiff was not the owner or holder of the note at the time the suit was begun, but that the same was owned and held by plaintiff’s wife, Eva Hoil, who is the defendant’s daughter. Trial was had before a jury, and they found specially—
1. That the note was never indorsed by Warren M. Hoil.
2. That the plaintiff was the owner of the note.
3. That, at the time of the commencement of the suit, the note was in the possession of Eva Hoil, plaintiff’s wife, who claimed to be the owner.
The plaintiff offered testimony tending to show that he kept the note in a commode drawer in his sleeping room, and that it was taken from this drawer, and had not since been recovered by him. Ehe further testimony tended to show that the note was' taken by his w.ife, who is the daughter of the defendant, and who left 'the plaintiff’s home, and returned to live with defendant.
There are numerous assignments of error, the first relating to the refusal of the court to permit further cross-examination of the plaintiff, which, it is claimed, would have shown that the note was in the possession of Mrs. Hoil; second, that the proofs of the loss of the note were not sufficient, at the time parol evidence of its contents was received to justify its introduction; and, third, that the court, erred in instructing the jury that it was a question of law whether the note was lost.'
We think plaintiff’s testimony was sufficient to justify the court in receiving evidence of the contents of the note; and the other assignments of error become immaterial if, as a matter of law, the plaintiff was entitled to recover upon the note, notwithstanding the fact that it was in the possession of Eva Hoil, the defendant himself having introduced testimony tending to show this fact, and contended all the way through the case that such was the fact.
It is strenuously insisted by the defendant that, until the note is delivered up to. be canceled, the plaintiff is not entitled to maintain an action upon it; and the case of McKinney v. Hamilton Estate, 53 Mich. 497, is relied upon as authority to sustain this contention. In that case the instrument was a negotiable instrument, which was said by the Court to be in the possession of another person, claiming title to it, and having the usual marks of owner ship. The proceeding was a claim against an estate, and the one in whose possession the note was had also presented a claim against the estate, upon the same instrument, for an allowance. The Court, by Mr. Justice Campbell, said:
“ The rule has always been settled that a person who seeks to recover on such a written agreement as to the oné involved here must be prepared to produce it and have it before the court on the trial, so as to be properly marked and impounded, if necessary, and indentified with the judgment, and delivered up if satisfied. This rule had no exceptions, unless, by the order of a court of equity, on full indemnification, the owner who had lost it should be permitted to sue without its production. Our statutes have supplied a similar remedy in the same suit; but unless a plaintiff sues as on a lost note, and brings himself within the exemption afforded by equity or by the statute, the rule is fixed.”
As applied to the facts of that case, the rule stated is unquestionably correct, and in accord with authority. But the limit of the reasons should be the limit of the rule. Accordingly, at the common law, the plaintiff was not required to furnish indemnity when the note was not negotiable, or when payable to order and unindorsed.. See Daniel, Neg. Inst. §§ 1481, 1483, and cases cited; Bank v. Brown, 45 Ohio St. 39; Hopkins v. Adams, 20 Vt. 407; Bank v. Tillman, 12 Ala. 214; Rogers v. Miller, 4 Scam. 333; Dean v. Speakman, 7 Blackf. 317; Moore v. Fall, 42 Me. 450; Price v. Dunlap, 5 Cal. 483. The same reason which forbids recovery on a lost negotiable note is that which prevents recovery on a note which the plaintiff shows himself, for any other reason, unable to produce. The result to the defendant is precisely the same in either case. If the note be thereafter produced, he may be subject to suit, and the prima facie right is in the holder. • But this is not true of the failure to produce an unnegotiable note, or one payable to plaintiff's order, and not indorsed. There is no presumption of any title in a third person, either if its loss be shown, or if it be shown that the plaintiff is still the owner, and the note in the manual custody of another, not invested with the indicia of ownership. There is no greater probability of perjury in the one case than in the other.
In the present case the plaintiff was required to furnish indemnity, and did so. The defendant is fully protected, and it is no hardship to him to treat the note as a lost note, within the statute.
As we have pointed out, we think, at the common law, plaintiff’s recovery could not be defeated by the fact that the note was in the possession of another person.
The judgment will be affirmed.
The other Justices concurred. | [
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Hooker, J.
One Samuel W. Bishop executed to the plaintiff two promissory notes for $200 each. To these notes he forged the name of the defendant Crall. For this crime it appears Bishop was convicted, and sent to the penitentiary. Plaintiff and his attorney went one night, about 11 o’clock, to the house of the defendant Orall, and, under threats then made by them, he was induced to pay the notes. Orall afterwards sued plaintiff to recover the money so paid, on the ground that it was obtained from him by duress, and recovered judgment. Plaintiff then asked to have that judgment against him set aside, promising to pay the amount and costs if that was done. The judgment was set aside. Plaintiff paid Crall the amount and costs thereof, and received back from him the notes here in controversy. Plaintiff thereupon brought this suit against Bishop and Crall, declaring upon the common counts alone. Defendant Crall demanded a bill of particulars, which was furnished, and contained only copies of these notes, with the statement that they constituted his cause of action in the case. Defendant filed an affidavit with his plea, denying the execution of the notes.
Upon the trial, plaintiff sought to recover against Crall solely upon the ground of an estoppel. The estoppel is based upon the plaintiff's testimony that the defendant Crall once told him that the notes were all right; that he would stand by them, and -see them paid. This conversation took place March 3. The payment by defendant to plaintiff under duress was made March 28. The notes .were received back from Crall August 12, when plaintiff paid the amount of the judgment Crall had recovered against him.
We have carefully examined the evidence, and think that it does not show a state of facts which can be held to give rise to an estoppel. The notes were forgeries, and there is evidence that the defendant promised to' pay them. The evidence is not very clear that the plaintiff was misled into the belief that the signatures were genuine, 'though perhaps that question was a proper one for the jury. But an estoppel cannot exist unless one is misled to his injury by reason of his belief in and reliance upon the representations alleged, and we find nothing of the kind. here. Palmer v. Williams, 24 Mich. 328. We are not referred to any evidence tending to show that the plaintiff lost any opportunity to collect from Bishop, or was in any way worse off when he was told by the defendant that the notes were forgeries than he was at the time the promise to pay was made. It is argued that he might have attached the property of Bishop, but the charge alone is cited to support the. proposition. No proof is referred to, showing that he had either opportunity or desire to make his debt by attachment against Bishop.^
It is contended that under the rule laid down in the case of Gooding v. Underwood, 89 Mich. 187, 190, and Pearson v. Hardin, 95 Id. 360, it was necessary to set up the estoppel in the declaration. It is the settled rule in Michigan that in equity cases an estoppel in pais must be pleaded, where it constitutes the basis of a right to sue and ground of relief, or is relied upon as a defense. Cicotte v. Gagnier, 2 Mich. 381; Moran v. Palmer, 13 Id. 367; Connerton v. Millar, 41 Id. 608; Dale v. Turner, 34 Id. 405. With the exception of the two cases cited, it is believed that it has not, in this State, been held necessary, in actions at law; and these cases are like the one at bar, where the respective causes of action were based solely and entirely upon estoppel. In England it was formerly no uncommon thing to plead an estoppel by way of defense. Indeed, where the scheme of pleading was designed to eliminate unnecessary questions, and reduce the case to a single issue, it was a natural and proper course, and some cases have held that it was necessary to plead an estoppel of record. A similar practice prevailed to some extent in cases of estoppel in pais, and it seems to have been thought advantageous to do so, instead of proving it under the general issue. Needler v. Bishop of Winchester, Hob. 220a; Treviban v. Lawrence, 2 Ld. Raym. 1051; Sanderson v. Collman, 4 Man. & G. 209; Darlington v. Pritchard, Id. 783; Veale v. Warner, 1 Wms. Saund. (Ed. 1871) 576, and note. In some of the American states, an estoppel in pais can be given in evidence only when pleaded. Clauser v. Jones, 100 Ind. 123; Heirs of Wood v. Nicholls, 33 La. Ann. 744; Ransom & Co. v. Stanberry, 22 Iowa, 334; Noble v. Blount, 77 Mo. 242; Warder v. Baldwin, 51 Wis. 450. But at common law it seems to be settled that an estoppel in pais need not be pleaded, and, whatever difference in the effect may have once resulted from a failure * to plead it, none is now recognized. Sanderson v. Collman, 4 Man. & G. 220, 222; Freeman v. Cooke, 2 Exch. 662.
In many instances it is impracticable to plead estoppels, as they first come to light upon the trial, in answer to evidence not anticipated. That is perhaps not true in the two cases named, or in this case; but a case can easily be imagined where the claim of forgery might first come to the knowledge of the plaintiff upon the trial, and if a plaintiff were not convinced of its truth he might not care to amend his declaration if the opportunity were given. Again, it is somewhat illogical to say that the estoppel constitutes the cause of action. On the contrary, as shown in Pearson v. Hardin, it tends to establish the obligation alleged by way of an admission, which is receivable in evidence to establish the signature, which admission becomes conclusive of the fact when all of the elements of estoppel are present. We think, therefore, that the adherence to the rule mentioned would be unwise, and that these cases should be overruled in this particular.
The judgment must be reversed, and a new trial ordered.
McGrath, O. J., Lon® and Montgomery, JJ., concurred with Hooker, J.
Grant, J.
I can see no good reason why the same rule should not apply at law as well as in equity, where the sole ground of action is an estoppel. That it must be pleaded in equity is conceded. The object of pleading is to inform the defendant of the cause of action against him, and the ground upon which a recovery is sought. In Gooding v. Underwood, 89 Mich. 187, 190, the plain issue presented by the declaration was the acceptance of an order. In the present case it was the making of a( promissory note which was known by the plaintiff, before he brought suit, to have been.forged. Clearly, therefore, he could not maintain an action on the note itself, as against the defendant. It by no means follows that in every case an estoppel must be pleaded, and it may be ■conceded that plaintiff’s counsel correctly state the general rule, that, where no opportunity to plead an estoppel is given, it may be given in evidence under the general issue. But this cannot be said of either Gooding v. Underwood or the present case. It certainly must be very rare that the forgery of an instrument declared upon can come to the knowledge of the plaintiff at the trial. Under our practice, unless the execution of the instrument declared upon is denied under oath in an affidavit filed with a plea, its execution is admitted, and the plaintiff’s prima facie case is made upon the production of the writing. Plaintiff, in such a case, has had no opportunity to plead an estoppel, and, whatever the defense set up upon the trial, the plaintiff may reply an estoppel without pleading. This rule seems to me to be founded in good sense.
But this is solely a question of practice, which should be settled, whenever possible, by the unanimous decision of the Court. I therefore yield to the opinion of my brethren in the establishment of the rule that it is not necessary to plead, an estoppel. | [
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Long, J.
On the last day of February,' 1892, James L. Gilbert, a produce dealer of Chelsea, Mich., called at the office of the defendants in Detroit, and made a bargain for the sale of three car-loads of onions, to be delivered f. o. b. cars at Chelsea. It was agreed that the onions were to be similar to others which defendants had received from Gilbert the fall before. They were to be shipped from Chelsea whenever directed by defendants. Two car-loads ■ were shipped and paid for. The third car, it is claimed, was not accepted, but was received and sold by defendants for the purpose of realizing from the onions as much as possible for the benefit of Gilbert, and not as an acceptance. The defendants refused to pay for the last par more than was realized on the sale. Suit was brought by plaintiffs, and verdict and judgment rendered in their favor for the amount claimed by them.
Defendants’ testimony tended to show that their dealing was with Gilbert, and not with the plaintiffs; that they had had dealings with him the fall before, and knew nothing of his connection with the plaintiff firm, and were not advised that they were dealing with such firm at the time these onions were purchased, but that they were advised by Gilbert, at the time of the purchase, that Mr. Glazier' had advanced money on the onions, and would draw for it. On the part of the plaintiffs, Mr. Gilbert testified that he told defendants of this partnership,' and that the onions sold were the property of the firm. Upon this point the court directed the jury that the testimony showed that the property belonged to the plaintiffs, and not to Mr. Gilbert individually; and that the defendants had done nothing in the case, upon the faith of the onions belonging to Gilbert individually, which would estop the plaintiffs from setting up the ownership; and that 'therefore that question was eliminated from the case. This ruling is assigned as error. Defendants’ counsel claims that this question falls within the ruling of this Court in Peirce v. Closterhouse, 96 Mich. 124. It appeared in that case, however,, that the party through whom the contract was made claimed to have made it in his own name, and that he had no authority to make a contract which would bind the plaintiffs; but in the present case Gilbert was a member of the firm, and the firm actually owned the property in controversy. Gilbert, as a partner, had a right to make a sale, and bind the plaintiffs in the transaction, and defendants could set up the same matter of defense as they could set up had Gilbert sued in his own name. The court was not in error in thus directing the jury.
The more important question arises upon other parts of 'the charge. Defendants'’ testimony tended tó show that when Mr. Gilbert came to their office he said he had three car-loads or more of onions to dispose of, and wanted defendants to handle them; that Gilbert stated they were as good as those sold them the fall before; that defendants had a quantity of onions on hand, and told him, if he would give them time to take these, — such time as they could use them in shipping them out, — they would buy them, and made him an offer of 70 cents a bushel f. o. b. cars at Ohelsea, which he accepted; that the first car came and was disposed of, and the second was received and paid for, but defendants had some little difficulty in disposing of them, when they called Mr. Gilbert by telephone, and asked him to bring a sample of the onions, which he did a day or two afterwards; that these samples looked all right, except a few, which showed an indication of sprouting; that Mr. Gilbert was then told that he had better ship the car-load to defendants at Detroit, instead of Evansville, Inch, where they intended to dispose of them, as the onions would have to remain too long in the car if shipped to the latter place; that the onions were shipped to Detroit, and defendants found they were nothing like the samples shown them, but were soft, rotten, and “ mushy;” that they at once called Mr. Gilbert to Detroit, and he arrived there two or three days after; and that, while there, Mr. Gilbert told them they had better sell them out, but that he was not prepared to settle on the onions, as Mr. Glazier had advanced money on them; and that the onions were sold out, and defendants realized, net, for the whole car-load, $124.40. There is no dispute in the record, but that the defendants sold them to the best. advantage for all parties concerned.
The plaintiffs claim — and gave testimony tending to show the fact — that, when the order came from defendants for the purchase of these three car-loads, they were set aside and retained, to be shipped to defendants whenever they desired, and to such points as they desired; that two carloads were shipped, and were apparently all right; that, when the last car-load was loaded at Chelsea, the onions placed therein were sound and marketable in every respect. Mr. Gilbert testified for the plaintiffs that, at the time the arrangement'was made for the sale of the onions, they were stored in the warehouse in crates, — a bushel in each crate; that he told defendants, upon two occasions after the sale, that the onions ought to be shipped on account of the warm weather, which caused them to sprout easily, and that they were anxious to get them away; that two carloads were shipped, but that the last car did not go forward until about the 4th of April; that he had-the onions sorted over, and all the soft and unsound ones taken out. He admitted taking the sample to defendants, and testifies that the onions put in the last car were just as good as the sample. He admitted going to Detroit again at defendants5 request, and saw that the onions were in a bad condition. He says:
“ They were so much worse than I expected, I said that I would go home and consult my partners, and, if there was any proposition to make, I would make it; and I wrote him on the morning of the 11th that I had none; that the onions were his from the day I sold them. That is all the instruction I ever gave him.55
Upon all the testimony given, the court charged the jury substantially that a contract of sale for more than $50 had been made, and that, until a part was accepted, it would come under the statute of frauds, but when the first car was delivered, if they believed plaintiffs5 theory, it vested the title to the rest in the defendants; and, if they found that it was the intention of the parties that the title should pass at the time of the contract, then the plaintiffs,would be entitled to recover, if they also found that the onions, as they existed at the warehouse at that time, were equal to the onions which, were contemplated by the parties when they had the conversation respecting the sale. The court also instructed the jury that, if they believed the testimony of the defendants, they might infer from it that the title did not pass at the time of the acceptance of the first ear, but that the obligation was on the plaintiffs, at the time of the subsequent orders, to deliver onions of like quality as those which had been contracted for; that if they believed the contract was executory, and the onions were to be kept and furnished as good as those provided the fall before, up to the time defendants might thereafter order them, then they could inquire into the- condition of the last car at the time the onions were placed on board the car at Chelsea; that if the jury should find that the warranty extended to the time the onions were placed on board the car at Chelsea, and that they were up to the stipulated quality, plaintiffs could recover the full amount, but, if the onions were' not up to that quality, plaintiffs would be entitled to recover only their reasonable value. The court instructed, further, that if it was true that Gilbert examined the onions at Detroit, and ordered them sold in any event, then, if they were not up to the sample, defendants would be justified in refusing them, and plaintiffs would be limited in the amount of their recovery to the amount they sold for.
The court was asked by plaintiffs’ counsel to charge the jury that if they believed that there was unreasonable delay in ordering the onions, and by reason of this fact they depreciated in value, the defendants must suffer the loss. The court, in giving this request, added:
“ That would be true if you find, with reference to that, it was the intention of the parties that the three cars of onions should be sold as they lay there in Chelsea, and that the title of the onions had passed at that time; but if you find from the contract in question that it was contemplated that Lichtenberg should order the onions as he should thereafter sell them or desire them, and that the warranty should extend to the time of order, then that request would have no force. It all,depends upon what you believe the contract be.tween the parties was. Of course, under any testimony, the title of the onions would vest in Mr. Lichtenberg, subject to the right of rejection if the onions were not such as were called for, the moment they were placed upon the car at Chelsea.-”
The court was also requested to charge, by plaintiffs* counsel:
“If you believe the onions, when loaded into the car, were merchantable onions, then from the moment of the loading they were defendants* property, and they must suffer any subsequent deterioration.”
The court, in giving this, stated to the jury:
“That is true with this limitation, — that is, that the onions were such onions as were contemplated by the contract . between the parties, whatever you believe the contract to be. At all events, there was a performance at that time of the contract on the part of the plaintiffs; and if the 'deterioration occurred from the time the onions were delivered to the railroad company at Chelsea, down to the ■time they were delivered to Mr. Lichtenberg, why, then, the loss would be the loss of Mr. Lichtenberg, and not. the loss of the plaintiffs.”
It is contended that the court was in error in directing-the jury that, if they believed plaintiffs* theory, it was an executed sale of the whole lot when the first car was-delivered, and, if the onions were up to the sample, the plaintiffs would be entitled to recover the whole amount-claimed. In this we think the court was not in error. The plaintiffs had nothing further to do than to make; delivery when the defendants were ready to receive them. The onions were pnt in crates into the warehouse, and kept in that condition, awaiting the orders of defendants to send them forward. Everything depended .upon the^action of the defendants. If they had been destroyed by fire, it would have been the loss of defendants after they had accepted a part of them. The delivery and acceptance of one car was an acceptance of a part of the whole lot sold. They were not kept separate by car lots, but this car-load was a part of the whole, and its acceptance such as to bring the contract out of the statute of frauds. If the plaintiffs’ testimony was true, there was a sale of the whole lot, — a little more than three car-loads, as Mr. Gilbert expresses it, — and the title to the whole lot passed at that time. Whitcomb v. Whitney, 24 Mich. 486. This question was properly submitted to the jury. We find no error in the charge.
Judgment is affirmed.
The other Justices concurred. | [
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McGrath, C. J.
Replevin is brought for property seized upon an execution running against plaintiff’s husband. Plaintiff claims certain of the articles under a bill of sale executed by her husband to her, dated July 3, 1885. Other articles are claimed under instruments of later date, and still others are claimed to be her individual property, irrespective of either of the writings.
The bill of sale first mentioned was, at its date, filed with the town clerk, but no affidavit of renewal has been since filed. .Plaintiff’s husband testifies that it was given to secure the payment of certain notes held by the wife, ’and plaintiff testifies that the first bill of sale was “to secure her for those notes.” The record contains'no evidence tending to show that the articles claimed under this bill of sale were afterwards turned over to the wife as her property, and defendant was entitled to the instruction that, as to these articles, plaintiff could not recover.
The judgment is therefore reversed, and a'new trial ordered.
The other Justices concurred.
The judgment was rendered in a suit commenced September 12, 1890, for the amount due upon a note dated November 15, 1884. | [
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Hooker, C. J.
The plaintiff is receiver of a mutual fire insurance company, organized in the year 1885, under Act No. 78, Laws of 1883, and the amendments thereof (3 How. Stat. chap. 134a). In February, 1891, the affairs of the company were placed in the hands of the secretary as receiver, upon the petition of the State Commissioner of Insurance, at the instance of the directors of the company. Subsequently the plaintiff was appointed receiver. As such receiver he came into possession of a bond made by the defendants, who were at the time directors of the company, of which bond the following is a copy:
“Guaranty Bond.
"Know all men by these presents, that in consideration of the covenants and agreements herein contained to be kept and performed by the Manufacturers' Mutual Fire Insurance Company, of the city of Grand Bapids, county of Kent, and State of Michigan, we:
“ R. G. Peters, of Manistee, Michigan,
“Louis Sands, “ “ “
“ George H. Long, Grand Bapids, “
“ ffm. Dunham, “ “ “
“Elias Matter, “ “ “
“ William H. Fowler, “ “ “
—Are held and firmly bound unto the said Manufacturers’ Mutual Eire Insurance Company in the sum of one hundred thousand dollars, good and lawful money of the Dnited States, to be paid to said Manufacturers’ Mutual Fire Insurance Company, for which payment, well and truly to be made, we do bind ourselves, our heirs, executors, and administrators, by these presents.
“ Sealed with our seals, and dated the 1st day of January, A. D. 1890.
“ The conditions of this bond are such that it is made •for the purpose of establishing a reserve guaranty fund to the assets of the said Manufacturers’ Mutual Fire Insurance Company, and is to be drawn upon by the board of directors of said company whenever said board of directors shall deem it necessary to protect its policy-holders from assessments upon their deposit notes, to pay losses and expenses in excess of the cash assets of said company, at any time or times. The said Manufacturers’ Mutual Fire Insurance Company hereby agrees to pay to the persons giving this bond semiannual interest on the face of this bond at the rate of four per cent, per annum, and to reimburse said bondsmen for any amount or amounts which said company may from time to time draw on this bond, with interest at the rate of six per cent, per annum on such sums or sum drawn for the length of time retained by this company, as soon as the accumulated cash premiums and assets of the company will permit.
“It is also further agreed that the person or persons advancing money on this bond to said insurance company, and the persons bound by this obligation, shall be considered as creditors of said Manufacturers’ Mutual Fire Insurance Company to the amount of such advances and the interest on the same, as above agreed upon, and to the extent of all interest accrued on this bond.
“This bond may be canceled at any time by either the said insurance company or bondsmen, by giving one year’s notice of such intention.
“B.. G. Peters. [Seal.]
“ Louis Sands. [Seal.]
“ George H. Lons. [Seal.]
“ Wm. Dunham. [Seal.]
“Elias Matter. [Seal.]
“Wm. H. Foavler. [Seal.]”
Upon a petition made by policy-holders who had sustained losses, the court made an order that the receiver bring an action upon the bond, which Avas done. He. brings the case to this Court by appeal from a judgment in favor of defendants upon a verdict rendered by direction of the court.
By the terms of the act under Avhich the company Avas organized, its object Avas mutual insurance by manufacturers. Pajment of losses was assured by the payment of cash premiums and notes of the policy-holders, called “deposit notes or agreements,” which. Avere deposited with the company, and upon Avhich assessments Avere to be made to meet'losses and expenses. This is the only method provided by law for raising funds to meet the obligations of the company. The condition of the bond implies that the officers Avere to ■ torróav money of the obligors, to pay losses and expenses, Avhenever the cash assets were inadequate. The bond indicates that no assessment was to be made against the deposit notes at any time. A circular of the company, offered, but not admitted, in evidence, indicates, hoAvever, that the deposit notes were to be assessed to the extent of 20 per cent, per year, and it is asserted that the company advertised a guaranty fund of $100,000 as a protection against a greater assessment. It is manifest that, if the former inference is to be drawn, the bond Avas in pursuance of an arrangement not contemplated by the law, and, if the latter-, the schemes only differ in the degree that policy-holders were to be relieved from their statutory liability to assessment. All members of the company must be held to have knowledge of the law, and of the articles of association of the company, subject to which every policy is issued and received, and to know that any such management of the company would be unlawful. It follows that there is no opportunity for the application of the , doctrine of estoppel, and that the question of ultra vires may be raised by the defendants. Transportation Co. v. Car Co., 139 U. S. 60.
Furthermore, it is apparent that, if the defendants were required to advance this money to pay losses and expenses, they would then become creditors of the company, in which case it would be the duty of the company to repay them, with interest. Without determining that this company could under no circumstances borrow money, it is certainly true that the law does not provide for borrowing a fund wherewith to carry out a scheme like the one mentioned, or provide for assessments to repay it. If the law does not permit this, the defendants ought not to be required to loan money to the company or receiver. If, on the other hand, the scheme is lawful, the receiver must at once assess to repay.
But we think the arrangement was clearly void, and that, instead of relying upon the enforcement of a contract to loan the company money, the duty of the receiver is to proceed to assess the members according to law, for the purpose of obtaining the funds to pay the debts of the concern.
The court properly directed a verdict for the defendants, and the judgment is affirmed.
McGrath, Long, and Grant, JJ., concurred. Montgomery, J., did not sit. | [
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Montgomery, J.
Plaintiff brought an action for an injury sustained, while a passenger on one of defendant’s trains of cars, by a collision between the train upon which he was a passenger and another engine, in charge of an engineer in the defendant’s employ. The declaration alleges, in substance, that the engineer in charge of this wild engine, No. 48, “knew, or ought to have known, that he did not have time to reach Ramsey before said passenger train would pull out of Ramsey, going east, and that said engineer of said locomotive No. 48 attempted to make said run west to Ramsey without any order or permission from the proper officer of said defendant, and in violation of the rules and regulations of said company in regard to the running of trains upon said road; that, by the' rules and. regulations of said company, it was forbidden that any engineer or conductor should run his train or engine upon the time of any other train, and it was also forbidden that such engineer or conductor should run , his engine or train from one station to another, or from any point upon the line to another point upon the line, without permission or order from an officer of said company, called a ‘train dispatcher;’ that said collision was caused by the negligence, carelessness, and imprudence of said engineer of said locomotive No. 48, and by his said disregard and disobedience of said rules and regulations of defendant, and by said defendant not having and providing a conductor for said locomotive No. 48.”
The defendant demurred to this declaration, and its counsel state in their brief that there is not only no allegation of negligence on the part of defendant, but an affirmative allegation that the act causing the injury complained of was the act of the engineer alone, which the defendant could not possibly prevent, and which it had taken every possible precaution to provide against; and it is urged that while it may be conceded to be the general rule that a master is liable to a third person for the negligent acts or willful misconduct of the servant within the scope of his employment, and in doing that which is for the master’s interest, this rule does not go to the extent of holding the master liable where the act is that of the servant alone, and is outside of his duty, and is in dis obedience of the express orders of the master, and is not •done in the master’s interest; and it is further urged that the allegations show affirmatively that the act causing the injury complained of was the act of the engineer alone, in ■disregard of his duty, without any order or permission from the proper officer of the defendant, and in violation of its •¡.ules and regulations in regard to the running of trains.
If it is true that the act in question is to be held the act of the engineer, alone, and not one in the interest of the defendant, but to effect some purpose of the engineer in disregard of his duty, it was exceedingly unfortunate for the plaintiff that the engineer should have selected a track of defendant’s road over which another servant of defendant was driving an engine which propelled the car in which plaintiff was seated. We think it, however, a more reasonable rule to hold that the engineer was still in the line of his employment, although conducting the business of his master in a manner not authorized by the rules of the company. The case is too plain to call for extended ■discussion. The principles involved are somewhat discussed in the cases of Smith v. Webster, 23 Mich. 298; Cleveland v. Newsom, 45 Id. 62; Chicago & N. W. Ry. Co. v. Bayfield, 37 Id. 213; Goddard v. Railway Co., 57 Me. 213. See, also, 2 Ror. R. R. 820.
As the question is one which might have been raised upon the trial, and as counsel on both sides have presented us full briefs, we have thought best to 'pass upon the merits of the case. It is proper to say, however, that the order appealed from is not reviewable, and would not, under other conditions, be considered until it had been-followed by a final judgment.
The order will be affirmed, with costs.
The other Justices concurred.
Counsel cited in support of this contention, Whart. Neg. 168, 171; Tuller v. Voght, 13 Ill. 285; McManus v. Crickett, 1 East, 106; Johnson v. Barber, 5 Gil. 425. | [
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Hooker, J.
The plaintiff brought replevin against the defendants, who are husband and wife, for the recovery of a large number of chattels, which he claimed by virtue of a chattel mortgage executed by George Mead, one of the defendants. The wife did not sign it. Included in the mortgage were some horses, cows, and sheep.
The defendants attack the validity of the mortgage on several grounds, — among others (1) that it was made with intent to hinder, delay, and defraud creditors; (2) that it included exempt property, requiring the wife’s signature.
The mortgage named several persons as mortgagees, among them this plaintiff, and was given for an amount sufficient to cover their several and respective claims, notes being executed for each claim. The plaintiff had four such notes, — one for $32, a second for $186.19, one for $340, and another for $500. The plaintiff testified that Mead did not owe him the amount of the $500 note, and that he did not know why it was included.- Mead’s version was that there was some talk that one McNaughton, a creditor of Mead, “ was coming up to skin him,” and that this mortgage was then made; that at first they did not talk of its being-given for more than the amount due Watson, but they changed their minds, and gave it for the amount mentioned; that Mead said, “If I give it for that, I want your note back;” but he (Watson) said: “No; that wouldn’t be proper. We will take your note for $500, and I will give you a receipt; that will — If I accommodate you, and let you have some money, that will accommodate me.” This was done. The mortgage was filed, and after the expiration of a year, no ‘affidavit of renewal having been filed, McNaughton levied an execution upon four horses mentioned in the mortgage, and sold them upon execution sale to Mrs. Mead, who paid for them by giving McNaughton a mortgage upon them. Mrs. Mead now claims the right to attack the mortgage for fraud.
It is elementary that a mortgage made with the collusive intent to hinder, delay, and defraud creditors may be treated as void by the creditor, who may levy upon and sell the property, and the purchaser may raise the question upon the trial, if the goods are replevied. No question seems to have been raised over the regularity of the judg ment, execution, or sale. Mrs. Mead could attack the mortgage for fraud to the extent of the property purchased by her at the execution sale.
Again, How. Stat. § 6196, provides:
“Every such mortgage shall cease to be valid as against the creditors of the person making the same, or subsequent purchasers or mortgagees in good faith, after the expiration of one year from the filing of the same, or a copy thereof, unless, within thirty days next preceding the expiration of the year, the mortgagee, his agent or attorney, •shall make and annex to the instrument or copy on file as aforesaid an affidavit, setting forth the interest which the mortgagee has, by virtue of said mortgage, in the property therein mentioned; upon which affidavit the township or •city clerk shall indorse the time when the same was filed: Provided, that such affidavit, being made and filed before any purchase of such mortgaged property shall be made or other mortgage received or lien obtained thereon in good faith, shall be as valid to continue in effect such mortgage as if the same were made and filed within the period as above provided.”
It is contended that under this statute the mortgage had ceased to be valid as against McNaughton. See Cooper v. Brock, 41 Mich. 488; Briggs v. Mette, 42 Id. 12. But these cases seem to have been overruled. See Brown v. Brabb, 67 Mich. 17; Littauer v. Houck, 92 Id. 162; First National Bank v. Guntermann, 94 Id. 125; Wade v. Strachan, 71 Id. 459.
The trial court refused to submit the question of fraud to the jury. He also excluded the question asked 'the plaintiff upon cross-examination: “Did you know, at that time, that he was owing McNaughton?” This, was error. The answer should have been taken, and the question of fraud should have been submitted.
Counsel for defendants assert that the mortgage was void for another reason, viz., that it included exempt property. We cannot hold that the mortgage was wholly void for that reason. Doubtless, it was void to the extent of the exempt property. If , the wife . had replevied, she would thereby have made her selection. The mortgagee having replevied, there should be no difficulty in taking a verdict that would distinguish the exempt property, if the animals claimed as exempt were described in the testimony. As to the remainder of the property other than that purchased, and that exempt under the provision requiring her signature to the mortgage, she cannot attack the mortgage upon either ground; nor can her husband, who is not at liberty to set up his own fraud to defeat his mortgage.
Defendants further contend that, inasmuch as the mortgage was not due, the plaintiff was not entitled to the possession of the property, and therefore cannot maintain replevin.
The first assignment of error alleged is that the court admitted the chattel mortgage in evidence. This is based upon the ground that the mortgage is made to several mortgagees, and that one alone could not replevy. Na authorities are cited by counsel for the defendants in support of this contention, and there seems to be no reason why one of several mortgagees may not proceed to collect his debt by foreclosure, or to protect himself by seizing the property if in danger of destruction or loss, without ■joining others as plaintiffs without their consent, which he would have no right to do. His possession would be subject to the rights of the other mortgagees, but the mortgagor could not complain. Herm. Chat. Mortg. § 143; Burnett v. Pratt, 22 Pick. 556; Gilson v. Gilson, 2 Allen, 115; Lyon v. Ballentine, 63 Mich. 97. The mortgage was admissible.
The plaintiff bases his right to replevy upon the claim that the defendant George Mead had sold 250 bushels of wheat, and the lambs born subsequent to the time that the mortgage was made, and the wool sheared from the sheep, and applied the moneys obtained from such sales to his own use, instead of to the payment of the mortgage. This right to sell the mortgaged property was based upon a writing giving him authority to do so, provided that he applied the money received to the payment of the mortgage. If he sold property covered by the mortgage contrary to the conditions of the mortgage and accompanying license, the right to take possession inured to the plaintiff, by the express terms of the mortgage. As the wheat was covered by the mortgage, the misapplication of the money received from it authorized the plaintiff to bring his action. This being so, we need not consider the effect of the sale by defendant of the wool and lambs, or the effect of the execution sale, upon plaintiffs right to possession.
There are other assignments of error, which need not be discussed. We will only add that defendants* theory upon the subject of damages for the detention of property during the pendency of the action is erroneous. A notice accompanied the plea, under which defendants sought to recover damages for the loss of their farm. They claimed that by being deprived of their implements they could not put in any crops; hence they received no money, and could not make payments due on the farm, and they were, in consequence, compelled to deliver up possession, and surrender their contract of purchase, and, to quote, “ lost everything they had on earth.** Without attempting to lay down a rule, we mention this subject to prevent a possible error upon another trial.
The judgment must be reversed, and a new trial ordered.
The. other Justices concurred. | [
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Grant, J.
This case was tried before the court without a jury, and the findings are .as follows:
“ 1. That shortly after February 4, 1890, the plaintiff received a letter from one Mr. Harris, of Otter Lake, Michigan, requesting a loan of $25, and, in response to the same, plaintiff, on the 11th day of Fébruary, 1890, purchased of defendant’s agent, at Standish, Michigan, an express money order for $25, to. be transmitted to Wilson Harris, Otter Lake, Michigan, and that the money order1 for $25' was indorsed by him over to Wilson Harris, or order, on the same day,.and forwarded by mail to said Harris, at Otter Lake, Michigan.
“2. That said letter was taken from the post-office on the 12th day of February, 1890, by the son of said Harris, about 4 o’clock in the afternoon; that, prior to that time, Wilson Harris, after he was taken sick, and while he was competent to attend to his affairs, told his wife that he was expecting money from Mills, and directed her, when it arrived, to pay the same to Daniel Merrill, to apply on the rent of the farm then occupied by them, and, after said Harris’ death, his wife received said money on said order sent by Mills, and paid the same to Daniel Merrill, as directed by said Harris.
“3. That, after the death of Wilson Harris, said order was indorsed by Mrs. Harris, who obtained the face thereof of Tanner & Stark, who also indorsed it, and forwarded it through the bank to Detroit, where it was paid by the defendant company, February 19, 1890.
“4. That the defendant company never paid $25 to Wilson Harris personally, during his life-time, for the plaintiff, after the 11th day of February, 1890, and it never paid at any time, except as hereinbefore stated.
“The court finds, as a conclusion of law, that when said money order was indorsed, by said plaintiff to the order of said Wilson Harris, and transmitted to the said Harris by mail, said plaintiff parted with his interest in the money order and the money represented by it, and that, under the facts as found above, he cannot recover in. this action. Judgment is therefore entered in favor of the defendant.”
Plaintiff excepted to the second .finding of fact, because the court omitted to find that Harris, at the time of the receipt of the letter and order, was incompetent to do any business on account of sickness, and died at 11 o’clock p. M. of the same day. He also excepted to the third finding of fact, because the court refused to find that Harris never accepted the money order, or authorized any one to accept it for him. He also excepts to the conclusion of law, because the facts found do not support the judgment.
Hnless the incompetency of Mr. Harris to transact business on account of sickness operated to prevent the passing of the title to the order and the money it represented, such fact is immaterial. Harris, after having written plaintiff for the money, constituted his wife his agent to receive and disburse it, which she did, as directed. He was at that time competent. His condition at the time the order was received by his agent was immaterial. At his death the order became the property of his estate. Whether his wife rightfully or wrongfully disposed of it is a matter between her and the administrator, but not one in which the plaintiff is concerned. By the receipt and acceptance of the order by his agent, who was authorized to receive it, the title passed. -
Judgment affirmed.
The other Justices concurred. | [
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Grant, J.
The controversies in these two suits are identical, and are governed by the same facts. In this «opinion we will refer only to the case of Hovey v. Nellis.
The bill is filed to quiet the title to outlot No. 4 of the X. Moran farm in the city of Detroit. This farm was a marrow strip of land a few hundred feet wide, and extending back from the Detroit river about three miles. It was ■divided into 9 lots, numbered from 1 to 9, inclusive. Lot No. 9 lay farthest from the river, and included 60.53 acres. It was subsequently subdivided into 19 outlots, numbered '.from 1 to 19, inclusive. The controversy in this case -relates .to outlot No. 4.
Louis Moran, the owner of the entire farm, made his ■will in 1835, and died in 1836. He left, surviving, a widow and several children. He had made certain deeds of gift to his other children, aside from his son Louis, which he recognized in his will. All his real estate not deeded to .his other children he devised as follows:
1. To his wife, Catherine, for life.
:2. To his son Louis for life, charged with the support •©£ one of the testator’s daughters.
3. To his daughter-in-law Maria, wife of his son Louis, during widowhood.
4. “The remainder of my said real estate I give and ■devise to the children of my said son Louis Moran, and, if my said son Louis shall die leaving no children, then to any heirs according to law.”
Complainant claims by purchase through mesne conveyances from the devisees of Louis Moran, Sr. The defendants claim under the will as heirs of Louis Moran, Jr. It -is conceded that the devise to Maria is void under the ¡statute, but that it does not affect the validity of the remainder of the will.
Louis Moran, Jr., had three children, — the defendant (Caroline Nellis, Octavia M, Sylvester, and James L. Moran. 'JMrs. Sylvester died in November, 1861, leaving one child, the defendant Mary M. Beck. James L. Moran is dead, but the date of his death is unknown.. He had one child, who died in May, 1886. In 1845, Catherine Moran, the widow, and Louis Moran, Jr., and his wife, conveyed by deed all their interest in the land to the three children of Louis Moran, Jr., who were then minors. One J. B. Vallee was duly appointed their guardian. In *1847 the guardian filed a petition in the circuit court for the county of. Wayne in chancery, praying leave to sell their real estate under the provisions of the-statute. The proceedings taken thereunder were regular, and on November 16, 1849, pursuant to the decree of the court, a deed was duly executed by the guardian, conveying the land in question to John A. Damm and Joseph Grones, from whom complainant derives his title. Louis Moran,'Jr., died June 20, 1869, leaving as heirs his,two children, James L. Moran and Caroline Nellis, and his grandchild, Mary M. Beck. December 11, 1871, Caroline Nellis brought suit in ejectment against one Jacob Brown, who claimed under the guardian’s deed, to recover possession of “the undivided one-half of lot 4 of the Louis Moran farm.” No proceeding has ever been taken in this suit other than to file declaration, and proof of alleged service thereof upon Brown. By mistake the land in the deed to Damm and Grones was erroneously described as outlot 5, instead of outlot 4. It is conceded by the defendants that this was an error apparent upon the record, and corrects itself.
Complainant claims that, at the time of the deed to Damm and Grones, the title of this land was vested in the children of Louis Moran, Jr., and that, the proceeding in chancery to sell being regular, Damm and Grones became vested by the deed to them of the entire title in fee-simple. He also claims that, if this be not so, still he has obtained title by exclusive and adverse possession for more than 20 years. The defendants insist that the only estate held by these children under the will at the time of the guardian’s deed was a contingent remainder, and not a vested remainder, and that, while Louis Moran, Jr., lived, it was uncertain whether he would leave any children, and therefore it .was uncertain to whom the property would pass. They also insist that the ejectment suit brought by defendant Nellis intercepted the running of the statute of limitations. It is further insisted, on behalf of defendant Nellis, that, the mother of defendant Mrs. Beck having died prior to the death of Louis, Jr., she (Mrs. Beck) took no interest in the reversionary estate, and that the children of Louis surviving him, and not their issue, should take. On the contrary, it is insisted, on. behalf of Mrs. Beck, that she inherited the one-third which her mother would have inherited, to take effect upon the termination 'of the life-estates.
At the date of the will, and also at the death of Louis Moran, Sr., his son Louis had no children. James L. was born^in 1832, Caroline in 1838, and Octavia in 1842.
Jacob Brown purchased the land in 1867. The following year he took actual possession of the land under his deed. The proofs established an actual, hostile, open, and notorious adverse possession for more than 20 years previous to the bringing of this suit. This is sufficient to establish in complainant a good title, unless the ejectment suit above mentioned prevents.
It has been the policy of th§ courts to hold these estates vested at the earliest possible moment. Chancellor Kent states the rule as follows:
“ No remainder will be construed to oe contingent which may, consistently with the intention, be 'deemed vested.” 4 Kent, Comm. 203; McArthur v. Scott, 113 U. S. 340.
When Louis Moran, Sr., made his will, his son Louis had no children. He had divided the remainder of his property among his other children in anticipation of death. Manifestly, he intended that the property covered by the will should go to the issue of Louis, Jr., if he should have any. The contingency he desired to provide against was the death of his son without having had any children. It is unreasonable to say that the testator intended to cut oil the direct heirs of his son Louis, should Louis* children die before he did, leaving issue. There is nothing in the provision of this will from which it can be inferred that he intended to divert the estate, in any event, from the direct heirs of the children of Louis, Jr.
Our own statute declares when estates, are vested, and when contingent.. How. Stat: § 5529. It reads as follows:
“ Future estates are either vested or contingent; they are vested when there is a person in being who would have an immediate right to the possession of the lands upon the ceasing of the intermediate or precedent estate; they are- contingent whilst the person to whom, or the event upon which, they are limited to take effect- remains uncertain.**
Upon the birth of James L. Moran (1832), he, under this statute, was the person in being entitled to the immediate right of possession upon the’ceasing of the life-estates. He became possessed of a vested estate in remainder, subject to be reopened to let in after-born children. It was twice thus reopened.
It is provided by How. Stat. § 5551, that—
“Expectant estates are descendible, devisable, and alienable in the same manner as estates in possession.**
It is the policy of the law in America not to' tie up estates. Each of the children of Louis Moran, Jr., possessed an alienable estate, and the grantee of either, in the absence of limitations to the contrary, would succeed to the entire estate of the grantor, and take it subject to be reopened in the same manner as though the title had remained in the original devisee. The life-estates, by purchase, became merged in the vested estate in remainder. What interest was there then outstanding? Manifestly, none. Could any portion of their title be divested, and, if so, how? None of it could be divested except by the birth of another child; but this would not divert the entire title of either, but would only-take away so much of the title of each as would give the newly-born heir an e.qual interest with them. In our judgment, these conclusions are warranted by the statute above cited, and are sustained by a long list of authorities. Doe v. Perryn, 3 Term R. 484; McArthur v. Scott, 113 U. S. 340; Baker v. McLeod’s Estate, 79 Wis. 534; Wilson v. White, 109 N. Y. 59; Laggart v. Murray, 53 Id. 233; L’Etourneau v. Henquenet, 89 Mich. 428; Fitzhugh v. Townsend, 59 Id. 427.
Even if we were not correct in the conclusions above reached, still the complainant must prevail, for another reason. In L’Etourneau v. Henquenet, supra, it was expressly held that section 5551, How. Stat., applies to contingent estates, and that when alienated they are subject to the contingency by which they maybe defeated. It follows that, when such estates are held by minors, they may be sold'by their guardians under the direction of the court of chancery; otherwise, it would result that, however important and necessary it might be to sell such estates in order to provide a proper support and education for their wards, these estates would be unavailable for that purpose. Our statute is largely copied from that of New York, and under the like provisions it has there been held that such estates could be sold and conveyed under the direction of the court. Dodge v. Stevens, 105 N. Y. 585; Jenkins v. Fahey, 73 Id. 355. The proceeedings instituted to convey such interests being regular, the guardian’s deed issued in pursuance thereof conveyed the entire interests of the children to the grantees.
This disposition of the ease renders it unnecessary to discuss or determine the questions of laches or title by adverse possession.
Decrees affirmed, with costs.
. Long, Montgomery, and Hooker, JJ., concurred. Mc-Grath, C. J., did not sit. | [
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Montgomery, J.
The bank presented a claim against the estate, based upon a note made by E. K. Roberts, payable to Barnes Bros, or bearer, and by them indorsed in blank. This note was dated October 14, 1889, but, as the testimony shows, was given in renewal of one dated June 11 of the same year. The grounds upon which it is sought to charge the estate of Butler are that Butler was a partner of Roberts in conducting a certain fish business, and that the money was in fact borrowed for the copartnership, and went into the business. The relations existing between Butler, Roberts, and one Gauthier were somewhat considered in Purvis v. Butler, 87 Mich. 248, and it was there held that under the circumstances appearing in that case, and in this as well, Butler was a partner, and that as to any contracts actually made on behalf of that business, and particularly for any money actually borrowed for and put into the business, Butler was liable. Among other provisions of the contract was the following:
“Said Ephraim K. Roberts shall have the general management of the said fishery business for the benefit of all concerned in the property, and, to carry out the purposes of this agreement, said Roberts shall have authority to make all contracts of importance connected with said business, either in the name of said Gauthier or in his own name, as he shall deem best. He shall have entire and sole control of the finances of said business, including the sale and disposition of all products of said business, and the handling of all money that goes into or is made from said business, except as is hereinafter stated.”
The circuit judge directed a verdict for the claimant-for the amount of the note and interest. This action on his part raises the question as to whether it was conclusively shown that the money advanced by the claimant-actually went into the business, or whether the testimony adduced was subject to a construction which negatives the claim. The cashier of the bank admitted that he knew nothing of the fact that the note was given for the copartnership business at the time the note was taken, but that, on information obtained later, he filed the present claim.
The claimant called as witnesses E. K. Roberts, the maker, and one Reeves, who kept the books relating to the fishery business. On cross-examination by counsel for the estate, Roberts testified as follows:
“Mr. Butler didn’t know of the execution of this note at the time it was executed, — that is, I don’t think he did. Mr. Butler was aware, later, of the fact that I procured Barnes Brothers’ indorsement in the fishery business. At the time this note was executed, — either of these notes, the original or the renewal, — he was not aware of it, although he had solicited me to get some outside indorsement. He was not aware of the fact that I had procured Barnes Brothers, at this time, to indorse this note. I got.the money myself, — this $2,000. I put it in the fish business.
“ Q. I want to know what you did immediately at the time you got it. Did you deposit it in the bank?
“A. I don’t know as I can tell exactly. As I understand, the books of the concern are here, and they can .show.
“ Q. I want to know what you did when the paying teller handed you the money. What then did you do with the money? I don’t want to know what occurred a week or a day afterwards.
“A. I can’t tell you. I know I borrowed it for the fish business.
“ Q. I am not asking you that now. I want to know what you did with it at this time. Did yon put it in your pocket, take it to the office, or put it in the bank, or what?
“A. I don’t know.
“ Q. Don’t you recollect testifying before the commissioners on claims, in the claim presented by A. F. Wilcox, that you put that money in your pocket, and you were in the habit of carrying money in your pocket and about your person?
“A. I did that sometimes, and I might have done it in this case.
“Q. I ask you if you do not recollect that you testified before the commissioners on claims.
“A. I don’t recollect in particular, although I think in this particular case I kept the money myself, and turned in other cash items which represented the $2,000, although I am not positive. The books will show exactly what was done with it.
“Q. Will the books show whether you took this money, or some other money, and put it into the business?
“A. I think they will.
“Q. Was it not your habit, when you borrowed money, after you took charge of the fish business, to put that money into your own pocket, or into your own bank account, and then expend from your own pocket, or your own bank account, money for the fish business?
“A. I had some means of my own in_ the bank, and this fish business, occasionally we would get hard up,— that is, the fish business would, — and claims would come ■in that would need immediate payment. I would draw a : check for the payment of these claims.
“Q. On your personal account?
“A. On my personal account, or usually take the currency from my own pocket, — my own money, — and keep the'check myself until the bank account should be good for it, when I would draw -it.
“Q. You would loan money to the fish business, — you ■would advance money to the fish business?
“A. I would advance money to the fish business individually until money would come in.
“Q. Until such time as the fish business could pay it back to you?
“A. Until the bank account was good for it. I held checks — the fish business checks — against the bank.”
Mr. Beeves testified that the avails of the note went into the business, and very clearly accounts for every dollar ■of it, using the books to refresh his recollection. It appears that checks to the amount of $1,986.22 had been issued, and Boberts advanced the money on them, retaining the checks in his hands for a few days, and, when they amounted to this sum, discounted the note of which the one in suit is a renewal, and, instead of going through the form of depositing the money in the hank" and presenting the checks, turned in the checks in place of the money, and took credit for the difference between the amount of the checks and discount (some $40) and the amount of the note. Defendant’s counsel quote the testimony of Beeves, as follows:
“I kept full track of the bank account; o but, mind you, I neither deposited all the money got there, nor attended to all the discounts, but I kept track of the bank account. Here it is in my own handwriting.
“ Q. Now, you say you never saw the money. Was it ever brought to that fish office?
“A. Never brought there.
“ Q. You kept track of the bank account? Your banking was done at the Third National Bank?
“A. Yes, sir.
“ Q. Was that $2,000 ever deposited to the credit of the fish business in the Third National Bank?
“A. It wasn’t.
“ Q. Was any part of it?
“A. No, sir.
“ Q. Not a single dollar?
“A. No, sir.
“Q. So no dollar of that money was brought by Mr. Roberts to that office, and no dollar of that money was deposited to the fish account in its bank, — is that right?
“A. That is right.
“Q. You didn’t know that note was discounted except what he [Roberts] told you?
“A. No, I didn’t.
“Q. You had no personal knowledge of it?
“A. No.
“Q. And you got your knowledge from Roberts, did you not?
“A. At the time, of course.”
This testimony is in no way inconsistent with his previous statements. He nowhere claims that he was present when the note was discounted, but it does plainly appear that, on the same date the note was discounted, Roberts did voluntarily surrender and pay into the business the amount of the note, less the discount, and stated that it was in lieu of the cash received on the discount. It does not appear to be controverted that the note was discounted. The important question was, did Roberts turn into the business the amount of it? And his testimony, not being controverted, established the fact. "
Error is assigned on the refusal of the court to permit the defendant’s counsel to inquire of the witness Roberts as to what Reeves testified on the former trial. This ruling was clearly right. Until Reeves was made a witness on this trial, and the foundation laid for such testimony, it was clearly hearsay.
When Roberts was on the stand he was asked whether he ever made any advances to Gauthier to carry on the fishery business before the contract was made between Gauthier, Butler, and himself. This question was excluded. There was no error in this ruling. The situation was entirely changed by the contract referred to. The management of the business was vested in Boberts, and it would certainly afford no presumption that he would continue to advance money because he had previously done so up to a point' where it became necessary for him to take such precarious security as that afforded by this contract, except as such advance was made upon the security of the contract.
It is also insisted that certain of the testimony of Boberts was not admissible tinder the statute excluding a party from testifying to facts equally within the knowledge of a deceased party. But an examination of the record discloses that the counsel for the estate were the first to open up with the witness the subject covered by the testimony which they moved to strike out; and a further answer to the objection .is that, if* this testimony be excluded, there is still left sufficient uncontroverted testimony to have justified the circuit judge in directing a verdict. We do not wish to be understood as intimating that the objection would not have been sound under any circumstances. What we decide is that it is not available to appellant here.
We find no error in the record, and the judgment will be affirmed.
The other Justices concurred.
The hanking "business of the firm was transacted at the Third National Bank, and Mr. Roberts kept his private account at the Citizens’ Savings Bank. | [
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Blair, J.
This is an action to recover of defendant the amount of a sight draft on J. P. Scranton & Co. attached to the bill of lading of a car load of lumber consigned to plaintiffs’ order, and shipped by them over defendant railway, to be delivered to said Scranton & Co. upon payment of the draft. Defendant delivered the lumber to Scranton & Co. without payment of the draft, and defends this action upon the ground that Scranton & Co. were the true owners. The draft was for 1116.68, which was about half the value of the lumber in the car, and, according to plaintiff, represented the balance due on four cars of lumber. Plaintiffs succeeded to the fights of Andrews & Stearns, with whom the contract forthe lumber v/as made by Scranton & Co. It is agreed that Mr. Scranton came to Pontiac, where the lumber was, from time to time, made an estimate of the amount of the lumber in the piles purchased, wrote his name on the piles, paid the amount of the estimate, and had the lumber insured in his name.
Plaintiff Stearns testified:
“ At the time he made the various estimates, the estimate did not include the entire scaling of the lumber marked. It was to be paid for when it was delivered on board at Pontiac. The draft was attached to the last car, because I scaled the lumber myself. Mr. Scranton refused to come out and do it. I scaled it, and there was that much due us after deducting the payments he made, and I drawed the draft on that car for payment of that amount. * * *
“Under the agreement between Andrews & Stearns and Mr. Scranton, all of this lumber was to be of a grade of common and better. The mill culls should be kept out. The mill culls are the lowest grade, then seconds, then common and better. This was to be common and better. Sixty per cent, better, I think, in that neighborhood. I am willing to swear that all of this car was common and better, except a few pieces. He told me I could put them in at half scale. I didn’t set any price on the seconds. I didn’t scale them by themselves. I just scaled them half scale and scaled them with the rest. The first and seconds would run to the common over 60 per cent., nearer 75 than 60. It is not a fact that on that car of elm that I shipped them over six thousand feet were seconds and mill culls. Those poles that went on the last car were good grade of poles. * * *
“ It was agreed between us that, when the lumber was loaded, the difference of the scale should be paid us. * * *
“ When Mr. Scranton was out and looked this lumber over, it was being piled. He didn’t handle any of the lumber. He could see the ends and top. When he estimated this lumber, it was counted by the number of courses in making the estimate, and then he paid me the amount of the estimate and wrote his name on the pile. After that he had an interest in it, but not until it was scaled and the balance paid was it to be his. * * *
“When he estimated it, he said, ‘This will be my lumber.’ I said it would be his when he paid the balance. That balance had not been paid when this car on the 21st of November had been shipped. The only interest that I had in this car of lumber was for a claim of unpaid balance.”
Mr. Scranton testified:
“I first saw Mr. Andrews in Detroit the latter part of 1904. Mr. Andrews spoke to me there with reference to having me purchase some lumber. Mr. Andrews stated' that he would sell me this lumber, common and better, for $22 for the elm and $24 for the black ash, and there was some other lumber included. What I thought was about $35 common and better, and percentage of it was to run. He said this lumber would run 60 per cent, to common and better. He also stated that he didn’t want to sell me any seconds because he had a market for seconds. * * *
“I paid the amount of these different estimates. I wrote the number of tiers and the amount of feet that they amount to, and, after doing that, I marked the piles and wrote my name on them. I wrote J. P. Scranton & Co. on every pile several times. I said in every instance I put my name on it, I said: * This lumber is mine, and, if any trouble occurs to you people, this is my lumber. I am putting my money into it.’ They assented to it. I afterwards insured this lumber in my name. Nothing was said by myself or Mr. Andrews or Mr. Stearns at any of these conversations as to where the lumber was to be scaled. * * *
‘ ‘ I understood this lumber was to be scaled and inspected and the balance determined that was coming to Andrews & Stearns. I based that understanding on my general custom and rule. I don’t think there was any agreement that the balance due Andrews & Stearns, if any, should be determined at Detroit by a scale and inspection, but it was understood that after it was determined whether there was a balance that the boys should get their pay if there was a balance, and that I should get what there was coming to me. The price that I made them was f. o. b. the cars on Andrews & Stearns’ siding. I was to pay tbe freight.”
Defendant sought to show that the lumber was so inferior in grade, quality, and value to the lumber contracted for, that the payments made covered the value of the entire amount shipped, and there was therefore no balance due plaintiffs. The court excluded this testimony. The court also refused to permit defendant to show a general custom to inspect lumber at the place of reception by the consignee when the contract is silent as to the place of inspection. The assignments of error relate to one or the other of these rulings. The court excluded the testimony as to grade, etc., of the lumber for the reason—
“ That the title of the alleged true owner can be shown only by testimony of a clear, direct, and positive character as to the title and ownership by testimony that does not involve a collateral issue before the title can be determined. It is believed to be against public policy to allow a carrier, contrary to the terms of the bill of lading, to deliver property to every or any consignee who claims the quality or quantity is not as agreed by the consignor, because it will create great uncertainty as to shipments and bills of lading, and because it will greatly increase litigation, should carriers frequently avail themselves of such a privilege.”
We think it was error to exclude this testimony. The essence of defendant’s offer of proof was a showing that Scranton & Co. had paid in full for all the lumber purchased, even if the contract required such payment before title passed, as claimed by plaintiffs. The mode of proving payment is no different in a case like this than in a case between the parties to the original contract. As said by the. Supreme Court of the United States, the shipper “cannot confer rights which he does not himself possess, and, if he cannot withhold the possession from the true owner, one claiming under him cannot.” The Idaho, 93 U. S. 575.
If there was no balance due the plaintiffs, they were not entitled to recover. If they had sued Scranton & Co. for such balance or had replevied the property from them, the proof excluded would have been competent in their behalf, and it was equally competent in behalf of defendant. The court did not err in excluding the testimony offered to show a general custom. Each party testified to an express contract which excluded such custom, and the testimony was therefore immaterial and irrelevant.
The judgment is reversed, and a new trial granted.
McAlvay, C. J., and Grant, Montgomery, and Ostrander, JJ., concurred. | [
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Campbell, J.
Defendant was sued 'upon a note which he signed as joint maker with his brother C. S. Oaks in 1872. The note is in form joint and several. The defense was that defendant signed as a mere surety, and that C. S. Oaks was the principal debtor and had been given time by an extension to which defendant was not a party.
The testimony was uncontradicted that the money was lent to C. S. Oaks, and that the note was extended for a valuable consideration. There was nothing left for the jury unless there was some conflict. Plaintiff appeared as a witness and only testified that it was understood defendant was to be a joint maker. lie did not contradict the transactions of loan or extension, or the fact that C. S. Oaks was the principal debtor.
The note took the form which plaintiff said it was to take, and in one respect a more favorable one for him, by being several as well as joint. But the form of the obligation does not prevent a showing that one of the parties was a surety. He was bound by the obligation in the form which he adopted. But it is elementary law that a creditor who knows of the fact of suretyship must not violate the rights of the surety. That plaintiff knew the nature of the transaction was shown and not denied. Having taken the stand and not denied it, the jury could not regard it as matter of controversy.
Hpon the undisputed facts defendant was discharged, and no theories of law could lead to a different result.
The judgment must be affirmed.
The other Justices concurred. | [
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Campbell, J.
Plaintiff replevied a horse, lightning-rod wagon and harness from defendants, worth less than $200, which they held under an attachment levy against one Waldo E. Ilill. Plaintiff held under a bill of sale from Hill, prior to the attachment which he claimed was absolute, but which there was some evidence to show was held as security. The debt due plaintiff, whether paid or secured, was largely in excess of the value of all the property transferred. Plaintiff lent the property to Hill, who was using it in his business of selling and putting up lightning-rods when it was attached.
There are several questions presented by the record, but most of them become immaterial in view of the fact that if this property was Hill’s, it was used in his business and was exempt from execution, so that his creditors could not complain of any disposition he made of it. Buckley v. Wheeler 52 Mich. 1. This being so, plaintiff’s right, whether absolute or as security, was such that the attachment could not prevail against it, and the court below so held.
The other questions need not be considered.
The judgment must be affirmed.
Morse, C. J. and Ohamplin, J. concurred. Sherwood, J. did not sit in this case. | [
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Sherwood, J.
The plaintiffs in this case live in the township of North Plains, in the county of Ionia. Sarah A. Bichey is the widow of the late, Thomas W. Bichey who died in 1881, and the other defendants are their children; William Ii. and Carrie A., being minors, who join in the prosecution of this suit by their mother as next friend. In the year 1883 the plaintiffs all resided on a farm of forty acres of land, which they owned and occupied in common, the children living with their mother thereon. William took charge of' the farm-work, and with the mother and sisters carried on the farming. Upon the farm was a quantity of valuable standing timber. The defendant owned a farm adjoining plaintiffs’ land, and in January, 1883, without the knowledge of the mother or sisters, he -went to the plaintiff William, who was then about seventeen or eighteen years old, and obtained leave from him, and without any consideration whatever, to cut and carry away from the plaintiffs’ land forty-two trees, principally, oak and black ash, making logs about thirty feet long. Mrs. Richey and her daughters first learned of the defendant’s doings in the premises just as he drove away with the last load (|f logs, and as soon thereafter as she could see him and his servants notified him to keep off the land and cease his trespasses. Neither of the plaintiffs except William knew of the cutting of the timber until after it was done, and never authorized any person to give their consent to the cutting or removal of any portion thereof, and veiy soon thereafter brought this suit to recover the plaintiffs’ damages. The declaration is in trespass containing three counts. The plea was the general issue, with notice that the acts complained of were licensed by the plaintiff William IT. Richey.A trial was had in the Ionia circuit before a jury, and the verdict was directed for the defendant by the circuit judge. This direction was excejated to by counsel for plaintiffs, aifd this exception raises the only question necessary to be considered here.
We think the circuit judge erred in his ruling. The young man from whom the defendant claims to have obtained permission to commit the wrongful acts complained of was a minor and tenant-in-common with his mother and sisters of the property, and without any authority from them, or right in himself, to make a gift or sale or other transfer of the timber to the defendant, or to give a valid assent to the entry of the defendant upon the premises for any such unlawful purpose. William’s acts and doings in the premises were clearly prejudicial to his own rights and interests, and were void under all the authorities, and the testimony tends to show that advantage was taken oven of the license which it it claimed he gave. Schouler’s Dom. Rel. (3d ed.) § 403; Adam v. Briggs Iron Co. 7 Cush. 361, 368, 370; Fonda v. Van Horne 15 Wend. 631; Tyler on Infancy & Coverture (2d. ed.) 43; 1 Story’s Eq. Jur. § 241; Bing. on Infancy 9; Keane v. Boycott 2 H. Bl. 511; U. S. v. Bainbridge 1 Mas. 72; 2 Kent’s Com. 193; 1 Bing. Real Prop. 139; Oliver v. Wood roffe 4 M. & W. 653; Chandler v. McKinney 6 Mich. 217; Dunton v. Brown 31 Mich. 182; Soper v. Fry 37 Mich. 236; Barker v. Hamilton 3 Col. 291.
The case shows the defendant’s utter disregard of the rights of this widow and her children, which the law secures to them, and which it is the duty of the court to enforce and protect. Further discussion of the case would' be without profit.
The judgment must be reversed and new trial granted.
Campbell and Champlin, JJ. concurred. Morse, C. J. did not sit. | [
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Blair, J.
Complainant is the owner of certain farming lands in the township of Putnam, near the village of Pinckney, in said township. Defendant is the owner of a flouring mill property in the village of Pinckney. The mill was built as a water power mill in 1836, and has been in operation continuously since that time. The water power is obtained by damming Portage creek, which flows in an easterly direction through the village of Pinckney, and a short distance north of complainant’s land. The dam extends from the west side of the mill in a westerly and southwesterly direction for about 60 rods, and its lowest point is the south bank of the race for a distance of about 150 feet from the mill. The mill stands about 20 rods east of the highway, running south from the village of Pinckney. The wasteweir was about 35 or 40 rods west of the mill.
“ The greatest strain is on that portion of the dam toward the southwest end. The dam angles, after it passes the wasteweir, to the south. Prom the wasteweir to the mill it runs nearly east and west. There is more strain upon the dam at that point because it is exposed to the winds from the west more than any other place, and the great bulk of the water is right against that part of the dam, and the embankment is higher there. That was the lowest point in the ravine through which Portage creek runs, the natural water bed. The dam is higher at that point than any other from the surface of the soil. I would think it was 10 feet high at that point, wholly artificial, and, as we get farther to the west, the artificial portion of the dam is not so high. Same condition is true as you go toward the east. Between the wasteweir and the road and the bank is not high and runs off nearly on a level for some distance; then slopes gradually. The greatest strain on the dam is from the wasteweir to the west end, and, if the wind blew from the northwest, it would blow the water over against that portion of the dam. * * *
“Across the east end of the race, near the mill, there is what we call a ‘ weed rack,’ consisting of a timber about 8 inches by 8 inches in size, and 18 or 20 feet long, laying across the race from one bank to the other, with slats fastened onto it standing up and down in the water to catch the weeds that flow down the race. That weed rack is probably 6 or 8 feet from the engine house, which is a little building built at the west side of the mill. The race or pond at that point is probably from 16 to 20 feet wide. The race was a little narrower at the west end than at the east end, and at a point where the north and south road crosses the race it was probably 14 or 16 feet wide. * * * That wasteweir was opposite the pond, and about 20 rods west of this north and south highway.”
From 1882 to 1888 the mill was owned and operated by-Thompson Grimes and Frank D. Johnson. From 1888 to 1895 the property was owned by E. A. Mann, and from 1895 to 1896 by a man of the name of Parmalee. Thomas Birkett purchased the property in 1896 and owned it until 1901, when he sold it to the defendant Peters for $7,000. Birkett rented the property to one Klem in July, 1896, who operated it until the following spring, since which time until the sale to the defendant the mill was operated by Robert Erwin. The pond extends westerly from the dam about 1¶ miles, and the southerly bank is about 20 rods north of complainant’s land.
Between complainant’s land and the pond is a highway running east and west next north of his land, and then a strip of marsh, called in the record the “Haze marsh.” The marsh at the point where it enters complainant’s land becomes narrow and extends across the northeast part of the parcel, then broadens out on Monk’s farm, lying next east of complainant’s land, finally turning back upon the south end of complainant’s land. In the piece of marsh next to the highway, called the “front marsh,” there are some six or seven acres, and in the other piece, called the “back marsh,” some seven or eight acres. These two pieces of marsh are connected with that portion of the marsh upon Monk’s land, which consists of from 11 to 15 acres, making about 30 acres in the whole marsh on these two farms.
The mill was fitted for operation by steam after E. A. Mann went in. The mill was overhauled and a double set of rollers put in in 1883, “and in 1886 or 1887 put in full roller process.” The dam broke away under Klem, and under Erwin, about two years later. The dam also gave way under defendant.
“That was the first year I bought the property, four years ago last summer. Then there was a break in the dam just west of the wasteweir, and it went out for the length of about 40 feet on the top and sloping down to the bottom, and that we filled in with earth and drew dirt between that break and the cemetery hill on top of the dam. Don’t think we raised the dam at that time any from what it usually was.”
On the 11th day of August, 1905, complainant filed his bill of complaint, alleging that within the last 10 years the dam has at different times been repaired and likewise the wasteweir, and at each time of making repairs thereto the said dam and the said wasteweir therein has been built higher than it had been built before, the result being that it has caused the water in the said stream to rise higher in the pond and to cause the waters thereof to flood more land than it had formerly done; “that, until recently, none of the land described as belonging to your orator was flooded because of damming the said creek;” that since the repairs have been made in the last five or six years on the said dam and the said wasteweir a portion of the said lands are continually flooded and under water, rendering at least 10 acres of said parcel as wholly unfit for cultivation and of no value; that a large part of the remainder is kept wet and of less value for farming purposes; that a few weeks ago it became apparent to the owner that the dam and wasteweir were in need of further repairs, the water in the said pond was permitted to flow through the said wasteweir for the purpose of enabling them to make said repairs; that at the present time the defendant is engaged in making the said repairs; and that the wasteweir is wholly out, and that the defendant is about to place a new one therein, and—
“As your orator is informed and believes, is intending to build the said dam and the said wasteweir to such a height as to get a head of water as high as it has -been during the last two or three years and about three or four feet higher than it had been raised at any period of the mill’s history until within the last six or seven years; that if the defendant is permitted to build the dam and waste-weir to the height that he intends to build it that it will flood a large part of your orator’s land herein described, and do him irreparable injury.”
The answer denied all the material allegations of the bill, and averred—
“The truth to be that none of said land has been flooded because of damming said creek recently more than it was flooded for the period of 50 years and upward.”
It is conceded that whatever rights of flowage the defendant possesses have been acquired by prescription, and the principal question of fact in the case was whether complainant’s lands had been flowed to a greater extent during the 9 or 10 years preceding the filing of the bill than during the period theretofore. Upon this issue much conflicting testimony was taken. The circuit judge, after personally viewing the premises, in company with the parties and their attorneys, found—
“ That the milldam proper had been raised at different times so that at the present time it is somewhat higher than it was some years ago, but that portion of the mill-dam where the race is itself had not been materially raised to exceed three or four inches, or six inches at the outside, but it appeared to the court that the water had raised and had flowed back on the lands of the complainant to a greater extent than it used to. It seemed to me that this was caused from two or three causes combined. In the first place, in the last few years, we have had unusual wet seasons, and there had been a large amount of water turned into the millpond from the adjacent country; that, during that time, I think two different drains have been dug into the creek or stream that empties into the millpond, thereby causing a very large amount of water to flow into the stream, and the evidence on the part of the complainant and on the part of the defendant, or especially on the part of the defendant, shows this state of facts: That on former occasions, former years and during the spring when the snow was melting or during spring freshets, as it is called, the water would flow back on the land of the complainant, but as the spring freshet passed away it would recede, and during the balance of the year the land in question would be used for pasture land. But it would seem that during the last three or four years, at least, that the water has been kept up at spring height, you might call .it, all the time. For instance, at the time I was there, which was in February, I think, the water was back upon the land in question to quite a depth, I should think at least two feet, and the ditch that was formerly dug from this marsh into the millpond, the water did not run either way down near the highway under the culvert, showing that the water itself on this land in question was of the same height as the water in the millpond. * * *
“In this case, if the only question was as to whether this land had been overflowed at the same amount at the present time, that it was in the springtime, I should decide in favor of the defendant, but I think the evidence, and the weight of the evidence, in fact, the great weight of the evidence upon the part of the defendant even, is that this land has not been overflowed in its present condition only for a small portion of the year during the spring months or during the time when there was a heavy freshet previous to nine years ago. * * *
“If I remember correctly, when I visited the place, and I think the evidence showed that, the dashboards came within a foot and a half from the top, and I think the court will decree that the defendant be required to lower those dashboards 15 inches and to continue them lower from the 1st day of April to the 1st day of December of each year, and that the complainant recover his costs to be taxed. In this case I should have given a decree of damages instead of compelling the defendant to lower the dashboard's, but there was not sufficient evidence introduced in the case on either side to warrant me in giving a decree in that respect. The only evidence that was given in the case was on the part of the complainant, who claimed his damages were some $700, and from my observations of the premises I do not think that he was entitled to it.”
A decree having been entered in accordance with the findings of the court, both parties have appealed to this court.
The preponderance of the evidence in this case supports the claim of complainant that the waters of the pond have overflowed his lands to a greater extent since 1896 than theretofore. Complainant and Mr. Monks (who owned the 80 next east), and who were in a situation to know more about their own lands than others who did not occupy them, testified that they never knew the water from the pond to back up onto their land until Mr. Klem operated the mill. Mr. Monks testified :
“I remember when Mr. Klem went into the mill, between 9 and 10 years ago. Up to that time the water had never stood back upon this 80 of mine, except it might be in this way: In the spring of the year and heavy waters, there might be some water lay on my land for a day or two, when it thawed up in the spring of the year. That would be water that flowed down from the land south. My marsh on my 80 is a part of the same marsh as the two pieces upon Reason’s. * * *
“ I have known the land on the Reason marsh as many years as I have mine. Up to nine years ago I have known the marsh on the south end of the Reason 80 to be mowed different years. I never knew that to be covered with water throughout the season up to nine years ago. Up until the last few years I never knew the water to stand back from the pond upon the piece of marsh upon the north end of the Reason 80; never did up to the time that Klem went into the mill. That marsh was always dry just about the same as mine.”
This testimony is well supported by the testimony of other disinterested witnesses; by the flooding of complainant’s well, theretofore on hard land; the dying of trees, and the rise of water under bridges. The correctness of this testimony is also strongly supported by the testimony of Mr. Birkett, defendant’s grantor. Birkett testified:
“At one time when I owned the mill, Mr. Reason came to me in reference to the water on these marshes. He made a proposition to me in regard to putting in a drain from these marshes underneath the pond, and thence through the dam. He thought that by so doing he could build a dam across the neck, which was quite narrow, I don’t think more than 20 feet, and put that pipe through, so that water coming down from his marsh could be piped under the dam, so there couldn’t be any back water from the dam onto his. After thinking the matter over and talking it over with him, I see the theory was correct. * * *
“ He was going to take a great deal of pains. I see he did, and he put it in good shape and that was all right. I think it worked successfully in a reasonable stage of water as long as they kept up the dam. * * *
“ The dam went out while I owned it, west of the highway, near the middle. I repaired it and built it up some higher than it had been before. I remember when Mr. Klem was in the mill he carried the water higher than it had been before, and I remonstrated with him from time to time, and I asked Barney Lynch to let me know if he continued to carry the water dangerously high. Lynch could at any time tell the height of the water in the pond by the depth of the water in his cellar. Klem went into the mill in the fall of ’96. Reason never complained to me about the water being on his land until the time we were repairing the dam. That was the next season after Klem went into the mill. Then he came to me and told me that the water stood back from the pond upon his land. I told him Klem had been in the habit of carrying the water too high, and that I remonstrated with him on that account. I don’t remember that Reason also told me that the water backed up onto Monk’s, but I understood from him that from the height to which Klem carried the water it backed up onto their land, so there was this arrangement made between Reason and me, whereby they were to put in the tile to take off this surface water and they were to build this little dam. These tile were to run along the edge of the pond, through the dam and out into the wasteweir below the dam. The tile were put in while the water was down in the pond at the time we were repairing the dam after it went out for Klem. I am quite certain the joints of these tile were not cemented together. Reason proposed to put in a little dam on the edge of the pond to keep the water from backing up on their land. I built the dam two or three feet higher than it was when I found it. You see the trouble is it was low and the northwest wind sweeps the length of it and brings the water there. We had to raise that; put stone in front of the dam to protect that part of it, the west end, and no other part, only that that is exposed to the northwest wind. * * *
“ It was never carried as high as the time Klem carried April 19, 1897. That was Sunday night, and it was almost a cyclone from the northwest, and he carried it just as full as it could hold, and, of course, it drove down and washed the dirt off and when it once got to going away the whole business went.”
Mr. Frank Johnson testified:
“I couldn’t say what portion of the time we had a 14- foot head when I was operating the mill. We tried to keep it up there all the time we could. In the spring of the year when we had plenty of water, we would let it run over the wasteweir. In the spring when the water was coming in plenty, we would let it run off so as to be safe, but as the rains and water began to die away we would keep it up as near 14 feet as we could because we needed the water.”
There was also evidence that the south bank of the race at the lowest point in the dam had - been raised from four to six inches by depositing coal ashes there. Mr. Johnson testified that the south bank was not raised at this point while he owned the mill.
“ If there are any ashes on the surface of that dam now on the south bank, then it is higher to the depth of those ashes than it was in 1883.”
Mr. E. A. Mann testified that he did not remember of any ashes being put on this bank while he was there.
‘ ‘ If there were any there, it would raise the bank to that extent.”
Complainant and Mr. Pennington testified the last day, of the hearing that they dug down into,this bank at several spots, 15 feet apart, and found, under an inch or so of soil, coal ashes, ranging from four inches at the east end to six inches at the west end. This testimony is undisputed. Since 1895, therefore, when Mann sold out, the dam has been raised from two to three feet, and probably more, on the west end, and from four to six inches at the lowest point in the south bank of the race. While the raising of the dam at the west end would not affect the ponding capacity of the dam, it would affect the height at which the water could be safely carried, and especially during spring floods, with high winds to drive the water against this portion of the dam. Again, during the time that Johnson and E. A. Mann were operating the mill, they were obliged to use steam power to help out the water power, while since Birkett owned the mill it has been operated by water power alone, and ‘ ‘ it took more power to operate the mill after the roller process was put in than it did before.” The raising of the dam affected the height of water which could be safely carried in the spring and fall as well as in the summer. If the dam to the west of the wasteweir were at the same level with the lowest point of the south bank of the race, the water could not be carried near to the top of the race bank without endangering the dam, as experience demonstrated. If the dam near the wasteweir were raised sufficiently high to withstand the assaults of the wind and waves, the race could be carried nearly bank full with safety.
As the first flooding of complainant’s lands by the waters of the pond in 1896 was occasioned by Klem carrying-the water at an unusual and dangerous height, it is reasonable to suppose that, with a higher dam, defendant’s carrying the water at an unusual height has caused the flooding for the years since the little dam was destroyed. The evidence as to the head of .water at the mill or the lowest point in the dam is not very satisfactory. No levels or exact measurements appear to have been taken, either at the mill or elsewhere. The defendant testified that there was 13 feet and 8 inches head when he bought the mill. Birkett testified:
“The race bank on the south side isn’t more than 6 inches higher than the 14 feet. I have had the water in the race high enough so it would trickle over the south bank. That point is the lowest point in the entire dam, and there is a good stiff sod there, so the water wouldn’t cut in. The race bank was never changed any, or raised, to my knowledge. I have been there since I owned the mill, and, as far as I could see, the banks are the same and the flume is the same. While I say that 14 or 15 feet was the highest head or high water mark, I would think if it was lowered to 11 or 12 feet running head that would be about the lowest that they could hold it and do business. I think that about 12 feet running head would be the limit, so that I put the limit between high and low running head at approximately 2 feet. If you get below that, you couldn’t successfully operate the mill. During the time I owned the mill it was operated during all the months of the year and during the time they had sufficient water it was kept up to 14 feet head. In dry times the water would go down, and then in seasons of more rain or wetter times, the water would be held up again.”
The extent of the right of flowage by prescription is not measured by the height of the dam but by the extent of the use of the lands flowed, and the burden of proving the extent of such use—
‘ ‘ Is upon the defendants to show that they have for a period of 15 years, at least, each year flowed complainants’ lands to the height complained of and established by their proofs, and that such use of complainants’ lands by flowage has been adverse, uninterrupted, peaceable, open and notorious.” Turner v. Hart, 71 Mich. 128.
See, also, Chapel v. Smith, 80 Mich. 100; Osten v. Jerome, 93 Mich. 196; A. P. Cook Co. v. Beard, 108 Mich. 17; Pluchak v. Crawford, 137 Mich. 509.
“Occupation and a use of a right of flowage or pond-age, in order to create a prescriptive right, need not be constant in the sense of a daily occupancy or use. It must be continuous and uninterrupted, but not necessarily constant. It is necessarily an irregular use, depending upon season and rainfall; and it is sufficient if the use be the ordinary use and be resorted to without interruption whenever necessary in the operation of the power.” Cornwell Manfg. Co. v. Swift, 89 Mich. 503.
The ordinary use must be determined by the ordinary season. Fluctuation in the height of the water caused either by extraordinary rainfalls or freshets would not enlarge the right, nor would fluctuation caused by unusual drouths diminish the right. Allen v. Electric Co., 144 Mich. 370; Johnson v. Boorman, 63 Wis. 268. The defendant failed to show by a preponderance of the evidence that he was not flowing complainant’s land to a greater extent than it had previously been flowed each year for 15 consecutive years with the ordinary use of the milldam during ordinary seasons, and the complainant, in our opinion, did prove, by a preponderance of the evidence, that his lands were flowed throughout the year to a greater extent than they ever had been during the ordinary seasons, and that the water has been raised 20 inches above its usual height.
In view of the limited extent of the injury and the number affeqted who have a right to complain, its character, the comparative values of the properties, and other considerations presented by the record, we agree with the circuit judge that a decree for such damages as complainant has and will in the future suffer in consequence of defendant’s acts would be more appropriate to this case than a decree to lower the dam or permanently remove flash-boards. We also agree that complainant’s damages were considerably overestimated by him, both in his bill of complaint and in his testimony, and that there is no satisfactory basis in this record for determining the amount of such damages.
Under the circumstances, we think it best to remand the record to the circuit court for the taking of further testimony as to complainant’s permanent damages, unless defendant prefers to reduce the ponding capacity of the dam, by removal of flashboards, 20 inches, in which event complainant’s damages will be the rental value of the lands wrongfully overflowed and injured by such overflow for the period defendant has overflowed them, and a decree will be entered in the circuit court as the case may then appear. Complainant will recover costs of this court.
McAlvay, C. J., and Cabpenteb, Gbant, and Ostbandee, JJ., concurred. | [
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