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L. F. Simmons, J.
Auto Club Insurance Association appeals as of right from a Manistee Circuit Court determination that it failed to tender payment sufficient to terminate its liability for postjudgment interest. Plaintiff filed a cross-appeal claiming that the trial court erred by calculating the judgment interest on the policy limit of $50,000 rather than on the jury verdict of $125,000. We affirm.
On November 29, 1981, plaintiff was injured when her car was rear-ended by Francis Myers while he was driving his gmc truck. Myers was insured by Auto Club. The policy limit was $50,000. This case went to trial and the jury awarded plaintiff $125,000 for economic loss after determin ing that defendant was negligent. The jury also determined that plaintiffs injuries did not constitute a serious impairment of body function. On February 21, 1984, the trial court entered a judgment awarding plaintiff $125,000 plus interest from the date the complaint was filed until the judgment was paid and costs of $554.57.
Auto Club subsequently filed motions for a new trial, judgment notwithstanding the verdict and remittitur. On April 15, 1984, these motions were denied. Auto Club then appealed as of right. The trial court’s determination was affirmed on appeal. See Cochran v Myers, 146 Mich App 729; 381 NW2d 800 (1985), lv den 425 Mich 867 (1986).
On July 2, 1986, plaintiff filed a motion in the Manistee Circuit Court to compel payment of a bond pursuant to MCR 7.208(E). Plaintiff sought payment of the $50,000 policy limit, $554.57 in costs, plus prejudgment and postjudgment interest on the $125,000 jury verdict. The total amount plaintiff sought was $126,178.29. Auto Club responded by claiming that it was only liable for the $50,000 policy limits, $554.57 in costs, prejudgment interest on the $50,000 policy limit and postjudgment interest on a $125,000 verdict up until Auto Club’s May 30, 1984, tender of payment. The total amount Auto Club claimed it owed was $66,075.51. On December 16, 1986, the trial judge heard plaintiff’s motion and determined that Auto Club owed prejudgment interest on the $50,000 policy limit and postjudgment interest on the $125,000 judgment through the date of December 16, 1986.
Interest on a money judgment recovered in a civil action is statutorily created. MCL 600.6013; MSA 27A.6013. This statute provides in pertinent part:
(1) Interest shall be allowed on a money judg ment recovered in a civil action, as provided in this section ....
* * *
(4) For complaints filed on or after June 1, 1980, but before January 1, 1987, interest shall be calculated from the date of filing the complaint to the date of satisfaction of the judgment at the rate of 12% per year compounded annually ....
This Court has held that postjudgment interest should be calculated based upon the policy limits and not the amount of the judgment. Matich v Modern Research Corp, 146 Mich App 813, 824; 381 NW2d 834 (1985), lv gtd 425 Mich 871 (1986); Sederholm v Michigan Mutual Ins Co, 142 Mich App 372, 388-390; 370 NW2d 357 (1985), lv den 424 Mich 857 (1985). However, if an insurance company contracts to provide interest on the entire judgment, the insurance company will be liable to pay interest on the judgment. Matich, supra, pp 827-828.
In the instant case, the insurance policy provided for payment, in addition to the applicable limits of liability, of:
(a) all expenses incurred by the Exchange [Auto Club], all costs taxed against the insured in any such suit and all interest on the entire amount of any judgement [sic] which accrues after the entry of judgment and before the Exchange has paid, tendered or deposited in court that part of such judgment which does not exceed the limits of the Exchange’s liability thereon . . .
Therefore, based upon the insurance contract, Auto Club agreed to pay interest on the entire amount of any judgment accruing after the entry of judgment and before tender of payment. In fact, in appellant’s brief, appellant admitted that, pur suant to MCL 600.6013(4); MSA 27A.6013(4), interest was to be calculated upon the $125,000 judgment from the date the complaint was filed until the date the judgment was satisfied.
Auto Club claims that its offer of May 30, 1984, constituted sufficient tender of payment so as to relieve it from the obligation to pay postjudgment interest on the entire amount beyond that date. In its policy of insurance, Auto Club did provide that interest on the judgment accrues up until Auto Club pays, tenders, or deposits in court that part of the judgment which does not exceed the limits of the policy. In the May 30, 1984, letter, Auto Club authorized its attorney to offer, as a final settlement proposal, the $50,000 policy limit plus interest on the $50,000 through judgment plus costs, and interest on the $125,000 judgment through the date of receipt of the offer. The trial court determined that this letter did not constitute tender as the insurance contract required because it was unclear whether, by accepting the offer, plaintiff would be foreclosing the opportunity to collect the balance of the judgment. The lower court’s determination was not erroneous. Auto Club’s offer was not a tender because it was conditioned upon plaintiff’s accepting the money as a final settlement proposal.
Auto Club should have actually paid the amount due to plaintiff to the trial court. Once the amount due was paid, the interest would stop accruing. Sederholm, supra, p 392. Auto Club’s failure to tender the amount due as the contract required resulted in the interest obligation not being tolled. Because the interest continued to accrue, the trial court properly determined that Auto Club was liable for postjudgment interest on the judgment continuing through the date of that order.
In Denham v Bedford, 407 Mich 517; 287 NW2d 168 (1980), our Supreme Court noted that there was a split of authority on the issue of whether the insurer was liable for prejudgment interest on the whole judgment or only on the policy limits. Id., p 533. The Denham Court also noted that the majority and modern trend was in favor of holding the insurer liable for interest on the whole judgment. Id. However, in its conclusion, the Supreme Court held that the insurer was liable for prejudgment interest on the portion of the judgment representing the policy limit of the insurer. Id., p 537. This Court has continued to follow the Denham decision. See Bent v Bostwick, 148 Mich App 184, 187; 384 NW2d 124 (1986); Sederholm, supra, p 389.
In the present insurance policy Auto Club did not provide for payment of any prejudgment interest. Rather, the insurance policy provided for payment of all interest on the entire amount of any judgment which accrues after the entry of judgment. Due to the fact that there was no contractual provision in the insurance policy, the statutory requirement that prejudgment interest be paid on the policy limits alone must be applied.' In this case, the trial court properly determined that Auto Club was obligated to pay prejudgment interest on the $50,000 policy limit only.
Accordingly, we hold that the trial court properly concluded that postjudgment interest continued to accrue due to the fact that Auto Club’s letter dated May 30, 1984, did not constitute tender of payment. Rather, it was merely an offer to settle. We further hold that the trial court properly determined that Auto Club was to pay post-judgment interest on the verdict and that prejudgment interest should be calculated based upon the $50,000 policy limit.
Affirmed. | [
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M. J. Kelly, J.
This consolidated appeal presents a novel, if not unique, problem involving the custody of a minor child. In the March 29, 1976, judgment of divorce, plaintiff wife, Charlene Even-house, was given custody of the minor child of that marriage, Nicole, born March 31, 1973. Subsequently, plaintiff moved to Houston, Texas with the child. This was done without permission of the court. Consequently on January 24, 1979, the judgment of divorce was modified, and this modification reflected for the most part the changes in visitation by the child with defendant father, Robert Zuziak, necessitated because of plaintiff’s having moved out of state. Thereafter, by agreement of the parties, the child moved to Michigan to live with defendant and intervening defendant in May of 1982. Defendant had married intervening defendant, Mary Jo Zuziak, on March 18, 1978, and Nicole in 1982 lived in their home when she returned to Michigan. On May 5, 1983, defendant petitioned the court for a change of custody and this petition was granted on September 13, 1983, giving defendant the responsibility for the care, custody, control and education of the child until she reached the age of eighteen or graduated from high school, whichever was later.
However, Robert and Mary Jo Zuziak separated on June 20, 1986, and the child, then thirteen, opted to live with Mary Jo. No one notified plaintiff of the separation or that her daughter was living with Mary Jo, the stepmother. During Nicole’s visit with plaintiff in the summer of 1986, Nicole did not inform plaintiff of the separation. In September, 1986, Mary Jo petitioned for a divorce from Robert and filed an action for custody of the child. The petition for custody was later dismissed.
Upon learning of the separation of defendant and intervening defendant and learning that the child was living only with intervening defendant, plaintiff petitioned the court on October 14, 1986, to amend the judgment of divorce to change the custody of the child from defendant father to plaintiff mother. Mary Jo Zuziak moved to intervene in this matter. Intervening defendant had been granted interim custody of the child on September 22, 1986; on April 3, 1987, she requested that custody of the child be awarded to her.
On August 3, 1987, following hearings on this matter, the judgment of divorce was amended to reflect that plaintiff was granted custody of the child. Intervening defendant and defendant separately moved for a new trial and reconsideration. These motions were denied. Intervening defendant appealed. Defendant also appealed. Defendant’s and intervening defendant’s appeals were consolidated, and they have joined together in filing one brief in this matter.
Appellants’ first argument is that the trial court’s finding that there was no established custodial environment was against the great weight of the evidence and therefore the. trial court erred in failing to apply § 7 of the Child Custody Act, MCL 722.27; MSA 25.312(7).
Our review of child custody cases is de novo. Sedlar v Sedlar, 165 Mich App 71, 74; 419 NW2d 18 (1987). However, this review is tempered by MCL 722.28; MSA 25.312(8), which provides:
To expedite the resolution of a child custody dispute by prompt and final adjudication, all orders and judgments of the circuit court shall be affirmed on appeal unless the trial judge made findings of fact against the great weight of evidence or committed a palpable abuse of discretion or a clear legal error on a major issue.
Appellants here argue that the finding of the trial court, that there did not exist an established custodial environment, was against the great weight of the evidence and led to a clear legal error. The first step in considering a change of custody petition is to determine whether an established custodial environment exists so that a determination can be made on the correct burden of proof. Sedlar, supra at 75. If there is no established custodial environment, the burden of proof for a change of custody is merely a preponderance of the evidence; however, the Child Custody Act requires that, where there is an established custodial environment, no change in custody should take place unless clear and convincing evidence is presented that such a change is in the best interests of the child. MCL 722.27(1)(c); MSA 25.312(7)(1)(c). Section 7(1)(c) of the Child Custody Act also provides:
The custodial environment of a child is established if over an appreciable time the child naturally looks to the custodian in that environment for guidance, discipline, the necessities of life, and parental comfort. The age of the child, the physical environment, and the inclination of the custodian and the child as to permanency of the relationship shall also be considered.
On this issue the trial court found that there was "not a stable environment for a considerable length of time ... at least since June of 1986. There’s been disruptions in the way the child has been changed from one family arrangement to another.” The trial court then concluded that on the facts of this case the presumption of §7 did not apply. We disagree with this conclusion and determine that this finding was against the great weight of the evidence.
It was undisputed during the hearings on plaintiffs petition that intervening defendant, Mary Jo Zuziak, was primarily responsible for providing parental care, discipline, love, guidance and attention to Nicole from the time the child returned to Michigan in 1982. This was necessitated by the father’s working the second shift, his extensive involvement with union and community activities, and the natural mother’s residence in Texas. Mary Jo was the parent available to attend to the child’s needs, albeit a stepparent.
Mary Jo’s influence on the child continued after Mary Jo and Robert separated. Although Mary Jo moved out of the marital home, Nicole continued to live with Mary Jo in an apartment in the same area, close to the child’s friends and school. The child’s participation in extracurricular school activities continued, as did her attendance at the same church. While in Mary Jo’s custody, Nicole made regular trips to plaintiffs extended family (that lived in the area) and visited with plaintiff in Texas. Plaintiff agreed that Nicole was well cared for and had been doing well in school.
Mary Jo provided financially for the "extras” that the child required. This included normal living expenses, extracurricular school expenses and medical care, especially necessary dental work.
After the separation, Nicole continued to look to Mary Jo for guidance, Mary Jo was personally involved in Nicole’s day to day care and extracurricular activities, and the child responded well to Mary Jo’s requests as to order and discipline. During the period of separation the child continued to maintain above average school grades.
On these facts we find that the relationship between parent and child was stable and permanent and that the trial court’s findings were against the great weight of the evidence. Consequently, we conclude that the trial court made a clear legal error in not applying the presumption of §7.
Appellants also challenge the findings of the trial court with regard to the best interests of the child, pursuant to MCL 722.23; MSA 25.312(3). In reaching a determination of the best interests of the child the eleven factors in § 3 of the Child Custody Act must be considered. Section 3 provides:
"Best interests of the child”' means the sum total of the following factors to be considered, evaluated, and determined by the court:
(a) The love, affection, and other emotional ties existing between the parties involved and the child.
(b) The capacity and disposition of the parties involved to give the child love, affection, and guidance and continuation of the educating and raising of the child in its religion or creed, if any.
(c) The capacity and disposition of the parties involved to provide the child with food, clothing, medical care or other remedial care recognized and permitted under the laws of this state in place of medical care, and other material needs.
(d) The length of time the child has lived in a stable, satisfactory environment, and the desirability of maintaining continuity.
(e) The permanence, as a family unit, of the existing or proposed custodial home or homes.
(f) The moral fitness of the parties involved.
(g) The mental and physical health of the parties involved.
(h) The home, school, and community record of the child.
(i) The reasonable preference of the child, if the court deems the child to be of sufficient age to express preference.
(j) The willingness and ability of each of the parents to facilitate and encourage a close and continuing parent-child relationship between the child and the other parent.
(k) Any other factor considered by the court to be relevant to a particular child custody dispute.
Because the trial court was in the best position to evaluate the witnesses and draw conclusions based on their testimony, for the most part we agree with the original determination of the trial court on the several issues involved and defer to its conclusions.
Like the trial court, we agree that regarding factors (a), (b) and (c), the parties are more or less equal. However, we differ with the trial court in its finding on factor (d). Based on the facts that support our finding that there was an established custodial environment, we find factor (d) weighed in favor of Mary Jo. Our review of the récord reveals that there is a stable satisfactory home environment for Nicole with Mary Jo and we find that this is a positive nourishing environment. We conclude that the trial court’s finding on this factor was against the great weight of the evidence. Likewise, we conclude that the trial court’s finding in factor (e) was against the great weight of the evidence. The basis for the trial court’s conclusion that Mary Jo’s home was not a permanent family unit appears to be the fact that she and defendant were separated and that she had filed for divorce.
However, the facts presented showed that Mary Jo had provided a home for Nicole for over one year after Mary Jo’s separation from defendant. Simply because one party in a custody suit is single, should not preclude a finding that they have the ability to provide a permanent custodial home and family unit. However, it also appears from our review of the record that plaintiff was equally able to provide a permanent home and family unit. For these reasons we conclude that both parties are equal on this issue.
We agree with the findings of the trial court that the parties are even with regard to factors (f) and (g). We also agree with the trial court that with respect to factors (h) and (i) Mary Jo has an advantage over plaintiff. We also defer to the findings of the trial court on the remaining factors, finding that factor (j) favored plaintiff and that with respect to factor (k), plaintiff had previously exhibited a willingness to defer to the best interests of the child in previously voluntarily relinquishing custody to defendant in 1982.
Based on our findings on the best interests of the child factors of § 3 of the Child Custody Act, we conclude that, under either the clear and convincing standard or the preponderance of the evidence standard, Nicole’s best interests would better be served by Mary Jo’s retaining custody. Our determination that this conclusion is justified under either standard becomes important with regard to our consideration of the issues raised pertaining to § 5 of the Child Custody Act, MCL 722.25; MSA 25.312(5).
Because of our finding that there was an established custodial environment, necessitating application of the presumption contained in § 7 of the Child Custody Act, we also agree with appellants that the trial court committed a clear legal error on a major issue in holding that the only applica ble presumption was that contained in § 5 of the Child Custody Act. On this basis the trial court shifted the burden to intervening defendant to show by clear and convincing evidence that the best interest of the child was for custody to remain unchanged.
Section 5 of the act provides:
When the dispute is between the parents, between agencies or between third persons the best interests of the child shall control. When the dispute is between the parent or parents and an agency or a third person, it is presumed that the best interests of the child are served by awarding custody to the parent or parents, unless the contrary is established by clear and convincing evidence.
"In any child custody dispute, including those between natural parent and a third party, the overriding concern is for the best interests of the child.” Deel v Deel, 113 Mich App 556, 559; 317 NW2d 685 (1982).
In Glover v McRipley, 159 Mich App 130; 406 NW2d 246 (1987), this Court, facéd with both the presumption in § 5 and the presumption in § 7 of the Child Custody Act, had to determine the best interests of the child. In Glover, the natural father was seeking custody although the maternal grandparents had provided an established custodial environment for the child. The then nine-year-old child had resided with the grandparents since birth. Faced with these conflicting presumptions this Court stated:
As we concluded in Deel, the fact that the two presumptions are opposed in certain cases does not mean that they cancel each other out. On the other hand, it cannot mean that the burden of proof in each presumption must continue to be applied literally. Such a conclusion would only lead trial courts into a logical paradox. We therefore conclude that, in instances in which both the parental presumption of §5 and the established custodial environment presumption of § 7 are applicable, the burden of proof evolves into a preponderance of the evidence. A remaining question is which party bears the burden of proof.
In Deel, as quoted supra, we noted that the statutory language and our prior decisions suggest that the burden of proof is on the third party to rebut the parental presumption. However, Deel also notes that proof of the existence of an established custodial environment could effectively rebut the parental presumption. We think that it is obvious that each party bears the burden of proof vis-á-vis his own presumption. The key issue is who bears the burden of persuasion in these cases.
We hold that the burden of persuasion rests with the parent challenging an established custodial environment in the home of a third party. In doing so, we are not unmindful of the special care with which the Legislature articulated the parental presumption, nor are we unmindful of the fact that the established custodial environment presumption is purely procedural. Nevertheless, it is clear that the best interest of the child is the primary goal of the act. MCL 722.27(1); MSA 25.312[7](1), Deel, supra, p 559, and cases cited therein. We believe that placing the burden of persuasion on the parent challenging an established custodial environment is better calculated to elicit the quality of testimony and evidence required by a trial court in its determination of the best interest of the child. We also believe that, as indicated by the expert testimony in this and other cases, the importance of residence with a biological parent pales beside the importance of stability and continuity in the life of a child. [159 Mich App 146-147.]
Based on our determination that, under either the preponderance of the evidence standard or the clear and convincing evidence standard, the best interest of Nicole would be served in maintaining custody with Mary Jo, we conclude that plaintiff has failed to carry her burden of persuasion. On this basis we hold that custody should be returned to Mary Jo.
Appellants have also claimed that, based on the theory of equitable parent, enunciated in this Court’s opinion in Atkinson v Atkinson, 160 Mich App 601; 408 NW2d 516 (1987), lv den 429 Mich 884 (1987), the trial court erred in applying the presumption in § 5 of the Child Custody Act since Mary Jo is an equitable parent. However, we disagree with the appellants’ contention that the rule in Atkinson is applicable here. This case is clearly distinguishable. The unique status of the husband in Atkinson, who believed from the time of the child’s birth that he was the natural father and only upon divorce discovered otherwise, is not analogous to the facts here. Therefore, we find appellants’ reliance on Atkinson misplaced, and we decline to extend the equitable parent doctrine to the facts presented here.
We also reject appellants’ argument that there is a dispute between the natural parents. Appellants argue that Robert, the natural father, wishes Mary Jo to have custody and therefore this is a dispute between natural parents and the presumption of § 5 of the Child Custody Act is inapplicable. The trial court found that defendant father had not made a plan for the child and was not seeking custody. This finding was not against the great weight of the evidence, and we conclude that it was appropriate for the trial court to consider the implications of the presumption contained in § 5 of the act.
However, for the reasons previously stated we reverse.
Reversed.
We note that if separation and divorce are criteria for reaching a negative conclusion on this factor it would appear that in most child custody cases this factor would be of little practical use. | [
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Per Curiam.
Plaintiff, Kathy Dockweiler, appeals as of right from a November 19, 1986, order of the Allegan Circuit Court granting a motion for summary disposition in favor of defendants Allegan County Mental Health Services, Inc. (acmhs), and Allegan County. We affirm.
In her complaint, which was filed on June 30, 1986, plaintiff alleged that on June 26, 1984, she sought the professional services of acmhs regarding treatment for a nervous and emotional disorder which was causing her to lose weight and fear eating. According to plaintiff, she was assigned by acmhs to a staff psychologist and employee of acmhs, James Wentzell, for treatment. Plaintiff alleges that during the eleven or twelve months she was being treated by Wentzell, the psychologist made sexual advances toward her in acmhs offices which included "discussion of sexual gratification, threatening plaintiff with sexual assaults, embracing plaintiff, touching plaintiff in various parts of her body, including breasts and pelvic areas, and using methods of hypnosis and transference on plaintiff to accomplish the above outlined tortious acts.” Plaintiff further alleges that on May 10, 1985, Wentzell arranged to meet her on the grounds of the Allegan State Forest, where he sexually assaulted her and had sexual intercourse with her.
Plaintiff’s complaint sets forth several counts, including counts against Wentzell for professional malpractice, assault and battery, intentional infliction of emotional distress, and violation of civil rights under the Civil Rights Act, MCL 37.2103(h) and 37.2302(a); MSA 3.548(103)(h) and 3.548(302)(a); against acmhs for professional malpractice, violation of civil rights, negligent maintenance of premises, negligent supervision, and violation of the Mental Health Code, MCL 330.1722; MSA 14.800(722); and against Allegan County for professional malpractice, violation of civil rights, negligent maintenance of premises, negligent supervision, and violation of the Mental Health Code. Acmhs and Allegan County filed a motion for summary disposition pursuant to MCR 2.116(C)(7) and (8) on September 19, 1986, and, after a hearing on the matter conducted on October 3, 1986, the Allegan Circuit Court granted summary disposition in favor of the movants regarding all counts against acmhs and Allegan County.
First, plaintiff argues that the trial court erred in granting the motion for summary disposition pursuant to MCR 2.116(C)(8) concerning her claims based on the Civil Rights Act, MCL 37.2101 et seq., MSA 3.548(101) et seq. The proper considerations for this Court’s review of a grant or denial of a motion for summary disposition based on MCR 2.116(C)(8) — failure to state a claim on which relief can be granted — are well established:_
The motion is to be tested by the pleadings alone. The motion tests the legal basis of the complaint, not whether it can be factually supported. The factual allegations of the complaint are taken as true, along with any inferences or conclusions which may fairly be drawn from the facts alleged. Unless the claim is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recover, the motion under this subrule should be denied. Crowther v Ross Chemical Mfg Co, 42 Mich App 426; 202 NW2d 577 (1972). [Ortiz v Textron, Inc, 140 Mich App 242, 244; 363 NW2d 464 (1985).]
Initially, plaintiff contends that she stated a claim under MCL 37.2302(a); MSA 3.548(302)(a), which provides that "a person shall not . . . deny an individual the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of . . . public service because of . . . sex . . . .” Assuming that acmhs is a public service within the meaning of the statute, and assuming that all of the well-pled allegations in plaintiffs complaint are true, we agree with the circuit court that plaintiff has failed to state a claim under the Civil Rights Act.
Our review of plaintiffs complaint discloses that plaintiff did not sufficiently allege a claim for the denial of the full and equal enjoyment of a public service, i.e., any service provided to the public by acmhs or Allegan County. Paragraphs one and two of plaintiffs complaint reveal that plaintiff was indeed given access to services at a mental health clinic; was given the full opportunity to use the services provided to the public; and was in fact provided with treatment by a staff psychologist at the clinic for a period extending over eleven or twelve months. That plaintiff was sexually abused by her assigned staff psychologist during her treat ment does not necessarily suggest that she was also denied the public services provided by acmhs due to prejudices and biases against her because of her sex. In Miller v C A Muer Corp, 420 Mich App 355, 363; 362 NW2d 650 (1984), the Supreme Court observed: "The Michigan civil rights act is aimed at the 'prejudices and biases’ borne against persons because of their membership in a certain class . . . and seeks to eliminate the effects of offensive or demeaning stereotypes, prejudices, and biases.” In Safie Enterprises, Inc v Nationwide Mutual Fire Ins Co, 146 Mich App 483, 495; 381 NW2d 747 (1985), this Court stated that, although the language of MCL 37.2302(a); MSA 3.548(302)(a) appears to be broad, "the intention behind the act was to insure equal access to places of accommodation and service.” Thus, the statutory provision herein relied upon by plaintiff simply does not encompass the action alleged in plaintiff’s complaint.
Further, plaintiff’s reliance on MCL 37.2103(h); MSA 3.548(103)(h) does not convince us that her claim falls within the ambit of the Civil Rights Act. That provision, which specifies that sexual harassment is included within discrimination based on sex, states:
(h) Discrimination because of sex includes sexual harassment which means unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct or communication of a sexual nature when:
(i) Submission to such conduct or communication is made a term or condition either explicitly or implicitly to obtain employment, public accommodations or public services, education, or housing.
(ii) Submission to or rejection of such conduct or communciation by an individual is used as a favor in decisions affecting such individual’s employment, public accommodations or public services, education, or housing.
(iii) Such conduct or communication has the purpose or effect of substantially interfering with an individual’s employment, public accommodations or public services, education, or housing, or creáting an intimidating hostile, or offensive employment, public accommodations, public services, educational, or housing environment.
Plaintiff has not alleged that Wentzell’s actions toward her, for example, were made a condition of obtaining public services at acmhs, were used as a factor in any decision affecting her receipt of public services at acmhs, or had the effect of substantially interfering with the public services rendered to her at acmhs. As observed by acmhs and Allegan County in their supplemental brief: "If at any time the plaintiff questioned the propriety of the therapy provided, the plaintiff merely had to walk away, request a new therapist, or take her concerns to a higher authority within the County Mental Health Service.” This failure to allege that Wentzell’s conduct substantially interfered with her receipt of public services distinguishes plaintiff’s case from McCalla v Ellis, 129 Mich App 452, 457-459; 341 NW2d 525 (1983), lv den 422 Mich 853 (1985), in which this Court disapproved of a trial court’s denial of a plaintiff’s motion to amend her complaint to allege a cause of action under the Civil Rights Act based on her rape by the defendant, her work supervisor. In McCalla, this Court emphasized, among other things, that the defendant, who raped the plaintiff after telling her that she would receive unearned commissions if she would "stick with him,” "apparently first linked his sexual advances to a promise of increased earnings.” Id., pp 455-458. In the present case, the allegations made by plaintiff in her complaint concerning Wentzell’s sexual advances and assaults do not give rise to any inference that his advances and assaults were linked to plaintiffs receipt of public services at ACMHS.
Second, plaintiff argues on appeal that the trial court erred in granting the motion for summary disposition pursuant to MCR 2.116(C)(7) — the claim is barred due to immunity granted by law — concerning her claim based on the Mental Health Code, MCL 330.1722; MSA 14.800(722). The circuit court found that plaintiffs claim against acmhs and Allegan County was barred because those defendants were entitled to the protection of governmental immunity, MCL 691.1407; MSA 3.996(107). This Court, in reviewing a trial court’s grant or denial of summary disposition pursuant to MCR 2.116(C)(7), must accept all of the plaintiffs well-pled allegations as true and construe them most favorably to the plaintiff. Male v Mayotte, Crouse & D’Haene Architects, Inc, 163 Mich App 165, 168; 413 NW2d 698 (1987).
Section 722 of the Mental Health Code, the provision upon which plaintiff relies, provides in pertinent part:
(1) A recipient of mental health services shall not be physically, sexually, or otherwise abused.
(4) Any recipient of mental health services physically, sexually, or otherwise abused shall have a right to pursue injunctive and other appropriate civil relief. [Emphasis added. MCL 330.1722; MSA 14.800(722).]
We believe that a tort claim for damages does not constitute "appropriate civil relief’ under §722 against the governmental unit and agency in this action because the unit and agency are entitled to the protection of governmental immunity and §722 is not an exception to such immunity. See Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 644; 363 NW2d 641 (1984).
In support of our conclusion that § 722 is not an exception to governmental immunity in this case, we quote with approbation the language of another panel of this Court:
In Siener v Michigan, 117 Mich App 179; 323 NW2d 642 (1982), aff'd 420 Mich 567; 363 NW2d 641 (1984), this Court stated:
"Subsection (4) extends the right to 'appropriate civil relief to an abused recipient. Because a public mental health facility is immune from tort liability when engaged in the exercise or discharge of its governmental function, MCL 691.1407; MSA 3.996(107), damages sought in a tort action do not constitute 'appropriate civil relief and, thus, may not be included even under this hypothetical reading. [Siener, supra, p 185.]”
Even though we have found that plaintiffs stated a claim in avoidance of governmental immunity based on the defective public buildings exception, we nevertheless conclude that a claim against the state pursuant to § 722 in this instance is not "appropriate civil relief’ since the claim is based on the state’s action or inaction in allowing the alleged abuse to occur. The state is immune from tort liability in this instance since, at the time of decedent’s death, it was engaged in a governmental function. MCL 691.1407; MSA 3.996(107). Hence, summary judgment as to defendant State of Michigan was appropriate, [de Sanchez v Genoves-Andrews, 161 Mich App 245, 261-262; 410 NW2d 803 (1987).]
Similarly, plaintiffs claim in this case pursuant to § 722 of the Mental Health Code is not "appropriate civil relief’ against acmhs or Allegan County because it is based on the action or inaction of these defendants in allowing the alleged sexual abuse to occur and because, at the time of plaintiffs sexual abuse, acmhs and Allegan County were engaged in a governmental function, thereby entitling them to the protection of governmental immunity as provided under MCL 691.1407; MSA 3.996(107). Accordingly, the trial court did not err in granting summary disposition in favor of acmhs and Allegan County on plaintiff’s claim based on § 722 of the Mental Health Code. We decline plaintiff’s apparent invitation for us to recognize § 722 as establishing a new category of activity — in addition to the four categories set forth in the governmental tort liability act, MCL 691.1401 et seq.; MSA 3.996(101) et seq. — for which tort liability may be imposed against a governmental agency.
Affirmed.
Actually, plaintiff did not specifically cite in her complaint the provisions of the Civil Rights Act upon which she based her claim for violation of civil rights. At the circuit court level, plaintiff relied on MCL 37.2302(a); MSA 3.548(302)(a), regarding the deprivation of the full and equal enjoyment of accommodations of a place of public service because of sex. At oral argument in this appeal, plaintiff enlarged discussion of this issue by relying on MCL 37.2103(h); MSA 3.548(103)(h), regarding sexual harassment. Defendants acmhs and Allegan County were permitted, pursuant to a request at oral argument, to submit a supplemental brief on the newly raised authority by plaintiff.
Our resolution of this issue — that plaintiff has failed to state a claim under MCL 37.2302(a); MSA 3.548(302)(a) — renders moot the issues whether acmhs and Allegan County are "persons” under the act, MCL 37.2103(f); MSA 3.548(103)(f), and whether either of the defendants are entitled to governmental immunity, MCL 691.1407; MSA 3.996(107), from a claim made under the Civil Rights Act.
The four categories of activity recognized by Michigan courts for which tort liability may be imposed, despite the general rule that state and local governments and agencies enjoy the cloak of immunity, include bodily injury and property damage arising out of the failure to keep highways in reasonable repair, MCL 691.1402; MSA 3.996(102), the negligent operation of a government-owned motor vehicle by an agency’s officer, agent or employee, MCL 691.1405; MSA 3.996(105), the dangerous or defective conditions in public buildings under an agency’s control, MCL 691.1406; MSA 3.996(106), and the commission of an act while engaged in a proprietary function, MCL 691.1413; MSA 3.996(113). See Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 593-594; 363 NW2d 641 (1984).
In her appellate brief on this issue, plaintiff assumes that acmhs and Allegan County were engaged in a governmental function at the time of her sexual abuse and thus would be entitled to the protection afforded by the governmental immunity act unless such protection is precluded by an exception to governmental immunity. The only "exception” upon which she relies for her claim under the Mental Health Code is § 722 of that code. | [
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J. E. Mies, J.
Plaintiff appeals as of right from a January 27, 1986, jury verdict of no cause of action on his products liability claim arising from injuries allegedly suffered due to ingestion of a drug (Cleocin) produced and distributed by defendant. Plaintiff was diagnosed as having colitis in 1971 after taking Cleocin for treatment of severe acne. His condition eventually necessitated surgical removal of his large bowel in 1973. Plaintiff claimed that defendant failed to warn of the drug’s adverse side effects and was negligent in testing the drug.
This appeal is taken from the verdict in a second trial on plaintiff’s claim after remand from this Court to Kent Circuit Court. The first trial resulted in a $750,000 jury verdict in plaintiff’s favor, which this Court reversed due to errors in the proceedings. Muilenberg v The Upjohn Co, 115 Mich App 316; 320 NW2d 358 (1982). This Court denied a rehearing requested subsequent to its 1982 decision, and the Supreme Court denied plaintiff leave to appeal, 418 Mich 946 (1984). On this appeal, plaintiff argues as follows:
1. This Court should reverse its 1982 decision.
2. The circuit court erroneously excluded the former trial testimony of one of plaintiff’s expert witnesses.
3. The circuit court erroneously limited plaintiff’s theory of liability to the claim that his ingestion of Cleocin caused his injury.
4. The circuit court should have permitted plaintiff to introduce into evidence a stronger warning for Cleocin ordered by a Food and Drug Administration directive of March, 1975.
5. The circuit court should have instructed the jury that defendant was on constructive notice of medical and scientific literature concerning Cleocin.
6. The circuit court should have granted a mistrial when the wife of defendant’s attorney demonstrated personal familiarity with a juror.
We find the foregoing arguments without merit, and affirm the verdict.
1. The law of the case doctrine precludes this Court from reversing its 1982 decision.
Plaintiff requests this Court to review its prior decision on the two issues which required reversal on the first appeal. Plaintiff argues that this Court incorrectly found error requiring reversal in his counsel’s reference in closing argument to the denial of defendant’s motion for a directed verdict. Moreover, plaintiff asserts that this Court erred in finding certain documents prepared by defendant to be inadmissible hearsay and irrelevant.
A question of law decided by an appellate court will not be decided differently on a subsequent appeal in the same case where the facts remain materially the same. The reason for the rule is the need for finality of judgment and the want of jurisdiction in an appellate court to modify its own judgments except on rehearing. Johnson v White, 430 Mich 47; 420 NW2d 87 (1988). Our Supreme Court has also held that this rule applies without regard to the correctness of the prior determination. Gourlay v Ins Co of North America, 189 Mich 384, 386; 155 NW 483 (1915); Damon v DeBar, 94 Mich 594; 54 NW 300 (1893). A party seeking relief from an incorrect appellate decision may either request a rehearing or appeal to the Supreme Court. Damon, supra.
There has been no material change in the facts since the first appeal in this case. Moreover, plaintiff has already sought relief from this Court’s 1982 decision by way of a request for rehearing to this Court and an application for leave to appeal to the Supreme Court. Accordingly, we hold that the law of the case doctrine prevents us from reviewing our prior decision in this case.
Plaintiff is incorrect in his reliance on Burk v Warren (After Remand), 137 Mich App 715; 359 NW2d 541 (1984), aff'd 427 Mich 32; 398 NW2d 896 (1986), reh den 428 Mich 1206 (1987), for the proposition that this Court may review its prior ruling in his case. This Court reversed its prior determination in Burk because our Supreme Court significantly altered the controlling law subse quent to the first appeal, and instructed the trial court on remand to proceed in light of the change. Here, where the Supreme Court denied plaintiff leave to appeal this Court’s 1982 decision, there has been no significant change in the law which warrants review of our previous decision.
2. Prior trial testimony of plaintiff’s expert witness was not admissible due to plaintiff’s failure to show the witness’ unavailability pursuant to MRE 804.
Subsequent to his testimony at the first trial in this case, one of plaintiff’s expert witnesses moved to Israel. Plaintiff’s counsel indicated at trial that the witness had stopped returning his telephone calls in 1980. Plaintiff sought before and during trial to introduce the witness’ former testimony pursuant to MRE 804(b)(1), which provides that prior testimony is not excluded by the hearsay rule if the declarant is unavailable as a witness, and the opposing party had an opportunity and similar motive to develop the testimony by direct, cross, or redirect examination. The circuit court refused to admit the former testimony, holding that plaintiff had neither shown the witness’ unavailability nor plaintiff’s own attempts to procure the witness’ presence at the second trial.
MRE 804(a)(5) provides the relevant definition for "unavailable” in this case:
(a) Definition of unavailability. "Unavailability as a witness” includes situations in which the declarant....
(5) is absent from the hearing and the proponent of his statement has been unable to procure his attendance ... by process or other reasonable means, and in a criminal case, due diligence is shown.
Since the witness was without the range of court process in this case, we must determine whether plaintiff was unable to obtain his attendance by "other reasonable means.”
Decisions of our Supreme Court rendered prior to the adoption of MRE 804 reached inconsistent conclusions as to whether a witness’ mere presence outside the court’s jurisdiction constituted unavailability in the absence of a showing of reasons why the witness could not be produced at trial. In Hudson v Roos, 76 Mich 173; 42 NW 1099 (1889), a witness was found unavailable and her former testimony read into evidence on the basis of her residence in another state, despite the fact that no effort was made to obtain her presence at trial. In Pontiac School Dist v Sachse, 274 Mich 345, 350; 264 NW 396 (1936), a showing of sufficient reason for the witness’ absence was a prerequisite to introduction of prior testimony. We are aware of no more recent cases in which this issue was addressed in light of MRE 804. We note, however, this Court’s decision in Sakas v Savoie, 53 Mich App 158; 218 NW2d 853 (1974), that the proponent of a subpoenaed witness and the court must take reasonable steps to enforce the subpoena as a prerequisite to admission of prior testimony. See also Mancusi v Stubbs, 408 US 204; 92 S Ct 2308; 33 L Ed 2d 293 (1972), in which a witness was deemed unavailable after attempts to serve a subpoena proved futile and his son testified at trial that he resided abroad.
We hold that a witness located outside the court’s jurisdiction is unavailable under MRE 804(b)(1) only after the proponent of his or her testimony has employed "reasonable means” to obtain the witness’ presence at trial. To hold otherwise would render the express language of MRE 804(a)(5) mere surplusage. Where, as here, a wit ness’ location is known, we will not find unavailability absent a showing that the proponent of the testimony attempted in good faith to obtain the witness’ attendance at trial. As plaintiff in the instant case made no effort to obtain the witness’ presence at the second trial, we find no unavailability for purposes of MRE 804(b)(1)- The circuit court committed no error in refusing to admit the prior testimony.
Plaintiff raises for the first time on appeal an alternative argument that the former testimony should have been admitted under MCR 2.308(A)(1)(c). This question is not properly preserved for appeal since plaintiff did not raise it in the court below. Marietta v Cliffs Ridge, Inc, 385 Mich 364, 374; 189 NW2d 208 (1971). In any case, MCR 2.308 concerns use of depositions at trial, not former trial testimony, and is a rule distinct from MRE 804. See Beachum v Bay Valley Associates, 120 Mich App 412, 419; 328 NW2d 54 (1982), lv den 418 Mich 853 (1983).
3. The circuit court properly limited plaintiffs theory of liability to the claim that his ingestion of Cleocin caused his injury.
Although plaintiff’s complaint alleged that his consumption of Cleocin "was the direct and proximate cause of various ill effects, including ulcerative colitis,” his counsel’s opening statement and the evidence offered in support of his case presented the theory that the drug may have aggravated a preexisting condition. When defendant objected to such theory, plaintiff moved on the third day of trial for leave to amend his complaint. The circuit court denied plaintiff’s motion because it was made too late. Plaintiff challenges the denial of his motion, and the court’s refusal to allow him to present proof that the drug aggravated a preexisting condition.
Leave to amend a complaint "shall be freely given when justice so requires.” MCR 2.118(A)(2). A motion to amend a complaint should be denied only for such specific reasons as futility, failure to cure deficiencies by amendments previously allowed, undue delay, prejudice to the nonmoving party, or bad faith or dilatory motive by the movant. Ben P Fyke & Sons v Gunter Co, 390 Mich 649, 656; 213 NW2d 134 (1973). This Court will not reverse the circuit court’s decision absent an abuse of discretion that results in injustice. Id. at 658.
Prejudice sufficient to justify denial of a motion for leave to amend a complaint arises when amendment would prevent a party from having a fair trial. The amendment’s effect on the outcome of trial is irrelevant. Id. at 657. Here, plaintiffs proposed amendment would have denied defendant a fair trial. Plaintiffs motion to amend on the third day of the second trial in this case was the first effort to introduce the preexisting condition theory as against defendant since the suit was filed in 1974. We disagree with plaintiff that allegations regarding a preexisting condition brought against the physician who prescribed Cleocin should have put defendant on notice of this theory of liability. The prescribing physician was dismissed from the case, and the issue of a preexisting condition was never raised at the first trial. Moreover, the physician’s alleged negligence in prescribing the drug is wholly independent of defendant’s liability for failure to warn of side effects or negligent testing. Given such lack of notice to defendant, introducing plaintiffs proposed theory of liability after commencement of the second trial would have prevented defendant from having a fair trial by precluding it from investigating facts pertinent to its defense.
Plaintiff also protests the circuit court’s characterization of his injury as "ulcerative colitis” in its charge to the jury. Plaintiff maintains that he was suffering from "antibiotic-associated or pseudo-membranous” colitis, and that the court should have included these terms in its jury instructions.
In presenting its case, defendant argued that plaintiff suffered from ulcerative colitis, which defendant asserts occurs naturally, rather than antibiotic-associated and pseudomembranous colitis, which defendant claims are drug-induced. Plaintiff’s counsel did not maintain such distinction in his use of terminology, and sought to show that these diseases were difficult to differentiate due to their similarities. Plaintiff’s complaint named ulcerative colitis as an adverse effect caused by Cleocin. However, plaintiff’s counsel said in his opening statement that plaintiff suffered antibiotic pseudomembranous colitis. Plaintiff’s counsel also remarked in his opening statement that ulcerative colitis can be drug-induced. In closing argument, counsel stated that drug-induced colitis is indistinguishable from ulcerative colitis.
Jury instructions must be read as a whole. Errors in the jury charge will require reversal only if failure to do so is inconsistent with substantial justice. Willoughby v Lehrbass, 150 Mich App 319, 336; 388 NW2d 688 (1986). Here, we find no injustice requiring reversal in the judge’s characterization of plaintiffs injury as ulcerative colitis. The challenged characterization was the only specific reference to a particular type of colitis in the entire jury charge; in the remainder of the charge, the judge merely referred to plaintiffs "injury.” Moreover, the jury instructions do not distinguish between naturally occurring and antibiotic-associated colitis, properly leaving for the jury the task of assigning a cause to plaintiffs condition. Our conclusion is supported by plaintiffs own efforts to minimize the distinction between the different types of colitis. The jury was adequately instructed that it could find defendant liable if plaintiff’s condition resulted from defendant’s conduct. The charge to the jury did not deny plaintiff substantial justice.
4. A warning issued pursuant to a March, 1975, fda directive was irrelevant where plaintiff had taken Cleocin in 1971.
Plaintiff attempted several times at trial to introduce into evidence a warning that had been placed on Cleocin labels pursuant to a March, 1975, fda directive. This warning was stronger than the one on the label when plaintiff took the drug in 1971, in that it included as a possible side effect "pseudomembranous colitis, a serious, potentially fatal gastrointestinal disease.” The court excluded the warning, first as a subsequent remedial measure under MRE 407, and later as irrelevant.
MRE 407 is no grounds for exclusion of evidence of a subsequent remedial measure taken by a third party where the evidence is otherwise relevant. Denolf v Frank L Jursik Co, 395 Mich 661, 669-670; 238 NW2d 1 (1976). Here, the proffered warning was ordered by a third party, the fda. How ever, the warning was not relevant to plaintiffs ingestion of the drug in 1971 absent a concomitant showing that defendant knew the need for a stronger warning in 1971. We find no abuse of discretion in the circuit court’s decision to exclude the warning. Kirk v Ford Motor Co, 147 Mich App 337, 343; 383 NW2d 193 (1985), lv den 426 Mich 866 (1986).
We disagree with plaintiff that defense counsel opened the door to admission of the warning when he asked a witness whether Cleocin was still used effectively as an antibiotic. While the question may have implied that Cleocin was safe, the witness’ reply did not. The witness testified only that the drug was on the market, but that he did not know the extent of its use. We further note that plaintiffs counsel managed to inject thé warning into a question asked a defense expert witness during cross-examination. Such question would render harmless any error by the circuit court regarding the directive. MCR 2.613(A).
5. Plaintiff presented no factual basis to support a jury instruction that defendant was on constructive notice of literature concerning Cleocin.
The circuit court denied plaintiff’s request for a jury instruction that defendant was on constructive notice of the medical and scientific literature regarding Cleocin published prior to 1971. Plaintiff now asserts that the requested instruction referred to a presumption relevant to the theory of his case.
The presumption that a manufacturer knows of scientific literature concerning the safety of its products was enunciated in Dunn v Lederle Laboratories, 121 Mich App 73, 79-80; 328 NW2d 576 (1982), lv den 417 Mich 1098 (1983). A presumption of law must rest on facts established by direct evidence. 29 Am Jur 2d, Evidence, § 163, p 199. Here, plaintiff failed to establish that any medical or scientific literature regarding Cleocin existed prior to plaintiff’s ingestion of the drug. Having failed to show facts giving rise to the presumption, plaintiff was not entitled to have the jury instructed on it. People v Dembinski, 62 Mich App 583, 589; 233 NW2d 662 (1975).
6. Plaintiff waived objections based on a juror’s familiarity with defense counsel’s wife.
On the second day of trial, defense counsel’s wife entered the courtroom and had a brief exchange with a juror during a break. On voir dire, it had been established that the juror worked at a doctor’s office where counsel’s wife was a regular patient. Plaintiff claims that the court should have granted him a mistrial on the basis of potential bias.
We disagree. Plaintiff’s counsel permitted the juror to sit on the panel despite his knowledge of her acquaintance with defense counsel’s wife. Plaintiff’s counsel also agreed when the court decided to solve the problem by instructing counsel’s wife to stay away from the courtroom. In any case, we will not reverse the circuit court’s decision regarding a potentially biased juror absent a clear abuse of discretion. People v Mason, 96 Mich App 47, 49-50; 292 NW2d 480 (1980). We find no abuse of discretion here.
Affirmed.
We note that our Supreme Court’s recent decision in Johnson v White, supra, specifically did not address the issue of the exception recognized in some jurisdictions for erroneous prior decisions because it found no error in this Court’s prior determination in that case. We are, however, hound by the Supreme Court’s earlier decisions which do not recognize the exception, and note that our conclusion logically follows from the Court’s statement in Johnson v White that an appellate court lacks jurisdiction to modify its own decisions except on rehearing.
The court’s charge to the jury was as follows:
When I use the words "proximate cause,” I mean that there must have been a connection between the conduct of the Upjohn Company, which the Plaintiff claims was negligent, and the injury complained of by the Plaintiff, which in this case is ulcerative colitis, and second, that the occurrence which is claimed to have produced that injury was a natural and probable result of such conduct on the part of the Upjohn Company.
We assume that plaintiff’s counsel properly preserved for appeal his objection to the jury instruction. We note that the parties made objections to jury instructions in chambers, but that the objections were not recorded for transcription due to clerical error. | [
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Per Curiam.
Defendant was charged with three counts of assault with intent to murder, MCL 750.83; MSA 28.278, three counts of possession of a firearm in the commission of a felony, MCL 750.227b; MSA 28.424(2), two counts of assault with a dangerous weapon, MCL 750.82; MSA 28.277, and one count of carrying a concealed weapon, MCL 750.227; MSA 28.424. At the time of defendant’s arrest he was fifteen years old. Defendant was born on September 1, 1969.
The prosecutor moved to waive probate court jurisdiction and try defendant as an adult. Pursuant to MCR 5.911, a Phase 1 hearing was held on February 7 and 28, 1985, in Oakland County Probate Court. After a finding of probable cause to believe that defendant committed the offenses, a Phase 2 hearing was conducted and jurisdiction was waived to the Oakland Circuit Court.
Defendant filed an interlocutory appeal in Oakland Circuit Court, where the waiver order was affirmed. Defendant appealed by leave granted. We affirm.
The felonious assault charges arose out of an incident on December 19, 1984. David Murphy, age thirteen, testified that he and a friend were playing in the woods when defendant shot at them with a rifle and chased them. Two of the assault with intent to murder charges arose out of a similar incident on January 2, 1985. Christopher McGowan testified that he and his friends, all age thirteen, were playing in the same woods when defendant, dressed in camouflage clothes, came out of the bushes. McGowan identified defendant. The other charge of assault with intent to murder arose out of an incident on January 8, 1985. Rosealee Costieu, age seventy-five, testified that defendant came into her store and selected some food items. Defendant appeared nervous and dropped his money. Then, without saying anything, defendant shot Mrs. Costieu in the stomach and ran away. Defendant was arrested on January 10, 1985.
The records indicate that defendant was convicted on April 4, 1986, by a jury in the Oakland Circuit Court of two counts of assault with intent to commit murder, MCL 750,83; MSA 28.278, and two counts of felony-firearm, MCL 750.227b; MSA 28.424(2). He was sentenced to life imprisonment for the former convictions and to two years imprisonment for the latter convictions. Defendant appealed these convictions as of right (unpublished opinion per curiam, released July 9, 1987 [Docket No. 93066]).
The issues raised in this appeal are:
1. Did the probate court improperly waive jurisdiction of this juvenile defendant?
2. Is the above issue moot?
As to the first issue, the defendant argues that the probate judge improperly based the waiver on a finding of the seriousness of the offenses and a finding that the failure of the correctional facilities to provide adequate treatment made defendant a danger to the public and not amenable to treatment. The defendant further contends that he had no prior record and, while the offenses are serious, the probate judge erroneously concluded that there was a repetitive pattern of offenses.
The record does not support the argument advanced by defendant. The probate judge dwelt at length on each factor in making his decision.
MCR 5.911 establishes the procedure for waiving probate court jurisdiction and identifies the factors the probate court must consider in making its decision. MCR 5.911(A)(1) provides that in the Phase 1 hearing the court shall determine if a felony has been committed and whether there is probable cause to believe that the child committed the crime. Defendant here does not appeal the probate court’s determination of probable cause.
In Phase 2, the criteria which the probate court must consider in determining whether jurisdiction should be waived are as follows:
On a showing of probable cause, the court shall conduct a full investigation to determine whether the interests of the child and the public would best be served by granting a waiver of jurisdiction to a court of criminal jurisdiction. In making the determination, the court shall consider and make findings on the following criteria before a waiver is granted:
(a) the child’s prior record and character, physical and mental maturity, and pattern of living;
(b) the seriousness of the offense;
(c) even though less serious, if the offense is part of a repetitive pattern of offenses which would lead to a determination that the child may be beyond rehabilitation under the regular statutory juvenile procedures;
(d) the relative suitability of programs and facilities available to the juvenile and criminal courts for the child;
(e) whether the best interests of the public welfare and the protection of the public security, generally, require that the child stand trial as an adult offender. [MCR 5.911(A)(2). See also MCL 712A.4(4); MSA 27.3178(598.4)(4), and People v Dunbar, 423 Mich 380; 377 NW2d 262 (1985).]
An order by the juvenile division of a probate court waiving jurisdiction of a juvenile will be affirmed where the probate court, on the basis of substantial evidence and thorough investigation, determines that the juvenile is not amenable to treatment or that, despite the potential for treatment, the nature of the difficulty is likely to render the juvenile dangerous to the public if released at age nineteen or to disrupt the rehabilitation of other juveniles in the treatment program prior to release. In addition, there must be evidence on the record, to which the probate court refers, regarding the relative suitability of programs available in the juvenile and adult correctional systems. People v Dunbar, 423 Mich 380; 377 NW2d 262 (1985), adopting the standard of review announced in People v Schumacher, 75 Mich App 505; 256 NW2d 39 (1977).
In this case, the probate court considered all of the criteria for waiving jurisdiction and found, based on substantial evidence, that defendant was not amenable to treatment in the juvenile system and that both defendant’s rehabilitative prospects and the interests of society’s security would best be served by waiving jurisdiction. The testimony about defendant’s hostility and anger was confirmed by the circumstances of the charged offenses.
Defendant argues that his cooperation in the detention unit is evidence of his potential for reform. Several witnesses testified, however, that a juvenile may comply with the rules of the facility and still not undergo an actual change in his or her behavior or character. There, was substantial evidence supporting the probate court’s conclusion that defendant, if released too early, would pose a serious danger to society.
Defendant argues that the probate court erroneously concluded that the charged incidents, which occurred within one month, constituted a repetitive pattern of behavior. Defendant points out that he had no prior juvenile record. The probate court did not err in concluding that the five incidents constituted a repetitive pattern of behavior. The fact that defendant did not have a prior juvenile record is not conclusive. All of the shootings were unprovoked attacks against defenseless children and an elderly woman. The fact that the offenses occurred in a short period of time does not prevent them from being considered a repetitive pattern of offenses.
The series of shootings also indicated the seriousness of defendant’s character disorders and indicated that he was beyond rehabilitation within the juvenile court system. Contrary to defendant’s contention, the probate court did not base its conclusion upon its finding of a repetitive pattern of offenses, but considered all of the criteria in making its decision.
Nor did the probate court base its decision only on the seriousness of the offenses, but, rather, it carefully considered defendant’s amenity to treatment and the treatment he required. The findings were based upon substantial evidence in the record and are affirmed by this Court. Dunbar, supra.
We disagree with the prosecutor’s position that this Court should consider the waiver of probate court jurisdiction as moot. The prosecutor claims that this issue is moot because it initially arose in an interlocutory appeal and the defendant subsequently was convicted in circuit court and claimed an appeal as of right (Docket No. 93066). The prosecutor argues that defendant’s appellate rights will be pursued in his appeal as of right and that this Court may inadvertently rule twice on the same case. However, a review of defendant’s appeal as of right reveals that defendant did not raise the issue of waiver of probate court jurisdiction in that appeal and this Court did not address it in its opinion (Docket No. 93066). Therefore, we need not fear that this Court will have disparate rulings on the same issue in this case. Furthermore, People v Jackson, 46 Mich App 764; 208 NW2d 526 (1973), upon which the prosecution relies, does not stand for the proposition that, in a case involving both appeals by leave and appeals as of right, the appeal by leave is rendered moot by disposition of the appeal as of right.
Waiver of juvenile code jurisdiction is a critically important action which determines vitally important statutory rights of the juvenile. Kent v United States, 383 US 541, 556; 86 S Ct 1045, 1055; 16 L Ed 2d 84, 94 (1966); People v Mahone, 75 Mich App 407, 414; 254 NW2d 907 (1977). We believe that this appeal by defendant is not moot because of defendant’s subsequent conviction and that the issue is properly before this Court for its consideration.
The probate court’s waiver of jurisdiction over defendant to circuit court is affirmed. | [
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Brickley, J.
This case presents two questions. First, did the Public Service Commission exceed its statutory authority in ordering Consumers Power Company to cease noneconomic operation of its Karri oil-fired generating plants and to limit acceptance of oil deliveries under its contract with Union Carbide? Second, did the commission’s order impair the contractual obligation of Union Carbide to provide oil to Consumers Power?
We hold that, in this case, the commission exceeded its statutory authority by ordering Consumers Power to stop operating its Karn units out of economic order and to limit its acceptance of oil deliveries from Union Carbide to those required for economic operation. Since we resolve this case on the basis of statutory authority, we need not reach the constitutional question of impairment of contractual obligation. Therefore, we reverse the judgment of the Court of Appeals and reinstate the judgment of the Ingham Circuit Court.
I. FACTS
The controversy in this case originated in July of 1981 with Consumers Power Company’s application to the Public Service Commission for an increase in Consumers’ electric rates. Concurrent with its application, Consumers moved the commission for partial and immediate rate relief, seeking an increase of $339 million annually and a minimum interim increase of not less than $178.3 million. In its notice of hearing, issued on July 28, 1981, however, the commission noted that it had commenced, on its own motion,
an investigation into the existing electric rates, charges, revenue deficiencies or excesses, services, practices, procedures and operations of Consumers Power Company, and the investigation will not necessarily be confined to matters contained in the application but will include all matters pertaining to the reasonableness and justness of Applicant’s electric rates, charges, operations and practices as may be necessary to enable the Commission to determine whether the existing or proposed rates and charges are unreasonable and excessive or inadequate and should therefore be increased, reduced or altered.
Hearings before hearing referee James Rigas began in September of 1981 and continued into 1982. On February 17, 1982, prior to the hearing on Consumers’ motion for interim rate relief, the commission staff filed a motion for an expedited partial final order. The staff sought to prevent Consumers from continuing to operate the Karn No. 3 and No. 4 oil-fired generating units "out of economic order.” In its motion, the commission staff calculated that Consumers had overcharged its ratepayers approximately $84 million because of Consumers’ uneconomic operation of the Karn No. 3 and No. 4 units. In addition, the commission staff projected that continued operation of the Karn No. 3 and No. 4 units in a noneconomic manner would cost Consumers’ ratepayers an additional $86 million in 1982. Since a reconciliation of the added fuel expenses "passed through” to rate payers would not occur until after Consumers had incurred these expenses, and since the possibility of the commission entering a final order before the reconciliation hearing was remote, the staff concluded that a partial final order was necessary to prevent "irreparable harm” to the ratepayers and to Consumers.
The uncontroverted competent material and substantial evidence on the record as described hereinafter establishes: 1) that Consumers will be forced to purchase oil under its contracts with Imperial Oil Company and Union Carbide Company for the Karn units; 2) that it will operate the Karn units in a noneconomic manner; and, 3) that its customers will be required to pay hundreds of millions of dollars for the uneconomic operation of the Karn units under its authorized fuel and purchased and net interchange power adjustment clauses, unless the Commission exercises its authority on an expeditious basis and orders Consumers to cease operating the Karn units in said fashion.
As a result, the commission staff recommended not only that the commission disallow any expenses Consumers incurred while operating Karn No. 3 and No. 4 in a noneconomic manner, but that the commission order Consumers to cease operating its Karn No. 3 and No. 4 units out of economic order.
Wherefore, it is respectfully requested that the [hearing referee] recommend and the Commission enter an Order as follows:
(a) That Consumers Power Company not operate the Karn 3 and Karn 4 oil-fired generating facilities out of economic order;
(b) That any expenses incurred while operating Karn 3 and 4 out of economic order shall be disallowed and not passed through to the ratepayers;
(c) That Consumers Power Company immediately attempt to seek termination and/or renegotiation of its oil contracts with Imperial Oil Limited of Toronto and Union Carbide Company, and advise the Commission of said negotiations; and
(d) That Consumers Power Company not purchase any oil for the Karn 3 and 4 units, until a need for the same can be demonstrated to the Commission, and an appropriate order issues.
In response, Consumers filed procedural objections to the commission staffs motion for an expedited partial final order. Consumers argued, in part, that "the Staffs proposed procedure [was] entirely without precedent.” On March 1, 1982, the hearing referee denied the staffs motion for an expedited final order. The staff then filed an appeal with the commission of the hearing referee’s denial of the motion.
On May 13, 1982, the commission issued a partial final order which granted both Consumers’ motion for interim relief as well as the staffs application for leave to appeal.
The granting of Staffs Application for Leave to Appeal does not result in a delay of the hearing on Applicant’s application for rate relief. There is no necessity for separating this matter into a separate docket, since all the necessary parties were present and the record has been made upon the uncontroverted evidence established by Applicant’s witnesses. Furthermore, the requisite exhibits have been marked and received into evidence.
Based on [sic] the preceding discussion, the Commission finds that the Staffs Application for Leave to Appeal should be granted and that Applicant shall cease taking deliveries under the aforementioned contracts in excess of quantities necessary for operating those units at levels required by economic dispatch of the system. Applicant shall also cease operation out of economic order. Any additional fuel expenses incurred while operating the Earn #3 and #4 oil-fired generating units out of economic order shall be disallowed and not passed on to ratepayers unless Applicant demonstrates the reasonableness of its actions from this date forward. The Staffs recommended adjustment to fuel and purchased and net interchange power expense to reflect economic operation of Earn #3 and #4 is reasonable for the purpose of determining partial and immediate relief.
Approximately two weeks later, on May 28, 1982, Union Carbide, which was not a party before the commission, filed a complaint and motion in the Ingham Circuit Court, asking the court to stay and vacate the commission’s partial final order. Union Carbide argued, in part, that the commission exceeded its statutory authority in ordering Consumers to not operate its Karn No. 3 and No. 4 plants out of economic order and to cease taking deliveries of oil under its contract with Union Carbide. Union Carbide also claimed that the commission’s order impaired its contractual obligation to supply oil to Consumers, in contravention of art I, § 10 of the United States Constitution and art 1, § 10 of the Michigan Constitution.
Subsequently, Consumers intervened as a party plaintiff in the Ingham Circuit Court action. On June 10, 1982, Ingham Circuit Court Judge Giddings entered a stay during the litigation, limited to those portions of the commission’s order which precluded noneconomic operation of the Karn units and acceptance of oil under the Union Carbide-Consumers Power contract. Thereafter, both Union Carbide and the commission filed their respective motions for summary judgment, the commission claiming that Union Carbide’s complaint failed to state a claim upon which to grant relief and Union Carbide arguing, in part, that the commission’s order exceeded its statutory authority.
On August 16, 1984, the Ingham Circuit Court issued its opinion, denying the commission’s motions, but granting Union Carbide’s motion for summary judgment. The court explained that the commission had shown no statutory basis for ordering Consumers to discontinue the noneconomic operation of its Karn units and to cease taking delivery of oil under Consumers’ contract with Union Carbide. As a result, the court concluded that the commission’s order was an unauthorized interference with Consumers’ management.
The Court will grant Union Carbide’s motion for summary judgment because she finds merit in its argument that the mpsc’s order was, to the extent it forbade Consumers to honor the Union Carbide-Consumers contract or to burn fuel purchased in accordance therewith in the Karn #3 and Karn #4 plants, in excess of the mpsc’s authority and jurisdiction._
The mpsc has not shown a basis for its actions in any statute. In oral argument, the mpsc seemed to have shifted ground and explained that because of an existing rate system which passed on certain costs automatically, the challenged provisions of the order were legitimated. Again, no statutory basis for this argument is provided. What was done by the mpsc in this case, with clearly the highest intentions, was an unauthorized and therefore impermissible intrusion into the management of Consumers Power. As suggested by Judge Giddings at the hearing prior to issuance of the injunction pendente lite, assuring that ratepayers not pay for the fuel oil purchases is one thing, but intruding into the management decision to buy and burn the fuel oil is quite another.
Having lost at the trial court level, the commission then filed an appeal in the Court of Appeals. In July of 1986, the Court of Appeals reversed the judgment of the Ingham Circuit Court and reinstated the decision of the commission, 153 Mich App 217; 395 NW2d 292 (1986). The Court of Appeals concluded, without much analysis, that the commission had acted properly and within its authority in ordering Consumers to cease the non-economic operation of the Karn units and to limit acceptance of oil deliveries from Union Carbide to those necessary for economic operation. The Court also found "no merit” to the argument that the commission’s order impaired the obligation of the contract between Consumers and Union Carbide.
Both Consumers and Union Carbide applied for leave to appeal in this Court; the commission filed a cross-application for leave to appeal. In February of 1987, the Court granted leave to appeal, limited to the question
whether the Public Service Commission exceeded its authority in ordering intervening plaintiff [Consumers] not to operate certain oil-fired plants in other than economic order and to cease taking deliveries of oil under a contract with plaintiff [Union Carbide] except to the extent required by such economic operation. [428 Mich 857 (1987).]
The Court denied the commission’s application for leave to appeal as cross-appellant.
II. DISCUSSION
The Public Service Commission possesses no "common law” powers. See Huron Portland Cement Co v Public Service Comm, 351 Mich 255, 262; 88 NW2d 492 (1958). As a creature of the Legislature, the commission possesses only that authority bestowed upon it by statute.
The Michigan public utilities commission[ ] is an administrative body created by statute and the warrant for the exercise of all its power and authority must be found in statutory enactments. [Sparta Foundry Co v Public Utilities Comm, 275 Mich 562, 564; 267 NW 736 (1936).]
See also G & A Truck Line, Inc v Public Service Comm, 337 Mich 300, 305; 60 NW2d 285 (1953); Kirkby v Public Service Comm, 320 Mich 608, 612; 32 NW2d 1 (1948). Thus, a determination of the commission’s powers requires an examination of the various statutory enactments pertaining to its authority.
1. THE PUBLIC SERVICE COMMISSION ACT
Section 6 of the Public Service Commission act, MCL 460.1 et seq.; MSA 22.13(1) et seq., which outlines the commission’s power and jurisdiction, provides in pertinent part:
The Public Service Commission is vested with complete power and jurisdiction to regulate all public utilities in the state except a municipally owned utility, the owner of a renewable resource power production facility as provided in section 6d, and except as otherwise restricted by law. The Public Service Commission is vested with the power and jurisdiction to regulate all rates, fares, fees, charges, services, rules, conditions of service, and all other matters pertaining to the formation, operation, or direction of such public utilities. The Public Service Commission is further granted the power and jurisdiction to hear and pass upon all matters pertaining to, necessary, or incident to the regulation of all public utilities, including electric light and power companies, whether private, corporate, or cooperative, gas companies, water, telephone, telegraph, oil, gas and pipeline companies, motor carriers, and all public transportation and communication agencies other than railroads and railroad companies. [MCL 460.6(1); MSA 22.13(6)(1). Emphasis added.]
Although its language is broad, § 6 merely serves as an outline of the commission’s jurisdiction, not as a grant of specific authority or powers. As this Court concluded in Huron Portland Cement, supra at 263:
The broad language [of § 6] furnishes no grant of specific powers. It is an outline of jurisdiction in the commission and does not purport to be more. If, indeed, the general language quoted had the effect of vesting particular, specific, powers in the commission, not only would a constitutional question be presented arising from an asserted lack of standards . . ., but there would have been no need whatever for the many statutes enacted (both before and after the effective date of PA 1939, No 3) vesting specific powers in the commission. [Citations omitted.]
See also Detroit Edison Co v Richmond Twp, 150 Mich App 40, 49; 388 NW2d 296 (1986). Since the commission’s powers are limited by statute and § 6 furnishes no grant of specific powers, § 6 by itself offers little support for the commission’s order in this case.
The commission’s argument, however, does not rely solely on the broad statutory language of § 6. Instead, the commission contends that § 6 provides an outline of its permissible powers upon which various other statutory sections elaborate. Thus, the commission concludes that §6, in conjunction with other statutory provisions, provides the authority for its order in this case.
For example, the commission argues that its authority to fix and regulate reasonable utility rates, of necessity, encompasses the power to prevent noneconomic management practices which threaten the integrity of the ratemaking process. As this Court asserted in Detroit v Public Service Comm, 308 Mich 706, 716; 14 NW2d 784 (1944), "[i]t is the duty of the commission, under its statutory power, to fix a just and reasonable rate.” See also MCL 460.6a(l), (2); MSA 22.13(6a)(l), (2).
The commission’s argument, though it may be economically supportable, is legally unsound. The commission is a creature of the Legislature and, as such, possesses only those powers conferred upon it by statute. See G & A Truck Line, supra at 305; Kirkby, supra at 612; Sparta Foundry, supra at 564. The power to fix and regulate rates, however, does not carry with it, either explicitly or by necessary implication, the power to make management decisions.
It must never be forgotten that while the State may regulate with a view to enforcing reasonable rates and charges, it is not the owner of the property of public utility companies and is not clothed with the general power of management incident to ownership. [Missouri ex rel Southwestern Bell Telephone Co v Public Service Comm, 262 US 276, 289; 43 S Ct 544; 67 L Ed 981 (1923).]
The commission acted properly in preventing Consumers from passing on to ratepayers any additional fuel expenses incurred while operating the. Karn units out of economic order. This portion of the commission’s order related directly to its power to regulate rates and charges; Consumers was passing through to the consuming public increased charges due to its noneconomic operation.
By comparison, the connection between the commission’s explicit statutory authority to set rates and its alleged authority to order the cessation of certain noneconomic management practices is much more attenuated. Furthermore, by its own admission, the commission excluded from Consumers’ base rates the increased fuel costs stemming from noneconomic operation of the Karn units. Thus, the commission prevented Consumers’ non-economic operation of the Karn units from adversely affecting both the utility’s base rates as well as the charges passed through to ratepayers in the fuel adjustment clauses.
Although Consumers’ actions might make the ratemaking process lengthier and more, difficult, this increased complexity alone does not justify the commission’s action in this case. The commission possesses the authority to regulate a utility’s rates and charges. It exercised that authority by precluding Consumers’ recovery of those increased charges incurred as a result of the company’s noneconomic operation of the Earn units. However, by ordering Consumers to cease certain non-economic management practices, the commission exceeded its ratemaking authority.
2. THE PUBLIC UTILITIES COMMISSION ACT
Section 4 of the Public Service Commission act explicitly carried forward the rights, powers, and duties accorded the Public Utilities Commission.
All the rights, powers, and duties vested by law in the Michigan public utilities commission shall be transferred to and vested in the Michigan public service commission created in section 1, and shall be exercised and performed by it. The Michigan public service commission shall have and exercise all rights, privileges and the jurisdiction in all respects as has been conferred by law and exercised by the Michigan public utilities commission. [MCL 460.4; MSA 22.13(4).]
Thus, a determination of the limits of the commission’s power requires an examination of the provisions of the Public Utilities Commission act, 1919 PA 419, MCL 460.54; MSA 22.4.
Section 4 of the Public Utilities Commission act set forth, in general terms, the powers and duties of the Public Utilities Commission. Section 4 provided, in pertinent part:
[The Commission’s] jurisdiction shall be deemed to extend to and include the control and regulation, including the fixing of rates and charges, of all public utilities within this state producing, transmitting, delivering or furnishing steam for heating or power, or gas for heating or lighting purposes for the public use. [MCL 460.54; MSA 22.4. Emphasis added.]
By itself, this language does little to resolve the question at issue in this case. As this Court noted in Mason Co Civil Research Council v Mason Co, 343 Mich 313, 326-327; 72 NW2d 292 (1955):
"The power and authority to be exercised by boards or commissions must be conferred by clear and unmistakable language, since a doubtful power does not exist.” [Citing 67 CJS, Officers, § 107, p 378.]
Yet, the only power granted with any specificity in §4 is the power to fix utility rates and charges. The language of § 4 is no more specific than is the language of § 6 of the Public Service Commission act, which this Court, in Huron Portland Cement, supra, construed as merely an outline of the commission’s jurisdiction, not a grant of specific powers.
Moreover, the mere recital of the power to control and regulate public utilities does not, of necessity, entail the power to order a utility to follow particular principles of economic management. In fact, the power to regulate does not convey with it the power to exercise general management powers. See Southwestern Bell Telephone Co, supra at 289; 73B CJS, Public Utilities, § 12b, p 153. Since § 4 of the Public Utilities Commission act does not specifically confer upon the commission the power to make management decisions concerning the economic operations of a public utility, § 4 adds little to an appreciation of the limits of the commission’s powers.
The commission also cites §5 of the Public Utilities Commission act as support for its order in this case. Section 5 provides as follows:
The commission shall also have authority to make and prescribe regulations for the conducting of the business of public utilities, subject to the jurisdiction thereof, and it shall be the duty of every corporation, joint stock company, association or individual owning, managing or operating any such utility to obey such rules and regulations. [MCL 460.55; MSA 22.5.]
But § 5 is not applicable to the facts of this case. The commission’s order was not pursuant to a regulation empowering it to order a utility, under certain circumstances, to cease particular management practices. As appellant Consumers notes, this case "does not involve the promulgation of rules or regulations . . . .”
Finally, one of the more persuasive arguments advanced by the commission is that § 8 of the Public Utilities Commission act vested it with broad powers to investigate, coupled with extensive powers to act pursuant to its investigation. Section 8 provides:
Upon complaint in writing that any rate, classification, regulation or practice charged, made or observed by any public utility is unjust, inaccurate, or improper, to the prejudice of the complainant, the commission shall proceed to investigate the matter. The procedure to be followed in all such cases shall be prescribed by rule of the commission: Provided, however, That in all cases reasonable notice shall be given to the parties concerned as to the time and place of hearing. . . . Upon the completion of any such hearing, the commission shall have authority to make an order or decree dismissing the complaint or directing that the rate, charge, practice or other matter complained of, shall be removed, modiñed or altered, as the commission deems just, equitable and in accordance with the rights of the parties concerned. [MCL 460.58; MSA 22.8. Emphasis added.]
However, MCL 460.58; MSA 22.8 also does not apply to the facts of this case because the commission did not satisfy the statutory prerequisite of a complaint in writing. While the commission may make a complaint on its own motion, see 1979 AC, R 460.31(1), it did not do so in this case. Consumers originally applied to the commission for an increase in its electric rates. In its notice of hearing on the application for rate relief, the commission noted that it had commenced, on its own motion, an investigation into Consumers’ "existing rates, charges, revenue deficiencies or excesses, services, practices, procedures and operations . . . .” The commission’s notice of hearing, however, was not a complaint. See, e.g., 1979 AC, R 460.31, 460.32. Moreover, even though the language of investigation in the commission’s notice was broad, the language describing the commission’s purpose in investigating was limited to corrective action taken only as to proposed rates and charges.
[T]he investigation will not necessarily be confined to matters contained in the application but will include all matters pertaining to the reasonableness and justness of Applicant’s electric rates, charges, operations and practices as may be necessary to enable the commission to determine whether the existing or proposed rates and charges are unreasonable and excessive or inadequate and should therefore be increased, reduced or altered. [Emphasis added.]
Moreover, despite the commission’s argument to the contrary, dicta from this Court’s decision in Attorney General v Public Service Comm, 412 Mich 385; 316 NW2d 187 (1982), does not support the commission’s conclusion that MCL 460.58; MSA 22.8 gives it the authority to order Consumers to cease noneconomic management practices. In Attorney General, the Court held that the scope of the commission’s inquiry in a securities issue proceeding "[did] not extend to the wisdom of the project which a utility [sought] to fund through the issuance of long-term securities.” Id. at 391-392. The commission had approved the issuance of securities to finance the construction of three different generating facilities. The Attorney General and the Michigan Citizens Lobby challenged the commission’s decisions, arguing that the commission should have considered the need for the plants’ construction in determining whether to approve an issuance of securities for continued construction. Although the Court rejected this argument, it did explain, in dicta, that the commission was not without the authority to conduct preconstruction review of potential generating facilities in order to determine whether to issue securities to finance construction. On the basis of this dicta, the commission argues that if it may "determine the need for plant construction, logic dictates that the Commission has the power under the same grant of authority to require the halt to uneconomic dispatch . . .
The commission’s analogy, however, is flawed. In Attorney General, the Court did not assert that the commission had the power to order a utility to cease construction of a generating plant. Rather, the Court stated that the commission could determine that construction of a generating plant was unreasonable or unnecessary and could refuse to allow an issuance of securities for its construction. By analogy to Attorney General, the commission could disallow the pass-through to consumers of increased fuel expenses incurred by Consumers because of its noneconomic operation of its Karn units. But the commission could not order Consumers to cease operating its Karn units out of economic order. This order was equivalent to ordering a utility to cease construction of a generating plant whose construction the commission found unreasonable. Attorney General did not go this far; thus, it does not stand for the proposition advanced by the commission.
3. THE RAILROAD ACT
One of the more interesting arguments advanced by the commission is that the authority vested in the Michigan Railroad Commission, which was transferred to the Michigan Public Utilities Commission and then to the Michigan Public Service Commission, empowers the commission to order a utility to cease certain noneconomic practices. The Public Utilities Commission act, 1919 PA 419, MCL 460.54; MSA 22.4, explicitly transferred to the Public Utilities Commission the same measure of authority over utilities that the Michigan Railroad Commission exercised over railroads. In turn, § 4 of the Public Service Commission act trans ferred to the Public Service Commission "[a]ll the rights, powers, and duties vested by law in the Michigan public utilities commission . . . MCL 460.4; MSA 22.13(4). Since the commission now possesses the same measure of authority over utilities as the Railroad Commission once did over railroads, an examination of the provisions of the railroad act, 1909 PA 300, MCL 462.2 et seq.; MSA 22.21 et seq., is in order.
The Railroad Commission did not enjoy sweeping powers, rather, its authority was narrow and limited by statute.
The Michigan Railroad Commission is a body possessing limited powers, to be ascertained by reference to the statute creating it. [Grand Rapids & I R Co v Railroad Comm, 183 Mich 383, 392; 150 NW 154 (1914).]
Nonetheless, the commission argues that several provisions of the railroad act, when read together, empower the commission to inquire into and rectify unreasonable or noneconomic management practices.
First, § 28 of the railroad act provided the Railroad Commission with the authority to inquire into the management of a railroad’s business.
The commission shall have authority to inquire into the management of the business of any common carrier and shall keep itself informed as to the manner and shall have the right to obtain from any common carrier all necessary information to enable the commission to perform the duties and carry out the objects for which it is created. [MCL 462.28(a); MSA 22.47(a).]
Second, § 22 of the act empowered the Railroad Commission to investigate unreasonable rates or inadequate service.
Upon complaint in writing of any person, firm or corporation or association, or of any mercantile, agricultural or manufacturing society, or of any body politic or municipal organization, that any of the rates, fares, charges or classifications, or any joint rate or rates are in any respect unreasonable or unjustly discriminatory, or that any regulation or practice whatsoever affecting the transportation of persons or property or any service in connection therewith, is in any respect unreasonable or unjustly discriminatory, or that any service is inadequate, the commission shall notify the common carrier complained of that complaint has been made and shall furnish a copy of the said complaint with said notice, and twenty [20] days after such notice has been given the commission may proceed to investigate the same as hereinafter provided .... If, upon such investigation, the rate or rates, joint rate or rates, fares, charges or classifications, regulation, practice or service complained of shall be found to be unreasonable, inadequate or unjustly discriminatory, the commission shall have power to and it shall determine and by order fix and order substituted therefor, such rate or rates, joint rate or rates, fares and charges, as is or are just and reasonable, and which shall be the maximum to be charged in the future, and such classifications, regulation, practice or service as is or are just, reasonable and adequate, and which shall be imposed and followed or service rendered in future in lieu of that found to be unreasonable, inadequate or unjustly discriminatory, and in either case the commission shall make an order that the common carrier cease and desist from such violation, and shall conform to the regulation and practice so prescribed .... [MCL 462.22(a); MSA 22.41(a).]
Finally, § 32 of the railroad act empowered the commission, after hearing and investigation of any unreasonable charge, regulation, or practice to regulate such charge, regulation, or practice as provided by § 22 of the act.
Whenever, after hearing and investigation as provided in this act, the commission shall find that any charge, regulation or practice affecting the transportation of passengers or property, or any service in connection therewith not herein specifically designated, is unreasonable or unjustly discriminatory, it shall have the power to regulate the same as provided in section 22 of this act. [MCL 462.32; MSA 22.51.]
The commission argues that these provisions of the railroad act, coupled with the transfer of power provisions in the Public Utilities Commission and Public Service Commission acts, support the commission’s authority to inquire into a utility’s management and order the cessation of non-economic management practices.
This argument, however, overlooks the fact that the commission initiated the investigation in this case without "[a] complaint in writing of any person [etc.] . . . .” Section 22(c) provides the authority for the commission to investigate on its own motion.
Whenever the commission shall believe that any rate or rates or charge or charges may be unreasonable or unjustly discriminatory, or that any service is inadequate, and that any investigation relating thereto should be made, it may, upon its own motion, investigate the same. Before making such investigation, it shall present to the common carrier a statement in writing, setting forth the rate or charge to be investigated. Thereafter, on ten [10] days’ notice to the common carrier of the time and place of such investigation, the commission may proceed to investigate such rate or charge in the same manner and make like orders in respect thereto as if such investigation had been made upon complaint. [MCL 462.22(c); MSA 22.41(c). Emphasis added.]
The language of § 22(c), unlike that of § 22(a), is much more circumscribed. Although sentence one of § 22(c) refers to investigation of rates, charges, or inadequate service, sentence two indicates that the investigation of inadequate service relates to its effect upon rates or charges. After all, sentence two states that the commission must present in writing the rate or charge — not the service — to be investigated. Moreover, the final sentence of § 22(c) states that the commission may investigate the rate or charge complained of and make orders in respect to such rate or charge. Therefore we do not find that the railroad act supports the commission’s authority to order Consumers to stop operating its Karn units out of economic order and to discontinue accepting oil under its contract with Union Carbide except as required for economic operation under the circumstances of this case.
The commission also argues that §4 of the railroad act imposes on utilities a statutory duty to maintain just and reasonable rates. While the commission has such a statutory duty, this duty does not necessarily imply the power to require utilities to undertake prudent management practices. The commission may disallow increased expenses incurred as a result of mismanagement, but it may not require a utility not to incur particular expenses. See discussion ante, pp 150-152.
Finally, the commission notes that §44 of the railroad act vests the commission with police pow ers. Standing alone, however, this statutory provision offers little support for the commission’s actions in this case. To begin with, § 44 does not delineate the commission’s powers; thus, the specific powers of the commission are to be ascertained by reference to statute. See Grand Rapids & I R Co, supra at 392. In addition, a strict, as opposed to a liberal, construction of statutory provisions granting away the state’s police power is preferable.
The legislature is regarded as the guardian of society, and therefore is not presumed to disable itself or abandon the discharge of its duty. It follows that the courts are inclined towards a strict interpretation of statutes that tend to grant away the police power of the state. . . .
The presumption in favor of the state’s retention of its police power, as a factor in the interpretation of public grants, is influenced by constitutional considerations. Constitutions are widely understood to withhold from legislatures any authority to bargain away their police power and so the rule of statutory interpretation that every presumption will be indulged in to sustain the constitutionality of a statute is germane to the rule of strict construction for statutes purporting to grant such power. [3 Sands, Sutherland Statutory Construction (4th ed), § 63.07, p 151.]
Since no other provision of the railroad act em powered the commission in this case to order Consumers to cease certain noneconomic practices, it cannot be the authority for the commission’s order.
4. THE ELECTRIC TRANSMISSION ACT
The commission argues that § 7 of the electric transmission act, 1909 PA 106, MCL 460.557; MSA 22.157, reinforces its position that it possesses the authority to order an electric utility, such as Consumers, to cease noneconomic operation. Section 7 provided, in pertinent part:
Upon complaint in writing by any consumer or city, village, or township, by its duly constituted common or village council or township board, or other duly constituted authority of such city, village or township, relative to the price of the electricity sold and delivered in such municipality, or with reference to the service rendered or any other matter of complaint, the commission shall investigate such complaint and may by its agents, examiners, inspectors, engineers and accountants inspect the system and method used in transmitting and supplying electricity and examine or cause to be examined the books and papers of such person, firm or corporation pertaining thereto. The commission shall cause notices of such complaint with a copy thereof to be served on the person, firm or corporation complained of or affected thereby which shall have a right to be heard in respect to the matter complained of at a convenient time and place to be fixed in such notice. After such investigation and hearing, the commission within lawful limits may by order fix the price of electricity to be charged by such person, firm or corporation, and the price so fixed, of which such person, firm or corporation shall have notice, shall be the price to be charged until the commission shall again fix the price to be charged therefor. Said commission may also by order establish such rules and conditions of service as shall be just and reasonable. [MCL 460.557; MSA 22.157. Emphasis added.]
The commission’s argument, however, is again flawed. The investigatory and remedial powers conferred upon the commission in § 7 are initiated by a written complaint. The statutory language limits the complainants to consumers and to cities, villages, townships, or their duly constituted authorities. Section 7 does not give the commission the authority to make, on its own motion, a complaint regarding a utility’s prices or services. Moreover, since no written complaint with respect to Consumers, relative to its prices, services, or other matters was made, § 7 does not apply to the facts of this case.
III. CONCLUSION
None of the statutory provisions offered by the commission supports its argument that it possessed the authority, in this case, to order Consumers Power Company to stop operating its Karn units out of economic order and to limit acceptance of oil deliveries from Union Carbide to those necessary for economic operation. The provisions offered by the commission either do not apply to the facts of this case or do not confer the power to make management decisions with the same degree of specificity that the Legislature used in conferring upon the commission the authority to set utility rates. Since we resolve this case on the basis of statutory authority, we need not reach appellants’ second issue — the constitutional question of impairment of contractual obligation. We reverse the judgment of the Court of Appeals and reinstate the judgment of the Ingham Circuit Court.
Riley, C.J., and Levin, Cavanagh, Boyle, Archer, and Griffin, JJ., concurred with Brickley, J.
Operating a plant "out of economic order” means
depart[ing] from the commonly accepted practice of placing online units with the cheapest fuel costs first and "building up” as the load increases, and then taking off the most expensive plants first when load decreases. Uneconomic operation thus occurs when an expensive unit is operated even though a more reasonable cost unit is available to the system at the same time.
Under both the fuel cost adjustment clause and the purchased and net interchange adjustment clause, Consumers "passed through” to ratepayers ninety percent of its increased fuel and purchased and net interchange power expenses; Consumers bore ten percent of these increased costs.
The commission was of the opinion that the [fuel cost adjustment clause] and the purchased power adjustment clause [would] work in tandem to give the utility incentive to resort to the least costly alternative of either purchasing additional fuel for its own power generation or buying already-generated power from the power pool. [Attorney General v Public Service Comm, 122 Mich App 777, 781; 333 NW2d 131 (1983).]
In 1982 PA 304, the Legislature amended the Public Service Commission act to disallow the use of fuel adjustment clauses. See MCL 460.6a; MSA 22.13(6a); see also Detroit Edison v Public Service Comm, 416 Mich 510, 525, n 1; 331 NW2d 159 (1982) (Levin, J., dissenting).
The hearing referee denied the motion immediately following the hearing on Consumers’ motion for interim rate relief, which took place between February 23 and March 1, 1982.
In July of 1982, while its case against the commission was pending in Ingham Circuit Court, Union Carbide filed suit against Consumers in federal district court, seeking $162 million in damages from Consumers for breach of contract. In September of 1986, United States District Judge Charles Joiner provisionally ruled in Consumers’ favor. The court concluded that if the commission’s partial final order stood after the conclusion of the appeals process in the Michigan courts, the order would constitute force majeure and relieve Consumers of liability for failure to take delivery of any oil subsequent to the commission’s May 13 order. On April 9, 1987, the federal district court case was dismissed by stipulation of the parties.
As appellant Union Carbide notes, the Court of Appeals erred in reinstating, in fall, the commission’s order.
The Circuit Court’s opinion acknowledged all the issues raised by Union Carbide and noted that the summary judgment motion was based on only two of them, lack of statutory authority and unconstitutional impairment of contract. App 138a. Because the Circuit Court granted Union Carbide summary judgment on the statutory authority issue, it never addressed the remaining issues.
. . . The Court of Appeals failed to recognize that additional issues were presented by Union Carbide’s complaint and that those issues never had been ruled upon by the Circuit Court. Instead, the Court of Appeals simply restored the commission’s order to full effect without remanding the case to the Circuit Court for further proceedings.
As described by the Circuit Court’s opinion, App 137a, Union Carbide’s claims are:
"Count i — The mpsc exceeded its statutory authority and jurisdiction.
"Count ii — The mpsc order would impair the obligations of contracts in violation of US Const, art I, § 10 and Const 1963, art 1, § 10.
"Count hi — The mpsc’s action was arbitrary and capricious.
"Count iv — The mpsc’s action violated procedural due process in violation of US Const, Am XTV and 1963 Const, art 1, § 17.
"Count v — The mpsc entered the order contrary to various legal requirements.
"Count vi — The mpsc’s order was contrary to Attorney General v Michigan Public Service Commission, 412 Mich 385, 405, 416 [316 NW2d 187] (1982).”
In its application for leave to cross-appeal, the commission took issue with the Court of Appeals conclusion that Union Carbide had standing to file suit to challenge the commission’s order to Consumers and that Consumers could intervene as a party plaintiff in the lawsuit brought by Union Carbide against the commission. See Union Carbide v Public Service Comm, 153 Mich App 217, 223-228; 395 NW2d 292 (1986).
The Public Service Commission was created by statutory enactment. Dissatisfied with the performance of the Public Utilities Commission, the Michigan Legislature enacted the Public Service Commission act, 1939 PA 3, MCL 460.1 et seq.; MSA 22.13(1) et seq., abolishing the Public Utilities Commission and establishing the Public Service Commission. The Public Service Commission acquired all the rights, powers, and duties vested in its predecessor, the Public Utilities Commission. See Detroit & TSLR Co v Public Service Comm, 324 Mich 195, 199; 36 NW2d 896 (1949).
This portion of the commission’s order is not at issue in this appeal.
Although 1982 PA 304, an amendment of the Public Service Commission act, was enacted subsequent to the commission’s order in this case, § 6j of 1982 PA 304 provides an indication of the Legislature’s intent with regard to the authority of the Public Service Commission. Section 6j(7) empowers the commission to indicate in its review of a utility’s five-year plan, see MCL 460.6j(3), (4); MSA 22.13(6j)(3), (4), any cost items for which the utility likely would not recover. Thus, the Legislature specifically provided a review procedure by which the commission could indicate to utilities those costs the commission considered nonrecoverable. Had the Legislature wanted to give the commission the authority to order the cessation of noneconomic management practices, which resulted in nonrecoverable costs, the Legislature could have done so explicitly in the Public Service Commission act.
See the public securities act, MCL 460.301 et seq.; MSA 22.101 et seq.
Every common carrier is hereby required to furnish reasonably adequate service and facilities and shall provide and furnish transportation of passengers and property upon reasonable requests therefor, and all charges made for any service in connection therewith, or for the receiving, switching, delivering, storing, transporting or handling of such persons or property shall be reasonable and just, and every unjust and unreasonable charge for such service is prohibited and declared to be unlawful. [MCL 462.4(a); MSA 22.23(a).]
The police powers of the state over railroads, street railways, interurban railways and suburban street railways, whether operated by steam, electricity or other motive power, organized or doing business in this state, shall be and the same are hereby vested in the railroad commission, and it is hereby made the duty of said railroad commission to exercise the same in accordance with the requirements of the law. [MCL 462.44; MSA 22.62.]
The power to regulate electric utilities was transferred to the Railroad Commission by the electric transmission act, 1909 PA 106, MCL 460.551 et seq.; MSA 22.151 et seq.
MCL 460.557; MSA 22.157 was amended by 1987 PA 8.
We emphasize that this holding is the product of thirty years of legislative acquiescence following Huron Portland Cement Co v Public Service Comm, 351 Mich 255; 88 NW2d 492 (1958). The historical process of legislative overlay, in which the Public Service Commission act, 1939 PA 3, was superimposed upon the Public Utilities Commission act, 1919 PA 419, which was itself superimposed upon the Railroad Commission act, 1909 PA 300 (with reference to 1909 PA 106 governing the transmission of electricity), has created a statutory jungle. Each decision issued by the courts in the area of utilities regulation entails a journey into the heart of darkness in which the only reliable guideposts are this Court’s own prior decisions. The time has long passed for a comprehensive review of this legislation.
The relevant acts do contain specific grants of "managerial” authority to the Public Service Commission, although the very specificity of these grants indicates that general managerial authority has never been conferred upon the psc. See, e.g., MCL 460.551, 460.552, 460.555; MSA 22.151, 22.152, 22.155. | [
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Cooley, J.
Town, having in his hands two executions against Elmore for service as constable, levied the same on stock in a foundry and machine shop which were being carried on by Elmore. • Without having any inventory of this stock made, or taking any steps to enable Elmore, if he claimed any part of it as exempt from execution, to have the same set off, Town proceeded to make sale thereof. Elmore then brought suit in trover.
Th¿ statute provides that there shall be exempt from levy and sale under any execution, or upon any other final process of a court, “the tools, implements, materials, stock, apparatus, team, vehicle, horses, harness, or other things to enable any person to carry on the profession, trade, occupation or business in which he is wholly or principally engaged, not exceeding in value two hundred and fifty dollars.” It then proceeds to say that when a levy is made upon property of any class or species which is exempt by law from execution to a specified amount or value, the officer shall make an inventory of the whole of such property belonging to the defendant in the execution, and . cause the same to be valued • by appraisers on oath, and that the defendant may then select from the inventory the amount or value exempted by law from execution.
It was contended on behalf of the constable that if he left in possession of the' judgment debtor, stock to the amount of two hundred and fifty dollars, he could not be liable for a failure to cause what he did levy upon to be inventoried and appraised; and a distinction was taken between a levy on tools, implements, team, etc., in respect to which it is always supposable the debtor may have a choice which would be important to him, and a levy on a part of the stock in trade or business, one part of which may be assumed to be as desirable for the debt- or’s purposes as any other part. But the statute affords no ground for such a distinction, nor does any exist in reason. By the statute the. same right of choice is given in all the enumerated cases, and this is perhaps as likely to be valuable in the case of stock as in the case of tools, team, etc. There is no doubt the plaintiff was entitled to maintain his action. Elliott v. Whitmore, 5 Mich., 532; Wyckoff v. Wyllis, 8 Mich., 48.
Elmore gave evidence that the property levied upon and sold was of the value of- $800, and there seems to have been no attempt on the part of the defendant to show that the value was less than the amount exempt. The circuit judge instructed the jury that as Elmore had had no opportunity to make his selection, he was entitled to their verdict for the sum of $250. It is insisted that this was erroneous and that he should have expressly limited the recovery to the value of the property, as the jury might find it to be, not exceeding $250. This would have been a very proper restriction, and probably the judge would have put his instruction in that form had his attention been specially called to the point now made; but as the jury under the evidence must have found the value to be $250 and over, the defendant was not wronged.
As the circuit judge placed upon the statute the same construction which is given above, and no error in any other particular is discoverable, the judgment must be affirmed with costs.
The other Justices concurred. | [
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Cooley, J.
The defendant in error proceeded against the plaintiffs in error, who were non-residents of the State, by attachment issued by a justice of the peace. The writ was issued April 10, 1877, and was made returnable April 21. The constable returned that he could not find any one of the defendants named in the writ in the county, but he did not return that he had left a copy of the writ at the last place of residence of any of the defendants in the county, or that there was no such last place of residence. This was a fatal defect in the return. The proceeding is special and statutory, and every precaution prescribed by the statute for bringing notice of the proceedings to the parties concerned must be observed. Leaving such a copy at the last place of abode as required by the statute, Comp. L., § 5276, is presumably important, and cannot be omitted.
The plaintiff below proceeded against a garnishee, and having obtained from him a disclosure'of indebtedness to the principal defendants, went on afterwards and obtained a judgment against those defendants under § 5290 of the Compiled Laws. The date of this judgment is May 29, 1877. June 15, 1877, an attorney for the defendants presented to a circuit court commissioner an affidavit for a certiorari from this court, reciting therein the facts, and averring his belief that the defendants themselves had no knowledge of the proceedings until after June 6, 1877. The writ was issued and return made, and for the defect in the constable’s return already noted, the proceedings must be reversed.
We are of opinion, however, that costs ought not to be awarded on this reversal. There is no showing from the plaintiffs in error of the time when knowledge of these proceedings first came to them, except the belief of their attorney, which must be based upon hearsay. The allowance of a certiorari from this court is exceptional, and we are not inclined to favor it except where it is necessary to prevent a failure of justice. That was the ground on which it was allowed in Withington v. Southworth, 26 Mich., 381. These plaintiffs in error, for all that is shown here, may have known of the proceedings while they were pending before the justice, or in time to take their statutory remedy by appeal to the circuit court, or by removing the proceedings to that court by certiorari. In the absence of a showing on that subject, we will not award costs to a party who presumably has come to this court without necessity.
The other Justices concurred. | [
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Campbell, C. J.
Relator is one of the Board of Public Works of Detroit, appointed January 30, 1874, and reappointed for four years from January 30, 1877. On the 11th of February, 1877, his salary was fixed for the ensuing year at $3000, as it had been every year theretofore. December 22d, 1877, it was fixed for the second year at $2500.
He claims this to be in violation of section 23 of chapter 5 of the charter of Detroit, which is as follows:
“The Common Council shall have power to provide for and regulate the election and appointment of all officers, and for their removal from office, and for the filling of vacancies, subject to the provisions of law; and may authorize and regulate the demand and receipt, by offi cers, of such fees and costs, and in such eases as the council may deem reasonable. It may also fix and regulate the compensation of all officers elected or appointed under or by virtue of any act relating to said city, except as may be otherwise provided; but the compensation of no officer, fixed by an annual or periodical salary, shall be diminished during the term for which he was elected or appointed; nor shall the salary of any officer be increased during his term of office, unless by a two-thirds vote of said council.” L. 1871, vol. 2, p. 1371-2.
This section is supposed, and was perhaps intended, to stand in lieu of one of the subdivisions of section 22 as before existing, which was confined in its operation to officers appointed under the charter. It is not important in the present case to determine its effect on the old section, inasmuch as its language shows a broader intent and covers the same as well as more ground.
The act of 1873, providing for a Board of Public Works, provides for the nomination by the mayor and confirmation by the council of three persons for terms (after the first allotment) of four years each, from the third Tuesday in January in each year. And it was declared that “each member of said board shall receive such salary per annum as the Common Council may from time to time establish.” L. 1873, vol. 3, p. 175.
The question on the proceedings before us is whether Mr. Chapoton is entitled to a salary of $3000 during his present term of office, or whether the reduction is valid.
The amendment of 1871 was broad enough, as it literally reads, to cover all offices under existing laws not making any different provision.
It must be observed, however, that at the date of that act, there were few if any persons holding office under acts “relating to said city,” whose salary was not expressly removed from the control of the council wholly' or chiefly. The Water Commissioners, Police Board, Inspectors of House of Correction, Police Justice, Board of Education and Eire Commissioners, were the chief if not the only officers not appointed under the charter, and the council could not exercise over any of these the powers mentioned in section 23. The Legislature of 1871, at the same time when the charter amendments were passed, considered with them and adopted two acts creating a Board of Park Commissioners, made quite independent of city compensation under that section, and a Board of Public Works whose salaries were fixed by statute. L. 1871, vol. 2, p. 1322; vol. 3, p. 273. Both of these acts were legally defective. But it is evident the purpose of the amendment to the charter was rather to include such possible cases as were unprovided for than to make any general rule of universal application. We have not discovered, although doubtless there may exist, cases within that amendment not covered by the charter alone.
It appears to us that the language of the Public Works Act of 1873 indicates a disposition to leave the whole subject of compensation under the control of the council. The law itself was the result of legal controversies which had chiefly hinged on the validity of encroachments. on municipal self-government; and the act shows a disposition to respect the liberties of the city. The provision making the salaries such as the council may “from time to time” establish, is not easily harmonized with any construction which would compel them to remain fixed .for one or all the commissioners during periods of four years. No one salary could then be said to be from time to time established, if it could not be changed during its owner’s incumbency. And we can hardly assume that this broad language, (which is that generally used where full power is left to the legislative authority and is found in many constitutions as well as statutes), was meant to be subjected to a prior charter provision, not incorporated or referred to, and which when adopted had no similar subjects to act on. It is not claimed that there would be any difficulty in the absence of the charter, in changing salaries at the expiration of any current year. It is more reasonable to suppose the salaries were to be uniform to all, than variant, although the Legislature might have authorized a discrimination. But it cannot be admissible to control a new law by an old one, without a plain intent expressed. The usual rule is to make the old yield to the new, rather than the new to the old.
The very loose way in which charter amendments are passed precludes the resort to some of the usual indications of actual intent, — so far as ever applicable. The Legislature generally interfere very little with such provisions as they assume to have been desired, and often are led to adopt changes which have never been thoroughly considered or subjected to any scrutiny in the city. The chapter in question has been several times amended so as to entirely confound the numbers of the sections and in some instances to leave incongruous provisions standing together. We can only take things as we find them, and we cannot suppose that the Public Works Act was meant, as we certainly think it is not adapted, to have its plain language subverted by a provision in the former law which never applied to any public board, and which cannot be held as restricting future legislation containing independent provisions concerning salaries.
We think the action of the council was valid, and the mandamus must be denied with costs.
The other Justices concurred. | [
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Campbell, C. J.
Simmons replevied a buggy from Bodine, ■which the latter had levied on under an execution against one Reynolds. Simmons purchased it of Reynolds in February, 1876, in settlement of a debt. After using it a while he broke it and had it sent to the shop of one Shire for repairs, where it was subject to a mechanic’s lien when levied on in April, 1877. Bodine .advertised it for sale on the 5th of May, 1877, but did not then sell it, and on that day it was replevied.
On the trial various questions arose which were made the subject of exceptions.
It was claimed, among other things, that as the property was subject to a lien for repairs, the plaintiff could not replevy. The lien, however, -being terminable at any time on redemption, gave no fixed right of possession for any particular period, and did not concern third persons if the parties did not assert it." It was held in Neff v. Thompson, 8 Barb., 213, that such a lien would not preclude the general owner from replevying against a stranger. We think the lien was no answer to plaintiff’s action, and as he got possession by the writ, and paid the lien before serving it, there is no complication caused by it.
It was also claimed that Bodine never had possession so as to make a complete levy. We are not authorized to weigh the testimony. There was proof tending to show that the holder of the mechanic’s lien assumed to hold the property under the levy subject to his lien, and proof also that Bodine never released the levy. We cannot consider the question of fact, which was for the wry-
It was also claimed that the levy was, maintainable on the ground of fraud in Eeynolds against his creditors.
To authorize this defense, it was necessary to show that the execution creditor had a claim at the time Simmons purchased, and that the sale was fraudulent against that claim.
There may perhaps have been evidence of such debt, but if so, it has been omitted from the record. There is also an entire absence of testimony having any legitimate bearing on the question of fraud in the transaction in question. None is pointed out in the brief, and we have found none. The bill states that aE the testimony is set forth, and none of the exceptions to the rejection of testimony appear to be important. General reputation concerning financial standing cannot prove fraud, nor is filing a creditor’s bill any proof against a defendant of the truth of its contents. To some objections no exception is noted, but they do not seem important.
The charge on the question of fraud was very full, and covered the requests so far as they were applicable. The jury were told that the sale of the property to Simmons would be void as to creditors if really made for the purpose of putting it beyond their reach and preventing its seizure to satisfy their claims; — that the intent need not to have been to put it beyond the reach of the plaintiff in execution in particular; but that the fraud must be shown by a preponderance of evidence.
The charge given went on the assumption that there was evidence on that subject enough to allow the jury to find on that question. It certainly went as far as was proper, and the rules laid down were correctly stated on that hypothesis.
We think no error is pointed out by the argument, and that the judgment should be affirmed with costs.
The other Justices concurred. | [
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Cooley, J.
This is an injunction bill, and the facts are very simple. Defendant at a cost of some sixty thousand dollars erected a stamp mill on the banks of Hill creek in the year 1874, and has since been operating it for copper mining purposes. As a result of its operations large quantities of sand are carried down by the waters of the stream and deposited on the bottom lands below. The evidence leads to the belief that it would be impossible to carry on the mining operations of the defendant with profit unless this is permitted. The year following the erection of defendant’s mill, complainant purchased a piece of land through which the creek runs a short distance below the mill, and upon which the mill as operated was depositing sand. The land was not purchased- for use or occupation, but as a matter of speculation, and apparently under an expectation of being able to force defendant to buy it at a large advance on the purchase price. • It was offered to defendant soon after the purchase, and though no price was named, the .valuation which has been put upon it by complainant and his witnesses is from three to five times what it cost him, and this perhaps gives some indication what his expectations were. The real value of the land except as a convenience in the business of defendant would seem to have been small. When defendant declined to purchase, this bill was filed. The prayer is that defendant be restrained from running or depositing its stamp sand on complainant’s land, and from polluting the waters of the stream by its operations. This is a short statement of so much of the case as is material to what follows. The circuit judge refused the injunction prayed for, but ordered a reference to a jury for an assessment of damages.
There is no doubt that the operations of' defendant, whether they inflict any serious injury on complainant or not, amount in effect to an appropriation of that portion of his property upon which sand is*being deposited. Ashley v. Port Huron, 35 Mich., 296; Pumpelly v. Green Bay Co., 13 Wall., 166; Arimond v. Green Bay Co., 31 Wis., 316; Rowe v. Portsmouth, 56 N. H., 291; Woodward v. Worcester, 121 Mass., 245. It follows and is beyond question that complainant sustains a legal injury for which he is entitled to suitable redress. The only question on this record is, whether he is entitled to the special redress he seeks, namely, an injunction.
An injunction is not a process to be lightly ordered in any case. Where the effect will be to present to the owners of a valuable mill the alternative either to purchase complainant’s lands at his own price or to sacrifice their property, any court having the power to order it ought very carefully to scrutinize the case and make sure that equity requires it. In theory its purpose is to prevent irreparable mischief; it stays an evil the consequences of which could not adequately he compensated if it were suffered to go on. Gilbert v. Showerman, 23 Mich., 448; Bemis v. Upham, 13 Pick., 169; Wason v. Sanborn, 45 N. H., 169; Cockey v. Carroll, 4 Md. Ch., 344; Nicodemus v. Nicodemus, 41 Md., 529; Burgess v. Kattleman, 41 Mo., 480; Owen v. Ford, 49 Mo., 436; Morris etc., Co. v. Central R. R. Co., 16 N. J. Eq., 419; Pettibone v. La Crosse etc., R. R. Co., 14 Wis., 443; Hine v. Stephens, 33 Conn., 497; Rhodes v. Dunbar, 57 Penn. St., 274; Richards’ Appeal, id., 105; Harkinson’s Appeal, 78 id., 196; State v. Judge, 16 La. Ann., 233; Goodell v. Lassen, 69 Ill., 145. The writ “is not ex debito justifies, for any injury threatened or done to the estate or rights of a person, but the granting of it must always rest in sound discretion, governed by the nature of the case.” Enfield Toll Bridge Co. v. Connecticut River Co., 7 Conn., 50. As is said in another case, “Injunction is not of right but of grace; and to move an upright chancellor to interpose this strongest arm of the law, he must have not a sham ease, but a well .grounded complaint, the bona fides of which is unquestioned, or capable of vindication if questioned.” Kenton v. Railway Co., 54 Penn. St., 454. “ There is no power,” says Mr. Justice Baldwin, “the exercise of which is more delicate, which requires greater caution, deliberation and sound discretion, or is more dangerous in a doubtful case than the issuing of an injunction. It is the strong arm of equity, that never ought to be extended unless to cases of great injury, where courts of law cannot afford an adequate or commensurate remedy in damages.” Bonaparte v. Camden etc., R. R. Co., Baldw., 218. All the cases referred to show that the court looks beyond the actual injury to contemplate the consequences, and however palpable may be the wrong, it will still balance the inconveniences of awarding or denying the writ, and adjudge as these may incline the judicial mind. Grey v. Ohio etc., R. R. Co., 1 Grant, 412; Varney v. Pope, 60 Me., 192; Bosley v. M’Kim, 7 Har. & J., 468. Even in the case of a palpable violation of a public right to the annoyance of an individual, he must show the equity which requires this summary interference as the only adequate means of obtaining justice. Sparhawk v. Union Passenger Railway Co., 54 Penn. St., 401.
What is the irreparable injury which is done or threatened in this case? We can see very plainly what it is in the case of many nuisances, and the equity of this particular remedy is then very manifest. If one man creates intolerable smells near his neighbor’s homestead, or by excavations threatens to undermine his house, or cuts off his access to the street by buildings or ditches, or in any other way destroys the comfortable, peaceful and quiet occupation of his homestead, he injures him irrevocably. No man holds.the comfort of his home for sale, and no man is willing to accept in lieu of it an award of damages. If equity could not enjoin such a nuisance the writ ought to be dispensed with altogether, ■and the doctrine of irreparable mischief might be dismissed as meaningless. A nuisance which affects one in his business is less in degree, but it may still be irre"parable, because it may break up the business, destroy its good will and inflict damages which are incapable of measurement because the elements of reasonable certainty are not to be obtained for their computation. Even in the case of unoccupied land a nuisance may threaten irreparable injury, where it is devoted in its purchase to some special use, or where the person causing the nuisance is irresponsible, and in some other cases which need not here be specially mentioned.
The land injured in this case was bought by the complainant with a preconceived purpose to force a sale of it upon the defendant. He did not want it for a homestead or for business property, but for the money he could compel the defendant to pay for it. It may bo said that no one is concerned with the motives of another in making a lawful purchase, or in doing any other lawful act; and this is true as a rule, but it is not true universally. Wherever one keeps within the limits of lawful action, he is certainly entitled to the protection of the law, whether his motives are commendable or not; but if he demands more than the strict rules of law can give him, his motives may become important. In general it must be assumed that the rules of the common law will give adequate redress for any injury; and when the litigant avers that under the circumstances of his particular ease they do not, and that therefore the gra cious ear of equity should incline to hear his complaint, it may not be amiss to inquire how he came to be placed in such circumstances. If a man invites an injury, he may still have his redress in the courts of law, but his-prayer for the special interposition of equity on the ground that what he invited and expected was about irreparably to injure, would not be likely to trouble the-judicial conscience very much if it were wholly ignored. The Supreme Court of Connecticut not long since felt, compelled, under circumstances very similar to those-shown by this record, to look into the motives of a corporation in making a purchase with a view to litigation, and to deny relief upon the ground that an acquisition of land for such a purpose was ultra vires. Occum Co. v. Sprague Manufacturing Co., 34 Conn., 540. We cannot say in this case that complainant had no right to-buy, but we can say, as we do, that when he comes demanding strict legal rights, he shall have those, but no-more. He is entitled to his rights under the rules of law, but he is entitled to nothing of grace.
The land having been bought to make money from by sale, a legal award of damages for an injury to it, is in furtherance of the purpose of the purchase, and therefore-a suitable and a just redress. Defendant is not alleged to be irresponsible, and a jury it is supposed will award, all that is reasonable. If complainant wants more than is reasonable, he has a right to obtain it under the rules of law, but he cannot demand the aid of equity in a-speculation. If in speculative language he has a corner-in real estate, there is no greater reason why he should have the assistance of an injunction to aid his schemes-than there would be if on the produce exchange he had effected a corner in grain. Without the writ in either ease he may be the sufferer, but he suffers nothing for-which damages cannot compensate him. The elements of irreparable injury are entirely wanting to his case.
Our conclusion is that the circuit court gave the complainant all he'was entitled to when the ease was sent to a jury. The decree must therefore be affirmed with •costs.
Graves, J. I concur in affirming the decree.
Campbell, C. J. It appears without doubt in this case that defendants, without color or claim of right, are keeping up a continuous series of invasions upon complainant’s freehold by using a running stream as a means of transporting sand upon his bottom land in quantities ■sufficient to bury it. The same course of conduct defiles and silts up the stream, rendering it useless to him for any purpose of business or convenience. It is equivalent in mischief to taking away or destroying his property in the land and his rights in the water.
I cannot concur in the doctrine that any one’s rights of this kind are subject to judicial discretion. The rights to equitable relief, where that is the only adequate remedy, are as absolute as to legal relief. The one remedy is no more sacred than the other, and no more capable of lawful denial. If the defendants were to take possession of the land in question by putting a tenant upon it, no power would exist any where to deny complainant his possessory remedy. Where the saíne sort of wrong is done by indirect assumption of possession so that all the advantages of actual possession are enjoyed by the wrongdoer without going in person upon the soil, there is no reason for denying the only remedy which can secure to complainant the future enjoyment of his own estate, which would not as justly authorize the refusal of a possessory remedy in the other case. And no remedy at law is adequate for such a grievance as is here complained of, because no legal remedy can secure complainant the use of 'his own property.
It is not claimed, and there is certainly no ground for claiming, that there is any equitable estoppel. Defendants .have never acted on any belief that they had a right to do what they are doing. They have always known they were wrong-doers, and have simply presumed on the patience of their neighbors, and neglected to purchase what they could originally have purchased if they had chosen. Neither does the proof show any very serious difficulty in the way of avoiding the mischief, although I do not regard this as at all essential.
It is not denied by complainant that he purchased for speculative purposes. As every one has a right to do this if he chooses, it cannot in any way lessen his claims to protection. It would be, I think, a very dangerous principle to hold that a civil wrong can be lessened by the motives of the party injured, so long as he has done no wrong himself. The property of one man is as much entitled to protection as that of another, — not because he bought it or intends to use it without selfish motives, but because it is property. Any attempt to discriminate would, in my opinion, leave private interests subject to a discretion which no man could calculate upon, and make the judicial conscience the only arbiter of every one’s rights. Some courts may have acted on this notion, but it seems to me that such precedents are unjust, and are not consistent with law or equity as we have received them under our constitutional guaranties of protection to person and property.
I think the court below should have granted a perpetual injunction as prayed.
Marston, J., did not sit in this case. | [
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Graves, J.
Sober sued on the common counts and added another framed as special; but this however was no more in effect than the count for money had and received, and in view of the state of facts he adduced, his right of action if any was maintainable only under that branch of his declaration claiming for money had and received.
He gave evidence tending to show that himself and one Orlin A. Peck owned as partners a quantity of whiskey in Peek’s hands at Chicago, where the latter resided, and that Peck about October 19, 1872, sold the whiskey in accordance with a previous understanding between them; that the sale was on four months’ time to one Davis, who made his promissory note for $400 payable to Peck individually or to his order at the end of such credit, and that .Peck at once endorsed the note over to Nichols who in turn negotiated it to the bank at Ypsilanti for $390.
The evidence on the part of the defendant tended to show that the bank at Ypsilanti held two notes past due and made by Peck and endorsed by Nichols, and amounting to more than the note in question and that Peck delivered this latter note to Nichols at Chicago, at or about its date with instructions to have it applied on his notes so held by the bank; that Nichols took the note to the bank pursuant to this instruction, where it was applied as far as it would go in the way directed by Peck; that to accomplish the purpose he, Nichols, gave his own note for the balance against Peck and took up Peck’s note, and that he had no knowledge or notice until afterwards that Sober had or claimed any interest in the note so sent by Peek.
It was made a question whether Nichols acquired the note in good faith, and whether he did or not was supposed to depend upon the sufficiency of the facts to connect him with Peck’s disposal of it for his own debt in fraud of the rights claimed by Sober as Peck’s partner.
If his acquisition of the note was in good faith it was virtually conceded that Sober ought not to recover. The judge charged on this as follows: “Upon this subject I have to state that if the defendant at the time he acquired the note had reason to believe and did believe or had notice or information that it was given for the whiskey which belonged to the plaintiff, then the plaintiff can recover. A mere naked suspicion on his part as to the consideration upon which the note had been given would not be enough: but if he had notice or knowledge of such facts or circumstances tending to show that it was given for the whiskey, and that it belonged to the plaintiff, as would put a prudent and reasonable man upon inquiry, it would be enough to charge him with the truth, whatever it was.”
The jury found for the plaintiff.
It appears to the court that the circuit judge misapprehended recognized distinctions in giving this rule to the jury as the proper one to govern in regard to transfers of commercial paper. It might be appropriate upon the question of good faith in the purchase of chattels, but it is not necessary now to say whether it would be or not.
The law has always been solicitous to exclude any rules calculated to hinder the free circulation of mercantile paper having legitimate inception as in this case, and it is settled in this State that a transferee cannot be deprived of his right as a bona ficle holder in this class of cases except upon evidence sufficient to show his participation in the fraud, or equivalent misconduct of the party who transfers to him. Miller v. Finley, 26 Mich., 249; Tupper v. Kilduff, id., 394; Borden v. Clark, id., 410; Carrier v. Cameron, 31 Mich., 373; Murray v. Lardner, 2 Wall., 110; Cromwell v. County of Sac, 96 U. S., 51.
The rule laid down required the jury to affect Nichols- with the fraudulent misappropriation of the note ascribed to Peck in case they should find that he, Nichols, had notice of circumstances which in their opinion tended to show the note was given for the whiskey. The error is plain. But there is a further difficulty.
All the evidence given on this branch appears to have been returned, and we are of opinion there is none fairly tending to prove that Nichols knew when he received the note at Chicago or when he made use of it at the bank that the note was taken for the whiskey.
The judgment must be reversed with costs and a new trial ordered.
The other Justices concurred. | [
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G. R. McDonald, J.
Following a preliminary examination on March 31, 1986, defendant was bound over on a charge of involuntary manslaughter, MCL 750.321; MSA 28.553. On October 1, 1986, the trial court granted defendant’s motion to quash the information and dismiss the charge against defendant. The people appeal as of right.
Defendant was initially charged along with Richard and John Jackson with involuntary manslaughter and conspiracy to violate miosha, contrary to MCL 408.1035(5); MSA 17.50(35)(5) and MCL 750.1578a(a); MSA 28.354(1)(a).
The victim, William Hatherhill, was employed as a cable television "splicer” for Jackson Enterprises. A splicer’s duties include the installation of housings and other electronics on utility poles strung with television cable. A splicer drives to the work location, inspects the area and builds the necessary equipment in his truck, which is equipped with tools and a work bench.
Hatherhill’s body was discovered in his truck, a 1971 Chevrolet Step Van designated "SV-15,” on January 18, 1985, at approximately 7:30 p.m. At the time Hatherhill was discovered, it was cold outside and it had been snowing all day. The truck’s engine was running, and the medical examiner determined the cause of death to be carbon monoxide intoxication.
The truck, SV-15, was owned by Richard Jackson, doing business as Jackson Enterprises. Defendant was the immediate job supervisor in charge of assigning trucks and work areas to Jackson Enterprises’ employees. Defendant was also re sponsible for gathering and reporting maintenance problems with the trucks.
On February 11, 1985, an inspection of SV-15 was performed pursuant to a search warrant. Rudolph Zoller, an industrial hygienist with the state Department of Health, performed carbon monoxide tests on the inside of the truck. After about twenty minutes, the concentration of carbon monoxide in the truck’s interior exceeded three thousand parts per million (ppm). Zoller testified that the permissible average level of carbon monoxide exposure over an eight-hour period under osha and miosha standards is fifty ppm and that a serious violation of osha occurs at a level of four hundred ppm. Zoller noted that the holes in the truck’s floorboard facilitated the leakage of carbon monoxide into the interior of the truck.
Sergeant Charles Culton of the Michigan State Police also inspected SV-15. Sergeant Culton found the floorboard of the van to be completely rusted out at both rear wheel wells. When SV-15 was lifted on a hoist in order to inspect the undercarriage, Culton discovered a loose exhaust pipe that was leaking at the engine manifold. There was no tail pipe leading away from the muffler to the rear of the vehicle. As a result, fumes were being exhausted directly underneath the body of the truck, about one foot away from the rust holes in the wheel wells. The exhaust pipe to the muffler was secured only by a makeshift piece of wire. Culton further noted that an auxiliary engine which ran a bucket hoist on the top of the truck exhausted directly into the engine compartment without a separate exhaust pipe. The fire wall separating the engine from the passenger compartment was worn and loose. According to Culton, each of these defects violated the Motor Carrier Safety Act, MCL 480.11 et seq.; MSA 9.1666(1) et seq. Culton also indicated that there were problems with the lug holes on the left rear wheel. Culton said that many of these violations, including the holes in the floorboard and the elongated lug holes, would have been obvious even to a lay person.
Testimony by current and former Jackson employees indicated that there was no regular maintenance program for the company’s trucks and that complaints regarding the condition of SV-15 had been addressed to defendant prior to Hatherhill’s death.
Following the testimony and evidence presented at the preliminary examination, the magistrate dismissed all charges against the Jacksons and bound defendant over on the charge of involuntary manslaughter, finding that defendant had a duty to do something in respect to the truck, given his knowledge of the situation.
The trial court later granted defendant’s motion to quash the information, finding that defendant had no duty to repair the truck himself and that there was a lack of evidence to show defendant’s ability to perform his duty of taking the truck out of service because of complaints about fumes.
On appeal, the prosecutor claims the trial court erred in quashing the information against defendant. Although we affirm, we do so on different grounds than those relied upon by the trial court. We find that the criminal prosecution of defendant in the instant case is preempted by osha. 29 USC 651 et seq.
State laws are preempted when Congress has declared its intent, either explicitly or implicitly, to occupy a certain area of the law. Silkwood v Kerr-McGee Corp, 464 US 238; 104 S Ct 615; 78 L Ed 2d 443 (1984). Where the statute does not expressly state its preemptive intent, Congress’ intent must be derived from the statutory language, the comprehensiveness of the regulatory scheme, the legislative history of the statute, or the fact that the federal and state statutes at issue conflict. People v Chicago Magnet Wire Corp, 157 Ill App 3d 797; 510 NE2d 1173 (1987), citing Hillsborough Co, Fla v Automated Medical Laboratories, Inc, 471 US 707; 105 S Ct 2371; 85 L Ed 2d 714 (1985).
The legislative history of osha indicates Congress’ concern with the growth of modern industry and its recognition of the technical complexity of occupational safety and health problems facing today’s society. Moreover, Congress recognized that the then current state regulation was inadequately dealing with the problem. Thus, finding the health and safety of the worker to be a national concern, Congress enacted osha. The statute declares as its broad purpose and policy to assure "so far as possible every working man and woman in the Nation safe and healthful working conditions and to preserve our human resources. . . .” 29 USC 651(b).
Section 655 of the act expressly provides for the adoption of federal standards of industrial safety. Although the states are permitted to exercise independent state action under certain circumstances, such jurisdiction is severely limited. A state may assert jurisdiction over an occupational safety or health issue only if there is no federal standard in effect, 29 USC 667(a), or the state has submitted its own enforcement plan to the United States Secretary of Labor for approval pursuant to § 667(b). Thus, absent a state plan which has been approved by the Secretary of Labor, state laws related to working conditions regulated by osha are preempted.
In the instant case osha and miosha, MCL 408.1001 et seq.; MSA 17.50(1) et seq., contain standards regulating the existence and allowable proportions of carbon monoxide in the workplace. Therefore, the state may not assert jurisdiction over this issue unless it is through an approved state plan. Although miosha is a federally approved state plan and contains criminal penalties in excess of osha, the prosecution herein is not under miosha. Instead, the prosecution is attempting to bring general criminal charges against defendant. This attempt to circumvent the penalties prescribed in miosha is also an attempt to assert jurisdiction over a federally covered occupational safety and health issue other than through an approved state plan. Such a prosecution is not allowable under §667 of the Occupational Safety and Health Act. To so allow would emasculate Congress’ requirement that the state act through an approved state plan.
We reject the prosecution’s argument that § 653(b)(4) specifically reserves a state’s right to bring general criminal prosecutions for osha or miosha violations. Section 653(b)(4) states:
Nothing in this chapter shall be construed to supersede or in any manner affect any workmen’s compensation law or to enlarge or diminish or affect in any other manner the common law or statutory rights, duties, or liabilities of employers and employees under any law with respect to injuries, diseases, or death of employees arising out of, or in the course of, employment. [29 USC 653(b)(4).]
We believe Congress intended this section to leave undisturbed private rights and liabilities of employers and employees such as those found in the Workers’ Disability Compensation Act and the Civil Rights Act. This section should be strictly construed to preserve any other laws regulating employers and employees. Criminal laws do not specifically regulate or address employers and employees. Any other construction of this section would conflict with the clear intent of § 667 which specifically addresses a state’s "jurisdiction” with regard to occupational safety and health issues.
Thus, to conclude, we believe that the comprehensiveness of the Occupational Safety and Health Act, in conjunction with the fact that the states have been afforded the opportunity to develop their own regulatory schemes, and the legislative history of the act, evidences a congressional intent to preempt the state from applying its criminal statutes to conditions in the workplace that are specifically regulated by osha.
Affirmed.
E. M. Thomas, J., concurred. | [
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Per Curiam.
Petitioner appeals as of right from a March 27, 1987, order entered in Wayne Circuit Court which upheld the decision of Department of Social Services hearing referee William A. McKay. The referee upheld the decision of respondent which declared plaintiff ineligible to receive general assistance for fourteen months because petitioner had received a lump sum workers’ compensation settlement. We reverse.
In June, 1986, petitioner reported to respondent the receipt of a lump sum workers’ compensation settlement of $3,853.50. In July, 1986, respondent determined that petitioner would be ineligible for general assistance for a period of fourteen months based on petitioner’s receipt of the lump sum settlement. Petitioner made a showing that he had used the money to repay loans and to pay off certain medical debts. Petitioner argued that, because the money was no longer a currently available resource, the lump sum settlement could not be considered to deny him eligibility for receipt of general assistance.
The referee agreed with respondent in its determination that petitioner was properly denied gen eral assistance for fourteen months. The trial court upheld the referee’s decision and petitioner appealed raising two issues.
First, petitioner alleges that it was error to consider the lump sum settlement so as to deny him general assistance for fourteen months. We agree.
For purposes of determining eligibility to receive assistance, respondent has promulgated 1979 AC, R 400.12(10), which states:
Only income and resources which are available in fact for current use are to be considered in determining the need of individuals for assistance and the amount of payments to or for them.
Respondent does not dispute that the above rule had not been amended or rescinded at the time petitioner was denied general assistance. Once a state agency has issued a rule, it may not violate that rule. Semaan v Liquor Control Comm, 425 Mich 28, 37; 387 NW2d 786 (1986).
In this case, application of the lump sum rule governing Aid to Families with Dependent Children, a federal program, to deny petitioner general assistance was error since it violated Rule 400.12(10). The lump sum settlement was no longer "available in fact” because petitioner had used the money to repay loans and medical debts. Application of the federal lump sum rule was error because general assistance is a wholly state-funded program. Respondent was required to rescind Rule 400.12(10) and promulgate a state lump sum rule either through rule-making or by adjudication, Independent Ins Agents of Michigan v Comm’r of Michigan Financial Institutions Bureau, 145 Mich App 373, 376; 377 NW2d 410 (1985), lv den 424 Mich 888 (1986), before respondent could apply the lump sum rule. Having failed to follow either procedure, respondent was precluded from applying the lump sum rule. Therefore, by denying petitioner general assistance for fourteen months when the money from the lump sum settlement was no longer "available in fact,” respondent violated Rule 400.12(10). Thus, the trial court’s March 27, 1987, order is reversed. Because we are reversing on the first issue, we decline to address petitioner’s second issue on appeal.
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Per Curiam.
Respondents, Wayne County and the Wayne County Board of Commissioners, appeal as of right from a decision of the Michigan Employment Relations Commission. The merc had ordered respondents to make cost-of-living-allowance (cola) payments to the members of the Wayne County Government Bar Association based upon current inflation statistics rather than the statistics existing at the expiration of the parties’ collective bargaining agreement.
The association represents a bargaining unit which consists of nonsupervisory attorneys who are employed by the county. The most recent collective bargaining agreement between the county and petitioner was effective by its terms from December 1,1982, to November 30, 1984.
The agreement contained the following relevant provisions:
TERM OF AGREEMENT
This Agreement shall be effective on the 1st day of December, 1982, and shall remain in full force and effect until the 30th day of November, 1984.
This Agreement shall continue in effect, in whole or in part, for consecutive yearly periods after November 30, 1984, unless notice is given, in writing, by either the association or the employer, to the other party at least sixty (60) days prior to November 30, 1984, or any anniversary date thereafter, of its desire to modify, amend or terminate this Agreement, or any part thereof.
If such notice is given, this agreement shall be open to modification, amendment or termination, as such notice may indicate, on November 30, 1984, or on the subsequent anniversary date, as the case may be.
Further, it is mutually agreed that, on December 1, 1983, at the sole option of the association, the provisions in this agreement as to salaries may be reopened for the purpose of negotiating an adjustment of the salaries of the employees covered under this agreement. It shall be the duty of the employer and the association to bargain in good faith.
* * *
COST-OF-LIVING-ALLOWANCE
Employees covered by this Agreement shall be entitled to receive a cost-of-living allowance. Payment of such cost-of-living allowance shall be made quarterly during the term of this Agreement. Payments shall be based upon the geographic Consumers Price Index, as established by the Bureau of Labor Statistics for the Detroit Metropolitan area, using the Index as of January 1, 1973 (128.3) as the base. For each .4 increase in the average Index for the quarter, employees shall receive $.01 per hour for each credited payroll hour during the quarterly period. Payment of the cost-of-living allowance shall be made not later than thirty (30) days following the receipt of the official Index figures for the quarter from the Bureau of Labor Statistics.
It is further agreed by the parties to this Agreement that on July 1, 1983, the employer shall, in accord with the terms of this Agreement, adjust the salary of all classes of employees covered by this Agreement to provide for a fold-in of the total accumulated allowance for c.o.l.a. as of January 1, 1983. It is further agreed by the parties to this Agreement that thereafter the employee may limit the amount of c.o.l.a. to be accumulated in any one fiscal year of the County, to Twenty-five cents ($.25) per hour.
After one extension, the agreement was terminated on December 31, 1984. The parties, however, agreed to continue negotiating over annual step increases and colas. While negotiations were pending, respondents continued to make quarterly cola payments. The payments were paid at a rate of $.30 per hour, based upon the Consumer Price Index (cpi) that existed on December 31, 1984. The association maintained that any cola payments should have been based upon the cpi that was in effect at the end of each quarter in which payments were due. If current statistics had been used, the 1985 first quarter payment would have been $.37 per hour instead of $.30 and the 1985 second quarter payment would have been $.45 per hour rather than $.30.
On October 1, 1985, the association filed an unfair labor practice charge regarding the cola payments, claiming that respondents had violated sections 10(1)(a) and (e) of the public employment relations act (pera), MCL 423.210(1)(a) and (e); MSA 17.455(10)(1)(a) and (e), by unilaterally changing the cola formula. On October 17, 1986, hearing referee Bert H. Wicking issued his decision and recommended order finding in favor of the association. Respondents appealed to the merc. The merc issued its decision and order on March 12, 1987, in which the merc upheld the referee’s decision that cola payments must be based upon the current cpi in each quarter, and also awarded the association interest. Respondents subsequently appealed to this Court.
Initially, respondents claim that, upon the expiration of the instant collective bargaining agreement, their decision to terminate cola payments did not constitute a "unilateral” change to the parties’ agreement and, hence, respondents did not commit an unfair labor practice.
Merc’s findings of fact are upheld if they are supported by competent, material and substantial evidence on the whole record. This Court may review the law regardless of the factual findings of the commission. Mid-Michigan Education Ass’n (MEA-NEA) v St Charles Community Schools, 150 Mich App 763, 767; 389 NW2d 482 (1986).
Pera governs labor relations in public employment. Profitt v Wayne-Westland Community Schools, 140 Mich App 499, 502; 364 NW2d 359 (1985). At the expiration of a labor contract, a public employer is required to bargain in good faith pursuant to a proposed new contract with respect to "wages, hours, and other terms and conditions of employment.” MCL 423.215; MSA 17.455(15). At the expiration of the contract, those "wages, hours, and other terms and conditions of employment” established by the contract which are deemed "mandatory subjects” of bargaining survive the contract by operation of law during the bargaining process. Local 1467, International Ass’n of Firefighters, AFL-CIO v Portage, 134 Mich App 466, 472; 352 NW2d 284 (1984), lv den 422 Mich 924 (1985). Under pera, unilateral action over mandatory subjects of bargaining may not be taken by either party absent an impasse in negotiations, Ottawa Co v Jaklinski, 423 Mich 1, 13; 377 NW2d 668 (1985), or a clear and unmistakable waiver. Lansing Fire Fighters Union, Local 421, Int’l Ass’n of Fire Fighters, AFL-CIO v Lansing, 133 Mich App 56; 349 NW2d 253 (1984). An employer who takes unilateral action on a mandatory subject of bargaining prior to impasse in negotiations commits an unfair labor practice. MCL 423.210(1)(e); MSA 17.455(10)(1)(e); Portage, supra, p 473. The policy reason against unilateral action prior to impasse serves to foster labor peace and must be liberally construed, especially in light of the ban against striking by public employees set forth in MCL 423.202; MSA 17.455(2). Id.
The seminal case on whether a cola provision is a mandatory subject of bargaining is Portage. The issue in Portage was whether the employer’s duty to continue making cola payments survived the expiration of the parties’ collective bargaining agreement. Merc had concluded that it did not because merc relied on the contractual language "for the life of the agreement.” This Court reversed, holding:
[W]here a cola provision establishes a practice or policy of making regular cola adjustments to wages which has a significant impact on the said wages or other conditions of employment so as to be a "mandatory subject” of bargaining, the provision survives the expiration date of the contract during the bargaining process as a matter of law pursuant to pera. [134 Mich App 474.]
In this case, we find that the cola provision constituted a mandatory subject of bargaining. Therefore, the provision survived the expiration date of the contract during the bargaining process.
Respondents further argue that the association has contractually waived its rights to bargain over cola benefits after the expiration date of the agreement. In MEA-NEA, supra, p 771, this Court, citing Lansing Fire Fighters, supra, p 66, stated that in "order for the union to waive its right to bargain over a term of employment that is a mandatory subject of collective bargaining, the waiver must be 'clear and unmistakable.’ ”
- Again, we must conclude that merc properly found that the contract language that cola payments would "be made quarterly during the term of this Agreement” does not amount to a "clear and unmistakable” waiver of the right to bargain over a mandatory subject. We believe that the phrase "clear and unmistakable” should also be liberally construed as is "unilateral action” particularly in light of the prohibition against striking by public employees. If we apply a liberal construction, we find that the language at issue does not constitute a clear and unmistakable waiver of the right to bargain over a mandatory subject. Similar language was rejected as being clear and unmistakable in Michigan Council 25, AFSCME v Wayne Co, 140 Mich App 361; 364 NW2d 690 (1984), lv den 422 Mich 924 (1985), and Portage, supra.
Respondents claim that this Court’s decisions in Portage and AFSCME were wrongly decided since the decisions created a "per se rule” or declared "as a matter of law” that the parties could not by contract limit their duty to bargain on mandatory subjects. We do not agree. These decisions held that, where cola payments were periodic, established by a formula and had a significant impact on the employees, those benefits would be considered "wages, hours and other terms and conditions of employment” within the meaning of MCL 423.215; MSA 17.455(15). Portage, supra, p 473; AFSCME, supra, p 364. These holdings do not necessarily mean that in every instance where cola benefits are provided, they would survive upon the expiration of a collective bargaining agreement. This Court has recognized that mandatory subjects of bargaining may be waived. See Lansing Fire Fighters, supra, and MEA-NEA, supra.
Next, respondents allege that the Portage and AFSCME decisions by our Court should be reconsidered in light of Jaklinski, supra. In City of Dearborn, 1987 MERC Lab Op 61, merc engaged in a lengthy discussion of Jaklinski. Merc stated that Jaklinski was a suit by the employer to enjoin arbitration of a discharge grievance after the expiration of the collective bargaining agreement. The Supreme Court held that, as a matter of contract law, an employer’s duty to arbitrate after the expiration of the contract is limited to grievances involving accrued or vested rights.
Our reading of the Jaklinski decision compels us to agree with merc’s interpretation of that opinion. In Jaklinski, the Court framed the issue as follows:
The narrow issue in this case is whether the right to grievance arbitration of an unjust discharge claim survives the expiration of the collective bargaining agreement by which it is created. [423 Mich 6.]
Jaklinksi had argued that, because grievance and arbitration procedures constitute mandatory subjects of bargaining, the employer could not unilaterally change these terms prior to impasse. The Court noted that, while grievance and arbitration procedures are mandatory subjects, the parties had reached an impasse when Jaklinski filed her grievance. The Court stated that Jaklinski’s claim could only be contractual rather than statutory. Id., p 13. It is clear that Jaklinski had nothing to do with mandatory subjects of bargaining or the duty to bargain. Id., pp 15-21. Thus, respondents’ argument is without merit.
In addition, respondents assert that the federal cases upon which Portage was based have been changed so that Portage is no longer good law. Respondents allege that, in Portage, this Court relied on OPEIU, Local 186, AFL-CIO v Struthers Wells Corp, 262 NLRB 136 (1982), modified Struthers Wells Corp v NLRB, 721 F2d 465 (CA 3, 1983), in concluding that cola benefits survived the expiration of a collective bargaining agreement. This claim is totally spurious since in Portage there is no reference to the Struthers Wells case. More over, federal precedent is persuasive and not controlling. Portage, supra, pp 472-473, n 3. In addition, Struthers Wells did not hold that cola benefits may never survive the contract’s expiration. Instead, the Third Circuit found that the union had waived the right to bargain over cola, the employer had not made statements which obligated it to pay cola after the contract had expired, and, based on nlrb precedent, the cola need not be paid where the calculation date occurs after the contract has expired. Id., p 472. Similarly, in NLRB v Harvstone Mfg Corp, 785 F2d 570 (CA 7, 1986), the court found that the employer had not committed an unfair labor practice by eliminating the cola payments since the union and employer had engaged in bona fide negotiations to impasse. Therefore, elimination of cola was proper. Id., p 581.
Finally, respondents argue that even if cola benefits were required to be paid, respondents properly paid them at the rate as it existed upon the contract’s expiration. In support of this argument, respondents cite Mich Council 25, AFSCME v Wayne Co Bd of Comm’rs, 1984 MERC Lab Op 17, aff'd 140 Mich App 361; 364 NW2d 690 (1984), lv den 422 Mich 924 (1985). In Wayne Co, supra, when the contract expired, accumulated cola benefits were being paid at a rate of $1.86 per hour. However, the union did not argue for a recomputation of the cola figure for future payments. Merc noted in our case that its holding in Wayne Co "was based on the union’s request for relief rather than on a specific holding that cola should be limited to the rate in effect at the expiration of the agreement.” Under Portage, supra, since it is the cola formula which constitutes the existing "wages, hours, and other terms and conditions of employment,” respondents were required to compute each cola payment using the current cpi. Respondents’ attempt to apply a different cola formula than the one required by the contract would constitute unilateral action and hence, an unfair labor practice. Accordingly, we affirm the decision of the merc.
Affirmed.
The issue of annual step increases was raised below. Respondents do not challenge its determination on appeal.
This provision of pera reads:
A public employer shall bargain collectively with the representatives of its employees as defined in section 11 and is authorized to make and enter into collective bargaining agreements with such representatives. For the purposes of this section, to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder, and the execution of a written contract, ordinance or resolution incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession.
This section states:
It shall be unlawful for a public employer or an officer or agent of a public employer to refuse to bargain collectively with the representatives of its public employees, subject to the provisions of section 11.
A clear and unmistakable waiver would read: "Upon expiration of the agreement, cola payments will no longer be made and shall not be considered mandatory subjects of bargaining.” | [
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M. J. Kelly, J.
This Court issued its unpublished per curiam opinion in this matter on October 15, 1987, which affirmed the decision of the trial court. Thereafter by split decision an order was entered granting rehearing as a majority of the panel was persuaded that this case should be revisited in the light of the recent decision in Morse v City of Mount Pleasant, 160 Mich App 741; 408 NW2d 541 (1987).
We affirm the trial court’s dismissal of plaintiffs claim against the City of Rochester for violation of his civil rights under 42 USC 1983 for reasons stated in our prior opinion. Cf. Daniels v Williams, 474 US 327; 106 S Ct 662; 88 L Ed 2d 662 (1986).
We reverse the court’s entry of summary disposition in favor of defendant-appellee Douglas Ehle under MCR 2.116(C)(10) because plaintiffs claim was not so deficient as to have been unsupportable at trial. Plaintiff testified to being intoxicated, indicating that he had consumed a pint of whiskey and two quarts of beer. Plaintiff’s mother, who had not been deposed but whose affidavit had been submitted in support of plaintiffs claim, swore that she received a call from the Rochester Police Department telling her that her son was intoxicated and to come down to pick him up. She states that when she arrived at the police station she was told by the officer that her son could not have gone far because he was "too drunk to walk.” Witness Heft testified that she contacted the policeman because she observed plaintiffs vehicle swerving, running off the pavement two or three times, and crossing the center line. She testified that plaintiffs appearance was that of a person in a daze, his eyes were glassy, he did not seem to know where he was, he walked slowly and aimlessly, and talked in an ambling, slow, drawling way.
Construing the depositions and affidavits in a light most favorable to plaintiff, a trier of fact could find a violation of the police department’s own policies to take an intoxicated person into custody. It could also find a violation of the statute under state law, MCL 333.6501(1); MSA 14.15(6501)(1), which states in part:
An individual who appears to be incapacitated in a public place shall be taken into protective custody by a law enforcement officer and taken to an approved service program, or to an emergency medical service, or to a transfer facility pursuant to subsection (4) for subsequent transportation to an approved service program or emergency medical service.
MCL 333.6104; MSA 14.15(6104) defines incapacitated as being "so impaired that he or she either poses an immediate and substantial danger to his or her own health and safety or is endangering the health and safety of the public.”
It is for the trier of fact to determine whether under the conflicting evidence the testimony of plaintiff and of Crystal Heft showed an individual so impaired that he posed an immediate threat to his own health and safety. The jury could also find, based upon plaintiff’s mother’s version, that defendant Ehle was aware of plaintiff’s intoxicated condition, having communicated that fact to plaintiff’s mother. See also Morse v City of Mount Pleasant, supra, and Trimper v Headapohl, 162 Mich App 320; 412 NW2d 731 (1987).
The summary disposition entered by the circuit court in favor of defendant Douglas Ehle only is reversed.
Affirmed in part and reversed in part.
J. R. Kirwan, J., concurred. | [
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Per Curiam:.
David O’Connor, an Oakland County road patrol deputy, appeals as of right from an April 20, 1987, opinion which affirmed in part and reversed in part a decision of the Oakland County Personnel Appeal Board (pab) and a July 16, 1987, opinion and order denying O’Conpor’s motion for reconsideration.
On December 20, 1985, O’Connor was given a written notice of dismissal from his employment with the sheriff’s department. The dismissal was based on charges that O’Connor had violated three merit system rules due to his conduct at a bar on December 3, 1985. The dismissal notice indicated that O’Connor, who was off duty and out of uniform, was at the Stable Saloon in Lake Orion, Michigan, in an intoxicated condition. A bartender saw O’Connor in the men’s bathroom with a female who was performing an act of fellatio. When O’Connor was ordered out of the bar, he and the female proceeded to the ladies’ bathroom. When the bartender checked in the ladies’ restroom, he saw clothes hanging on the stall divider. After leaving the ladies’ bathroom, O’Connor was again ordered out of the bar. As he was leaving, O’Con-nor allegedly threatened the bartender by warning him about driving on Oakland County roads.
Upon being dismissed, O’Connor appealed the decision to the pab. On the last day of the three days of hearings, the pab issued a written opinion. In the opinion, the pab dismissed the charges of "immoral conduct” and "conduct unbecoming an officer” for O’Connor’s alleged sexual activities in the restrooms. However, the pab found that O’Con-nor improperly used his position as an officer by actually threatening the bartender. As a result, the pab reversed the dismissal action, ordered a seventy-five-day suspension without pay, and required O’Connor to attend and participate in certain alcohol abuse programs.
On March 25, 1986, the sheriff’s department appealed to circuit court the decision of the pab claiming that the pab erred in dismissing the charges stemming from O’Connor’s alleged sexual activities in the bathrooms. O’Connor filed a cross-appeal from the pab’s determination that he improperly used his position when he threatened the bartender about driving on the county roads.
On April 20, 1987, the trial court issued an opinion. The court concluded that the alleged activities in the bathrooms were sufficient to sustain the immoral conduct and conduct unbecoming an officer charges since they could support a criminal charge for gross indecency pursuant to MCL 750.338b; MSA 28.570(2). The court then remanded the case to the pab for further consideration of the charges and presentation of additional evidence by the parties. With respect to O’Connor’s cross-appeal, the trial court upheld the pab’s decision of the seventy-five-day suspension without pay.
O’Connor moved for reconsideration, arguing that the trial court lacked subject matter jurisdiction to entertain an appeal from the pab. The court declined to consider the motion on the basis that MCR 2.119(F) did not permit reconsideration since this was an appeal. Subsequently, O’Connor filed the instant appeal, raising five issues.
First, O’Connor alleges that the trial court was without subject matter jurisdiction to review the decision of the pab. We agree.
This very issue was recently decided in Eckstein v Kuhn, 160 Mich App 240; 408 NW2d 131 (1987), which involved an attempt by the defendants to seek judicial review in Oakland Circuit Court over a decision by the pab. The Court affirmed the trial court’s finding that it lacked subject matter jurisdiction to hear the defendants’ appeal from the decision of the pab. Id., pp 245-246. In reaching this conclusion, the Eckstein Court initially cited art 6, § 28, of the Michigan Constitution:
All final decisions, findings, rulings and orders of any administrative officer or agency existing under the constitution or by law, which are judicial or quasi-judicial and affect private rights or licenses, shall be subject to direct review by the courts as provided by law.
The pab is a local administrative agency, which "exists under the constitution,” and performs a quasi-judicial function when it renders a decision on an appeal by a discharged employee. Eckstein, supra, pp 243-244. However, art 6, § 28 does not guarantee the defendant a right of appeal of the pab’s decision. The Eckstein panel based this conclusion upon art 6, §28’s language, "as provided by law,” and cases interpreting that language:
In Evans v United States Rubber Co, 379 Mich 457, 461; 152 NW2d 641 (1967), our Supreme Court stated:
"We do not read the above language, 'shall be subject to direct review by the courts as provided by law’, to mean that in each such case review shall be compulsory or as of right upon its being invoked by either party but only that review shall be had when, in the exercise of judicial judgment and discretion, the court shall, on application, so determine, or when so provided by law. No statute provides for such appeal as of right. [Emphasis added.]”
In Viculin v Dep’t of Civil Service, 386 Mich 375, 392; 192 NW2d 449 (1971), the Supreme Court reiterated its holding in Evans:
"Article 6, § 28 does not guarantee a review in the nature of certiorari of 'right’ but an appeal of such a nature may require 'leave’ or be automatic as provided by law.”
Thus, both Evans and Viculin support this Court’s decision in Robertson v Detroit, 131 Mich App 594, 597-598; 345 NW2d 695 (1983), where this Court wrote:
"Plaintiff’s reliance on Const 1963, art 6, § 28 is misplaced. As noted by the Supreme Court in McAvoy v H B Sherman Co, 401 Mich 419, 443; 258 NW2d 414 (1977), reh den 402 Mich 953 (1977), the phrase 'as provided by law’ contained in Const 1963, art 6, §28 'vests the Legislature with the authority to exert substantial control over the mechanism of how administrative decisions are to be appealed’. As noted, the Legislature has failed to specifically exert any control over the appellate rights and procedures stemming from a decision of a general municipal civil service commission. The circuit court, therefore, had no jurisdiction over plaintiffs dispute with defendant commission.”
As in Robertson, no statute authorizes appellate review of the decisions of the pab. The county therefore has no guaranteed direct appeal. [160 Mich App 244-245.]
Similarly, in this case, the trial court lacked subject matter jurisdiction to review the decision of the pab since there is no statute or court rule authorizing any form of direct appeal to circuit court from the decisions of municipal administrative agencies such as the pab. Therefore, because the sheriff’s department lacked standing, the trial court’s opinion and order are void.
We reject the assertion of the sheriff’s department that Eckstein should not be given retroactive effect. Generally speaking, in determining whether a decision ought to be given retroactive effect, this Court looks to: (1) the purpose of the new rule; (2) the extent of reliance on the old rule; and (3) the effect that full retroactive application would have on the administration of justice. King v General Motors Corp, 136 Mich App 301, 306; 356 NW2d 626 (1984), lv den 422 Mich 871 (1985). In this case, the sheriff’s department has failed to establish that the Eckstein decision created new law or overruled existing law. In fact, the Eckstein opinion relied on two Michigan Supreme Court cases which had previously interpreted art 6, § 28 of the Michigan Constitution. Consequently, applying Eckstein to O’Connor’s cross-appeal in circuit court leads to the conclusion that he also had no standing to appeal. Thus, the pab’s decision is considered final and this Court is precluded from reviewing O’Connor’s challenge to the pab decision. Since we conclude that the lower court lacked subject matter jurisdiction, we decline to address the remaining issues on appeal.
Accordingly, we vacate the trial court’s April 20, 1987, opinion and the decision of the pab stands as the final determination in this case.
MCL 51.362; MSA 5.1191(112) does provide for appeals from decisions of a civil service commission in sheriffs’ departments to circuit court. However, even if the pab is a civil service commission under MCL 51.351; MSA 5.1191(101), the appeal is solely vested in the "person removed.” In this instance, the sheriff’s department was not the person removed and, thus, lacked standing to appeal the decision of the pab. See Hendricks v Sterling Heights Police & Fire Dep’t Civil Service Comm, 85 Mich App 646, 649; 272 NW2d 170 (1978), lv den 405 Mich 826 (1979). | [
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L. P. Borrello, J.
Petitioners dispute respondent’s assessment of lessee-user taxes, assessed pursuant to MCL 211.181; MSA 7.7(5). The Tax Tribunal upheld the assessment and petitioners appeal as of right. We affirm.
Respondent filed a complaint for condemnation of petitioners’ property on November 24, 1980, as part of the Central Industrial Park Project, commonly known as the Poletown Project. Petitioners, hereafter referred to as National Exposition, did not contest the condemnation. Other Poletown property owners did contest the condemnation and our Supreme Court upheld the condemnation in Poletown Neighborhood Council v Detroit, 410 Mich 616; 304 NW2d 455 (1981). Following that decision, the circuit court ordered National Exposition to surrender the property, which National Exposition did on July 1, 1981.
In July, 1981, respondent sent National Exposition a tax bill assessing lessee-user taxes. National Exposition did not file any protest. A condemnation trial fixing compensation was held in November, 1981. In March, 1982, National Exposition filed a motion in the circuit court contesting the tax assessment and contesting respondent’s deduction of the lessee-user taxes from the condemnation award. The circuit court transferred the case to the Tax Tribunal, ruling that the circuit court had no jurisdiction. This Court dismissed National Exposition’s appeal, but the Supreme Court remanded the case in March, 1983, for plenary consideration. Detroit v National Exposition Co, 417 Mich 918 (1983).
This Court held that lessee-user taxes could be deducted from a condemnation award and remanded the case to the Tax Tribunal for a determination of whether the lessee-user tax applied to National Exposition and whether it was properly assessed. Detroit v National Exposition Co, 142 Mich App 539; 370 NW2d 397 (1985). The Tax Tribunal held that the lessee-user tax was applicable to National Exposition, and National Exposition appeals that decision here.
This Court’s review of a decision by the Tax Tribunal is limited, in the absence of fraud, to determining whether the tribunal made an error of law or adopted a wrong principle. The factual findings of the Tax Tribunal will be upheld if supported by competent and substantial evidence. Antisdale v City of Galesburg, 420 Mich 265, 277; 362 NW2d 632 (1985). The Tax Tribunal’s construction of a statute is entitled to respectful consideration. Wikman v City of Novi, 413 Mich 617, 650-651; 322 NW2d 103 (1982).
The lessee-user tax statute provides:
(1) When any real property which for any reason is exempt from ad valorem property taxation is leased, loaned, or otherwise made available to and used by a private individual, association, or corporation in connection with a business conducted for profit, the lessees or users of this real property shall be subject to taxation in the same amount and to the same extent as though the lessee or user were the owner of this real property. [MCL. 211.181(1); MSA 7.7(5)(1).]
Title to the property vested in respondent when the complaint was filed on November 24, 1980. MCL 213.56; MSA 8.265(6); MCL 213.57; MSA 8.265(7). After that date, the property was exempt from ad valorem property taxes, and used by a private, nonexempt entity in connection with a business for profit. The statutory conditions for imposition of the lessee-user tax were met for the period December 31, 1980, to July 1, 1981, and none of the statutory exceptions are applicable to National Exposition. MCL 211.181; MSA 7.7(5). See also Detroit v Katz, 142 Mich App 737; 371 NW2d 860 (1985).
A cardinal rule of statutory construction is that courts may not speculate as to the probable intent of the Legislature beyond the words employed in the statute. A word or a phrase in a statute is to be given its plain and ordinary meaning. Van Dam v Grand Rapids Civil Service Bd, 162 Mich App 135, 138; 412 NW2d 260 (1987). When the language of a statute is clear and unambiguous, judicial construction is neither required nor permitted. Such a statute must be applied, and not interpreted, since it speaks for itself. Van Dam, supra.
National Exposition argues that the tax should not be applied to them because the purpose of the tax is to equalize the tax burden between users of exempt and nonexempt property. American Title Ins Co v Detroit, 102 Mich App 679, 681;302 NW2d 278 (1981). National Exposition argues that this purpose is not served by applying the tax to a holdover user of condemned property. We find this argument unpersuasive. National Exposition erroneously concludes that the purpose of equalizing tax burdens on users of exempt and users of nonexempt property is not served by imposition of the tax in this case. When respondent became the owner of the condemned property, National Expo sition was no longer liable for property taxes, thus imposition of the lessee-user tax compensates for this benefit.
National Exposition also erroneously argues that the language of the act makes the tax applicable only to situations where the tax-exempt owner affirmatively acts to make the property available to the user. National Exposition attempts to distinguish its case by the fact that it occupied the property by right under the condemnation statute, until the circuit court ordered surrender. MCL 213.59; MSA 8.265(9). While National Exposition’s occupation of the condemned property was not the result of a bargain between National Exposition and respondent, we find that the language of the lessee-user tax statute covers this situation. The language "loaned, or otherwise made available to” clearly indicates the Legislature’s intention to apply the tax to any business using property exempt from property taxes, regardless of how the use arose, and not just to businesses occupying property under bargained-for leases. The language of the statute applies a tax based on the status of the user and owner of the property, not based on the legal arrangement which creates the use. The plain terms of the statute make the tax applicable to National Exposition, and this Court is not free to speculate about the Legislature’s intention apart from that plain meaning. Van Dam, supra.
National Exposition also contends that the Tax Tribunal erred in refusing to prorate the lessee-user taxes pursuant to MCL 211.2; MSA 7.2. That statute provides, in pertinent part:
Notwithstanding any provision to the contrary in any law, when real property is acquired for public purposes by purchase or condemnation, all general property taxes, but not penalties, levied during the 12 months immediately preceding, but not including, the day title passes to the public agency shall be prorated in accordance with this paragraph.
The Tax Tribunal ruled that MCL 211.2; MSA 7.2 provides only for the proration of taxes levied on real property. The lessee-user tax is a personal liability of the user of the property. MCL 211.181(1); MSA 7.7(5)(1). Katz, supra, pp 740-741. Thus, the Tax Tribunal concluded that National Exposition was not entitled to have the lessee-user taxes prorated pursuant to MCL 211.2; MSA 7.2.
An agency’s interpretation of a statute is entitled to respectful consideration. Wikman, supra. The Tax Tribunal’s construction of MCL 211.2; MSA 7.2 comports with the plain meaning of the statutory language.
The decision of the Tax Tribunal is affirmed. | [
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P. J. Clulo, J.
Defendants appeal as of right from the trial court’s grant of summary disposition pursuant to MCR 2.116(C)(10) in favor of plaintiff and the entry of judgment for plaintiff in the amount of $25,140. We reverse.
Plaintiff, Pi-Con, Inc., brought suit under the Michigan public works bond act, MCL 129.201 et seq.; MSA 5.2321(1) et seq., against defendant A. J. Anderson Construction Company and its bonding company, defendant Federal Insurance Company. Anderson Company was the general contractor for a building project at Cass Tech High School in Detroit. Brian & Gregory was a subcontractor to Anderson Company. Pi-Con was a subcontractor to Brian & Gregory. Brian & Gregory filed for bankruptcy and Pi-Con was unable to secure compensation in the bankruptcy proceedings for materials and labor it furnished on the project. Pi-Con then sought payment from Anderson Company and Federal Insurance upon the bond secured by Anderson Company. MCL 129.207; MSA 5.2321(7). Pi-Con alleged that it had furnished labor and materials for the construction project to Brian & Gregory amounting to $25,140.
On December 15, 1982, Pi-Con sent a notice to the Detroit Board of Education, with copies to Brian & Gregory and to Anderson Company, stating that it had entered into a contract with Brian & Gregory to supply materials and installation services. This letter was sent by ordinary first class mail, and Anderson Company claims that this letter could not be found in its files. On December 7, 1982, Anderson Company had sent a mailgram to Brian & Gregory expressing concerns over Pi-Con’s performance as a subcontractor. Pi-Con completed its work on the project on June 29, 1984. On September 6, 1984, Pi-Con sent notice to Anderson Company and the board of education stating that Brian & Gregory owed it $25,140 for labor and materials. This notice was sent by return mail, receipt requested.
On May 10, 1985, Pi-Con filed suit for $25,140 pursuant to MCL 129.207; MSA 5.2321(7). Defendants claimed that Pi-Con had not complied with the notice requirement of the bond statute because it had not sent the first notice by certified mail. Defendants also claimed that they lacked knowledge of the dates labor and materials were furnished, whether money was owed plaintiff on the project, and in what amount. Plaintiff filed a motion for summary disposition pursuant to MCR 2.116(0(10) alleging that there was no genuine issue of material fact. At the hearing, defendants argued only that plaintiff had not complied with the statutory requirements for perfecting a claim against the bond.
The trial court granted summary disposition for plaintiff, finding that defendants had received some notice and that plaintiff had substantially complied with the statutory requirements. The trial court then granted plaintiff’s motion for judgment in the amount of $25,140. Defendants opposed entry of this judgment, arguing that there was a material issue of fact as to the amount of damages.
At issue is the interpretation of § 7 of the Michigan public works bond statute, MCL 129.201 et seq.; MSA 5.2321(1) et seq., which was enacted to protect contractors and materialmen working on public projects, since the mechanic’s lien law does not apply to public buildings. Adamo Equipment Rental Co v Mack Development Co, Inc, 122 Mich App 233, 236; 333 NW2d 40 (1982). Section 7 of the act specifies the procedure for a subcontractor who does not deal directly with the primary contractor to perfect a claim against the performance bond. MCL 129.207; MSA 5.2321(7) provides in pertinent part:
A claimant who has furnished labor or material in the prosecution of the work provided for in such contract in respect of which payment bond is furnished under the provisions of section 3, and who has not been paid in full therefor before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which claim is made, may sue on the payment bond for the amount, or the balance thereof, unpaid at the time of institution of the civil action, prosecute such action to final judgment for the sum justly due him and have execution thereon. A claimant not having a direct contractual relationship with the principal contractor shall not have a right of action upon the payment bond unless (a) he has within 30 days after furnishing the first of such material or performing the first of such labor, served on the principal contractor a written notice, which shall inform the principal of the nature of the materials being furnished or to be furnished, or labor being performed or to be performed and identifying the party contracting for such labor or materials and the site for the performance of such labor or the delivery of such materials, and (b) he has given written notice to the principal contractor and the governmental unit involved within 90 days from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Each notice shall be served by mailing the same by certified mail, postage prepaid, in an envelope addressed to the principal contractor, the governmental unit involved, at any place at which said parties maintain a business or residence.
In the instant case, it is undisputed that Pi-Con had no direct contractual relationship with the principal contractor, Anderson Company. Nor is it disputed that Pi-Con sent the required second notice to the governmental unit and to Anderson Company by certified mail within ninety days of completing its work for the subcontractor, Brian & Gregory. Pi-Con did not, however, comply with the statute’s requirement that notice be sent by certified mail to the principal contractor within thirty days of furnishing the first of the material or labor to be provided.
Pi-Con argues that mailing timely notice by regular mail, rather than by certified mail, constitutes substantial compliance satisfying the statute’s notice requirement. Pi-Con points out that the principal contractor, Anderson Company, had actual notice that Pi-Con was working on the project, as evidenced by the mailgram Anderson Company sent to Brian & Gregory.
We hold that mailing notice by regular mail, despite evidence of actual notice, does not satisfy the statute and that strict compliance with the statute’s notice requirements is required. Charles W Anderson Co v Argonaut Ins Co, 62 Mich App 650, 653-654; 233 NW2d 691 (1975), lv den 395 Mich 815 (1975), motion for reconsideration denied 397 Mich 954 (1976). See also Square D Environmental Corp v Aero Mechanical, Inc, 119 Mich App 740, 744; 326 NW2d 629 (1982); John A Hall Construction Co v Boone & Darr, Inc, 102 Mich App 786, 795-796; 302 NW2d 850 (1981), lv den 414 Mich 874 (1982). As the Court in Anderson Co wrote:
We are not out of sympathy with plaintiffs position but the plain language of the statute and the force of the precedent which we must apply in our interpretation thereof compel us to the conclusion that substantial compliance is not sufficient. [Anderson, supra, p 652.]
The statute clearly states the requirements for perfecting a claim against the performance bond. Sending the notice by certified mail is one of those requirements. The statute also clearly states that "[a] claimant not having a direct contractual relationship with the principal contractor shall not have a right of action upon the payment bond unless” it complies with these requirements. MCL 129.207; MSA 5.2321(7). We agree with the Ander son Co Court that "[s]uch explicit language leaves very little room for judicial construction.” Anderson Co, supra, p 654. A cardinal rule of statutory construction is that courts may not speculate as to the probable intent of the Legislature beyond the words employed in the statute, and when the language of a statute is clear and unambiguous, the statute must be applied and not interpreted. Van Dam v Civil Service Bd of the City of Grand Rapids, 162 Mich App 135, 138; 412 NW2d 260 (1987).
Pi-Con argues that a panel of this Court rejected the strict interpretation construction of Anderson Co in Adamo Equipment, supra. Pi-Con requests this Court to follow that decision and depart from the precedent in Anderson Co. We decline to do so, noting that Adamo Equipment concerned the interpretation of a different provision of the statute, namely MCL 129.209; MSA 5.2321(9). The Court in Adamo Equipment, supra, p 236, wrote that the public works bond act was remedial in nature and should be liberally construed. Liberal construction may be appropriate where the statutory language is susceptible of different interpretations, as in MCL 129.209; MSA 5.2321(9). Adamo Equipment, supra. Where the language is unambiguous, however, as in MCL 129.207; MSA 5.2321(7), there is no need for judicial interpretation. Van Dam, supra.
Pi-Con argues that the public bond statute at issue should be liberally construed because the Michigan mechanics’ lien act, MCL 570.1 et seq.; MSA 26.281 et seq., and the federal projects bonding act, 40 USC 270(a) et seq., are liberally construed. We reject this argument for the reasons stated by the Court in Square D v Aero Mechanical, supra, pp 743-744. We also note that the notice provision of the predecessor statute to the public bond statute at issue was also strictly construed. The notice requirements were considered mandatory and a condition precedent to recovery on the bond. Anderson Co, supra, pp 652-653. Thus, we conclude that liberal construction of other provisions of the Michigan public bond statute does not preclude a ruling that § 7 of that act be strictly construed.
We reverse the trial court’s grant of summary disposition and judgment for plaintiff, and grant summary disposition for defendants. MCR 2.116(0(10). Our resolution of this issue makes it unnecessary to decide defendants’ other claims of error.
Reversed. | [
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Per Curiam.
The issue in this case is which statute applies to a defendant’s motion for bond pending a prosecutor’s appeal to this Court from a decision of the Court of Appeals which reverses a defendant’s felony conviction and remands for a new trial. Defendant argues that the applicable statute is that covering appeals by the people from a court of record, MCL 765.7; MSA 28.894. Plaintiff argues for application of the statutes covering postconviction appeals, MCL 770.8; MSA 28.1105, MCL 770.9; MSA 28.1106, and MCL 770.9a; MSA 28.1106(1). While none of these statutes was written with the present situation in mind, we hold that the statutes covering postconviction appeals are more apt.
i
Defendant was tried on a charge of second-degree murder before a jury of the Recorder’s Court of the City of Detroit. The victim was a former roommate of defendant. The victim’s body was found outside defendant’s house. Part of the evidence used against defendant was a statement given by defendant to police several hours after his arrest. In it, defendant said he had been sleeping on his couch when he was awakened by an intruder. Claiming to have been fearful for his life, defendant admitted beating the victim with a table leg. The trial court instructed the jury on second-degree murder and self-defense, but refused a defense request to instruct on manslaughter. The jury found defendant guilty of second-degree murder.
Defendant appealed in the Court of Appeals, which reversed in an unpublished per curiam opinion decided October 14, 1987 (Docket No. 93016). The Court found that two preserved claims of error required reversal: the failure to instruct on voluntary manslaughter, and an argument by the trial prosecutor about defendant’s failure to tell his story to police at the time of his arrest.
Plaintiff filed a timely application for leave to appeal in this Court. We ordered the application held in abeyance for cases pending before this Court.
Defendant has filed a motion for release on personal recognizance, pending final disposition of plaintiff’s application, and a motion for immediate consideration of the motion for release.
n
Defendant argues that he is no longer incarcerated pursuant to a presumptively valid conviction. He argues that he should be treated as if he were an incarcerated defendant who has been awaiting trial since the date of the Court of Appeals decision. Defendant argues that he has a right to post bail on personal recognizance under Const 1963, art 1, §§ 15 and 16 and MCL 765.7; MSA 28.894.
MCL 765.7; MSA 28.894 provides:
If an appeal is taken by or on behalf of the people of the state of Michigan from a court of record, the defendant shall be permitted to post bail on his or her own recognizance, pending the prosecution and determination of the appeal, unless the trial court determines and certifies that the character of the offense, the respondent, and the questions involved in the appeal, render it advisable that bail be required.
Plaintiff argues that admission to bail in any postconviction appeal is governed by MCL 770.8; MSA 28.1105 and MCL 770.9; MSA 28.1106 (for nonassaultive crimes) or MCL 770.9a; MSA 28.1106(1) (for assaultive crimes). The last-cited statute requires, as a precondition for admission to bail, proof by clear and convincing evidence that the defendant is not likely to pose a danger to other persons and that the appeal or application raises a substantial question of law or fact.
in
The statutes cited by the parties were written prior to the creation of the Court of Appeals. Neither of the statutes, as originally enacted, contains any reference to admission to bail pending further review of an intermediate appellate court reversal of a conviction. However, amendments of the statutes relied on by plaintiff contain slight but sufficient indications of legislative intent to apply to this situation.
The statute relied on by defendant, MCL 765.7; MSA 28.894, was first enacted as § 7 of Chapter 5 of the Code of Criminal Procedure in 1927 PA 175. The other sections of that chapter refer to pretrial bail procedures, MCL 765.1 et seq.; MSA 28.888 et seq., former 1929 CL 17163 et seq.
The statutes relied on by plaintiff, MCL 770.8; MSA 28.1105, MCL 770.9; MSA 28.1106, and MCL 770.9a; MSA 28.1106(1) are §§ 8, 9, and 9a of Chapter 10 of the Code of Criminal Procedure. Chapter 10 deals with postconviction procedures. Prior to their amendment by 1977 PA 34, §§ 8 and 9 provided:
Sec. 8. During the time between judgment and the decision of the supreme court or any justice thereof on the application for a writ of error under this act, the trial judge may, in his discretion, admit the defendant to bail, if the offense charged is bailable.
Sec. 9. Upon granting application for a writ of error the appellant may, in the discretion of the supreme court or any justice thereof, be admitted to bail, if the offense charged be bailable.
These sections and that relied on by defendant were written almost forty years prior to creation of the Court of Appeals. There is nothing to suggest that they were intended to deal with the possibility of a further appeal after a reversal by a then-nonexistent intermediate appellate court.
Sections 8 and 9 of Chapter 10 were amended and § 9a was added by 1977 PA 34. These now provide:
Sec. 8. During the time between the trial court judgment and the decision of the court to which an appeal is taken, the trial judge may admit the defendant to bail, if the offense charged is bailable and if the offense is not an assaultive crime as defined in section 9a of this chapter.
Sec. 9. During the pendency of an appeal or application for leave to appeal, a justice or judge of the court in which the appeal or application is filed may admit the defendant to bail, if the offense charged is bailable and if the offense is not an assaultive crime as defined in section 9a of this chapter.
Sec. 9a. (1) A defendant convicted of an assaultive crime and awaiting sentence shall be detained and shall not be admitted to bail, unless the trial court finds by clear and convincing evidence that the defendant is not likely to pose a danger to other persons.
(2) A defendant convicted of an assaultive crime and sentenced to a term of imprisonment who has filed an appeal or an application for leave to appeal shall be detained and shall not be admitted to bail, unless the trial court or the court to which the appeal is taken finds by clear and convincing evidence that both of the following exist:
(a) The defendant is not likely to pose a danger to other persons.
(b) The appeal or application raises a substantial question of law or fact.
(3) As used in this section, "assaultive crime” means an offense against a person described in any of the following sections: 82 to 89, 316, 317, 321, 349 to 350, 397, 520a to 520g, 529, and 530 of Act No. 328 of the Public Acts of 1931, as amended, being sections 750.82 to 750.89, 750.316, 750.317, 750.321, 750.349 to 750.350, 750.397, 750.520a to 750.520g, 750.529, and 750.530 of the Michigan Compiled Laws.
(4) The appeal or application for leave to appeal filed by a person denied bail under this section shall be expedited pursuant to rules adopted for that purpose by the supreme court.
The obvious primary purpose of the amendments was to enact restrictive preconditions on admission to bail on appeal by defendants convicted of assaultive crimes. There are, however, three changes that create an implication that the Legislature intended the statute to apply in the instant situation. First, § 9 was amended to refer to a "judge of the court in which the appeal or application is filed.” The former language referred to a "justice” and "the supreme court.” This change of language implies recognition of the existence of the Court of Appeals. There is no mention of the applicability of the statute to a reversal of a conviction by the Court of Appeals and subsequent appeal to this Court.
Second, the amendment also changed terminology from "appellant” in the former statute to "defendant.” This change implies that the defendant need not be the appellant in a postconviction appeal for the provisions of the sections to apply. This argument supports plaintiffs position. It is based on a rather subtle, ambiguous way to deal with a situation which could easily be addressed by a direct statement on whether the statutes apply.
Third, 1977 PA 34 amended subsection (2) of § 12, MCL 770.12; MSA 28.1109 (the prosecutor’s appeal section), to provide:
The right of the defendant to bail upon appeal under this section shall be governed by section 9a of this chapter and section 7 of chapter 5 [MCL 765.7; MSA 28.894].
This language directly evidences a legislative in tent that bail for a defendant convicted of an assaultive crime be determined under § 9a, even when the plaintiff is the appellant. That intent would apply to this case. The language is ambiguous. It refers to appeals permitted the people under § 12. Prior to the change effected by 1988 PA 66 the statute did not include appeal by the people of an intermediate appellate court reversal of a conviction.
The Legislature’s expression of its intent to apply § 9a to the instant situation is clear enough that it should be given effect despite the imperfection of the language used. We hold today that, during the pendency of a plaintiffs application for leave to appeal to this Court from a Court of Appeals reversal of a criminal conviction, a motion by the defendant for bond pending appeal will be governed by §§ 8 and 9 or 9a, as applicable, of Chapter 10 of the Code of Criminal Procedure. Defendant does not argue that he qualifies for bond under those conditions. We therefore grant defendant’s motion for immediate consideration and deny his motion for release on personal recognizance.
Riley, C.J., and Levin, Brickley, Cavanagh, Boyle, Archer, and Griffin, JJ., concurred.
The cases are People v McReavy, 429 Mich 857 (1987), People v Sutton, 429 Mich 858 (1987), and People v Cetlinski, 429 Mich 858 (1987).
A similar motion was considered and denied by the trial court.
Const 1963, art 1, § 15 provides:
No person shall be subject for the same offense to be twice put in jeopardy. All persons shall, before conviction, be bailable by sufficient sureties, except that bail may be denied for the following persons when the proof is evident or the presumption great:
(a) A person who, within the 15 years immediately preceding a motion for bail pending the disposition of an indictment for a violent felony or of an arraignment on a warrant charging a violent felony, has been convicted of 2 or more violent felonies under the laws of this state or under substantially similar laws of the United States or another state, or a combination thereof, only if the prior felony convictions arose out of at least 2 separate incidents, events, or transactions.
(b) A person who is indicted for, or arraigned on a warrant charging, murder or treason.
(c) A person who is indicted for, or arraigned on a warrant charging, criminal sexual conduct in the first degree, armed robbery, or kidnapping with intent to extort money or other valuable thing thereby, unless the court finds by clear and convincing evidence that the defendant is not likely to flee or present a danger to any other person.
(d) A person who is indicted for, or arraigned on a warrant charging, a violent felony which is alleged to have been committed while the person was on bail, pending the disposition of a prior violent felony charge or while the person was on probation or parole as a result of a prior conviction for a violent felony.
If a person is denied admission to bail under this section, the trial of the person shall be commenced not more than 90 days after the date on which admission to bail is denied. If the trial is not commenced within 90 days after the date on which admission to bail is denied and the delay is not attributable to the defense, the court shall immediately schedule a bail hearing and shall set the amount of bail for the person.
As used in this section, "violent felony” means a felony, an element of which involves a violent act or threat of a violent act against any other person.
Const 1963, art 1, § 16 provides:
Excessive bail shall not be required; excessive fines shall not be imposed; cruel or unusual punishment shall not be inflicted; nor shall witnesses be unreasonably detained.
1929 CL 17366 granted the prosecutor the right to take a writ of error from a decision quashing an indictment, arresting judgment, or directing a judgment of acquittal "where such decision is based upon the invalidity or construction of the statute upon which such indictment is founded.” That section indicated: "The right of defendant to bail upon issuance of a writ of error under the provisions of this section shall be governed by the provisions of chapter five of this act.” Similar provisions were found at former MCL 770.12; MSA 28.1109 prior to amendment by 1988 PA 66.
The amendment does not suggest that factors such as those listed in People v Giacalone, 16 Mich App 352; 167 NW2d 871 (1969), do not have continued relevance to all crimes, assaultive or not. See also anno: Right of defendant in state court to bail pending appeal from conviction — Modem cases, 28 ALR4th 227.
In the former statute "appellant” could only refer to defendant.
As amended by 1977 PA 34, MCL 770.12; MSA 28.1109, provided the people with the following right of appeal:
(1) An appeal may be taken by and on behalf of the people of this state from a court of record in all criminal cases, in any of the following instances:
(a) From a decision or judgment quashing or setting aside an indictment, information, or other charging instrument, or a count thereof, where that decision or judgment is based upon the invalidity or construction of the statute upon which the indictment, information, or other charging instrument is founded.
(b) From a decision arresting a judgment of conviction or directing a judgment of acquittal for insufficiency of the indict ment, information, or other charging instrument, where the decision is based upon the invalidity or construction of the statute upon which the indictment, information, or other charging instrument is founded.
(c) From a decision or judgment sustaining a special plea in bar, when the defendant has not been put in jeopardy, or from another order of the court relative to admission of evidence or proceedings had or made before the defendant is put in jeopardy.
This portion of § 12 was further amended by 1988 PA 66, which applies only to crimes committed on or after March 30, 1988. Generally, the section now permits appeals consistent with double jeopardy limitations. It is now broad enough to include the present situation. However, as with 1977 PA 34, there is no direct comment on the issue before us.
We note that the intent indicated by the Legislature in 1977 PA 34 is consistent with the limitation placed on preconviction bail by the amendment of Const 1963, art 1, § 15, adopted at the general election of 1978. Prior to the amendment, the constitution contained restrictions on preconviction admission to bail only when the charge was murder or treason. After amendment, extensive restrictions were added for other violent felonies, see n 3. While the constitutional provision is different from § 9a, the differences are not critical because we cite the constitutional provision only by analogy. By its terms, the constitutional provision applies to bail before conviction. Defendant has been convicted. That conviction shows that the trial court and jury, if any, were convinced of defendant’s factual guilt. The same evidence should suffice for a showing that "the proof is evident- or the presumption great” under the constitutional provision. Even if the constitutional provision applied, this defendant would not automatically qualify for bail because he is charged with murder. Const 1963, art 1, § 15(b).
See n 8. | [
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Graves, J.
April, 4, 1877, complainant filed her bill to foreclose a mortgage made by the defendants Frederick and Catharine Juif to the City Fire .Insurance Company of Hartford, Connecticut, to secure payment of $6000 in five years from January 1st, 1870, with semi-annual interest at ten per cent, per annum.
January 5, 1872, the City Fire Insurance Company assigned to the Orient Insurance Company, and March 20, 1875, the latter company assigned to complainant. The defendants Dagobert Juif and Eielaus Améis were joined as subsequent incumbrancers. The bill claimed interest at ten per cent, after maturity of the principal as well as before.
Subpoena was issued immediately and was duly served on all the defendants April 7. It was returnable on the 18th, and neither of the defendants appearing, the bill was regularly taken as confessed May 10th. May 26 it was referred to a commissioner for computation, and on the 28th of May he filed his report, and on the same day the solicitor made and filed the usual affidavit of regularity and obtained decree for sale and foreclosure. The decree was in the form in common use in foreclosure cases, and it required defendants to pay complainant $6902.19, being the sum reported due, on or before April 4, 1878, with interest at ten per cent, per annum from the date of the commissioner’s report, and provided that in case default should be made in such payment, the mortgaged premises might be sold by a commissioner, etc.
January 9, 1878, the defendant Améis applied to the court by petition to open and vary the decree. January 25th, 1878, the court heard the application and denied it and the petitioner appealed.
The proceeding was in truth a motion for rehearing, and it complained that irregularities had occurred in ■taking the decree and that it was improper to allow interest at ten per cent, after the principal fell due. The petitioner alleged that he held a subsequent mortgage on the premises for $2000, and being unable to make any defense to the foreclosure, supposed he would be compelled to redeem in order to protect his interests, and acting upon that assumption he procured the money necessary for the purpose, and on January 5th, 1878, placed the matter in the hands of his counsel, •“when he was informed and first discovered the irregularities set forth.”
The objection that the case was not noticed for hearing has no force. Defendants having failed to appear, complainant was authorized to proceed ex parte —Rule 15 — and petitioner was in no way prejudiced by the omission of complainant to cause the case to be formally placed upon the term calendar of the court.
In regard to the allowance of interest at ten per cent, after the coming due of the principal, only a few words are necessary. We are aware of the difference of judicial opinion which appears in regard to this general subject, but we think the matter is settled in this State in favor of allowing interest at the rate, not above ten per cent., prescribed by the contract as well after maturity as before. Such has been the invariable construction here, not only by the profession, but by all others, and we are not disposed to question its propriety. Were we to do so it is quite impossible to say how far transactions would be unsettled and business interests be disturbed.
• The legislature must have been cognizant all along of the popular interpretation and might have corrected it if considered wrong. It refrained however from interposing to curtail interest; but did take action to allow it where it was not allowed before. In 1869 it declared that when any installment of interest upon any note, bond, mortgage, or other written contract shall have become due and the same shall remain unpaid, interest may be computed and collected on any such installment so due and unpaid from the time at which it became due, at the same rate as specified in any such note, bond, mortgage, or other written contract, not exceeding ten per cent.; and if no rate of interest be specified in such instrument, then at the rate of seven per centum per annum. Comp. L., § 1637.
It would now be hardly excusable for this court to assume to revive the subject. If a change is desirable it can be brought about by the legislature without reaching back and affecting the past. The statute permitting the collection of interest upon judgments at the rate borne by the contract has in like manner been practically construed as embracing decrees, and we think such construction to be correct.
Finally, it will be noticed that the application was made more than seven months after the decree was entered, and that the delay is in no manner excused or explained. The time given to appeal had long past and according to the general course in this State the motion was manifestly too late. Benedict v. Thompson, Walk. Ch., 446.
The order appealed from should be affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
In this case the finding of facts is imperfect; so much so that it is impossible to review the case upon the merits. The rule is well settled that the finding of facts must contain all that is essential to the plaintiff’s recovery; and if it does not, an assignment of error that the finding does not support the judgment must prevail. Wood v. La Rue, 9 Mich., 158; Burk v. Webb, 32 Mich., 173. The case must go back for a new hearing, and it would be improper to intimate any opinion on the merits on a record which sets forth the proceedings so imperfectly. • | [
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H. Hood, J.
The people appeal by leave granted from the order of the trial court granting defendant’s motion to withdraw his guilty plea on the ground that he did not know when he pled guilty that, because of his conviction, he would be deported to Israel.
On May 11, 1983, defendant was admitted to the United States as an immigrant from Israel. Defendant has never applied for United States citizenship. In April, 1984, at age twenty-three, defendant was charged with delivery of cocaine. On October 17, 1984, defendant pled guilty to delivery of less than fifty grams of cocaine, MCL 333.7401(2)(a)(iv); MSA 14.15(7401)(2)(a)(iv). In exchange, three charges of trafficking cocaine were dropped. On June 19, 1985, defendant was sentenced to five years probation.
On March 12, 1987, a deportation hearing was held in Detroit, and defendant was ordered de ported to Israel pursuant to 8 USC 1251 (a)(11) because of his conviction. Defendant was ordered to report for deportation on June 30, 1987, but was later granted a stay pending the outcome of this case.
On June 9, 1987, defendant filed a motion to withdraw his guilty plea. In the motion, defendant set forth many reasons why he felt he should be able to withdraw his plea. He alleged that at the time he was arrested he had just arrived in the United States and had become associated with the wrong crowd. He alleged that the amount of cocaine involved was small and that he had repented. He alleged that deportation would be excessive punishment. In an affidavit accompanying his petition, defendant stated that before he pled guilty, his defense counsel cautioned him that a conviction could affect his status as a permanent resident under the United States Immigration and Nationality Act, but that he did not know that he was actually subject to being deported until deportation proceedings were begun against him. He stated that, had he known about deportation, he would not have pled guilty and that, thus, he pled without fully understanding the plea’s consequences. He also stated that at the time he "was conversant only to a limited extent with the English language.”
The motion was heard on September 8, 1987. Counsel for defendant noted that defendant was now married and had a child and that deportation would be excessive punishment. The prosecutor argued that the court had complied with MCR 6.101(F) at the guilty plea hearing and that that rule did not say that an alien must be told of deportation. The prosecutor stated that, should the court grant the petition, his office would immedi ately proceed to trial, so defendant would gain nothing except a little time.
On September 14, 1987, the court rendered its decision. The court stated:
But, I guess Mr. Kadadu feels that he hasn’t had his day in court, hasn’t had a trial; his conviction was by a plea, and he would like to have the matter tried.
So, under the circumstances, I’m inclined to give him that opportunity if that’s what he really wants, set aside the plea and have the prosecutor prove his guilt if they’re able to.
So I’m going to set it aside and order a new trial date ....
Where a defendant seeks to set aside a guilty plea following conviction and sentencing, his motion is addressed to the discretion of the trial court, which must make a determination as to whether the defendant has shown that his prior guilty plea conviction was a miscarriage of justice. People v Lippert, 79 Mich App 730, 735; 263 NW2d 268 (1977), lv den 404 Mich 805 (1978) (citing People v Winegar, 380 Mich 719; 158 NW2d 395 [1968]). Appellate relief is granted if the record demonstrates an abuse of discretion. People v Watson, 22 Mich App 703, 705-706; 177 NW2d 671, lv den 383 Mich 788 (1970).
The statute under which defendant is to be deported is 8 USC 1251(a)(11), which states:
Any alien in the United States shall, upon the order of the Attorney General, be deported who ....
(11) is, or hereafter at any time after entry has been, a narcotic drug addict, or who at any time has been convicted of a violation of, or a conspir acy to violate, any law or regulation of a State, the United States, or a foreign country relating to a controlled substance ....
Whether a defendant should be able to withdraw his guilty plea on the ground that he did not know he would be deported is a case of first impression in Michigan. Although there are no Michigan cases on point, the federal Courts of Appeal and several states have addressed this issue. The early federal court decisions have uniformly denied relief. See United States v Parrino, 212 F2d 919 (CA 2, 1954), cert den 348 US 840; 75 S Ct 46; 99 L Ed 663 (1954); United States v Sambro, 147 US App DC 75; 454 F2d 918 (1971); United States v Santelises, 476 F2d 787 (CA 2, 1973); Michel v United States, 507 F2d 461, 464-66 (CA 2, 1974); Nunez Cordero v United States, 533 F2d 723 (CA 1, 1976). The first federal case allowing a defendant relief was United States v Russell, 222 US App DC 313; 686 F2d 35 (1982). In Russell, the court set forth three factors to guide district courts in their determination of whether defendants should be allowed to withdraw their guilty pleas:
In summary, it is possible to identify several considerations that should guide district court exercise of discretion under Rule 32(d). The first is the strength of the defendant’s reason for withdrawing the plea, including whether the defendant asserts his innocence of the charge .... The second is the possible existence of prejudice to the government’s case as a result of the defendant’s untimely request to stand trial. . . . Finally, the trial court must consider whether the defendant’s misunderstanding of the collateral consequences of the plea is the result of misleading statements by governmental authorities or the defendant’s own ignorance. [Russell, supra, 686 F2d 39.]
The court noted how a remand would be appropriate for the district court to apply the factors. Id., p 40. However, in lieu of remanding, the court reversed because the record revealed that the prosecutor had misinformed the defendant that the plea would not subject him to deportation. Id., p 41.
In later federal cases, the defendants alleged ineffective assistance of counsel for their counsels’ failure to tell them about deportation consequences of their pleas. See United States v Gavilan, 761 F2d 226 (CA 5, 1985); Downs-Morgan v United States, 765 F2d 1534 (CA 11, 1985); United States v Campbell, 778 F2d 764 (CA 11, 1985). Although the Courts of Appeal affirmed the district courts’ denials of the defendants’ motions in Gavilán and Campbell, the courts did so only because the defendants had not made a sufficient showing of ineffective assistance of counsel. Gavilan, supra, p 228; Campbell, supra, pp 767-768. In Downs-Morgan, supra, the court remanded for an evidentiary hearing to determine whether the defendant was afforded reasonably effective assistance from his counsel in deciding to plead guilty. Downs-Morgan, supra, p 1541.
A number of states also have addressed this issue. Five states — California, Connecticut, Massachusetts, Oregon, and Washington — have enacted statutes requiring courts to inform defendants of the possible deportation consequences of guilty pleas. Cal Penal Code § 1016.5 (West); Conn Gen Stat §54-1j; Mass Ann Laws ch 278, §29D (Law Co-op); Or Rev Stat § 135.385; Wash Rev Code § 10.40.200.
Other states which do not have statutes have decisions on point. Wisconsin, Florida, and Alaska have held that, as a matter of law, a defendant may not withdraw his guilty plea. State v Santos, 136 Wis 2d 528; 401 NW2d 856 (1987); State v Ginebra, 511 So 2d 960 (Fla, 1987); Tafoya v State, 500 P2d 247 (Alas, 1972), cert den 410 US 945; 93 S Ct 1389; 35 L Ed 2d 611 (1973). Other states have allowed withdrawal if the defendant makes a sufficient showing of ineffective assistance of counsel. See State v Lopez, 379 NW2d 633 (Minn App, 1986); Daley v State, 61 Md App 486; 487 A2d 320 (1985); State v Chung, 210 NJ Super 427; 510 A2d 72 (1986); Commonwealth v Wellington, 305 Pa Super 24; 451 A2d 223 (1982); People v Pozo, 712 P2d 1044 (Colo App, 1985). In Mott v State, 407 NW2d 581, 583 (Iowa, 1987), the Iowa Supreme Court held that, if the defendant’s counsel actively misrepresented to the defendant that he would not be deported, the defendant was denied the effective assistance of counsel and should be able to withdraw his guilty plea. The Illinois Supreme Court also took this approach in People v Correa, 108 Ill 2d 541, 552-553; 485 NE2d 307, 312 (1985).
That deportation may have a serious effect on a defendant’s life cannot be disputed. See Ng Fung Ho v White, 259 US 276, 284; 42 S Ct 492, 495; 66 L Ed 938, 943 (1922).
It is extremely troublesome that deportation has never been considered a direct consequence of guilty pleas of the sort that must be brought to the defendant’s attention before his plea may be considered voluntary. . . . Aliens form a discrete, easily recognized class of defendants. They are deported by the same branch of government that brings criminal charges against them, and in many cases their deportation is a more direct and automatic consequence of conviction than any other sanction. District courts need to remember that although they are not required to explain the possibility of deportation to alien defendants before accepting a plea under Rule 11, nothing prohibits them from doing so. The distribution of justice to alien defendants can only be enhanced if the trial courts make sure such defendants know the pandects under which they plead. [Russell, supra, pp 41-42.]
As indicated earlier, a motion to withdraw a guilty plea is addressed to the sound discretion of the trial court. Applying this standard, we feel that the trial court did not abuse its discretion in allowing defendant to withdraw his guilty plea. The court listened to both parties’ arguments and decided that it would be more equitable to allow defendant to go to trial before suffering the extreme consequences of deportation. Having presided at defendant’s guilty plea hearing, the trial judge was in a better position to know the circumstances of the crime to which defendant pled guilty than we are. We are hard pressed to find an abuse of discretion where a trial court has opted to grant to a criminal defendant an opportunity to proceed to trial and there is no showing that the prosecution is prejudiced by defendant’s decision to proceed to trial. The court recognized and exercised its discretion in deciding whether defendant should be able to withdraw his guilty plea, and we find no abuse of discretion.
Affirmed. | [
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Sawyer, P.J.
Petitioner appeals from a judgment of the Michigan Tax Tribunal, which affirmed the assessment made by respondent on certain residential property owned by petitioner in Oakland County. The dispute concerns whether respondent properly took into account certain repairs or improvements in the property in assessing the value of petitioner’s property or whether those items should have been excluded from the assessment pursuant to the home improvement act of 1976, MCL 211.27(2); MSA 7.27(2). With one exception, we reverse the decision of the tribunal.
This case involves a cottage purchased by petitioner in 1964 on Upper Pettibone Lake. Respondent assessed the property at $17,100 for tax year 1982. Petitioner claims the assessment should be approximately $11,000. The differences in value arrived at by the parties arise mainly from petitioner’s view that certain repairs or improvements to the cottage made by petitioner over a number of years should not be included in the assessment under the above-mentioned act, while respondent maintains that those repairs or improvements were properly included.
The repairs or improvements at issue were made at various times from 1968 to 1978. However, apparently none of these were considered by respondent until 1979, when the township underwent a general reappraisal which was conducted by the employees of the Oakland County Equalization Department. At issue are the following items: (1) the removal of screens on the porch and the filling of the openings thus created with concrete blocks, (2) the removal of a wall between the porch and the interior living space, (3) the replacement of eight windows with vinyl-clad windows and the replacement of a wooden door with a steel insulated door, (4) the recovering of a floor and the replacement of a ceiling, and (5) repairs to the roof. We shall consider each of these items separately in light of the applicable statute.
MCL 211.27(2); MSA 7.27(2) provides as follows:
The assessor, beginning December 31, 1976, shall not consider expenditures for normal repairs, replacement, and maintenance in determining the true cash value of property for assessment purposes until the property is sold. Value attributable to the items included in subdivisions (a) to (o) which is known to the assessor and excluded from the true cash value shall be indicated on the assessment roll. This subsection shall apply only to residential property. The following repairs shall be considered normal maintenance if they are not part of a structural addition or completion:
(a) Outside painting.
(b) Repairing or replacing siding, roof, porches, steps, sidewalks, and drives.
(c) Repainting, repairing, or replacing existing masonry.
(d) Replacement of awnings.
(e) Adding or replacing gutters and downspouts.
(f) Replacing storm windows or doors.
(g) Insulation or weatherstripping.
(h) Complete rewiring.
(i) Replacing plumbing and light fixtures.
(j) New furnace replacing a furnace of the same type or replacing oil or gas burner.
(k) Plaster repairs, inside painting, or other redecorating.
(l) New ceiling, wall, or ñoor surfacing.
(m) Removing partitions to enlarge rooms.
(n) Replacing automatic hot water heater.
(o) Replacing dated interior woodwork.
Court review of decisions of the Tax Tribunal, in the absence of fraud, is limited to determining whether the tribunal made an error of law or adopted a wrong principle, and the factual findings of the tribunal are final, provided that they are supported by competent and substantial evidence. Antisdale v Galesburg, 420 Mich 265, 277; 362 NW2d 632 (1984).
Turning first to the work done on the porch, we are inclined to conclude that petitioner’s removal of screens on the porch and the filling of openings thus created with concrete blocks do not come within the purview of the act. It does not come within subdivision (c) since it does not constitute the repair or replacement of existing masonry, but rather the addition of new masonry. On the other hand, it could arguably come within subdivision (b) as the repairing of a porch or under subdivision (f) as the replacing of windows or doors. While this presents a close question, we are inclined to conclude that the replacement of screens with concrete blocks constitutes "a structural addition or a completion” rather than a repair under the act. '
We next consider the removal of the wall between the interior living space and the porch. This activity clearly comes within the provisions of subdivision (m), which provides for the removing of interior partitions to enlarge rooms. By removing the wall to allow the interior living space to expand into what had previously been the porch area, petitioner removed a partition to enlarge a room. Accordingly, this was not properly considered by the assessor.
Next, we must consider whether the replacement of eight windows with vinyl-clad windows and the replacement of a wooden door with a steel insulated door comes within the provisions of subdivision (f), which provides for the replacing of storm windows or doors. We conclude that the subdivision is applicable. It appears that petitioner did replace both storm windows and the underlying wooden-framed windows with vinyl-clad windows and a wooden-framed storm door and the underlying wooden door with a steel insulated door. While this presents a close question, we are inclined to agree with petitioner that this does come within the purview of subdivision (f) inasmuch as storm windows and doors were replaced. We do not believe that the emphasis should be placed on what was installed, but rather what was replaced inasmuch as the statute refers to the replacing of storm windows and doors rather than installing storm windows and doors. Moreover, we do not believe it equitable to rule against a taxpayer where improvements in the materials available now allow for the replacement of older style windows and storm windows, as two separate units, with a newer unit which renders a separate storm window unnecessary. We believe that the actions taken by petitioner in the case at bar come within the purview of the Legislature’s intent in enacting this subdivision.
Next, we consider the work done by petitioner on the ceiling and floor, apparently repairing water damage. Subdivision (1) clearly includes new ceilings and floor surfacing. Accordingly, the work done by petitioner on the floors and walls comes within the purview of the act.
Finally, we consider the new roof which petitioner built to replace an old roof which was apparently in need of repair. The tribunal rejected the new roof as coming within the purview of the act on the basis that the old roof was of a gable roof design and the new roof was of a hip roof design. We disagree with the tribunal’s conclusion. Subdivision (b) includes the repairing or replacing of a roof. Nothing in the statute indicates that the new roof must be of the same design as the old roof. We see no reason why, when a property owner must make repairs or replacement of an old roof, he should be required to build the new roof with the same design as the old roof. Accordingly, we conclude that the tribunal erred in its decision that the new roof did not come within the purview of the act.
For the above reasons, we conclude that the tribunal erred in affirming respondént’s inclusion of the above items, with the exception of the masonry work done to the porch windows, in the assessment of petitioner’s property. All of those items, with the one exception, shall be excluded from the assessment of the property pursuant to the home improvement act.
We must next consider whether those repairs which were conducted prior to the effective date of the act nevertheless come within the purview of the act. The tribunal concluded that work done prior to December 31, 1976, does not qualify for exclusion under the act. We disagree. As quoted above, the act states that "the assessor, beginning December 31,1976, shall not consider expenditures for . . . .” Accordingly, the act clearly directs our attention to when the assessor makes his assessment, not to when the work is done. Had the Legislature intended to make the date of the work the triggering event, it could have clearly provided so by stating that the assessor should not consider expenditures made or work performed before December 31, 1976. However, the Legislature did not so state. Since the statute refers to the date after which the assessor may no longer consider these items, we can only conclude that the relevant date is that of the assessment, not of the repair. Although it may be true that a number of these items could have been properly considered by the assessor had petitioner’s property been reassessed prior to December 31, 1976, the fact that the assessor failed to reassess petitioner’s property by that date simply works to petitioner’s advantage and respondent’s detriment. Simply put, had respondent wished to include any of these items for which the work had been done prior to December 31, 1976, in the assessment of petitioner’s property, it should have reassessed the property prior to that date. It failed to do so and is now foreclosed from including those items in the assessment.
Next, petitioner argues that respondent incorrectly determined the effective age of the house, which is used in determining the appropriate depreciation factor. Basically, the assessor employed an "Effective Year Chart” which considers the actual date the building was constructed and whether it is in above average, average, or below average condition in arriving at an effective age of the building (as opposed to the actual age) which may then be used to determine the appropriate depreciation factor to apply to the building in arriving at the final assessed value. The essence of petitioner’s argument appears to be that the assessor improperly considered the above repairs in determining in which condition classification (above average, average, or below average) to classify petitioner’s house, resulting in the house being classified as being "above average” rather than in a lower category.
Although the Tax Tribunal’s opinion does refer to petitioner’s argument on this issue, the tribunal did not fully analyze the issue inasmuch as it agreed with the assessor that the repairs could be considered in making the assessment. Accordingly, we believe it would be premature for us to fully address this issue at this time. Rather, on remand, the Tax Tribunal shall address the issue of (1) whether those repairs which are excludable under the act from inclusion in the assessed valuation should also be excluded from consideration in determining the effective age of a building and (2), if those repairs should be ignored in arriving at an effective age, the tribunal should determine what the effective age of petitioner’s house is without reference to those items which we have concluded should be excluded from the assessment.
Finally, petitioner argues that the tribunal erred in accepting respondent’s valuation of his land even though the comparable properties in the area relied upon by the parties had lower valuations. Respondent does not address this question in its brief on appeal. As noted above, our review is limited to questions of law and we must accept the factual findings of the tribunal. Accordingly, we decline to address the question whether the tribunal properly accepted the valuation of the land in light of the comparable property values. However, we gratuitously note that petitioner’s argument seems to have some factual merit and that, while we are unable to require the tribunal to reconsider the issue, we would recommend that it do so.
The decision of the tribunal is affirmed in part and reversed in part and the matter is remanded to the tribunal for further proceedings consistent with this opinion. We do not retain jurisdiction. Petitioner may tax costs in this Court.
Affirmed in part, reversed in part, and remanded.
A different result might be called for if the new roof permitted a new or additional use of the building, for instance to permit an attic to now be used as living space. However, there is no indication that this was the situation in the case at bar. | [
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R. L. Tahvonen, J.
Plaintiff State-William Partnership brought this action to foreclose on a land contract. Defendant Glen R. Gale is the sole partner in defendant Corner of State and William Partnership. Defendants’ counterclaim alleged misrepresentation and fraudulent concealment of material facts during negotiations for the sale of the building and sought damages on these claims. The trial court found that defendants were in default on the land contract and granted foreclosure. The court also awarded defendants damages on two of their claims. Defendants appeal as of right. We affirm.
Gale purchased the commercial building at the corner of State and William Streets in Ann Arbor on March 23, 1978. The land contract provides for monthly payments on the principal and for monthly deposits into an escrow account for property taxes and insurance costs. Both payments are due on the first of the month. Under the terms of the contract, if the purchaser defaults, and the default continues for forty-five days, the seller may foreclose.
Gale was late with his payments in April and May of 1982, although the payments were less than forty-five days late. Ronald Weiser, general partner of State-William Partnership, and the chief executive of McKinley Associates, the managing company for State-William Partnership, testified that no legal action was economically feasible before the forty-five-day period, but that he never gave Gale permission to make late payments. Other McKinley Associates employees who serviced Gale’s contract also testified that they did not tell Gale that McKinley Associates consented to the late payments.
Gale was late with the June 1, 1982, payment, and the forty-five-day period expired on July 19, 1982. No payment was received on July 19. Weiser was not contacted on July 19 by Gale or his wife concerning the June payment. On July 20, McKinley Associates telephoned Gale. Gale said that he was having cash-flow problems and expected to catch, up in August. Gale did not tell McKinley Associates that the payment had been sent. After this telephone call, McKinley Associates sent a letter of notice of acceleration. Later that day, Mrs. Gale went to McKinley Associates and tendered the escrow payment, which McKinley Associates did not accept. Mrs. Gale swore an affidavit stating that she mailed a check for payment on the principal on July 19. This check was received by McKinley Associates on July 21.
Gale claimed that McKinley Associates had con sented on several occasions to late payments which were made after the last day of the month, and claimed that the payment on the principal was dated by his postage machine on July 19 and was mailed on that day. Gale also claimed that he had been unable to get a bank loan in time to make the payments because a Michigan Employment Security Commission tax lien against plaintiff State-William Partnership had been levied on his property.
The trial judge found that the land contract was in default, and that neither plaintiff nor its agents ever gave defendants permission to make late payments. The trial judge also concluded that defendants’ claims for fraudulent concealment and misrepresentation did not justify denying plaintiff’s action for foreclosure. We agree.
Acceleration clauses in land contracts are valid and enforceable. Sindlinger v Paul, 145 Mich App 28, 33; 377 NW2d 331 (1985). However, in some circumstances it may be inequitable for the trial court to grant acceleration, and the court may decline to do so. Hygelund v Atlas, 247 Mich 605; 226 NW 217 (1929); Moore v Bunch, 29 Mich App 498; 185 NW2d 565 (1971).
A trial court’s findings of fact will not be set aside on appeal unless clearly erroneous. This Court gives due regard to the trial court’s opportunity to judge the credibility of the witnesses. MCR 2.613(C). See also Vergote v K mart Corp, 158 Mich App 96; 404 NW2d 711 (1987). The trial court’s findings that plaintiff did not give defendants permission to make late payments and that the tax escrow payment was not timely made were amply supported by the trial record. The trial judge properly concluded that defendants had defaulted under the terms of the land contract.
Defendants argue on appeal that the trial court incorrectly ruled against defendants on their fraud claims, and that the amount of these claims, which exceeds the amount due for June 19, 1982, should be set off against that installment obligation to preclude a finding of default. Defendants also contend that the existence of defendants’ fraud claims in an amount greater than the payment owed is sufficient to prevent foreclosure because that constitutes a dispute as to the amount owed under the land contract. Defendants rely on Hygelund, supra, in support of their argument.
Regardless of the merits of defendants’ fraud claims, those damages may not be set off against the amount due to preclude a finding of default. Contrary to defendants’ contention, Hygelund did not hold that the fact that purchasers had a claim against the sellers precluded a finding of default, but held that, under the circumstances of the case, it would be inequitable to enforce the acceleration provision of the contract. Hygelund, supra, p 607.
In Hygelund, the purchasers were found to be in default because they had not tendered payment in compliance with the contract terms. The Supreme Court found that, considering the purchasers’ claim against the sellers for rent due, the trial judge had erred in applying the acceleration clause of the mortgage contract. The amount due under the contract was the amount of the unpaid installment, from which the purchasers could deduct the unpaid rent owed them by the sellers. Hygelund, supra, pp 606-607.
This Court followed the Hygelund decision in Moore, supra. In Moore, the purchasers stopped payment and informed the sellers that they were seeking a reduction of the purchase price on the ground of misrepresentation. The parties were unable to agree, and the purchasers subsequently made payments to an escrow account, pending resolution of the dispute. No agreement having been reached, the sellers then brought suit to foreclose under the contract. Moore, supra, p 499.
Citing Hygelund, the Moore Court wrote:
The acceleration clause of the contract was valid and binding, but should not have been applied, because there was an honest dispute over the amount which the defendant was required to pay. [Moore, supra, p 500.]
The Court in Moore concluded that a good-faith dispute over matters other than the amount due under the contract was sufficient to grant equitable relief from the operation of an acceleration clause. The Court did not hold that the finding of default was incorrect. Moore, supra, pp 500-501.
The existence of default under a contract is a question of fact. While the existence of a bona fide dispute over the amount owed under the contract or for other damages may justify a court in using its equitable powers to relieve the purchaser from an unreasonable forfeiture, it does not prevent a finding of default. Hygelund, supra; Moore, supra. The trial court’s finding in this case that defendants were in default is affirmed.
Defendants argue that the existence of disputes about the amount due under the land contract, based on defendants’ fraud claims, made it inequitable for the court to grant acceleration. The trial court concluded that defendants’ claims for fraudulent concealment and misrepresentation did not justify denying plaintiffs action for foreclosure. We affirm this decision. The trial court’s findings of fact on defendants’ fraud claims were amply supported by the record, and its rulings on those claims are affirmed. MCR 2.613(C).
The facts of the Hygelund and Moore cases are distinguishable from the facts in this case. In those cases, the existence of good-faith disputes between the sellers and the purchasers about the amount due on the installment or the contract price led to the purchasers’ default and made it inequitable to grant acceleration of the contract. In the instant case, defendants did not assert these fraud claims prior to their default and these claims did not lead to the default. Purchasers under a land contract may not sit on their right to sue and contend four or five years after the sale that a misrepresentation at the time of sale excuses their default. See Minchella v Fredericks, 138 Mich App 462, 474; 360 NW2d 896 (1984).
Defendants also argue that the Michigan Employment Security Commission tax lien levied on the building prevented Gale from obtaining a bank loan in time to make the June payment and should excuse defendants’ default. Even if the mesc lien did delay approval of Gale’s loan, plaintiff partnership was not at fault. The mesc lien was improperly filed against one of the partners in plaintiff partnership and was removed when this mistake was discovered. The trial judge concluded that the improperly filed tax lien was hot grounds for justifying defendants’ late payments. The trial judge also found that Gale did not even consider this when failing to make his payments on time. There was no testimony that Gale ever told plaintiff that his payments were late because of his inability to obtain a loan because of the mesc lien. These findings were not clearly erroneous. MCR 2.613(C). Gale’s financial problems are not grounds for excusing the default. Nor is plaintiff estopped from foreclosing because of an event for which it was not responsible. The trial court’s decision on this issue is affirmed.
Defendants’ first fraud claim alleged that plain tiff misrepresented the status of negotiations with a prospective tenant, the Bagel Place, when Gale was deciding whether to purchase the building. Gale testified that plaintiff told Gale that a Bagel Place tenancy was a "virtual sure thing,” and that plaintiff included figures for a Bagel Place tenancy on the Annual Property Operating Data sheet given Gale before the purchase.
The trial court analyzed defendants’ claim as alleging breach of promise, i.e., that plaintiff promised Gale that the Bagel Place would rent the premises. Since plaintiff could not bind a third party in contract, we agree with defendants’ characterization of the claim as one alleging a misrepresentation about the state of negotiations with the Bagel Place at the time the land contract was signed.
Claims for fraudulent misrepresentation require proof that (1) the defendant made a material representation, (2) it was false, (3) the defendant knew it was false when made, or made it recklessly, without knowledge of its truth and as a positive assertion, (4) it was made with the intention to induce reliance by the plaintiff, (5) the plaintiff acted in reliance upon it, and (6) the plaintiff thereby suffered injury. Temborius v Slatkin, 157 Mich App 587, 597; 403 NW2d 821 (1986). A claim for "innocent” misrepresentation requires proof of the same elements except that the misrepresentation need not be made knowingly or recklessly. Innocent misrepresentation also requires proof of the additional element that the plaintiff’s injury actually benefited the defendant. Id.
The trial court found that plaintiff did not promise defendants that the Bagel Place would rent the premises. This finding is well supported by the evidence and is affirmed. MCR 2.613(C). The evidence showed that plaintiff only expressed to Gale its opinion that the Bagel Place would rent on the terms they had discussed. Plaintiffs statements about the probability of a Bagel Place lease were not misrepresentations of fact, but were opinions.
Defendants’ fraud claim also fails because Gale could not reasonably rely on the alleged statements that the Bagel Place would rent the premises when the land contract expressly required plaintiff to deliver that space vacant. Gale expressly reserved to himself the authority to lease that space, and cannot later claim that he relied on plaintiff to lease it when making his decision to purchase the building.
Finally, defendants did not prove that plaintiff’s statements about the Bagel Place’s intentions to lease were false. Plaintiff indicated that the Bagel Place was disposed to lease the premises on the terms plaintiff and the Bagel Place discussed. Gale changed those terms, raising the rent, and the owner of the Bagel Place testified that the increased rent was the reason he ended the negotiations. Gale’s conduct of further negotiations with the Bagel Place and the increased price are also further evidence that Gale did not rely on plaintiff’s negotiations.
The evidence does not support a finding of either fraudulent or innocent misrepresentation. See Temborius, supra. The trial court did not err in rejecting defendants’ claim for damages on this issue or in determining that this was not grounds for denying plaintiff’s petition for foreclosure. The correct result of a trial court may be affirmed for different reasons. DeWitt Twp v Clinton Co, 113 Mich App 709, 713; 319 NW2d 2 (1982).
Defendants’ second fraud claim is that plaintiff fraudulently concealed the existence of an option to renew the lease which had been granted to tenant Suwanee Springs. Plaintiff admitted that Gale was not informed of the option to renew, but that the omission was not intentional. The trial court found that Gale did not consider the option significant and that Gale had not relied on the Suwanee Springs lease term in making his decision to purchase the building. This finding was amply supported by the trial record. MCR 2.613(C). The trial court also found that plaintiff should have disclosed the existence of the option to Gale, and that failure to do so was negligence. The trial court awarded defendants damages in the amount of $933.25 for attorney fees incurred in the eviction suit.
Defendants claim on appeal that the trial court erred in awarding damages only for attorney fees and not for lost rent. We find no error. Since defendants did not prove fraudulent or innocent misrepresentation, defendants are not entitled to damages for lost rent, or for the difference between the value of the property with and without the option to renew. Temborius, supra; Gorman v Soble, 120 Mich App 831; 318 NW2d 119 (1982). The trial court’s conclusion that knowledge of the option would not have affected Gale’s decision to purchase the property at that price is not clearly erroneous. MCR 2.613(C).
Defendants’ third fraud claim is that plaintiff fraudulently concealed code violations. The trial court found that Gale inspected the premises himself and also retained an inspector. This finding, which is supported by the record, precludes any finding of fraud. Temborius, supra, p 597. The trial court ruled that, even if code violations existed at the time of sale, these violations did not justify denial of foreclosure because the contract provided that defendants accepted the premises "as is.” A contract should be given its plain meaning. Friske v Jasinski Builders, Inc, 156 Mich App 468; 402 NW2d 42 (1986). We affirm the trial court’s decision on this claim.
Finally, defendants claim on appeal that the trial court erred in failing to address defendants’ fraud claim concerning the proration of utilities with Suwanee Springs. Defendants claim that plaintiff fraudulently concealed the existence of an agreement with Suwanee Springs that reduced their proper share of the utilities. Our review of the record shows that this issue was not raised in the pleadings, and is not preserved for appeal. Community Nat’l Bank of Pontiac v Mich Basic Property Ins Ass’n, 159 Mich App 510; 407 NW2d 31 (1987); Belobradich v Sarnsethsiri, 131 Mich App 241, 246; 346 NW2d 83 (1983).
Our resolution of these issues renders plaintiff’s motion to dismiss the appeal moot, and that motion is denied.
Affirmed. Costs to appellee. | [
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G. S. Allen, J.
In this unfair labor practices action we are asked to decide whether, following annexation pursuant to MCL 380.901; MSA 15.4901, an annexing school district is required to honor the preexisting collective bargaining agreement of the district which is annexed. The issue is of first impression. Both the hearing officer and the Michigan Employment Relations Commission answered that question in the negative. The charging party appeals as of right. We affirm.
Crestwood School District (csd) and North Dear-born Heights School District (ndh) are fourth-class Michigan school districts. On May 7, 1985, pursuant to MCL 380.901; MSA 15.4901, ndh was annexed by and became part of csd following approval of the annexation by the voters of ndh. Prior to the annexation each district was a distinct and separate entity sharing a common geographic boundary. Each district had its own school board, hired its own employees, and maintained its own physical facilities. Prior to annexation ndh employed forty-nine teachers who were represented by the Michigan Education Association. Csd employed approximately 104 teachers who were represented by the Crestwood Teachers Organization. After annexation all ndh assets and liabilities were turned over to csd and forty-two of the forty-nine ndh teachers became teachers in the new CSD.
For a number of years prior to the successful annexation the matter of a merger or annexation of the two districts had been a lively topic. On March 7, 1983, a proposed annexation of ndh by csd was rejected by the voters of ndh despite the public support of the ndh Board of Education. However, following that election two successive efforts to maintain the existing millage rates were defeated by the ndh electorate. As a result, in October, 1984, the ndh Board of Education authorized David Taylor, its superintendent, to arrange a joint meeting with the csd Board of Education to discuss annexation. On November 19, 1984, the first of approximately ten joint meetings took place. At that meeting Robert Rutila, Superintendent of csd, stated that csd would not favor annexation if 1984 PA 154 was in effect. That act amended the School Code of 1976 by adding eight sections all relating to annexation and transfer of a school district. MCL 380.941-380.949; MSA 15.4941-15.4949. Section 948(2) expressly stated that the annexed district’s collective bargaining agreement would remain in effect until "a successor agreement has been ratified by the bargaining agent of each bargaining unit and the boards of education of the annexing school district . . . .”
Concurrently, ndh continued its negotiations with the Michigan Education Association for a new collective bargaining agreement. Agreement was reached and a new contract was entered into effective December 21, 1984, to run until August 31, 1986. On January 24, 1985, Attorney General Frank Kelley ruled that 1984 PA 154 did not apply to the proposed annexation. Based upon that opinion csd proceeded to support annexation and on January 28, 1985, both boards adopted resolutions calling for the annexation of ndh by csd. Each resolution stated that Crestwood sought annexation only if 1984 PA 154 was not applicable. The annexation was approved by the Crestwood district electorate and became effective May 7, 1985. Additionally, both boards conditioned annexation upon passage of an amendment to § 902(a) of the School Code which would allow teachers of the annexed district to retain their seniority as acquired in the annexed district but with layoffs and recalls to be made under procedures and standards of the annexing district. Legislation for that purpose was introduced in HB 4362 which upon enactment by the Legislature became 1985 PA 11, immediately effective April 24, 1985. MCL 380.902a; MSA 15.4902(1).
On April 5, 1985, even before the election was held, the mea filed an unfair labor practice charge against ndh claiming it was unlawfully and coercively dealing with mea members and was conspiring to repudiate the valid collective bargaining agreement between the mea and ndh. On May 17, 1985, by amended complaint, the mea charged both ndh and csd with unlawfully repudiating the mea-ndh agreement. Following hearings before a hearing officer in June, 1985, an opinion and order was issued on August 30, 1985, dismissing all charges.
Both sides appealed to the Michigan Employment Relations Commission. Csd disputed the hearing officer’s holding that it was properly before the commission even though it had not been properly served pursuant to the commission’s rules. On December 5, 1986, merc issued its decision and order holding that: (1) all charges against csd should be dismissed because csd was not served in accordance with merc rules; (2) csd was not required to honor the December 21, 1984, collective bargaining agreement between the mea and ndh; (3) ndh did not coerce or threaten mea members nor did csd or ndh bypass mea during and after annexation negotiations in violation of § 10(1)(A) of the public employment relations act (pera), MCL 423.210(1)(A); MSA 17.455(10)(1)(A); (4) csd had not unlawfully repudiated the December 21, 1984, collective bargaining agreement in violation of pera or § 901 of the Michigan School Code, MCL 380.901; MSA 15.4901; and (5) csd was not the alter ego of or successor to the annexed NDH.
From merc’s decision and order the charging party, mea, appealed as of right raising three issues: (I) Whether merc erred in concluding that all charges against csd should be dismissed because csd was not served in accordance with merc rules; (II) Whether merc erred in concluding that ndh did not coerce or threaten mea members and neither ndh nor csd bypassed mea during and after annexation negotiations in violation of pera § 10(1)(A); and (III) Whether merc erred in determining that csd was not required to honor the December 21, 1984, collective bargaining agreement between mea and csd. In supplemental briefs filed in July, 1987, two tangential issues were raised: (IV) Does the introduction of HB 429 establish that csd is not required to honor the December 21, 1984, collective bargaining agreement; and (V) Does the United States Supreme Court’s decision in Fall River Dyeing & Finishing Corp v NLRB, 482 US —; 107 S Ct 2225; 96 L Ed 2d 22 (1987), support merc’s decision regarding Issue ii.
i
The charging party, mea, concedes that defendant csd was not served with the unfair labor practices charge in accordance with Rule 71 of merc. No member of the Crestwood board was either personally served or served by registered mail. Nevertheless, Crestwood’s attorneys, who also represent ndh, were formally served and a copy of the amended charges was mailed to both respondents. Further, both respondents appeared and defended at the hearing on the charges. No prejudice to csd is shown or alleged because of the technically deficient service. This Court has held that, in accordance with MCR 2.105(J)(3), where notice of a pending suit is actually received within the requisite time frame, it matters not whether service of process was made in accordance with the prescribed rules. Hill v Frawley, 155 Mich App 611, 613; 400 NW2d 328 (1986); Bunner v Blow-Rite Insulation Co, Inc, 162 Mich App 669; 413 NW2d 474 (1987). Accordingly, merc’s decision on this issue is reversed. We next address the issues raised on their merits.
ii
The charging party, mea, contends that ndh directly and coercively dealt with mea members, thus undermining the mea’s position in violation of § 10(1)(a) of pera, and that merc’s conclusion to the contrary is erroneous. Defendant ndh argues that none of the statements to mea members were coercive and that an employer has a right to communicate with employees provided it is done, as in the instant case, in a noncoercive manner and no individual negotiations take place.
While it is true that in January, 1985, Superin tendent Taylor met with all ndh employees and informed them of the steps taken by the joint board meetings which commenced November 19, 1984, and described the plan of annexation and informed all persons present that, if annexation did occur, the existing collective bargaining agreement would not be honored, it does not follow that Taylor’s activities “circumvented and undermined the mea” or otherwise violated pera § 10(1)(a), which prohibits employers from interfering with the exercise of employee rights granted under § 9. An employer has a constitutional right to communicate with employees in a noncoercive manner as long as he does not engage in individual bargaining on mandatory subjects. In re Bangor Twp Bd of Ed, 1984 MERC Lab Op 274, 387-388; NLRB v Gissel Packing Co, 395 US 575, 617-618; 89 S Ct 1918; 23 L Ed 2d 547 (1969). Review of the record indicates that all of the communications were in the nature of a progress report on what each district was doing about annexation. In essence, the communications merely conveyed information of an impending annexation and what effect it would have on the future working conditions. In no respect was it bargaining.
Merc’s meticulously detailed opinion contains findings of fact and conclusions of law that neither the conduct of the superintendents of either school district or of the districts were in violation of pera § 10(1)(a). A substantial portion of appellant’s brief reargues disputed issues of fact. Findings of fact of the commission, “if supported by competent, material and substantial evidence on the record considered as a whole shall be conclusive.” Section 16(a), pera, MCL 423.216(e); MSA 17.455(16)(e). Strict deference must be given to an administrative agency’s findings of fact. MERC v Kleen-O-Rama, 60 Mich App 61; 230 NW2d 308 (1975). Appellate review should not invade the province of administrative fact finding "by displacing an agency’s choice between two reasonably differing views.” MERC v Detroit Symphony Orchestra, Inc, 393 Mich 116, 124; 223 NW2d 283 (1974).
The mea, however, argues that, even if merc’s findings of fact are accepted, its conclusions of law as applied to these facts are in error. In support of this claim the mea relies, inter alia, on In re Birmingham Bd of Ed, 1985 MERC Lab Op 755. In that case the Birmingham board bypassed the union and offered substantial early retirement benefits to union members. However, in that case the board was bargaining. In the instant case, ndh was simply telling its employees what to expect if annexation occurred. Likewise, City of Pontiac, 1975 MERC Lab Op 861, 867, is cited in support of the claim that § 10(10)(a) is violated when an employer directly notifies union members of its intention to alter working conditions. To the contrary, in that opinion the proposed change in working conditions had taken place. Thus, charging party’s claim herein that it was an unfair labor practice for ndh to announce prior to annexation that csd (not ndh) intended to repudiate the contract is not supported by case law. In summary, we find that merc’s decision that pera § 10(1)(a) was not violated is supported by competent evidence and is not contrary to law.
iii
Was csd required to honor the mea-ndh collective bargaining agreement following annexation? This is the dominant issue raised on appeal. It is also an issue of first impression. Mea argues that csd must honor the contract for any of three reasons: (A) under the School Code and Michigan case law teacher contracts of the annexed district become the liability of the annexing school district; (B) csd is the "remedial successor” of ndh and, as such, must honor earlier contracts of the former employer; and (C) csd is ndh’s "alter ego.”
A. SCHOOL CODE OP 1976
Section 948(2) of the Michigan School Code, added by 1984 PA 154, immediately effective June 25, 1984, provided that under certain conditions all employment contracts in effect at the time of an annexation-transfer election shall remain in effect until a new agreement is approved by the annexing district board. MCL 380.948(2); MSA 15.4948(2). Concerned that this section of 1984 PA 154 might apply to them, respondents asked the Attorney General for an opinion. As noted, from the very outset csd did not want to undertake annexation if it meant that csd would have to honor the mea-ndh bargaining agreement. On January 25, 1985, the Attorney General issued an opinion stating that §948 did not apply to the proposed annexation since that section was limited to annexations where part of one district is annexed to another and the remainder is transferred to still another district. The Attorney General ruled that the annexation of one school district to another continued to be governed by § 901 which permits annexation if a majority of the school electors in the district to be annexed approve the annexation and the board of the annexing district adopts a resolution approving the annexation. In so ruling, the Attorney General did not state one way or another whether annexations under § 901 required the annexing district to honor the collective bargaining agreement of the district annexed.
Mea argues that respondents fatally erred in concluding that, just because § 948 did not apply to the proposed annexation, § 901(3) would not. That section provides in relevant part:
Property and money belonging to the annexed school district shall be the property of the annexing school district. Outstanding indebtedness of the annexed school district shall become the liability of the annexing school district. [MCL 380.901(3); MSA 15.4901(3).]
According to the mea, the collective bargaining agreement is an "outstanding indebtedness” which under § 901(3) becomes the liability of the annexing school district. Mea buttresses this conclusion by reference to two Michigan Supreme Court decisions. In Wilson v School Dist No 4, Ellington Twp, 233 Mich 581; 207 NW2d 810 (1926), plaintiff was a teacher in defendant school district. When the schoolhouse burned defendant district merged with District No. 6 which refused to honor plaintiffs contract. Quoting from an old Michigan case, Halbert v School Dist of Watertown Twp, 36 Mich 421 (1887), our Supreme Court held: "Where one district is made up of two entire districts, it is clear enough that it must succeed to their rights and liabilities.” 233 Mich 583. In Stoel v Charlevoix Twp Unit School Dist No 1, 351 Mich 152; 88 NW2d 273 (1958), two school districts were consolidated by an election. The consolidation called for defendant district to become liable for the debts and obligations of Marion Center District. Defendant refused to honor the contract between plaintiff and Marion Center on the grounds that plaintiff did not possess a legal teaching certificate. The Court held that defendant must honor the contract, stating:
[I]f there had not been [a] consolidation of school districts, not only would this contract have been honored by the school district who drew it and not only would said contract be recognized as legal and binding, but the authorities . . . would have been complemented for the action which was taken under the emergency as it then existed.
Respondents contend that in enacting pera the Legislature purposely distinguished collective bargaining contracts from individual teacher contracts and that the explicit provision in § 948 of the School Code for the survival of collective bargaining agreements in the limited situation where part of a district is annexed and the remainder is transferred to a third district, indicates that the Legislature expressly intended that collective bargaining agreements did not have to be honored under § 901, where, as in the instant case, the entire school district is annexed to another district. Further, respondents argue that §901(3) of the School Code does not refer to collective bargaining agreements, but assuming, arguendo, that it does, where a conflict exists between the School Code and pera, the latter prevails. On that issue merc ruled in favor of respondents:
We agree with Respondent and the Administrative Law Judge that in enacting Section 901 of the School Code the legislature did not intend to determine the obligation of an annexing district to adhere to collective bargaining agreements negotiated by the annexed district. Collective bargaining agreements, unlike other contractual obligations including individual teacher contracts, are subject to the specific statutory regulation of pera. Under this statutory scheme, the contractual obligations and rights of parties to a collective bargaining agreement are intertwined with statutory rights and obligations. Specifically, the obligation of an employer to honor a collective bargaining agree ment depends on this existence of a bargaining obligation created and maintained by pera. As Respondents point out, in Section 948 of the School Code and elsewhere in the public acts the legislature has recognized the differences between collective bargaining contracts and other forms of public obligations. It has legislated explicitly to protect collective bargaining rights where it intended them preserved. We are not persuaded that in requiring the annexing district to assume the "outstanding indebtedness” of an annexed district, the legislature intended to require the annexing district to assume the annexed district’s collective bargaining agreements even where the annexed districts [sic] collective bargaining units have not remained intact after the annexation.
Sections 901-932 of the School Code pertain to annexation of an entire school district. Those sections were enacted by 1976 PA 451. Collectively they make up "Part 10, Annexation” of the School Code. In 1984 PA 154, a set of new sections was added to the code. These concerned situations where part of a school district was annexed and a remaining part was transferred to another district. Collectively, the new sections are designated "Part 10A, Annexation and Transfer” of the School Code. In Part 10A annexations, the Legislature expressly provided that the collective bargaining agreement of the district annexed must be honored. In Part 10 annexations the statute is silent as to whether collective bargaining agreements must be honored. Does the silence of the Legislature in Part 10 signal that, unlike Part 10A, an annexing district is not bound by the collective bargaining agreement of the district annexed? That is the key issue raised herein.
Although the issue is close, we answer that question in the affirmative. We do so on the basis of legislative intent expressed in two bills concern ing the ndh-csd annexation. As noted earlier, both boards conditioned their support of the proposed annexation upon enactment of an amendment to § 902(a) of the School Code. Legislation for that purpose was introduced early in 1985 in HB 4362 and upon passage April 11, 1985, became enrolled Public Act 11 of 1985. The House Legislative Analysis Section (Second Analysis) contains the following relevant information:
THE CONTENT OF THE BILL:
The bill would amend the School Code to provide that when one school district annexes another, the teachers of both districts would be merged for purposes of determining layoffs and recalls. Teachers of the annexed district would retain their seniority as acquired in the annexed district, and layoffs and recalls would be made according to the standards and procedures of the annexing district. A teacher on the layoff list of either district could not displace an actively employed teacher from either district at the time of annexation. Teachers on layoff lists from both districts would be merged in the same manner as those actively employed.
arguments:
For:
The bill would provide for dual seniority of teachers in the North Dearborn Heights and Crest-wood school districts in the event of an annexation. Passage of the bill would help promote a clear understanding of the seniority issue before voters go to the polls to decide the annexation issue. It has been the policy of the legislature and the Department of Education to encourage the reorganization of school districts for the purpose of allowing greater educational opportunity while reducing costs to the state and local communities. In the particular case of North Dearborn Heights and Crestwood, many residents of the area argue that the community cannot continue to support the relatively large number of school districts (six) serving approximately 60,000 people. This fact is illustrated by the expiration of North Dearborn Heights’ operating millage and several failed attempts to renew it. Several times in the past decade the legislature has passed legislation to assist local communities in their efforts toward school reorganization.
Against:
The bill has been proposed as a means of protecting the seniority rights of teachers, while in fact the bill is supported by both boards of education and opposed by both teacher organizations. Some people believe the bill is a ploy to have the legislature nullify the existing contracts of the teachers when such decisions should rightfully be made locally with input from all involved parties through the collective bargaining process. In fact, Public Act 154 contains provisions for just such a process, but through what some contend was a drañing error, that legislation applies only to school reorganizations in which a district is divided and its territory is transferred to two or more districts. The Crestwood/North Dearborn Heights aimexation has been proposed under the "old” school annexation provisions of the School Code, which are silent on the issue of employee rights. The issue of employee rights in school reorganizations should be addressed in comprehensive legislation which would apply to all school districts. The process for an orderly transition of employee contracts end bargaining units established in Public Act 154 of 1984 would be a sensible approach to apply to all school reorganizations. [Emphasis supplied.]
The emphasized portion of the above analysis clearly states that the instant statute was designed to do that which the Legislature intended to do in 1984 PA 154. To us, this demonstrates that the Legislature itself felt that, in the absence of corrective legislation, annexation under Part 10 did not require the annexing district to honor existing contracts in the annexed district. In other words, just as express language was needed that all employment contracts and agreements with authorized bargaining agents in effect at the time of annexation "shall remain in full force and effect for the duration of those contracts” in annexation-transfer (Part 10A) situations, so too it was needed in "old” (Part 10) school annexations. Had the Legislature believed, as the charging party asserts, that the silence of the Legislature in Part 10 situations requires the honoring of the transferred district’s collective bargaining agreement, no legislation need have been introduced.
Again, in HB 4429, introduced March 31, 1987, it clearly appears that, without amendatory language similar to that found in §948, collective bargaining agreements made pursuant to §901 need not be honored by the annexing district. HB 4429 would add § 902(b) to the School Code to provide in relevant part:
(1) Beginning October 1, 1985, except as provided in subsection (2), for employees of an annexing and an annexed school district all employment contracts and agreements with authorized bargaining agents in effect at the time of an annexation election shall remain in full force and effect for the employees covered by them until bargaining representatives of the employees have been certiñed by the Michigan employment relations commission and a successor agreement has been ratiñed by the bargaining agent of each bargaining unit and the board of the annexing school district. [Emphasis supplied.]
The legislative analysis accompanying HB 4429 deflates mea’s claim that under the School Code, as it read on the date of annexation — May 7, 1985, Crestwood was required to honor mea’s collective bargaining agreement with ndh.
Under the bill, employees of an annexed school district employed by an annexing district would be entitled to all the rights and benefits they otherwise would have been entitled to if they originally had been employed by the annexing district, including tenure status.
(Similar language to that found in this bill is already in the School Code in a section applying to school reorganizations in which a district is divided and its territory transferred to two or more other districts. The code’s provisions for other annexations apply only to annexations taking place up to June 30, 1986 in a county with a population of more than two million. The bill would change that date to September 30, 1985 and delete the population requirement. Those provisions require that teachers from both districts be merged for purposes of determining layoffs and recalls, and that teachers of the annexed district retain their seniority. A teacher on the layoff list of either district could not displace an actively employed teacher from either district. New collective bargaining contracts could alter those arrangements after the annexation had been in effect for two years.) [Emphasis supplied.]
We particularly note that the language used in HB 4429 is virtually verbatim the language used in § 948. If the Legislature truly believed that without any amendment § 902 as it read on May 7, 1985, required the annexed district’s collective bargaining agreements to be continued in effect, the Legislature would not have employed the introductory language "Beginning October 1, 1985.” The obvious reason for that language was to preserve the integrity of the paragraph as it stood prior to the time ndh was successfully annexed, viz. — that prior to October 1, 1985, collective bar gaining agreements of the unit to be annexed were not binding on the annexing district. In reaching our interpretation of the statute, we are fully aware of the argument that in some instances an amendment to a statute merely clarifies what the legislative intent had been prior to amendment. Production Credit Ass’n of Lansing v Dep’t of Treasury, 404 Mich 301, 319; 273 NW2d 10 (1978); Ziehm v State Farm Mutual Automobile Ins Co, 88 Mich App 576, 583; 278 NW2d 678 (1979). The charging party so argues in the instant case.
We reject that claim on two grounds. First, in Ziehm, the House Bill analysis stated that the proposed bill would only clarify legislative intent. In the instant case, the bill analysis not just once, but on> two separate occasions pertaining to two separate bills, expressly stated that the purpose of the statute was to do in the amendatory language that which was done in 1984 PA 154. Second, by using the language "prior to October 1, 1985” the Legislature clearly indicated it intended one result in pre-October 1, 1985, annexations and a different result in post-October 1, 1985, annexations.
Reasons of public policy also support merc’s decision. As recited earlier, the existing contract between the mea and ndh became the focal point in the decision to annex. From the outset, csd publicly stated that assumption of the ndh-mea collective bargaining agreement would be too costly and would involve the complications of administering two different bargaining agreements. Prior to the election, both districts adopted a comprehensive annexation plan which pointedly stated that all ndh employees would be "governed by the respective bargaining unit contracts in place or to be negotiated with Crestwood Board of Education.” Both boards specifically conditioned annexation upon passage of the amendment to § 902(a) of the School Code, discussed supra. Indeed, the entire campaign and the public information disseminated thereon was premised on the belief that annexation under Part 10 of the School Code would not require Crestwood to honor mea’s contract with ndh. Knowing all of these facts the State Board of Education approved the proposed annexation on March 7, 1985; § 902(a) was amended as requested and, on May 7, the people of North Dearborn Heights approved the annexation by a vote of 1,736 to 745.
In the absence of specific statutory provision that collective bargaining agreements of an annexed district must be honored by the annexing district, this Court declines to unilaterally reverse a decision of the voters of the district annexed. We decline to accomplish by judicial fiat that which the Legislature, as yet, has declined to do. If collective bargaining agreements of the district annexed under Part 10 of the School Code must be honored, that decision should be made by the Legislature, not by the judiciary.
B. SUCCESSORSHIP PRINCIPLES
Relying on John Wiley & Sons Inc v Livingston, 376 US 543; 84 S Ct 909; 11 L Ed 2d 898 (1964), and NLRB v Burns Security Services, 406 US 272; 92 S Ct 1571; 32 L Ed 2d 61 (1972), the mea contends that labor law doctrines of successorship require csd to honor the mea-ndh bargaining agreement. However, the Burns Court took pains to narrow its holding in Wiley by stating that in Wiley it had held that a successor could be forced to arbitrate the issue of what portion of a prior collective bargaining agreement the successor was obligated to honor. This is far different than the mea’s claim that John Wiley holds a successor corporation bound to honor the prior employer’s collective bargaining agreement.
More significantly, in finding the successorship relationship, the Burns Court relied on the fact that twenty-seven of the forty-two security guards hired by Burns had previously been employed by the predecessor company. Likewise, the predecessor’s union was the bargaining unit for Burns’ company. In the instant case only a minority of the employees of the new Crestwood district were former employees of ndh and the bargaining units are light years apart.
Recently, in Fall River Dyeing & Finishing Corp v NLRB, 482 US —, —, n 12; 107 S Ct 2225; 96 L Ed 2d 22 (1987), the United States Supreme Court, after stating that in Burns it "was unclear if [the duty to bargain] would turn on whether a majority of the successor’s employees were those of the predecessor or whether the successor had hired a majority of the predecessor’s employees,” concluded that the new employer has an obligation to bargain with the old employer’s union so long as the new employer is in fact a successor of the old employer and the majority of its employees were employed by its predecessor. Fall River reaffirmed the Burns two-step successorship test: (1) is the new employer the old employer’s successor in fact; and (2) were a majority of the successor’s employees employed by the predecessor employer. Only if both requirements are met may successorship liability be imposed.
In the instant case neither step of the test has been established. The new Crestwood School District is much larger, has a different policy making board, has an additional student body, physical plant and operates a different curriculum than the former ndh. Also, former ndh employees did not constitute the majority of csd employees.
C. ALTER EGO
A collective bargaining agreement binds the "alter ego” of the employer. Southport Petroleum Co v NLRB, 315 US 100; 62 S Ct 452; 86 L Ed 718 (1941). In West Ottawa Ed Ass’n v West Ottawa Public Schools Bd of Ed, 126 Mich App 306; 337 NW2d 533 (1983), this Court adopted the standard set forth in Crawford Door Sales Co, 226 NLRB 1144; 94 LRRM 1393 (1974), for determining whether one public employer is the successor or "alter ego” of another employer under pera.
In deciding whether an entity is an alter ego, the factors considered are whether the two enterprises have substantially identical management, business purpose, operation, equipment, customers, supervision, and ownership. . . . The focus of this test is on any continuing disguised attempt to avoid the obligations of a collective-bargaining agreement through a sham transaction or technical change in operations. . . .
. . . Although a bona fide successor generally is not bound by prior bargaining agreements, an alter ego will be, since it is, in reality, a disguised continuance of the old entity. . . . Since both the consortium and the West Ottawa School District existed simultaneously for several years, the alter ego test is inappropriate to evaluate the association’s claims. [126 Mich App 319. Citations omitted.]
The mea contends that the undisputed facts show that the "new” Crestwood is ndh’s alter ego, that the new district was jointly planned by the former two separate boards, that the joint boards planned what curriculum would be used, how the combined district would be financed, the placement and benefits to be awarded teachers, and even hired David Taylor, former ndh superintendent, as an assistant superintendent of the new district. We disagree. After the date of annexation the ndh board ceased to exercise any control over the operations, personnel, and equipment of the former ndh district. After May 7, 1985, budgeting, labor relations, grievances, purchasing and personnel decisions, which prior to annexation had been handled by Taylor, were handled by Robert Rutilla and Crestwood staff members who, prior to annexation, had no connection with ndh. Furthermore, policy decisions of the new district were made by a new board. As the mea itself admits in its brief on appeal, the postannexation csd is "materially different from either of its predecessors.” This being so, under the Crawford test "alter ego” status is not established. The essence of an "alter ego” finding is substantially identical management, customers, supervision and ownership. In the instant case, the record discloses substantial changes in management, supervision and ownership.
Further, a central element to finding an "alter ego” relationship is a sham or disguised attempt to avoid a collective bargaining agreement. In the instant case, the record clearly establishes that long before ndh and the mea entered into its collective bargaining agreement in late December, 1984, the issue of annexation of ndh and csd had been raised and twice rejected. Thus, it is difficult to conclude that the proposed annexation was something new or a sham to avoid the December, 1984, bargaining agreement.
Finally, most case law supporting an "alter ego” relationship involves situations where one private company is acquired by another private company. Seldom is an "alter ego” relationship found where, as here, one public employer is annexed to another public employer. In West Ottawa Ed Ass’n, supra, our Court concluded that, where both public units existed simultaneously for several years, the alter ego test is inappropriate to evaluate the charging party’s claims. Thus, as a matter of law, the "alter ego” relationship does not exist in the instant case.
Having found that, except for Issue I, merc did not err on any of the issues raised by charging party, the decision of merc is reversed as to Issue i and affirmed on all other parts.
No costs, a question of public importance being involved.
Under § 901(1) of the School Code, the State Board of Education is required to approve a proposed annexation. MCL 380.901(1); MSA 15.4901(1).
House Bill 4429, introduced March 31, 1987, would amend § 902a of the School Code to provide that, after October 1, 1985, when one school district annexes another, all bargaining agreements for employees of both districts at the time of the annexation election would remain in full force and effect until a successor agreement was ratified by the bargaining units and by the school board of the annexing district. Csd argues that this amendment clearly indicates that when Crestwood annexed ndh on May 7, 1985, it had no obligation to honor ndh’s collective bargaining agreement. The mea argues that, while as a general rule an amendment is to be construed as changing the statute amended, the rule is not applied in reverse to presume that the statute must have been something different than that which was the clear intent of the Legislature after amendment. Detroit Edison Co v Janosz, 350 Mich 606, 613-614; 87 NW2d 126 (1957). However, no action has been taken on the bill, which remains in committee. | [
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Wahls, P.J.
Defendant was convicted of second-degree murder, MCL 750.317; MSA 28.549, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2), at the conclusion of a bench trial in the Detroit Recorder’s Court. He was thereafter sentenced to terms of imprisonment of from eight to fifteen years for the murder conviction and two years for the felony-firearm conviction. He now appeals the principal Conviction and sentence as of right, and we affirm.
Defendant was convicted of second-degree murder for the apparent revenge killing of Dean Johnson. At the time of his death, Johnson was out on bond, awaiting trial for the murder of defendant’s brother. Throughout trial, defendant maintained his innocence and claimed to have been misidentified as the murderer. In finding defendant guilty of the crime, the trial judge rejected that defense and instead believed a prosecution witness who positively identified defendant as the man who shot Johnson.
On appeal, defendant first argues that the trial judge failed to make sufficient findings of each element of second-degree murder. We disagree.
The elements of second-degree murder are (1) that a death occurred, (2) that it was caused by the defendant, (3) that the killing was done with malice, and (4) without justification or excuse. People v Smith, 148 Mich App 16, 21; 384 NW2d 68 (1985); CJI 16:3:01. Malice is the intention to kill, the intention to do great bodily harm, or the intention to create a high risk of death or great bodily harm with knowledge that such is the probable result. People v Dykhouse, 418 Mich 488, 495; 345 NW2d 150 (1984); People v England, 164 Mich App 370, 376; 416 NW2d 425 (1987). This intent element must be established from circumstances which do not constitute excuse or justification or mitigate the degree of the offense to manslaughter. People v Watts, 149 Mich App 502, 513-514; 386 NW2d 565 (1986), lv den 425 Mich 885 (1986). Malice can be inferred from the facts and circumstances of the killing. Id.
As to the required specificity of factual findings at a bench trial, MCR 2.517(A)(1) provides:
In actions tried on the facts without a jury or with an advisory jury, the court shall find the facts specially, state separately its conclusions of law, and direct entry of the appropriate judgment.
That rule applies equally to both criminal and civil cases. People v Jackson, 390 Mich 621, 627; 212 NW2d 918 (1973); People v Robinson, 145 Mich App 562, 565; 378 NW2d 551 (1985). The purpose of making factual findings is to reveal the law applied by the factfinder. Jackson, supra, p 627. The sufficiency of factual findings cannot be judged on their face alone; the findings must be reviewed in the context of the specific legal and factual issues raised by the parties and the evidence. People v Melvin Davis, 146 Mich App 537, 549-550; 381 NW2d 759 (1985). The appropriate remedy for insufficient findings of fact is to remand the case for additional fact-finding. Jackson, supra, p 628; Melvin Davis, supra, p 549.
There is currently a split among panels of this Court regarding the degree of specificity necessary to satisfy MCR 2.517(A). In People v Davis, 126 Mich App 66, 70-71; 337 NW2d 315 (1983), it was held that the trial court must make specific find ings of fact on each element of the charged offense. Numerous cases decided subsequent to Davis have declined to impose such a rigid standard. Instead, those cases have held that the court rule has been satisfied where it is manifest that the trial court was aware of the factual issues and correctly applied the law, and where appellate review would not be facilitated by requiring further explanation. People v Fair, 165 Mich App 294, 295-298; 418 NW2d 438 (1988); People v Eggleston, 149 Mich App 665, 671; 386 NW2d 637 (1986), lv den 425 Mich 862 (1986); People v Robinson, supra, pp 565-566; People v Taylor, 133 Mich App 762, 766; 350 NW2d 318 (1984), rev’d and remanded on other grounds 422 Mich 554, 568 (1985). See also Jackson, supra. For the reasons discussed in Fair and Taylor, we believe the latter cases express the better view on this issue.
In the instant case, the trial judge was beginning to explain his factual findings when he said:
The other elements have to do with the state of mind and the death and I will also deal with those shortly in more detail about the nature of the incident here.
Unfortunately, the judge never returned to those elements to make express findings on defendant’s state of mind. Despite this, we do not believe a remand is necessary. There is sufficient information in the record to permit appellate review and to determine that the judge was aware of the facts and properly applied the law.
Defendant never asserted at trial that he did not have the requisite intent to support a conviction of second-degree murder. Rather, his sole defense was one of misidentification. Because the state of mind of Johnson’s murderer was not directly placed in issue, defendant was not prejudiced by the judge’s failure to expressly discuss it. Melvin Davis, supra, pp 549-550.
In any case, the record reveals that the judge was aware of the issue and properly applied the law in finding defendant guilty. The judge stated on the record:
To establish second degree murder the prosecution must prove each of the following elements beyond a reasonable doubt. . . . Fourth, for second degree murder the trier of fact must find that the Defendant acted with a certain state of mind causing the death. The trier of fact must find the Defendant had one of the following states of mind, that the Defendant intended to Mil the deceased Dean Johnson, or that the Defendant intended to do great bodily harm to the deceased Mr. Johnson. That the Defendant intended to create a very high risk of death or great bodily harm with knowledge that death or great bodily harm was the possible result of his act.
This is a sufficiently accurate summation of the law regarding the element of malice in second-degree murder cases. As to the factual circumstances of the case, the judge noted: "There is no allegation here or no determination shall I say to be made as to whether or not the matter was the result of justification, excuse or circumstances under which made the killing a lesser crime of manslaughter or some lesser included offense, primarily because of the nature of the defense that is raised.” Furthermore, in discussing the testimony of the various witnesses, the judge pointed out that Johnson was shot three times from a relatively close distance and that defendant acted "in a bit of street justice to avenge the death of his brother.” Implicit in these findings, we believe, is that defendant entertained a malicious intent to kill or cause great bodily harm to Johnson. Remand for additional fact-finding is, therefore, unnecessary.
Defendant next argues that the trial court erred in not resentencing him after it corrected an improperly scored sentencing guidelines variable. This argument is without merit.
At defendant’s original sentencing, offense variable three of the sentencing information report (sir) form was improperly scored, resulting in an inappropriately high offense severity level. Under the incorrect sir, the recommended minimum sentence range for the murder offense was twelve years to life. In sentencing defendant, the judge indicated that the circumstances of the case required some degree of leniency and, for that reason, he would impose a sentence below the recommended guidelines range. Defendant was thereafter sentenced to eight to fifteen years of imprisonment for the murder conviction. Subsequently, the trial court was directed by order of this Court to conduct a hearing to determine whether the sir was inaccurately scored. At that hearing, the court adjusted the scoring in accordance with defendant’s wishes. This apparently resulted in a new recommended minimum sentence range of two to nine years. The court then noted that defendant’s original sentence fell within that range and that it was not presented with any other reason for modifying the sentence. Therefore, it reaffirmed defendant’s original sentence of eight to fifteen years.
On appeal, defendant claims that he was entitled to resentencing because the judge, after not ing that the circumstances of the case demanded leniency, determined the leniency of the sentence using the inaccurate guidelines recommendation as the benchmark. We find no error.
The sentencing guidelines are simply a tool to assist the trial judge in the difficult task of imposing sentence. People v Terry James, 142 Mich App 19, 21; 368 NW2d 892 (1985). They do not grant any substantive rights to a defendant. People v Hearn, 159 Mich App 275, 286; 406 NW2d 211 (1987). Indeed, each sentence must be tailored to fit the particular defendant and the unique circumstances presented. Terry James, supra, p 21. This is precisely what the trial judge did in the case at bar. Defendant was sentenced to a minimum term of imprisonment of eight years based on the circumstances of the murder, and not merely because that period of time was four years less than the lowest figure in the recommended minimum sentence guidelines range set forth in the inaccurate sir. Defendant is not necessarily entitled to be sentenced to a minimum term far shorter than the upper limit of his corrected minimum sentence guidelines range simply because the sentencing judge determined that the incorrect minimum range was too high.
Affirmed.
G. S. Allen, J., concurred.
We note that of the three judges who decided People v Davis, 126 Mich App 66; 337 NW2d 315 (1983) (Judges Burns, Maher and Hood), two judges (Judges Burns and Hood) have repudiated the view expressed in Davis. See People v Taylor, 133 Mich App 762, 766, n 1; 350 NW2d 318 (1984), rev’d and remanded on other grounds 422 Mich 554 (1985), and People v Eggleston, 149 Mich App 665, 672, n 1; 386 NW2d 637 (1986), lv den 425 Mich 862 (1986). | [
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J. M. Batzer, J.
Plaintiffs, C. William Kauffman and Carol A. Kauffman, appeal as of right from an April 4, 1986, circuit court order dismissing with prejudice their complaint alleging common law malicious prosecution pursuant to MCR 2.116(C)(8). The circuit court dismissed the complaint as against defendant Stephen E. Shefman because it failed to allege the element of special injury. We affirm.
On December 17, 1979, the Kauffmans purchased real property under a land contract from Gregory and Elizabeth Reynolds. On September 30, 1981, the Reynoldses assigned their interests in the property to defendant Michigan National Bank —Ann Arbor as security for a note. On October 5, 1982, defendant Shefman, the bank’s attorney, filed suit on behalf of the bank in Washtenaw Circuit Court against the Reynoldses and the Kauffmans jointly and severally, alleging that the Reynoldses had defaulted on the note. The suit requested the circuit court to determine the Kauffmans’ interest in the subject property in the context of the alleged default. The suit was dismissed with prejudice by stipulation of counsel on November 30, 1982, after the Reynoldses cured the default.
On June 23, 1983, Shefman filed a second suit against the Reynoldses and the Kauffmans on behalf of the bank, alleging a second default by the Reynoldses on the note. A notice of lis pendens was filed on the subject property in connection with the second suit. Although there are no allegations in the malicious prosecution complaint regarding the termination of the second suit, there is some indication in the record that it was dismissed, apparently for lack of progress and without prejudice.
On June 26, 1985, the Kauffmans filed the instant complaint, alleging malicious prosecution against Shefman, the bank and its vice-president, Dennis Larson. In their complaint, the Kauffmans alleged the following injuries:
17. That at the time the second lawsuit was filed, a notice of lis pendens against the plaintiffs’ property was also filed, and on knowledge and belief recorded with the Register of Deeds.
26. That as a direct and proximate result of the malicious civil prosecution by these defendants, plaintiffs suffered special and consequential damages including but not limited to interference with their persons and property rights, costs and attorney fees, damage to their credit rating and reputation in the community, physical injury, mental anguish, embarrassment, and humiliation.
The circuit court granted Shefman’s motion for summary disposition pursuant to MCR 2.116(C)(8), on the ground that the Kauffmans’ complaint failed to allege a special injury. This appeal followed. The Kauffmans assert that the filing of notice of lis pendens in the second suit constitutes the element of special injury required to sustain a claim for malicious prosecution. Moreover, the Kauffmans assert that the institution of successive suits in itself constitutes a special injury.
A motion for summary disposition under MCR 2.116(C)(8) will be granted only where the claim is unenforceable as a matter of law. Because such a motion tests the legal basis of the complaint, its factual allegations are taken as true, along with any reasonable inferences or conclusions which may be drawn from them. Rathbun v Starr Commonwealth for Boys, 145 Mich App 303, 307; 377 NW2d 872 (1985), lv den 424 Mich 908 (1986); Local 80 Sheet Metal Workers v Tishman Construction Corp, 103 Mich App 784, 787; 303 NW2d 893 (1981).
To survive a motion for summary disposition under MCR 2.116(C)(8), the Kauffmans’ complaint must allege facts to support all of the elements of a malicious prosecution action. Those elements are:
1. Prior proceedings terminated in favor of the present plaintiff;
2. Absence of probable cause for those proceedings;
3. Malice, defined as a purpose other than that of securing the proper adjudication of the claim; and
4. A special injury that flows directly from the prior proceedings.
Young v Motor City Apartments Ltd, 133 Mich App 671, 675; 350 NW2d 790 (1984).
We agree with the circuit court’s ruling that plaintiffs’ complaint is defective in its failure to allege the element of special injury. Neither the filing of the notice of lis pendens on the subject property nor the institution of these two lawsuits against the Kauffmans caused the type of special injury required to sustain a claim for malicious prosecution in Michigan.
In Friedman v Dozorc, 412 Mich 1, 33-34; 312 NW2d 585 (1981), our Supreme Court declared that Michigan follows the so-called "English rule” with respect to the special injury requirement in a malicious prosecution action. This restrictive rule allows a malicious prosecution action only where one of three types of injury has been sustained, namely, injury to fame, injury to person or liberty, or injury to property. Although the Court in Friedman declined to define precisely the boundaries of the special injury concept, it stated its intent to use this requirement as a means of limiting the availability of a malicious prosecution action.
We are persuaded that the special injury requirement should be retained to limit the circumstances in which an action for the malicious prosecution of civil proceedings can be maintained.
The cure for an excess of litigation is not more litigation. Meritorious as well as frivolous claims are likely to be deterred. There are sure to be those who would use the courts and such an expanded tort remedy as a retaliatory or punitive device without regard to the likelihood of recovery or who would seek a means of recovering the actual costs of defending the first action without regard to whether it was truly vexatious. [412 Mich 42, 46.]
In deciding Friedman, our Supreme Court was guided by its opinion in Brand v Hinchman, 68 Mich 590; 36 NW 664 (1888). This latter malicious prosecution action arose from an attachment obtained by the defendant against the plaintiffs’ property. When officers entered the plaintiffs’ store to execute the writ of attachment, plaintiffs told them that the debt underlying the attachment had been settled and requested the officers to wait until the defendant could be contacted before executing the writ. The officers remained for a least half an hour at the store until defendant’s employee arrived to inform the officers that the claim had been settled. The officers left plaintiffs’ store without serving the writ or levying on plaintiffs’ property. The officer charged with executing the writ testified that he would have prevented the plaintiffs from selling anything in the store until the arrival of defendant’s employee. The Brand Court held that an action for malicious prosecution would lie because plaintiffs’ property had been subjected to "a technical taking and possession.” 68 Mich 596.
In interpreting Brand, the Friedman Court was careful to point out that the technical or constructive nature of the seizure of plaintiffs’ property did not eliminate the essential element of seizure from a claim for malicious prosecution. 412 Mich 37. The Court observed that plaintiffs alleging malicious prosecution in Michigan have been required to show "some special injury equivalent to a seizure of property as a result of the defendant’s institution of civil proceedings.” 412 Mich 39-41.
The instant case involving a lis pendens is different from the Brand case. While the Brand plaintiffs were prevented from selling property in their store by the physical presence of the officers, the filing of notice of lis pendens did not interfere with the Kauffmans’ possession of the subject property. Their complaint does not allege that they attempted to convey the property during the relevant time period; but even had they done so, the lis pendens would not have prevented the conveyance. While a notice of lis pendens may, as a practical matter, inhibit the alienation of the property in that it warns prospective purchasers that they take subject to the judgment rendered in litigation concerning the property, Backowski v Solecki, 112 Mich App 401, 412; 316 NW2d 434 (1982), the lis pendens does not prohibit alienation. As the learned trial judge pointed out in his well-crafted opinion, the "damage” caused plaintiffs by the filing of the lis pendens is exactly the kind of damage which would ordinarily result from a foreclosure action. Moreover, the filing of a lis pendens in this case was not damage caused by the bank’s suit against plaintiffs. Had the bank not joined plaintiffs as defendants in the foreclosure suits, a notice of lis pendens would have been filed against the property anyway since those suits sought to determine the rights of other parties to the property.
Notice of lis pendens serves an important public purpose by protecting the right to litigation involving real property and protecting prospective purchasers by apprising them of disputes regarding rights in the land. These policies should not be thwarted by allowing the filing of a notice of lis pendens by an ultimately unsuccessful litigant to constitute grounds for a malicious prosecution action. Such a result would be contrary to the policy announced by our Supreme Court in Friedman: to refrain from intimidating those seeking to adjudicate their claims in the courts. Accordingly, we hold that the filing of a notice of lis pendens in this case is not equivalent to a seizure of property for purposes of a malicious prosecution claim. See Nemanich v Long Grove Country Club Estates, Inc, 119 Ill App 2d 169; 255 NE2d 466 (1970), in which the Illinois court reached the same conclusion.
Defendant Shefman asserts that the Kauffmans have not preserved for appeal the issue whether the multiplicity of lawsuits in this case amounts to a special injury. This Court generally does not review even a meritorious claim which was not raised in the trial court. MGM Brakes Division v Uni-Bond, Inc, 111 Mich App 467, 475; 315 NW2d 170 (1981). Here, however, the Kauffmans raised the question of the effect of multiple lawsuits in their answer to Shefman’s amended motion for summary disposition filed after the hearing on the motion. Although the circuit court opinion does not address this issue, we deem it preserved for appeal.
The Kauffmans’ argument that they suffered special injury by having to defend successive lawsuits is based on Soffos v Eaton, 80 US App DC 306; 152 F2d 682 (1945). The malicious prosecution defendant in Soffos had leased an apartment to plaintiff and unsuccessfully sued her for its possession after he was forced to reduce the rent under an emergency rent act. Defendant then brought a second suit for nuisance, which was likewise decided in favor of plaintiff. The third and fourth suits for possession were instituted against plaintiff by the defendant’s daughter who had "purchased” the property from her father. The third suit was dismissed and the fourth was decided in favor of the plaintiff. In finding in the plaintiff’s malicious prosecution action that the succession of suits constituted special injury, the court held:
The burden of being compelled to defend successive unconscionable suits is not one which would "necessarily result in all suits prosecuted to recover for like causes of action.” The burden increases in more than arithmetical proportion. . . . [Successive suits may even wear a defendant down to the point of capitulation. We see no good reason why the law should tolerate repeated abuse of its processes. To allow redress for such abuse will not seriously hamper the honest assertion of supposed rights. No one is likely to be deterred from litigating an honest claim by fear that some future jury may erroneously decide that he has brought two suits maliciously and without probable cause. We hold accordingly that one who twice sues another maliciously and without probable cause is responsible to him in damages. [80 US App DC 307.]
The courts of this state have never considered the issue whether a succession of lawsuits in and of itself can constitute a special injury for purposes of a malicious prosecution action. Our Su preme Court’s decision in Friedman, supra, recognizes that a special injury may arise from intrusions upon one’s person as well as property. 412 Mich 33-34. However, application of the principles articulated in Friedman is difficult in cases involving injury to persons because the Court described the scope of the special injury requirement in terms of property. This Court’s opinion in Barnard v Hartman, 130 Mich App 692; 344 NW2d 53 (1983), is more helpful in determining whether a succession of suits may amount to a special injury.
The Barnard case involved the dismissal of a court reporter’s suit for malicious prosecution. The suit arose from a prior action against the court reporter for allegedly preparing a false and misleading transcript. The trial court found the allegation of damage to the reporter’s professional reputation as a result of the prior action insufficient to establish a special injury. This Court upheld the dismissal of the suit, stating a rule similar to the one articulated in Soffos, supra, that a malicious prosecution plaintiff must suffer "some injury which would not necessarily occur in all suits prosecuted for similar causes of action.” 130 Mich App 695. See also Chrysler Corp v Fedders Corp, 540 F Supp 706, 720 (SD NY, 1982).
Applying the rule set forth in Barnard to the issue before us, we hold that under some circumstances a succession of suits can in and of itself result in injury which would not necessarily occur in similar litigation. A party who reasonably expects to have obtained his peace with another from the outcome of an initial lawsuit brought by the other suffers a special injury where he is forced a second time to litigate the same dispute, or another dispute contrived for some improper purpose. See 3 Restatement Torts, 2d, § 679, p 466. The normal result of a lawsuit is the resolution of the issues between the parties. Where a party does not accept that resolution and uses legal proceedings to harass another, he imposes on the other a burden greater than that normally flowing from such proceedings. Moreover, the party instituting a succession of improper lawsuits does so in contravention of the policy to limit litigation expressed in Friedman, supra. Recognizing that a succession of suits might constitute a special injury in limited instances will act in furtherance of this policy.
However, we stress that a mere succession of suits is not enough to amount to special injury absent a reasonable expectation by the malicious prosecution plaintiff that the first suit would end the controversy between the parties. If it were, a party who had committed multiple actionable offenses would have too easy a means of retribution against the offended party who rightfully turns to the courts for recourse. To establish a special injury, the succession of suits must defeat the reasonable expectations of peace generated by the termination of the first suit. Moreover, before the succession of suits may amount to a special injury, each individual suit must satisfy the remaining three elements of the tort of malicious prosecution, namely, termination favorable to the malicious prosecution plaintiff, malice, and lack of probable cause. This is necessary to avoid the risk of allowing recovery for malicious prosecution of an action which, although unsuccessful, was brought in good faith, or which might later be found meritorious in another court. See Brand, supra at 598; Friedman, supra at 48.
Applying the foregoing principles to the instant case, we find that the succession of suits alleged by the Kauffmans does not amount to a special injury. First, the Kauffmans had no reasonable ex pectation that the dismissal of the first lawsuit would definitively resolve the issues between them and the bank. The settlement of the first lawsuit made no determination of the Kauffmans’ interest in the subject property as the bank’s suit requested. The first lawsuit was dismissed when the Reynoldses cured their default; the Kauffmans had no reasonable expectation that the Reynoldses would not default a second time. Moreover, the two defaults by the Reynoldses were two separate causes of action, Shelton v Wilson, 274 Mich 433, 436; 264 NW 854 (1936), and there is no allegation in the complaint that the bank instituted the two suits for any purpose other than enforcing the Reynoldses’ obligation to it.
The Kauffmans’ complaint also contains no allegation regarding the termination of the second suit. Moreover, the dismissal of the first suit with prejudice by stipulation of counsel was not a termination favorable to the Kauffmans for purposes of satisfying that element of the tort of malicious prosecution. In Brand, supra, our Supreme Court stated the general rule that a knowing adjustment, compromise, settlement or payment of a claim is a bar to a malicious prosecution action. The Court stated the reasoning for the general rule as follows:
When the action complained of is the beginning or prosecution of a criminal suit or proceeding it is properly held, by all the authorities, that the determination of such suit or proceeding must be such as does not admit a reasonable cause for the prosecution. There must be an acquittal, or such proceedings as determine the case in the favor of the accused person without any settlement by him of the criminal charges, or any connivance on his part to secure his discharge. This is also the general rule where a groundless and malicious civil suit constitutes the cause of action. Were the rule otherwise, the defendant in the action complained of might recover in an action for malicious prosecution, and yet be convicted, or have a judgment rendered against him, in the former suit. [68 Mich 598.]
See also Cascarella v National Grocer Co, 151 Mich 15; 114 NW 857 (1908).
Because the dismissal of the first lawsuit in the instant case was with prejudice only in the context of the Reynoldses’ claimed default and not as to later defaults, and did not determine the Kauffmans’ interest in the subject property vis-á-vis the bank, the dismissal did not operate as a termination in their favor. In the absence of a favorable termination of the two prior lawsuits, and absent a reasonable expectation on the part of plaintiffs that dismissal of the first suit definitively resolved the issues between them and the bank, we hold that the succession of lawsuits in this case was insufficient to constitute a special injury for purposes of a malicious prosecution action.
Affirmed.
As a favorable termination is a separate element of the tort, we note that this shortcoming is in itself fatal to the complaint. Because the record is not clear as to how or when the second suit was terminated, it is uncertain whether this defect could be cured by amendment under MCR 2.116(I)(5). In any case, our ruling on the special injury requirement would make such amendment futile.
The Kauffmans concede in their brief on appeal that an independent claim for malicious prosecution of the first suit may be barred by the statute of limitations, but maintain that the first suit was part of a continuing tort which rendered subsequent suits actionable. Because of our ruling that successive suits do not constitute special injury in this case, we find no need to áddress this issue.
Defendant Shefman asserts on appeal that the Kauffmans have not sufficiently alleged the issues of probable cause and malice. Because of our ruling on the special injury issue, we need not address these questions.
We decline to follow Chappelle v Gross, 26 App Div 2d 340; 274 NYS2d 555 (1966); and Schierloh v Kelly, 253 App Div 373; 2 NYS2d 188 (1938), cited by the Kauffmans. These cases state the New York rule that use of a statutorily defined provisional remedy (including lis pendens) satisfies the special injury requirement. Michigan law has no such decisional or statutory counterparts. | [
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G. S. Allen, J.
Plaintiff Sara Paútelas appeals as of right from the March 6, 1987, order of the Oakland Circuit Court which granted summary disposition in favor of defendant Montgomery Ward & Company, Inc., pursuant to MCR 2.116(0(10). The underlying action involved a claim under the Michigan pricing and advertising act (paa). MCL 445.351 et seq.; MSA 19.853(11) et seq. We affirm.
The facts of this case are not in dispute. On July 1, 1984, defendant placed an advertisement in the Detroit News and the Detroit Free Press which indicated that, among other items, a Wagner power painter and a Wagner power roller would be on sale for $79.99 each. The regular price for each item was $119.99. The advertisement for the subject items did not indicate any limitations of the quantity available, nor the quantity of units actually in stock. On July 4, 1984, plaintiff and her husband went to defendant’s Southfield, Michigan, store for the specific purpose of purchasing the two Wagner products. Plaintiff was informed by the sales clerk that the items were out of stock and a "rain check” was issued to plaintiff for each item. On April 3, 1985, 273 days later, plaintiff was informed by way of a post card that the items were available for her purchase.
At the trial level both parties agreed that plaintiff suffered no out-of-pocket or monetary loss because of defendant’s delay in providing the goods; only "total aggravation.” Indeed, in the interval, plaintiff decided against painting some of the structures for which she was going to purchase the Wagner products. Plaintiff did have to do some painting by hand for which she had planned on using the Wagner items. However, it is disputed whether she did this painting within ninety days from the issuance of the rain checks.
At the motion for summary disposition plaintiff argued that under the terms of the paa she does not have to prove any damages, and that she is entitled to $250 for each day that the Wagner items were not available for her purchase. Defendant, on the other hand, argued that plaintiff must prove some loss other than personal frustration.
The court ruled from the bench that defendant had clearly violated the statute, in that they did not provide the advertised items for purchase by plaintiff within the ninety-day period required by statute MCL 445.355; MSA 19.853(15). However, the court granted defendant’s motion for summary disposition on the ground that plaintiff had failed to prove any loss from defendant’s violation of the statute, as required by § 10 of the paa. We agree with the court’s ruling.
Section 10 of the paa provides in part:
(2) ... A person who suffers loss as a result of a violation of this act may bring an individual or a class action to recover actual damages or $250.00, whichever is greater, for each day on which violations of this act have been found together with reasonable attorneys’ fees not to exceed $300.00 in an individual action. [MCL 445.360(2); MSA 19.853(20)(2).]
In Mayhall v A H Pond Co, Inc, 129 Mich App 178; 341 NW2d 268 (1983), this Court interpreted the above section and determined that plaintiff must suffer a loss as a result of the statutory violation before recovery is allowed. In determining the exact nature of the loss necessary before recovery is allowed, the panel examined the common law which gave rise to the statutory enactment. Accordingly, the Mayhall Court held that common-law principles of fraud apply to the paa. Mayhall, supra, pp 182-183.
Michigan courts have had occasion to consider what constitutes an injury in an action for fraud. The cases indicate that actionable fraud is not limited solely to pecuniary losses or injury to the plaintiffs pocketbook. Mayhall, supra, p 183. Instead, the injury may consist of the plaintiffs unfulfilled expectations. Id.
In Mayhall, plaintiff purchased a diamond which had been represented as "perfect.” As it turned out, the diamond was flawed. In determining the appropriate damages, the court stated that plaintiff could recover the difference between the actual value of the property when the contract was made and the value that it would have possessed if the representations had been true.
Here, plaintiff has clearly not shown any out-of-pocket or pecuniary losses associated with defendant’s delay in supplying plaintiff with the Wagner products. Rather, plaintiff contends that she is entitled to damages due to her aggravation. We do not agree. It is true that this Court in Mayhall, supra, extended recovery to a plaintiff’s lost expectation. However, generally, fraud is an economic tort and protects only pecuniary losses. 3 Restatement, Torts, 2d §549, pp 108-117. We believe Mayhall, supra, marks the outer limit for recovery under the statute. Moreover, should plaintiff in the instant case be allowed recovery we have no way to measure damages. Damages in Mayhall were calculable as the difference between plaintiffs expectations and the goods actually received.
Rulings in other jurisdictions support our con elusion that plaintiff has suffered no loss which is recoverable under common-law principles of fraud. In Walsh v Ingersoll- Rand Co, 656 F2d 367 (CA 8, 1981), a panel of the Eighth Circuit ruled that a party’s mental anguish and humiliation were not recoverable as damages under an action for fraud. Accord, Harsche v Czyz, 157 Neb 699; 61 NW2d 265 (1953). Likewise, plaintiff’s total aggravation or mental anguish which she suffered as a result of waiting for the Wagner paint products is not a recoverable damage under the common-law tort of fraud. Since fraud is a basis for Michigan’s pricing and advertising act and we are instructed to construe the act with reference to this common-law tort, we find that the trial court properly granted summary disposition as plaintiff suffered no loss as used in § 10 of the paa.
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Per Curiam.
Plaintiff appeals as of right from a February 2, 1987, order granting defendant’s motion for summary disposition pursuant to MCR 2.116(C)(8) and dismissing plaintiff’s complaint. We reverse.
On or about July 10, 1978, plaintiff was riding a bicycle on the shoulder of Telegraph Road in Dearborn Heights. Plaintiff allegedly hit a rock, hole, rut or other "defective area” in the shoulder which caused plaintiff to lose control of the bicycle and collide with a garbage truck.
Plaintiff instituted the instant negligence action against defendant claiming that defendant failed to properly maintain, repair and inspect the shoulder, and that defendant failed to warn plaintiff of the shoulder’s dangerous condition. Defendant moved for summary disposition under MCR 2.116(C)(8), claiming that plaintiff failed to state a claim upon which relief could be granted as defendant owed no duty to bicyclists. The trial court granted defendant’s motion, finding that plaintiff used the shoulder improperly, that a bicycle is not a "vehicle” as defined by the Michigan Vehicle Code, that a bicyclist who rides on the shoulder should be considered a pedestrian, and that the relevant governmental immunity statute should be strictly construed.
MCL 691.1402; MSA 3.996(102) in part provides:
Each governmental agency having jurisdiction over any highway shall maintain the highway in reasonable repair so that it is reasonably safe and convenient for public travel. Any person sustaining bodily injury or damage to his property by reason of failure of any governmental agency to keep any highway under its jurisdiction in reasonable repair, and in condition reasonably safe and fit for travel, may recover the damages suffered by him from such governmental agency. The liability, procedure and remedy as to county roads under the jurisdiction of a county road commission shall be as provided in section 21, chapter 4 of Act No. 283 of the Public Acts of 1909, as amended, being section 224.21 of the Compiled Laws of 1948. The duty of the state and the county road commissions to repair and maintain highways, and the liability therefor, shall extend only to the improved portion of the highway designed for vehicular travel and shall not include sidewalks, crosswalks or any other installation outside of the improved portion of the highway designed for vehicular travel.
Defendant argues that the duty to maintain the improved portion of the highway reasonably safe and fit for vehicular travel under this statute does not extend to bicycle travel. Plaintiff argues that defendant’s duty under this statute is dependent upon the location at which the traveler is injured, not his mode of transportation. We agree with plaintiff.
In Roy v Dep’t of Transportation, 428 Mich 330; 408 NW2d 783 (1987), our Supreme Court found that defendant did not have a duty to maintain the bicycle path upon which plaintiff bicyclist was injured. Roy involved a detached bicycle path which ran parallel to a roadway. The Court reasoned that bicycle paths are not designed for vehicular travel since bicycles are not vehicles. Thus, the defective highways exception to governmental immunity, MCL 691.1402; MSA 3.996(102), does not apply to bicycle paths since that exception does not apply to an "installation outside of the improved portion of the highway designed for vehicular travel.” Roy, supra at 340. In reaching its holding the Court appeared concerned only that plaintiff was injured on a bicycle path, and not that he was a bicyclist. In fact, the Court stated that the criterion utilized by the Legislature in imposing this duty on defendant "was not based on the class of travelers, but the road on which they travel.” Roy, supra at 341. The statute itself states that "any person sustaining bodily injury or damage to his property” (emphasis added) may recover if the injury or damage occurs as the result of defendant’s failure to perform its duty to repair and maintain the improved portion of the highway designed for vehicular travel. Thus, defendant’s attempt to restrict recovery to "motorists” injured while on a portion of the highway designed for vehicular travel is untenable. In addition, plaintiff’s position is supported by cases dealing with municipal liability. "The reference to public travel contained in [MCL 242.3; MSA 9.593 concerning the duty of townships, villages, cities and corporations] is not a restriction upon the persons to whom the duty is owed but, rather, defines the standard by which the duty is measured: 'to keep in reasonable repair, so that they shall be reasonably safe and convenient for public travel.’ ” Mechay v Detroit, 364 Mich 576, 578; 111 NW2d 820 (1961). A municipality is liable to any person who is injured by the municipality’s breach of its statutory duty. Mechay, supra, and Michonski v Detroit, 162 Mich App 485; 413 NW2d 438 (1987).
In the instant case plaintiff alleged injuries resulting from defendant’s failure to maintain and repair the shoulder of the highway. Thus, because shoulders of a highway are considered part of the improved portion of the highway and therefore subject to defendant’s duty of maintenance and repair, McKee v Dep’t of Transportation, 132 Mich App 714; 349 NW2d 798 (1984), the trial court erred in granting defendant’s motion and dismissing plaintiff’s case.
We express no opinion as to the merits of plaintiff’s claim, but note that on remand the appropriate standard of care shall be based on defendant’s duty to maintain and repair the shoulder for vehicular travel. Thus the alleged defect must be unreasonably dangerous to a vehicle, not a bicycle.
Reversed and remanded. | [
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Per Curiam.
Defendant appeals as of right from a judgment of the Court of Claims in favor of plaintiff in the amount of $42,733 for breach of an implied contract. The breach arose out of the failure of defendant to inform plaintiff, after a Uniform Commercial Code filing search, of the existence of a prior secured party’s interest in inventory in which plaintiff took a subsequent security interest. We affirm.
The facts are not in dispute. Plaintiff is a finance company engaged in, among other activities, the financing of inventory purchased by appliance and furniture dealers. In this capacity, plain tiff and the Anmar Corporation, doing business as the New Ralston of Lansing, entered into an agreement whereby plaintiff agreed to finance An-mar’s purchase of inventory in exchange for An-mar’s grant of a security interest in that inventory.
Prior to providing Anmar with the necessary financing, plaintiff requested by mail a Uniform Commercial Code filing search from defendant. Plaintiff made this request on March 6, 1981. Defendant performed the search and mailed its findings to plaintiff. Plaintiff paid a fee for defendant’s services.
Thereafter, plaintiff notified all parties appearing on the certificate supplied by defendant of its intent to acquire a purchase money security interest in the inventory purchased by Anmar. Plaintiff, however, did not notify Michigan National Bank — Dearborn because the certificate failed to disclose that mnb had filed notice of its security interest in Anmar’s inventory on November 26, 1980. Plaintiff proceeded to extend $42,733 in credit to Anmar.
Anmar subsequently defaulted on its obligation to mnb. The bank seized the inventory financed by plaintiff and turned it over to the United States Small Business Administration for sale to satisfy a debt Anmar owed to mnb that had been guaranteed by the Small Business Administration. An-mar’s debt to plaintiff remains unpaid.
In its amended complaint filed on October 9, 1985, plaintiff claimed $42,733 in damages as a result of a breach of “an implied contractual duty to furnish a search strictly in accordance with [plaintiff’s] request, and the certification.” Defendant argues that the amended complaint was merely an attempt to circumvent the effects of governmental tort immunity and, therefore, failed to state a cause of action. Spruytte v Dep’t of Corrections, 82 Mich App 145, 147; 266 NW2d 482 (1978). Defendant neglects to point out, however, that where a plaintiff specifically pleads and establishes a nontort cause of action, governmental immunity will not bar recovery simply because the underlying facts also could have established a tort cause of action. Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 647-648; 363 NW2d 641 (1984). We believe that plaintiff did successfully plead and establish a nontort cause of action.
The essential elements of a contract are parties competent to contract, a proper subject matter, legal consideration, mutuality of agreement and mutuality of obligation. Johnson v Douglas, 281 Mich 247; 274 NW 780 (1937). The elements requisite for the establishment of an implied contract are identical. The only difference is the character of the evidence necessary to establish the contract. Van Rensselaer v General Motors Corp, 223 F Supp 323, 329 (ED Mich, 1962), aff'd 324 F2d 354 (CA 6, 1963), cert den 377 US 959 (1964), reh den 379 US 874 (1964), reh den 379 US 951 (1964).
Defendant argues that plaintiffs contractual claim must fail due to a lack of bargained-for consideration. Defendant premises its argument on the preexisting duty rule. Green v Millman Brothers, Inc, 7 Mich App 450, 455; 151 NW2d 860 (1967), lv den 379 Mich 786 (1967). We note a growing doubt in the soundness of this doctrine. It should never be used as a major premise of a decision without careful thought to the circumstances of a particular case, to the moral postures of the parties, and to the social feelings and interests that are involved. 1A Corbin, Contracts, § 171, p 105. Upon careful consideration, we believe the doctrine to be inapplicable on the facts of the instant case.
1 Restatement Contracts, 2d, §71, p 172 provides:
(1) To constitute consideration, a performance or a return promise must be bargained for.
(2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.
Moreover, as explained in the Restatement:
In the typical bargain, the consideration and the promise bear a reciprocal relation of motive or inducement: the consideration induces the making of the promise and the promise induces the furnishing of the consideration. Here, as in the matter of mutual assent, the law is concerned with the external manifestation rather than the undisclosed mental state: it is enough that one party manifests an intention to induce the other’s response and to be induced by it and that the other responds in accordance with the inducement. [Id., comment b, p 173.]
In the instant case, the obligation of defendant is controlled by statute. MCL 440.9407; MSA 19.9407 provides:
(1) If the person filing a financing statement, termination statement, statement of assignment, or statement of release, furnishes the filing officer a copy thereof, the filing officer shall upon request note upon the copy the file number and date and hour of the filing of the original and deliver or send the copy to the person.
(2) Upon request of any person, the filing officer shall issue his certificate showing whether there is on file on the date and hour stated therein, any presently effective financing statement naming a particular debtor and any statement of assignment thereof and if there is, giving the date and hour of filing of each such statement and the names and addresses of each secured party therein. The uniform fee for a certificate shall be $3.00 if the request for the certificate is in the standard form prescribed by the secretary of state and otherwise shall be $6.00. Upon request the filing officer shall furnish a copy of a filed financing statement or statement of assignment for a uniform fee of $1.00 per page. The secretary of state shall charge an additional fee of $25.00 if a person requests expediting of the regular search process. The secretary of state shall promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws, to define what constitutes expediting of the regular search process.
From the plain language of the statute, defendant is obligated to perform a search and issue a certificate in exchange for a fee. The amount of the fee varies, in part, based on the costs incurred by defendant in securing the information sought. The statute does not contain a provision allowing for waiver of the fee. Moreover, as testimony of one of defendant’s employees revealed, when the fee to be charged exceeds $100, defendant contacts the party requesting the search to secure assurances of fee payment. We, therefore, conclude that defendant’s performance was induced by plaintiff’s promise to pay a fee. Consideration was not lacking.
Defendant also argues that plaintiff’s contract claim must fail for lack of mutual assent. We disagree.
Mutual assent exists where each party either makes a promise or begins or renders performance. 1 Restatement Contracts, 2d, § 18, p 53. In the instant case, defendant promised to conduct a search and issue a certificate. Plaintiff promised to pay defendant for the search and the certificate. Both parties performed as promised. Therefore, we find that the parties’ actions manifested mutual assent.
Finally, defendant argues that the trial court’s finding that a contractual relationship existed between the parties was unsupported by the proofs offered at trial. On our review of the proofs, we cannot conclude that the trial court’s finding was clearly erroneous. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976).
Affirmed.
J. A. Gillis, J., did not participate. | [
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Per Curiam.
On June 7, 1984, the Workers’ Compensation Appeal Board affirmed the decision of the hearing referee awarding plaintiff benefits for a psychiatric injury. Defendants appealed by leave granted and this Court vacated the decision of the wcab and remanded to the wcab for further proceedings consistent with our opinion, Murdock v Michigan Health Maintenance Organization, 151 Mich App 578, 584; 391 NW2d 757 (1986). On remand, the wcab reaffirmed its original award to plaintiff. Defendants again appeal by leave granted and we again vacate the award.
The underlying facts of this dispute were sufficiently set forth in the original opinion and need not be repeated here. In the original appeal, this Court reversed the wcab, concluding that the wcab had applied an incorrect rule concerning notice of the injury, had incorrectly applied the definition of disability, the wcab having found that the plaintiff was unable to return to work for defendant Michigan Health Maintenance Organization (hmo) rather than being unable to obtain employment in any setting, and had improperly excluded evidence of a copy of a civil rights complaint plaintiff had filed in circuit court. This Court directed the wcab on remand to make further findings of fact and conclusions of law.
On remand, the wcab found that defendant hmo had notice of plaintiffs injury and, therefore, is not entitled to a lack of notice defense, that plaintiff does suffer from a disability in that she is unable to return to any form of suitable work, and that the previously excluded evidence has no appreciable weight in this case. On appeal, defendant hmo first argues that the wcab failed to apply the rule of law regarding notice, which it had been instructed to do by this Court on the original appeal, and that, even if the board applied the proper rule, there is no competent evidence in the record to support the board’s finding that defendant hmo had the requisite notice to require a report of a psychiatric injury to the Department of Labor. We agree with defendant hmo.
In the original appeal, this Court held that the wcab erred in finding that plaintiff’s supervisor, Sam Hawkins, had notice of plaintiff’s injury. This Court stated that the record "conclusively establishes that Hawkins did not know, or have reason to know, that plaintiff was injured.” Murdock, supra at 582. Rather than merely reversing the wcab in the first appeal, this Court remanded the matter to the board for further fact-finding on the issue whether any other person associated with defendant hmo, particularly W. Melvin Smith, received the requisite notice. Id. at 582-583. On remand, the board held as follows:
We conclude that the combined knowledge by defendant’s corporate executives of plaintiffs pattern of behavior, including previous medical memoranda and notices of suspension, eventuating in her dismissal, justifies a conclusive inference of defendant’s being placed on notice of plaintiffs psychiatric injury. See Johnson v DePree Co, 134 Mich App 709, 714-715 [352 NW2d 303] (1984); Ratliff v General Motors Corp, 127 Mich App 410, 420-422 [339 NW2d 196] (1983).
The board’s findings regarding the notice issue are nebulous to say the least. The fact that because an employee has acted in a bizarre fashion is, perhaps, evidence that the employee is suffering from some psychiatric infirmity; it is not, however, as this Court has already held, evidence that this psychiatric problem is work related. As this Court declared in the previous appeal, an employer is required to report an injury to the Department of Labor only if the circumstances surrounding an employee’s injury indicate the possibility of a work-related cause. Id. at 582.
Furthermore, what the board contends was evidence which defendant hmo’s executive staff should have construed, collectively, as establishing the existence of an injury is nothing more than evidence already known to Sam Hawkins, which this Court has held did not constitute evidence that plaintiff was injured. It is one thing to suggest that plaintiff is psychiatrically unbalanced; it is another thing to suggest that this is the result of some workplace injury. It may be merely the symptoms of a preexisting psychosis, or deterioration of some congenital condition, neither of which would constitute a work-related injury. Of overriding importance, however, is the fact that the evidence to which the board points as being evidence that the other members of defendant hmo’s organization were aware, thus in the board’s opinion placing defendant hmo on notice of the injury, was evidence already in the possession of Hawkins. This Court originally ruled that that evidence was insufficient to establish a psychiatric injury by plaintiff. On the original remand, this Court did not indicate that it was necessary for the board to find that individuals other than Hawkins knew the same information which Hawkins possessed, but, rather, this Court sought a determination whether other individuals associated with defendant hmo possessed information which was not shared with Hawkins. Since the board failed to make such a finding, the board failed to apply properly the original opinion of this Court.
The present situation should be contrasted, rather than compared, with the authorities cited by the appeal board regarding notice. In Johnson v DePree Co, 134 Mich App 709, 714-715; 352 NW2d 303 (1984), this Court held that a letter of resignation which stated that "for reasons of health I am terminating my employment” constituted notice of injury. In the case at bar, plaintiff did not terminate her employment; she was forced to resign against her wishes, and immediately commenced efforts to regain her job, which included sending a telegram to defendant hmo’s board of directors requesting reinstatement. It seems anomalous to assert that a person who has been terminated from employment against her will, and who has protested the termination by petitioning the board of directors for reinstatement, can be deemed to have left the employer with the impression that she has suffered a work-related injury which precludes continued employment. Similarly, in Ratliff v General Motors Corp, 127 Mich App 410; 339 NW2d 196 (1983), the employee called in sick on her last day of work, saying she could not continue, and thereafter received sickness and accident benefits from the defendant’s group insurer. Again, in the present case, plaintiff reported for work after her alleged injury and, as already indicated, gave no indication that she was ill, nor is there any suggestion that plaintiff has ever received sickness or accident benefits from defendant hmo directly, or through its group insurer.
All that defendant hmo had notice of was the deterioration of a personal, social relationship which, for this purpose, is not deemed work related. See Horvath v La Fond, 305 Mich 69; 8 NW2d 915 (1943); Slusher v Pontiac Fire Dep't 284 Mich 657; 280 NW 78 (1938). See also Brady v Clark Equipment Co, 400 Mich 806; 282 NW2d 921 (1977), reversing 72 Mich App 274; 249 NW2d 388 (1976).
Next, we turn to the question whether the board correctly concluded that plaintiff suffered from a disability entitling her to benefits. In the original appeal, this Court concluded that the board applied an incorrect rule of law by finding plaintiff disabled on the basis that she was unable to return to work for defendant hmo; the board failed to make a finding relative to plaintiff’s ability to obtain employment within another setting within her general field of employment, thus necessitating this Court to direct the board to consider this second alternative on remand. Murdock, supra at 583-584.
Assuming, arguendo, that plaintiff did give appropriate notice to defendant hmo, thereby surviving the statute of limitations defense, then unquestionably the board had sufficient competent evidence in the record to justify an awárd of disability benefits under the appropriate legal standard. However, and of overriding importance, the board failed to apply properly the principles of equitable estoppel regarding the factual claims plaintiff made in her circuit court suit for sex discrimination, wherein she set forth her continued ability to perform the employment functions for which she was involuntarily discharged.
Where, in a separate proceeding, a litigant takes a position inconsistent with that which he advances in the case at issue, his pleadings, admissions, statements and stipulations in the former action are evidence which may be admitted against him in the case at issue. See Mertz v Mertz, 311 Mich 46; 18 NW2d 271 (1945); Billingsley v Gulick, 256 Mich 606; 240 NW 46 (1932). However, this evidence is not conclusive when the opposing party in the first action is not a party to the present suit. Smith v Battjes Fuel & Building Material Co, 204 Mich 9; 169 NW 943 (1918); see also Storey v Meijer, Inc, 160 Mich App 589; 408 NW2d 510 (1987). However, in the case at bar, since the defendant employer was a party defendant in the circuit court action brought by plaintiff, plaintiff’s admissions in the circuit court action can be raised by defendant hmo in the present action and plaintiff is collaterally estopped from denying the admissions and allegations she made in the circuit court action.
In her circuit court action, plaintiff sought reinstatement, thus indicating that she felt she was ready, willing and able to return to employment with defendant hmo. It is inconsistent for plaintiff to maintain in a circuit court suit that she can and should be reinstated to her job and to maintain a claim for disability benefits premised upon being disabled and unable to return to that job. The wcab erred in applying no weight to plaintiff’s position and admissions in the circuit court action because, as a matter of law, that evidence has conclusive weight, in accordance with principles of equitable estoppel, and, therefore, as a matter of law, this petition for disability benefits should have been dismissed on grounds of lack of proof of disability.
In seeking to avoid this obvious result, the wcab held that the evidentiary value of that complaint "could only apply to the standard of proof rejected by the Court’s remand opinion,” i.e., since it would prove only that plaintiff could return to her former employment, and this Court held that that was not the proper standard for determining whether plaintiff was disabled. Ergo, the wcab reasoned, it is, in an evidentiary sense, meaningless.
To the contrary, while the fact that a person cannot return to work for one particular employer does not equate with disability, it is no authority for holding that, where a person can return to work for his original employer in his original job, this does not prove the lack of disability. This is a familiar logical and grammatical fallacy. If a statement is true, its contrapositive is also true; however, its inverse and converse may or may not be true.
Here, the statement that being disabled from one’s previous, particular employment is not sufficient to establish disability from similar jobs for other employers for workers’ disability compensation benefit purposes is a true statement, as this Court held in its previous opinion. The issue addressed by the estoppel created by plaintiff’s circuit court complaint and her civil rights action, however, is not the contrapositive of the statement, but the converse. There is no necessary logical connection between the truth of a statement and the truth of a converse proposition. Thus, the wcab was incorrect in concluding that the evidentiary value of the complaint would only apply to the issue whether plaintiff could return to her former employment, thus rendering it meaningless on remand. That is, while the complaint may have no evidentiary value with respect to the question whether plaintiff could find comparable employment with a different employer, the complaint did have evidentiary value with respect to the question whether plaintiff could return to employment with defendant hmo. It is this evidentiary value which the wcab overlooked and chose to ignore.
Simply put, plaintiffs circuit court complaint estopped her from denying that she is able to return to employment with defendant hmo. Since she admits that she can return to employment with defendant hmo, she is not disabled. See Murdock, supra at 583. Since plaintiff is not disabled, she is not entitled to disability benefits.
For the reasons stated above, we conclude that the wcab erred as a matter of law in awarding disability benefits to plaintiff.
The award of benefits is vacated and the matter is remanded to the wcab with directions to enter an order in favor of defendants which dismisses plaintiff’s claim for benefits. We do not retain jurisdiction. Defendants may tax costs.
This is not to say that there was uncontroverted evidence of plaintiff’s disability. Rather, we merely conclude that plaintiff has presented competent evidence to support the board’s conclusions, which we must accept absent fraud. Murdock, supra at 581. However, as will be developed below, we will conclude that the issue of disability was controverted and, for equitable principles, the board was estopped from finding disability.
While plaintiff correctly points out that the wcab has no equitable powers, and therefore cannot grant equitable remedies, Auto-Owners Ins Co v Elchuk, 103 Mich App 542, 546; 303 NW2d 35 (1981), it can and must apply equitable principles, such as estoppel, where appropriate, Fuchs v General Motors Corp, 118 Mich App 547, 553; 325 NW2d 489 (1982).
As discussed above, this Court rejected as the standard of disability a determination whether the person can return to the same job with the original employer, accepting instead the standard as being whether the person can return to work in any suitable position. | [
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Per Curiam.
This appeal arises out of a complaint filed by plaintiff in the Wayne Circuit Court on March 21, 1985, to recover fire insurance proceeds allegedly due plaintiff by defendant, which insured plaintiff against fire loss and damage to his dwelling and its contents. On October 23, 1986, after the completion of a court-ordered appraisal, plaintiff filed a motion for summary disposition pursuant to MCR 2.116(C)(9) and (10). On November 4, 1986, defendant filed a motion for summary disposition pursuant to MCR 2.116(C)(8) and (10). On December 12, 1986, the Wayne Circuit Court denied defendant’s motion and granted plaintiff’s motion. An order granting plaintiff’s motion for summary disposition was entered January 26, 1987. Defendant appeals as of right from this order granting plaintiff’s motion for summary disposition.
Plaintiff’s house was damaged by fire on April 14, 1984. At the time the house was insured by defendant for $45,000 and the contents were insured for $22,500. Plaintiff filed a claim for policy proceeds. Defendant declined to pay plaintiff immediately. Plaintiff retained counsel to represent his interests. Counsel submitted plaintiffs demands and in due course filed suit.
On October 18, 1984, plaintiffs counsel sent a letter to defendant’s claims department requesting an explanation for defendant’s delay in paying plaintiff his insurance proceeds. Defendant responded that plaintiff had not yet provided defendant with repair estimates or a list of the personal property destroyed in the fire. On December 3, 1984, counsel sent defendant the inventory plaintiff prepared of the personal property he lost in the fire. After a contractor was hired to estimate the cost of repairing plaintiff’s home his attorney sent demand letters to defendant requesting the full policy limits of coverages on both the home and the contents. Defendant rejected the demands and the plaintiff filed his complaint in the Wayne Circuit Court. Subsequently the Wayne Circuit judge appointed an appraiser and each party appointed its appraiser. The appraisers agreed on the actual cash value of plaintiffs dwelling very close to the policy limits, but as to plaintiff’s personal property the appraisal was considerably less, $3,315 on a personal property limitation of $22,500. This prompted defendant to file a motion to amend its affirmative defenses to allege fraud and false swearing as to the personal property portion of plaintiff’s claim. Motions for summary disposition were presented by each party and after argument the trial judge denied defendant’s motion and granted plaintiff’s motion awarding $46,434.59, the amount of the appraisal award.
Defendant claims the trial court erred in granting plaintiffs motion for summary disposition because plaintiff had claimed an excessive value for his lost personal property and that it is an issue of fact whether that excessive claim constituted a fraud. We affirm.
The fire insurance policy in question is a standard fire policy as prescribed by statute, the terms of which are mandatory under the Michigan Insurance Code, MCL 500.2832; MSA 24.12832. The code provides the appraisal procedure as a substitute for judicial determination of a dispute concerning the amount of a loss. Thermo-Plastics R & D Inc v General Accident Fire & Life Assurance Corp, Ltd, 42 Mich App 418; 202 NW2d 703 (1972). This procedure has been described as a "simple and inexpensive method for the prompt adjustment and settlement of claims.” Shapiro v Patrons’ Mutual Fire Ins Co of Michigan, 219 Mich 581, 586; 189 NW 202 (1922).
An insurer’s defense of "false swearing” (fraudulent proof of loss) has been defined:
In 1 Clement on Fire Insurance, p. 276, Rule 3, the rule is stated as follows:
"Fraud or false swearing implies something more than mistake of fact or honest misstatements on part of assured. They may consist in knowingly and intentionally stating upon oath what is not true, or a statement of fact as true which the party does not know to be true, and which he has no reasonable ground of believing to be true.” [Campbell v Great Lakes Ins Co, 228 Mich 636, 638; 200 NW 457 (1924).]
Quoting 5 Joyce on Insurance, §3781, the Michigan Supreme Court noted:
It is not only necessary to prove that the swearing was false, but that it must also be proved that it was done willfully, knowingly, and with intent to defraud, for fraud cannot be established from the mere fact that the loss was less than was claimed in the preliminary proofs furnished, though such discrepancy may be evidence to aid in proving fraud in connection with the other facts necessary to be shown. [Campbell, supra, p 638.]
The exaggeration of the value of one’s property which is merely an opinion, a misstatement based on an erroneous estimate, an honest mistake or an innocent overvaluation, lacks the essential element of fraud and does not operate to allow the insurer to avoid the terms of the insurance policy. Campbell, supra, p 638. "Fraudulent procurement has all the normal fraud elements, while fraudulent proof of loss, also called 'false swearing’, does not have justifiable reliance as one of its elements.” Rayis v The Shelby Mutual Ins Co of Shelby, Ohio, 80 Mich App 387, 392; 264 NW2d 5 (1978), citing Campbell v Great Lakes Ins Co, supra.
Here, the court-appointed umpire and the separate appraisers selected by plaintiff and defendant, respectively, all signed an appraisal award setting damages under the policy at $46,434.59. Thus, finding no material issue of fact existed, the court granted plaintiffs motion for summary disposition and awarded a judgment in plaintiffs favor for the appraisal amount. The trial court did not err in granting plaintiffs motion for summary disposition.
The appraisal procedure is mandated by statute. Defendant’s representative to these proceedings agreed to the appraisal award. Plaintiff was entitled to summary disposition. Defendant’s argument that plaintiffs attorney’s demand for $22,500 for replacement of personal property constituted false swearing and that defendant was thus entitled to judgment as a matter of law is untenable.
Defendant’s claim is based on plaintiffs counsel’s letter of January 22, 1985. In this letter, counsel stated: "At present, we request Twenty-Two Thousand Five Hundred and no/100 ($22,500.00) Dollars in order to replace Mr. Foreman’s damaged personal property, pursuant to the limits of his personal property liability coverage.” Plaintiff did not swear to this demand under oath or in any way testify that $22,500 represented the actual value of his lost personal property. Whether the "request” for coverage limits is construed as an offer of settlement or an opening of negotiations, it cannot under any interpretation be construed as tantamount to false swearing as there was no swearing at all.
When asked at oral arguments why a sworn proof of loss or statement of claim had not been required of plaintiff by defendant insurance company, counsel responded:
The letter from the attorney was accepted as the claim and that happens from time to time that it may be, may well be treated as the claim on behalf of the parties.
Further, counsel stated there was no request for a sworn proof of loss. We conclude that defendant waived its requirement of a sworn proof of loss and that such a waiver is fatal to defendant’s claim of fraud. There was no swearing, false or otherwise.
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Per Curiam.
Following defendant’s plea of guilty in two separate cases to bank robbery, MCL 750.531; MSA 28.799, and armed robbery, MCL 750.529; MSA 28.797, defendant was sentenced to concurrent prison terms of from fifteen to forty years on each charged offense. Defendant appeals from his sentences as of right. We affirm.
On appeal defendant claims that the sentencing judge erred in calculating the sentencing guidelines recommended sentence. Specifically defendant claims error in the assessment of four points for offense variable one, "weapon: presence, type and use” and two points for offense variable six, "multiple victims.”
A sentencing judge has discretion in determining the number of points to be scored for any offense variables in the sentencing guidelines provided there is evidence on the record which adequately supports a particular score. People v Jannifer Williams, 147 Mich App 1; 382 NW2d 191 (1985). In the instant case defendant admitted to the use of a toy gun while committing the bank robberies. The sentencing guidelines robbery offense variable defines a firearm as "an operational or a non-operational firearm, or any instrument fashioned to reasonably appear to be a firearm.” Thus, as the evidence indicated that defendant pointed the firearm at a victim, the sentencing judge was within his discretion in assessing defendant four points under offense variable 1.
We also find no abuse of discretion in the sentencing judge’s assessment of two points for offense variable 6, multiple victims. We do not believe "victims” for purposes of this variable are limited to those from whom the defendant takes property. Here, in the event of police or other third party apprehension intervention, each individual in the bank at the time of the robbery was a victim subject to possible injury or death.
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Per Curiam.
Plaintiff, James U. Settles, filed this emergency appeal to challenge Wayne Circuit Judge Richard C. Kaufman’s June 21, 1988, order dismissing this action. In that decision, the circuit court refused to order an initiative removed from the August 2, 1988, primary ballot in the City of Detroit. The purported intent of the initiative is to place on the ballot an ordinance to bar "casino gambling” from the City of Detroit, including Belle Isle, in the event that casino gambling is approved by state law. For. the reasons stated in this opinion, we affirm the order of the circuit court refusing mandamus or an injunction to bar the issue from the ballot.
Intervening defendant, Citizens for Detroit’s Future, circulated initiative petitions seeking passage of an ordinance. The petitions contained the following language:
We, the undersigned, want to vote on the ISSUE OF CASINO GAMBLING AND BEING DULY REGISTERED VOTERS RESIDING IN THE CITY OF DETROIT, MICHIGAN, DUE [sic] HEREBY PETITION THE CITY COUNCIL TO PLACE BEFORE THE VOTERS AT THE NEXT REGULARLY SCHEDULED ELECTION, OR AT THE DISCRETION OF THE CITY COUNCIL AT A SPECIAL ELECTION, THE FOLLOWING BINDING ORDINANCE ”It IS HEREBY ORDAINED BY THE PEOPLE OF THE CITY OF DETROIT THAT IF AT ANY TIME CASINO GAMBLING IS APPROVED BY STATE LAW, THAT IT SHALL BE PROHIBITED WITHIN THE CORPORATE LIMITS OF THE CITY OF DETROIT INCLUDING BELLE ISLE”.
The petitions were filed with defendant Detroit City Clerk,-who determined them to contain more than the required minimum number of valid signatures. The proposed ordinance was transmitted to the Detroit City Council by letter of December 14, 1987, to allow the option of enacting an ordinance within thirty days as provided by § 12-107(1) of the Detroit City Charter. The measure was not enacted, so by letter of June 10, 1988, the city clerk transmitted the proposal to defendant Wayne County Clerk for submission to the voters on the August 2, 1988, primary ballot in Detroit.
On June 15, 1988, plaintiff filed this suit for mandamus and injunctive relief to prohibit the matter from being placed on the ballot. On that same day, Judge Kaufman entered an order to show cause why the requested relief should not be granted. By order dated June 20, 1988, he allowed Citizens for Detroit’s Future to intervene. The matter came on for hearing June 20, 1988, and he denied the requested relief, ruling the suit should be dismissed. He entered his order dismissing the case June 21, 1988.
Plaintiff filed his appeal as of right with this Court on June 22, 1988. Accompanying the appeal were motions for peremptory reversal, immediate consideration, and an expedited appeal process. By order of June 28, 1988, this Court granted the motion for immediate consideration, denied the motion for peremptory reversal, granted the motion to expedite, and ordered the matter submitted for oral argument at the earliest possible date. This Court has treated the briefs submitted in connection with the motion for peremptory reversal and the briefs filed with the circuit court as the briefs on appeal. The matter came on for oral argument before this Court on July 5, 1988. At that time, plaintiff’s counsel indicated no need to file further briefs and no other party indicated a need to file further briefs.
In Const 1963, art 2, § 9, the power to propose, enact and reject laws, called the initiative, is reserved to the people. However, this reserved power does not include the power of initiative with respect to local ordinances. Korash v Livonia, 388 Mich 737, 742, n 3; 202 NW2d 803 (1972). The power of a home rule city, such as Detroit, to provide for initiative petitions derives from statute. The power is provided in MCL 117.4i(6); MSA 5.2082(6), while the procedure is addressed in the last sentence of MCL 117.21; MSA 5.2100:
Propositions and questions shall be proposed, initiated, submitted and canvassed in a manner similar to that provided for charter amendments.
Here, we find that Article 12 of the city charter, §§ 12-101 through 12-112, meets these requirements; i.e., Article 12 provides for propositions and questions to be proposed, initiated, submitted and canvassed in a manner similar to that provided for home rule city charter amendments. Concomitantly, we find that the city charter, and not the statutory requirements for home rule, city charter amendments, governs these local initiatory petitions.
This Court has held that deficiencies amounting to a wholesale exclusion of mandated disclosure information justify removal of an issue from a ballot, while mere technical noncompliance would not prevent the election from going forward, Herp v Lansing City Clerk, 164 Mich App 150; 416 NW2d 367 (1987), lv den 429 Mich 899 (1988). In Meridian Twp v East Lansing, 101 Mich App 805; 300 NW2d 703 (1980), lv den 411 Mich 962 (1981), this Court set forth the general principle that all doubts as to technical deficiences or failure to comply with the exact letter of procedural requirements in petitions (generally, although that case involved annexation petitions) are resolved in fa vor of permitting the people to vote and express a choice on any proposal subject to election. In Newsome v Bd of State Canvassers, 69 Mich App 725, 729; 245 NW2d 374 (1976), lv den 397 Mich 833 (1976), this Court held that "[constitutional and statutory initative and referendum provisions should be liberally construed to effectuate their purposes, to facilitate rather than hamper the exercise by the people of those reserved rights, Kuhn v Dep’t of Treasury, 384 Mich 378; 183 NW2d 796 (1971).” Here, these principles are coupled with the high standard for a grant of mandamus, which is an extraordinary remedy and is discretionary with the court, Oakland Co Bd of Road Comm’rs v State Highway Comm, 79 Mich App 505; 261 NW2d 329 (1977), lv den 402 Mich 907 (1978). This remedy lies only when there is a clear legal duty incumbent on the defendant and a clear legal right in the plaintiff to the discharge of that duty, and the burden of establishing that duty by the defendant is placed on the party seeking mandamus, Burger King Corp v Detroit, 33 Mich App 382, 384; 189 NW2d 797 (1971). Specifically, plaintiff must show that the trial court abused its discretion in failing to find a clear legal duty on the part of the city clerk not to certify the petitions, or a clear legal duty on the part of the county clerk not to place this question on the ballot. Plaintiff has not even attempted the latter, and has not made this showing as to the former.
Several issues raised on appeal may be summarily disposed of at this juncture. First, MCL 117.25; MSA 5.2104 directs that the initiatory petitions for home rule city amendments shall be addressed to and filed with the city clerk. However, § 12-104, which requires that the petitions be filed with the city clerk, does not require that the petitions be addressed to the city clerk. The petitions at issue in this matter are not particularly "addressed” to anyone, although the language does "petition the [Detroit] City Council to place . . . before the voters [the ordinance in question].” We reject plaintiffs argument that because of this language the petitions here were merely an exercise of the petitioners’ right to seek governmental action. These were clearly more than a request by citizens to have the Detroit City Council exercise its discretion and submit a proposed ordinance to the voters under § 12-110 of the city charter. The petitions and their submission to the clerk follow the procedure under §§ 12-107 and 12-108 of the city charter for submission to the voters if the ordinance is not enacted. The very language of the petitions calling for submission to the voters at the next regularly scheduled election or, at the discretion of the city council, at a special election, tracks exactly the requirement for such submission set forth in § 12-108(1). Attachment f of plaintiffs complaint is a filing document used by Citizens for Detroit’s Future to file these petitions. The first sentence begins: "We hereby file initiative petitions ... for the purpose of initiating the following ordinance . . . .” Moreover, from the very beginning of the process, the city clerk treated these petitions as initiatory petitions, and neither plaintiff nor anyone else is shown to have raised any objection in opposition at the time. Therefore, the trial court was well within its discretion in finding no clear legal duty on the clerk’s part not to certify the petitions. Plaintiffs arguments to the contrary are not meritorious.
Similarly, plaintiff argues that additional alleged deviations from the requirements for initiatory petitions for home rule city charter amendments set forth in MCL 117.25; MSA 5.2104 were present here and were fatal to the petitions, justifying issuance of a writ of mandamus prohibiting submission of the question to the voters. Because we have held that the requirements for these initiatory petitions are set forth in Article 12 of the charter, the ways in which these petitions did not comply with MCL 117.25; MSA 5.2104 are immaterial.
The more serious challenges raised by plaintiff concern the way in which these initiatory petitions failed to meet the requirements of Article 12 of the city charter. Judge Kaufman found that the form of petitions required by § 12-102 of the charter was not met in two particulars:
(1) The petitions failed to have a sworn affidavit of the circulator; and
(2) the petitions failed to state the number of signers on each petition paper.
Turning to the first claimed deficiency, § 12-102 of the city charter requires each petition paper to contain a sworn affidavit of the circulator stating certain specific information. From what has been submitted to this Court, it does appear that circulators have certified all of the information save the number of signers, and at oral argument plaintiff conceded that a notary’s signature and seal were affixed to the petitions. However, the petitions contained no jurat, i.e., a statement reciting the fact that the circulator had subscribed and sworn to the accuracy of that certificate. We note that the absence of a signed jurat has, as noted by the trial court, been held to be a curable defect, Dickinson v Simondson, 25 Mich 113 (1872). Accord, Chisnell v Chisnell, 99 Mich App 311, 321-324; 297 NW2d 909 (1980). Had this defect been raised to the city clerk, we believe the city clerk, had he found the affidavit defective, would have had the duty to find no valid signatures and allow for the filing of additional petitions within fifteen days under § 12-105 of the charter. Citizens for Detroit’s Future has alleged, and plaintiff has not disputed, that it had collected roughly an additional thirty-thousand signatures, and, obviously, the missing jurat could have been supplied.
In Wells v Jones, 125 Mich App 137, 139; 336 NW2d 17 (1983), the plaintiff in a paternity action, though she signed the complaint and it contained a notarial seal in the proper form, testified that she did not raise her hand when she swore to the truth of the statements. Her failure to raise her hand was held to be a minor procedural defect which, in the absence of any conceivable prejudice, did not require reversal. The missing jurat here is not determinative evidence that the circulators did not swear to the contents of their certifications. To the contrary, MCL 55.113; MSA 5.1047 gives presumptive validity to the truth of facts within an instrument to which a notary public affixes his or her seal. Vriesman v Ross, 9 Mich App 102; 155 NW2d 857 (1967).
Far from rebutting the presumption or showing any conceivable prejudice, plaintiff did nothing from December 14, 1987, to June 15, 1988. Moreover, plaintiff’s counsel clarified at oral argument that he was making no claim that even one signature had been obtained contrary to the wording of the certification. The absence of a jurat here does not have a material impact on the safeguard provided by the affidavit as contained on the petitions. Consistent with our obligation to liberally construe initiative provisions to facilitate rather than hamper the exercise of the right, we find that this claim does not establish a clear legal duty on the part of the city clerk not to certify the petitions and, therefore, find that the trial court was within its discretion in denying relief on this ground.
Once the affidavit requirement has been satis fied, the required statement of the number of signatures on the petition in the circulator’s certification does give rise to a different problem — the safeguard here is obviously designed to prevent unscrupulous individuals from collecting petitions from circulators and then adding signatures after a petition has been returned. While this safeguard is a laudatory one, it is not a requirement for state initiatory petitions, MCL 168.482; MSA 6.1482, which require a certification as provided in MCL 168.544c; MSA 6.1544(3). That certification, but for unimportant linguistic modifications, is the certification used in the petitions challenged in this case.
In any event, plaintiff has conceded that he is not alleging that even one signature was added after a circulator’s certification. The notary’s seal affixed to the petition gives a presumption of truthfulness to the certification that each signature was signed in the circulator’s presence. Therefore, the number of petition signers is certified to on the face of the petitions by the circulator. Absent rebuttal by plaintiff, Vriesman, supra, we hold that plaintiff has not made the required showing of a clear legal duty on the part of the city clerk not to certify the petitions, and again find no abuse of discretion in the trial court’s refusal to grant relief on this ground.
Plaintiff also argues that the petitions are speculative, overbroad, vague and do not give the voter knowledge of what he or she is voting for or against. This argument is not supported with citations to any authority. "A party may not leave it to this Court to search for authority to sustain or reject its position. A statement of position without supporting citation is insufficient to bring an issue before this Court.” Butler v Detroit Automobile Inter-Ins Exchange, 121 Mich App 727, 737; 329 NW2d 781 (1982). We think the intention of the proposed ordinance is clear: in whatever form the Legislature may choose to allow casino gambling, that activity is to be prohibited in the City of Detroit including Belle Isle.
As to a related claim that this initiative extends to the budget and is, therefore, improper under § 12-101 of the city charter, plaintiff has accurately noted the charter limitation. However, examination of Detroit v Detroit City Clerk, 98 Mich App 136; 296 NW2d 207 (1980), leads us to agree with the construction of the limitation suggested therein, namely, the initiative does not extend to matters directly and substantially affecting the budget. Incidental or indirect impact on the budget could not be included within the limitation, because no ordinance could be said to be totally unrelated to and without some effect on a city’s budget. The rules governing construction of statutes, also govern construction of ordinances, Fink v Detroit, 124 Mich App 44; 333 NW2d 376 (1983). This Court will construe statutes, and therefore this ordinance, to avoid, not produce, the absurd result that virtually no ordinance could be initiated under § 12-101 of the city charter. King v Midland Co Dep’t of Social Services Director, 73 Mich App 253, 258; 251 NW2d 270 (1977). This issue is without merit.
Turning to plaintiff’s last issue, the petitions as presented are claimed to be violative of the requirements for purity of elections, Const 1963, art 2, § 4. We find no inhibition of the people’s right to make an intelligent choice on the ordinance. To the extent that clarity is an aspect of the purity of elections requirement, cf. Mastin v Oakland Co Elections Comm, 128 Mich App 789, 795; 341 NW2d 797 (1983), the voters can clearly tell what they are voting on here. Plaintiff also argues a constitutional violation because this ordinance is to be passed on the contingency of possible state legislative action. By analogy from Sessa v State Treasurer, 117 Mich App 46, 53-56; 323 NW2d 586 (1982), where a state statute passed in anticipation of a possible constitutional amendment did not violate the purity of elections requirement, there is no such violation when the ordinance is passed in anticipation of a possible state statute.
Finally, to the extent that the ordinance is claimed to be misleading in its presentation, we see no violation of the purity of elections concept, as embodied (by analogy only) in MCL 168.474; MSA 6.1474, that the proposal "consist of a true and impartial statement of the purpose of the . . . question in such language as shall create no preference for or against such proposal,” Mastin, supra, p 797.
The trial court’s order of dismissal is affirmed. Due to the impending election date, this Court orders that this opinion has immediate effect, MCR 7.215(F)(2).
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Per Curiam.
Plaintiff appeals as of right from an order granting summary disposition in favor of defendant.
Plaintiff commenced this wrongful death action on July 12, 1979, alleging malpractice against defendant hospital and a Dr. John W. Hillyer, M.D. Defendant hospital moved for accelerated judgment pursuant to GCR 1963, 116.1(5) contending that the action was barred by the statute of limitations for malpractice actions, MCL 600.5805(4); MSA 27A.5805(4). The trial court granted the motion in an opinion dated January 15, 1980. Accelerated judgment was entered on behalf of Dr. Hillyer on the same grounds on April 9, 1980. The trial court had found that the two- year malpractice statute of limitations governed and that the causes of action accrued on the dates decedent was treated by each defendant. Plaintiff appealed the grant of accelerated judgment in favor of the hospital and Dr. Hillyer. In a published authored opinion, this Court reversed the grant of accelerated judgment, finding that the action was brought in a timely fashion. Penner v Seaway Hospital, 102 Mich App 697; 302 NW2d 285 (1981), lv den 417 Mich 974 (1983).
The facts are not in material dispute. In her first amended complaint, plaintiff alleged that, for some time prior to July 26, 1976, decedent, Ira A. Penner, had been under the care and treatment of Dr. Hillyer for chest pains, headaches, shortness of breath, tiredness, and high blood pressure. On July 27, 1976, while at the hospital for purposes of admitting his wife, decedent experienced pain in his chest necessitating his hospitalization at Seaway.
Upon his admission, the decedent signed an "Authorization For Treatment” form. Plaintiff alleged that this form was an agreement whereby Seaway agreed to diagnose and treat the decedent. Plaintiff further alleged that defendant breached the alleged agreement by failing to properly diagnose the decedent’s ailments and render appropriate medical care.
On August 10, 1976, the decedent was discharged from Seaway and transferred to the University of Michigan Hospital in Ann Arbor, Michigan. On May 26, 1978, Mr. Penner died.
Following this Court’s 1981 opinion reversing the grant of accelerated judgment, on October 23, 1986, defendant filed a motion for summary disposition based on the Supreme Court decision in Hyde v Univ of Michigan Bd of Regents, 426 Mich 223; 393 NW2d 847 (1986), and its companion cases. Plaintiff answered defendant’s motion and filed a motion for leave to file an amended complaint so as to allege a breach of contract cause of action.
On November 14, 1986, Judge Paul S. Teranes granted plaintiff’s motion for leave to amend the complaint. In addition, the trial judge granted partial summary disposition as to the allegations of tort liability contained in plaintiff’s amended complaint, but allowed the allegations regarding a breach of contract claim to stand;
On November 16, 1986, Wayne Circuit Court Chief Judge Richard C. Kaufman issued Docket Directive 1986-13 which provides:
Subject: Governmental Immunity — Public Hospital Cases
Effective Date: November 26, 1986
Effective immediately, all tort claim cases filed before July 1, 1986 in which a Defendant is Wayne County General Hospital or Peoples Community Hospital Authority (pcha) are to be reassigned to Chief Judge Richard C. Kaufman.
The reassignment is for the sole purpose of deciding all motions brought by the hospital claiming governmental immunity and hearing any proceedings incident to such a claim. After completion of this purpose, each case shall be returned to the regularly assigned judge.
Subsequently, on February 2, 1987, defendant filed a motion for summary disposition before Chief Judge Kaufman as to plaintiff’s contract claim. Oral arguments were heard on March 10, 1987. On March 17, 1987, Judge Kaufman granted defendant’s motion. Plaintiff filed the instant appeal.
Plaintiff alleges that the lower court erred in dismissing plaintiff’s contract claim where there was evidence that defendant allegedly failed to perform a special agreement giving rise to a contract cause of action. In plaintiff’s brief, it is alleged that the court dismissed plaintiff’s contract claim on the pleadings, MCR 2.116(C)(8). However, our review of the motion transcript reveals that the motion was granted pursuant to MCR 2.116(0(10) (no genuine issue of material fact). Thus, we will review the grant of summary disposition on the basis of whether there is a genuine issue of material fact. A motion for summary disposition under MCR 2.116(0(10) tests the factual support for a claim. St Paul Fire & Marine Ins Co v Quintana, 165 Mich App 719, 722; 419 NW2d 60 (1988). In ruling on this motion, the trial court must consider not only the pleadings, but also depositions, affidavits, admissions and other documentary evidence, MCR 2.116(G)(5), and must give the benefit of any reasonable doubt to the nonmoving party, being liberal in finding a genuine issue of material fact. Rizzo v Kretschmer, 389 Mich 363, 372; 207 NW2d 316 (1973). Summary disposition is proper under this subrule only if the court is satisfied that it is impossible for the nonmoving party’s claim to be supported at trial because of a deficiency that cannot be overcome. St Paul Fire & Marine, supra.
In Ross v Consumers Power Co (On Reh), 420 Mich 567, 647-648; 363 NW2d 641 (1984), the Supreme Court stated in one of the companion cases (Rocco v Dep’t of Mental Health) that "[i]f a plaintiff successfully pleads and establishes a non-tort cause of action, MCL 691.1407; MSA 3.996(107) will not bar recovery simply because the underlying facts could have also established a tort cause of action.” In Rocco, the Supreme Court reversed the trial court’s grant of summary judgment under GCR 1963, 117.2(1), now MCR 2.116(C)(8). The Court upheld the contract claim, finding that the plaintiff’s complaint was sufficient to withstand the motion since the allegations pled the existence of a contract. However, the Supreme Court did point out that these allegations did not necessarily mean that the claim could be factually supported. Id., p 647.
Plaintiff alleges the existence of a "special agreement” between the plaintiff’s decedent and the hospital giving rise to a contract claim as described in Stewart v Rudner, 349 Mich 459, 467-468; 84 NW2d 816 (1957):
A doctor and his patient, of course, have the same general liberty to contract with respect to their relationship as other parties entering into consensual relationship with one another, and a breach thereof will give rise to a cause of action. It is proper to note, with respect to the contracts of physicians, that certain qualitative differences should be observed, since the doctor’s therapeutic reassurance that his patient will be all right, not to worry, must not be converted into a binding promise by the disappointed or quarrelsome. Those qualifications we have in mind as we proceed.
It should be noted, also, early in our discussion, as the appellate division of the New York courts observed in Colvin v Smith, 276 App Div 9 (92 NYS2d 794) [1949], that "this cause of action (in contract) is entirely separate from malpractice, even though they both, as here, may arise out of the same transaction.” The court continues:
"The 2 causes of action are dissimilar as to theory, proof and damages recoverable. Malpractice is predicated upon the failure to exercise requisite medical skill and is tortious in nature. The action in contract is based upon a failure to perform a special agreement. Negligence, the basis of the one, is foreign to the other. The damages recoverable in malpractice are for personal injuries, including the pain and suffering which natu rally flow from the tortious act. In the contract action they are restricted to the payments made and to the expenditures for nurses and medicines or other damages that flow from the breach thereof.”
In Barnard v Dilley, 134 Mich App 375, 378; 350 NW2d 887 (1984), our Court explained the term "special agreement.” In Barnard, the plaintiff hired defendant Dilley and the law firm of which he was a member to act as an attorney in a lawsuit brought against the plaintiff by third parties. At a scheduled deposition, the plaintiff and Dilley had a serious disagreement and Dilley withdrew as the plaintiff’s counsel. In her first complaint, the plaintiff alleged legal malpractice. In her first amended complaint, she alleged that she contacted Dilley and requested that he defend her. She and Dilley then "entered into a contractual agreement in which [he] agreed to represent [her] in the aforementioned lawsuit.” Id., p 377. In rejecting the plaintiff’s contract claim, this Court stated:
This contract was not a "special agreement” as that term was used in Stewart v Rudner, 349 Mich 459, 468; 84 NW2d 816 (1957). It was not a contract to perform a specific act, but one to exercise appropriate legal skill in providing representation in a lawsuit. Her claim is that damages flowed not from his failure to represent her, but from his failure to represent her adequately. This is a claim grounded on malpractice and malpractice only. [134 Mich App 378.]
In this case, plaintiff’s first amended complaint alleged that defendant breached the alleged agreement by failing to properly diagnose the decedent’s ailments and render appropriate medical care. In addition, plaintiff alleged that the decedent re ceived no medical care during his last four days at the hospital. After examining the allegations in plaintiffs complaint, we conclude that the allegations are an attempt to disguise a tort action sounding in malpractice into a contract action so as to avoid governmental immunity. Plaintiffs complaint does not allege the existence of a "special agreement” between the decedent and the hospital. The "Authorization For Treatment” form signed by the decedent merely authorized the hospital and its doctors to render appropriate medical care. Their failure to do so constitutes malpractice. This case is unlike Stewart, supra, wherein the defendant doctor specifically agreed to perform a Caesarean section. In our case, there was no agreement to perform any specific act. In fact, the only acts that the decedent agreed to allow the hospital to perform were those that were deemed necessary or advisable in the professional judgment of the attending physician. Thus, plaintiff has not established a contract cause of action.
In addition, there cannot be an implied contract in this case. In Guilbault v Dep’t of Mental Health, 160 Mich App 781, 784-785; 408 NW2d 558 (1987), this Court stated the following with respect to the elements of an implied contract:
In Lowery v Dep’t of Corrections, 146 Mich App 342, 359; 380 NW2d 99 (1985), this Court discussed the elements of an implied contract:
"[A] contract based on implication must still satisfy the elements of mutual assent and consideration, Spruytte v Dep’t of Corrections, 82 Mich App 145; 266 NW2d 482 (1978). In Spruytte, the Court found that no implied bailment contract could be found to exist because (1) there was no mutual assent since the procedure for bailment of property upon incarceration was required as an aspect of prison management and control, and (2) there could be no finding of consideration since defendant was performing a preexisting duty.”
Thus, if defendant had the preexisting duty to provide treatment to decedent, there can be no consideration for any implied contract and, therefore, no contract.
MCL 333.20201; MSA 14.15(20201) establishes a duty upon defendant to provide medical treatment to all persons in need of such treatment without regard to their ability to pay. Thus, since defendant had a preexisting duty to provide decedent with medical health services, there could be no contract. Therefore, the trial court’s grant of summary disposition was proper.
Finally, plaintiffs contract claim must fail because there was no writing as required by MCL 566.132(g); MSA 26.922(g). The "Authorization For Treatment” form does not constitute a contract. At best, it granted authority to the hospital to perform the requisite medical services.
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G. R. McDonald, J.
The people appeal by leave granted from the October 27, 1987, circuit court orders affirming the magistrate’s decision to bind defendants over on charges of involuntary manslaughter, MCL 750.321; MSA 28.553. We affirm.
These cases arise out of the December 12, 1986, death of defendants’ eight-week-old child. The testimony presented at the preliminary examination indicates that the child died of starvation over a period of approximately one month. Although being fed some things, the child was apparently not fed sufficient amounts to sustain its life.
On appeal the people claim error in the magistrate’s failure to bind defendants over on charges of second-degree murder, MCL 750.317; MSA 28.549. Defendants cross-appeal claiming insufficient evidence to support the bindovers on charges of manslaughter.
It is the duty of the magistrate to bind a defendant over for trial if it appears at the conclusion of the preliminary examination that a crime has been committed and there is probable cause to believe that defendant committed it. People v Harris, 159 Mich App 401; 406 NW2d 307 (1987). Although proof beyond a reasonable doubt is not required, the prosecution must present evidence on each element of the crime charged or evidence from which these elements may be inferred. People v Hammond, 161 Mich App 719; 411 NW2d 837 (1987). A magistrate’s determination at the preliminary examination should not be disturbed by a reviewing court unless a clear abuse of discretion is apparent from the record. Harris, supra.
The people argue that the magistrate improperly held that the starvation of a child could never rise to the level of second-degree murder absent the affirmative use of some type of weapon or instrumentality. We disagree with the people’s characterization of the magistrate’s ruling. Our review of the record indicates the magistrate’s concern that evidence beyond the fact of death by starvation be submitted to support the element of malice or intent required for a finding of second-degree murder. People v Vasquez, 129 Mich App 691; 341 NW2d 873 (1983). In affirming the magistrate’s decision the trial court stated: "Malice is a necessary element of second degree murder and by my reading of the cases leads me to the conclusion that in death by starvation cases, death by starvation standing alone is insufficient to support a finding to support an inference of intent as a matter of law that would support a bindover of second degree murder.”
Although starvation or other omissions, when coupled with evidence of the appropriate intent, may rise to the level of second-degree murder, we agree that proof of death by starvation, standing alone, is insufficient to infer the element of malice necessary to sustain a bindover for second-degree murder. See People v Lynch, 47 Mich App 8; 208 NW2d 656 (1973); Bliley v State, 42 Ala App 261; 160 So 2d 507 (1964).
In the instant case, the prosecution introduced more than sufficient evidence to prove death by starvation, however, the prosecution failed to introduce any evidence of the defendants’ state of mind when failing to adequately feed the child. Thus, due to the lack of proof admitted on defendants’ intent at the preliminary examination, we can not say that the magistrate committed a clear abuse of discretion in failing to bind defendants over on charges of second-degree murder and, therefore, affirm the trial court’s October 27 orders upholding the magistrate’s ruling.
We also reject defendants’ cross-appeal claiming insufficient evidence to support the bindover on charges of involuntary manslaughter. To support a bindover on involuntary manslaughter based on defendants’ omission to perform a duty, the prosecutor was required to submit evidence indicating the existence of a legal duty, defendants’ knowledge of the duty, that defendants wilfully ne glected or refused to perform said duty, that such failure was grossly negligent of human life, and that death was caused by defendants’ failure to perform their duty. A finding of gross negligence requires evidence that defendants had knowledge of the danger their failure to act would cause the child, the ability to avoid the harm, and that they failed to use care and diligence to prevent the danger when, to the ordinary mind, it must have been apparent that the result was likely to cause harm to the child. People v Sealy, 136 Mich App 168; 356 NW2d 614 (1984); CJI 16:4:08.
We believe that sufficient evidence was presented or could be inferred from the evidence presented as to each of these elements. Defendants admitted to being the child’s parents and to living together in the same residence. Thus, the magistrate could infer that the child, whom the parents transported to the hospital, lived with the parents. Therefore an adequate connection was demonstrated between defendants and the child to find a legal duty and defendants’ ability to act on behalf of the child. The expert testimony indicated that the defendants’ failure to provide sufficient nourishment caused the child’s death. And lastly, although a closer question due to the evidence of defendants’ attempts to remedy the child’s condition, we believe the testimony describing the child’s emaciated appearance, as well as the doctors’ testimony that anyone seeing the child should have realized that the child’s condition was not normal, was sufficient to support an inference that defendants were grossly negligent.
Affirmed
People v Burden, 72 Cal App 3d 603; 140 Cal Rptr 282 (1977); Zessman v State, 94 Nev 28; 573 P2d 1174 (1978); Harrington v State, 547 SW2d 616 (Tex Crim App, 1977). | [
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Cynar, P.J.
Defendant appeals by leave granted from an order denying his motion for summary disposition. We reverse.
This is a case of legal malpractice. In September or November, 1975, the plaintiff contacted and retained defendant to pursue a lawsuit against plaintiff’s employer, the Great Atlantic & Pacific Tea Company, Inc., for alleged employment discrimination and harassment.
The lawsuit was never filed. As a result, on August 14, 1978, plaintiff filed with the Attorney Grievance Committee a request for investigation of defendant’s failure to pursue his claim against A & p. Defendant filed an answer to the investigation stating:
I must frankly admit that on the above date, I was totally unaware (having specialized in personal injury cases all my life), of the enormous complexities and the intricacies involved in the law governing employment discrimination cases. Though ignorant of the situation, I felt that this particular situation sounded in possibly, tort as well as contract, and I began to investigate the matter.
On March 2, 1981, after the conclusion of the committee’s investigation, defendant was admonished.
While the grievance investigation was pending, a member of the grievance body advised plaintiff that the statute of limitations might be running on his A & p claim and encouraged plaintiff to retain other counsel.
Plaintiff retained James Cannon, Jr., sometime in September, 1978, as his new attorney to pursue his claims against a & p. The retention of Cannon effectively terminated the attorney-client relationship between plaintiff and defendant. On August 8, 1979, the complaint against a & p was filed. It was dismissed on April 10, 1981, due to the running of the statutory period of limitation.
Subsequently, on April 12, 1984, plaintiff, in propria persona, commenced a malpractice action against defendant. That action was superseded by the present suit, filed on March 7, 1985.
On November 14, 1985, defendant moved for summary disposition of dismissal under MCR 2.116(C)(7), claiming that the instant action was barred by the applicable statute of limitations. Because there was a significant factual dispute regarding allegations that defendant had made certain misrepresentations, the trial court denied defendant’s motion. This Court granted defendant leave to appeal on March 12, 1987.
The sole issue for our determination is whether plaintiff’s claim against defendant is time-barred. We conclude that it is and thereby reverse the trial court’s denial of defendant’s motion for summary disposition.
The standard under which we review summary disposition motions pursuant to MCR 2.116(C)(7) is that this Court accepts all of the plaintiff’s wellpled factual allegations as true and construes them most favorably to the plaintiff. Male v Mayotte, Crouse & D’Haene Architects, Inc, 163 Mich App 165, 168; 413 NW2d 698 (1987); Hansen v Upper Peninsula Power Co, 144 Mich App 138, 140; 373 NW2d 270 (1985).
The statute of limitations for a malpractice action is set forth in MCL 600.5805; MSA 27A.5805:
(1) A person shall not bring or maintain an action to recover damages for injuries to persons or property unless, after the claim first accrued to the plaintiff or to someone through whom the plaintiff claims, the action is commenced within the periods of time prescribed by this section.
(4) Except as otherwise provided in this chapter, the period of limitations is 2 years for an action charging malpractice.
MCL 600.5838; MSA 27A.5838 defines when a claim for professional malpractice accrues. The statute provides:
(1) . . . [A] claim based on the malpractice of a person who is, or holds himself or herself out to be, a member of a state licensed profession accrues at the time that person discontinues serving the plaintiff in a professional or pseudoprofessional capacity as to the matters out of which the claim for malpractice arose, regardless of the time the plaintiff discovers or otherwise has knowledge of the claim.
(2) . . . [A]n action involving a claim based on malpractice may be commenced at any time within the applicable period prescribed in sections 5805 or 5851 to 5856, or within 6 months after the plaintiff discovers or should have discovered the existence of the claim, whichever is later. The burden of proving that the plaintiff discovered or should have discovered the existence of the claim at least 6 months before the expiration of the period otherwise applicable to the claim shall be on the plaintiff. A malpractice action which is not commenced within the time prescribed by this subsection is barred.
The statute requires a plaintiff to bring a claim within two years of when it first accrued or within six months of the discovery of the alleged malpractice. The purpose behind the statute is to suppress fraudulent or stale claims or claims which are difficult to defend due to the loss of evidence or witnesses after an extended period of time. Hayden v Green, 166 Mich App 352; 420 NW2d 201 (1988).
MCL 600.5838(1); MSA 27A.5838(1) indicates that plaintiff’s claim of malpractice would have accrued at the time defendant discontinued serving plaintiff in a professional or pseudoprofessional capacity. An attorney discontinues serving, for purposes of the statute, when the attorney is relieved of that obligation either by the client or the court. Dowker v Peacock, 152 Mich App 669, 672; 394 NW2d 65 (1986). A plaintiff is required to commence an action within two years from the time the attorney discontinues serving the plaintiff in a professional capacity as to the matters out of which the claim for malpractice arose. Chapman v Sullivan, 161 Mich App 558, 563; 411 NW2d 754 (1987).
In this case, there is no dispute that defendant discontinued serving plaintiff in September, 1978, since that is when plaintiff retained attorney Cannon. Therefore, plaintiff had until September, 1980, to file his malpractice claim. Having failed to do so, plaintiff’s claim is barred under this particular section of the statute.
Section 5838(2) extends the two-year filing provision by providing that an action may be commenced within six months after the plaintiff discovers or, in the exercise of reasonable diligence, should have discovered the asserted malpractice. The plaintiff may take advantage of whichever provision provides the longer period within which to file. Chapman, supra, p 563.
We conclude that, even under the discovery rule, plaintiff’s malpractice claim is time-barred. We believe that, as early as August 14, 1978, the date plaintiff requested the Attorney Grievance Committee to investigate defendant’s failure to pursue a claim against a & p, plaintiff discovered or should have discovered that defendant had not represented him properly in his claim against A & p. Thus, the statutory period under the discovery rule would have expired on February 14, 1979, and plaintiff’s initial complaint of April 12, 1984, would not be saved by the discovery rule.
In addition, even if we were to assume that plaintiff first discovered the malpractice on December 14, 1978, the date of the letter from the grievance committee investigator advising plaintiff of the possible running of the statutory period, or on April 10, 1981, the date when his suit against a & p was dismissed, plaintiff’s complaint of April 12, 1984, is too late. Applying any of the foregoing dates to either provision of §5838 leads us to conclude that plaintiff’s malpractice claim against defendant is barred.
Nonetheless, plaintiff alleges that his claim is not barred because defendant fraudulently concealed the fact that plaintiff had a claim against him. We do not agree. MCL 600.5855; MSA 27A.5855 provides:
If a person who is or may be liable for any claim fraudulently conceals the existence of the claim or the identity of any person who is liable for the claim from the knowledge of the person entitled to sue on the claim, the action may be commenced at any time within 2 years after the person who is entitled to bring the action discovers, or should have discovered, the existence of the claim or the identity of the person who is liable for the claim, although the action would otherwise be barred by the period of limitations.
This statute is designed to prevent actions which hinder a plaintiff from discovering the existence of a claim. As the Supreme Court stated in Weast v Duffie, 272 Mich 534, 539; 262 NW 401 (1935), quoting 37 CJ, p 976:
The fraudulent concealment which will postpone the operation of the statute must be the concealment of the fact that plaintiff has a cause of action. If there is a known cause of action there can be no fraudulent concealment which will interfere with the operation of the statute, and in this behalf a party will be held to know what he ought to know, pursuant to the rule hereinbefore stated (i.e., by the exercise of ordinary diligence).
Generally speaking, for fraudulent concealment to postpone the running of the limitation period, the fraud must be manifested by an affirmative act or misrepresentation. Lumber Village, Inc v Siegler, 135 Mich App 685, 694; 355 NW2d 654 (1984). A mere silence on the part of the defendant is not enough. The plaintiff is required to show some arrangement or contrivance on the part of the defendant, of an affirmative character designed to prevent subsequent discovery. Draws v Levin, 332 Mich 447, 452; 52 NW2d 180 (1952).
In this case, there is no support for plaintiff’s argument that defendant fraudulently concealed the existence of a claim. Plaintiff asserts that, upon reading an advertisement in the March 12, 1983, edition of the Michigan Chronicle, which stated that defendant’s law practice was "strictly limited to the field of negligence,” he discovered that defendant fraudulently concealed from him the fact that defendant did not know how to proceed with plaintiff’s employment discrimination and harassment claim against A & p. Thus, plaintiff maintains that, pursuant to the statute, his complaint of March 7, 1985, was timely since it was filed within two years upon discovering the existence of a claim. We disagree. As early as September 29, 1978, plaintiff was aware, through defendant’s answer filed in response to the grievance committee’s request for investigation, that defendant was "totally unaware” of the enormous complexities and intricacies of employment discrimination law. Thus, plaintiffs claim is barred even under this statute.
Finally, we reject plaintiffs assertion that his claim also includes elements of a breach of contract that are within the six-year statute of limitations for breach of contract actions. MCL 600.5807(8); MSA 27A.5807(8). Plaintiff alleges the existence of a contract between himself and defendant on the basis that he signed a contingent fee contract with defendant. In Barnard v Dilley, 134 Mich App 375; 350 NW2d 887 (1984), this Court stated that the type of interest allegedly harmed is the focal point in deciding which limitation period controls. In Barnard, the Court rejected plaintiffs breach of contract claim, finding that plaintiffs damages flowed from the attorney’s failure to represent her adequately. Similarly in our case, plaintiff’s damages are a result of inadequate representation by defendant. Thus, plaintiff’s complaint should have been dismissed.
Reversed. | [
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Per Curiam.
Defendant, Volunteers of America, appeals from a November 3, 1986, order of the Wayne Circuit Court denying defendant’s motion to set aside a permanent injunction issued on October 10, 1986, prohibiting defendant from oper ating a penal or correctional institution on its premises at 6060 Rivard in the City of Detroit. We affirm.
The record reveals that defendant’s property on Rivard, which was once a manufacturing plant, is situated in a district zoned for intensive industrial activity. Although a portion of the property was certified for use as a dormitory and lodging house, no part of it was certified for use as a penal or correctional facility. In October, 1984, defendant entered into a contract with the Michigan Department of Corrections under the terms of which a portion of its property was to be used as a probation residential center or halfway house. This contract expired on September 30, 1985. Before the expiration of this contract, defendant entered into a second contract with the chief executive officer of Wayne County under the terms of which defendant’s facilities were to house "misdemeanant offenders ordered into [defendant’s] custody by referring courts.” This contract expires on November 30, 1989, and thereafter is renewable for two five-year periods.
On November 9, 1984, defendant’s property was inspected by the Detroit Department of Buildings and Safety Engineering, which, one week later, informed defendant by letter that its facilities contained several building and zoning code violations and ordered defendant to "[discontinue in the use of [the] premises as a guarded correctional unit (halfway house) as no permit has been issued for this use. Ord. 290-H, Sec. 12-11-16.1.” This order notwithstanding, defendant continued to operate its facility on the property and, according to the City of Detroit, enlarged its dormitory facilities in anticipation of performing its obligations under the contract with the Wayne County chief executive officer. In response to defendant’s actions, the City of Detroit, plaintiff in this case, filed a verified complaint in the Wayne Circuit Court on January 31, 1985, seeking an order restraining defendant from using its facilities, without a permit or plaintiff’s approval, as a penal or correctional institution. On October 10, 1986, the circuit court issued an order permanently enjoining defendant from "conducting, operating, maintaining or permitting the continuance of the . . . use and occupation of the premises at 6060 Rivard in the City of Detroit as a penal or correctional institution for treatment or rehabilitation of offenders ... in violation of the Detroit Zoning Ordinance, 390-G.” On November 3, 1986, after oral argument was conducted on October 31, 1986, the circuit court denied defendant’s motion to set aside the permanent injunction. This appeal ensued.
On appeal, defendant first argues that the City of Detroit has no authority to prohibit the use of the Rivard property as a rehabilitation center, asserting that, when the Michigan Department of Corrections leases a facility for its own use, a city or municipal government may not interfere with that use by way of any zoning or other legislative act. Defendant relies on Dearden v Detroit, 403 Mich 257; 269 NW2d 139 (1978). In that case, the Michigan Department of Corrections, a state agency, leased a structure, formerly used as a convent, from the Roman Catholic Archdiocese of Detroit, intending to use it as a neighborhood rehabilitation center. After the department had begun using the building, the lessor archdiocese applied to the Detroit Department of Buildings and Safety Engineering for permission to use the former convent as a rehabilitation center. The application was denied, and the denial was affirmed by the Board of Zoning Appeals. The archdiocese then filed a complaint for superintending control in the Wayne Circuit Court, which affirmed the board’s decision. Thereafter, this Court affirmed the circuit court’s decision, Dearden v Detroit, 70 Mich App 163; 245 NW2d 700 (1976), and the archdiocese appealed to the Supreme Court. The Supreme Court, emphasizing that the zoning enabling act, MCL 125.581 et seq.; MSA 5.2931 et seq., did not indicate whether the Legislature intended to subject the Michigan Department of Corrections to local zoning ordinances but that the legislation creating the Department of Corrections provided that the department "shall have exclusive jurisdiction” over penal institutions, MCL 791.204; MSA 28.2274, reversed the decision of this Court and held that the department was not subject to municipal zoning ordinances. In reaching this holding, the Supreme Court, noting that the statute conferred upon the department the "exclusive jurisdiction over . . . penal institutions,” stated:
We read this language as a clear expression of the Legislature’s intent to vest the department with complete jurisdiction over the state’s penal institutions, subject only to the constitutional powers of the executive and judiciary, and not subject in any way to any other legislative act, such as the zoning enabling act.
* * *
As noted above, the zoning enabling act does not indicate whether or not the Legislature intended to subject the department to local zoning ordinances. We can find no expression of a legislative intent in the language of that act to subject the department’s exclusive jurisdiction over the state’s penal institutions, and its duty to coordinate and adjust those institutions as an integral part of a unified, general correctional system, to the many and varied municipal zoning ordinances throughout the state. If the department were subject to those ordinances, the underlying policies of the general correctional system could be effectively thwarted by community after community prohibiting the placement of certain penal institutions in appropriate locations. A careful reading of the statute establishing the department evidences a contrary legislative intent.
We hold that in enacting MCL 791.201, et seq.; MSA 28.22271, et seq., the Legislature intended to grant the Department of Corrections immunity from local zoning ordinances when establishing state penal institutions. Consequently, defendant’s zoning ordinance is void to the extent that it attempts to prohibit the use of the subject property as a rehabilitation center. [403 Mich 265-267.]
See also Pecoraro v Dep’t of Corrections, 100 Mich App 802; 300 NW2d 418 (1980), lv den 411 Mich 973 (1981); Marquette Co v Bd of Control of Northern Michigan Univ, 111 Mich App 521, 526; 314 NW2d 678 (1981); Cody Park Ass’n v Royal Oak School Dist, 116 Mich App 103, 106-107; 321 NW2d 855 (1982), lv den 417 Mich 985 (1983); and Lu theran High School Ass’n v Farmington Hills, 146 Mich App 641, 645-647; 381 NW2d 417 (1985), lv den 425 Mich 870 (1986).
Although we do not disagree with defendant’s analysis of the ruling and significance of Dearden, we believe that its reliance on that case is misplaced. In Dearden, the department leased the subject property from the private lessor and itself operated a neighborhood rehabilitation center. In this case, the department did not lease the Rivard property, but rather merely entered into a contract with defendant, who, as an independent contractor, was to maintain and operate a probation residential center. Moreover, the contract between defendant and the chief executive officer of Wayne County specifies that defendant, as an independent contractor, "agrees ... to obtain and maintain all licenses and certificates required by State, Federal and Local laws, ordinances, statutes and administrative rules and regulations . . . which are required for engagement in the contemplated services and activities,” further specifying that "[failure to comply with these requirements shall comprise a substantial breach of the terms of this agreement, and shall constitute cause for immediate termination by the County.” Thus, the Dear-den rule, to reach the facts presented in this case, would require substantial enlargement, and, indeed, enlargement to the point of permitting independent contractors enjoying service contracts with the Department of Corrections and contracts with Wayne County including language specifically holding the independent contractor responsible for complying with local zoning ordinances, to ignore with impunity the requirements of applicable municipal laws. We are hesitant to enlarge the Dear-den rule to this extent, believing that that rule— involving the Supreme Court’s construction of an important statutory provision — should be carefully obeyed, and not necessarily amplified, by this Court. The ruling in Dearden was premised on the existence of the real, continuing, working and active participation of the Department of Corrections in the facility leased for use as a neighborhood rehabilitation center. Here, the department’s participation, if it exists at all, is greatly attenuated. Under such a circumstance, we do not believe that defendant may properly disregard applicable local zoning ordinances.
Defendant also argues on appeal that the circuit court erred in granting injunctive relief to plaintiff because defendant was not provided with notice of the hearing at which that relief was granted, as is required under the court rules. MCR 2.119(C), 2.107(A). The hearing on plaintiff’s motion for a permanent injunction was dismissed by the circuit court on September 26, 1986, the date originally scheduled for oral arguments on the motion. We have found no evidence in the record suggesting that plaintiff’s motion was repraeciped; however, at the hearing on plaintiff’s motion, which was conducted on October 10, 1986, plaintiff’s attorney informed the court that defendant’s attorney of record had requested that the hearing date be adjourned until October 10. We note that that same attorney of record was substituted by consent with new counsel by way of an order issued on October 16, 1986.
Defendant’s argument based on the lack of notice, however, lacks merit. MCR 2.613(A) provides that an error in anything done or omitted by a court or a party may not be used as a ground for disturbing an order unless a refusal to do so is inconsistent with substantial justice. In this case, even assuming that the circuit court erred in granting plaintiffs motion for a permanent injunction on October 10, 1986, no substantial injustice resulted because defendant subsequently filed a motion to set aside the injunction and was given an opportunity to present its arguments on the substantive issues raised in this case. At the hearing on defendant’s motion, conducted on October 31, 1986, an attorney representing defendant appeared and argued that Dearden, supra, was applicable and mandated the dissolution of the October 10, 1986, injunction. The circuit court, after considering defendant’s argument, affirmed its decision to enjoin defendant from operating a correctional institution for the treatment or rehabilitation of criminal offenders at its Rivard premises. Our examination of the facts and law in this case lead us to the same conclusion. Thus, since defendant has now been afforded review of the substantive merits of its case at both the circuit and appellate court levels, we fail to discern any prejudice suffered as a result of the possible procedural infirmity associated with the circuit court’s October 10, 1986, order for permanent injunction.
Accordingly, the circuit court’s order denying defendant’s motion to set aside the permanent injunction issued on October 10, 1986, prohibiting defendant from operating a penal or correctional institution on its premises at 6060 Rivard in the City of Detroit is affirmed.
Affirmed.
Regarding defendant’s contractual relationship with the Michigan Department of Corrections, the record filed on appeal contains only one contract, effective between October 1, 1984, and September 30, 1985. In response to a request made at oral arguments, plaintiff supplied this Court with a copy of a second contract, effective between October 1, 1985, and September 30, 1987, as well as an addendum to the second contract which, while not specifically extending the effective date of the second contract, obligates the department to compensate defendant through September 30,1988, for services rendered.
Defendant’s application to the Department of Buildings and Safety Engineering for a permit to expand its facilities to include a correctional institute was denied in a decision dated February 11,1985, and in a decision dated April 16, 1985, the Detroit Board of Zoning Appeals affirmed the department’s denial. In a decision dated October 8, 1985, the board reaffirmed its earlier decision. Finally, in a letter dated August 19, 1985, the board — after having once again considered a request, this time having been filed not by defendant but by Edward Davis Associates — dismissed the case with prejudice because "[t]he petitioner failed to present evidence to show that the further expansion, enlargement, and concentration of other non-conforming uses would not be injurious and/or detrimental to the industrial area” and because "[t]here would be an overuse of the property by adding the additional proposed use.”
The consent to substitution signed by defendant’s first attorney of record was undated. However, the notice of appearance filed by defendant’s new counsel was dated September 30, 1986, and, as already noted, the order for substitution by consent was issued on October 16, 1986. | [
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Per Curiam.
Cross-plaintiff, City of Fraser, appeals as of right from a November 3, 1986, order granting the city prejudgment interest from September 28, 1982, the date that the city entered into a settlement with the original plaintiffs, rather than July 7, 1977, the date that the city filed its cross-complaint for indemnification against cross-defendant, Golcheff Brothers Excavating Company. We affirm.
The facts are not in dispute. A contract was entered into between the city and Golcheif Brothers for the construction of a sewer line in the City of Fraser. The contract contained an indemnification clause in which Golcheif Brothers agreed to indemnify the City of Fraser for injuries and damages sustained by third parties as a result of the conditions of the construction project.
On May 10, 1975, Mark McDaniel, a minor, was injured in an accident which occurred while he was riding his bicycle on a city sidewalk. At the time of the accident, the sidewalk had not yet been fully restored from the sewer line construction project. George McDaniel, individually and as next friend of his minor son, Mark, filed suit against the Macomb County Board of Road Commissioners, the city, and Golcheff Brothers.
The city filed a cross-complaint for indemnification against Golcheff Brothers on July 7, 1977. In settlement of plaintiff’s claims against the city, on September 28, 1982, the city paid plaintiff $50,000. The city then proceeded on its cross-complaint for indemnification against Golcheff Brothers.
In an opinion dated April 10, 1984, the trial court found in favor of the city’s indemnification claim. On May 21, 1984, the trial court entered a judgment in favor of the city in the amount of $74,631.46, which included costs and attorney fees incurred by the city in defense of the underlying negligence claim. Golcheff Brothers appealed to our Court. We affirmed the trial court’s judgment. See McDaniel v Macomb Co Bd of Road Comm’rs, unpublished opinion per curiam of the Court of Appeals, decided May 7, 1986 (Docket No. 82720).
On remand to the trial court, Golcheff Brothers filed a motion to compel satisfaction of the judgment, arguing that prejudgment interest should be calculated from the settlement date (September 28, 1982) rather than the date of the filing of the cross-complaint (July 7, 1977). On September 11, 1986, in a written opinion, the trial court determined that statutory prejudgment interest should be calculated from the settlement date. On November 3, 1986, the trial court entered an order and awarded the city a final judgment of $114,465.54. The city appealed.
The sole issue for our determination is whether the trial court erred in calculating prejudgment interest from the date of settlement rather than from the date of the filing of the cross-complaint.
The city argues that, pursuant to the plain language of MCL 600.6013(1) and (2); MSA 27A.6013(1) and (2), prejudgment interest should be awarded from the date that it filed its cross-complaint. MCL 600.6013(1) and (2); MSA 27A.6013(1) and (2) provide:
Interest shall be allowed on a money judgment recovered in a civil action, as provided in this section, except that for complaints filed on or after October 1, 1986, interest shall not be allowed on future damages from the date of filing the complaint to the date of entry of the judgment. As used in this subsection, "future damages” means that term as defined in section 6301.
For complaints filed before June 1, 1980, in an action involving other than a written instrument having a rate of interest exceeding 6% per year, the interest on the judgment shall be calculated from the date of filing the complaint to June 1, 1980, at the rate of 6% per year and on and after June 1, 1980, to the date of satisfaction of the judgment at the rate of 12% per year compounded annually.
The purpose of an award of interest under the statute is to compensate the prevailing party for the expenses incurred in bringing an action and for the delay in receiving money damages. Stewart v Isbell, 155 Mich App 65, 79-80; 399 NW2d 440 (1986). Generally speaking, interest on a money judgment is allowed "from the date of filing the complaint” to "the date of satisfaction of the judgment.” Matich v Modern Research Corp, 430 Mich 1, 7; 420 NW2d 67 (1988); Om-El Export Co, Inc v Newcor, Inc, 154 Mich App 471, 481; 398 NW2d 440 (1986), lv den 426 Mich 878 (1986).
Under certain circumstances, this Court has held that prejudgment interest should be awarded only from the date that defendant began delaying payment, when the delay was subsequent to the commencement of the action. McLouth Steel Corp v A E Anderson Construction Corp, 48 Mich App 424; 210 NW2d 448 (1973), lv den 391 Mich 754 (1973); Foremost Life Ins Co v Waters (On Remand), 125 Mich App 799; 337 NW2d 29 (1983).
In McLouth Steel, supra, judgment was entered against McLouth in favor of the original plaintiff, an employee of Anderson. During the original action, McLouth filed a third-party complaint against Anderson for indemnification. After the employee received a judgment against McLouth, McLouth sought indemnification from Anderson for the amount of the judgment. McLouth prevailed. The trial court ordered that the indemnification award bear prejudgment interest from the date of the original judgment against McLouth rather than the earlier date of McLouth’s third-party complaint. On appeal, this Court affirmed the trial court’s disposition and stated:
Although MCLA 600.6013; MSA 27A.6013, indicates interest on money judgments is to be awarded from the date of filing the complaint, we hold the modification ordered by the trial judge which would allow interest to accrue from the date of judgment against McLouth was proper. The purpose of an action seeking indemnification is to restore to the indemnitee that amount which he has paid which another ought to have paid.
The amount for which the indemnitor is liable is necessarily determined by the judgment sustained by the indemnitee, which amount would then include interest payable to the original plaintiff from the date of the filing of his complaint, pursuant to MCLA 600.6013, supra. That portion of time between the filing of the third-party complaint by the indemnitee was therefore already burdened by statutory interest in this case. In such a setting it is proper not to further augment the indemnitor’s liability by adding more interest to an amount that had not yet been determined nor paid out by the indemnitee. See Vannoy v City of Warren, 26 Mich App 283; 182 NW2d 65 (1970), aff'd, 386 Mich 686; 194 NW2d 304 (1972). [Emphasis in original. 48 Mich App 432.]
In this case, the trial court’s judgment, which included prejudgment interest from the settlement date (September 28, 1982) rather than the date of the filing of the cross-complaint (July 7, 1977), was proper. The City did not sustain any injury or detriment until it paid out to the plaintiff in the underlying action. In addition, the trial court’s judgment included costs and attorney fees incurred by the city in defending the underlying action. Therefore, on the authority of McLouth Steel, supra, and its progeny, the trial court’s judgment of $114,465.54 is affirmed.
Affirmed. | [
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Per Curiam.
Defendant Joan E. Burke appeals as of right from the circuit court’s order granting plaintiff attorney fees. Defendant and plaintiff Richard T. Burke were married on August 17, 1963. They had two children, the youngest of whom, Carolyn, was still a minor when the parties filed for divorce. Plaintiff filed for divorce on June 11, 1982, and defendant counterclaimed for divorce in September. A bench trial was held in February, 1986, and the divorce judgment ordered plaintiff to pay child support in the amount of $200 a week to defendant. These payments were to commence on February 28, 1986, and terminate on June 6, 1986. The trial court’s judgment granted child support past Carolyn’s eighteenth birthday, until the date of her high school graduation, in compliance with MCR 3.209(B)(1)(b).
On July 21, 1986, defendant filed objections to plaintiff’s proposed judgment. One of the objections stated that the child support provisions did not comply with the requirements of MCR 3.209(B)(1)(b), which provides:
(1) A support order or final judgment must
(b) provide for payment for a child until the child réaches the age of majority or graduates from high school, whichever is later, or, in exceptional circumstances, until further order of the court ....
On August 4, 1986, at a hearing to settle judgment, the trial court refused to include the language of MCR 3.209(B)(1)(b) in the divorce judgment. Á divorce judgment was finally entered on October 13, 1986, which did not quote or cite MCR 3.209(B)(1)(b).
On November 13, 1986, defendant’s counsel, Robert J. Barnard, Jr., against her wishes, filed a motion to preserve the issue for appeal or to preserve jurisdiction. Defense counsel requested that the judgment be amended to retain jurisdiction over the matter of child support and to preserve the issue of plaintiffs responsibility for Carolyn’s college expenses.
A hearing on defense counsel’s motion was held on December 8, 1986. At this hearing, plaintiff moved for an award of attorney fees. The trial judge requested plaintiffs counsel to submit a bill of costs and fees to defendant and to the court. On January 16, 1987, an evidentiary hearing was held on ¡plaintiffs request for fees and costs. The trial court denied defendant’s motion and granted plaintiffs motion for attorney fees in the amount of $900. The order assesses these fees against defense counsel Barnard, as the signatory and not against defendant. MCR 2.114(E).
In Michigan, costs and attorney fees are not allowed unless expressly authorized by statute, court rule or judicially created exception. Warren v McLouth Steel Corp, 111 Mich App 496, 507; 314 NW2d 666 (1981).
MCR 2.114(B) requires that every pleading of a party represented by an attorney shall be signed by at least one attorney of record. By signing the pleading, the signatory certifies that
(1) he or she has read the pleading;
(2) to the best of his or her knowledge, information, and belief formed after reasonable inquiry, the pleading is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; and
(3) the pleading is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. [MCR 2.114(D).]
If the pleading is signed in violation of MCR 2.114(D), MCR 2.114(E) provides:
If a pleading is signed in violation of this rule, the court, on the motion of a party or on its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, including reasonable attorney fees.
MCR 2.113(A) makes the provisions of MCR 2.114 applicable to both motions and affidavits.
In this case, plaintiff moved for an award of attorney fees pursuant to MCR 2.114(E). The trial judge granted plaintiff’s motion because he found that, on the facts as presented, defense counsel was attempting to litigate an abstract legal ques tion without his client’s approval. Defendant had expressly stated that she did not want the issue argued. After review of the record, we find that the trial court’s findings are not clearly erroneous.
Throughout the negotiations about the language of the divorce judgment, defense counsel attempted to get plaintiff to agree to inclusion of the "exceptional circumstances” language of MCR 3.209(B)(1)(b) in the child support provision. Plaintiff refused to do so. Defense counsel also attempted to get the trial judge to order this language included in the child support provisions. The trial court also refused to do this. At this point, the issue was properly preserved for appellate review, or defendant could have sought reconsideration in the trial court. Defendant did neither. In fact, defendant expressly informed defense counsel that she did not wish to pursue an appeal or take any postjudgment action, and defense counsel so stated in his motion.
Contrary to defendant’s wishes, defense counsel filed his motion to preserve the issue for appeal or to preserve jurisdiction. Defense counsel lacked authority to bring this postjudgment motion. Defense counsel’s motion stated that the motion was brought "to protect his client and . . . without charge to her so that in the event the law is changed in Smith v Smith, or other appellate cases, she may secure to herself and to the college student benefit of such decision, if favorable.”
The record reveals that defense counsel is a former president of the Family Law Section of the State Bar of Michigan and that he believes the appellate courts of this state have repeatedly erred in their rulings that a trial court lacks authority to order a party to pay college costs as child support once a child has reached the age of eighteen. Defense counsel feels very strongly about this issue and argues it frequently. The record supports the conclusion that defense counsel acted contrary to his client’s express wishes because of his personal desire to change Michigan law as regards child support and the payment of college costs. We conclude, therefore, that defense counsel’s motion was not well grounded in fact and that an award of attorney fees was appropriate pursuant to MCR 2.114(E).
Affirmed. | [
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Doctoroff, J.
Defendant appeals as of right from a jury verdict awarding plaintiffs $50,000 in damages as well as $36,511.54 in interest. We affirm.
This action arises out of the destruction by fire of a building that plaintiffs owned. Defendant had leased the premises from plaintiffs since 1962, and at the time the building was destroyed, the parties were operating under a lease agreement that had been executed in 1977.
Paragraph 5 of the lease provides:
In addition to the rentals hereinbefore specified, the Tenant agrees to pay as additional rental all premiums for insurance against loss by fire on the premises and on the improvements situated on said premises.
The parties obliterated the words contained in paragraph 13 of the standard lease contract and replaced that provision by paragraph 13 of an addendum to the lease which provides:
Tenant shall be responsible for making all repairs to the interior and exterior of the premises including the exterior walls, roof, air conditioning and plumbing. In the event Tenant fails to promptly make repairs to the premises, the Landlord shall have the right to make such repairs and to invoice the Tenant for the full amount of said repairs, which amount shall then become additional rent due on the first of the following month.
In addition, Tenant shall keep the premises fully insured against fire and casualty and plate glass damage.
Following the building’s destruction by fire, which defendant has conceded that it negligently caused, plaintiffs received $225,000 from insurance and brought this action in order to recover the difference between that amount and the value of the building when it was destroyed.
Prior to trial, defendant filed a motion for summary disposition, MCR 2.116(C)(8) and (10), which was denied.
At trial, plaintiff Frank Stefani, who was also president and chief executive officer of defendant and who owned more than fifty percent of its stock, testified that it was his understanding that, pursuant to the lease, defendant was obligated to insure the building. He also stated that defendant paid the insurance premiums.
Defendant first claims that the trial court erred by denying its motion for summary disposition on plaintiffs’ negligence claim because there is no clause in the lease pursuant to which defendant unequivocally agreed to be liable to plaintiffs for fire damage due to its own negligence. Although the trial court did not specify the subsection of the court rule on which it based its decision, we find its denial of defendant’s motion to have been proper under both standards.
A motion for summary judgment pursuant to MCR 2.116(C)(8) is designed to test the legal sufficiency of the claim as determined from the pleadings alone. All factual allegations are accepted as true along with any inferences or conclusions which may fairly be drawn from them. The motion should be granted only where the claim is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recovery. Woody v Tamer, 158 Mich App 764, 766-767; 405 NW2d 213 (1987).
Summary disposition pursuant to MCR 2.116(0(10) tests the factual support for a claim. Maccabees Mutual Life Ins Co v Dep’t of Treasury, 122 Mich App 660, 663; 332 NW2d 561 (1983), lv den 417 Mich 1100.15 (1983). The test is whether the record which might be developed, giving the benefit of reasonable doubt to the opposing party, would leave open an issue upon which reasonable minds might differ. Rizzo v Kretschmer, 389 Mich 363, 371-373; 207 NW2d 316 (1973). In order to grant the motion under this subrule, the court must be satisfied that it would be impossible for the claim to be supported at trial because of some deficiency which cannot be overcome. Id.
Defendant based its motion on this Court’s decision in New Hampshire Ins Group v Labombard, 155 Mich App 369; 399 NW2d 527 (1986), lv den 428 Mich 911 (1987). In that case, an apartment occupied by the defendant-tenant was rendered uninhabitable by a fire allegedly caused by the negligence of defendant’s three-year-old daughter. Plaintiffs filed suit alleging negligence. Defendant moved for summary judgment for failure to state a claim, arguing that, as a matter of law, a tenant is not liable for fire damage caused by her own negligence. The trial court granted defendant’s motion.
This Court affirmed the decision of the trial court, holding:
We hold that, absent an express and unequivocal agreement by a tenant to be liable to the lessor or the lessor’s fire insurer in tort for negligently caused fire damage to the premises, the tenant has no duty to the lessor or insurer which would support a negligence claim for such damages. [Id., p 377.]
Defendant contends that, because there was no clause in the lease pursuant to which it consented to be liable for fire damage caused by its own negligence, it has no duty to plaintiffs which supports their claim. We disagree and find Labombard distinguishable from the present case, as did the trial court.
The Labombard Court seemed especially concerned about two interrelated factors: the provisions in the lease agreement about fire insurance and the expectations of the parties. The Court discussed the rights and obligations of the landlord and the tenant under the lease. Among the obligations of the tenant was an agreement to "observe all fire and other regulations imposed by any government authority, and all regulations and requirements of underwriters concerning the use and conditions of the premises so as to reduce fire hazards and insurance rates .... [I]f the premises became wholly untenantable through fire damage not due to defendant’s negligence, the agreement would be void.” Id., p 373. The Court then noted:
The rental agreement did not address the issue of defendant’s liability for fire damage to the premises resulting from her negligence. Cf., Nationwide Mutual Fire Ins Co v Detroit Edison Co, 95 Mich App 62; 289 NW2d 879 (1980), lv den 409 Mich 854 (1980). In similar situations, courts of other jurisdictions have ruled that defendant tenants are entitled to summary judgment. [Id., p 374.]
The Labombard Court also examined the intent of the parties in reaching its conclusion. As evidenced by the obligations assumed by the defendant-tenant, the Court determined that the agreement clearly evidenced the parties’ mutual expectation that fire insurance would be obtained by the lessor.
In the present case, the lease was not silent on the issue of fire insurance. Pursuant to the terms of the lease, defendant agreed to pay all premiums for insurance against loss by fire and agreed pursuant to the addendum to keep the premises fully insured against fire damage. Defendant could not reasonably believe that a portion of its rental payment was allocated to pay fire insurance premiums, contrary to the situation presented in Labombard. Therefore, while defendant did not expressly assume liability for fire damage caused by its own negligence, the lease was clear and unambiguous on the issue of defendant’s duty to maintain fire insurance. See Hull v Detroit Equipment Installation, Inc, 12 Mich App 532, 534; 163 NW2d 271 (1968).
Notwithstanding its broadly worded holding, therefore, Labombard does not apply to this case. The trial court thus did not err by denying defendant’s motion for summary disposition.
Defendant next claims that the trial court erred by refusing to instruct the jury that it was to determine whether defendant owed plaintiffs a duty.
In Friedman v Dozorc, 412 Mich 1, 22; 312 NW2d 585 (1981), our Supreme Court held:
In a negligence action the question whether the defendant owes an actionable legal duty to the plaintiff is one of law which the court decides after assessing the competing policy considerations for and against recognizing the asserted duty.
See also Moning v Alfono, 400 Mich 425, 436-438; 254 NW2d 759 (1977).
Accordingly, the trial court did not err by refusing defendant’s request to submit to the jury the question whether a duty existed.
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Sawyer, P.J.
Plaintiff appeals from an order of summary disposition entered in favor of defendants on plaintiff’s claim for legal malpractice. A number of procedural defects exist in this case, rendering appellate review difficult. However, for the reasons discussed below, we affirm.
Briefly, defendants represented plaintiff in a sale of a business to a former partner of plaintiff. The sale was for the amount of $267,000, to be paid in installments, and involved a transfer of stock in a corporation. The purchaser subsequently went bankrupt prior to full payment of the purchase price, and the purchaser’s debt to plaintiff was discharged in bankruptcy. Plaintiff filed the instant malpractice claim, alleging that defendants committed malpractice by failing to properly secure his interest as a creditor in the shares of stock involved in the purchase transaction. Defendants moved for summary disposition pursuant to MCR 2.116(C)(7), arguing that the applicable period of limitation had expired. Following a hearing on the motion, the trial court granted summary disposition because "there is no genuine issue of any material fact.” See MCR 2.116(0(10). Thereafter, plaintiff moved for reconsideration, which was denied on the basis "that there still is no genuine issue of any material fact.” Neither the order of summary disposition nor the order denying reconsideration makes any reference to the period of limitation or to the fact that the motion had been brought under MCR 2.116(C)(7) on the basis of the running of the period of limitation. To complicate matters, plaintiff has failed to secure the transcription of the record of the hearing on the motion for summary disposition, thus rendering it impossible for us to determine how the motion for summary disposition based upon the statute of limitations mysteriously turned into a motion for summary disposition for no genuine issue of material fact. We can only speculate that the trial court was of the opinion that there was no genuine issue of material fact relative to the date on which the period of limitation began to run.
Given plaintiff’s failure to secure a transcript of the motion hearing, we are unable to review the trial court’s decision to determine if it erred in concluding that the applicable period of limitation had run since, without the necessary transcript, we have no way of knowing the basis of the trial court’s ruling. We believe it inappropriate to conclude that the trial court was wrong when we do not even know the trial court’s reasoning or have benefit of reviewing the arguments made before the trial court at the motion hearing. See Harvey v Gerber, 153 Mich App 528, 530-531; 396 NW2d 470 (1986).
Because plaintiff filed with his claim of appeal an affidavit which asserted that a transcript was unnecessary, a brief discussion of plaintiff’s obligation to actually secure the transcript is in order. The record on appeal consists of, inter alia, "the transcript of any testimony or other proceedings in the case appealed.” MCR 7.210(A)(1). Furthermore, the appellant has a duty to file with the trial court "the full transcript of testimony and other proceedings in the trial court,” except as otherwise provided. MCR 7.210(B)(1)(a). In an appeal from an action in circuit court, the production of the full transcript of all proceedings is excused where a motion is brought in the trial court to order that less than a full transcript, or no transcript at all, be included in the record on appeal, where the parties stipulate that a portion less than the full transcript, or no transcript at all, be filed or where the parties agree to submit the appeal on stipulated facts without the procuring of a transcript, with the agreement being signed by both parties and filed in the trial court in lieu of the transcript of testimony. Additionally, there are procedures to settle a record where a proceeding was transcribed by a court reporter, but the parties are unable to obtain a transcript from the reporter. MCR 7.210(B)(2). Notwithstanding these procedures, plaintiff did not employ any of the methods under MCR 7.210(B)(1) to excuse the filing of less than the full record on appeal, nor is there any indication that the transcript of the proceedings on the motion for summary disposition is unavailable. Rather, it appears that plaintiff erroneously believed that he was not obligated to order a transcript of the summary disposition hearing.
The affidavit filed by plaintiff’s counsel, although not citing to a court rule, appears to have been filed under the provisions of MCR 7.204(C)(2), which requires the filing of either a copy of the certificate of the court reporter that a transcript has been ordered or a statement by the attorney that there is no record to be transcribed. However, plaintiffs counsel erred, as discussed above, in his determination that there was no transcript to be ordered. The error appears to have arisen from counsel’s mistaken belief as to which order was being appealed. The claim of appeal states that the appeal is from the order denying the motion for reconsideration of the grant of summary disposition.
In fact, a claim of appeal is taken from the final order, which in this case is the order granting summary disposition. See MCR 7.203(A). An order denying reconsideration is not a final order from which one may appeal as of right; rather, where a motion for reconsideration has been timely filed, as it was in the case at bar, a person may file his claim of appeal within twenty-one days after the entry of the order denying the motion, rather than twenty-one days after the final order from which one may appeal as of right. See MCR 7.204(A)(1)(a) and (b). Thus, the order denying reconsideration, albeit the last order in the file, is not the final order from which plaintiff may take an appeal as of right; its only significance for the purpose of the appeal being that, since the motion for reconsideration was timely filed, it serves as the triggering event for the twenty-one day period in which plaintiff could file his timely claim of appeal. Apparently, although plaintiff stated the wrong order in his claim of appeal, this Court accepted the appeal as if it had been claimed from the order of summary disposition, since it appears that the claim of appeal was in all other respects correct, other than the labeling of the order being appealed.
Apparently, plaintiff’s counsel, believing that the order being appealed was the order denying the motion for reconsideration which had been submitted on briefs, filed the statement because there was no transcript from the motion for reconsideration and, therefore, believed that the transcript was unavailable. However, although this is true, that does not excuse plaintiff from producing the rest of the record, specifically the transcript on the motion for summary disposition. Indeed, even if plaintiff could properly bring an appeal as of right from the order denying the motion for reconsideration (which he could not), he would nevertheless be obliged to provide a transcript of all proceedings, including a transcript of the hearing on the motion for summary disposition. As discussed above, the obligation to produce a transcript of the proceedings below is not limited to a transcript of the proceedings on the specific order being appealed from. Rather, unless one is excused from producing the entire transcript under the provisions of MCR 7.210(B)(1), a transcript of all proceedings must be supplied, even where it does not appear that a particular transcript of a particular proceeding is directly relevant to the issues on appeal.
For the above reasons, we limit our review to what is presented on appeal and conclude that we are unpersuaded that the trial court erred in determining that the period of limitation had run. See Harvey, supra.
Affirmed. Defendants may tax costs.
MCR 7.210(B)(1)(c).
MCR 7.210(B)(1)(d).
MCR 7.210(B)(1)(e).
In fact, in addition to attaching a copy of the order denying reconsideration, plaintiff also attached a copy of the order of summary disposition to his claim of appeal, along with an affidavit setting forth the relevant dates which established the timeliness of his appeal. Thus, plaintiff did provide this Court with sufficient information to accept the filing of the appeal.
Indeed, where a party believes that a transcript of certain proceedings, or of all of the proceedings, is irrelevant to the issues on appeal, he may seek to be excused from producing the full transcript under the provisions of MCR 7.210(B)(1). However, it is never sufficient for that party to merely file a statement that a transcript is unnecessary. As discussed above, a party is excused from producing the entire transcript only upon order of the court or by stipulation of the parties. | [
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W. R. Peterson, J.
Defendant appeals as of right from a 1987 postjudgment order which modified a 1976 judgment of divorce to grant plaintiff weekly alimony of $137. The original judgment had expressly reserved the question of alimony for plaintiff and the propriety of the award is not challenged either as to the jurisdiction of the court to make the postjudgment award or as to the need of the plaintiff for alimony.
The sole question presented is whether the trial court in making the alimony award could take into consideration the defendant’s retirement in come when the prior consent judgment, incorporating the property settlement of the parties, had awarded his "retirement benefits” to him as part of the property settlement.
The original judgment of divorce, in addition to the provision reserving the question of alimony, contained within its property settlement terms the provision that each party should "receive as [his/ her] sole and separate property free from any and all claims of [the other], all of the following: . . . [a]ll cash, bank accounts and retirement benefits in [his/her] possession or to which [he/she] is entitled.” Plaintiff had no retirement plan, but defendant was retired from federal employment and was, at that time, receiving approximately $15,000 per year in retirement benefits. The judgment also required that defendant continue plaintiff as the beneficiary under his retirement plan and under certain life insurance policies, such designation to be irrevocable until the death or remarriage of plaintiff, and further provided that the court was to have continuing jurisdiction for the purpose of enforcing that provision of the judgment.
Defendant did not attend the hearing in the trial court and had refused to provide information regarding his financial affairs. Some information had been obtained from him by deposition and this, together with the evidence offered by plaintiff, established that defendant had admitted to income in 1984 in excess of $22,000; that defendant at unspecified times after retirement had part-time jobs; that defendant also received social security benefits in an unspecified amount; that defendant had over $20,000 in bonds; and that defendant had not designated plaintiff as beneficiary on his retirement plan and on the life insurance policies as required by the divorce judgment.
Pursuant to MCL 552.23; MSA 25.103, the trial court considered the various factors pertinent to an award of alimony, Charlton v Charlton, 397 Mich 84; 243 NW2d 261 (1976), which includes the income and the income-producing abilities of the parties. In doing so, the court included defendant’s retirement income as bearing on defendant’s ability to pay. This, defendant claims, was error and violative of the rule that consent judgments may not be modified absent fraud, mutual mistake, or unconscionable advantage. Since the retirement benefits were awarded to defendant as part of the agreed property settlement, he argues, those benefits cannot now be considered in fixing alimony. Defendant cites Walker v Walker, 155 Mich App 405, 407; 399 NW2d 541 (1986), where the Court said:
In the instant case, plaintiff consented to a judgment of divorce which awarded defendant’s pension benefits to him as property. Both plaintiff and the court are now bound by that settlement. The defendant’s pension cannot now be recategorized as income in determining his ability to pay alimony. To hold otherwise would violate the binding divorce judgment as well as the equitable principles upon which divorce actions are based. See Ripley v Ripley, 112 Mich App 219, 227; 315 NW2d 576 (1982).
We think that whether Walker is applicable in a given case depends on what was actually the subject of the property settlement, the retirement plan or the benefits payable therefrom. We know of no authority which, given the division of assets between the parties, would foreclose a court from considering the income produced by any particular asset as bearing on the need for alimony of the party receiving the asset or the ability of that party to pay alimony. It would be the height of absurdity to suggest that a spouse, to whom income-producing property was awarded in a property settlement, would be entitled to have his or her need for alimony, or ability to pay alimony, determined without regard to the income produced by that property.
Where it is the periodic benefits payable under a retirement plan rather than the plan itself which is considered as a marital asset and divided under the property settlement, as in Chisnell v Chisnell, 82 Mich App 699; 267 NW2d 155 (1978), lv den 403 Mich 844 (1978), cert den 442 US 940 (1979), reh den 444 US 887 (1979), the rule against altering property settlements applied in Walker might bar consideration of those benefits in a future award or modification of alimony. If, however, the retirement plan itself is treated as a marital asset, there is no reason why the benefits thereafter derived therefrom should not be considered in determining the need for, or the ability to pay, alimony.
Facially at least, the 1976 judgment herein seems to have dealt with benefits rather than the retirement plan as a marital asset. Since the same language was used to refer to plaintiffs nonexistent "retirement benefits,” it may be believed that this language of the judgment represents a careless use of "boiler plate form.” That conclusion is inescapable when the judgment as a whole is read in light of the fact that defendant was receiving retirement benefits when the judgment was granted. The trial judge correctly concluded that under those circumstances the express reservation of alimony had to be taken as contemplating that the retired defendant’s retirement income would be considered in any future determination of alimony. While the agreements of the parties as to property may be binding, the construction of those agreements is for the court. Greene v Greene, 357 Mich 196; 98 NW2d 519 (1959).
Affirmed.
While defendant’s brief argues that there was no compelling evidence to justify alimony, the issue was not disputed in the trial court and plaintiff’s testimony was uncontradicted. Were plaintiff’s need an issue, we would vacate or modify the award made by the trial judge only if on de novo review we were persuaded that we must arrive at a different result. Boyd v Boyd, 116 Mich App 774; 323 NW2d 553 (1982). The evidence herein as to plaintiff’s deteriorating health and reduced income amply justify the findings of the trial judge and his award based thereon.
Hilley v Hilley, 140 Mich App 581; 364 NW2d 750 (1985); Greaves v Greaves, 148 Mich App 643; 384 NW2d 830 (1986).
And see Keen v Keen, 160 Mich App 314; 407 NW2d 643 (1987); Boyd, n 1, supra; Perry v Perry, 133 Mich App 453; 350 NW2d 275 (1984). | [
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Per Curiam.
Plaintiffs Cecil Portice and Robert Calvin Hall appeal as of right from an order entered by the Otsego Circuit Court which granted summary disposition to defendants pursuant to MCR 2.116(C)(8). The circuit court entered the order based on its belief that plaintiffs had not stated a claim for contribution in avoidance of governmental immunity against defendants.
On November 20, 1984, Otsego County Deputy Sheriff Marcia Ann Jelinek responded to a camper fire on southbound 1-75. Upon arriving at the scene, she stopped the flow of traffic in the southbound lanes. Hall, driving a semi-trailer owned by Portice and carrying logs, was unable to stop when confronted with the backed-up traffic and collided with several cars. Two motorists were killed. Plaintiffs settled with the estates of the two de ceased motorists. Defendants took no part in the settlement negotiations.
Thereafter, plaintiffs filed a complaint seeking contribution from defendants. Defendants responded with a motion for summary disposition pursuant to MCR 2.116(C)(7), (8) and (10), arguing that governmental immunity barred plaintiffs’ claims. The circuit court opined that the actions attributed to Deputy Jelinek by plaintiffs’ amended complaint did not constitute the creation of an intentional nuisance and, further, that the acts were discretionary rather than ministerial. Accordingly, the circuit court concluded that the deputy and the other defendants were entitled to governmental immunity.
Plaintiffs attempt to impose vicarious liability on defendants Otsego County Sheriff’s Department and Otsego County Sheriff for the actions of Deputy Jelinek. We find that the circuit court’s grant of summary disposition on the vicarious liability claims was appropriate.
The circuit court granted summary disposition pursuant to MCR 2.116(C)(8). A motion brought pursuant to this court rule is tested by the pleadings alone. Unless the claim is so clearly unenforceable as a matter of law that no factual development could possibly justify a right to recovery, the motion should be denied. Martin v Michigan, 129 Mich App 100, 104-105; 341 NW2d 239 (1983), lv den 422 Mich 891 (1985).
Where a plaintiff alleges that a governmental agency is vicariously liable for the torts of its officers, employees or agents, this liability is premised on the employer-employee or principal-agent relationship which exists between the entity and the individual tortfeasor. Ross v Consumers Power Co (On Rehearing), 420 Mich 567; 363 NW2d 641 (1984). Generally, liability under respondeat supe rior can be imposed only where the individual tortfeasor acted during the course of his employment and within the scope of his authority. If either of these conditions is not met, a governmental entity cannot be held vicariously liable. Ross, supra. However, the doctrine of respondeat superior does not apply to make a sheriff liable for the acts of his deputies. Bayer v Macomb Co Sheriff, 29 Mich App 171, 174; 185 NW2d 40 (1970); MCL 51.70; MSA 5.863. Neither can vicarious liability be imposed, as a matter of law, on the county sheriffs department for the acts of a deputy. Bayer, supra, p 175; Const 1963, art 7, § 6.
Accordingly, no factual support could possibly justify a right to recovery by plaintiffs as against defendants Otsego County Sheriff’s Department and Otsego County Sheriff. The circuit court based its grant of summary disposition on the governmental immunity provided in MCL 691.1407; MSA 3.996(107). This Court affirms the trial court’s decision because it reached the right result albeit for the wrong reason. DeWitt Twp v Clinton Co, 113 Mich App 709, 713; 319 NW2d 2 (1982).
Plaintiffs also attempt to impose individual liability on Deputy Sheriff Jelinek. In Ross, supra, pp 633-634, our Supreme Court stated:
[J]udges, legislators, and the highest executive officials of all levels of government are absolutely immune from all tort liability whenever they are acting within their judicial, legislative, or executive authority. Lower level officials, employees, and agents are immune from tort liability only when they are
1) acting during the course of their employment and acting, or reasonably believe they are acting, within the scope of their authority;
2) acting in good faith; and
3) performing discretionary, as opposed to ministerial acts.
In response to defendants’ motion for summary disposition as to defendant Jelinek, plaintiffs did not assert Jelinek was acting outside the scope of her authority or in bad faith. Instead, plaintiffs claimed that liability could be imposed on Jelinek because her actions were ministerial rather than discretionary. The circuit court ruled that the deputy’s actions were a connected series of discretionary decisions based upon the officer’s perception of what the exigencies of the circumstances confronting her required. We agree.
In Ross, supra, p 634, our Supreme Court defined discretionary acts as those which require personal deliberation, decision and judgment. Ministerial acts, on the other hand, are those which constitute merely obedience to orders or the performance of a duty in which the individual has little or no choice. The Ross Court specifically discussed the application of the discretionary/ministerial acts distinction with regard to police officers:
Police officers, especially when faced with a potentially dangerous situation, must be given a wide degree of discretion in determining what type of action will best ensure the safety of the individuals involved and the general public .... The determination of what type of action to take ... is a discretionary-decisional act entitled to immunity. Once that decision has been made, however, the execution thereof must be performed in a proper manner. [Ross, supra, pp 659-660.]
In the instant case, plaintiffs’ allegations of negligent conduct addressed conduct which was clearly discretionary in nature. The actions taken by Deputy Jelinek in response to the emergency situation were alleged by plaintiffs to be negligent. Plaintiffs alleged that the way Jelinek responded to the emergency was negligent; plaintiffs do not allege that Jelinek’s decision as to how to respond was not appropriate, but that it was negligently carried out. Consequently, plaintiffs’ complaint did not allege acts which were ministerial in nature. Plaintiffs’ complaint failed to state a claim against defendant Jelinek.
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Per Curiam.
Defendant was charged with assault with intent to rob while armed, MCL 750.89; MSA 28.284. At the conclusion of a one-day waiver trial, defendant was found guilty of attempted assault with intent to rob while armed and was subsequently sentenced to a term of 1 to 2½ years in prison. Defendant now appeals as of right from that conviction, seeking peremptory reversal of his conviction on the basis that he was convicted of a nonexistent crime.
On April 29, 1986, at about 10:30 p.m., Yemi Akintunde was working at Church’s Chicken on Gratiot in the City of Detroit. A man, whom she later identified as defendant, entered the restaurant and asked her for a glass of water. She gave him a cup of ice and told him he could get water from the restroom. He went outside, then came back and spent some time talking with another employee. A few minutes later he came back to the window with a brown paper bag over his hand and pointed the bag at Akintunde. He said, "Open the cash register.” She told defendant that she did not know how to open the register. Akintunde testified that, although she never saw a gun, she thought that defendant had a gun by the way he pointed the bag at her, and she was afraid. Akintunde’s friend knocked on the back door and, with defendant’s permission, Akintunde opened the door. Akintunde, the manager, and the other employee all left the building and ran to the Farmer Jack’s store nearby and called the police. They returned minutes later when they saw the police had arrived. The police had defendant and another man lying on the ground outside.
Defendant claims there is no such crime in Michigan as attempted assault with intent to rob. An "attempt” to commit a crime is defined by statute as follows:
Any person who shall attempt to commit an offense prohibited by law, and in such attempt shall do any act towards the commission of such offense, but shall fail in the perpetration, or shall be intercepted or prevented in the execution of the same, when no express provision is made by law for the punishment of such attempt, shall be punished .... [MCL 750.92; MSA 28.287.]
For years it was undisputed in the case law that there could be no attempted assault because assault was defined "as an attempt or offer, with force and violence, to do bodily hurt to another with a present means of accomplishing the hurt.” People v Patskan, 29 Mich App 354, 357; 185 NW2d 398 (1971), rev’d on other grounds 387 Mich 701; 199 NW2d 458 (1972). Therefore, an attempted assault would amount to an attempt to attempt or offer. Because this made no sense, several panels of this Court determined that there could be no crime of attempted assault. People v Richard Banks, 51 Mich App 685; 216 NW2d 461 (1974); People v Maxwell, 36 Mich App 127, 128; 193 NW2d 176 (1971). Our Supreme Court, in Patskan, declined to decide whether, under any circumstances, there could be an attempted assault, because such a determination was not necessary to its decision of the issue in that case. Patskan, 387 Mich 711.
The Michigan Supreme Court case of People v Joeseype Johnson, 407 Mich 196; 284 NW2d 718 (1979), defined assault as either (1) an attempt to commit a battery or (2) an unlawful act which places another in reasonable apprehension of receiving an immediate battery. The latter type of assault can be "attempted.” People v Etchison, 123 Mich App 448, 453; 333 NW2d 309 (1983), lv den 417 Mich 1100.14 (1983).
In the case at bar, defendant behaved in a manner which reasonably caused Akintunde to believe that he had a gun in the paper bag, causing her to fear him. Under these circumstances, we believe that a defendant could attempt (without success) to commit an unlawful act which places another in reasonable apprehension of receiving an immediate battery. We therefore affirm defendant’s conviction for attempted assault with intent to rob while armed.
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Wahls, P.J.
Plaintiffs, Frederick W. Schefsky, Jr., and his wife, Lea Schefsky, appeal as of right from an October 21, 1986, order of the Wayne Circuit Court granting summary disposition under MCR 2.116(C)(4) in favor of defendant The Evening News Association (ena). We affirm.
The record reveals that on April 1, 1986, plaintiffs filed suit against ena and ten other companies for injuries suffered by Frederick W. Schefsky, Jr. (plaintiff), alleged to have been caused by the inhalation of toxic chemical fumes while at work. Specifically, plaintiff, employed as a pressman for ena, claimed to have sustained chemical asthma as a result of having used certain solvents during the course of his employment while attempting to clean printing presses. Plaintiffs asserted in their complaint that defendant knew these solvents were dangerous, especially when used in confined areas, but withheld this information from plaintiff by removing the solvents from their original containers, to which were attached pertinent warning labels.
On June 27, 1986, ena moved for summary disposition under MCR 2.116(C)(4) — lack of subject matter jurisdiction — on the basis that the exclusive remedy provision of the Workers’ Disability Compensation Act, MCL 418.131; MSA 17.237(131), protected it from liability for plaintiff’s injuries. On August 26, 1986, plaintiffs moved to amend their complaint to "conform with [their] new discovery” that certain of "defendant’s acts were extreme and outrageous thereby contributing [sic] an intentional tort” and to allege a breach of contract based on ena’s failure to have provided safe working conditions. Ena asserted, in response, that any amendment to plaintiffs’ complaint would be futile because "all of plaintiff’s pending theories of recovery . . . fall squarely within the scope of the [exclusive remedy provision of the] wdca.” Hearings on ena’s motion were conducted on October 3 and 17, 1986. At the first hearing, the trial court granted summary disposition in favor of ena regarding plaintiffs’ original complaint. At the second hearing, the court granted plaintiffs’ motion to amend their complaint, and then granted summary disposition in favor of ena regarding plaintiffs’ amended complaint. An order reflecting the court’s action at these hearings was entered on October 21, 1986, and plaintiffs filed the instant appeal.
On appeal, plaintiffs first argue that the trial court erred in finding that their claim of intentional tort against ena was barred by the exclusive remedy provision of the wdca. That provision states that "[t]he right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer.” In an opinion released on December 23, 1986, the Supreme Court held that the exclusive remedy provision of the wdca does not bar an action by an employee for an intentional tort by an employer and that whether a tort was intentional should be determined by applying a "substantial certainty” standard, i.e., by discerning whether the employer intended the act that caused the injury and knew that the injury was substantially certain to occur. Beauchamp v Dow Chemical Co, 427 Mich 1; 398 NW2d 882 (1986). Plaintiffs, in their brief on appeal, maintain that they successfully pleaded facts in fulfillment of the Beauchamp standard.
After Beauchamp was decided, the Legislature amended the exclusive remedy provision of the wdca in 1987 PA 28, which was approved and filed on May 14, 1987, and ordered to take immediate effect. The amended provision, which specifically includes an exception for the intentional torts of employers, states:
The right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer for a personal injury or occupational disease. The only exception to this exclusive remedy is an intentional tort. An intentional tort shall exist only when an employee is injured as a result of a deliberate act of the employer and the employer specifically intended an injury. An employer shall be deemed to have intended to injure if the employer had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge. The issue of whether an act was an intentional tort shall be a question of law for the court. This subsection shall not enlarge or reduce rights under law.
Ena, in its brief on appeal, asserts, as a threshold matter, that the amended statutory language is retrospectively applicable in this case because it is both remedial and procedural in nature. We agree that the amendment should be applied in this case because it is remedial or procedural in nature. The amendatory language was apparently enacted to clarify the legislative intent on a matter which, prior to Beauchamp, had created controversy at the appellate level of the judiciary in this state. See Beauchamp, supra, p 11, and cases cited therein. It is apparent to us that the amendatory language was prompted by the desire to correct or clarify the existing uncertainty regarding the original act. See Nelson v Roscommon Co Road Comm, 117 Mich App 125, 130; 323 NW2d 621 (1982); Romein v General Motors Corp, 168 Mich App 444; 425 NW2d 174 (1988). Moreover, the amended statute, by its own terms, specifies that "[t]his subsection shall not enlarge or reduce rights under law,” suggesting that the amendment is procedural in nature. A statute which operates in furtherance of a remedy already existing and which neither creates new rights nor destroys existing rights is held to operate retroactively unless a contrary legislative intent is manifested. Allstate Ins Co v Faulhaber, 157 Mich App 164, 167; 403 NW2d 527 (1987); Joe Dwyer, Inc v Jaguar Cars, Inc, 167 Mich App 672, 681; 423 NW2d 311 (1988).
Applying the amendatory language to the case at bar, we find that the trial court did not err in granting summary disposition in favor of ena because plaintiffs did not plead that ena specifically intended to injure plaintiff, i.e., that ena had actual knowledge that an injury was certain to occur. Indeed, in their brief on appeal, plaintiffs concede that "[djefendant [ena] may not have specifically intended plaintiff’s illness.” Nor do plaintiffs assert that ena had actual knowledge that an injury, such as chemical asthma or any other serious or permanent respiratory disease, was certain to occur following exposure to the solvents used for cleaning ena’s presses. Indeed, in this regard, we observe that plaintiffs failed to meet even the "substantial certainty” standard set forth in Beauchamp. During the Beauchamp Court’s extended discussion on the meaning of "substantial certainty,” it used, among other examples, two cases in which a substantial certainty of injury could probably be found. 427 Mich 23-24. In both cases, the employers had received repeated warnings and complaints from employees or authorities regarding the danger certain work conditions posed to employees. These warnings and complaints, which served to put the employers on notice that a specific type of injury to an employee was virtually inevitable without corrective measures being taken, went unheeded. In the instant case, there were no such repeated warnings, and plaintiffs had not stated what, if any, warnings pertinent to this case were purportedly concealed by ena or otherwise known to it. In sum, we view plaintiffs’ pleading as setting forth a cause of action sounding in negligence which is barred by the exclusive remedy provision of the wdca.
Second, plaintiffs argue on appeal that the trial court erred in finding that their breach of contract cause of action is barred by the exclusive remedy provision of the wdca. In plaintiffs’ one-half-page brief on this issue, it is argued that an employer’s breach of its duty to provide safe working conditions "contravenes public policy, and is thus beyond the parameters of the wdca.” Although we are not averse in the proper case to cite public policy as a rationale for reaching a certain result, in the present case judicial precedent and statutory law preclude us from doing so. As already noted, the exclusive remedy provision of the wdca specifies that, with the sole exception of intentional torts, the benefits as provided in the act are the employee’s exclusive remedy for a personal injury or occupational disease. Thus, an employee cannot merely label his tort cause of action as a contract claim and expect to avoid the consequence of the exclusive remedy provision. Moreover, in Beauchamp, supra, pp 26-27, so heavily relied upon by plaintiffs in their claim of intentional tort, the Court stated:
The second issue presented is whether the exclusivity provision of the workers’ compensation act precludes a common-law civil action by an employee who alleges that his employer breached a contractual promise to provide safe working conditions.
A claim that an injury is caused by failure to provide safe working conditions is essentially a recasting in contract form of a claim that the employee was injured by the employer’s negligence. It is not even a recasting in contract form of an intentional tort. The workers’ compensation act provides a quid pro quo for accidental injury. Limited but certain compensation for accidental injuries caused by unsafe working conditions has been substituted for the right to sue for accidental injuries caused by unsafe working conditions. Allowing a civil action as well as compensation for an injury caused by failure to provide safe working conditions would alter the balance struck by the legislation.
The trial court granted defendant’s summary judgment motion regarding Beauchamp’s contract claim. The Court of Appeals reversed relying on its decision in Milton v Oakland Co. The Court of Appeals in Milton allowed a civil action for contract claims involving the right to recover for violations of the merit system, not for contract claims involving injuries covered by the workers’ compensation act. The Court of Appeals misinterpreted the holding in Milton. An allegation that an injury resulted from an employer’s failure to provide safe working conditions is exactly what is covered by the workers’ compensation act. It is essentially a claim that the employee was injured by the employer’s negligence. We hold that the "all-inclusive character of the exclusiveness principle results in barring actions for covered injuries even though the plaintiff casts his action in the form of a breach of some kind of contract.”
See also Benson v Dep’t of Management & Budget, 168 Mich App. 302; 424 NW2d 40 (1988). Although a claim based on the breach of an express contract to provide safe working conditions may survive a challenge based on the exclusive remedy provision, id.; Dagen v Village of Baldwin, 159 Mich App 620, 628; 406 NW2d 889 (1987), plaintiffs in this case have not alleged that ena expressly promised specifically to safeguard plaintiff from the inhalation of chemical fumes which could cause asthma or any other serious or permanent respiratory disease or injury or promised generally to provide plaintiff with safe working conditions. Thus, we conclude that plaintiffs failed to avoid the effect of the exclusive remedy provision of the wdca by way of setting forth an adequate claim for breach of contract.
Accordingly, we hold that the trial court did not err by granting summary disposition in favor of ENA.
Affirmed.
50 Mich App 279, 283-284; 213 NW2d 250 (1973).
2A Larson, Workmen’s Compensation Law, § 65.38, p 12-23. It is noteworthy that the common-law obligation, whether in tort or in implied contract, and the statutory miosha obligation to provide workplace safety are all obligations imposed by law. It is clear there is no private right of action for miosha violations. See, e.g., White v Chrysler Corp, 421 Mich 192, 199; 364 NW2d 619 (1984). We think, therefore, it is questionable, apart from the exclusivity provision, whether a claim of a workplace safety violation that might have been actionable before miosha would be presently actionable. To hold it to be actionable, would permit, somewhat by indirection, that which the miosha does not allow. | [
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Per Curiam.
Plaintiffs decedent, Bobby Fischer, was thrown overboard and drowned after the boat he was on struck a bridge that was in the process of being renovated. As a result, the decedent’s widow, Geraldine Fischer DeVoe, brought suit against defendants C. A. Hull, Inc., and the City of Saginaw in circuit court. DeVoe also filed suit in the Court of Claims against defendant Michigan Department of Transportation. On August 31, 1983, both cases were consolidated in circuit court and Circuit Judge Robert A. Gilbert was assigned to sit as the Court of Claims judge for all matters involving the Court of Claims action. Using a special verdict, on April 23, 1986, the jury returned a verdict of no cause of action in favor of C. A. Hull and the City of Saginaw. On April 30, 1986, the trial judge made findings of fact and rendered a verdict of no cause of action against defendant mdot. Plaintiff appeals as of right both verdicts. This Court has consolidated both of plaintiff’s appeals.
Prior to the accident, defendant city contracted with the mdot to dismantle the Johnson Street Bridge and build a new bridge at the same site. The bridge is located on the Saginaw River in Saginaw, Michigan. The mdot hired C. A. Hull as the general contractor in charge of dismantling the bridge. Before the bridge was taken apart, it had navigational aides on its span, including a green light that indicated a channel for boats to pass through and two red lights that marked the sides of the channel. The day of the accident, June 6, 1981, part of the top section of the bridge had been removed including the green and red lights. In addition, two of the bridge’s piers had been taken out and the contractor’s barge blocked two-thirds of the channel. On the barge there was a steady red light and a flashing yellow light and another red light was placed thirty-one feet west of the barge on an icebreaker pier.
On the day in question, at approximately 8:00 a.m., the decedent and his wife met Richard and Sue Wenzel at the marina where the Wenzel’s boat was docked. The Fischers and Wenzels had been out on the boat the weekend before and had passed through the bridge construction site. At about 9:00 a.m., the couples left the marina and commenced drinking beer from a keg which Wenzel had on his boat in a tub of ice.
They traveled to a nearby marina where DeVoe’s sister kept a boat. They visited for approximately forty-five minutes and proceeded to Wickes Park. Afterwards, they went to Ojibway Island and then to a restaurant and bar called Miller’s Landing at about 1:00 or 2:00 p.m. Sometime that morning, the Wenzels’ boat passed through the bridge construction site on the way out of Saginaw.
At about 3:00 p.m., the Fischers and Wenzels left the boat at the restaurant and went to a nearby party. Eugene and Dorothy Sturm were also at the party. Mr. Sturm saw Wenzel at the party and noticed that Wenzel was quite intoxicated. Wenzel’s speech was slurred and he lacked coordination. Sturm drove decedent and Wenzel to a nearby store so that Wenzel could purchase some parts for his boat. The men then returned to the party for about forty-five minutes.
At approximately 6:30 p.m., the Fischers, the Wenzels and the Sturms returned to Miller’s Landing. Sturm helped carry the Wenzels’ keg of beer back onto the boat. Apparently, the same keg had been taken to the party by Wenzel. Sturm indicated that there was still a good amount of beer left in the keg. Sturm and decedent worked on the boat’s engine while Wenzel socialized and continued to drink beer.
The entire group went for a boat ride out into Saginaw Bay. Mrs. Sturm testified to being a little frightened during the ride because Wenzel was driving too fast for the condition of the waves and making sharp turns. After the boat ride, the group went back to Miller’s Landing and ordered a pitcher of beer. At that time, Mrs. Sturm looked at Wenzel and noticed that his eyes were glazed and he was "very slow.”
Around 9:15 p.m., the men had a confrontation with the barmaid at the restaurant and were asked to leave. Everyone returned to the boat and had one more drink before the Sturms left. When the Sturms departed, it was beginning to get dark, but it was a clear night.
The Wenzels and Fischers then travelled to the Sands Bar. It took them approximately one hour to get there and they stayed for about thirty to forty-five minutes. They left the Sands Bar around 11:15 p.m. and proceeded south down the river towards Saginaw and the bridge. Wenzel drove the boat and decedent stayed next to the engine at the rear of the boat. Wenzel and decedent were discussing some mechanical problems with the boat while Wenzel increased and decreased the boat’s speed.
While Wenzel and decedent continued discussing the mechanical problems, Wenzel completely turned around and faced decedent. Plaintiff heard Wenzel suddenly exclaim, "Oh my God” and then the boat struck the bridge with a violent impact. The boat had veered right of the lighted channel and struck an unlighted pier of the bridge that was ninety feet west of the right side of the channel.
After the impact, plaintiff called for decedent but there was no response. Plaintiff then threw the beer barrel and the ice tub out of the boat. Plaintiff noticed that the barrel was not heavy. Decedent’s body was later found in the river. The cause of death was drowning.
Deputy Gary Van Riper, a fourteen-year veteran of the Saginaw County Sheriff’s Department and a ten-year veteran of the department’s marine division, testified that the construction site was not properly lighted at the time of the accident. However, Van Riper stated that the accident occurred on a clear evening and the piers of the bridge were clearly visible.
After conducting an investigation into the accident, Van Riper concluded that the boat was travelling at full plane at the time of the impact. Van Riper estimated that the boat’s speed on impact was about seventeen to twenty-five miles per hour. After the accident, the boat’s throttle was found in the full forward position.
Deputy Sheriff Jeffrey Richardson opined that the boat was running at full plane at the time of impact. He stated that, although the bridge was poorly lit at the time of the accident, the bridge’s pillars were clearly visible even without the lighting.
Plaintiff’s expert, Robert V. Ricard, testified that defendants’ light configuration and the location of C. A. Hull’s barge at the time of the accident were both in violation of federal law.
Diane Johnson, a paramedic, testified that she saw Wenzel’s eyes after the accident and they were bloodshot and he had a strong odor of alcohol on his breath. Wenzel slurred his speech, staggered about the boat, was belligerent and only wanted to get off the boat. Johnson heard plaintiff state "he [Wenzel] should never have been driving.”
The jury returned a verdict of no cause of action against C. A. Hull and the city. On April 30, 1986, the trial judge rendered a verdict of no cause of action in favor of the mdot. The instant appeals followed.
First, plaintiff contends that the trial judge erred in first determining the issue of sole proximate cause as to the nonparty driver prior to determining whether the Department of Transportation’s negligence was a proximate cause of the accident. Plaintiff argues that the court’s opinion should have been written in the same sequential order as SJI2d 15.03 to SJI2d 15.05. We disagree.
Findings of fact are sufficient where it is manifest that the factfinder was aware of the factual issue, that he resolved it, and that it would not facilitate appellate review to require further explanation of the path followed by the factfinder in reaching the result. Blom v Thermotion Corp, 139 Mich App 50, 55; 360 NW2d 172 (1984), citing People v Jackson, 390 Mich 621, 627, n 3; 212 NW2d 918 (1973). In the Court of Claims case, the trial court correctly decided the factual issue of proximate cause. The sequence in which the trial judge wrote his opinion is not a ground for reversal. The trial judge was aware of the issues in the case and correctly applied the law since it is evident that, although defendants were negligent in lighting the channel and in mooring the barge, the evidence indicated that the accident would not have occurred if Wenzel had maintained a proper lookout of the bridge and carefully driven the boat through the construction area. Thus, we find no merit to plaintiff’s first claim of error.
Next, plaintiff complains that the trial judge abused his discretion in admitting evidence of Wenzel’s intoxication, since the probative value of this evidence was substantially outweighed by the unfair prejudice caused to plaintiff.
A decision whether to admit certain evidence rests within the sound discretion of the trial court, and that decision will not be set aside absent an abuse of discretion. Guider v Smith, 157 Mich App 92, 103-104; 403 NW2d 505 (1987). When reviewing a trial court’s decision to allow the jury to be presented with certain evidence, this Court will not assess the weight and value of the evidence, but will only determine whether the evidence was of such a nature that it could be properly considered by the jury. Id. Evidence is relevant if it has any tendency to make the existence of a fact in issue to the action more or less probable than it would be without the evidence. MRE 401. Relevant evidence may nonetheless be excluded from trial "if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence.” MRE 403.
In Sclafani v Peter S Cusimano, Inc, 130 Mich App 728, 735-736; 344 NW2d 347 (1983), this Court defined "unfair prejudice”:
"Unfair prejudice” does not mean "damaging.” Bradbury v Ford Motor Co, 123 Mich App 179, 185; 333 NW2d 214 (1983). Any relevant testimony will be damaging to some extent. We believe that the notion of "unfair prejudice” encompasses two concepts. First, the idea of prejudice denotes a situation in which there exists a danger that marginally probative evidence will be given undue or pre-emptive weight by the jury. In other words, where a probability exists that evidence which is minimally damaging in logic will be weighed by the jurors substantially out of proportion to its logically damaging effect, a situation arises in which the danger of "prejudice” exists. Second, the idea of unfairness embodies the further proposition that it would be inequitable to allow the proponent of the evidence to use it. Where a substantial danger of prejudice exists from the admission of particular evidence, unfairness will usually, but not invariably, exist. Unfairness might not exist where, for instance, the critical evidence supporting a party’s position on a key issue raises the danger of prejudice within the meaning of MRE 403 as we have defined this term but the proponent of this evidence has no less prejudicial means by which the substance of this evidence can be admitted.
We agree with plaintiffs contention that Wenzel’s intoxication was not relevant nor probative to whether defendants were negligent. However, Wenzel’s intoxication was highly probative of the proximate cause of the boating accident since defendants maintained that the allegedly improper lighting was not a proximate cause of the accident. Instead, the sole proximate cause was Wenzel’s, intoxication which prevented him from being attentive and driving the boat through the construction area. We recognize that evidence of Wenzel’s intoxication was damaging to plaintiffs case. However, we cannot conclude that plaintiff suffered unfair prejudice since this evidence was not merely marginally probative. On the contrary, it was essential in deciding the proximate cause of the boat accident. Secondly, there was no less prejudicial means for defendants to show that Wenzel’s negligence, not theirs, proximately caused the accident, resulting in Fischer’s death. Accordingly, we find no error.
Plaintiff also contends that it was error for the trial court to allow into evidence the opinions of the investigating police officers as to speed, direction of travel and manner of travel of the boat when the officers had not been qualified as experts in those areas.
In determining the admissibility of opinion testimony of a witness, the question of whether the witness is qualified as an expert is left for the discretion of the trial judge, and his decision is to be interfered with only where an abuse of discretion is demonstrated. Anderson v Lippes, 18 Mich App 281, 285; 170 NW2d 908 (1969), app dis 383 Mich 765 (1970). A witness may be qualified as an expert if he or she has acquired specialized knowledge through experience, training or education. MRE 702. In this case, it was not error to permit the officers to render opinions based on their investigations of the accident. Both officers had training and experience in examining boating accidents, especially in the area of the Saginaw River. Moreover, their testimony regarding the boat’s speed, even if erroneously admitted, was harmless error since Wenzel testified to the speed that he was travelling. See Anderson, supra, p 287.
Next, plaintiff alleges that the trial court erred by denying plaintiff’s motion in limine to exclude testimony of: (1) Wenzel’s intoxication prior to the accident; and (2) Wenzel’s driving the boat fast and in a reckless manner. Specifically, plaintiff complains that it was error to allow Mr. Sturm to testify that at 3:00 p.m. that day, Wenzel appeared intoxicated. In addition, plaintiff challenges Mrs. Sturm’s testimony regarding the reckless manner that Wenzel was driving as being too remote in space and time to prove that Wenzel was negligently driving the boat shortly prior to the accident. We disagree.
In Bryant v Brown, 278 Mich 686, 688; 271 NW 566 (1937), the Court was confronted with the admission of witnesses’ estimates of a driver’s excessive speed prior to an accident. Testimony offered by the defendant as to plaintiffs speed at a remote point in time was rejected, but witnesses were permitted to state the speed just before plaintiff came to the last curve and rounded it. “The competency of such testimony is not determined by specific distance or time but by causal connection or contact with the accident.” Id., p 688. This causal connection rule was subsequently approved in Humphries v Complete Auto Transit, Inc, 305 Mich 188, 193; 9 NW2d 55 (1943), and Crane v Woodbury, 41 Mich App 11, 17; 199 NW2d 577 (1972). In Crane, this Court further elaborated on the Bryant test by quoting 46 ALR2d 9, 13, 19:
"In determining the admissibility of evidence concerning the manner in which a participant in an accident was driving a vehicle before he reached the scene of the accident as against the objection that the testimony is remote, the most important factor is the degree of probability that the conduct continued until the accident occurred.” (Emphasis added.) [41 Mich App 17.]
In Woodrow v Johns, 61 Mich App 255, 265; 232 NW2d 688 (1975), this Court applied the Crane test and held that evidence of the defendant’s improper speeding before the accident was admissible where the speeding continued until the time of the accident.
In this case, the trial court properly denied plaintiffs motion in limine to exclude evidence of Wenzel’s intoxication and fast driving a few hours before the accident since this conduct continued until the accident. Further, this evidence established that this very same conduct was responsible for the accident and demonstrated a pattern of conduct.
Finally, plaintiff argues that defense counsel’s remarks in closing argument caused prejudice to the case. We disagree.
In Reetz v Kinsman Marine Transit Co, 416 Mich 97, 103; 330 NW2d 638 (1982), the Supreme Court described how an appellate court should review an appeal based on an attorney’s improper argument:
[T]he appellate court should first determine whether or not the claimed error was in fact error and, if so, whether it was harmless. If the claimed error was not harmless, the court must then ask if the error was properly preserved by objection and request for instruction or motion for mistrial. If the error is so preserved, then there is a right to appellate review; if not, the court must still make one further inquiry. It must decide whether a new trial should nevertheless be ordered because what occurred may have caused the result or played too large a part and may have denied a party a fair trial. If the court cannot say that the result was not affected, then a new trial may be granted. Tainted verdicts need not be allowed to stand simply because a lawyer or judge or both failed to protect the interests of the prejudiced party by timely action.
See also Heintz v Akbar, 161 Mich App 533, 537; 411 NW2d 736 (1987).
In this case, there was no objection. Our further inquiry into the matter convinces us that counsel’s closing argument did not deprive plaintiff of a fair trial. Defense counsel merely restated the facts as testified to by plaintiff. Defense counsel is permitted to discuss the character of a witness and characterize his testimony. Firchau v Foster, 371 Mich 75, 78-79; 123 NW2d 151 (1963). Finally, Officer Van Riper’s inadvertent reference to a criminal trial did not deprive plaintiff of a fair trial. The reference did not name who was on trial or what the charges were. Moreover, the trial judge alertly prevented the witness from making any further reference to the criminal trial.
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P. Edwards, J.
Plaintiff appeals as of right from an August 7, 1986, opinion and order of the Court of Claims which granted summary disposition to defendant.
On June 13, 1983, plaintiff, a nineteen-year-old man, sustained serious but nonpermanent injuries after his head struck an object which jutted up from the lake bottom while he was swimming at Silver Lake in the Pinckney Recreation Area. After receiving medical treatment, plaintiff returned to the scene and showed investigators the point in the water where he had hit his head. At that point, approximately thirty to thirty-five feet from the shoreline, was a large submerged boulder. Since that time, the boulder has been surveyed and marked by plaintiff, who requested that the Department of Natural Resources remove it as a continuous danger to the public. The dnr has refused to do so.
Plaintiff commenced this action against defendant on December 7, 1983, in the Court of Claims. Plaintiff set forth various theories of recovery against the dnr, including nuisance.
In an August 13, 1985, opinion and order, the Court of Claims ruled on a motion for summary disposition by the defendant. The court held that the claim that defendant was negligent in failing to correct a known danger was for omissive conduct which fell within the category of a negligent nuisance. The court ruled that such conduct remains protected by governmental immunity, citing Rosario v City of Lansing, 403 Mich 124; 268 NW2d 230 (1978). Further, the court held that the alleged conduct of the defendant in placing the boulder in the water at Silver Lake was an allegation of an affirmative act or an intentional nuisance.
Defendant’s motion for summary disposition was granted as to all of plaintiffs claims except that which alleged an intentional nuisance by defendant’s placing the boulder in the water at Silver Lake.
Thereafter, plaintiffs proofs as to nuisance were confined to showing that the dnr actually placed the boulder in the water at Silver Lake.
On November 18, 1985, defendant renewed the motion for summary disposition pursuant to MCR 2.116(C)(10) and on February 26, 1986, the parties argued defendant’s renewed motion. On August 7, 1986, the Court of Claims granted defendant’s motion, stating, inter alia:
Whether or not the judicially created nuisance exception to governmental immunity survived Ross v Consumers Power Co [On Rehearing], 420 Mich 567 [363 NW2d 641] (1984), is questionable. (See Judge Mackenzie’s concurrence in Bradford v Michigan [153] Mich App [756; 396 NW2d 522 (1986)], and the end of footnote 27 of the Ross decision.) In any event, this Court is not persuaded that the Plaintiff has established that a nuisance per se or an intentional nuisance existed, Ford v Detroit, 91 Mich App 333 [283 NW2d 739] (1979); Furness v Public Service Comm, 100 Mich App 365 [299 NW2d 35] (1980).
It is the position of the plaintiff on appeal that defendant created an intentional nuisance by its placement or maintenance of the boulder in the lake which was open to the public for swimming. Thus, to sustain plaintiffs claim, the crucial question is whether there is an intentional nuisance exception to the doctrine of governmental immunity.
Our Supreme Court recently addressed the question "whether, in light of the governmental tort liability act and Ross, any common-law tort-based [nuisance] exception to governmental immunity may be recognized.” (Emphasis in original.) Hadfield v Oakland Co Drain Comm’r, 430 Mich 139, 145; 422 NW2d 205 (1988). The Court examined the legislative intent behind § 7 of the act, which provides in relevant part:
Except as otherwise provided in this act, all governmental agencies shall be immune from tort liability in all cases wherein the government agency is engaged in the exercise or discharge of a governmental function. Except as otherwise provided in this act, this act shall not be construed as modifying or restricting the immunity of the state from tort liability as it existed before July 1, 1965, which immunity is affirmed. [MCL 691.1407; MSA 3.996(107).]
The Court determined that § 7 "requires a continuation of the nuisance exception as formulated prior to the enactment of the governmental immunity act in 1964, as amended by 1970 PA 155.” Hadfield, supra, p 149. The Court then limited the exception to the type of historic governmental nuisance liability that was recognized prior to 1964 and held there is a limited trespass-nuisance, or intruding nuisance, exception to governmental immunity. Hadfield, supra, pp 145, 169. The Court found no pre-1964 case law that recognized or applied either an intentional or a negligent nuisance exception in any form. Hadfield, supra, p 170.
Therefore, there being no intentional nuisance exception to governmental immunity, Hadfield, supra, and that being plaintiffs sole basis for appeal, the Court of Claims’ grant of summary disposition to defendant is affirmed.
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Per Curiam.
These consolidated cases both involve plaintiffs who fell and suffered injuries on allegedly defective sidewalks in the City of Garden City. Plaintiffs filed actions against the city. At the time the actions were filed, the city had enacted Garden City Ordinance 94.37, which provided:
All sidewalks within the City shall be kept and maintained in good repair by the owner of the land adjacent to or abutting upon it. If an owner shall neglect to keep and maintain the sidewalk along the front, rear, or side of the land owned by him in good repair and safe for the use of the public, the owner shall be liable to the City for any damages recovered against the City sustained by any reason of such sidewalk being unsafe and out of repair.
Pursuant to this ordinance, the city instituted a third-party claim against third-party defendants Vorhoff and Howell, who are the owners of the properties abutting the public sidewalks where the plaintiffs were injured. In both cases, the third-party defendants moved for and were granted summary disposition pursuant to MCR 2.116(0(10). In both cases, the circuit judges held that the city’s ordinance contravened state law. The city appeals as of right. We affirm.
We believe that an ordinance such as the city’s creates a public duty from which there can be no private right to recovery. In cases involving the failure of abutting landowners to keep their sidewalks clear as required under local ordinances, our courts have uniformly held that liability could not be posited. Levendoski v Geisenhaver, 375 Mich 225; 134 NW2d 228 (1965); Taylor v Saxton, 133 Mich App 302; 349 NW2d 165 (1984). In Levendoski, our Supreme Court, citing Taylor v Lake Shore & MSR Co, 45 Mich 74; 7 NW 728 (1881), stated:
"An ordinance requiring all persons to keep their sidewalks free from ice imposes a purely public duty, and persons injured by slipping on the ice cannot bring private actions against the owners of the premises.” [375 Mich 227.]
The Court noted that Taylor was in accord with the weight of American law. However, the Court left open the possibility that liability might properly be imposed if the ordinance in question directly provided for liability, as it stated:
Since the duty here imposed upon a property owner [by the ordinance] is to the city which has the primary responsibility for the maintenance and control of its sidewalks as well as a liability to those injured by defective sidewalks, by virtue of CL 1948, §242.1 (Stat Ann 1958 Rev §9.591), in the absence of an express provision imposing liability on the property owner, there is none. [375 Mich 228.]
The city relies on this language to support its claim that its ordinance is valid, noting that the ordinance states that the owner shall be liable to the city for any damages recovered against the city as the result of a defective sidewalk.
We disagree with the city’s argument. First, we note that the language is merely dictum. More recent cases involving ordinances requiring the removal of snow have stated that ordinances imposing "a duty upon landowners to clean sidewalks create no private liability.” Gillen v Martini, 31 Mich App 685, 687; 188 NW2d 43 (1971); Woodworth v Brenner, 69 Mich App 277, 280; 244 NW2d 446 (1976). Similarly, we are of the view that the city’s ordinance in this case does not create a private right to recover against the landowner and that, accordingly, the city is not entitled to indemnification.
Second, we believe that the city is not permitted to delegate a duty to private landowners which has been squarely posited on it by the Legislature. Since the city cannot delegate the duty to maintain its sidewalks, it cannot delegate the liability for the breach of the duty.
MCL 691.1402; MSA 3.996(102) provides, in part:
Each governmental agency having jurisdiction over any highway shall maintain the highway in reasonable repair so that it is reasonably safe and convenient for public travel. Any person sustaining bodily injury or damage to his property by reason of failure of any governmental agency to keep any highway under its jurisdiction in reasonable repair, and in condition reasonably safe and fit for travel, may recover the damages suffered by him from such governmental agency.
In Davis v Chrysler Corp, 151 Mich App 463, 469; 391 NW2d 376 (1986), this Court held that the liability of municipalities under this statute extended to the municipalities’ sidewalks.
We are of the view that the Legislature, in enacting the governmental immunity act, MCL 691.1401 et seq.; MSA 3.996(101) et seq., intended to occupy the entire field of governmental liability. Therefore, accordingly, we do not believe that the city is permitted to delegate its duty or the liability for any breach of its duty to the private landowner. Granger Land Development Co v Clinton Co Bd of Zoning Appeals, 135 Mich App 154; 351 NW2d 908 (1984).
The orders of the circuit judges granting third- party defendants’ motions for summary disposition are affirmed. | [
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Weaver, P.J.
Plaintiffs appeal as of right from a circuit court order which granted summary disposition in favor of defendants. We reverse.
i
On July 3, 1981, while visiting the home of his parents-in-law, Mr. and Mrs. Ralph Cox, thirty-three-year-old William Horen began swimming in the Coxes’ above-ground outdoor swimming pool which had been manufactured in 1978 by defendant Coleco Industries, Inc. The pool, measuring twenty-four feet in diameter, contained a water depth of between four and five feet and was surrounded by side walls to which a large, manufacturer-supplied deck had been attached. After observing others jumping and diving into the pool, Mr. Horen executed one "normal” flat, shallow dive with no difficulty. However, when Mr. Horen attempted a second such dive from a standing position on the manufacturer-supplied deck, his hands, head, or torso apparently became tilted in such a way as to act as a rudder when he entered the water, and he struck his head on the bottom of the pool. As a result, Mr. Horen suffered a fractured neck and became a permanent quadriplegic.
The pool contained only one small, faded and peeling warning label affixed at the base of a corner of the chain-link wall adjoining the deck, which read: "No Diving. Shallow Water.” However, Mr. Horen testified that he saw no warning labels or signs in or around the pool to indicate that there should be no diving. He also testified that he was a recreational swimmer of limited swimming and diving experience and that he had never received any diving instruction.
Upon motion for summary disposition brought by defendants Coleco Industries, Inc., Lomart In dustries and Bridgeport Pools, Inc., the trial court granted summary disposition in favor of the moving-party defendants. Plaintiffs appeal as of right.
ii
First we note that defendants moved for summary disposition pursuant to MCR 2.116(C)(8) on grounds of failure to state a claim upon which relief can be granted. However, defendants actually argued the motion pursuant to MCR 2.116(0(10), since they alleged there was no genuine issue of material fact that diving headfirst into an above-ground pool was an open and obvious danger for which there was no duty to warn. Further, a review of the trial court’s findings indicates that the judge looked beyond the pleadings, to which he would have been limited had the motion been decided under MCR 2.116(C)(8). See Harrison Twp v Calisi, 121 Mich App 777, 781-782; 329 NW2d 488 (1982). We therefore review the order of summary disposition as one entered pursuant to MCR 2.116(C)(10). Huff v Ford Motor Co, 127 Mich App 287, 293; 338 NW2d 387 (1983).
In deciding whether to grant or deny the motion for summary disposition brought under MCR 2.116(0(10), the trial court was required to view the matter in a light most favorable to the non-moving party, giving that party the benefit of reasonable doubt to find any facts in support of its assertion that an issue of fact existed. Id. Before granting summary disposition, the trial court was to be satisfied that it would be impossible for the claim asserted to be supported by the evidence at trial. Id. Because in the instant case we do not believe it impossible for plaintiffs’ claim to be supported by the evidence at trial, we find that the trial court incorrectly granted summary disposition in favor of defendants.
iii
On appeal, plaintiffs argue that the trial court applied the wrong test. We agree. Defendants argued, and the trial court accepted, the test enunciated in Fisher v Johnson Milk Co, Inc, 383 Mich 158; 174 NW2d 752 (1970) — namely, that there is no duty to warn of a patent and obvious danger inherent in a simple tool or product. Id. at 160. See also Coger v Mackinaw Products Co, 48 Mich App 113, 122; 210 NW2d 124 (1973). The moving-party defendants utilized this test to assert that, since the above-ground swimming pool was a simple product in which there openly and obviously inhered a risk of serious injury from diving, summary disposition was proper because there was no duty to warn.
However, the "open and obvious risk” test does not adequately state the law in Michigan, since this test was subsequently modified by that set out in Owens v Allis-Chalmers Corp, 414 Mich 413; 326 NW2d 372 (1982). Owens opined that a manufacturer is not automatically excused from responsibility merely by showing that the risks inhering in a simple tool or product are open and obvious. Id. at 424-425. Although such a determination may be utilized as one factor among others to conclude that the manufacturer has no duty to warn because the product is not unreasonably dangerous, the new test is whether the risks are unreasonable in light of the foreseeable injuries. Id. at 425. See also Francisco v Manson, Jackson & Kane, Inc, 145 Mich App 255, 262; 377 NW2d 313 (1985), lv den 424 Mich 872 (1986); SJI2d 25.31 and Comment.
Defendants’ reliance upon Hensley v Muskin Corp, 65 Mich App 662; 238 NW2d 362 (1975), lv den 395 Mich 776 (1975), is unpersuasive because Hensley adopted the Fisher test which was altered by Owens. Hensley is also unpersuasive on its facts, since in Hensley the plaintiff dove from a seven-foot-high garage into a four-foot-deep above-ground swimming pool. We do not believe that plunging from a seven-foot-high garage is the equivalent of attempting a flat, shallow dive from a standing position on a manufacturer-supplied deck, like the one in this case, attached to the pool itself.
The question of duty is generally one of law for the court. Moning v Alfono, 400 Mich 425, 436-437; 254 NW2d 759 (1977), reh den 401 Mich 951 (1977), supplemental order 402 Mich 958 (1978). In this case, however, defendants’ argument that they had no duty to warn of the diving danger really relates to the applicable specific standard of care— a question for the jury — instead of the existence of a legal duty. Id. at 437-438; Francisco, supra at 262. Where, as here, injury was reasonably foreseeable, the manufacturer’s use of reasonable care in guarding against unreasonable or foreseeable risks is a jury question, even where the danger is obvious. Id.; Casey v Gifford Wood Co, 61 Mich App 208, 214-215; 232 NW2d 360 (1975), lv den 395 Mich 810 (1975).
Plaintiffs’ evidence, from which a jury might find the manufacturer’s product to have posed an unreasonable and foreseeable danger that death or paraplegia could result from diving into the water, was sufficient to preclude summary disposition against the proffered defense. Corbin v Coleco Industries, Inc, 748 F2d 411, 417 (CA 7, 1984). The record indicates: (1) that the manufacturer published promotional advertisements showing people diving into similar above-ground pools; (2) that the manufacturer knew that many people did not appreciate the risks of death or paraplegia associated with diving; (3) that defendants sold this type of above-ground pool primarily to recreational, untrained divers, with knowledge that an untrained diver might not be able to make a safe dive into it although a trained diver could; (4) that defendants admitted it to be foreseeable that users of the pool might employ the manufacturer-supplied deck as a diving platform; (5) that defendants’ expert witness admitted that the public was generally unaware of the risk of catastrophic injury associated with diving into such pools; and (6) that, although defendants officially recognized the diving danger around 1969, they did not provide the type of warning signs recommended by the American National Standards Institute until 1983, when they sold the division, for fear of a negative impact on sales.
In light of the foregoing, we believe that an ordinary recreational swimmer of limited swimming and diving experience, with no diving training, might believe that a flat, shallow dive could be performed without threat of death or paraplegia, especially when the swimmer was not presented with a hazard sign sufficient to warn of such danger and when other swimmers were observed executing similar dives without harm. Even should the evidence establish Mr. Horen’s consciousness of a vague danger, this would not preclude a jury from finding that a warning was nonetheless required to give full appreciation of the life-threatening risks involved. See Michigan Mutual Ins Co v Heatilator Fireplace, 422 Mich 148, 154; 366 NW2d 202 (1985).
Giving the benefit of reasonable doubt to plaintiffs as the nonmoving parties, it cannot be said that there existed no genuine issue of material fact for trial. Huff, supra. Hence it was error for the trial court to grant summary disposition in favor of defendants.
Reversed.
In Hensley, the Court held that there existed no duty on the part of the manufacturer, seller, or owner of a four-foot-deep above-ground swimiming pool to warn the plaintiff not to dive from a seven-foot-high garage into the pool, because such diving was an "obviously dangerous use of an otherwise nondangerous product.” Id. at 663. | [
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Wahls, P.J.
Plaintiff, Louis J. Seder, appeals as of right from an order of the Wayne Circuit Court granting summary disposition in favor of defendant, Peoples Community Hospital Authority (pcha), a nonprofit community hospital doing business as Seaway Hospital, on the basis of governmental immunity under MCL 691.1407; MSA 3.996 (107). We reverse and remand for further proceedings.
The record reveals that on February 17, 1983, plaintiff underwent a hemorroidectomy at pcha. Following this operation, plaintiff developed a urinary infection which, he alleged, was caused and exacerbated by treatment rendered by Sham Gupta, M.D., an employee of pcha. On January 9, 1985, plaintiff sued Gupta for negligence and medical malpractice, and pcha for negligence in having failed to properly select, train and supervise its medical staff. Pcha answered the complaint on February 6, 1985, and on that same date filed a lengthy list of affirmative defenses. Shortly before pcha filed its answer and affirmative defenses, the Supreme Court, in Ross v Consumers Power Co (On Rehearing), 420 Mich 567; 363 NW2d 641 (1984), released on January 22, 1985, substantially clarified the law in Michigan regarding governmental immunity. In Ross, the Supreme Court set forth specific tests for use in determining the availability of statutory immunity from tort liability for governmental entities and officers. On April 16, 1986, pcha moved to amend its list of affirmative defenses to include governmental immunity. This motion, opposed by plaintiff, was granted by the trial court by an order entered on May 22, 1986. Thereafter, in Hyde v University of Michigan Bd of Regents, 426 Mich 223; 393 NW2d 847 (1986), the Supreme Court, on October 3, 1986, recognizing that pre-I?oss precedent established that activities conducted by a municipally owned general hospital providing medical services to the public for fees did not constitute a governmental function and therefore were not entitled to immunity, Parker v Highland Park, 404 Mich 183; 273 NW2d 413 (1978), clarified that the Ross opinion had partially overruled precedent regarding the tort liability of public general hospitals. In Hyde, the Supreme Court stated:
None of the cases decided in Ross involved the tort liability of a public general hospital. However, Ross explicitly rejected each of the definitions of "governmental function” used in Parker. 420 Mich 614-619. "Governmental function” was redefined as "an activity which is expressly or impliedly mandated or authorized by constitution, statute, or other law. [Id., p 620.]” We note that this definition "is broad and encompasses most of the activities undertaken by governmental agencies.” Id., p 621.
Under Ross, a public general hospital or medical facility is engaged in the exercise or discharge of a governmental function whenever its activities are expressly or impliedly mandated or authorized by constitution, statute, or other law. To the extent that Parker held that such activities do not constitute a governmental function, Parker was impliedly overruled by Ross. [426 Mich 243.]
The Hyde Court also specified that the rules in Ross as applicable to public general hospitals were to be given limited retroactive effect, stating:
We therefore hold that the rules articulated in Ross should be applied to all cases commenced after the date our opinion was issued (January 22, 1985), and to those cases pending either in trial or appellate courts on that date which properly raised and preserved a governmental immunity issue. [426 Mich 241.]
On November 25, 1986, pcha, citing Ross and Hyde, moved for summary disposition on the ground that it was entitled to governmental immunity. Plaintiff responded and also moved to amend his complaint to allege a breach of contract in avoidance of governmental immunity. On January 29, 1987, the trial court granted defendant’s motion and apparently denied plaintiff’s. The instant appeal ensued.
On appeal, plaintiff contends that the trial court erred in granting summary disposition in favor of pcha on the basis of governmental immunity. Essentially, plaintiff reasons that because the issue of governmental immunity was not raised in this case until April 16, 1986, when pcha filed its motion to amend its list of affirmative defenses to include governmental immunity, and since the Supreme Court in Hyde clarified that the rules in Ross should not be applied in cases such as the present case which were pending on the date of issuance of the Ross opinion, January 22, 1985, unless by that date the issue of governmental immunity had already been properly raised and preserved, pcha should not be able to avoid vulnerability to tort liability as provided under pre-Ross precedent. Hyde, supra, p 241. Pcha, on the other hand, responds that the Hyde Court itself recognized that the matter of governmental immunity, or more precisely the lack thereof, could be raised in a plaintiffs complaint prior to January 22, 1985, sufficient to properly raise and preserve the issue, and that, in this case, plaintiffs complaint itself pled facts in avoidance of governmental immunity. Id., p 236, n 7. Moreover, pcha argues that a governmental agency such as itself is entitled to the protection of governmental immunity whether or not it itself raises the issue of such immunity as an affirmative defense, asserting that that protection is a characteristic of government which prevents the imposition of tort liability and which must be raised, if at all, by a plaintiff. Id., p 261, n 35. Cases from which support for plaintiffs position may be gleaned include Rifkin v University of Michigan Hospital, 159 Mich App 254; 406 NW2d 202 (1986), lv gtd 429 Mich 861 (1987); Fulton v Pontiac General Hospital, 160 Mich App 728, 732-735; 408 NW2d 536 (1987); Maurer v McManus, 161 Mich App 38, 43-46; 409 NW2d 747 (1987). Cases from which support for pcha's position may be gleaned include Hoffman v Genesee Co, 157 Mich App 1, 7; 403 NW2d 485 (1987), lv den 428 Mich 902 (1987); Stein v Southeastern Michigan Family Planning Project, Inc, 158 Mich 702; 405 NW2d 147 (1987), lv gtd 429 Mich 861 (1987); Charbeneau v Wayne Co General Hospital, 158 Mich App 730; 405 NW2d 151 (1987); Bauer v Garden City, 163 Mich App 562, 566; 414 NW2d 891 (1987).
In this case, defendant failed to raise the issue of governmental immunity prior to January 22, 1985, the date the Supreme Court issued it opinion in Ross, even though it filed its answer and affirmative defenses fifteen days after that date, on February 6, 1985. Moreover, our perusal of plaintiff’s complaint convinces us that plaintiff himself did not raise the issue of defendant’s lack of governmental immunity by way of pleading any facts in avoidance. Of course, at the time plaintiff filed his complaint (long before Ross was issued and while the Supreme Court precedent of Parker was still good law, so that the jurisprudence in this state acknowledged that activities conducted by a municipally owned general hospital providing medical services to the public for fees did not constitute a governmental function and therefore were not protected by governmental immunity) he had no reason to plead facts in avoidance of governmental immunity. At the time plaintiff’s preRoss complaint was filed, the law provided that the hospital authority in this case did not enjoy the protection of governmental immunity. Such pleading would, at that time, have been but a surplus or excess of statement, and excessivum in jure reprobatur (excess is reprehended in the law). Although the general rule now is that plaintiffs bear the burden of pleading in their complaints facts which would justify finding that recovery in their tort causes of action is not barred by governmental immunity, Hyde, supra, p 261, that rule presupposes the initial applicability of governmental immunity. Since, in view of Parker, governmental immunity was not initially applicable to pcha in this case when plaintiff filed his complaint, plaintiff did not bear the burden of pleading facts in avoidance of immunity.
Accordingly, since the issue of governmental immunity in this post-Parker, pre-Ross case was not properly raised and preserved by January 22, 1985, we hold that, under the Hyde standard of limited retroactivity for the rules articulated in Ross, the trial court erred in this case by granting summary disposition in favor of pcha on the basis of governmental immunity.
Our decision on the issue of governmental immunity renders it unnecessary for us to examine plaintiff’s second argument raised on appeal regarding whether the trial court erred in granting summary disposition to pcha because plaintiff’s allegations sufficiently set forth the nontort claims of breach of express and implied contracts to avoid dismissal of the case on the basis of governmental immunity.
Reversed and remanded for further proceedings.
We anticipate that the central issue raised in this appeal will be fully and finally resolved by the Supreme Court, which, on October 13, 1987, granted leave to appeal in Rifkin and Stein, "Limited to the issue whether the governmental immunity issue in [these cases was] in a posture so as to entitle defendant hospitalfs] to summary disposition in [their] favor.” 429 Mich 861. | [
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Campbell, C. J.
Simon brings bis bill of complaint to obtain a title to the northeast quarter of the southeast quarter of section 30, of town six north of range four west in Clinton county.
Brown the original owner, then and now living in Monroe county, New York, sold the east half of the southeast quarter of section 30 to one Engelbert Esch, in the early part of the year 1867, by written contract dated March 15, 1867, for $850, payable $150 down and the balance, as alleged in the answer, to be paid in two annual installments. Brown having obtained the possession of the contract, and refusing to produce it, the precise terms of it are not shown, but they are not now very material.
On the 26th of January, 1869, Esch sold the north forty acres to complainant by warranty deed for $575, of which $450 was to be paid on the contract of Esch. This was paid to Joseph Platte, an agent of Brown, partly by direct payment, and partly by payment to Andrew Webber by arrangement with Platte. Platte received full payment of all the money due to Brown in this way.
Brown claims Platte was not his agent for receiving money. The testimony shows clearly that while Platte probably deceived him as to the amounts of money received, Brown knew^that he was collecting money on the contracts and allowed him to keep it as a loan, and did not object to his collecting it. The agency is clear.
In May, 1873, complainant procured a letter to be written to Brown, enclosing the deed from Esch to complainant, and asking what further claims, if any, Brown had on the land. To this Brown made no reply, although he received it. Several months thereafter complainant had another letter sent asking similar information, and a return of the deed. Of' this Brown took no notice, and kept the deed.
In the beginning of 1874 one Hengsbach, who knew all about .complainant’s rights and had helped him in his original purchase, entered into an arrangement with Brown for getting title to the entire Esch purchase. Esch was dead, and Platte had gone away, as Brown claims, without paying him. There is some mystery about the facts, but it would seem- that Brown agreed, if the Esch contract could be procured and:got out of the way, to sell the property to Hengsbach for the first contract price. Proofs were given of Esch’s death, and possession was in some way obtained of Esch’s copy of the contract which was put in Brown’s hands. Thereupon, on the payment or pretended payment of $850, Brown made a conveyance, dated in January but executed in May, 1874, to one Anton Pulte of the entire eighty acres. Pulte was not sworn in the cause, although his connection with the facts became important, and if he purchased in good faith, his title would have ended this controversy as to Droste the appellant.
Pulte is said to have furnished the money to Hengsbach to go to New York and purchase the land. There is no evidence that Pulte did anything more than lend money without security to Hengsbach. He is not shown to have- made any bargain or stipulation for the purchase of the land, or to have taken any part or had any active interest in the matter. At Hengsbaeh’s suggestion the deed was taken in Pult^’s name, but delivered to Hengsbach and recorded by him. At the utmost Pulte may have had some understanding that he should be secured by Hengsbach on this land if purchased, but he was entirely passive, made no inquiry and took no part.
Subsequently Hengsbach bargained the land to one Henry Leik, who was also fully aware of complainant’s rights. Leik borrowed money of Droste and paid Pulte, who conveyed to Leik on the 4th of November, 1874. Leik by mortgage dated November 2, 1874, but acknowledged November 11, 1874, mortgaged the land to Droste to secure $1200. Droste did not lend the money on the faith of this land, although he expected a mortgage to be made for the loan, which was advanced without any present security upon the promise of a future one. Droste had heard there were difficulties about Simon’s rights. He, like Pulte, paid no attention to the title and acted evidently in reliance on the good faith of the persons with whom he dealt.
There is no evidence of personal dishonesty in Pulte or Droste, who, however, can in no way be regarded as bona fide purchasers or encumbrancers, inasmuch as neither of them relied on the title as a foundation of their action, and Droste at least had enough knowledge to put him on inquiry. Pulte had actual knowledge before he got his deed; and as his money was advanced before there was any purchase at all, he simply trusted to Hengsbach in the first instance and cannot be said to have paid for the land in good faith relying on any title. He was not only ignorant, but entirely passive and without care or thought concerning his security. He took what the parties chose to give him. His indifference negatives dishonesty, but creates no equities.
As to the other parties the fraud is too open to bear discussion. A plainer case of dishonesty can hardly be imagined. The defendants Leik and Droste may have supposed, in ignorance of law, that they were justified in purchasing. Brown’s course as both party and witness admits of no excuse. The fraud is beyond dispute..
The decree must be affirmed with costs.
The other Justices concurred. | [
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Cooley, J.
The circuit judge, who tried this cause without a jury? found the following facts:
“First. That on or about the 22d day of December, 1875, John Yanderhorst and wife, went together to the Berkey & Gay Furniture Company’s ware rooms to purchase some furniture with which to furnish a boarding house.
Second. That John 'Vanderhorst and his wife are Hollanders and that John Vanderhorst speaks very broken English and understands it imperfectly; but his wife talks English much more plainly, and on this account she transacted most of the business.
Third. That. John Yanderhorst purchased at that time the goods in question in this suit, agreeing to pay therefor one hundred and forty ($140.00) dollars, one Moses May at that time becoming surety for sixty ($60.00) dollars of this amount, which he afterwards paid.
Fourth. That after the expiration of the time of payment the Berkey & Gay Furniture Company brought an action for the unpaid balance against said John Vanderhorst before E. J. Shinkman, Esq., a justice of the peace in the city of Grand Bapids, and obtained judgment on the 10th day of July, 1876, for balance unpaid and interest: damages, $81.63; costs, $3.31.
Fifth. Upon this judgment execution was issued and placed in the hands of defendant Bacon, who was at the time, and ever since has been, a constable of Kent county.
Sixth. By virtue of this execution the defendant took control of the property involved in this case, it being the same property bought by Yanderhorst of the Berkey & Gay Furniture Company, as above mentioned, but caused no appraisal of it to be made at that time or at any time afterwards; nor any removal of the property from Vanderhorst’s house at that time because of facts hereinafter found.
Seventh. At the time Bacon so took possession of the property, Yanderhorst’s wife said to the defendant that said Moses May was absent from home and that as soon as he returned he would pay the judgment. Defendant referred her to the Berkey & Gay Furniture Company, and she and her husband went to the office of the company and Mrs. Yanderhorst then and there, in the presence of her husband and with his knowledge and without his objection, agreed that she would execute a regular receipt for the property, which she afterwards did, as stated in the next succeeding paragraph of this finding.
Eighth. That thereupon defendant went back to the house and obtained a receipt of said plaintiff’s wife. [This receipt was the usual receipt taken by officers for property levied upon, and in it the receiptor promised to deliver the property to the officer on the 15th day of August following, or to pay the judgment.]
Ninth. Upon said May’s return he refused to pay for said goods, and thereupon, to wit: on the 24th day of August, 1876, defendant went and asked for the» goods in question upon said execution, and Mrs. Yanderhorst pointed them all out to the defendant as agreed, and made no objection to defendant’s taking them.
Tenth. That this was in the afternoon, • and defendant took possession of said goods, loaded them upon a wagon and started with them to Berkey & Gay’s ware-rooms for safe keeping, but while moving them and when about 1 1-4 miles from plaintiff’s house he was served with the writ in the cause.
Eleventh. No objection was made to defendant’s taking said goods or had been at any time before the commencement of this action, and no demand of the. goods or for their return was made before the service of the writ, but Yanderhorst was not at his house at the time of removal of said goods.
Twelfth. Soon after these goods were purchased by Vanderhorst he quit keeping boarding house. The goods in question in this case were worth about the sum of one hundred and forty dollars, and constituted all the furniture owned by Yanderhorst at the time save one stove and other household furniture not exceeding in value the sum of twenty-five dollars. And that Yanderhorst was a householder at the time the levy was made and this suit commenced.
I also further find as a matter of law: that plaintiff is entitled to recover all of the goods in question, together with six cents damages and the costs of both courts.”
It is objected to this conclusion—
1st. That the goods were purchased, not as household goods but to carry on a business of profit, and therefore are to be considered stock in trade, or the means of carrying on the party’s occupation. 'If so, they are not, under the statute, exempt from an execution on a judgment for the purchase price. Comp. L., §§ 6101, 6131. But we doubt if these articles could at any time have been considered any thing else than household furniture. A boarding house keeper must be entitled to the same exemption of household furniture with any other person; and the finding shows that at no time did the plaintiff have more than was exempt. And when the levy was made he was not engaged in the business for which the furniture was purchased.
2d. It Is said the plaintiff did not claim the property as exempt when the levy was made upon it. But this was not necessary. The statute exempts to a householder his furniture to the value of $250, and it requires the officer, when he' makes a levy, to proceed to have it appraised and set out to the debtor. Comp L., §§ 6102 et seq. The statute is all the notification the officer needs.
3d. It is claimed that the acts of the plaintiff and his wife were equivalent to a waiver of the exemption and to a turning out of the property on the execution. We do not think so. The wife gave a receipt for the property to save its being taken away while she made an effort to pay the judgment; but failing in this, she yielded possession to the constable. But this was only yielding to a force which she could not resist: it was not a surrender of any right.
4th. The further suggestion is made that the officer was entitled to a réásonable time to make an inventory and appraisal, and that he may have been taking the furniture to a suitable place for that purpose. The suitable place for that purpose was the house where the things were found; the circumstances must be very extraordinary that would justify an officer in stripping a debtors’ house of his furniture and taking it to another part of the town, in order that he may ascertain a fact which is just as easily ascertained without removing it at all. If this may be done with beds and bedding, it may be done with carpets on the floors, and the house may for the time be made untenantable. > Intolerable abuses would be certain to spring up if this were permitted; and the case in hand suggests no reason for the course which was taken.
We are constrained to think the conclusion of the circuit judge was correct, and that as the officer was abusing his authority, no demand was necessary before bringing suit. The judgment must be affirmed with costs.
The other Justices concurred. | [
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Moody, J.
On April 10,1967, defendant appeared in court for arraignment and entered a plea of guilty to the charge of uttering and publishing a forged check on or about February 2, 1967, payable to himself in the sum of $21 and signed by Harold Ray and Linda Ray. The plea of guilty was accepted. From such plea defendant appeals. He claims that the court failed to inform him of the nature of the accusation and that his plea was not “understandingly made”.
A synopsis of the total proceedings in this matter reveals that' on March 16, 1967, the defendant was arrested pursuant to a warrant issued the same ■day charging him with the criminal offense of uttering and publishing a forged check. The associate municipal judge for the municipal court of the city of Kalamazoo on March 21, 1967, informed the defendant of the charged offense. The defendant thereupon demanded examination on such charge. However, on March 23, 1967, having had counsel appointed in his behalf and following counsel’s advice, the defendant waived examination previously demanded and thereupon was bound over to the Kalamazoo county circuit court.
An information was issued and filed by the prosecuting attorney on April 7, 1967, charging that the defendant uttered and published as true a certain false and forged check on or about February 2, 1967, payable to himself in the sum of $21 and signed by Harold Ray and Linda Ray with intent to injure and defraud them knowing such check to be false and forged. On April 10, 1967, defendant, together with his court-appointed counsel, appeared for arraignment. Defense counsel was presented with a copy of the information by the assistant prosecuting attorney and waived its reading on the record. Thereupon the defendant entered a plea of guilty to the charge contained in the information. The defendant’s guilty plea was accepted by the court and he was sentenced at a later date.
As one of the foundations of appeal, defendant contends that on the date of the plea, April 10, 1967, the General Court Rule governing such procedure, as amended in August, 1966, required as follows (GCR1963, 785.3[l][b]):
“The court shall inform the accused of the nature of the accusation, including the elements of the crime charged.”
Defendant claims he was not specifically informed of “the elements of the crime charged”.
However, the proposed amendments to Rule 785 dated August 24, 1966, which were to become effective January 1,1967, were suspended by the Supreme Court on November 16, 1966. Pursuant to the latter order, subrule 785.3(1) (b) continued to be enforced as it read before the proposed amendments of August 24, 1966. Hence, contrary to the contention of defendant, at the time his plea was taken, G-CR 1963, 785.3, provided in pertinent part:
“3. Arraignment in Sentencing. In every prosecution wherein the accused is charged with a felony, the trial court shall conform to the following practice. * * *
“(2) Imposing Sentence. If the accused pleads guilty, after such plea and before sentence the court shall inform the accused of the nature of the accusation and the consequences of his plea; and regardless of whether he is represented by counsel, the court shall examine the accused, not necessarily under oath, as a condition of accepting the plea of guilty and imposing sentence shall ascertain that the plea was freely, understandingly, and voluntarily made, without undue influence, compulsion, or duress, and without promise of leniency. Unless the court determines that the plea of guilty was so made, it shall not be accepted.”
When the plea was accepted, there was no specific mandate that the court must inform the accused of “the elements of the crime charged”. The court did have the obligation to “inform the accused of the nature of the accusation”. Whether this was sufficiently done is one issue presented by the defendant. There is no question here that the court did inform the defendant of the consequences of his plea and that the plea was made without undue influence or promise of leniency.
The record at the arraignment reflects that the defendant, who had a previous criminal record, was represented by counsel appointed by the court. He was furnished a copy of the information. In open court the reading of the information was waived. The court went on to state:
“You are charged here with uttering and publishing. All right, this was a check that was made payable to yourself in the amount of $21 on the Industrial State Bank and signed by Harold Ray and Linda Ray.”
The court then went into detail inquiring of the accused what he did to give rise to the charge. Some of the colloquy between the court and the accused was as follows:
“The Court: Now, I think probably I have already mentioned that this involves a check in the amount of $21 and will you tell us, in your own words, and speak so the reporter can hear you, as to what happened ?
“The Defendant: Yes, sir. I was spending a few days with my niece and nephew and I found a check there in their apartment, and I put my name on it and the amount and cashed it, and I bought them some milk for the baby and bought them groceries and took it back to the house, but I didn’t mention to them what I did.
“The Court: Now, this Harold Ray — or is Linda Ray, is she your niece ?
“The Defendant: Yes, sir.
“The Court: I see. The check I take it then was signed ?
“The Defendant: Yes, sir.
“The Court: You filled your own name in there?
“The Defendant: Yes, sir.
“The Court: And then you took it over to the grocery store?
“The Defendant: And cashed it.
“The Court: And cashed it. Have you been in any serious trouble before?”
At a later point in the arraignment proceeding the court continued tó. question the defendant with respect to his knowledge and intent as follows:
“The Court: Now, when you signed this check and filled in your'.own name, what was your intention?
“The Defendant: Actually, sir, I don’t know, I’ll be honest.
“The Court: Well, you took it to the store and indorsed it?
“The Defendant: Yes, sir, and I spent the balance of the money besides what I—
“The Court:, That’s what I was wondering. You did get some money?
“The Defendant:, Yes, sir.
“The Court: And you knew you were doing wrong in1 signing the check?
“The Defendant: Yes, sir.
“The Court: And part of it was to get some money.
“The Defendant: ■ Yes, sir.”
The defendant relies upon People v. Hunn (1965), 1 Mich App 580, and People v. Johnson (1966), 2 Mich App 182, to sustain his claim that the plea was not “understandingly 'made”. Both cases involved the crime of uttering and publishing. In Hunn, the defendant, a 20-year-old itinerant not represented by counsel, at the arraignment indicated he was ignorant of the required elements of knowledge and intention to defraud. This court held that under such circumstances, it became the duty of the trial judge to explain to the defendant such elements in order to ascertain whether a plea of guilty was understandingly made.1 In this ease, to the contrary, the defendant’s* statément at the arraignment with respect to what he did, including his knowledge and intent, clearly reflected that he was quite aware of the fact of his guilt in all particulars of the alleged criminal offense.
■ As for Johnson, the plea of guilty was accepted at a second arraignment where there was “not a hint that the charges against the defendant were even mentioned”. Again Johnson had no counsel present after being appropriately advised of his right. Unlike Johnson, this defendant had counsel present, was furnished a copy of the information in open court, waived the reading of the information, was advised of the charge and replied to inquiry made with sufficient particularity by the trial judge to “tell us, in your own words, — as to what happened”.
A reading of the entire record convinces this Court that the trial court complied with the provisions of the rule and that the defendant was informed of the nature of the accusation and that his plea was “understandingly made”. People v. Bumpus (1959), 355 Mich 374; People v. Wurtz (1965), 1 Mich App 190; People v. Kearns, (1965), 2 Mich App 60; People v. Steele (1966), 4 Mich App 352; People v. Fleming (1966), 4 Mich App 644; People v. Byrd (1968), 12 Mich App 186.
In addition to the foregoing, upon accepting the plea of the defendant the trial judge stated:
“All right, I’m satisfied that this plea is freely, understandingly and voluntarily made without compulsion, duress or promise of leniency, that the defendant understands the nature of the charges brought against him, and therefore, his plea of guilty inay be accepted.”
This Court does not lightly cast aside the statement of the sentencing judge that he was assured that the defendant’s plea was knowingly made and that the defendant was informed of the nature of the accusations. A careful sifting of the record reflects nothing to impeach such conclusion.
We find no error. Affirmed.
All concurred.
GCR 1963, 785, as amended August 24, 1966; 378 Mich xxxviii-xliii
378 Mich xliii
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J. H. Gillis, P. J.
Defendant was convicted by a jury of escaping from prison. Immediately after the jury returned the verdict on the above charge, defendant was charged with being a second-felony offender and was convicted in a nonjury trial. Defendant was sentenced to 2-1/2 to 4-1/2 years in prison based on the supplemental charge contained in the information. The term was to run consecutively with the first sentence he was presently serving.
Defendant first contends that he was denied his right'to counsel. The record shows that defendant moved to have his court-appointed counsel dismissed because he felt that his attorney was las in the prep aration of a defense. The attorney stated that defendant was uncooperative and that there was strong disagreement between them as to the manner of preparing the defense. The trial court dismissed the attorney after defendant expressed his desire to represent himself both at the trial of the escape charge and at the supplemental proceeding on the habitual criminal charge. There was no denial of defendant’s right to counsel.
Defendant’s contention that the augmented sentence for escape as a second felony may not run consecutively with the sentence then being served is unfounded in the light of People v. Shotwell (1958), 352 Mich 42. Nor does the record support defendant’s alleged denial of his right to a speedy trial. Further, defendant’s argument that he was denied his right to a fair and impartial jury when the trial court sought to have the same jury that convicted him pass on the habitual criminal charge was rejected in People v. Stratton (1968), 13 Mich App 350. See People v. Spalding (1969), 17 Mich App 73.
Defendant also contends that the statutory requirement that every person charged with a felony shall, without unnecessary delay after arrest, be taken before a magistrate was contravened by his ■return to prison without an immediate arraignment. Defendant offers no authority for the proposition that the immediate return of an escaped inmate to prison violates the statute. There was no error in the procedure. See People v. Nawrocki (1967), 6 Mich App 46.
Defendant contends that the complaint and subsequent information were defective in that the prison supervisor of records who signed the complaint had no probable cause to believe that defendant had escaped. Defendant argues that the supervisor might have known that defendant was missing but could not know that he had escaped. The complaint, based on tbe information and belief of the complainant, was proper. People v. France (1963), 370 Mich 156.
Affirmed.
All concurred.
OLS 1961, § 750.193 (Stat Ann 1962 Rev § 28.390).
OLS 1961, § 769.10 (Stat Ann 1954 Rev § 28.1082).
OL 1948, § 764.26 (Stat Ann 1954 Rev § 28.885). | [
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McGregor, J.
Plaintiff, a Canadian corporation not licensed to do business in Michigan, grants franchises or licenses to manufacture a mailing tube device, generally known as “Tube-O-Gram.” The device is patented in Canada and the United States. In March, 1966, plaintiff participated in a franchise show at Cobo Hall in Detroit, where defendants Bringer and McKee became interested in the product. Plaintiff provided a booklet entitled, “Invitation to Opportunity,” which outlined a hypothetical set-up, indicating possible needed personnel, probable production, and estimated profit from operating a franchise. Defendants entered an exclusive area licensing agreement with the plaintiff in the corporate name of Self-Seal Containers, Inc., a Michigan corporation. As part of the agreement, plaintiffs would furnish defendants-with the franchise, the necessary manufacturing machinery, and supply certain technological equipment. Consideration was $10,000 consisting of a cash payment of $7,000 and a promissory note dated May 31, 1966, for $3,000 with interest at 6%, payable at the Bank of Montreal, Scarborough, Ontario, in $500 monthly installments, the last payment due November 31, 1966; defendants Bringer and McKee personally endorsed the note. On September 12, 1966, plaintiff notified defendants that their license agreement dated May 2, 1966, had been assigned to Tube-Vend, Limited, of Scarborough, Ontario. Defendants incurred a first-year loss, but paid two $500 installments with the accrued interest. Plaintiff brought suit in the common pleas court of Detroit for the remaining $2,000 and interest, obtaining a judgment for $2,140. Defendants appeal.
During the pendency of the lower court matter, defendants filed a notice of the following affirmative defenses: (1) plaintiff corporation is a foreign corporation doing business in the state of Michigan without a certificate of authority, as required by CL 1948, § 450.94 (Stat Ann 1963 Eev § 21.95), and therefore, does not have the legal capacity to sue in this state; (2) the contract of which the promissory note is a part is without consideration and mutuality. In addition, defendants filed a counterclaim for $5,000, predicated largely on plaintiff’s alleged breach of contract and fraud.
Defendants contend that the trial court erred by denying their motion to dismiss which reasoned that plaintiff was not the proper party in interest, CLS 1961, § 600.2041 (Stat Ann 1962 Eev § 27A.2041) because the note, as part of the license agreement, followed the assignment to Tube-Vend, Limited.
The trial court found that the note and the licensing agreement were two separate instruments, that plaintiff did transfer the licensing agreement to another corporation, retaining the promissory note to itself, and that plaintiff was the proper party in interest, all of which is fully sustained by the record.
Defendants further contend that the trial court erred by failing to grant defendants’ motion to dismiss for the reason that plaintiff, a foreign corporation, was not licensed to do business in the state of Michigan, CL 1948, § 450.93 (Stat Ann 1963 Eev § 21.94) and cite two paragraphs of the licensing (franchise) agreement between the parties as evidence of intrastate business :
“AETICLE II (Eights Granted)
* * #
“4. (A) DUE-EAM agrees to furnish to the Licensee such technological assistance relating to the device which, shall be available to DUR-RAM at the time of the execution of this Agreement and henceforth until the termination hereof.
“ARTICLE VIII (Use of Equipment)
“1. The licensee agrees during the duration of this agreement to permit DUR-RAM, its officers and employees, to employ the machinery and equipment of the Licensee for demonstrating the devices and the said machinery and equipment within the territory of the Licensee, providing, however, that such demonstrations do not unreasonably disrupt the regular business operation of the Licensee.”
There was no evidence that plaintiff exercised its right to use defendants’ machinery and equipment for demonstration within defendants’ territory in Michigan. The trial record is nearly barren of defendants’ alleged defense of intrastate business by plaintiff foreign corporation. Defendants did not request a ruling or finding by the trial court on this point. At the conclusion of the trial, the court said to defendants’ counsel :
- . “Your attach is against Dur-Ram Corporation, that there wasn’t adequate consideration as far as the note is concerned, also that there was fraud in the inducement — those are your two factors?”
to which defendants’ counsel replied,
“Yes, your Honor.”
In defendants’ motion for a new trial, they did not allege that plaintiff was not licensed to do business in Michigan. Furthermore, the record does not support this claim as a valid defense, as the evidence clearly preponderated that the parties’ agreement was an isolated transaction within this state, without the establishment by plaintiff of an agency or branch office in Michigan. The only service rendered by the plaintiff was essential to this isolated agreement. Therefore, from a careful review of the record, this Court concludes that plaintiff was not a foreign corporation doing business in this state, as contemplated by our statutes. More.over, the transcript reveals no motion by defendant for an accelerated or summary judgment based on the statutes which preclude a foreign unlicensed corporation from suing in this state. At trial, defendants failed to pursue this issue and apparently abandoned their contention that plaintiff was doing business in this state contrary to our statutes.
Defendants further contend that the trial court erred by finding no cause for action on their counterclaim. The trial judge, in his finding of fact and conclusions of law, said,
“Now, basically, in Michigan, the law is .that in order to establish fraud in the inducement, there must be a showing, a clear and convincing showing of (1) that the plaintiff made a material representation to the defendant; (2) that the material representation was false; (3) that the plaintiff knew the material representation was false at the time that he made it; (4) that the plaintiff made the material representation with the intention that the defendant should act upon it; (5) that the plaintiff made the material representation recklessly, without any knowledge of its truth and as a positive assertion.; (6) that the defendant acted in reliance upon it; (7) that the defendant sustained injury as a consequence of such reliance.
“Each of these legal elements must be proved with reasonable degree of certainty, and each element must be found to exist. The absence of any one of them is fatal to recovery by the alleged aggrieved party.
“Now there are certain things that are not fraud as found by our courts in the State of Michigan — ■ mere mistakes, honest expressions of opinion standing alone, although they are proved erroneous, promises of acts to be performed in the future in the absence of any intent on the part of the promisor at the time not to fulfill his promises. Mere expressions of matters of opinion, however strongly or positively made, though they are false, are no fraud, as these are matters in respect to which many men will be of many minds, as personal judgments are often governed by whim and caprice. Moreover, a person reposes at his peril in the opinions of others where he has equal opportunity to form and exercise his own judgment.
“* * * There has been no showing to this court that any elements of fraud as set forth in the court’s statement existed. * * * the defendants * * * prior to entering the contract between the parties, * * * did extensive checking on their own * * * the unfortunate part of it is that there was investigation made by the defendants, by their own admission.
“So, on the basis of the breach of contract, the court must find no cause of action for the plaintiff.”
The findings of fact are amply supported by the record. Plaintiff was the proper party in interest and entitled to a judgment for the unpaid portion of the note, plus interest. Defendants did not establish any right to recover under their counterclaim.
Judgment for plaintiffs is affirmed, but as no brief was filed by plaintiff, costs of this Court are not allowed.
All concurred. | [
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Per Curiam.
Defendant, James Blewett, pled guilty to assault with intent to rob being armed. CL 1948, § 750.89 (Stat Ann 1962 Rev § 28.284). He was sentenced to a term of 10-15 years’ imprisonment.
Defendant questions whether the plea of guilty was made freely, under standingly and voluntarily. He claims on appeal that he was equivocal in pleading guilty to the charge and, therefore, the court should not have accepted his plea. CL 1948, § 768.35 (Stat Ann 1954 Rev § 28.1058), and GCR 785.3(2). To support this claim defendant cites the following from the transcript:
“The Court: Why do you want to plead guilty? “Defendant Blewett: I believe that I was partially guilty.
“The Court: There is no such thing as ‘partially guilty’; you are either guilty or yon are not guilty.
“Defendant Bleioettr Well—
“The Court: Do you believe you are guilty?
“Defendant Blewett: (No response.)
“The Court: You are not sure?
“Defendant Blewett: I am not sure.
“The Court: Then you are not sure that you want to plead guilty?
“DefendantBlewett: Yes.
“The Court: ‘Yes’, what?
“Defendant Blewett: Pm not sure.
“The Court: All right. Step back. Step aside. Let me talk with Mr. Woods.”
After hearing Woods (Blewett’s co-defendant) plead guilty, defendant re-addressed the court:
“Mr. Plishow: Your Honor, would you reconsider talking to Mr. Blewett. at this time?
“The Court: Mr. Blewett is a pretty intelligent individual and he tells me that he has some doubt whether or not he is guilty. If he has any doubt, whatever, I don’t want him to come in here and say that he is guilty. He is entitled to be presumed innocent and he is entitled to compel the prosecution to produce the witnesses here to prove to my satisfaction that, he is guilty.
“Mr. Plishow: He is—
“The Court: (Interposing) You understand that, Mr. Blewett?
“Defendant Blewett: Yes, Ido.”
However, after further questioning of the defendant, the examining judge stated:
“The Court: You know what bothers me? You are still not prepared mentally to admit that you are guilty. You are still hedging and trying to make it sound as though it is not as bad as you think I might think it is.
“Now you are either coming clean and tell me everything or we go to trial. I don't want to convict someone on a plea of guilty -when he does not believe he is guilty.
* * *
“The Court: Why don’t you want to go to trial?
“Defendant Blew ett: (No response.)
“The Court: It might well be the prosecution can’t prove a case against you.
“Defendant Blew ett: (No response.)
“The Court: Do you want to have a trial?
“Defendant Blew ett: No, your Honor.
“The Court: You are sure that [sic] about that?
“Defendant Blewett: Yes, your Honor.
“The Court: Very well. I will accept the plea and refer the matter to the probation department.”
CL 1948, § 768.35 (Stat Ann 1954 Rev § 28.1058) reads:
“Whenever any person shall plead guilty to an information filed against him in any court, it shall be the duty of the judge of such court, before pronouncing judgment or sentence upon such plea, to become satisfied after such investigation as he may deem necessary for that purpose respecting the nature of the case, and the circumstances of such plea, that said plea was made freely, with full knowledge of the nature of the accusation, and without undue influence. And whenever said judge shall have reason to doubt the truth of such plea of guilty, it shall be his duty to vacate the same, direct a plea of not guilty to be entered and order a trial of the issue thus formed.”
GrCR 1963, 785.3(2) states:
“Imposing Sentence. If the accused pleads guilty, after such plea and before sentence the court shall inform the accused of the nature of the accusation and the consequence of his plea; and regardless of whether he is represented by counsel, the court shall examine the accused, not necessarily under oath, and as a condition of accepting the plea of guilty and imposing sentence shall ascertain that' the plea was freely, nnderstandingly, and voluntarily made, without undue influence, compulsion, or duress, and without promise of leniency. Unless the court determines that the plea of guilty was so made, it shall not be accepted.”
Defendant’s claim of equivocation is based upon three statements he made during the examination:
“I believe that I was partially guilty.”
“I am not sure [that he wants to plead guilty].”
“I kind of feel that this [pleading guilty] . is the best thing to do.”
Contrasted with these equivocal remarks are two occasions during the examination where defendant stated that he wished to plead guilty.
There is no question that defendant’s testimony regarding the facts of the crime clearly implicated him. He admitted that there was at least some preliminary discussion with co-defendant Woods regarding the commission of the crime. He also stated that he was to be the “look-out” and that he was the one who took the money.
CL 1948, § 768.35 (Stat Ann 1954 Eev § 28.1058) requires that the trial judge be convinced of the “truth of the plea of guilty” before accepting it. In People v. Dunn (1968), 380 Mich 693, the Court, in discussing the test of a valid plea of guilty, stated (p 700):
“* * * The purpose of the court’s examination as prescribed by rule is not to determine what the accused can expect the judge may do by way of disposition. The purpose is to find out if the accused is pleading guilty because he in fact is guilty, and that his plea of guilty is freely made. In the words of the statute, to determine the ‘truth of such plea.’ * * * ”
Although defendant at. times seemed equivocal; when the proceedings are viewed as a complete entity it is clear upon the record that defendant’s plea was made voluntarily. Defendant relies upon certain statements in the proceeding, but he takes them outside of their framework. When determining whether or not a plea is made voluntarily, this Court will look to the complete record and not merely fragmentary statements. The import of both the rule and the statute is that, on review, courts should be concerned with substance, not with form; that the fundamental inquiry is whether there has been a miscarriage of justice. People v. Dunn, supra; People v. Winegar (1968), 380 Mich 719.
Defendant has never alleged innocence. Indeed, at his sentencing, he reaffirmed his guilt.
Affirmed. | [
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T. M. Burns, J.
The defendant appeals his conviction and sentence under CL 1948, § 750.343a as amended by PA 1964, No 143 (Stat Ann 1969 Cum Supp § 28.575 [1]) for showing an obscene movie entitled “A Woman’s Urge” at the Capri Theatre which he operated in the city of Grand Rapids.
The pertinent facts are set forth in the trial judge’s decision on the motion for new trial:
“The testimony at the trial indicated that ‘A Woman’s Urge’ was shown at the Capri Theatre from February 2 to February 8, 1966. On the evening of February 3, 1966, certain police officers and officials of the city of Grand Rapids, together with professors from Calvin and Aquinas Colleges, attended the showing of ‘A Woman’s Urge’. Thereafter a meeting was held at the prosecuting attorney’s office and on the evening of February 8, 1966, members of the vice squad purchased tickets for the showing of ‘A Woman’s Urge’ and saw the entire film. Immediately thereafter, two members of the vice squad, who had seen the movie, went to the projection booth, there found Billy C. Sturgess in the projection booth, rewinding the film to ‘A Woman’s Urge’. The officers identified themselves and arrested Mr. Sturgess and seized the film incidentally to the arrest. Thereafter they permitted Mr. Sturgess to continue showing the motion picture which was then being shown and subsequently brought him to the police department where he was served with a complaint and warrant. Likewise a complaint and warrant were served upon Mr. Bloss, who came to the police department at the request of the police officers. At the trial several police officers testified in detail as to the movie and applied the ‘Roth test’ to the movie. In addition an expert witness from Aquinas College was called who testi fied relative to the movie and applied the Both test. The jury, after extensive deliberation, convicted Mr. Bloss.”
The defendant objected at trial to the admission in evidence of the film which he alleges was seized in violation of the Fourth and Fourteenth Amendments of the United States Constitution. The film was admitted over his objection and the jury found him guilty. The judge acquitted the projectionist.
Defendant asserts that the applicable statute (PA 1964, No 143 [CL 1948, § 750.343a (Stat Ann 1969 Cum Supp § 28.575[1])]) is unconstitutional because it is vague and indefinite. Clearly it is within the power of the legislature to enact such a statute, as obscenity is not within the area of protected speech or press under the First Amendment. Roth v. United States (1957), 354 US 476, 485 (77 S Ct 1304, 1 L Ed 2d 1498); Ginsberg v. New York (1968), 390 US 629, 635 (88 S Ct 1274, 20 L Ed 2d 195.) People v. Villano (1963), 369 Mich 428, which concerned the prior statute to which only the element of knowledge was added, indicates that the statute is not unconstitutionally vague in the eyes of the Supreme Court of Michigan. After a careful analysis of the statute we find that it is not vague in the constitutional sense.
.Certainly, however, it has been established that motion pictures are protected by the constitutional guarantees of freedom of speech and press unless they are obscene. Joseph Burstyn, Inc. v. Wilson (1952), 343 US 495 (72 S Ct 777, 96 L Ed 1098); Kingsley International Pictures Corp. v. Regents (1959), 360 US 684 (79 S Ct 1362, 3 L Ed 2d 1512); Jacobellis v. Ohio (1964), 378 US 184 (84 S Ct 1676, 12 L Ed 2d 793). Therefore, only if a motion picture is obscene can it be seized.
The people assert that this determination of obscenity can be initially made by the police. The people further assert that when an officer believes a film to be obscene a misdemeanor is being committed in his presence and that, consequently, he has a right to seize the film as evidence without first getting a warrant.
The defendant asserts that under the circumstances in this case it was not lawful for the officers to make an- arrest for a claimed misdemeanor committed in their presence. Defendant also. advances the theory that inasmuch as the officers had to make a determination as to whether or not a misdemeanor was being committed in their .presence that it was necessary to show that they were thoroughly acquainted with the test set down in the case of Roth v. United States, supra. The people assert that the officers were adequately informed as to the tests to be applied and knew what had to be considered in order to determine that the film was' obscene. In the criminal jurisprudence of our State it is not required that a police officer have a court determination as to the legality of an act before he makes an arrest. We do not think the ease of Lee Art Theatre, Inc. v. Virginia (1968), 392 US 636 (88 S Ct 2103, 20 L Ed 2d 1313), cited by defendant, wherein the Court seems to require some sort of an adversary hearing on questions of obscenity before a search warrant may be issued, is controlling in this case. Here the three officers, who had paid admission and entered the theatre in the line of duty, were faced with a situation in which they had probable cause to believe a crime was being committed in their presence. They were duty-bound to act.
The police officer arrests upon his own determination that a crime has been or is being committed in his presence. It is then for the court on the trial of the case to determine if the act charged is punishable.
From a careful review of the record we are satis-, fied that the officers who made the arrest did so after viewing the entire movie and that they had sufficient information as to the tests to be applied in order to judge the film obscene. We conclude that the arrest was legal and the seizure of the film was reasonable and lawful, being contemporaneous with a proper arrest. 2 Gillespie, Michigan Criminal Law & Procedure (2d ed), § 875. People v. Gonzales (1959), 356 Mich 247.
We must decide, therefore, whether the film is obscene in the constitutional sense as delineated by the Supreme Court of the United States. See Roth v. United States, supra; Redrup v. New York (1967), 386 US 767 (87 S Ct 1414, 18 L Ed 2d 515); Memoirs v. Massachusetts (1966), 383 US 413 (86 S Ct 975, 16 L Ed 2d 1); Ginzburg v. United States (1966), 383 US 463 (86 S Ct 942, 16 L Ed 2d 31); Mishkin v. New York (1966), 383 US 502 (86 S Ct 958, 16 L Ed 2d 56). For us to find that this movie is obscene, we must find that the dominant theme of the movie as a whole appeals to prurient interest in sex,, that it is patently offensive because it .goes beyond contemporary community standards relating to the description or representation of sexual matters, and that it is utterly without redeeming social value. Roth v. United States, supra. Unless we find that these three elements coalesce, we cannot find that it is obscene. Memoirs v. Massachusetts, supra, p 419. "We viewed the film and we find the necessary coalescence here. Therefore, we find the film to be obscene.
The film deals with the problems of a seemingly over-sexed young woman. Although it has a pseudo-psychoanalytical approach, its primary appeal is to a prurient interest in sex. This prurient appeal is the dominant theme of the movie as a whole. The film is utterly without redeeming social value. Further, we find that it goes beyond the contemporary national community standards in its descriptions and representations of sexual matters. We would note here that in making this decision as to whether this film goes beyond the contemporary standards, we took into consideration not just the content of the film but also the impact of the conditions under which this content is conveyed to the viewer. By this we mean that even though the acts and occurrences if they were described in the written word would not be obscene, the visual impact of seeing the same thing acted out in a darkened room with sound accompaniment may cause it to be obscene. We find support for this distinction in Landau v. Fording (1966), 245 Cal App 2d 820 (54 Cal Rptr 177), aff’d per curiam (1967), 388 US 456 (87 S Ct 2109, 18 L Ed 2d 1317) 5-4, reh den 389 US 889 (88 S Ct 16, 19 L Ed 2d 199). In Landau v. Fording, supra, the California court said, p 826:
“At the outset, we wish to make it patently clear that our conclusion is not based on the particular relationships depicted in ‘Un Chant d’Amonr’. We recognize that the constitutional guarantee is not confined to the expression of ideas that are conventional or shared by a majority (Kingsley Pictures Corp. v. Regents [1959], 360 US 684 pp 689, 705 [79 S Ct 1362, 3 L Ed 2d 1512]). We think there is no question that there could be an effective and dramatic film about homosexuality and sadism in prisons unaccompanied by any obscene matters (Kingsley, supra) or that a film unquestionably obscene under the applicable standard may not be so when limited to an audience of specialists (cf. United States v. 31 Photographs, Etc. [SD NY, 1957] 156 F Supp 350).
“But from the fact that liberty of expression by means of motion pictures is guaranteed by the First and Fourteenth Amendments, ‘it does not follow that the Constitution requires absolute freedom to exhibit every motion picture of every kind at all times and all places. * * * Nor does it follow that motion pictures are necessarily subject to the precise rules governing any other particular method of expression. Each method tends to present its own peculiar problems’ (Burstyn, supra, 343 US pp 502, 503 [72 S Ct p 781, 96 L Ed p 1106]).
“Furthermore, we think that the constitutional protection afforded does not mean that the visual impact of a motion picture as distinguished from other media can be disregarded. Films are obviously different from other forms of expression (Freedman v. Maryland [1965], 380 US 51, 61 [85 S Ct 734, 13 L Ed 2d 649]). The significance of the motion picture medium is due to the technological features of the particular medium. The unique combination of sight and sound that characterizes a motion picture makes the ideas presented by movies comprehensible to a larger audience than is the case in any other medium except television (see materials cited in 60 Yale LJ, 696, fns. 27 and 28, pp 707, 708, and 42 Cal L Rev, 122, fn. 53, p 128). Eyen in the absence of sound, movies assure a high degree of attention and retention. The focusing of an intense light on a screen and the semi-darkness of the room where distracting ideas and suggestions are eliminated contribute to the forcefulness of movies and their unique effect on the audience (60 Yale L J, supra, p 708).
“Because of the nature of the medium, we think a motion picture of sexual scenes may transcend the bounds of the constitutional guarantee long before a frank description of the same scenes in the written work. We cannot here disregard the potent visual impact of the movie in depicting acts of male masturbation, fellatio, oral copulation, voyeurism, nudity, sadism and sodomy without any clear reference or relation to a dominant theme.”
See, also, dissenting opinion of Chief Judge Lumbard in United States v. A Motion Picture Film Entitled “I Am Curious — Yellow” (CA2, 1968), 404 F2d 196.
The defendant also claims error in the instructions of the trial court. The court’s instructions on appeal are to be considered as a whole. From a careful reading of the instructions we find no reversible error.
Defendant asserts other errors which, after careful consideration, we do not deem of merit.
Since the seizure of the film was contemporaneous with a lawful arrest (see Grand Rapids City Attorney v. Bloss [1969], 17 Mich App 318), and since we find the movie “A Woman’s Urge” to be obscene in the constitutional sense, we affirm the conviction of the defendant.
Affirmed.
Holbrook, J., concurred.
“Any person knowingly either who sells, lends, gives away, distributes, shows or transmutes or offers either to sell, lend, give away, distribute, show or transmute, or has in his possession with intent either to sell, lend, give away, distribute, show or transmute, or advertise in any manner, or who otherwise knowingly offers for either loan, gift, sale or distribution, any obscene, lewd, lascivious, filthy or indecent sadistic or masochistic book, magazine, pamphlet, newspaper, story paper, writing, paper, phonograph record, picture, drawing, photograph, motion picture film, figure, image, wire or tape recording or any written, printed or recorded matter of an indecent character which may or may not require mechanical or other means to be transmuted into auditory, visual or sensory representations of sueh character, shall be guilty of a misdemeanor, and upon conviction shall be punished by imprisonment in the county jail for not more than 1 year or by a fine of not more than $1,000 or by both such fine and imprisonment.” | [
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Danhoe, J.
Defendant-appellant pled guilty on January 3, 1966, in the circuit court for Missaukee county to a violation of CL 1948, § 750.530 (Stat Ann 1954 Bev § 28.798), committing an assault and robbery not being armed with a dangerous weapon. On February 9, 1966, defendant was sentenced to 2 years’ probation and ordered to make restitution. Subsequently, at a hearing in the same court on December 20, 1967, the probation was revoked and the defendant was sentenced to 3 to 15 years’ imprisonment on the original charge. Defendant made a motion to vacate his guilty plea which was denied by the circuit court on July 15,1968 and defendant now appeals that decision.
The motion filed by the defendant addresses itself to the discretion of the court. People v. Vasquez (1942), 303 Mich 340. Since the motion is made after conviction and sentence it must be based upon a showing of a miscarriage of justice. People v. Winegar (1968), 380 Mich 719. Defendant, being convicted, no longer enjoys the presumption of innocence, and he has a burden of showing something more than technical noncompliance with the rules. In fact, he must show that there has been a miscarriage of justice. People v. Winegar, supra.
We are satisfied from a review of this record that the defendant intelligently and knowingly waived his right to counsel well knowing that he could have had counsel, either of his own choosing or court appointed. Examination of the transcript of the arraignment of the defendant and of a co-defendant, who was arraigned at the same time and on the same charge, reveals that the circuit judge advised the defendant of his right to an attorney, and advised bim of his right to either proceed at the present time, or wait for an attorney. The defendant chose to proceed and thereby waived his right to an attorney. People v. Dunn (1968), 380 Mich 693. Further, the •trial judge on several occasions advised the defend ant lie would be subject to sentence and a possible jail term in the State prison if he entered a plea of guilty. This was sufficient to advise the defendant of the consequence of his plea. People v. Menton (1967), 7 Mich App 267; People v. Jarboe (1968), 10 Mich App 476; and People v. Dunn, supra.
Defendant further alleges that he was not advised of his right to counsel at the time he was placed on probation. In this case the question is one of non-importance since the defendant was represented by counsel, of his own choosing, at the time his probation was revoked and the prison sentence imposed.
The defendant, neither in his brief, nor in his motion for new trial, contends that he is in fact innocent and that there has been a patent miscarriage of justice. It is incumbent upon the defendant to show that an injustice has occurred. People v. Winegar, supra; People v. Collins (1968), 380 Mich 131.
Affirmed.
Holbrook, J., concurred. | [
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Danhof, J.
Plaintiff commenced an action for refund of property taxes paid under protest as permitted under the authority of § 53 of the General Property Tax Act, a part of which provides that a person paying under protest may sue for the amount paid and recover if the tax or special assessment is shown to be illegal. There was a trial court judgment of no cause of action.
On appeal plaintiff contends that the so-called “freeze” statute, being § 152 of the General Property Tax Act, applies and also that the assessments giving rise to the taxes are such that they amount to substantially constructive fraud and are therefore illegal. No actual fraud or intentional wrong-doing is alleged or proven.
Specifically plaintiff attacks the tax assessments for 1964 on two parcels of vacant land owned by it as being so excessively high as to be outside the range of honest judgment and, therefore, illegal and invalid because constructively fraudulent.
Parcel 1, known as Northland North consisted of 70 acres zoned for single family dwellings at the time the assessment was made for the 1963 taxes, but rezoned as a multiple family residential district — high rise at the time the assessment was made for the 1964 taxes.
Parcel 2, known as Providence East, consisted of 19-1/2 acres zoned partly commercial and partly single family residence dwelling in 1963, but rezoned as an education-research-office district in 1964.
The assessment of the two properties changed as follows:
1963 1963 Michigan State 1964 Assessed Tax Commission Assessed
Northland North (70 Aeres) $351,350 $235,000 $1,054,050
Providence East (19 Acres) $117,900 $ 65,000 $ 393,000
Neither parcel was changed physically and no improvements nor buildings were added to the vacant land between December 31,1962 (tax day for 1963 taxes), and December 31, 1963 (tax day for 1964 taxes).
Plaintiff asserts that in January, 1964, the South-field assessor was in a dilemma because the 1963 assessments on the two parcels were being reviewed by the State tax commission, and apparently aware of the three year “freeze” provision in § 152 he wrote the commission asking for advice regarding his 1964 assessments. In February, 1964, the tax commission advised the assessor to:
“* * * place the values on the roll in accordance with his statutory duty for 1964 and if a change in the value for 1963 would be different than the 1964 valuation, the change would be entered on the 1963 roll by the Tax Commission and the same value would be entered on the 1964 assessment roll of the city of Southfield.” •
By order dated May 11, 1964 the tax commission fixed the assessments for 1963 at $235,000 on Northland North and $65,000 on Providence East. Plaintiff contends that because of the “freeze” provision that determination could not be changed for three years even though the two parcels were rezoned pursuant to city ordinance effective on November 27, 1963 (after the 1963 tax day but before the 1964 tax day).
In the trial court, defendants moved for' partial summary judgment, seeking a ruling that the “freeze” statute did not apply to this case. Correspondingly, plaintiff moved for summary judgment on the ground that it was entitled to relief because the “freeze” statute precluded the raising of the assessment for a three-year period.
At that time § 152 provided in part:
“When the assessment of any property has been reviewed by said commission as herein authorized, such assessment shall not be changed for a period of three years, where the property remains substantially the same, without the written consent of said commission.”
Subsequent amendment, not herein relevant, has eliminated the phrase “where the property remains substantially the same.” The trial court ruled that the statutory “freeze” of § 152 did not apply as the properties involved did not remain substantially the same for the tax years 1963 and 1964, and that the State tax commission had given written consent to change the assessments by its order of December 21,1964.
This Court affirms the granting of the partial summary judgment for the reason that the statutory “freeze” of § 152 does not apply because tbe properties involved did not remain substantially the samp due to rezoning. Plaintiff’s argument that the phrase “where the property remains substantially the same” is limited to physical changes in the land and excludes changes in permitted use of the land is without merit. As stated in defendant’s brief,
“Physical change is really only another form of change of use. When property is physically changed it changes- the use to which the property may be put and the Assessor must translate the physical change into value — the only characteristic reflected on the assessment roll.”
Having found that the rezoning in the instant case resulted in a substantial change to the properties, it is not necessary to make a determination regarding the question of written consent of the State tax commission.
Plaintiff next contends that the assessments are so excessive as to be outside the range of honest judgment and, therefore, fraudulent as a matter of law. However, the record discloses that the assessments were within the range of the appraisals, albeit at the top of the valuations. No evidence was introduced showing the assessment of other property in the city of Southfield, so there is nothing before this Court upon which it could base a finding of discriminatory over-assessment. An over-valuation of land is not by itself sufficient evidence of fraud, Auditor General v. Stiles (1890), 83 Mich 460. This Court finds no violation of the rule of law which protects against intentional and arbitrary discrimination in the execution of the tax laws,- Twenty-Two Charlotte, Inc. v. Detroit (1940), 294 Mich 275.
It is appropriate to observe that following the assessor’s determination of the 1964 tax assessments on the two properties in question, appellant had them reviewed by the board of review and the State tax commission, both of which approved the assessor’s decision. Plaintiff did not appeal from the tax commission’s determination.
Plaintiff directed its last two questions to the trial court’s rulings that the city assessor could not be questioned concerning the method he used to assess the property and to the trial court’s admitting into evidence a partnership agreement setting forth the value for a portion of one of the parcels of land. This Court does not find those rulings prejudicial as they go to the amount or size of the assessment which plaintiff has not proven to be either intentionally or constructively fraudulent. Plaintiff had an opportunity before the local board of review and the State tax commission to present all its evidence relative to valuation. If plaintiff could have shown fraud, error of law, or the adoption of wrong principles, it could have sought judicial review of those administrative decisions. The plaintiff is not entitled to go into valuation per se in a tax fraud case unless it tends to prove the illegality of the tax. Plaintiff has not offered proofs of discriminatory over-assessment, nor is the total assessment beyond the bounds of honest judgment. The record does not substantiate the allegation of constructive fraud resulting in an illegal tax. Here our review must end.
Affirmed, costs to the appellee.
All concurred.
CL 1948, § 211.53 as amended by PA 1962, No 133 (Stat Ann ’,969 Cum Supp § 7.97).
CLS 1961, § 211.152 (Stat Ann 1960 Eev § 7.210).
See also Allied Supermarkets, Inc., v. State Tax Commission (1969), 381 Mich 693, bolding that when that agency’s decisions are subjected to judicial review they must be supported by competent, material and substantial evidence on the whole record to be upheld. | [
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Fitzgerald, P. J.
This appeal is based on an equitable action to foreclose a mechanic’s lien filed by the plaintiff and general contractor, Canvasser Custom Builders, against defendants Alex Seskin, Muriel Seskin and Service Investment Company. Defendant Alex Seskin is the sole stockholder of Service Investment Company, which is the owner of record of the property involved in this action. Muriel Seskin is the wife of defendant Alex Seskin.
The dispute is contractual in nature and arose over the construction of the Abbey Convalescent and Nursing Home in Warren, Michigan. The principal witnesses on matters relating to the disputed agreements for construction of the nursing home are Robert Canvasser for plaintiff and Alex Seskin for defendant.
The long chain of events which culminated in litigation between the parties began at a meeting in the offices of architects Tobocman & Lawrence, who had been engaged by defendants Seskin to draw the plans and specifications for the Abbey Convalescent and Nursing Home. During this meeting in April, 1962, Mr. Seskin met Marvin Canvasser, an officer of plaintiff corporation. Several meetings were held between the parties and on July 27, 1962, a document entitled “Preliminary Notes” was drafted by the parties and later admitted into evidence during the trial as Exhibit D, the alleged written agreement between the parties regarding construction of the nursing home. Under defendants’ interpretation of Exhibit D, plaintiff was to be paid a fixed fee of $25,000 for supervision of construction and an amount for “unique contributions”, determination of the amount being left to the sole discretion of defendants.
It is alleged by plaintiff that the only contract between the parties was oral in nature, the product of a telephone conversation between Robert Canvasser and Alex Seskin on July 27, 1962, and confirmed by a handshake the following day. It is alleged further that no final written contract was ever executed although they repeatedly requested such an agreement. Plaintiff avers that Exhibit D was never intended by the parties to express the full understanding between them as it was clearly marked “Preliminary Notes” and “to be reduced to A.I.A. contract”. Under the aforementioned oral agreement plaintiff was to be paid:
A. Base fee of $25,000 to be paid within 2 years. No interest was to be charged if paid within one year from date of closing and interest at 7% if not so paid within one year;
B. 40% of any savings if construction costs were less than $240,000;
C. 10% for extras;
D. $1,000 per week for each week completion was achieved prior to February 1, 1963; and
E. Reasonable compensation for so-called unique services which were apparently defined as those that are not normal contractor services.
The defendants deny the existence of items B, C and D of the alleged oral agreement. After July 27, 1962, the date of the two disputed agreements, construction commenced in accordance with the plans and specifications.
On January 29, 1963, the city of Warren, Michigan, issued a conditional certificate of occupancy, and on February 7, 1963, Robert Canvasser presented a “special bill” to defendant Alex Seskin who refused to pay, stating that it was contrary to their prior written agreement of July 27, 1962. On February 15, 1963, defendants delivered a check for $3,000 as payment in full for “unique contributions” although, as indicated in the record, they felt there was nothing due plaintiff: in that connection and payment was made under protest to avoid interference with defendants’ mortgage.
On March 6, 1963, plaintiff took steps to perfect a mechanic’s lien and on June 4, 1963, action was begun. Defendants answered, denying the existence of the oral agreement and contending that the only-agreement was in writing and was contained in the preliminary agreement of July 27, 1962 (Exhibit D). Defendants also counterclaimed, denying completion in accordance with plans and specifications and charging faulty construction, stating that $32,-950 would be required to correct the defects. Fifteen thousand dollars had been paid plaintiff on sums due before completion of the building and as mentioned above, an additional $3,000 thereafter for “unique services”.
It was the holding of the lower court that the contract between the parties was evidenced by the oral agreement of July 27, 1962, and the written notations of the same date were not the final intentions of the parties and, hence, not binding upon them. The judgment provided that there was a lien on the premises in the amount of $23,585, taxation of $793.50 in costs, witness subpoena fees of $60, attorney fees in the amount of $4,900, and interest of $5,159.42 to the date of judgment; statutory interest on the judgment to commence running with the judgment and a sheriff’s sale to be made within 30 days of judgment.
Motion for a new trial was made by defendants and subsequently denied by an order dated November 28, 1966. A judgment was entered on November 28, 1966, from which this appeal was brought.
The main issue with which we are faced on this appeal is whether the trial court erred in its determination that the alleged written agreement entitled “Preliminary Notes” signed and dated on July 27, 1962, was superseded by the alleged oral agreement of the same date.
It is the contention of the plaintiff that a construction contract may be orally agreed upon after the signing of a series of preliminary notes of con versations which were never reduced to a formal A.I.A. contract as originally intended. Plaintiff also asserts that defendants’ Exhibit D was not so complete in its terms as to preclude oral evidence which was contradictory. The defendants’ position is that the written agreement was the only contract between the parties and the trial court erred in admitting parol evidence to contradict a written instrument which stated the basic terms of an understanding and was dated and signed by the parties to be bound.
In the case at bar, the trial court was faced with the difficult task of determining which of the two alleged agreements was to stand as a final monument to the thoughts and understandings of the parties. It is a universal rule of law that an instrument which is complete upon its face, unambiguous in its terms, intended by the parties to be a complete integration of their agreement and signed by the parties to be bound cannot be varied or contradicted by parol evidence in the absence of fraud, duress or mistake. However, it is an equally well entrenched rule that parol evidence may be introduced for purposes of proving to the court which of two alleged agreements was the actual contract of the parties. This seemingly paradoxical situation is explained in 3 Corbin on Contracts, § 582, p 450, which states:
“The very testimony that the ‘parol evidence rule’ is supposed to exclude is frequently, if not always, necessary before the court can determine that the parties have agreed upon the writing as a complete and accurate statement of terms. The evidence that the rule seems to exclude must sometimes be heard and weighed before it can be excluded by the rule.” See, also, 9 Wigmore, Evidence, § 2430(2).
The test of a document’s completeness is set forth in Brady v. Central Excavators, Inc. (1947), 316 Mich 594, which states:
“The test of the completeness of the writing proposed as a contract is the writing itself; so if it hears evidence of careful preparation, of a deliberate regard for the many questions which would naturally arise out of the subject matter of the contract, and it is reasonable to conclude that the parties have therein expressed their final intentions in regard to matters within the scope of the writing, then it will be deemed a complete and. unalterable exposition of such intentions, but if the writing shows an informality on its face, there will be no presumption that it contains all the terms of the contract.”
It is clear from an examination of Exhibit D that it may well have been the intention of the parties that it should not represent a final agreement. The document, although dated and signed, is titled “Preliminary Notes” and a notation on the margin of the paper states that it was “to be reduced to A.I.A. contract”, which obviously denotes that something of a more final and complete nature was to follow. We note further that the instrument is a maze of scratched-out sentences and afterthought additions. It does not clearly appear that the parties “have therein expressed their final intentions in regard to matters within the scope of the writings”, and hence does not merit the presumption of completeness set forth in Brady, supra. See, also, Antonoff v. Basso (1956), 347 Mich 18.
In the transcript of the lower court proceedings, testimony of Alex Seskin and Robert Canvasser indicates that Exhibit D was a memorandum of notes compiled from discussions which took place in July, 1962. Both, parties agreed that it was to be reduced to a more complete contract at a later date, but it appears that although an instrument was prepared, it was never signed and agreed to by both parties. As the trial court stated in its opinion on defendants’ request for reconsideration of findings: “It leads to the inescapable conclusion that Exhibit D was never considered by either party to be the agreement between the parties.”
The alleged oral contract does not differ so greatdy from defendants’ Exhibit D as to appear that the preliminary notes were entirely discarded. The basic difference lies in three provisions whose existence was entirely denied by Alex Seskin. A close examination of Exhibit D discloses that the alleged “savings provision” was included in some form in the preliminary notes; however, no mention appears to be made regarding a percentage figure for extras and a bonus for early completion of the building by the plaintiff.
We note from the opinion of the trial court that proof of the “early performance” claim was not clearly established and hence was disregarded. Thus, the present dispute concerned only the terms of the savings provision and whether compensation would be paid for extras. The trial in the instant case was quite lengthy and considerable testimony was taken from both sides which was considered and weighed by the trial judge in reaching his conclusion.
- As was- stated above, the document entitled “Preliminary Notes” and introduced as Exhibit D does not appear to be complete upon its face; it conveys considerable uncertainty and, by its own nature and wording, does not purport to be the final legal obligation between the parties.
We therefore affirm the decision of the trial court and hold that it did not err in its consideration of parol evidence, and we have also concluded from our examination of the record that the trial court did not clearly err in finding that an oral agreement of July 27, 1962, superseded all prior preliminary negotiations and hence became the final and binding contract of the parties for the construction of the Abbey Convalescent and Nursing Home.
We note that the trial court imposed a lien in the amount of $23,585 which was based upon the itemization of costs found in Exhibit IV. Since the “early performance” claim was not clearly established and was disregarded by the trial court, we hereby exclude item 47 of Exhibit IV and order the amount of the lien reduced by $2,500 to read $21,085.
Costs to appellees.
All concurred. | [
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Per Curiam.
Defendants were tried and convicted of conspiracy to obstruct justice in connection with violations of the State gambling laws.
They appeal on the ground that they were deprived of a fair and impartial trial because of press reports of comments by the trial judge criticizing the Michigan Supreme Court for releasing on bail during the pendency of his appeal to that Court of a person who had been convicted of contempt of a one-man grand jury.
After a careful examination of the three jurors who had heard or read the press reports as to whether their feelings and decision would be prejudiced by the comments, the trial judge found that the jurors were not prejudiced by the comments made to the news media by the judge, and he found no connection between that ease and the case at bar. We find no basis for reaching a different conclusion and are persuaded that the defendants were not deprived of a fair and impartial trial. See People v. Jenkins (1968), 10 Mich App 257, 261, 262; People v. Pearson (1968), 13 Mich App 371; People v. Freeman (1969), 16 Mich App 63; People v. Bloom (1969), 15 Mich App 463, 467-474; Irvin v. Dowd (1961), 366 US 717 (81 S Ct 1639, 6 L Ed 2d 751).
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Cynar, J.
The defendant was arraigned on the complaint and warrant by Recorder’s Court Judge David I. Kaufman. The arraignment was conducted on December 16, 1966, at Detroit General Hospital where the defendant was being held while recovering from gunshot wounds sustained at the scene of the crime. On January 25, 1967, a request was made to have the court appoint counsel, and an attorney was appointed on the same day to represent the defendant. An examination was held on February 8, 1967; the record reflects defendant was represented by counsel and, at the time the case was called, both the prosecutor and the defendant’s counsel stated they were ready for their respective sides. The prosecution submitted testimony and moved that the defendant be bound over for trial, the defense having no opposition to the motion. Thereafter, a motion to quash the information and to discharge the defendant was made and heard by the court. The motion to quash was based on the following grounds:
(1) That while the defendant was arrested on December 13, 1966, he was not arraigned before a magistrate until December 16, 1966;
(2) That during the period of time and at the time of his arraignment, he was not represented by counsel;
(3) That his arraignment took place at a time when the defendant wounded by gunfire and in great pain was a police prisoner at the Detroit General Hospital and, although before such arraignment requested that he be permitted to first seek the advice of counsel, the court denied his request;
(4) That from December 13, 1966, until December 28, 1966, and prior to and until after his arraignment, he was held in custody by the police, during all of which time he was denied the right to make a telephone call, or to have one made for him or permitted to have visitors, or prevented from seeking the advice of counsel, friend, or relative;
(5) That by reason whereof he was denied his rights under Article VI and Article XIV of the Amendments to the Constitution of the United States of America.
The motion to quash was denied.
At the trial, the proofs indicated the following:
On December 13, 1966, at about 11 p.m., Helen Hall, an owner of a party store in the city of Detroit, was filling a beer cooler when two men walked into the store. James Sullivan, who was one of the men, had a gun; and he said to her, “This is a stickup,” and “Who else is in the store with you?”. While she replied no one was in the back, she knew John Croce was in the back part of the party store with a rifle. She had hired Croce who stayed in back with a gun because of previous trouble in the party store. While the prosecution was questioning this witness on direct examination, defense counsel objected to that portion of the answer relating to the reason why John Croce was in the back of the party store. The objection was on the basis that the witness made a voluntary statement relating to other crimes. A motion for a mistrial followed the objection. The court denied the motion for mistrial, stating the witness merely explained why she had someone in the back of the store, and it had nothing to do with the defendant. As the defendant marched her to the back of the store, John Croce came from the back and fired a shot, and she felt the man fall against her. She went down to the floor and as she did so, she heard the clicks of a gun behind her. While Sullivan had a gun in her back, the other man went to the register and took money out of it. The other man ran out of the store when the shots were fired. There had been no customer in the store for about five minutes before the entrance into the store by Sullivan and the other man.
John William Croce stated that at the time and date stated he was working part-time in the party store as a guard. He did not see the men come in. He looked through the beer cases and saw a man holding Mrs. Hall. He grabbed his rifle, came out, and from five feet fired at the man, and thereupon, Mrs. Hall and the man holding her dropped to the floor. The man let Mrs. Hall go, pointed the gun at Croce and pulled the trigger twice; but both times the gun missed fire. Thereupon, Croce fired again and hit Sullivan in the neck and fired three other shots at the man who had been at the register.
Darwin Anstiss, a police officer for the City of Detroit, while on duty, received a radio call on a hold-up, proceeded to the party store and on arrival found the defendant in a sitting position against the beer cooler with a gun near him. The gun contained five cartridges; two cartridges had indentations from being fired, indicating the trigger had been pulled but the bullets did not explode. He examined the defendant and at first thought the defendant was dead. He saw that the defendant had a hole in his neck. The defendant was taken to the hospital.
Defendant Sullivan testified he walked alone into the party store to get some cigarettes. At the time he walked in, he saw no other man enter the store and did not see any man go to the cash register. As he walked into the store, he dropped a coin on the floor, bent down to pick it up, and was shot. The man who shot him stood over him; and, as he picked himself up to ask why he was shot, he was shot a second time. He was unconscious while entering the hospital and was in the hospital for 34 days. He denies having a gun or being involved in a hold-up. On cross-examination, the prosecution asked a question regarding his arrest for and conviction of any felony. The defense made an objection, and the court overruled the objection, ruling that the answer would be received for purposes of credibility. The defendant answered that he had been previously arrested and convicted of a felony. In the instruction, the court clearly charged the jury as to what weight and credibility was to attach to the defendant’s testimony regarding his previous convictions.
The defense offered a medical report dated January 6, 1967, from the Detroit General Hospital. There being no objection, the court received it. The medical report indicated that defendant James Sullivan was received having two gunshot wounds. A bullet entered just posterior to ramus of right mandible and passed out in back of the neck at about level C-6. The other bullet entered just posterior to the lateral end of the clavicle coming to rest inferior to the scapula. The record indicated the patient was suffering paralysis of the left hand. The X-rays reveal evidence of a metallic bullet in the left upper lung field. There was indication of some paralysis of the neck movement.
The defendant contends that the denial of his request for counsel at the arraignment on the warrant and complaint violated his Constitutional rights guaranteed by the Sixth and Fourteenth Amendments of the United States Constitution. This alleged violation was not raised until after the examination was held. The right to counsel comes into being at that stage of the legal proceedings where the defendant’s rights may be adversely affected without legal advice. United States v. Wade (1967), 388 US 218 (87 S Ct 1926, 18 L Ed 2d 1149); Escobedo v. Illinois (1964), 378 US 478 (84 S Ct 1758, 12 L Ed 2d 977).
Nothing in the record of this case indicates that any statements, admissions, or other forms of evidence were received during the period that the defendánt was without counsel, nor is there any showing the defendant was affected adversely, was harmed, or was prejudiced in any manner in his preparation before trial or in the trial by the fact that he did not have counsel at the arraignment.
The right to counsel is limited to a right to counsel at the critical stages of the proceeding. People v. Dye (1967), 6 Mich App 217. The United States Court of Appeals for the Sixth Circuit made this observation in the case of Lundberg v. Buchkoe (CA6, 1968), 389 F2d 154, 158:
“It cannot be said that Michigan’s arraignment and preliminary examination proceedings, in and of themselves, constitute a critical stage of the proceedings. Nor were there any special circumstances in appellant’s case which might suggest that the proceedings were critical; no plea or statement Avas in fact obtained from appellant at his arraignment and, aside from his right not to be held in custody absent probable cause, appellant neither lost nor waived any right or defense.”
The defendant argues that his constitutional rights were violated by not being allowed to communicate by telephone, or to have visitors, or to seek the advice of counsel, friend, or relative from December 13, 1966, until December 28, 1966, before and after his arraignment. There is no dispute regarding the severe impairment in the defendant’s health while hospitalized. Restricting a person’s right to communicate with friends, relatives, or visitors, as alleged, is strongly disapproved. However, even if true in this case, this allegation of error standing by itself does not presuppose prejudicial error under the existing circumstances.
On direct examination, the prosecutor asked the following question of Helen Hall.
“Q. Will you tell the court and jury what happened?
“A. Well, I was filling the beer cooler and just as I was about to finish filling it up, in walked two men and all I seen was this J ames Sullivan; he came behind me immediately; I though he was just a regular customer because we get a lot of transients and he walked in very, very fast and before I could even say ‘May I help you?’ he had a gun in my back and says, ‘This is a stiekup’; and he says ‘Who else is in here with you?’ Well, I knew I have a hired employee there that stays back there with a gun because we have had trouble there before, so * * *”
Defense counsel objected on the record to the witness volunteering the answer which referred to other crimes- and, further, defense counsel moved for mistrial on the ground that the statement was prejudicial. The court denied the motion, stating that the witness only explained to the jury why she had someone in back of the store and that it had nothing to do with the defendant. The question asked by opposing counsel was not necessarily not responsive ; and, even if it were, it appears that a question by the prosecution as to why Croce was in back of the store with a gun would have been in order. Neither the response by the witness nor the court’s ruling constitutes reversible error.
Affirmed.
McGregor, P. J., concurred.
Fitzgerald, J., concurred in result only. | [
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Bronson, J.
Defendants own property in and directly behind a residential subdivision. It is their intent to develop the property situated behind the subdivision. To reach this land defendants propose to situate a permanent hard-pavement roadway through their property in the subdivision permitting access to their parcel of land behind the subdivision via the street leading into the subdivision from 24 Mile Road. Plaintiff, a property owner in the subdivision, filed suit in the Macomb county circuit court seeking a preliminary injunction and restraining order that would prevent defendant from erecting a connective roadway through subdivision lot 118. Plaintiff asserted that the use of lot 118 for purpose other than the construction of a dwelling house would constitute a violation of the building restrictions contained in the deeds for lots which were a part of the subdivision in which both plaintiff’s property and lot 118 lie. The circuit court issued a temporary restraining order and then held a hearing to show cause why the temporary order should not be continued. Following the show cause hearing the court issued a perpetual injunction against defendants’ constructing of a roadway through lot 118. From this perpetual injunction, defendants appeal.
Plaintiff’s property, subdivision lot 119, fronts on Antoinette Court. Defendants’ property within the subdivision also fronts on Antoinette Court. That street is a cul-de-sac perpendicular to, and south of, 24 Mile Road. Plaintiff’s property is south of that of defendants’ and thus no traffic entering Antoinette Court which would be proceeding to defendants’ intended roadway would have to pass in front of plaintiff’s house. Defendants propose to construct their roadway 20 feet north of the lot line common to their lot and that of plaintiff. The 20-foot strip is to he maintained with grass and foliage.
We find the case of R. R. Improvement Association v. Thomas (1965), 374 Mich 175, to he controlling. In Thomas the defendant also sought to construct a roadway for the purpose of developing land outside the' subdivision. Similar building restrictions were contained in the deeds of the property defendant desired to use for a roadway. There the court stated, pp 182, 183:
“The pinpointed fact is that appellant has built her case upon more recent Bove v. Giebel, 169 Ohio St 325 (159 NE2d 425) (followed in McInerney v. Sturgis, 37 Misc 2d 302 [234 NYS2d 965]). The Bove Case lays down what the court in Mclnerney said (p 306) is ‘an equitable rule to be applied to cases of the instant kind.’ The facts in Rove are much like those with which we — in the instant case— are thus far acquainted. The court reasoned and ruled:
“ ‘As to property in a subdivision, that is restricted to use for residence purposes only, there have been decisions preventing its use as a means of ingress to and egress from property outside the subdivision that is not restricted to the same extent as the property within the subdivision. See 14 Am Jur, Covenants, Conditions and Restrictions § 255, p 635, and supplement thereto; 25 ALR2d 904, 175 ALR, 1191, 1207, 39 ALR 1083. However, we have found no cases involving a situation such as presented by the instant case where the property outside the subdivision will be restricted by its owners to the same extent as that within the subdivision. Hence, our conclusion is that the owners of a lot in a subdivision, which lot is restricted to use “for residence purposes only,” may use such lot as a means of ingress to and egress from adjoining land that they own outside the subdivision if they impose upon such outside land the same restrictions that are applicable to lots within the subdivision.’ ” (Emphasis added.)
The Supreme Court thereafter concluded in Thomas at pp 183, 184:
“We agree, but with reservations. Before applying Bove’s rule to this case, the trial court should be informed by due testimony whether and how, if at all, the present residential advantages enjoyed by Brookside lot owners will or might be adversely affected by appellant’s proposal; whether a new traffic burden or maintenance problem will thereby be cast on dead end South Hills road, or for that matter, upon any other part of the subdivision’s roadways; whether the private roads of the subdivision as dedicated have since become public roads; whether appellant’s intended specifications for grading of the west 70 feet of lot 15 and of location on parcel 3 of the two proposed homes will in any way, aesthetically or otherwise, impair the restriction-assured enjoyment of home ownership in the subdivision; whether strict conformity with the restrictions has been waived (as claimed by appellant in her vain motion to set aside summary judgment) and, in general, whether there are fair distinguished from carping or trifling reasons for denial to appellant of that which is sought by her.
“Cook v. Murlin, cited above, sets the tone for due inquisition on remand. Would grant of relief to appellant harm appellees in any way! If so relief should be denied. Otherwise relief should be granted in accordance with the ascertained equity of the case. Murlin proceeds (pp 559, 560):
“ ‘If plaintiffs’ claim were to be upheld, it would result in doing a great injustice to defendants, without any corresponding benefit to plaintiffs. To permit this driveway to stand and be used as a means of reaching East avenue from defendants’ lands in the rear of the Golfside Acres tract, no possible harm can come to plaintiffs, and they made no attempt on the trial to prove damages. To close this private driveway, which would result from the sustaining of this judgment, defendants would he deprived of an easy, short, and convenient way of reaching East avenue over their own property, and would he compelled to adopt, as their only way of ingress to and egress from the 11-acre tract, the inconvenient, dangerous, and much longer route by way of the Kelly road, and over the Rochester & Syracuse double-track railroad. In the case of McClure v. Leaycraft, 183 NY 36, 44 (75 NE 961, 963, 5 Ann Cas 45), the Court of Appeals said:
“ ‘ “An injunction that bears heavily on the defendant, without benefiting the plaintiff, will always be withheld as oppressive.” ’ ”
Admittedly, there are a number of facts in the present case which might distinguish it from Thomas. However, these distinctions do not materially vary from those presented to insulate this case from the rule announced in Thomas. While the distinctions may be important factors with regard to the question of the harm that may be caused to the owners in the subdivision subject to the original restrictions, they do not prevent the initial application of the general rule approved in that case. The clause involved in Thomas read as follows:
“ £(b) That each lot and buildings thereon shall be used only for strictly private residence purposes, and no building shall be moved onto any lot or lots in said plat.’ ” p 178
The clause involved in the present case reads as follows:
“No more than one single dwelling house shall be erected on one lot of the original recorded subdivision, except Mound Road frontage lots may be used for duplexes and business, provided that when such uses are commenced they do not conflict with the lawful Governmental zoning laws.”
If anything, the restriction in this case is less restrictive than that involved in Thomas.
The only requirement that apparently must he met before the rule may be applied is that the restrictions of the two tracts be substantially identical. Defendants have apparently met that burden. On that basis the only question remaining is whether the testimony in this case provided sufficient information to satisfy the requirements established by Thomas at pages 183 and 184, justifying the non-application of the so-called Bove rule. (See Thomas, supra, pages 183 and 184.)
A review of the transcript does not reveal any testimony as to “whether and how, if at all, the present residential advantages enjoyed by * * * lot owners will or might be adversely affected by appellants’ proposal.” Plaintiff merely testified that he did not want a road at the proposed location and that he did not want a corner lot. No positive testimony was presented as to exactly how the construction of this roadway would injure plaintiff’s, or any other resident’s, use and enjoyment of their property. In this same light there was no positive testimony in the record that would indicate that an unfair traffic burden would be created and there was no real indication in the record that plaintiff’s objections to the roadway constituted any more than carping or trifling reasons for denial of defendants’ construction of the roadway over lot 118.
The source of difficulty in the present case is the differing emphasis placed by the trial judge and each litigant on certain language in R. R. Improvement Association v. Thomas, supra. In Thomas the Court states, pp 183, 184:
“* * * [T]he trial court should he informed by due testimony • * * # in general, whether there are fair distinguished from carping or trifling reasons for denial to appellant of that which is sought by her.
“Coolí v. Murlin, cited above, sets the tone for due inquisition on remand. Would grant of relief to appellant harm appellees in any' wayf * * * Murlin proceeds (pp 559, 560):
“ ‘If plaintiffs’ claim were to be upheld, it would result in doing a great injustice to defendants, without any corresponding benefit to plaintiffs. * * * In the ease of McClure v. Leaycraft, 183 NY 36, 44 (75 NE 961, 963, 5 Ann Cas 45), the Court of Appeals said:
“ ‘ “An injunction that bears heavily on the defendant, without benefiting the plaintiff, will always be ivithheld as oppressive.’” ” (Emphasis added.)
In Thompson v. Enz (1967), 379 Mich 667, the Supreme Court dealt with riparian proprietors who proposed to dig artificial channels and then subdivide the back properties so that each lot owner would have waterway access to the lake. Justice Brennan, in his dissenting opinion in Thompson, addressed himself, not to the question of riparian rights of the subdividers but, rather, to the potential harm done to the riparian rights of other owners of lakefront property.
“It would seem that if the owner of riparian lands can lawfully dig a canal onto his own property, for his own use, he can grant easements in and to the canal to nonriparian property owners. The real issue in this case, then, is: Can this defendant lawfully dig this proposed canal on his property?
“Absent statutory regulations to the contrary, mere alteration of the natural shoreline does not per se adversely affect the riparian rights of other owners of lake front property. * * *
“Whether the dredging of any given canal by a riparian owner constitutes an infringement upon the riparian rights of the other riparian owners is a question of fact.
*********
“In short, these riparian plaintiffs have the burden of alleging and proving some actual damage to themselves that will flow from the dredging of the canal.” 379 Mich 667, 697.
We feel that the test to be applied is not “harm [to] appellee [s’] in any way” but, rather, whether or not there is a non-trifling serious damage which would warrant “an injunction that hears heavily on the defendant”. We therefore remand for testimony and determination as to what actual detriment construction of the proposed roadway will cause plaintiff. As plaintiff was suing only in his own right and not on behalf of other property owners in the subdivision, it must be shown that any added traffic will harm plaintiff.
This in no way is meant to bar any class action or impleading of other lot owners as co-plaintiffs.
Remanded for further proceedings not inconsistent with this opinion.
All concurred. | [
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T. M. Burns, J.
Plaintiff, individually and as next friend of her minor son, James Jackson, filed an action on June 21, 1967, in Wayne Circuit Court against the defendant, City of Detroit Board of Education. Plaintiff sought to recover damages for injuries allegedly sustained by her minor son in an accident at the Brady School, which is owned and operated by the defendant, when the infant, in response to an instruction or request of one of defendant’s employees, attempted to close a door which was being held open by an allegedly defective door closing mechanism.
The plaintiff alleges in the complaint, a certified copy of which was duly served on the defendant along with the summons on or about June 23, 1967, that on May 4, 1967, the infant plaintiff had the second finger of his right hand cut off when it was caught in a door closing mechanism at the Brady School. The complaint contains a recitation of the alleged facts involved including the location and nature of the defect and the name of the only known witness, an employee of defendant.
Prior to the filing of this action, actually on May 5, 1967, the day after the injury was suffered, the plaintiff’s attorney notified the defendant by letter of his representation of the plaintiff in all matters concerning the injuries sustained in the accident. The defendant’s response to that letter was “The Board of Education does not carry liability insurance that would cover a matter such as this.”
On July 5, 1967, the defendant’s attorneys filed a notice of appearance and then on July 12, 1967, they filed a motion for accelerated judgment pursuant to GOB 1963, 116, urging that judgment be entered dismissing the complaint for the reason that plaintiff had failed to give verified, timely notice pursuant to § 6 of PA 1964, No 170 (MOLA § 691.1406 [Stat Ann 1969 Cum Supp § 3.996 (106)]). The lower court granted the motion for accelerated judgment and dismissed plaintiff’s complaint.
PA 1964, No 170, as the lower court correctly states in its very scholarly opinion, sets forth conditions precedent to recovery ag*ainst an agency engaging in a governmental function. Failure to comply with the notice requirement set forth in the statute, therefore, would bar recovery.
The lower court found that the plaintiff failed to give the notice called for by the statute because in its view, as expressed in the opinion of the court, “that the action being statutory, strict compliance with its requirements is necessary, and the fact that the plaintiff is a minor does not excuse compliance.” Although we agree with the lower court with regard to the infancy of plaintiff James Jaclcson not being an excuse for non-compliance, we disagree as to the strictness of compliance necessary in a notice situation such as this to preserve the right to recovery.
Initially, we would note that the trial court’s opinion was given prior to the recent case of Meredith v. City of Melvindale (1969), 381 Mich 572, where the Supreme Court declared, as a matter of judicial policy, a liberal construction of notice requirements. Although the Court in Meredith v. City of Melvin-dale, supra, was not concerned directly with the statute in question here, it said, p 580, “This Court is committed to the rule requiring only substantial compliance with the notice provisions of a statute or charter.”
We consider the purpose of the notice provisions in PA 1964, No 170 to be the same as thqse found in Meredith v. City of Melvindale (1968), 11 Mich App 208, 210, 211 which the Supreme Court was considering in Meredith v. City of Melvindale, supra, p 579, where it said:
“ ‘The purpose of the charter provision is to furnish the municipal authorities promptly with notice that a claim for damages is made, and advise them of the time, place, nature, and result of the alleged accident, and a sufficient statement of the main facts, together with names and witnesses, to direct them to the sources of information that they may conveniently make an investigation.’ [Pearll v. City of Bay City (1913), 174 Mich 643].”
The Supreme Court said in Meredith, supra, that it favored this liberal construction of notice requirements, “on the theory that the inexpert laymen with a valid claim should not be penalized for some technical defect.” (p. 579.) This Court has applied Meredith, supra, in the cases of Republic Franklin Insurance Company v. City of Walker, and Moore v. City of Walker, which were heard and decided together (1969), 17 Mich App 92.
The defendant concedes that the statutorily required notice may be given by filing and service of a complaint within the 60-day period prescribed by statute for giving notice but asserts that a complaint which is to serve as notice must be verified by the injured person. We need not decide whether PA 1964, No 170 requires the injured person himself to verify the notice because we are satisfied that if the injured person is, as in this case, a minor his representative may verify the notice for him and that an attorney at law may act as such representative.
The verification is a certification of truth. The court rule provides that an attorney who signs a complaint certifies that “to the best of his knowledge, information and belief there is good ground to support it.” G-CR 1963, 114.2. Having in mind that substantial compliance with the notice requirement is sufficient, we are persuaded that the attorney’s certificate was the equivalent of verification.
We find that the complaint which was filed in this action, particularly when it is considered in conjunction with the attorney’s letter, sent the day after the accident, constitute substantial compliance with the statutory requirement for verified notice. See also, Brown v. City of Owosso (1901), 126 Mich 91, 94, 95. Therefore, we reverse the circuit court and remand to that court for trial.
Reversed and remanded.
All concurred.
“4. That the incident referred to occurred as follows:
On May 4, 1967 the minor plaintiff was a student at the Brady School. The class had gone outside for sports activity under the supervision of a teacher, one Miss Hunter. Upon returning to the school building after the class was over, the outside door remained open and should have closed by itself. Miss Hunter instructed and/or requested the minor plaintiff to shut the door, which he attempted to do but could not, inasmuch as the door closer mechanism on the top of the door was stuck. This had oeeurred several times at the Brady School, not only with this particular door but with many of' the other doors of the Brady Sehool which were similarly constructed. In the past when this occurred it was common practice for the students to jump to the top of the door and strike or hit the door closing mechanism to release it in order to free the door. The defendant, through its teaehers and/or employees and/or maintenance crew knew of this practice of the students or should have known of this practice. As he had seen others do, the minor plaintiff, then 11 years of age, did attempt to close the door in the manner aforesaid. The said employee, Miss Hunter, observed the minor plaintiff jump and attempt to catch on to the top of the door so that he would be able to strike the door closer to free the door which was stuck.
“The first attempt of the minor plaintiff to close the door was unsuccessful in that he was unable to reach the top of the door with the first jump. The minor plaintiff again jumped and this time caught on to the top of the door and was able to strike the door closer; however, when he did so and the door was released, the mechanism caught the seeond finger of the minor plaintiff’s right hand and cut it off, causing the loss of the entire finger. During the entire incident herein referred to the defendant, through its employees, teaehers and/or maintenance crew knew or should have known of the minor plaintiff’s conduct.
“5. That the negligence of the defendant consisted, inter alia, of the following:
“(a) Failure to maintain properly the door dosing mechanisms in a proper state of repair especially since they know or should have known that the manner in which the students, all of whom are young children, would close the doors.
“(b) For instructing the minor plaintiff to close the said door and for failing to stop him from engaging in a manner of conduct which the defendant knew or should have known was extremely dangerous.
“(e) For instructing and/or requiring a student to do that work which was actually a maintenance job and which was not properly the responsibility of a student.
“(d) For failure to supervise properly the activities of the minor plaintiff and to protect him from obvious dangers and for exposing him to obvious dangers.
“6. That as a proximate result of the aforementioned negligence of the defendant, the minor plaintiff sustained painful and permanent injuries and particularly the loss of the second finger on his right hand:
“(a) Pain and suffering, humiliation and embarrassment past and future.
“(b) Medical, surgical and hospital expenses, past and future.
“(e) Loss of earning capacity, past and future.
“7. That plaintiff, Zelma Jackson, as parent and guardian of the said minor plaintiff, James A. Jackson, sustained damages in the form of medical, hospital and surgical care, past and future.”
“May 5, 1967
“Detroit Board of Education
5057 Woodward Avenue
Detroit, Michigan
“Re: James Jackson, a minor — Accident at Brady School on May 4, 1967_
“Gentlemen:
“I have been retained by Mrs. Zelma Jackson, mother of the above named minor, relative to injuries sustained in the captioned accident.
“Kindly consider this letter notice that I claim an attorney’s lien on any settlement made in this matter. Kindly contact me and/or notify your insurance carrier of this matter.
“Please acknowledge this letter, in writing, within five days from this date.
“Very truly yours,
“Sheldon Wachler”
“LEGAL AFFAIRS
“Raymond Kurzon, Attorney
“May 17, 1967
“Mr. Sheldon Waehler
Attorney at Law
942 First National Building
Detroit, Michigan 48226
“Re: James Jackson, Accident of 5/4/67
“Dear Sir:
“Your letter of May 5 in the above matter has been received.
“The Board of Education does not carry liability insurance that would cover a matter sueh as this.
“Very truly yours,
“/s/ Raymond Kurzon”
“Sec. 6. Governmental agencies have the obligation to repair and maintain public buildings under their control when open for use by members of tlie publie. Governmental agencies are liable for bodily injury and property damage resulting from a dangerous or defective condition of a publie building if the governmental agency had actual or constructive knowledge of the defect and, for a reasonable time after acquiring knowledge, failed to remedy the condition or to take action reasonably necessary to protect the publie against the condition. Knowledge of the dangerous and defective condition of the public building and time to repair the same shall be conclusively presumed when such defect existed so as to be readily apparent to an ordinarily observant person for a period of 90 days or longer before the injury took place. As a condition to any recovery for injuries sustained by reason of any dangerous or defective public building, the injured person, within 60 days from the time the injury occurred, shall serve a verified notiee on the responsible governmental agency of the occurrence of the injury and the defect. The notice shall specify the exact location and nature of the defect, the injury sustained and the names of the witnesses known at the time by the claimant.” | [
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Per Curiam.
Following hearing on probation violation, defendant’s probation was revoked and he was sentenced to a prison term. He appealed as of right by claim of appeal. Although judgments entered after probation revocation are not appealable as of right (Calhoun v. Macomb County Circuit Judge [1968], 15 Mich App 416), we treat this appeal as on leave granted and consider the merits of the questions raised.
Defendant’s brief on appeal argues that the trial court did not comply with GCR 1963, 785.3(2), during the probation revocation proceedings. The people have filed motion to affirm. GCR 1963, 817.5(3).
It is manifest thát GCR 1963, 785.3(2), does not apply to a probation revocation hearing under MCLA § 771.4 (Stat Ann 1954 Rev § 28.1134), such a proceeding not being a prosecution.
The questions raised, on which decision of the cause depends, are so unsubstantial as to need no argument or formal submission. Accordingly, motion to affirm is granted.
The court before sentence and after the guilty plea shall inform the accused of the nature of the accusation and the consequence of his plea and examine defendant to determine that the plea is voluntarily, freely and understandingly made before accepting .it.
Hearings on probation revocation “shall be summary and informal and not subject to the rules of evidence of pleadings applicable in criminal trials. * * * The method of hearing and presentation shall be entirely within the discretion of the court which granted probation”. | [
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Lesinski, C. J.
This is an appeal by plaintiff from a denial of benefits under workmen’s compensation by'the-Workmen’s Compénsation Appeal Board.
Plaintiff claimed benefits based upon the death of her husband, aged 68, who was employed as an estimator of the cost of removal of heavy machinery for International Industrial Contracting Corporation.
On the date of his death, September 22, 1965, plaintiff’s husband traveled to the AC Spark Plug Company in Flint, Michigan, on behalf of his employer, for the purpose of estimating the cost of removal of certain, machinery. While at the factory, decedent inspected two jobs over a one-hour period, walking approximately 4,500 feet. Within four hours thereafter, decedent was admitted to St. Joseph’s Mercy Hospital where he expired. The attending physician diagnosed the cause of death as acute- coronary occlusion with acute left heart failure and myocardial infarction; the autopsy indicated that infarction occurred one or two days prior to death.
During a hearing on plaintiff’s claim for workmen’s compensation benefits before a referee, directly conflicting expert medical testimony was received concerning the causal connection between decedent’s on-the-job exertion and the resulting heart attack. Based upon the testimony, the referee denied recovery. On review, the Workmen’s Compensation Appeal Board split three ways .(3-2-2), the controlling opinion affirming the referee’s decision and finding that decedent died from an ordinary disease of life. The concurring opinion also affirmed the referee’s decision. Dissenting members of the appeal hoard found that the evidence supported a finding of causal connection of the death to decedent’s employment.
On appeal to this Court, plaintiff contends that the controlling and concurring opinions of the appeal hoard .erred both in their findings of fact and in their application of the law.
Regarding the appeal as to findings of fact, Const 1963, art 6, § 28 provides:
“Findings of fact in workmen’s compensation proceedings shall he conclusive in the absence of fraud unless otherwise provided by law.”
Moreover, CL 1948, § 413.12 (Stat Ann 1968 Rev § 17.186), provides:
“The findings of fact made by the compensation commission acting within its powers, shall, in the absence of fraud, be conclusive, but the Supreme Court shall have power to review questions of law involved in any final decision or determination of said compensation commission.”
See Zaremba v. Chrysler Corp. (1966), 377 Mich 226. Since no fraud is claimed by plaintiff, and competent evidence supports the findings of the controlling and concurring opinions, these findings must be affirmed by this Court.
Regarding the appeal as to correct application of the law, plaintiff challenges both the controlling and concurring opinions. In attacking the controlling opinion, plaintiff argues that Zaremba, supra, and Sheppard v. Michigan National Bank (1957), 348 Mich 577, were not properly interpreted and applied to the facts of the instant case.
The proper legal standard for determining whether an accidental injury is compensable was stated in Sheppard, supra, as follows:
“ ‘Notwithstanding anything we may have said in prior cases, we hold that an accidental injury arises out of the employment when the required exertion producing the injury is too great for the person undertaking the work, whatever the degree of exertion or the condition of his health, provided the exertion is either the sole or a contributing cause of the injury. In short, that an injury is accidental when either the cause or result is unexpected or accidental, although the work being done is usual or ordinary” (Quoting from Bryant Stave & Heading Company v. White (1956), 227 Ark 147 [296 SW2d 436].) (Emphasis supplied.)
The Court in Zaremba, supra, adopted and affirmed this rule although the Sheppard Case contained five separate opinions.
The language of the controlling opinion of the appeal hoard in the instant case in context provides:
“It is now well established in Michigan as a result of Zaremba v. Chrysler Corporation, supra, that exertion to cause disability or death need not be ‘strenuous’ in character.
“Applying the rule in Zaremba to the case at hand after a thorough analysis of the medical testimony in toto and with due consideration of the decedent’s condition of health and the degree of exertion required on the fatal day, 1 am of the opinion that the death of this decedent resulted not from too great an exertion on September 22, 1965, but rather, as the preponderance of the medical testimony would indicate, from an ordinary disease of life." (Emphasis supplied.)
Plaintiff would have this Court consider only the emphasized portion of the opinion in determining whether the Zaremba standard was properly applied. Based upon this extracted portion of the controlling opinion, plaintiff contends that the Appeal ■Board members failed to make a finding with respect to whether work-related exertion was causally connected to the injury. We disagree. The clear import of the language when placed in context shows a correct recitation of the Zaremba rule followed by application of the rule to factual findings. In this application of Zaremba, the members signing the controlling opinion clearly intended to indicate that death was caused by an ordinary disease of life, and not from work-related exertion.
Plaintiff also contends that the controlling and concurring opinions violated the clear-cut mandate of Sheppard by wrongfully relying on the state of decedent’s preexisting health. The language in the concurring opinion of Justice Smith in Sheppard referred to by plaintiff when placed--in context provides :
“It will be observed that in neither of these instances have we even mentioned the preexisting health of the injured workman. Given the injury in fact and the causal connection (neither of which is questioned in Eula Sheppard’s case) the state of the workman’s preexisting health is immaterial.”
Sheppard therefore stands for the proposition that preexisting health is immaterial where prior determination discloses that an injury in fact exists and that the injury is causally connected with the employment. In the instant case, since causal connection of the death to employment is in question, evidence of the preexisting health of the decedent is material to the cause of death and properly could be considered in ascertaining whether a causal relation existed under the Zaremba test.
Plaintiff also contends that the concurring opinion of two appeal board members erred in application of part 7 of the Workmen’s Compensation Act, CL 1948, § 417.1, et seq., as amended (Stat Ann 1968 Rev § 17.220 et seq.), by denying benefits based in part upon a conclusion that “the nature of the assigned duties subjected deceased to nothing more than conditions found in employment in general.”
The workmen’s compensation act, in defining “personal injury” for purposes of part 7, provides in part:
“ ‘Personal injury’ shall include a disease or disability which is due to causes and conditions which are characteristic of and peculiar to the business of the employer and which arises out of and in the course of the employment. Ordinary diseases of life to which the public is generally exposed outside of the employment shall not be compensable.” CL 1948, § 417.1, as amended by PA 1965, No 81 (Stat Ann 1968 Rev § 17.220).
The statutory definition of part 7 broadens the meaning of the words “personal injury” found in part 2 of the workmen’s compensation act (CLS 1961, § 412.1 [Stat Ann 1968 Rev § 17.151]), and must be read in connection with the balance of the act as otherwise many of the act’s provisions become meaningless. Hagopian v. City of Highland Park (1946), 313 Mich 608; Rueter v. Rinshed Mason Co. (1942), 303 Mich 550. However, to the broadened definition of personal injury, part 7 provides an additional limitation denying recovery where the injury is not “due to causes and conditions characteristic of and peculiar to the business of the employer”. The concurring members of the appeal board clearly sought to apply this limitation when they denied plaintiff recovery because “the nature of the assigned duties subjected deceased to nothing more than conditions found in employment in general.” Moreover, the concurring members enumerated an additional ground for denying plaintiff recovery in finding that the death of deceased did not arise out of his employment with defendant. ¥e find no reversible error in the decision of the concurring members denying recovery under part .7.
Affirmed. Costs to defendant.
All concurred. | [
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J. H. Gillis, P. J.
Plaintiffs filed suit on September 15, 1966, to recover for injuries sustained by Irma Gerren in an automobile accident which occurred on September 26, 1964. The jury returned verdicts in favor of both plaintiffs. A judgment was entered on May 24, 1968. Defendant paid the judgment together with interest from the date judgment was entered. The question for our determination is whether plaintiff is entitled to interest for the period from the date the complaint was filed until the date the judgment was entered.
On July 31, 1968, plaintiffs issued a writ of garnishment against the Inter-Oity Bank of Niles for the amount of the disputed interest. Defendant filed a motion to dismiss the garnishment which was granted on September 6, 1968.
During the trial conference in camera between court and counsel to discuss jury instructions, plaintiffs’ counsel was asked by the trial court, “Are you familiar with the new case about interest? Under a new Supreme Court decision, the plaintiffs are entitled, if they recover, interest from the time the complaint is filed.” He replied, “We are waiving that.” The following excerpts are taken from the transcript of the hearing on defendant’s motion to dismiss the writ of garnishment:
“The Court: * * * Interest was waived; that is in the record. I think the key is the judgment order. Nothing was said there, and it was waived before; and I think this is an after-thought. * * *
“(To counsel for plaintiffs): At your request I would have given an instruction that if they find for the plaintiff in this case for the injuries up to the date from the time of filing of the complaint you are entitled to interest.
“Mr. Sloan (counsel for plaintiffs): I submit that is not a proper instruction, that this interest is taxed by the Court and is not the subject of .any instruction.
“The Court: Shouldn’t this have been thrashed out when the judgment was entered?
* * *
“Mr. Sloan: My point is it doesn’t have to be incorporated in any judgment of this Court.”
These contentions by plaintiffs’ counsel at the hearing are reiterated and now form the basis of this appeal.
Defendant focuses on the fact that the jury was instructed to discount the present worth of future damages from the date of their deliberations. Defendant contends that if the judgment is to bear interest from the date of the complaint, the jury should discount future damages to the date of the complaint, not the date of its deliberations. As stated in its brief:
“Clearly to discount correctly the future damages, the jury would have to know the date from which interest would be added to the judgment. * * * If Mr. Sloan had not waived interest ‘from the time the complaint is (was) filed,’ to avoid awarding double interest for the period from the date of the complaint to the date of the judgment the court would have had to instruct the jury to discount to present worth back to the date of the complaint. * * * Therefore, the net effect of the waiver of interest by plaintiffs’ counsel with the resulting instructions by the court were two-fold, viz.: (1) the plaintiffs received an ‘interest element’ automatically in the computations of present worth of future damages and (2) the plaintiffs avoided complex instructions which may have confused the jury and lowered the gross verdict.”
Plaintiffs based their claim solely on CLS 1961, § 600.6013 (Stat Ann 1962 Rev § 27A.6013), as amended by PA 1965, No 240, and PA 1966, No 276, which reads in part as follows:
“Interest shall be allowed on any money judgment recovered in a civil action, such interest to be calculated from the date of filing the complaint at the rate of 5% per year unless the judgment is rendered on a written instrument having a higher rate of interest in which case interest shall be computed at the rate specified in the instrument if such rate was legal at the time the instrument was executed. In no case shall the rate exceed 7% per year after the date judgment is entered.”
Defendant confuses the interest figure used to discount the present worth of future damages and the interest on a judgment provided by the statute.
It is true, as defendant contends, that an award for future damages computed as of the time of the jury’s deliberations is higher than an award computed as of the time of the filing of the complaint. Defendant errs, however, in concluding that the higher award as of a later time incorporates the “interest element” which plaintiffs are seeking. The higher award means only that the estimated dam ages of some future date are discounted over a shorter period of time.
That a judgment, as here, may incorporate a discounted present worth of future damages has no bearing on the operation of the statute. The statute speaks only of judgments and treats the judgment debt, however determined, as having been due and owing at the time the complaint was filed.
As stated in Swift v. Dodson (1967), 6 Mich App 480, “We are not concerned here with interest included as an element of damages as approved by a majority of the Court in Currie v. Fiting (1965), 375 Mich 440 [wrongful death]. We are here concerned only with interest on a judgment. This is purely statutory.”
Reversed and remanded for the awarding of interest to plaintiffs consistent with this opiniou Costs to appellant.
All concurred. | [
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McGregor, J.
Plaintiff suffered burns in 1963 while tending an asphalt machine assembled by defendant White Manufacturing Company and sold by ' defendant Construction Equipment Company. As plaintiff unscrewed a gas cap on a motor to check the fluid level, gasoline spewed out and ignited. The motor was one of five used to provide power for the portable asphalt plant. A clogged vent probably caused the accident, but the specific cause was not determined. Plaintiff, joined by his wife, filed suit to recover for his injuries, alleging breach of an implied warranty by both defendants and negligence by defendant White. The jury found in favor of • defendants on both conditions — breach of implied warranty and negligence — and plaintiffs appeal, . ■
Plaintiffs raise five issues, but only two are necessary for our decision: namely, whether defendants breached an implied warranty, and whether defendant White Avas causally negligent.
The allegation of a breach of an implied warranty is inapposite as to both defendants. The asphalt plant was purchased “as is.” By the use of that term, the buyer and plaintiff effectively waived defects in the machine and precluded théir later reliance on an implied warranty. When the cause of action arose in 1963, the Uniform Sales Act was effective, including:
“Where any right, duty, or liability would arise under a contract to sell or sale by implication of law, it may be negatived or varied by expressed agreement, or by the course of dealing between the parties, or by custom, if the custom be such as to bind both parties to the contract or the sale.” CL 1948, § 440.71.
Plaintiff husband concedes that he testified the asphalt equipment was purchased “as is, where is.” That language effectively excluded an implied warranty of fitness on behalf of both defendants. See Richardson v. Messina (1960), 361 Mich 364; 24 ALR3d 465.
Plaintiffs’ arguments and proofs do not convince us that the jury was incorrect in finding no negligence on the part of defendant White. As a fact determination, the jury’s decision stands inviolate if supported by the evidence. Hendershot v. Kelly (1968), 11 Mich App 173. An appellate court substitutes its judgment for that of the trier of facts only Avhen necessary to prevent an unsupported verdict from wreaking manifest injustice. That is not the case here. The evidence amply supported the verdict.
Plaintiff vigorously and perhaps wisely urges this intermediate appellate Court to promulgate a new rule for needed improvement of Michigan law, i.e., comparative negligence, as being superior to our present contributory negligence rule on the merits. Such a potent change involves a type of social progress that should be provided by an alert, progressive State legislature. Failing there to secure the relief of a comprehensive statute, plaintiff may have a duty of presentation to our Supreme Court for judicial pronouncement on this question, where the necessary accompanying relevant procedural questions may be answered, and judicial implementation provided. Within the generally accepted duties of this Court, such a significant judicial breakthrough would be woefully deficient without the accompanying complexities carefully charted.
The remaining issues, being unnecessary to our decision, do not require our discussion. In re State Highway Commissioner (1963), 372 Mich 104.
Affirmed. Costs to defendants.
Bronson, J., concurred.
Holbrook, P. J., concurred in the result.
See MCLA § 440.2316 (Stat Ann 1964 Rev § 19.2316) for the present codification in the Uniform Commercial Code. | [
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Levin, J.
The plaintiff Department of Street Railways (DSR) has, over the years, paid both local taxes on its property situated outside Detroit’s city limits and county taxes in accordance with the 1909 Amendment to the home rule act, which authorized a home rule city to purchase a transportation utility, and which provided:
“When a transportation utility is so acquired, state and county taxes shall be paid thereon as if privately owned, also local taxes on any portion of such property lying outside of the city limits.” CL 1948, § 117.4f (Stat Ann 1949 Rev § 5.2079).
The State of Michigan has not levied an ad valorem property tax since 1934.
In 1965 the legislature eliminated the words “and county” from this statutory provision. Accordingly, after the July 2, 1965, effective date of this amendment, the DSR no longer was obligated to pay county taxes and, no State tax being levied, was obligated to pay only taxes levied by local units of government on the DSR’s property located outside of Detroit’s city limits.
The DSR claims it is entitled to a refund from the county of Wayne of
(1) 1964 Wayne county taxes, paid in January and February, 1965 (before the July 2, 1965, effective date of the amending act), applicable to so much of the county’s fiscal year as remained after July 2, 1965 ; and
(2) 1965 Wayne county taxes, paid under protest in January and February, 1966.
The county contends that the DSR is not entitled to any refund of 1964 taxes and that the DSR was required as well to pay the 1965 taxes because they were assessed as of December 31,1964, a date before the effective date of the amendment, even though 1965 taxes did not become payable until a date, December 1,1965, after the effective date of the amendment. The county contends that the amendment creates an exemption from assessment and cannot affect an assessment made before the effective date. Thus, contends the county, since the amendment affects only assessments made after the effective date, the first assessment affected by the amendment was tlie assessment made as of December 31, 1965, and, accordingly, the first taxes from which the DSR became exempt were 1966 county taxes.
The county argues that the following statutory provision supports its contention that a change in the taxable status of property after assessment but before the assessment becomes payable does not affect liability to make payment:
“The roll shall be reviewed according to the facts existing on the tax day. The board [of review] shall not add to the roll any property not subject to taxation on the tax day nor shall it remove from the roll any property subject to taxation on said day regardless of any change in the taxable status of such property since such day.” MCLA § 211.29 (Stat Ann 1960 Rev § 7.29).
In our opinion the county reads too much into the provision just quoted. This provision was added by PA 1941, No 234. Before this 1941 amendment was enacted, the Michigan Supreme Court had ruled that there was properly stricken from the assessment roll property held at the time of assessment by one who was not tax exempt and thereafter, before the final session of the board of review authorized to review that assessment, transferred to an organization which enjoyed tax exemption. Township of Grosse Ile v. Saunders (1933), 262 Mich 451. The 1941 amendment was designed to change the law applicable in that kind of situation. Henceforth, a change after the assessment date in the status of the owner [e.g., from exempt to nonexempt or vice versa) or in the nature of the property {e.g., its enlargement, improvement or destruction) would not affect its tax-ability or ad valorem value.
The 1941 amendment need not be read, however, as declaring a legislative purpose applicable to all future legislation changing the taxability of persons or property. In our opinion the 1941 legislation does not concern changes in status brought about by new legislation. The 1941 legislature did not mean to tie the hands of future legislatures, nor could it. In determining the legislature’s intent in enacting a particular law, we are not encumbered by an absolute rule of construction such as that argued for by the county.
Our task is to determine what the 1965 legislature intended. Did the 1965 legislature intend that the county repay the DSR for county taxes paid in 1965 before the 1965 amendment was enacted? Did it intend that the DSR would, despite the passage of the amendment, be obliged to pay taxes which did not become payable until after the effective date of the amendment and that the benefit of the exemption would be deferred until the time for payment of 1966 taxes?
We have concluded that the 1965 legislature did not intend to require counties to repay municipal transportation utilities any portion of the taxes paid before the amendment became effective, but it did intend to relieve them from liability to pay taxes otherwise thereafter payable even though the assessment date for the taxes thereafter payable preceded the effective date of the amendment.
We arrive at this conclusion not only because that construction of the 1965 amendment appears to be the more sensible construction and the one most likely to be in accord with the legislature’s purpose, but also because, read literally, the act as amended provides that the only taxes thereafter “payable” are State taxes (no longer levied) and local taxes. Thus, after the amendment took effect, county taxes no longer were required to be “paid.”
As amended effective July 2, 1965, the statutory provision read: “state taxes shall be paid thereon as if privately owned, also local taxes on any portion of such property lying outside of the city limits.” (Emphasis supplied.) Accordingly, effective July 2, 1965, the DSR, as to property located within Detroit’s city limits, was not required to “pay” anything. Thereafter, all that “shall be paid” are “local taxes on any portion of such property lying outside of the city limits.” Since the taxes for the year 1965 (county fiscal year December 1, 1965 — November 30, 1966) did not become payable until December 1,1965, and, thus, had not been paid on July 2, 1965, there was no further obligation to pay them. 1964 taxes (county fiscal year December 1, 1964 — November 30, 1965) had, however, already been paid when the amendment was adopted. In short, the exemption from taxation effected by the 1965 amendment is an exemption from future payment as well as an exemption from future assessment.
The intervenor’s contention that the term “local taxes” includes county taxes is rejected. Clearly the legislature, at least for this purpose, distinguished between State, county and local taxes. While the word “local” may for some purposes include a county as well as a city, township, village, etc., in this case it is apparent that the word “county” and the word “local” have different meanings. When the legislature eliminated the word “county,” it meant to exempt municipal transportation utilities from the payment of county taxes as to property located both within and without the limits of the parent city.
The DSB. alternatively contends that this statutory provision, imposing liability to pay taxes on public transportation utilities acquired by home rule cities, violates Michigan’s one-object-expressed-in-the-title constitutional provision (Const 1963, art 4, § 24) and, for that reason, it is entitled to recover the taxes paid for 1964 as well as 1965.
It might have been better draftsmanship to have placed the provision concerning the taxability of municipal transportation utilities in the general property tax law (where one might expect to find it) rather than in the home rule act. There is, however, no constitutional requirement that the legislature do a tidy job in legislating. It is perfectly free to enact bits and pieces of legislation in separate acts or to tack them on to existing statutes even though some persons might think that the bits and pieces belong in a particular general statute covering the matter. The constitutional requirement is satisfied if the hits and pieces so enacted are embraced in the object expressed in the title of the amendatory act and the act being amended.
The home rule act and other acts providing for the incorporation of cities and other units of local government have been interpreted as having as their object anything germane to their functioning.
“Most of the great changes in our city organizations have come in under laws which did no more than to indicate by their titles a purpose to incorporate, or reincorporate, or revise the corporate charter of the municipality dealt with. Anything which is meant to form a permanent element in municipal arrangements is pertinent to the incorporation.” Holden v. Board of Supervisors of Osceola County (1889), 77 Mich 202, 204.
So interpreted, the acquisition of a public transportation utility and anything related to its acquisition and ownership properly could be included in the home rule act. A provision regarding the tax-ability of a transportation utility’s property is related to the ownership of such property. Therefore, such a provision does not go beyond the entitlement and does not violate the constitutional requirement.
The trial judge did not allow interest. In our opinion the plaintiff is entitled to interest from the time of payment and, accordingly, interest on the amount to be refunded should be computed from that date.
On remand, the judgment shall be modified to require a refund to the DSR of all ad valorem taxes paid in January and February, 1966, by the DSR to the county of Wayne plus interest thereon at the rate of 5% per annum from the time of payment. Nothing shall be refunded in regard to taxes paid by the DSR. to the county of Wayne in January or February,-1965.
No costs, a public question.
T. Gr. Kavanagh, P. J., concurred.
PA 1909, No 279 (MOLA § 117.1 et seq. [Stat Ann 1969 Cum Supp § 5.2071 et seq.]).
PA 1965, No 116 (MCLA § 117.4Í [Stat Ann 1969 Cum Supp § 5.2079]).
The county terms as “1964 taxes” the taxes assessed as of December 31, 1963, for the fiscal year of the county beginning December 1, 1964, and ending November 30, 1965, which did not become payable until December 1, 1964, and which were payable without penalty in early 1965, even though many (perhaps most) taxpayers paid the tax in 1965 and 11/12 of the eounty fiscal year is in 1965.
None of the eases cited by the parties is dispositive. In Mackinac Transportation Co. v. Township of Mackinaw (1913), 175 Mich 418, the Court did not decide that legislation providing a new exemption could not affect past assessments, but rather that in the factual context in which the new law there before the Court would operate the legislature did not intend to permit exemption from the payment of general property taxes for the tax year in which the new law was passed; rather that the first tax year for which exemption could be obtained was the tax year after passage of the new law.
The law there before the Court permitted owners of steam vessels to pay a specific tax in lieu of the general property tax. The cut-off date for payment of the specific tax was December 1. The Court reasoned that the legislature meant to establish as the cut-off day the December 1 preceding the tax year for which the general property tax exemption was sought rather than the December 1 of the tax year itself because otherwise it would not be known until the lien date (which was also December 1) whether a particular steamship would be subject to general property tax. The “troublesome predicament” (p 422) visualized by the Court is not presented in tins case. The DSR was not given a choice of taxes, it had no option, it did not have to take affirmative action to avail itself of the exemption from taxation effected by the amendment to the Home Hule Act.
PA 1965, No 116 (MCLA § 117.4f [Stat Ann 1969 Cum Supp § 5.2079]).
A similar contention involving the words “State taxes” was similarly analyzed and resolved in Hertzog v. City of Detroit (1966), 378 Mich 1. In that ease the Supreme Court declared that the DSR was not required to pay the Detroit board of education ad valorem taxes on its real and personal property situated in the city of Detroit, sinee, for the purposes of that aet, the Detroit board of education was not a State ageney levying a “State tax.”
“No law shall embrace more than one object, which shall be expressed in its title.” Const .1963, art 4, § 24.
The complete title of the home rule aet is as follows: “Ail aet to provide for the incorporation of cities and for revising and amending their charters.” PA 1909, No 279, as amended by PA 1911, No 203 and PA 1913, No 5.
In all the following eases the subject matter dealt with in the aet under consideration was held to be within the objeet expressed in the title: Hall v. Calhoun County Board of Supervisors (1961), 373 Mich 612 (annexation of territory of one home rule eity by another); City of Detroit v. Wayne Circuit Judge (1897), 112 Mich 317 (requirement that notice be given to eity within 3 months of alleged negligent injury; aet was entitled: “an act to provide a charter for the city of Detroit”) ; Village of Kingsford v. Cudlip (1932), 258 Mich 144, 151, and Bray v. Stewart (1927), 239 Mich 310, 317 (annexation of territory of a township by a village; the title of the act under consideration in the last 2 cited eases parallels the home rule aet, viz.-. “An aet to provide for the incorporation of villages and for revising and amending their charters.” [PA 1913, No 95]); People v. Hurst (1879), 11 Mich 328, 332, 333 (conceding that “there is much awkwardness in including within a eity charter provisions affeeting judicial proceedings in courts having general jurisdiction outside and beyond the eity,” the Michigan Supreme Court held valid provisions in Detroit’s charter establishing and regarding the recorder’s court; the act was entitled, “An act to revise the charter of the city of Detroit”); People v. Pond (1887), 67 Mich 98 (provision for municipal court in act entitled, “An act to revise an aet to incorporate the eity of Bay City”). See, also, Loomis v. Rogers (1917), 197 Mich 265, 271.
This language was quoted with approval in Common Council of Detroit v. Schmid (1901), 128 Mich 379, 386 (amendment of aet entitled, “An aet to provide a charter for the city of Detroit” to require biennial rather than annual elections is valid).
Cf. People, ex rel. Connecticut Mutual Life Insurance Company v. State Treasurer (1875), 31 Mich 6, 17, 18, where the Court held that a provision for the taxation of life insurance companies could validly be included in an act the title of which stated that its object was “to establish an insurance bureau.” The Court observed:
“It was certainly admissible to include any just and pertinent regulations respecting the course of action to be observed by the bureau as a state agency, towards those engaged in the business of insurance; and it was equally admissible to include any just and appropriate provisions for prescribing the duty due to the state in the matter of taxation from insurance companies.”
Under our Supreme Court’s recent ruling in Ballog v. Knight Newspapers, Inc. (1969), 381 Mich 527, the DSR would be entitled to receive payment of interest at least from the time its complaint was filed. Under other precedent the DSR would be entitled to interest from the time of payment of the taxes under protest. Helmsley v. City of Detroit (1963), 320 F2d 476, 481. Since this suit was filed within 30 days of the time of payment in 1966, it will make relatively little difference which of the 2 dates is ehosen. | [
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Weaver, J.
Defendant appeals as of right from an order of summary disposition granted in favor of plaintiff pursuant to MCR 2.116(C)(9) and (10).
i
Plaintiff was involved in an automobile accident on April 13, 1982. Upon the recommendation of Dr. Roberto Williams, the internist who examined plaintiff on the day of the accident, plaintiff was hospitalized from April 14 through April 30, 1982, from May 4 through May 21, 1982, and again from June 1 through June 18, 1982. Plaintiff also received outpatient physical therapy from May 24 through May 28, 1982. Plaintiff’s medical expenses amounted to $25,059.29.
Defendant, with whom plaintiff had contracted for full comprehensive medical expenses under a no-fault policy of insurance, received itemized billings for plaintiff’s medical expenses by July 7, 1982, but refused to pay them. Defendant’s refusal was based on a second examination, on July 10, 1982, performed by an orthopedic surgeon of defendant’s choosing, Dr. Mitchell C. Poliak. From this second examination, plus Dr. Poliak’s evaluation of Dr. Williams’ report together with plaintiffs medical records submitted by November 18, 1982, Dr. Poliak opined that hospitalization and much of the testing performed on plaintiff had been unnecessary.
Plaintiff sued defendant on February 7, 1983, for failure to pay his medical expenses. The trial court granted summary disposition in favor of plaintiff pursuant to MCR 2.116(C)(9) and (10) as to defendant’s claim that it should not have to pay the medical expenses because the treatment was unnecessary and the expenses therefore unreasonable, ruling that defendant’s claim was not a valid defense to a contract action and that only damages were at issue. Defendant conditionally waived a jury trial. The trial court heard evidence on the issue of damages and awarded plaintiff $25,059.29 in medical expenses plus twelve percent judgment interest, but declined to award plaintiff penalty interest or attorney fees. Defendant appeals as of right. Plaintiff cross-appeals.
ii
On appeal, defendant attacks the trial court’s finding that defendant’s failure to state a valid defense warranted a grant of summary disposition pursuant to MCR 2.116(C)(9). Defendant relies on MCL 500.3107; MSA 24.13107 to argue, based on Dr. Poliak’s second evaluation, that defendant had stated a valid defense in its argument that services rendered to plaintiff were not "reasonably necessary” and hence could not have resulted in "reasonable charges” triggering its liability for pay ment of benefits under the no-fault act, MCL 500.3105; MSA 24.13105.
We disagree with this contention. The reasonableness of medical expenses cannot be used as a defense to liability in a no-fault accident case. Strong policy considerations support this position, since an accident victim would be held to an impossible standard of medical knowledge if required to determine that his or her doctor’s orders were "reasonably necessary” before accepting treatment. Therefore the defense of reasonableness as to plaintiffs medical expenses was legally insufficient — so untenable that no factual development would have prevented plaintiffs right to recovery —and the trial court properly granted summary disposition pursuant to MCR 2.116(C)(9). Karaskiewicz v Blue Cross & Blue Shield of Michigan, 126 Mich App 103, 110; 336 NW2d 757 (1983), lv den 418 Mich 882 (1983).
Defendant also argues that summary disposition should not have been granted pursuant to MCR 2.116(0(10) because the dispute over the reasonableness of plaintiffs medical expenses constituted á genuine issue of material fact.
The disagreement over the reasonableness of the medical expenses did not constitute a genuine issue of material fact. Defendant never, disputed that plaintiff was treated by Dr. Williams for injuries arising from the accident of April 13, 1982, or that plaintiff was billed $25,059.29 for his medical care, and defendant never argued that the charges for these services were excessive. As plaintiffs no-fault insurer, defendant was liable for payment of benefits for plaintiffs injuries, because such injuries arose "out of the ownership, operation, maintenance or use of a motor vehicle,” MCL 500.3105(1); MSA 24.13105(1). Defendant was required to pay such benefits within thirty days of receiving "reasonable proof’ of injury and amount of loss, failure to pay giving rise to a rebuttable presumption of unreasonable refusal or undue delay. MCL 500.3142(2); MSA 24.13142(2); Bradley v DAIIE, 130 Mich App 34, 46; 343 NW2d 506 (1983).
As there was no issue of liability, there were no genuine issues of material fact except as to the amount of damages, and the question of reasonableness went not to the issue of liability but to the issue of damages. However, defendant waived the right to a jury trial on the issue of damages, thereby precluding a jury fact finding as to the reasonableness of plaintiffs expenses. See Nelson v DAIIE, 137 Mich 226, 231; 359 NW2d 536 (1984). When considering the issue of damages, the court was permitted to rule as a matter of law that plaintiffs medical expenses in his no-fault case were necessary and allowable. See Manley v DAIIE, 425 Mich 140, 157; 388 NW2d 216 (1986). Consequently defendant’s claim of unreasonable medical expenses was not an issue of material fact which defendant could have supported at trial, and the court properly granted summary disposition pursuant to MCR 2.116(0(10). Tidwell v Dasher, 152 Mich App 379, 383; 393 NW2d 644 (1986).
m
Defendant also argues that the trial court abused its discretion by excluding evidence that plaintiffs medical bills had already been paid by Blue Cross/Blue Shield. We disagree.
The evidence was barred by the collateral source rule. Blacha v Gagnon, 47 Mich App 168, 171; 209 NW2d 292 (1973). Cf. Richards v Pierce, 162 Mich App 308, 318-319; 412 NW2d 725 (1987). Further, plaintiffs contract with defendant did not contain a coordinated benefits clause. Plaintiff undoubtedly paid a higher premium for full benefits and defendant was accordingly required to make full payment for those injuries covered by the policy, regardless of any payment received from additional policies. See Federal Kemper Ins Co, Inc v Health Ins Admin, Inc, 424 Mich 537, 539; 383 NW2d 590 (1986). Any relevancy to plaintiff’s claim of emotional distress is negated by the fact that the trial court did not award damages for emotional distress. The trial court did not abuse its discretion by excluding the evidence. Houston v Grand Trunk W R Co, 159 Mich App 602, 606; 407 NW2d 52 (1987).
IV
On cross-appeal, plaintiff argues that he is entitled to receipt of twelve percent penalty interest pursuant to MCL 500.3142(2); MSA 24.13142(2). We agree.
Although the trial court found that plaintiff had a valid contract with defendant, that plaintiff’s medical expenses were reasonable, and that defendant had refused to pay those expenses, the court refused to award penalty interest. Such refusal was error, since the only basis for denying penalty interest would have been plaintiff’s failure to submit reasonable proof of injury and the amount of loss sustained. Bradley, supra at 50; Cook v DAIIE, 114 Mich App 53, 54-55; 318 NW2d 476 (1982). Here, the trial court found that defendant had submitted reasonable proof of injury and the amount of loss. Because defendant received plaintiff’s itemized billings, medical records, and the medical report of Dr. Williams by November 18, 1982, defendant was required to pay plaintiff’s benefits by December 18, 1982. Defendant’s failure to pay justified the imposition of penalty interest under the statute.
v
Plaintiff also argues on cross-appeal that the trial court erred by denying his request for attorney fees. We disagree. A bona fide factual uncertainty precludes the characterization of defendant’s conduct as unreasonable refusal or unreasonable delay warranting the imposition of attorney fees under MCL 500.3148(1); MSA 24.13148(1); Liddell v DAIIE, 102 Mich App 636, 650; 302 NW2d 260 (1981), lv den 411 Mich 1079 (1981).
Affirmed as to defendant’s issues on appeal. Affirmed as to plaintiff’s issue of attorney fees on cross-appeal. Reversed as to plaintiff’s issue of penalty interest, and remanded to the trial court for computation of such interest in conformity with this opinion.
Affirmed in part, reversed in part, and remanded. | [
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H. Hood, J.
Defendant Times Herald Company (hereinafter defendant) appeals as of right from a jury verdict of $130,000 in favor of plaintiffs in plaintiffs’ libel action against defendant. Plaintiffs appeal separately from the denial of their motion to amend the judgment to hold defendant liable for an additional $70,000 in exemplary damages.
Plaintiffs, Fred and Jan Hodgins, husband and wife, are joint owners of Hodgins Kennels in St. Clair County. Plaintiffs incorporated Hodgins Kennels in 1982, with each plaintiff owning fifty percent of the stock; prior to 1982 plaintiffs operated the kennel as a partnership. Jan Hodgins was active in the kennel business for twenty-two years and was a partner in the business in 1981.
Plaintiffs are state and federally licensed animal dealers who supply animals for medical research. Plaintiffs obtain unwanted animals from county and city dog pounds and resell then to government-registered facilities for use in research. Plaintiffs are regularly inspected by the Michigan and federal departments of agriculture. Plaintiffs’ kennel business is regulated by both federal and Michigan statutes.
Plaintiffs contracted with St. Clair County to dispose of unwanted animals from the St. Clair County dog pound between 1971 and 1979. This contract was interrupted in 1979 when the county demolished its old dog pound to build a new pound on the same site. The county then contracted with the St. Clair Humane Society to temporarily house stray animals while the new pound was being built. The Humane Society opposed animal research and does not allow animals to be released for use in research. After the new pound was built, the county resumed its original contract with plaintiffs and terminated the contract with the Humane Society. However, the Humane Society made a concerted effort to regain the county contract and made an issue over the use of the pound animals in research. There was continuing controversy in St. Clair County over the use of the new county dog pound instead of the Humane Society shelter.
Defendant’s publisher and president, Phil Abrell, was a supporter of the St. Clair Humane Society and favored having the Humane Society run the county animal shelter. The Port Huron Times Herald ran an extensive fund-raising campaign for the Humane Society, which included frequent newspaper articles covering the Humane Society and its fund-raising efforts. Defendant’s paper also featured editorials in favor of a county contract with the Humane Society.
On August 30, 1981, defendant published a letter from George Burgess, vice president of the Humane Society, on the editorial page of the Port Huron Times Herald. Burgess’ letter was a reply to a previous letter to the editor by Dr. Raymond Kahn which had been published by defendant on August 18, 1981. Dr. Kahn’s letter commended plaintiff Fred Hodgins for his conscientiousness in dealing with pound animals. Burgess’ letter implied that plaintiffs sold animals to be used to train dogs for dog fights, stating:
Dog Pound animals are sold not only to hospi tais (which are not necessarily humane) but to anyone with Mr. Hodgins’ asking price.
And:
Some of the more frail dogs and some of the kittens and cats end up as "training animals” to be killed by dogs being trained for the many dog fights staged weekly in the state.
Burgess’ letter also referred to several types of inhumane experiments to which research animals were supposedly subject.
On September 9, 1981, the St. Clair County Board of Commissioners decided to terminate plaintiffs’ contract with the county and to reinstate the Humane Society’s animal shelter contract. St. Clair County terminated the Humane Society’s contract and resumed housing stray animals in the county dog pound in 1984, but has refused to resume the previous county contract with plaintiffs. Plaintiffs lost approximately 1,200 dogs per year because of the loss of the St. Clair County contract and have been unable to supply their full demand for research animals due to the loss of the contract. Upon request by plaintiffs’ attorney, defendant published a retraction letter written by George Burgess in November, 1981.
Plaintiffs filed suit against defendant and George Burgess for libel in two separate actions which were consolidated and transferred to St. Clair Circuit Court on September 4, 1983. The court granted plaintiffs a default judgment against Burgess on January 6,1986._
Defendant moved for summary judgment on the basis that the letter was not actionable because it was an expression of opinion and because the letter was protected by the "public interest” privilege, which requires that the plaintiif show actual malice to impose liability on the defendant. The trial court denied the motion, finding that the Burgess letter was not protected opinion as a matter of law, whether readers interpreted the letter’s language in a defamatory sense was a fact question for the jury, and whether defendant acted with actual malice was also a fact question for the jury.
The jury returned a verdict in favor of plaintiffs. The jury answered specific questions on a special verdict form. Specifically, the jury found that the statements were of and concerning both plaintiffs, the Burgess letter was false in a material respect which tended to harm plaintiffs’ reputation, and defendant published the letter knowing that it was false or with reckless disregard as to falsity, i.e., with actual malice. The jury found that plaintiffs sustained actual damages of $130,000 and exemplary damages of $70,000. The jury found that defendant did not act with bad faith or ill will, but that George Burgess did. Thus, the jury found that Burgess was liable to plaintiffs for $70,000 in exemplary damages. The court entered a judgment holding defendant jointly and severally liable with George Burgess to plaintiffs for $130,000 in actual damages.
Defendant moved for judgment notwithstanding the verdict or for a new trial, which the court denied.
On January 8, 1987, plaintiffs moved to correct the court’s judgment pursuant to MCL 2.612(C)(1)(f) to add exemplary damages in favor of plaintiffs against defendant Times Herald Com pany. Plaintiffs argued that the standard for exemplary damages was actual malice instead of bad faith or ill will, so plaintiffs were entitled to exemplary damages because defendant was found to have acted with actual malice. The court denied plaintiffs’ motion to correct the judgment.
Defendant raises a number of issues, which we will discuss in order.
I. DID THE TRIAL COURT ERR IN DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT ON THE GROUND THAT THE BURGESS LETTER WAS CONSTITUTIONALLY PROTECTED EXPRESSION OF OPINION?
A motion brought under MCR 2.116(0(10) tests whether there is factual support for plaintiff’s claim. A court, in deciding such a motion, must consider the pleadings, affidavits, depositions, admissions, and documentary evidence available to it and give the nonmoving party the benefit of every reasonable doubt. The motion must not be granted unless the court is satisfied that it would be impossible to support the claim at trial because of some deficiency which cannot be overcome. Dzierwa v Michigan Oil Co, 152 Mich App 281, 284; 393 NW2d 610 (1986).
The United States Supreme Court has held that expressions of opinion are protected from defamation actions. Gertz v Robert Welch, Inc, 418 US 323, 339; 94 S Ct 2997; 41 L Ed 2d 789 (1974). However, there is no constitutional protection given to false statements of fact, so false statements of fact are not protected from libel suits. Gertz, 418 US 340.
Direct accusations or inferences of criminal conduct or wrongdoing are not protected as opinion. Church of Scientology of California v Flynn, 744 F2d 694, 698 (CA 9, 1984); Cianci v New Times Publishing Co, 639 F2d 54, 65 (CA 2, 1980); Buck ley v Littell, 539 F2d 882, 896 (CA 2, 1976), cert den 429 US 1062 (1977). There is no First Amendment protection for "a charge which could reasonably be understood as imputing specific criminal conduct or other wrongful acts.” Cianci, 639 F2d 64.
Defendant contends that the wording of the Burgess letter was merely strongly worded opinion and did not accuse plaintiffs of any crimes. Exaggerated language used to express opinion, such as "blackmailer,” "traitor” or "crook,” does not become actionable merely because it could be taken out of context as accusing someone of a crime. Greenbelt Cooperative Publishing Ass’n v Bresler, 398 US 6, 14; 90 S Ct 1537; 26 L Ed 2d 6 (1970).
However, here defendant published a letter which implied that plaintiffs sell dogs to persons who use them for dog fights, a state crime under MCL 750.49; MSA 28.244. It is also a federal crime to sell or transport animals for use in dog fights. 7 USC 2156(b). Sale of animals for dog fighting is grounds for revocation of plaintiffs’ federal and state licenses. 7 USC 2149; MCL 287.390(1)(c); MSA 12.580(30)(1)(c). The Burgess letter states that plaintiffs sell to anyone, and then follows with the statement that some of these animals are used for dog fighting. This is not the same as calling someone a "blackmailer” or a "crook” in a strongly worded opinion statement. The Burgess letter’s language accuses or strongly implies that plaintiffs are involved in illegal or wrongful conduct involving dog fighting and moves across the line dividing strongly worded opinion from accusation of crime. These statements are not protected by the First Amendment from libel suits.
The Burgess letter was not a statement of opinion which is protected from defamation suits by the First Amendment. Thus, the court did not err in denying defendant’s motion for summary judgment on this ground.
II. WAS ACTUAL MALICE OR NEGLIGENCE THE PROPER STANDARD OF CARE TO APPLY IN THIS CASE?
Defendant claims that the "actual malice” standard applies to this case and that there was insufficient evidence of actual malice to support the jury’s verdict. In response, plaintiffs argue that a negligence, rather than an actual malice, standard applies, relying on Rouch v Enquirer & News of Battle Creek, 427 Mich 157; 398 NW2d 245 (1986). In Rouch, the Court held that there was no longer a qualified privilege protecting defendants in a libel suit where the plaintiff is a private person in a matter of public concern. The former qualified privilege required that the plaintiff prove that the defendant acted with actual malice, i.e., knowing of falsity or with reckless disregard for the truth. After Rouch, the plaintiff need not prove actual malice, but only negligence. Rouch, supra, p 187. Rouch was released one month after the trial in the instant case ended. Defendant claims that Rouch should not be applied retroactively, while plaintiffs argue that it should.
The general rule is that decisions of Michigan appellate courts are to be given full retroactivity unless limited retroactivity is preferred where justified by (1) the purpose of the new rule, (2) the general reliance upon the old rule, and (3) the effect of full retroactive application of the new rule on the administration of justice. [King v General Motors Corp, 136 Mich App 301, 306; 356 NW2d 626 (1984), lv den 422 Mich 871 (1985).]
We feel that none of these considerations are present to prevent Rouch from being applied retroactively in the instant case. In anticipation of Rouch, plaintiffs argued below that a negligence standard should apply. Indeed, this Court has already applied Rouch retroactively. Deitz v Wometco West Michigan TV, Inc, 160 Mich App 367, 375; 407 NW2d 649 (1987). Thus, defendant is not protected by the qualified "public interest” privilege.
Defendant also contends that actual malice is the standard because plaintiffs are limited purpose public figures. Although Rouch held that the limited "public interest” privilege no longer applies to private persons, it did not disturb the rule that a limited privilege does still protect defendants where the plaintiff is a public figure or limited-purpose public figure. Public figures may not recover damages for a defamatory falsehood relating to issues giving rise to their public status unless they prove that those statements were made with actual malice. Lins v Evening News Ass’n, 129 Mich App 419, 432; 342 NW2d 573 (1983); VandenToorn v Bonner, 129 Mich App 198, 203; 342 NW2d 297 (1983), lv den 421 Mich 864 (1985).
Defendant did raise this issue in its answer to plaintiffs’ complaint, but did not raise it at all before trial or at trial. In addressing the issue, we find that plaintiffs were not limited-purpose public figures. Defendant contends that plaintiffs were limited-purpose public figures because of the controversy over the Humane Society contract. A private person becomes a limited-purpose public figure when he voluntarily injects himself or is drawn into a particular public controversy and assumes a special prominence in the resolution of that public controversy. Lins, supra, p 432; VandenToorn, supra, p 205. However, a private individual is not automatically transformed into a limited-purpose public figure merely by becoming involved in or associated with a matter that at tracts public attention; the court must look to the nature and extent of the individual’s participation in the controversy. Wolston v Reader’s Digest Ass’n, Inc, 443 US 157, 166-167; 99 S Ct 2701; 61 L Ed 2d 450 (1979).
There is no factual support for defendant’s contention that plaintiffs are limited-purpose public figures. There was a controversy concerning both whether the county should maintain a separate animal shelter or should enter into a new contract with the Humane. Society and whether pound animals should be made available for animal research. However, there is no indication that plaintiffs voluntarily injected themselves or were drawn into the controversy so as to assume a special prominence in the resolution of these public questions. The only previous mention of plaintiffs in this context in defendant’s newspaper appears to be Dr. Kahn’s August 18, 1981, letter. Defendant’s editorial page editor admitted that Hodgins Kennels was not a household word in the area. Although plaintiffs did write letters to the editor, none of these were published in the Port Huron Times Herald, and there is no indication that these letters appeared in St. Clair County or were related to the Humane Society controversy. Although plaintiffs did have a county contract, receipt of public funds alone is not sufficient to make a private person a public figure. Hutchinson v Proximire, 443 US 111, 136; 99 S Ct 2675; 61 L Ed 2d 411 (1979); VandenToorn, supra, pp 205, 206.
III. WAS THERE SUFFICIENT EVIDENCE TO SUPPORT THE JURY’S FINDING THAT DEFENDANT ACTED WITH ACTUAL MALICE?
Even if actual malice was the proper standard, we find that there was sufficient evidence of actual malice. Where there is competent evidence to support the finding of a jury, its verdict should not be set aside. Willoughby v Lehrbass, 150 Mich App 319, 343; 388 NW2d 688 (1986). Circumstantial evidence and inference may be used to prove the actual malice necessary to defeat a conditional privilege. Steadman v Lapensohn, 408 Mich 50, 55; 288 NW2d 580 (1980), reh den 408 Mich 1109 (1980).
Plaintiffs presented strong circumstantial evidence indicating that defendant published with actual malice. The publisher of the Port Huron Times Herald was a strong supporter of the Humane Society, and defendant’s newspaper ran an extensive fund-raising drive for the Humane Society. Editor Lyons was aware that the Humane Society was trying to regain the county contract, and wrote editorials favoring a Humane Society contract. Lyons knew that the references to Hod-gins in the letter were to plaintiffs and that plaintiffs would lose business if the county contract went to the Humane Society. Lyons admitted that the Burgess letter stated that plaintiffs sold animals to anyone with the asking price, including those who were involved in dog fights, and that he knew that dog fighting was a crime. Lyons testified that'he normally verifies accusations of criminal activity which are contained in letters sent for publication as letters to the editor and that references to crimes were not uncommon in these letters. Lyons admitted that he knew of no criminal charges pending against plaintiffs, that he did not check into whether plaintiffs sold dogs to anyone with the asking price or sold dogs for dog fights, and that he had no reason to believe that plaintiffs sold animals for dog fights. Lyons did not take any action to check out or verify any part of the Burgess letter. Thus, despite Lyons’ statements denying that he acted with actual malice, there was sufficient evidence showing that defendant acted with actual malice. It is not the function of this Court to resolve conflicts in the evidence or to pass on the credibility of witnesses. Butcher v Dep’t Natural Resources, 158 Mich App 704, 707; 405 NW2d 149 (1987).
Here, there was sufficient evidence from which the jury could conclude that defendant acted with actual malice. The evidence also showed that defendant acted negligently. Therefore, since negligence is the proper standard to apply in reviewing this case, no error requiring reversal occurred even if the evidence failed to show actual malice.
IV. DID THE TRIAL COURT COMMIT ERROR IN INSTRUCTING THE JURY?
Defendant claims the court failed to properly instruct the jury on actual malice, reckless disregard, and opinion. If a jury instruction is erroneous or inadequate, reversal is required only where failure to reverse would be inconsistent with substantial justice. United Gratiot Furniture Mart, Inc v Michigan Basic Property Ins Ass’n, 159 Mich App 94, 103; 406 NW2d 239 (1987). We disagree with defendant that error requiring reversal occurred when the court reread SJI2d 118.05 after the jury requested the "legal interpretation” of "reckless disregard.” Because negligence was the proper standard, failure to reverse would not be inconsistent with substantial justice. Furthermore, contrary to defendant’s contention, the court did instruct the jury that actual malice depended on defendant’s state of mind. Finally, it was not error for the court not to instruct the jury on opinion, as the court had previously properly ruled that, as a matter of law, the letter was not protected as an opinion.
V. WAS THE jury’s FINDING THAT PLAINTIFFS’ ACTUAL DAMAGES WERE PROXIMATELY CAUSED BY DEFENDANT’S PUBLICATION OF THE BURGESS LETTER AGAINST THE GREAT WEIGHT OF THE EVIDENCE?
Where there is competent evidence to support the finding of the jury, its verdict should not be set aside. Willoughby, supra, p 343. Defendant argues that the jury’s finding that the Burgess letter was a proximate cause of plaintiffs loss of contract was against the great weight of the evidence. We disagree.
There were fifteen St. Clair County commissioners in 1981. Commissioner Al Wnuk testified that his constituents were concerned and angry over the Burgess letter and that he received over a hundred phone calls regarding the letter. Wnuk testified that at least four county commissioners had been influenced by the letter and that the letter had a very strong impact on the board of commissioners. Wnuk also testified that it was more expensive for the county to contract with the Humane Society, so the county resumed running its own dog pound in 1984, but avoided dealing with plaintiffs due to the controversy. Paul Gigmante testified that a county official contacted him in an effort to supply research animals to Henry Ford Hospital without dealing with plaintiffs.
Defendants presented the testimony of five county commissioners who testified that they voted for the Humane Society contract solely for financial reasons and that the Burgess letter did not affect their voting.
As stated earlier, it is not a function of this Court to resolve conflicts in evidence or to pass on the credibility of witnesses. Butcher, supra, p 707. Although the testimony of plaintiffs’ and defendant’s witnesses conflicts, plaintiffs did present sufficient evidence showing that the Burgess letter proximately caused plaintiffs’ loss of the county contract. The jury’s finding was not against the great weight of the evidence.
Defendant also claims the court erred in permitting Wnuk to testify over defendant’s hearsay objection. Defendant claims that Wnuk’s testimony regarding the contents of phone calls received from constituents and his conversations with county commissioners was hearsay. We disagree, as Wnuk was not using these conversations to prove the truth of the matter asserted — that plaintiffs sold animals to people who tortured them. Rather, this testimony was used to show the state of mind of the constituents and county commissioners. Thus, the testimony was admissible. MRE 801(c).
VI. DID THE TRIAL COURT ERR IN DENYING DEFENDANT’S MOTION TO SEVER ITS CASE FROM THE CASE AGAINST DEFENDANT GEORGE BURGESS?
MCR 2.505(B) allows a trial court to sever trials to avoid prejudice or for convenience, expedition, or economy:
For convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, the court may order a separate trial of one or more claims, cross-claims, counterclaims, third-party claims, or issues.
The decision to sever trials is within the trial judge’s discretion and should be ordered only upon a most persuasive showing. Dep’t of Treasury v Campbell, 161 Mich App 526, 532; 411 NW2d 722 (1987).
Defendant presents no evidence that it was prejudiced by the claim against it being tried before the same jury as the claim against Burgess. The jury’s verdicts are different for each defendant. Any potential prejudice to defendant caused by the presence of of the Burgess action was cured by the court’s instruction:
Now, in this case, as I indicated earlier, a default has been entered with respect to defendant George Burgess. This means that you must consider George Burgess libel [sic] to the plaintiffs and the only determination you need to make with respect to Mr. Burgess is the amount of plaintiffs’ damages.
Now, the fact of Mr. Burgess’ default should have no bearing on your consideration of the evidence concerning the defendant Times Herald Company. Defendant Times Herald Company contests both liability and damages.
Burgess played a very minor part in the trial, which was primarily devoted to the question of defendant’s liability. Therefore, convenience, economy, and expedience required that both the claim against defendant and the determination of damages attributable to Burgess be tried at the same time. The trial court did not err by denying defendant’s motion to sever.
VII. WAS THE JURY’S FINDING THAT THE BURGESS LETTER WAS OF AND CONCERNING PLAINTIFFF JAN HODGINS SUPPORTED BY THE EVIDENCE?
The jury’s finding that the letter was of and concerning Jan Hodgins was supported by the evidence.
Defendant’s editorial page editor, Lyons, testified that he knew that the reference to Mr. Hodgins in the Burgess letter referred to plaintiffs’ business, Hodgins Kennels. Both Fred and Jan Hodgins were joint owners of Hodgins Kennels. Jan Hod-gins was actively working in the Hodgins Kennels business for twenty-two years and was a partner in the business in 1981. When plaintiffs incorporated Hodgins Kennels in 1982, Jan Hodgins became a fifty percent shareholder in the business. The Burgess letter clearly referred to Hodgins Kennels’ business of buying and selling animals for research.
viii. DID THE TRIAL COURT ERR IN REFUSING TO CORRECT THE JUDGMENT TO INCLUDE AN AWARD OF EXEMPLARY DAMAGES TO PLAINTIFFS AGAINST DEFENDANT TIMES HERALD COMPANY?
Plaintiffs argue that Rouch implicitly changed the standard for the collection of exemplary damages against a libel defendant from bad faith or ill will to actual malice.
The Michigan Supreme Court held in 1984 that exemplary damages in a libel case can be awarded only if the plaintiff proves that the defendant published with common law malice, which is bad faith or ill will. Peisner v Detroit Free Press Inc, 421 Mich 125, 127, 136; 364 NW2d 600 (1984).
Plaintiffs contend that the Rouch decision implicitly overruled the Peisner decision, making exemplary damages available if the plaintiff merely proves actual malice. Although the Rouch decision does mention the Peisner decision, it never overrules Peisner or redefines the rules for exemplary damages in libel cases. Rouch, supra, p 183. Therefore, exemplary damages can be awarded in a libel case only if plaintiff proves that defendant acted with bad faith or ill will.
The jury found that defendant did not publish with bad faith or ill will, so the court did not err in denying plaintiffs’ motion to amend the judgment.
Affirmed.
The entire letter written by Burgess and published by defendant read:
In spite of his many prestigious titles, Dr. B. H. Kahn, Director of Besearch, Henry Ford Hospital, in his letter of Aug. 8 failed to convince me that use of animals in research (vivisection) can be considered humane by any stretch of the imagination. Dog Pound animals are sold not only to hospitals (which are not necessarily humane) but to anyone with Mr. Hodgins’ asking price.
Many of these animals end their lives in closed steel pens into which are sprayed daily hundreds of times the recommended dosages of all types of chemicals (fire extinguisher contents, hair sprays, paint etc.) simply to find the dose considered lethal. Some of the more frail dogs and some of the kittens and cats end up as "training animals” to be killed by dogs being trained for the many dog fights staged weekly in the state. Dr. Kahn alludes to the luxurious accommodations and protection afforded these animals prior to brutal and barbaric torture to which they are submitted. My concern lies with the suffering they endure during and after the "testing”.
At a recent meeting of the Board of Commissioners of Ma-comb County, our immediate neighbor to the south, a presentation was made by a Michele Dodman, president of Cruelty Free Living, Inc., and her mother, relating to the use and abuse to which animals are submitted in the name of research. Ms. Dodman detailed and documented cases of rabbits, with both front and rear legs tied to prevent scratching, having eye makeup etc., poured daily into the eyes to see how long it takes for the cosmetic to destroy the eye; dogs being dropped eight' floors to simulate auto crashes, etc. When the commissioners were informed that Macomb pound animals were being sold for this research, the chairman stated publicly he had no idea this was being done. Subsequently, and much to their credit, the board voted unanimously to end the sale of pound animals for research.
The Macomb Daily of July 25 covered this meeting and substantiates these facts.
Hopefully, St. Clair County Commissioners will vote to reinstate the contract with the Humane Society to house county animals (not take over the Dog Pound, as Dr. Kahn erroneously stated). In view of the overwhelming county-wide support for this contract, it seems inconceivable they could decide otherwise, research not withstanding [sic].
Obviously, Dr. Kahn and Henry Ford Hospital both have a very vested interest in this matter (now that their biggest supplier, Macomb County, has decided to no longer participate in this cold-blooded ritual, and animals for torture are in short supply) and the county commissioners should be well aware of this vested interest and in no way should it influence their votes on reinstatement of the contract with Humane Society.
Cruelty is cruelty, doctor, especially when it is perpetrated on an animal some county resident has dropped off at a pound, never suspecting the gruesome end to which his pet might come.
George Burgess
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Per Curiam.
Defendant was convicted, following a jury trial, of kidnapping, MCL 750.349; MSA 28.581, and first-degree murder, MCL 750.316; MSA 28.548. Defendant was sentenced to sixty-five to one-hundred years imprisonment on the kidnapping charge and mandatory life imprisonment on the murder charge. Defendant appeals as of right. We affirm.
The charges in this case arise from the kidnapping and murder of thirteen-year-old Shawn Moore in the late summer of 1985. At trial, defendant admitted killing the boy, but claimed he was insane at the time.
On appeal, defendant first claims that the trial court erred in denying his pretrial request for a change in venue from Livingston County. At the hearing on the motion, defense counsel played a videotape for the court which exemplified the type of coverage the local television stations were giving the case on their newscasts. Posters and newspaper articles from the local papers were also entered as exhibits. The community had offered a $50,000 reward for the safe return of Shawn Moore. The community had also distributed a leaflet which was captioned: "Shawn Moore’s accused murderer has twice been convicted of crimes involving young boys and twice given probation— and now — Shawn is dead. It could be your child!” Defense counsel argued that Livingston County was a small community that had become actively involved in defendant’s prosecution. Therefore, it would be impossible for defendant to get a fair trial in the venue.
The prosecution countered that, while there had been extensive pretrial publicity, it had not prejudiced the community against defendant. He urged the court to defer its decision on change of venue until after jury selection. The court took judicial notice of the fact that there had been extensive media coverage of the instant case. However, the court stated its confidence that it would be possible to empanel an impartial jury. The court therefore denied defendant’s motion for an immediate change of venue and invited defense counsel to renew the motion if its attempts to empanel a fair jury were unsuccessful.
In People v Jancar, 140 Mich App 222, 229-230; 363 NW2d 455 (1985), this Court set forth the law on change of venue:
Venue of a criminal case may be changed "upon good cause shown by either party.” MCL 762.7; MSA 28.850. A motion for change of venue in a criminal case is addressed to the trial court’s discretion, and the exercise of that discretion will be overturned on appeal only on a finding of abuse. People v Clay, 95 Mich App 152, 160; 289 NW2d 888 (1980), lv den 409 Mich 857 (1980). An abuse of discretion will not be found where a trial court, as here, elects to defer determination of a request for change of venue until jury selection has been attempted in the original county. People v Nixon, 114 Mich App 233, 240; 318 NW2d 655 (1982).
Moreover, the existence of pretrial publicity does not itself require a change of venue. Murphy v Florida, 421 US 794; 95 S Ct 2031; 44 L Ed 2d 589 (1975). If jurors are able to set aside their impres sions or opinions and render a verdict based upon the evidence adduced at trial, a change of venue is not necessary. People v Prast (On Reh), 114 Mich App 469, 477; 319 NW2d 627 (1982). A change of venue is proper only where there is a finding of a strong community feeling or a bitter prejudice towards the defendant. Id.
Although a defendant’s failure to utilize all of his peremptory challenges will not per se preclude him from assigning error on appeal, it is a factor to be considered in showing that the jury was satisfactory when finally empaneled. People v Haggart, 142 Mich App 330, 336; 370 NW2d 345 (1985), lv den 426 Mich 876 (1986).
In the instant case, while there was widespread publicity, it appears that through careful and considered effort an impartial jury was selected. The jury selection process took five days, and the trial court and counsel took a considerable amount of time and energy to seat the jury. Each prospective juror was asked if he or she had been exposed to the media coverage of the case. The jurors were also asked if they had formed an opinion as to the guilt or innocence of defendant. The court inquired of each juror whether he or she could remain fair and impartial. Each prospective juror was asked if he or she would agree not to discuss the case with anyone. In addition, the jurors were told not to watch television, listen to the radio, or to read any newspaper article about the case, and to base his or her verdict only on the evidence admitted in the courtroom. Defense counsel expressed satisfaction with the jury without using all of his peremptory challenges.
On the basis of the record, it does not appear that the court abused its discretion by denying defendant’s motion for change of venue. As is permissible, the court delayed ruling on defen dant’s motion until after the jury selection process. Having personally questioned the prospective jurors, the court was able to determine whether there was a feeling of prejudice in the community directed toward defendant. The court stated that it found "an ability and willingness to afford the defendant ... all the protections of the law.” Thus, we feel the court did not err. See People v Hart, 161 Mich App 630; 411 NW2d 803 (1987).
Next, defendant claims the trial court erred in failing to declare Dr. Jose Tombo a material witness and to fully assist in securing his testimony for trial. Before trial, defendant filed a motion in district court to have Dr. Tombo declared to be a material witness and to require a bond to secure his presence at trial. Counsel argued that Dr. Tombo was a material witness because he had treated defendant for three years and alleged irregularities in the treatment had a profound impact on defendant’s state of mind. Defense counsel argued that there was a suspicion Dr. Tombo might flee because he was a former resident of the Philippines and still had a valid passport, had been suspended from his job, and had been the focus of widespread media attention. In response, counsel for Dr. Tombo stated that Dr. Tombo had lived in the same apartment for twelve years, was fighting for reinstatement of his job, had a substantial property interest in his state retirement fund, and had previously met voluntarily with defense counsel in defense counsel’s office.
The court stated it was not convinced that Dr. Tombo was a material witness, but that he would consider Dr. Tombo to be a material witness for purposes of defendant’s motion. Nevertheless, the court did not believe that there was a danger of loss of Dr. Tombo’s testimony unless he furnished bail. The court invited defense counsel to raise this motion again should facts in the future indicate that Dr. Tombo would not show up at trial.
When trial commenced, Dr. Tombo did not appear. Therefore, defense counsel brought a motion for a stay of proceedings due to his inability to locate Dr. Tombo. Defense counsel argued that Dr. Tombo was a crucial witness because he had told defendant’s father, in a phone call prior to the trial, that he could help defendant’s insanity defense.
The prosecution outlined its extensive efforts to locate Dr. Tombo prior to trial. The prosecution argued that the defense had not shown the materiality of Dr. Tombo’s proposed testimony and also that all possible efforts to locate him had been made.
The court denied defendant’s motion, ruling that Dr. Tombo was not a material witness, that a stay of proceedings would not be helpful in producing Dr. Tombo for trial, and that the loss of Dr. Tombo’s testimony was, in part, defense counsel’s fault because defense counsel had not deposed Dr. Tombo when they had a chance. The court ruled that defendant had not exercised due diligence to secure Dr. Tombo’s testimony.
MCL 767.35; MSA 28.975 states:
When it appears to a court of record that a person is a material witness in a criminal case pending in a court in the county and that there is a danger of the loss of testimony of the witness unless the witness furnishes bail or is committed if he or she fails to furnish bail, the court shall require the witness to be brought before the court. After giving the witness an opportunity to be heard, if it appears that the witness is a material witness and that there is a danger of the loss of his or her testimony unless the witness furnishes bail or is committed, the court may require the witness to enter into a recognizance with a surety in an amount determined by the court for the appearance of the witness at an examination or trial. If the witness fails to recognize, he or she shall be committed to jail by the court, until he or she does recognize or is discharged by order of the court.
The statute permits a court of record to require a material witness in a criminal case to "enter into a recognizance with such sureties and in such amounts” as the court may deem necessary to ensure his or her appearance at trial. People v Baldwin, 74 Mich App 700, 705; 254 NW2d 619 (1977), rev’d on other grounds 405 Mich 550; 275 NW2d 253 (1979). By its own terms, the statute may be invoked only when "there is danger of the loss of testimony of such witness unless he be required to furnish bail or be committed.” Baldwin, supra, p 705. Therefore, requiring a material witness to post bond under the statute is within the court’s discretion and is proper only when there is reason to believe that the witness will not be available when his or her testimony might become necessary. Baldwin, supra, p 705.
If a material witness is absent at trial, it is within the trial court’s discretion to grant a motion for a continuance or stay of proceedings. MCR 2.503(C)(2). Reversal will be granted only where denial of the motion is an abuse of discretion and the moving party is prejudiced so that he is denied a fair trial. Larion v Detroit, 149 Mich App 402, 410; 386 NW2d 199 (1986), lv den 426 Mich 861 (1986). In Larion, the Court noted that the moving party’s handicap was partially attributed to itself, because the moving party failed to depose its crucial witness when it had a chance. Larion, supra, pp 410-411.
In the instant case, the record reveals that the substance of Dr. Tombo’s expected testimony was not crucial to the defense. In addition, the prosecutor listed its extensive efforts to locate Dr. Tombo. Defense counsel did not preserve Dr. Tombo’s testimony by deposing him prior to trial. In addition, if the extensive efforts outlined by the prosecution to locate Dr. Tombo had proved fruitless, a continuance would not likely have helped to secure Dr. Tombo’s testimony. Under all the circumstances, we find that the court did not err in denying defendant’s motions for bond or for a continuance.
Next, defendant claims the trial court erred in refusing to ask the jurors during voir dire whether they understood that, if a defendant is found not guilty by reason of insanity, it does not mean that he is a free man, but means that he immediately will be committed to an institution for treatment. The scope of voir dire examination of prospective jurors is within the discretion of the trial court and will not be disturbed on appeal absent an abuse of discretion. People v Harrell, 398 Mich 384, 388; 247 NW2d 829 (1976). In People v Goad, 421 Mich 20; 364 NW2d 584 (1984), the Court held that jurors are not to be concerned with the consequences of their verdicts. A limited exception to this rule previously existed for a defense based on insanity. In People v Cole, 382 Mich 695, 720-721; 172 NW2d 354 (1969), the Court held that a jury should be instructed as to the consequences of a verdict of not guilty by reason of insanity.
The general rule proscribing reference to the disposition of the defendant after the verdict has also been applied to areas other than jury instructions. For instance, it is improper for counsel to refer during closing argument to the disposition of a defendant after the verdict. People v Wallace, 160 Mich App 1, 6; 408 NW2d 87 (1987). The Wallace Court relied on People v Szczytko, 390 Mich 278, 285; 212 NW2d 211 (1973). While no cases have dealt specifically with our instant situation — referring at voir dire to the question of a defendant’s disposition after verdict — the above-cited authorities make it abundantly clear that the general rule applies throughout the trial. Goad, supra, pp 25-26, Szczytko, supra, p 285, Wallace, supra, p 6.
In the instant case, the court asked the jurors questions about the insanity defense. Defense counsel could have detected any prejudice against defendant from these questions, and utilized challenges to remove these jurors. In fact, the record reveals that defense counsel excused six jurors for bias against the insanity defense. Thus, we conclude that the court did not err in declining to give defendant’s proffered question to the jurors.
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Doctoroff, J.
Plaintiff appeals as of right from the trial court’s order granting defendant’s motion for summary disposition, MCR 2.116(C)(6) and (8). We reverse.
Plaintiff and defendant, both psychiatrists, were divorced in 1977. Plaintiff was awarded custody of the two minor children. On appeal, this Court affirmed in a memorandum opinion decided March 9. 1979, following which the Supreme Court denied leave to appeal.
In 1981, the divorce decree was modified to award custody of both children to defendant. On appeal, this Court reversed and remanded for an evidentiary hearing. Unpublished opinion per cu riam of the Court of Appeals, decided July 2, 1982 (Docket No. 59772).
Following the evidentiary hearing, plaintiff was awarded custody of one child and defendant was awarded custody of the other.
On appeal, this Court reversed and defendant regained custody of both children. Unpublished opinion per curiam of the Court of Appeals, decided November 5, 1986 (Docket Nos. 86942 and 87207). The Supreme Court then denied leave to appeal.
In the interim, on September 30, 1986, plaintiff filed a complaint against defendant alleging intentional and negligent infliction of emotional distress. She alleged outrageous conduct in that defendant used his training in psychiatry over an extended period of time to, among other things, "systematically manipulate, instigate, involuntarily convert, intimidate, indoctrinate and brainwash the minor children into totally rejecting” her to "the point of extreme antagonism and instilled hatred.”
Defendant thereafter filed a motion for summary disposition. The trial pourt granted it, ruling that plaintiffs claim of intentional infliction of emotional distress failed as á matter of law. The court stated that the creation of negative relationships does not amount to outrageous conduct. The court also found plaintiff’s claim to be barred by res judicata.
Plaintiff now claims that the trial court erred by granting defendant’s motion for summary disposition because her complaint stated a claim on which relief could be granted and was not barred by res judicata.
A motion for summary disposition pursuant to MCR 2.116(C)(8) tests the legal sufficiency of the pleadings. Cockels v Int’l Business Expo, 159 Mich App 30, 33; 406 NW2d 465 (1987), lv den 428 Mich 914 (1987). All well-pled allegations must be taken as true and the motion should be denied unless the alleged claims are so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recover. Hankins v Elro Corp, 149 Mich App 22, 26; 386 NW2d 163 (1986).
In Roberts v Auto-Owners Ins Co, 422 Mich 594; 374 NW2d 905 (1985), the Supreme Court addressed the tort of intentional infliction of emotional distress in the context of an insurance contract case in which the plaintiff was denied benefits. The Supreme Court determined that, because plaintiff failed to meet the threshold requirements of proof in order to make out a prima facie claim of intentional infliction of emotional distress, the Court was constrained from reaching the issue as to whether this modern tort should be formally adopted into our jurisprudence. Id., p 597.
The Court did, however, identify the four elements that make up a prima facie claim: (1) extreme and outrageous conduct; (2) intent or recklessness; (3) causation; and (4) severe emotional distress. Id., p 602.
The Court then elaborated on the first element:
An oft-quoted Restatement comment summarizes the prevailing view of what constitutes "extreme and outrageous” conduct:
"The cases thus far decided have found liability only where the defendant’s conduct has been extreme and outrageous. It has not been enough that the defendant has acted with an intent which is tortious or even criminal, or that he has intended to inflict emotional distress, or even that his conduct has been characterized by 'malice’, or a degree of aggravation which would entitle the plaintiff to punitive damages for another tort. Liability has been found only where the conduct has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community. Generally, the case is one in which the recitation of the facts to an average member of the community would arouse his resentment against the actor, and lead him to exclaim, 'Outrageous!’
"The liability clearly does not extend to mere insults, indignities, threats, annoyances, petty oppressions, or other trivialities. The rough edges of our society are still in need of a good deal of filing down, and in the meantime plaintiffs must necessarily be expected and required to be hardened to a certain amount of rough language, and to occasional acts that are definitely inconsiderate and unkind. There is no occasion for the law to intervene in every case where some one’s feelings are hurt. There must still be freedom to express an unflattering opinion, and some safety valve must be left through which irascible tempers may blow off relatively harmless steam. [Restatement Torts, 2d, § 46, comment d, pp 72-73.]” [Id., pp 602-603.]
The Court then went on to note that some conduct which would otherwise be extreme and outrageous might be privileged under the circumstances:
"The actor is never liable, for example, where he has done no more than to insist upon his legal rights in a permissible way, even though he is well aware that such insistence is certain to cause emotional distress. [Restatement Torts, 2d, §46, comment g, p 76.]” [Id., p 603.]
This Court has recognized the tort of intentional infliction of emotional distress in noninsurance cases. See Dickerson v Nichols, 161 Mich App 103, 107-109; 409 NW2d 741 (1987); Margita v Diamond Mortgage Corp, 159 Mich App 181, 187-191; 406 NW2d 268 (1987); Rosenberg v Rosenberg Bros Special Account, 134 Mich App 342, 350-353; 351 NW2d 563 (1984); Ledsinger v Burmeister, 114 Mich App 12, 17-21; 318 NW2d 558 (1982).
The trial court in the present matter ruled that the tort of intentional infliction of emotional distress does not exist for the creation of a negative relationship between a child and his other parent because it is a problem in almost every marital case and does not constitute conduct so outrageous that it cannot be tolerated in this civilized society. We disagree, and find the rationale in Raftery v Scott, 756 F2d 335 (CA 4, 1985), to be persuasive.
Rañery involved a plaintiff’s former wife’s successful effort to destroy the relationship between her son and plaintiff, his father, and to prevent their reconciliation. Although plaintiff had visitation rights, as plaintiff does in the present case, the former wife persuaded the son not to see the plaintiff. Id., p 337. The Raftery court determined that the facts of the case independently supported a claim for intentional infliction of emotional distress:
[I]t seems clear that, absent a bar for some reason, altogether independent of the alienation of affection contention, a cause of action should lie for psychological damage flowing from the enforced separation from the father, even, or, indeed, especially if the affection of the father had in no way abated, an entirely plausible possibility. [Id., p 340.]
In response to the former wife’s public policy argument that a child will suffer from psychological adversities if he is cast in the role of "a pawn in a battle inspired by greed for filthy lucre of one of the parents,” the Raftery court held:
Sufficient proof must be adduced of intentional infliction and something much more than simply aggravation must be shown to make out a case of emotional distress. The implicit threat of an avalanche of cases, arising whenever one parent makes an uncomplimentary remark about the other, simply is not perceived by us as seriously undermining society or its laws. The harm of deliberate frustration of a close and affectionate relationship between parent and child, which the evidence permitted the jury to find in the instant case, were there no remedy available to a parent who as a result was psychologically damaged strikes us as more potentially a danger to society. [Id.]
Similarly, in the present case, we are unpersuaded that the deliberate destruction of a parent-child relationship can never be recognized as outrageous conduct. As stated in Margita, supra, pp 189-190:
The extreme and outrageous character of the conduct may arise from the position of the actor or a relationship to the distressed party. Ledsinger, supra, p 19. For example, it may occur through an abuse of a relationship which puts the defendant in a position of actual or apparent authority over a plaintiff or gives a defendant power to affect a plaintiffs interest. Warren v June’s Mobile Home Village & Sales, Inc, 66 Mich App 386, 391; 239 NW2d 380 (1976). Whether a defendant’s acts were sufficiently outrageous depends upon the context in which the defendant committed them. Rosenberg, supra, p 353.
Taking plaintiff’s allegations as true, they are not so clearly unenforceable as a matter of law that no factual development could possibly justify a right to recover, Hankins, supra.
Defendant also brought his motion for summary disposition pursuant to MCR 2.116(C)(6). In Township Oil Co v State Bank of Fraser, 162 Mich App 737, 740-741; 413 NW2d 94 (1987), this Court stated:
Dismissal is proper when "[a]nother action has been initiated between the same parties involving the same claim.” MCR 2.116(C)(6) [formerly GCR 1963, 116.1(4)].
"The court rule is a codification of the former plea of abatement by prior action. See Rene J DeLorme, Inc v Union Square Agency, Inc, 362 Mich 192; 106 NW2d 754 (1961); Chapple v National Hardwood Co, 234 Mich 296, 297; 207 NW 888 (1926). Abatement protects parties from the harassment of new suits filed by the same plaintiffs involving the same questions as those in pending litigation. Chapple, supra, p 298. [Ross v Onyx Oil & Gas Corp, 128 Mich App 660, 666; 341 NW2d 783 (1983).]”
In order for a pending action to abate a subsequent action, the two suits must be based on the same, or substantially the same, cause of action and request for relief. Id.
The trial court also stated on the record that plaintiff’s action is barred by the doctrine of res judicata. The doctrine of res judicata is a manifestation of the recognition that endless litigation leads to vexation, confusion and chaos for the litigants as well as inefficient use of judicial resources. Rogers v Colonial Federal Savings & Loan Ass’n of Grosse Pointe Woods, 405 Mich 607, 615; 275 NW2d 499 (1979). For res judicata to bar plaintiffs action in the present case, (1) the former action must have been decided on the merits, (2) the same matter contested in the second action must have been decided in the first, and (3) the two actions must be between the same parties or privies. York v Wayne Co Sheriff, 157 Mich App 417, 422; 403 NW2d 152 (1987), lv den 428 Mich 907 (1987). In Michigan, the broad application of res judicata prevails, that is, all claims that could have been raised in the first action are barred as well as those claims that were actually litigated. Gose v Monroe Auto Equipment Co, 409 Mich 147; 294 NW2d 165 (1980).
In this case, only the nature of the contested matter is at issue.
"In the application of the doctrine of res judicata, if it is doubtful whether a second action is for the same cause of action as the first, the test generally applied is to consider the identity of facts essential to their maintenance, or whether the same evidence would sustain both. If the same facts or evidence would sustain both, the two actions are considered the same within the rule that the judgment in the former is a bar to the subsequent action. If, however, the two actions rest upon different states of facts, or if different proofs would be required to sustain the two actions, a judgment in one is no bar to the maintenance of the other.” [York, supra, p 423, quoting 30A Am Jur, Judgments, § 365, pp 407-408.]
In the present case, the two actions cannot be sustained by the same facts or proofs. The "former action” was the 1985 custody proceeding, in which defendant was ultimately awarded custody of both children. This action was litigated under the Child Custody Act, MCL 722.21 et seq.; MSA 25.312(1) et seq., and an eleven-factor test to be used in determining the best interests of the child. MCL 722.23; MSA 25.312(3). As part of the custody action, plaintiff did argue that defendant had "brainwashed” the children in order to purposely turn them against her.. However, that argument was relevant to one of the eleven factors for determin ing the willingness and ability of each of the parents to facilitate and encourage a close and continuing parent-child relationship between the child and the other parent. MCL 722.23(j); MSA 25.312(3)(j). The court in the custody proceeding had to assess that evidence as it relates to the best interests of the child, so proof of outrageousness, intent, causation and plaintiffs emotional distress would not have been required. See York, supra, p 423. Additionally, plaintiff is seeking monetary damages for an injury she is alleged to have incurred, whereas in the "former action,” both parties sought custody of the minor children. Plaintiff’s claims are not barred by the doctrine of res judicata, and the trial court erred by granting defendant’s motion for summary disposition on this ground.
Because defendant has failed to file a cross-appeal, we do not address the issues he raises. See MCR 7.207; Michigan Ass’n of Administrative Law Judges v Michigan Personnel Director, 156 Mich App 388, 395; 402 NW2d 19 (1986).
Reversed and remanded for trial. | [
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J. P. Jourdan, J.
Christopher, Stanley and Alyse Janowiak appeal as of right from the February 28, 1986, order of the Emmet County Probate Court that Lois J. Flum, guardian and conservator of the estate of Jean S. Clancy, a legally incapacitated person, be allowed to liquidate and sign a $10,000 certificate of deposit to pay the outstanding guardian/conservator fees and attorney fees.
Mrs. Clancy’s property at the time of appointment of the conservator consisted of five certificates of deposit, all of which were made payable to "Mrs. Jean S. Clancy or Stanley J. and Alyse and Christopher Janowiak.” These certificates were nontransferable six-month multiple-maturity certificates dated July 10, 1981. Also on the face of the certificates was stamped "either or survivor.”
On October 11, 1982, Lois Flum was appointed as permanent guardian and conservator of both Jean Clancy and her husband George. In addition, Flum was given full power and authority to take possession, collect, preserve, manage and dispose of all of the property of the estate.
Jean Clancy died on September 29, 1985, and her husband died on January 22, 1986. The final accounting of the fiduciary shows Jean Clancy’s certificates of deposit constituted her sole assets. The account also listed disbursements of $2,475 as attorney fees and $635 in guardian/conservator fees.
On February 28, 1986, the court ordered that Lois Flum was authorized on behalf of the estate of Jean S. Clancy to liquidate and sign a $10,000 certificate of deposit in order to pay the guardian/ conservator fees and attorney fees. The Janowiaks moved for a rehearing of that order. In a January 13, 1987, opinion, the court concluded that, when Jean Clancy was declared incompetent, the certificates of deposit passed into the custody and control of her fiduciary. Therefore, they were subject to liquidation as needed to meet the guardian/ conservator and attorney fees associated with her care. The balance of the certificates of deposit were appropriately forwarded to the Janowiaks, who were joint holders with Jean Clancy on the certificates.
The Janowiaks contend that the probate court erred in allowing one of the jointly held certificates of deposit to be liquidated to pay guardian/ conservator and attorney fees. We agree.
This dispute centers on two statutory provisions which appear to conflict, but do not. MCL 487.703; MSA 23.303 provides in pertinent part:
When a deposit shall be made, in any bank by any person in the name of such depositor or any other person, and in form to be paid to either the survivor of them, such deposits thereupon and any additions thereto, made by either of such persons, upon the making thereof, shall become the property of such persons as joint tenants, and the same together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to either during the lifetime of both, or to the survivor after the death of one of them ....
This statute provides that the creation of a joint account is prima facie evidence of an intention to vest title to the account in the survivor. In re Cain Estate, 147 Mich App 615, 624-625; 382 NW2d 829 (1985).
The Revised Probate Code, on the other hand, provides that title to a protected person’s property vests in the conservator:
The appointment of a conservator vests in the conservator title as trustee to all property of the protected person, presently held or thereafter acquired, including title to any property theretofore held for the protected person by custodians or attorneys in fact. The appointment of a conservator is not a transfer or alienation within the meaning of general provisions of any federal or state statute or rule, insurance policy, pension plan, contract, will or trust instrument, imposing restrictions upon or penalties for transfer or alienation by the protected person of the persons’ rights or interest, but this section does not restrict the ability of persons to make specific provision by contract or depositive instrument relating to a conservator. [MCL 700.480; MSA 27.5480.]
In addition, the conservator upon the death of a protected person has the following duty:
If a protected person dies, the conservator shall do all of the following:
* * *
(c) Retain the estate for delivery to a duly appointed personal representative of the decedent or other persons entitled thereto. [MCL 700.485(5); MSA 27.5485(5).]
Although the above statutory provisions appear to conflict, we believe that the Janowiaks are correct in their assertion that, on Clancy’s death, the title to the jointly held certificates of deposit immediately vested in them as the joint tenants. The Janowiaks correctly cite Guilds v Monroe County Bank, 41 Mich App 616; 200 NW2d 769 (1972), for the proposition that the right of survivorship in a joint account is controlled by MCL 487.703; MSA 23.303. The effect of this statute is to create a joint tenancy and, unless a contrary intention is shown, the survivor is entitled to the proceeds of the account.
In Guilds, Mrs. Guilds, as survivor of her husband, brought suit against the defendant bank to recover funds on deposit in a joint savings account, payable to either or to the survivor of them. The bank claimed a right to set off an indebtedness due the bank based on certain promissory notes executed solely by the plaintiff’s deceased husband. The bank alleged that all of the money was deposited by the husband and was solely money from his earnings and that no part of the money belonged to the survivor wife. This Court found in favor of the plaintiff because, as of the date of death, no action had been taken by either the bank or by the depositors to either secure the indebtedness by the account or to indicate any intention to create anything other than a joint tenancy.
In the instant case, there was no showing whatsoever to rebut the statutory presumption that the depositor intended to create a joint tenancy of the deposit evidenced by the certificates. Title to the certificates clearly was in either decedent or the Janowiaks as joint tenants and was payable to either or survivor.
Up until the time of Mrs. Clancy’s death, there is no question that her interest as joint tenant in the certificates of deposit was in the conservator as trustee pursuant to the various provisions of the Revised Probate Code. During her lifetime, any of her debts potentially could be satisfied by liquidating the certificates of deposit. However, upon her death, the remaining joint tenants, as survivors, were entitled to the proceeds. The surviving joint tenants also took the certificates of deposit free from the debts of their cotenant, Jean Clancy. Guilds, supra.
The important factor that conservator Flum fails to recognize in addressing this issue is that decedent’s jointly held assets never became part of her estate.
While this is undoubtedly a close question, and while it is understandable that the probate court relied upon the Probate Code, we believe that the court erred in determining that title to the disputed certificates of deposit vested in the conservator until the estate was closed.
Reversed. | [
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Per Curiam.
In this medical malpractice case, plaintiffs Cynthia Soto, personal representative of the estate of Stephen Soto, deceased, and Cynthia Soto and Luis Soto, individually, appeal from the order entered, following jury trial, granting a judgment in favor of defendants Bruce Badaglialacqua, D.O., Stephen Head, D.O., and Knollwood Clinic, P.C. Plaintiffs also appeal from the order granting summary disposition to defendants County of La-peer and Lapeer County General Hospital. We affirm.
On appeal, plaintiffs first claim that "the trial court erred in preventing plaintiffs from cross-examining defendants [Badaglialacqua and Head] about past incidents to impeach the credibility of their testimony.”
As plaintiffs acknowledge, the proofs at trial focused primarily on whether defendant Head performed a Scanzoni maneuver prior to delivering Stephen Soto, the son of Cynthia and Luis Soto. The Scanzoni maneuver is the rotation by forceps of a malpositioned baby just prior to the baby’s birth. According to defendant Head, he performed a manual rotation of the Soto baby. Other evidence, including the notes and deposition testimony of defendant Badaglialacqua, who was also present at the birth, indicated that the more dangerous forceps rotation had been performed. Among plaintiffs’ claims was the allegation that Stephen’s death two months after his birth was due to injuries sustained during a Scanzoni maneuver.
Plaintiffs claim that they should have been allowed to question the defendant doctors concern ing a forceps delivery in which they had participated a week before Stephen’s birth and in which the baby had died. Plaintiffs also state that it had been "hinted” that defendant Badaglialacqua had attempted to alter medical records in the prior case and that they should have been allowed to question defendant Badaglialacqua about that alleged accusation. Finally, plaintiffs claim error in the trial court’s ruling that defendant Head could not be questioned about a prior period during which his medical license had been restricted. We are persuaded of no evidentiary ruling by the trial court requiring reversal.
The issue of admissibility of evidence of the death of the other baby was raised during pretrial proceedings on defense motions to sever trial against the county and hospital from trial against the other defendants. At that time, the trial court noted that admission of that evidence against defendant doctors would cause "tremendous prejudice” to them. During trial, the court reiterated that "the determination of liability should always be on facts of the case at hand, not in any alleged other negligent acts.”
The trial court was well within its discretionary authority in determining that, in order to avoid diversion of the jurors’ attention from the facts surrounding Stephen’s birth, the evidence would not be admitted. Even assuming that the proffered evidence was otherwise admissible, we are not persuaded of an abuse of the trial court’s discretion in finding that its admission would unduly prejudice defendant doctors. MRE 405.
The allegation that defendant Badaglialacqua had been accused of altering records in the prior case was discussed at the pretrial proceeding on the motions for severance. Plaintiffs claim on appeal that evidence of that allegation was relevant to the issue of the credibility of defendant Badaglialacqua’s trial testimony, during which he contradicted both his deposition testimony and entries he had made in the Soto medical records. Even assuming that the evidence was relevant, we find that, by failing to request permission at trial to question Dr. Badaglialacqua about the alleged accusation, plaintiffs did not preserve this claim for appellate review. Harvey v Security Services, Inc, 148 Mich App 260, 264-265; 384 NW2d 414 (1986), lv den 425 Mich 863 (1986). Plaintiffs further claim that the jury "might . . . have found Dr. Badaglialacqua’s postoperative notes more credible if they had known that Dr. Badaglialacqua had just one week before been admonished for attempting to alter medical records in a similar incident.” Even assuming the viability of plaintiffs’ underlying claim of admissibility, there is no record support for their assertion that the admonishment had been made during the week between the prior incident and Stephen’s birth. Plaintiffs do not persuade this Court of error requiring reversal.
The issue of the admissibility of evidence of a consent order, whereby defendant Head had agreed to a probationary period during which his license was restricted, was discussed at length during trial. The consent order, which predated Stephen’s birth, apparently arose out of an administrative complaint filed against defendant Head concerning a specific procedure which had been performed on a particular patient. It did not arise out of the Soto case and apparently did not concern any procedures performed by defendant Head in Stephen’s delivery. We find no abuse of discretion in the trial court’s finding that the evidence was not relevant to the determination "whether any physician in this case was negligent.”
Next, plaintiffs claim error requiring reversal in the trial court’s ruling that Joseph Metz, an allopathic physician, could testify as an expert witness on behalf of defendant Head, an osteopathic physician. Dr. Metz, whose qualifications as an allopathic obstetrician are not challenged, testified that the relevant osteopathic and allopathic standards of care were the same. We are not persuaded of an abuse of the trial court’s discretion. Frazier v Hurd, 380 Mich 291, 301; 157 NW2d 249 (1968); Ferguson v Gonyaw, 64 Mich App 685, 695; 236 NW2d 543 (1975), lv den 396 Mich 817 (1976); Haisenleder v Reeder, 114 Mich App 258; 318 NW2d 634 (1982), lv den 417 Mich 969 (1983); Higgins v Detroit Osteopathic Hospital Corp, 154 Mich App 752; 398 NW2d 520 (1986), lv den 428 Mich 911 (1987).
Finally, plaintiffs claim that the court erred in finding that defendant hospital was protected by governmental immunity and in thus granting summary disposition to the hospital. Plaintiffs argue: (1) that defendant hospital is not a governmental agency entitled to immunity; (2) thát the immunity "defense” was not timely asserted; and (3) that they stated a valid cause of action in contract against the hospital. On the authority of Hyde v University of Michigan Bd of Regents, 426 Mich 223; 393 NW2d 847 (1986), and Stein v Southeastern Michigan Family Planning Project, Inc, 158 Mich App 702; 405 NW2d 147 (1987), lv gtd 429 Mich 861 (1987), we reject each of these arguments.
The orders from which plaintiffs appeal are affirmed. | [
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M. J. Shamo, J.
This appeal arises from a finding by respondent Department of Social Services that claimant, Robert Spratt, was ineligible for Aid to Dependent Children based on his unemployment (adc-u). Claimant appeals as of right from a December 5, 1986, order of the Newaygo Circuit Court granting summary affirmance arid denying peremptory reversal of a March 28, 1986, decision of an administrative hearing officer. We reverse the circuit court’s order and remand for a new hearing before a different hearing officer.
Claimant is a certified social worker who in 1980 incorporated the Christian Counseling Center, a nonprofit corporation providing counseling and psychological services. In January, 1981, he applied for adc-u benefits, claiming that during the thirty days prior to his application he volunteered no more than twenty-eight hours for the corporation. Moreover, claimant asserted that the corporation did not generate enough income to pay him. In its written negative action notice dated January 29, 1981, respondent denied claimant’s adc-u application, stating, "your business provides you the opportunity of being employed 100 or more hours per month.” However, respondent maintains on appeal that its "real reason” for denying claimant’s application was claimant’s failure to verify the number of hours worked. Respondent never expressed this latter reason in writing but claims that claimant had verbal notice of it.
Claimant appealed respondent’s decision, and on April 30, 1981, a hearing officer affirmed respondent’s denial. The hearing officer found that claimant failed to meet the adc-u eligibility requirement defining "unemployment” as "employed less than 100 hours a month,” 45 CFR 233.100(a)(1)(i). The hearing officer refused to consider claimant’s testimony regarding the number of hours worked on the basis that better evidence was available from the corporation’s counseling records. Since claimant refused to produce these records on the basis of privilege, MCL 338.1764; MSA 18.365(14), the hearing officer ruled that claimant was ineligible for adc-u benefits, finding claimant’s testimony regarding the number of hours worked to be hearsay evidence of a type not commonly relied upon by reasonably prudent persons in the conduct of their affairs, MCL 24.275; MSA 3.560(175). The hearing officer also found that claimant had control over the corporation and could influence the corporation to pay him for his services. The hearing officer stated, "To permit the corporation entity to be used as a shield for nonpayment of [claimant’s] counseling services at [claimant’s] choice . . . would work a wrongdoing on the taxpayers who furnish the public assistance.”
Claimant Appealed the hearing officer’s decision to the Newaygo Circuit Court, which affirmed on November 30, 1982. This Court affirmed the circuit court’s decision on April 30, 1985. Unpublished opinion per curiam (Docket No. 70103). On February 20, 1986, the Michigan Supreme Court vacated the decisions of the lower tribunals and remanded the case to respondent for a rehearing, 424 Mich 880 (1986). In its order remanding the case, the Supreme Court stated:
The hearing officer erred in refusing to consider claimant’s testimony on the number of hours he worked on the basis that better evidence was available from claimant’s counseling records. The only testimony concerning the content of these records indicated that they do not contain specific information on the duration of counseling sessions, but rather summarize the substantive content of those sessions. Thus, the original records rule did not apply, MRE 1002. Claimant asserted a privilege concerning these records, MCL 338.1764; MSA 18.365(14). The hearing officer also erred in declining to consider the corporation’s financial records which were probative of the issue of whether claimant diverted corporate funds which should have been used to pay him a salary. On remand, the hearing officer shall admit the subject testimony and consider it to the extent it is found credible and otherwise admissible.
With respect to the reason given in respondent’s 1981 written negative action notice, i.e., that claimant had the opportunity to be employed one hundred or more hours per month, the Supreme Court order directed the hearing officer on remand to consider the effect, if any, of Oberschachtsiek v Iowa Dep’t of Social Services, 298 NW2d 302 (Ia, 1980). This case holds that adc-u benefits may not be denied to self-employed persons on the basis of their availability to work one hundred or more hours per month; rather, the actual number of hours worked must be considered.
The hearing on remand was conducted before the same hearing officer who had heard the case in 1981. The parties stipulated that the matter of claimant’s diversion of corporate funds was no longer at issue. The hearing officer allowed claimant to testify concerning the number of hours worked, but refused to allow him to refer to corporate records to refresh his recollection. The hearing officer further refused to consider the corporate records themselves as evidence of the number of hours worked. The hearing officer based his evidentiary rulings on his belief that, under the Supreme Court order remanding the case, the corporate records were only admissible with respect to claimant’s alleged diversion of funds. Since the diversion of funds was no longer at issue, the hearing officer found the corporate records irrelevant and immaterial. Having refused to consider the proffered corporate records, the hearing officer found that claimant’s testimony concerning the number of hours worked was based on "unsupported conclusory guess or estimate,” and ruled again that claimant had failed to establish his eligibility for adc-u benefits.
The hearing officer also held that respondent’s written denial of benefits based on claimant’s "opportunity” to work one hundred hours or more per month was contrary to Oberschachtsiek v Iowa Dep’t of Social Services, supra. However, the hearing officer found the case inapplicable to claimant’s situation because claimant failed to raise the defect in notice at the 1981 hearing. Moreover, the hearing officer found an alternative reason for respondent’s denial of benefits based on "verification failure,” despite the fact that claimant was not notified of this reason in writing.
The Newaygo Circuit Court affirmed the decision on remand in the order of December 5, 1986, from which this appeal is taken. On appeal, claimant maintains that the hearing officer should have been disqualified from rehearing his case because of bias. Claimant also challenges the decision on rehearing on the following grounds: (1) the hearing officer refused to admit corporate financial records and summaries of such records offered to support claimant’s claim of eligibility for adc-u benefits; (2) the hearing officer erroneously found claimant’s testimony insufficient to support his application; and (3) the hearing officer misapplied the Oberschachtsiek decision in this case. Finally, claimant denies that objections based on the Oberschachtsiek decision have been waived. We find merit in all of claimant’s arguments.
Claimant asserts bias based on the hearing officer’s exposure to prejudicial statements regarding claimant’s religious beliefs and the hearing officer’s gross abuse of discretion in the 1981 hearing. Respondent correctly points out that, because claimant did not address this issue in his motion for peremptory reversal, the circuit court did not err in failing to consider it. However, we note that claimant raised the issue of bias before the hearing officer on rehearing and in his petition for review to the circuit court. We will address it now despite the technical shortcoming in order to avoid injustice. MCR 7.216(A)(3).
The right to a hearing before an unbiased and impartial administrative decisionmaker is a basic requirement of due process and of MCL 24.279; MSA 3.560(179). Actual bias need not be shown to obtain disqualification of a hearing officer; rather, the situation must be one where the probability of actual bias is too high to be constitutionally tolerable. Crampton v Dep’t of State, 395 Mich 347, 354; 235 NW2d 352 (1975). One situation presenting such an intolerable risk is where a decisionmaker is put in the position of reviewing a decision he or she initially made. Id. Because this situation poses an intolerable risk that the decisionmaker may have prejudged the case, due process requires a new decisionmaker. 395 Mich 351. See also City of Livonia v Dep’t of Social Services, 423 Mich 466, 513; 378 NW2d 402 (1985).
The hearing officer in the instant case should not have presided on rehearing over a case he initially decided. His comments on the record on rehearing indicate that he may have prejudged the case. When asked by claimant to disqualify himself on the basis of bias, the hearing officer stated, "And, as far as making erroneous conclusions, I still believe I made the proper conclusions at the time.” Moreover, the hearing officer failed to correctly carry out the Supreme Court’s order remanding the case, see discussion, infra. Accordingly, we hold that claimant is entitled to a rehearing before a different hearing officer.
We will further address claimant’s objections to the hearing officer’s decision on rehearing because the same issues will doubtless arise when the case is heard before a new hearing officer. In reviewing the decision on rehearing, we note that we may only reverse if the decision: (1) violates the constitution or a statute; (2) exceeds the agency’s authority or jurisdiction; (3) is made upon unlawful procedure; (4) is not supported by competent, material, or substantial evidence; (5) is arbitrary or capricious, or an abuse of discretion; or (6) is affected by any other substantial or material error of law. MCL 24.306; MSA 3.560(206); Soto v Director of the Michigan Dep’t of Social Services, 73 Mich App 263, 269; 251 NW2d 292 (1977); General Motors Corp v Bureau of Safety & Regulation, 133 Mich App 284, 287-288; 349 NW2d 157 (1984).
We find that the hearing officer’s refusal to admit corporate records offered to support claimant’s claim that he worked less than one hundred hours per month was arbitrary and capricious and an abuse of discretion which denied claimant his due process right to present his case.
An administrative agency may consider evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs subject to the rules of evidence as applied in a nonjury civil case. MCL 24.275; MSA 3.560(175). Evidentiary rulings in an administrative proceeding are not the same as those in courts of law; for example, hearsay evidence may be considered if it is commonly relied on by reasonably prudent persons in the conduct of their affairs. Rentz v General Motors Corp, 70 Mich App 249, 253; 245 NW2d 705 (1976), lv den 398 Mich 804 (1976).
We are persuaded by claimant’s argument that corporate financial records are commonly relied on by reasonably prudent persons in the conduct of their affairs. Moreover, it is conceivable to us that the number of hours claimant worked could be reconstructed from corporate records even if they do not address this matter directly. For example, the amount of money taken in by the corporation would be an indication of the workload of the employees, just as any sums paid to claimant would be an indication of his workload.
Our conclusion that the corporate records are admissible to support claimant’s claim is bolstered by the fact that, at the 1981 hearing, the hearing officer suggested that claimant submit such records with any privileged matter deleted. Respondent misreads the Supreme Court’s 1986 order when it argues that the order prevented the hear ing officer from receiving such records. The order states only that the records were not better evidence of hours worked than claimant’s testimony. The order does not say that the records are not admissible to support claimant’s claim. The parties’ stipulation that the matter of diversion of corporate funds was no longer at issue is also no obstacle to the admission of corporate records to show hours worked. Respondent’s argument to the contrary ignores the fact that the diversion issue is a separate question which has no bearing on the admission of evidence to show the number of hours worked.
The hearing officer’s failure to consider claimant’s testimony regarding the number of hours worked was another abuse of discretion. The hearing officer found claimant’s testimony speculative and refused to give it any weight in reaching his decision on rehearing that claimant was ineligible for adc-u benefits. We find that the hearing officer forced claimant to speculate by refusing to allow him to refresh his recollection from a study he had prepared from corporate records. Claimant was entitled to refresh his recollection under MRE 612, and we do not find it unreasonable that, after five years, claimant would need to refresh his memory as to hours worked by referring to his notes. It was arbitrary and capricious for the hearing officer to forbid claimant from doing so, particularly where the same hearing officer had demanded documentation to support claimant’s testimony at the 1981 hearing.
Respondent’s argument that claimant’s study did not exist at the time of the first hearing is without merit. The records from which the study was made existed at the time of the first hearing, and, in any case, the 1986 proceeding was an entirely new hearing. See also MRE 1006.
We also find that the hearing officer did not properly carry out the Supreme Court’s order to consider the effect of the Oberschachtsiek decision in the instant case. Despite his express finding that respondent’s written negative action notice violated the Oberschachtsiek decision, the hearing officer found the decision inapplicable here because of respondent’s alternative unwritten rationale that claimant had failed to verify the number of hours worked. We do not find substantial evidence on the record to support the conclusion that respondent had an alternative unwritten reason for denying claimant’s application for adc-u benefits. Respondent’s case worker testified that the standard applied in claimant’s case was the "availability” standard prohibited in the Oberschachtsiek decision. Respondent’s actions were consistent with this improper standard. Respondent’s Assistance Payments Policy 216 states: "Adc-u applications are pended, rather than denied, if unemployed status is the only eligibility factor which is not met at application.” Had the "real reason” for denial of benefits been verification failure, as respondent claims, it would have pended the case under this regulation and sought additional information from claimant regarding the actual number of hours worked. However, because respondent mistakenly believed that claimant’s availability for work made him ineligible for adc-u benefits regardless of the hours actually worked, respondent found no reason to pend the case. Accordingly, we find that respondent violated the Oberschachtsiek decision in deed as well as in word.
We further disagree with respondent’s argument that claimant waived his objection to the defective written notice. The hearing officer’s finding that claimant had actual verbal notice of the verification issue is not supported by substantial evidence on the record. Respondent’s caseworker testified that she neither told claimant she had to make a determination of the number of hours he actually worked nor informed him that corporate records would be necessary for verification. In fact, the caseworker testified that she never asked claimant to keep track of his hours because she believed such figures were irrelevant where claimant was available to work more than one hundred hours per month. We find that claimant suffered material prejudice as a result of respondent’s failure to properly notify him of a verification problem, in that he was denied the opportunity to prove his eligibility for adc-u benefits. Accordingly, we will not deem his objection to respondent’s improper notice waived. Soto v Director of the Michigan Dep’t of Social Services, supra, 73 Mich App 272-273.
Reversed and remanded for a new hearing in accordance with this opinion.
We find no evidence in the record that claimant faced discrimination because of his religious beliefs. | [
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Per Curiam.
In October, 1982, petitioner’s license to practice medicine was summarily suspended by the Michigan Board of Medicine. Petitioner was suspended after he was charged with violating the provisions of the Public Health Code, MCL 333.1101 et seq.; MSA 14.15(1101) et seq. Specifically, petitioner was charged with selling prescriptions for controlled substances and false work excuses. The complaint also alleged that petitioner failed to keep adequate medical records.
Subsequently, respondent board of medicine revoked petitioner’s license in June, 1983. Petitioner immediately filed an appeal of the board’s order revoking his license. In August, 1984, the Wayne Circuit Court issued an order vacating the board’s final order and reinstating petitioner’s medical license. This order was appealed and this Court ultimately affirmed the revocation of petitioner’s license. Kieffer v Bd of Medicine, 142 Mich App 825; 371 NW2d 462 (1985).
Petitioner filed an application for reinstatement of his license in July, 1984, in compliance with §16245 of the Public Health Code. The board denied his application for reinstatement. Petitioner appealed to the Wayne Circuit Court, which remanded the matter to the board with an order that a supplemental hearing take place on the issue of good moral character. After listening to both parties’ testimony at this hearing, the hearing referee concluded that petitioner had demonstrated by clear and convincing evidence that he is of good moral character and that petitioner meets the standard of having the propensity to serve the public in a fair, honest and open manner.
The board of medicine rejected the hearing referee’s finding that petitioner was of good moral character, and entered a final order denying reinstatement of petitioner’s license to practice medicine. Petitioner appealed the denial of the reinstatement of his license to the Wayne Circuit Court. The circuit court affirmed the board’s decision denying petitioner reinstatement of his license, stating that such denial did not amount to an abuse of discretion. Petitioner now appeals to this Court.
We find that the trial court erred in applying the abuse of discretion standard in reviewing the agency’s decision. The reviewing court must find that the agency’s decision, at the very least, was supported by competent, material and substantial evidence. Const 1963, art 6, § 28; Russo v Dep’t of Licensing & Regulation, 119 Mich App 624, 630-631; 326 NW2d 583 (1982).
However, the trial court’s error in applying the abuse of discretion standard is harmless. On appeal, this Court reviews the matter to determine whether it was authorized by law and supported by competent, material and substantial evidence. Reed v Hurley Medical Center, 153 Mich App 71, 75-76; 395 NW2d 12 (1986). Discussing this standard of review in a different context, this Court said in Sibel v Dep’t of State Police, 154 Mich App 462, 465; 397 NW2d 828 (1986):
Under this standard, the Civil Service Commission’s action in this case must be upheld if it is supported by such evidence as a reasonable mind would accept as adequate to support the decision. Parnis v Civil Service Comm, 79 Mich App 625, 629; 262 NW2d 883 (1977). Further, deference should be given to an agency’s interpretation of its own rules. See Nicholas v Michigan State Employees Retirement Bd, 144 Mich App 70; 372 NW2d 685 (1985). Only if the decision of the commission is not authorized by law or amounts to arbitrary action will this Court reverse.
In this case the record included evidence of petitioner’s felony conviction, his probationary status, and the fact that he had refused to continue treatment with a therapist after his license was revoked. Petitioner, who had the burden of proving by clear and convincing evidence that his license should be reinstated, presented evidence of his having completed twenty-five hours of continuing medical training, testimony that he would change his bookkeeping practices, and several witnesses as to his good moral character.
Under these facts, a reasonable mind could accept that adequate evidence was presented to support the agency’s decision. When the evidence for both sides is reviewed, and bearing in mind petitioner’s burden, we conclude that the board of medicine did not err in declining to reinstate petitioner’s license to practice medicine. As stated in Tuck v Ashcraft’s Market, Inc, 152 Mich App 579, 586; 394 NW2d 426 (1986):
[W]here substantial evidence exists to support both sides and the agency must make a judgment assigning credibility to one side, we may not substitute our judgment for that of the agency.
Since there is competent, material and substantial evidence to support the agency’s decision in this case, the decision of the board of medicine is affirmed.
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Per Curiam.
Respondent, Margaret Jedd, appeals as of right from a March 10, 1987, order of the Wayne County Probate Court directing her to turn over to the estate of Julianna Cullmann the proceeds of certain bank accounts previously held jointly by Jedd and Cullmann. We reverse.
The record reveals that Jedd and Cullmann were neighbors and close friends since 1948. Jedd stated that Cullmann was treated like a member of her family and that she thought of Cullmann as being "like a mother” to her. The two women were often together, and Cullmann spent holidays with Jedd and her family. For several years, Cullmann baby-sat for Jedd’s daughter. Jedd sometimes ran errands for Cullmann, and when the latter was sick Jedd would take her to the hospital.
In 1981, Cullmann funded two joint bank accounts with Jedd. The signature cards for the accounts were signed by both Cullmann and Jedd, one specifying that the funds in the account were the property of the signatories as joint tenants and would be paid to "any one of the undersigned or to any survivor of them,” and the other stating that the funds were "payable to either with right of survivorship.” Jedd testified that when these accounts were established Cullmann told her that the accounts — one a savings account and the other a money market account — were for Jedd. Jedd also testified that Cullmann owned an individual savings account containing $4,000 and kept $1,000 in cash hidden in her home in a place known to Jedd, apparently accumulated from social security payments and wages earned from baby-sitting and ironing, in order to pay her living expenses.
In May, 1985, Cullmann suffered a heart attack and was hospitalized. While in the hospital she told Jedd to take possession of the bank account books. At the end of May, when Cullmann returned home, Jedd returned the books to Cullmann, who said that if she were to become ill in the future Jedd should again take custody of the books. Shortly thereafter, when Cullmann returned to the hospital, Jedd again took custody of the bank account books. On June 12, 1985, Jedd withdrew the money from, and closed, the joint bank accounts, almost one month prior to Cullmann’s death on July 10, 1985.
Ann Wrubel, Cullmann’s niece, testified that when her aunt was in the hospital in 1985 she said that Jedd had access to her bank account and was "taking care of all her business.” Henry Gutenkunst, whose wife was related to Cullmann, testified that three years before her death Cullmann said that she had a $10,000 money savings certificate in a joint account with Jedd which was to be cashed at the time of her death in order to pay her debts and funeral expenses, with the remainder returning to her estate.
On May 7, 1986, petitioner, Theodore Cullmann, the personal representative of Cullmann’s estate, filed a petition requesting the probate court to declare the proceeds of the joint bank accounts to be assets of Cullmann’s estate. He alleged that Jedd exerted undue influence in order to convince Cullmann to open the joint accounts and that Cullmann established the accounts merely for her convenience and without the intention of Jedd’s obtaining survivorship rights. After hearing testimony, the probate court issued a written opinion on December 18, 1986, and an order on March 10, 1987, directing Jedd to turn over to Cullmann’s estate the proceeds of the joint bank accounts. On appeal, Jedd argues, among other things, that the probate court erred in ordering her to turn over the proceeds of the accounts to Cullmann’s estate. We agree.
The probate court, in concluding that the funds withdrawn by Jedd were being held by her under a constructive trust and had to be turned over to Cullmann’s estate, reasoned — citing solely Allstaedt v Ochs, 302 Mich 232; 4 NW2d 530 (1942)— that since the funds had been withdrawn during Cullmann’s lifetime, Jedd’s ability to receive them as a joint owner by way of a right of survivorship was not in issue: "Mrs. Jedd,” the court observed, "did not wait to be a survivor. She withdrew the funds before Mrs. Cullmann [sic] death.” Thus, the probate court declined to assess Jedd’s entitlement to the bank accounts as a surviving joint owner, framing the issue as "whether or not Mrs. Cullmann intended [to make] a present gift of the joint bank accounts at the time they were established.” Having determined "the fact that Mrs. Cullmann retained the [bank account books] in her possession and that she gave them to Mrs. Jedd for safekeeping but then required them from Mrs. Jedd upon her return from the hospital would indicate she did not intend [to make] a present gift,” the probate court declared that Jedd had no right to keep Cullmann’s money.
First, we note that Michigan’s joint ownership statute regarding bank accounts provides that a deposit made in a jointly held bank account with the right of survivorship becomes the property of the joint tenants and may be paid to any one of such individuals during his or her lifetime or to the survivor or survivors of such individuals. MCL 487.703; MSA 23.303; see also Wright v White, 156 Mich App 1, 6-7; 401 NW2d 288 (1986), lv gtd 428 Mich 873 (1987). Moreover, that statute provides that a deposit made in a jointly held bank account with the right of survivorship shall, in the absence of fraud or undue influence, be prima facie evidence of the depositor’s intention to vest title to the deposit in a surviving joint owner. MCL 487.703; MSA 23.303. See Jacques v Jacques, 352 Mich 127, 134-138; 89 NW2d 451 (1958); Traverse City State Bank v Marron, 29 Mich App 518; 185 NW2d 558 (1971), remanded on other grounds 385 Mich 753; 187 NW2d 215 (1971).
Having briefly noted the content of the joint tenancy statute regarding bank accounts, we now turn to the only case cited by the probate court in its opinion. In Allstaedt, supra, a father opened two bank accounts to be held jointly by himself and his daughter. At the time the accounts were opened the daughter promised her father that she would not withdraw any money from the accounts without his consent. Two months before the father died, however, the daughter broke her promise and withdrew the funds from the two accounts. The Supreme Court, noting that jointly held bank accounts create by way of statute a rebuttable presumption establishing that title to such accounts is vested in a named joint owner, stated that "the simple question presented here ... is whether or not [the father] made a gift of the two bank accounts to his daughter.” 302 Mich 235. Emphasizing that the daughter herself had admitted that she was not to withdraw money without her father’s consent and that a bank manager testified that the father stated at the time he opened one of the accounts that the joint ownership of the account "was for the purpose of having someone able to take care of emergencies,” id., p 237, the Supreme Court concluded that the father did not intend to make a gift to his daughter of the bank accounts. Therefore, the Supreme Court affirmed the lower court’s decree ordering the daughter to pay to her father’s estate the money, with interest, she had withdrawn from the jointly held accounts prior to her father’s death.
In another case with some factual similarity to the case at bar, the Supreme Court upheld a lower court’s decree requiring a named joint owner of certain bank accounts to turn over to the estate of a deceased joint owner the funds withdrawn from the joint account during the lifetime of the deceased joint owner. In Hazen v Elmendorf, 365 Mich 624; 113 NW2d 892 (1962), the decedent established joint bank accounts in the name of herself and of the defendant, Mrs. Verely M. Elmendorf. Testimony showed that the accounts were created for the purpose of permitting Elmendorf to render assistance in the withdrawal and investment of funds for the benefit of the decedent. However, Elmendorf withdrew money from the accounts and used it for her own purposes. The Supreme Court thus affirmed the lower court’s declaration that Elmendorf held the withdrawn funds in a constructive trust for the decedent’s estate.
We agree with the probate court that, during her lifetime, Cullmann intended to retain control of her joint bank accounts, desiring that only after her death would title to the funds in those accounts become fully vested to Jedd. If this were not the case, why would Cullmann so scrupulously have retained possession of the account books except during those periods at the end of her life when she was hospitalized and, apparently, in great peril of death? Jedd was not told at the time Cullmann opened the accounts how much money the accounts contained, and she was not given access to the account books until several years had elapsed and Cullmann was hospitalized with life-threatening medical ailments. Prior to the onset of Cullmann’s serious medical problems, for which hospitalization was required, Jedd never presumed to treat the money in the accounts as her own, or even to discuss with Cullmann whether the funds were available for her withdrawal. Accordingly, we conclude that, as in Allstaedt, the funding depositor in this case did not intend, upon opening the joint accounts at issue, to make a gift of the accounts to the named joint owner. Moreover, we conclude that, as in Hazen, a trust and confidence existed between the funding depositor and the named joint owner such that the latter was not to use the funds in the jointly held accounts for personal purposes during the life of the funding depositor. Thus, were we to stop at this point in our analysis, we would affirm the probate court’s order requiring Jedd to turn over to Cullmann’s estate the funds she withdrew from the jointly held bank accounts approximately one month before Cullmann’s death.
We do not affirm the probate court’s order, however, because we feel that that court prematurely ended its analysis of the issue presented. Had Jedd not withdrawn the funds from the jointly held bank accounts prior to Cullmann’s death, she would have been the only surviving joint owner of the accounts. Nothing in the record suggests that either Cullmann herself or anyone else acting legally in her behalf sought to withdraw the funds for any legitimate purpose. Thus, equity requires that we continue our analysis and determine whether, as a surviving joint owner of the accounts, Jedd was entitled to receive the withdrawn funds.
As already noted, Michigan’s joint ownership statute regarding bank accounts provides that a deposit made in a jointly held bank account with the right of survivorship, in the absence of fraud or undue influence, is prima facie evidence of the depositor’s intention to vest title to the deposit in a surviving joint owner. MCL 487.703; MSA 23.303; Jacques, supra; Traverse City State Bank, supra. This presumption can, however, be rebutted by reasonably clear and persuasive proof to the contrary, i.e., by proof of the decedent’s intent that title to the jointly held funds not vest in the survivor. Jacques, supra. While mindful that this statutory presumption disappears upon the intro duction of contrary evidence, Pence v Wessels, 320 Mich 195, 199-200; 30 NW2d 834 (1948), we do not believe that the evidence introduced in this case shows that Cullmann intended that title to the funds held in the name of herself and Jedd was not to vest in Jedd upon Cullmann’s death. Indeed, we believe that the competent evidence in this case establishes exactly the opposite.
Jedd testified that she and Cullmann signed the signature cards for the bank accounts in each other’s presence in 1981 and that when doing so Cullmann told her that the accounts were for her. According to Jedd, Cullmann never mentioned using the money in the accounts for Cullmann’s burial or other expenses. The two women shared a close and longstanding relationship, Jedd testifying that she thought of Cullmann as being "like a mother” to her. Jedd never asked Cullmann whether she could withdraw from the joint account during Cullmann’s lifetime, but when Cullmann suffered a heart attack and was hospitalized in May, 1985, Cullmann gave Jedd possession of the bank account books. Shortly thereafter, when Cullmann returned home and reacquired the bank account books, she told Jedd to take the books in the future if she, Cullmann, ever became ill. In June, 1985, Cullmann suffered a stroke and Jedd took the bank account books.
The only significant evidence tending to rebut the proposition that Cullmann intended title to the jointly held funds to vest in Jedd upon Cullmann’s death is that proffered by Henry Gutenkunst, who was related to Cullmann. Gutenkunst testified that approximately three years prior to her death, Cullmann told him: "All I’ve got is a ten thousand dollar money saving[s] certificate in the bank in joint with Mrs. Jedd, which is to be cashed upon my death to pay all debts, funeral, doctor and what-have-you, and the rest is to go into the estate and give — divided in the will.” This hearsay testimony, however, was improperly admitted into evidence over continuing objections from Jedd’s attorney. Under MRE 803(3), hearsay may be admissible into evidence if it concerns the declarant’s "then existing state of mind.” Gutenkunst’s testimony did not relate to Cullmann’s state of mind or intent at the time she created the joint bank accounts. Rather, it related to her state of mind at a time long after the creation of the accounts. In addition, the Supreme Court has clarified that statements made by a decedent regarding the decedent’s state of mind when depositing money into a joint bank account are not admissible into evidence if the statements were made after the joint bank account deposit was made. In Pence, supra, p 204, the Supreme Court stated:
The record discloses that the testimony of the disinterested witness which appellant claims was inadmissible showed statements made by the deceased to this witness not in the presence of the defendant, both before and after the deceased had made the joint bank account deposits here in question. The trial court received this testimony for the purpose of showing the decedent’s intentions and state of mind at the time the joint bank accounts were created, to rebut the statutory presumption. Said witness testified that the deceased, in discussing his bank accounts with her, made reference to his intention to leave his property to his sister Mary. To the extent that this testimony purported to disclose statements allegedly made by the deceased not in the presence of the defendant, after the joint bank deposits were made, and decedent’s statements made at that time referring to his will and his intentions in disposing of his property thereunder, the testimony of this witness was not admissible to show his intentions with reference to the deposits at the time they were made. On the other hand, much of the testimony adduced from this witness was admissible. It was proper to show the decedent’s intentions and arrangements prior to his making the joint bank accounts, to rebut the presumption of joint ownership between the deceased and the defendant. Mitts v Williams, [319 Mich 417; 29 NW2d 841 (1947)]. [Emphasis in original. See also Serkaian v Ozar, 49 Mich App 20, 23-24; 211 NW2d 237 (1973).]
In view of the inadmissibility of Gutenkunst’s testimony, there was nothing to suggest that Cullmann did not intend Jedd to acquire title to the jointly held bank accounts upon the death of Cullmann. Accordingly, we conclude that, as a joint owner of the accounts funded by Cullmann, Jedd— had she not withdrawn the funds in question prior to Cullmann’s death — would have been vested with title to the accounts as a survivor of Cullmann. Although, technically, Jedd withdrew the funds prior to becoming a survivor of Cullmann, there is nothing in the record to suggest that she did so for fraudulent, coercive or improper reasons. It would be inequitable, therefore, to require her to pay the withdrawn funds to Cullmann’s estate. To so require, we believe, would clearly violate the abiding and unequivocal intent of Julianna Cullmann. To so require, we believe, would plainly dishonor the unambiguous desire of the deceased.
We therefore reverse the decision of the probate court directing Jedd to turn over to the estate of Julianna Cullmann the proceeds Jedd obtained approximately one month before Cullmann’s death from the bank accounts funded by Cullmann and held jointly by Cullmann and Jedd.
Reversed.
Theodore Cullmann, the personal representative of the estate of Julianna Cullmann, in his "petition on objections to appeal bond,” dated April 1, 1987, and filed in the probate court, stated that the amount in controversy in this case is "approximately $14,000.00.”
The full text of the joint ownership statute provides:
When a deposit shall be made, in any bank by any person in the name of such depositor or any other person, and in form to be paid to either or the survivor of them, such deposits thereupon and any additions thereto, made by either of such persons, upon the making thereof, shall become the property of such persons as joint tenants, and the same together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to either during the lifetime of both, or to the survivor after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof.
When a deposit has been made, or shall hereafter be made, in any banking institution transacting business in this state, in the names of 2 or more persons, payable to either or the survivor or survivors, such deposit or any part thereof or any interest or dividend thereon and any additions thereto, made by any 1 of the said persons, shall become the property of such persons as joint tenants, and the same shall be held for the exclusive use of the persons so named and may be paid to any 1 of said persons during the lifetime of said persons or to the survivor or survivors after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof.
The making of the deposit in such form shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding, to which either such banking institution or surviving depositor or depositors is a party, of the intention of such depositors to vest title to such deposit and the additions thereto in such survivor or survivors. [Emphasis added. MCL 487.703; MSA 23.303.] | [
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Per Curiam.
The only question properly raised on the record is whether where a person holds a note against another which from lapse of time is not supposed to remain in force, a payment of money^ not intended or supposed by the parties to be made on the note can be applied on it so as to revive it and thus remove the bar of the statute of limitations. We think the proposition is absurd.
The judgment must be affirmed with costs. | [
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Campbell, C. J.
Plaintiff in error was sued by defendants in error as endorsees of a promissory note given to Warren S. Hale and transferred by him to them. The defense is that the consideration for the note was the sale of certain logs, which Hale warranted to hold out to a specified quantity and quality of each of the several kinds sold, including cherry, ash, basswood, walnut, butternut, maple, beech and elm; and that the lumber did not hold out as warranted, and that plaintiffs below were not such holders as to be discharged from that defense.
On the trial evidence was introduced tending to make out this defense, and showing that beyond the note Bichards assumed payment of certain expenses of cutting the logs. It was shown that there was a deficiency in quantity of several kinds of logs, and that some were worthless. The deficiency shown was such as amounted to $1630.63.
There was also evidence of partial payments to Hale, and that the note was not transferred before due for valuable consideration without notice. The recovery was for $1862.38, disregarding the special defense.
The lumber was all sawed by the latter part of July, 1874, and the shortage discovered after the shipping measurements completed in November, 1874. Bichards, who was a witness, stated on cross-examination that between September, 1874, and April, 1875, and since tbe note became due, be bad conversations with Fuller in wbicb be promised to make payments or turn out property on tbe note. On re-direct examination be said be made these promises under advice of attorneys that be bad no defense, but that afterwards be was advised bis defense was good, and refused thereafter to pay, and that when be made some of tbe promises, supposing be bad no remedy, be stated to Fuller that tbe logs fell short and be ought not to pay.
There was a conflict of testimony upon several important points.
Tbe errors complained of all relate to tbe charges given by tbe court, wbicb it is claimed were unauthorized and misleading.
Tbe right of tbe defendant below to rely on tbe warranty was affirmed by this court reversing a judgment on a former trial, and tbe case is reported in 37 Mich., 161.
Upon tbe subject of tbe warranty, wbicb tbe court held must be made out by Eicbards, tbe circuit judge went into a very extended discussion upon tbe probabilities, and tbe question whether it was likely Hale would have made a warranty under tbe circumstances. Among other things this languge was used: “The value of tbe logs on tbe average is claimed by tbe defendant to be about $10 I believe. If there was 470,-.000 feet, if that was tbe understanding, then tbe value of tbe logs transferred would be about $4700. Hale gets $2500 for bis claim, upon this theory, and it is a question for you whether Hale would be likely, in disposing of bis interest in $4700 worth of logs for $2500 —whether be would be likely to assume a liability by way of warranty for tbe amount of the logs to tbe extent of $4700 when be was selling only bis claim for $2500.” He also commented on variances between Eicbards’ testimony and tbe pleadings on tbe question of quality.
It is shown that Hale’s interest in tbe property sold for what it was estimated to be worth subject to other burdens, and if the testimony of warranty is true it was sold on the agreement as well as representation that the lumber would hold out as represented. As the balance of the interest in the property was subject to the claims of other parties, and as in paying $2500 to Hale, the real consideration was very much larger, and as in case of any serious deficiency Hale was getting just so much more than he would otherwise have received, it seems to us that this presentation to the jury was very misleading. It was all the more so by the statement of the average of ten dollars a thousand which would make out a very large apparent sacrifice for which we find no basis in the record. By the way in which the case was laid before the jury they might easily and naturally be led to imagine that Hale was incurring a liability of $4700 for $2500, when in fact, according to the defendant’s testimony and claim (which the court could not properly ignore) his only liability was to make good so much of $2500 as the interest he sold for that sum fell short of what he represented it to be.
The court also put the case to the jury, under the subject of the consideration for the dealings between Hale and the plaintiffs below, upon a theory which authorized them to assume the note had been given by Hale to them as security for a debt of about $7000, due on his own account. There is no such proof reported in the record. His liability was only that of an endorser.
The judge also charged the jury that the promises of payment and payments made by Mr. Bichards to the plaintiffs below without making any complaint of breach of warranty had “a strong tendency to show that there was no warranty made, and that if made there was no shortage.” And in this connection he referred to the decision of this court in Deuel v. Higgins, 9 Mich., 223, as a precedent for a similar doctrine. He quoted the facts of that case and explained the inference drawn by this court from those facts, that no warranty existed there.
Richards swore that he did make ■ complaints, and the court in commenting upon his explanation referred to some facts shown on a former trial in regard to the advice of a certain attorney which so far as we can see were not before the jury as evidence. He then said that the jury should give the explanation such weight as under all the circumstances it deserves, “ and if you are able to reconcile the negotiations which he made in reference to the payment of the note after he knew all about the shortage in the lumber, without making a complaint for breach of warranty, with the fact that the warranty was made in the first place, and that there was a shortage, of course you should recognize it.”
While it is not error in a legal sense for a court to point out the important testimony so as to lead the jury to an understanding of its bearings, and while in doing this, more or less comments may be unavoidable and not improper, it seems to us that the charge in this case went far enough to intimate very strongly to the jury that there was either no warranty or no shortage, and that Richards had sworn falsely.
Moreover it was, we think, erroneous to attempt to instruct the jury — as was. done here — what inference should be drawn from the conduct of Richards, as to ■the non-existence of a warranty. When in connection with the strong language-of the judge himself .reference was made to a decision of this court upon a question of fact, the jury could not avoid the conclusion that they were expected to conform to it, and draw similar conclusions.
It is hardly necessary to say that decisions of fact can never be lawfully treated as precedents for juries to follow. Apart from the impossibility of putting them into the same position concerning the evidence with the court ’ deciding the cause, it would be a violation of the fundamental principles of jury trials to enforce upon them or to allow them to receive in evidence the opinions of any one else, even upon facts precisely analogous. They would violate their duty by abdicating their chief function of drawing their own conclusions from testimony, and it is error to permit them to act on such a notion.
We do not deem it necessary to refer to other exceptions to the charge, inasmuch as they all relate to such comments and instructions as are supposed to fall under the same mischief. Whatever view might be taken of isolated expressions mentioned or not mentioned, we think the charge as a whole doés not remove the impression which appears to us derivable from the record that the judge was not sufficiently careful to abstain from such language as would be fairly construed by any jury as practically directing- them in such a way as was not permissible.
Judgment reversed and new trial,
The other Justices concurred. | [
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Cooley, J.
The action in this case was upon a policy of insurance issued to one Graves and assigned by him after a loss to Montague, the plaintiff below. The plaintiff recovered judgment and the case is before us on error.
It appeared on the trial that Graves did not pay the premium when he received his policy, but was allowed a credit by the agent who transacted the business. The defendant insisted that the delivery of the policy before the premium was paid was unwarranted; there being evidence that the agent had no authority to give credit.' It was shown, however, that the agent accounted 'to the insurers for the premium, and we think it was too late afterwards to make any objection to the credit. When the agent had accounted to the principal, .the latter was no longer concerned with the dealings between the agent and the insured.
The property insured included an organ. The evidence showed that this organ was purchased by Graves on credit, and that by the contract of purchase the title was not to pass from the vendor until the price was fully paid. When the fire occurred only about one-half the amount had been paid, and this was less by $20 or $25 than the sum for which the organ was insured. By one of the conditions of the policy the insured was required to state whether any other person had an interest in the insured property, and if so, what was its nature; and it was declared that “ any neglect to comply with these provisions, or any misrepresentation or concealment or fraud, or false swearing in any statement Or affidavit in relation to loss or damage shall forfeit all claim upon the company by virtue of this policy, and shall be a full bar to all remedies upon the same.” The defendant offered to show that the vendor had brought suit for the purchase price of the organ, and had recovered judgment, but the court excluded the evidence, but then, as if it were in, instructed the jury that in view of this fact Graves “had an insurable interest in the organ.” This instruction was probably correct, but it fails to meet the difficulty in the case. The defendant requested the court to instruct the jury that the insurance upon the organ, under the facts in proof, was void; but this was refused. The request did not raise the question of an insurable interest; the insured may have had that, and yet, because of his concealment of facts, failed to obtain a valid insurance. And we do not perceive that the objection of the defendant on this branch of the case is in any manner met by the charge of the court. The unquestioned facts were that Graves, having, so far as the facts in proof would show, only an equitable claim upon the organ to the extent of half its value, procured an insurance upon it as owner for a sum in excess of his interest, and without disclosing the interest of the party who, by the understanding with him, was to retain the legal ownership. "We think this failure to state the facts is fatal to this portion of the insurance. Kibbe v. Hamilton Fire Ins. Co., 11 Gray, 163; Clay F. & M. Ins. Co. v. Huron S. & L. Co., 31 Mich., 346.
A still more palpable error was committed on another branch of the case. A quantity of silver ware was covered by the policy, which proved to belong, not to the insured but to his wife. In respect to this the plaintiff claimed to recover on a showing that, when the policy was drawn, Graves disclosed to the agent the real facts. The argument was that, as the company, through its agent, had knowledge of all the facts, and still granted the policy, the issuing of the policy was-a waiver of all objection on that score. This view was accepted by the court, and the jury was instructed accordingly. If the instruction was correct, it is manifest that any person may obtain insurance upon property without any right in it whatsoever; he has but to disclose the facts, and the policy, though only a wager policy, will be as legal as any other. But such a doctrine is at war with the fundamental principles of insurance, which require that a person shall have an insurable interest before he can insure: a policy issued when there is no such interest is void, and it is immaterial that it is taken in good faith and with full knowledge. The policy of the law does not admit of such insurance, however willing the parties may be to enter into it. The doctrine of waiver has obviously nothing to do with such a case. The agent cannot do for the company -by waiver what the company is powerless by express contract to do for itself: he cannot by waiver invest the insured with an interest he does not own. There was occasion to consider this question in Peoria M. & F. Ins. Co. v. Hall, 12 Mich., 202, and it was there held that an insurance of partnership property by one partner in his own name could not be made to embrace the interest of'the other partner, notwithstanding 'it was written by the agent with full knowledge of the facts. The reason is the- one above assigned: it is not competent to write an insurance where an insurable interest is wanting, whether the facts are known or not. The difficulty is inherent in the case, and is beyond the reach of waiver.
It is proper to say in this connection that under our statute the husband has no control whatever over his wife’s property; so that the question arises here precisely as it would had the silver been owned by a stranger.
A question is made in the record concerning the proof by the plaintiff of the loss of a library which was covered by the policy, but as this is not likely to be important on a new trial, we pass it by.
■ The judgment must be reversed with costs and a new trial ordered.
The other Justices concurred. | [
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Graves, J.
This bill was filed to enjoin the defendant corporation from removing from lots 1 and 2 of block 246 in the city of Lansing an engine, boiler, saw-mill and incident machinery, and the court below decreed for complainant. The main facts are as follows: September 27th, 1873, J. Condit Smith conveyed the premises to Dayton G. Canfield for the consideration of $4,500. Can-field paid $1,000 down and gave back a mortgage on the premises for $3,500, which was duly recorded. September 14, 1874, J. Condit Smith assigned the mortgage to Samuel B. Smith, and two days later Samuel B. Smith assigned it to Coleman in trust for Alice D. Smith. Some time after his purchase, and therefore subsequent to the mortgage, Dayton G. Canfield erected a saw-mill building on the premises, and some time before September 19, 1874, went into partnership with his son Yolney R. Can-field, the style of the firm being “ D. G. Canfield & Co.” And at the date last mentioned the defendant, a' Pennsylvania corporation doing business at Erie, sold to this firm the engine and other property in question. The price was $3,175 and the sale absolute. Nothing was paid down or agreed to be so paid. Neither was any security asked or given upon the articles. The firm notes were passed and nothing more. The delivery was made by different shipments beginning in November, 1874, and ending in January 1875, and on the arrival of the property it was put up in the before-mentioned building and substantially and firmly connected therewith. There was no stipulation between the corporation and “D. G. Can-field & Co.” that the property must be set up on the lots in Lansing or on any other specific site, and the agreement contained nothing to preclude the firm from making any disposition of the property they could have made if not indebted for it. The transaction as admitted in the record was the ordinary one of unconditional sale and without any qualifying incidents. November 5th, 1875, the entire purchase money of the machinery so purchased of defendant became due; and on the 11th of the same month, the money having become due likewise thereon the September previous, the complainant filed his bill to foreclose the mortgage. December 9th, 1875, the defendant filed a claim of lien and served a copy of the claim on the firm of D. G. Canfield & Son. February 14, 1876, petition to enforce the lien was filed; Canfield & Co. answered March 6, thereafter, and on the 26th of the next December the court entered a decree adjudging a lien on the machinery and directing a sale. There is no evidence of any kind of notice to complainant. Meanwhile and on June 15, 1876, the court decreed foreclosure of the mortgage and ordered sale after November 20, 1876. February 6, 1877, the sheriff sold the machinery under the lien law proceedings to defendant for $2,000. After the decree was entered in these proceedings and about J anuary 13, 1877, D. G. Canfield agreed in the firm name with defendant upon an arrangement. February 12, 1877, this arrangement was reduced to writing as though executed by the firm. It provided that in consideration of the surrender of the firm notes and the acquittance of all claim on account of the purchase of the machinery, the firm assumed to release and assign to the defendant corporation whatever right and interest the firm might have in such machinery, and also to license the corporation to enter on the mortgaged premises and take down, sever and remove all said machinery. . The record is blind in regard to the date and order of some of the events, and in respect to the constituents of some of the proceedings, but this is not very important now. It appears that about the time of this agree ment, and as may be inferred, on or about January 18, 1877, and before the agreement was reduced to writing, the defendant by its agents proceeded to make entry with the design of taking out the property and removing it to Pennsylvania; that February 7th, 1877, complainant filed this bill; that after defendant had removed certain articles, complainant and said Dayton G. Canfield took possession, caused the removed property to be replaced, and leased it to E. Bement & Sons. It is also expressly admitted in the record that since the filing of the present bill the premises as described in the mortgage held by complainant have been sold to him under the decree of foreclosure before mentioned for $3,000, leaving a balance of about $1,600 unpaid and that the mortgagor, said Dayton G. Canfield, is insolvent.
The counsel for defendant do not contend very strenuously that any title can be asserted under the proceedings to institute and enforce a lien,' and this court is of opinion that no such right can be maintained. The court in entertaining and carrying on the proceedings instituted by the corporation against the Canfields was not in the exercise of its general or ordinary jurisdiction or exerting its constitutional powers in any analogous way. It was pursuing a new path and applying methods unknown to the common law and unknown to the course of equity tribunals. The jurisdiction which was assumed is not only statutory, but very eccentric, and the proceeding is not entitled to be aided by the presumption which the law indulges in favor of ordinary suits in equity in courts of general jurisdiction. Platt v. Stewart, 10 Mich., 260; Galpin v. Page, 18 Wall., 350; Windsor v. McVeigh, 93 U. S., 274. The proceeding may be impeached collaterally and the facts admitted do impeach it. Stout v. Sawyer, 37 Mich., 313. The subject matter did not constitute a ease within the statute. The conditions for a lien did not exist and there was nothing to which the special jurisdiction could attach. Moreover it would seem that no notice, actual or constructive, was given to complainant, and it is not admitted that he would have been bound if the proceedings had been right in other respects. Windsor v. McVeigh, supra; Buck v. Sherman, 2 Doug. (Mich.), 176; Greiner v. Klein, 28 Mich., 12-17; Mitchell v. Smith, 53 N. Y., 413; Cooley’s Const. Lim., 403; Comp. L., § 6794. Whether in case a lien had been constituted it could have prevailed against this prior mortgage, and if so, in what way and through what remedial expedients, need not be considered. It could not be efficacious and subsist without timely and proper proceedings for its judicial assertion and enforcement.
Some further difficulties suggest themselves in this part of the case, but they require no notice.
The other principal question is whether complainant as mortgagee, or (which as to the present matter is the same thing) as owner and holder of the mortgage, is entitled to insist as against any right the defendant can assert under the assignment to it made in the name of the firm after default on the mortgage and after the .decree of foreclosure, that the articles in question were reduced to realty under and subject to the mortgage and caused to be inseparable and irremovable against his objection. The question must be thus restricted because the title of the defendant can have no other basis than the assignment mentioned.
The ground of lien as we have seen is untenable, and the corporation in selling originally to the Canfields agreed for no terms or conditions which on any theory could be urged as implying that the property should remain or be treated as personalty as to any one. As before stated, the transaction was the common one of absolute sale and without condition or reserve.
The property thus obtained of the defendant, it is admitted in .the record, “was placed in the building erected on the mortgaged land for that purpose by D. G. Canfield & Co., the boiler being erected in a brick arch, the engine being fastened on timbers let into the ground, which rest upon a foundation of masonry, the mill being directly over the engine, fastened by bolts or screws to the framework of the building, and connected with the engine by belts and chains.”
That all the articles were of such a nature as to be capable of being affixed as permanent additions is not denied, and there can be no question but that the mode and degree of annexation were sufficient to put an end to their character as chattels and make them part of' the land. Murray v. Moross, 27 Mich., 203; O’Brien v. Kusterer, id., 289; McAuliffe v. Mann, 37 Mich., 539; Fisher v. Dixon, 12 Clk. & Fin., 312; Holland v. Hodgson, L. R. 7 C. P., 328: 2 Eng., 655; Snedeker v. Warring, 2 Ker., 170; Potter v. Cromwell, 40 N. Y., 287; Voorhees v. McGinnis, 48 id., 278; Winslow v. Merchants’ Ins. Co., 4 Met., 306; Richardson v. Copeland, 6 Gray, 536; Bliss v. Whitney, 9 Allen, 114; Despatch Line of Packets v. Bellamy Man. Co., 12 N. H., 205; Teaff v. Hewitt, 1 Ohio St., 511. It is here proper to recall some of the circumstances. It is not the Canfields who are contending that the articles are removable and are insisting upon the right to detach them and take them away against the objection of complainant as mortgagee; neither is it the corporation in its character of original, vendor to the Canfields; but it is the corporation in its-character of assignee and licensee of its former vendees, the Canfields, under a quit-claim and license induced by the indebtedness for the purchase price, — an assignment, and license made in the name ■ of D. G. Canfield & Co. long after the dissolution of the firm, and long after the abandonment by Yolney E. Canfield of all interest and all claim.
The fact that the corporation was originally vendor and received no pay cannot alter the state of the present question. As proprietor it could if it chose make-sale and pass the title without pay and without any condition or reserve, and the Canfields could buy without paying and receive the title without qualification. ' And in fact such was the mode of dealing by both parties. The Canfields then became as absolute owners as though they had paid the purchase price in full; and as such owners it was of course in their power to devote or subject the chattels to complainant’s mortgage by annexing them to the land without any reserve express or implied. They did annex them.
Now because it so happens the corporation originally sold them to the Canfields and got no pay and made no conditions, and now holds the quit-claim and license made in- their name, the law cannot therefore step in and raise conditions competent to preserve to the property the character of chattels and enable the corporation to detach, and remove them. The contrary view would lead- to very extensive and very absurd results. Land structures would be everywhere subject 'to be torn to pieces to satisfy the sellers of the materials.
Whatever right the corporation possesses, it is as assignee and licensee under the arrangement D. G. Can-field* made with it in the firm name in the winter of 1877, and as to the question under consideration, the corporation can be in no better position than the Can-fields held at that time. What then as to this question was the situation of the Canfields?
The evidence shows that although the land was conveyed to D. G. Canfield and he made the securities back, still that an understanding existed between him and his son that the latter should have an equal interest in .the land, the building and machinery, and that he actually paid some seven hundred or eight hundred dollars towards the purchase price of the land.
Under these circumstances a mill building was erected, and the machinery procured. The whole was connected together to form a mill. There seems to have been no arrangement suggested or thought of for regarding any of the things placed on the land as distinet from the land or separable from it in any contingency whatever.' The Canfields contemplated that the land and all that was put upon it should be held and enjoyed equally, and did not contemplate the machinery as subject to a distinct ownership. No distinction was made between land and building, or between either of them and the machinery, and no one seems to imagine that the building can be regarded as a chattel. In fine, the whole proof, actual and presumptive, conduces to show that both the Can-fields designed that the building and machinery should be combined- with the land to form- one property, and in their ownership.
All the criteria of annexation sufficient to forbid- interference against the objection of a mortgagee appear to be furnished by the case, and nothing seems to be adduced in derogation.
The counsel for the corporation has cited Crippen v. Morrison, 13 Mich., 23, as in some way favoring the defense; but the application is not perceived. There the claimant never suffered the chattels from the beginning to lose their original character. That was constantly kept intact by positive agreement, and the other party had good notice of it.
Cope v. Romeyne, 4 McLean, 384, was also referred to as a strong authority on the same side. The report has some gross misprint, but it is easily understood. Mortgagors being in possession took out an engine and sold it. The buyer purchased in good faith and without notice, and the mortgagees sueing him in trover the court decided that the action could not be maintained, and in so ruling it was expressly .stated that if it were admittéd that the engine was a fixture and not severable, it could not affect' the right of the purchaser. The case cannot aid the defense.
It was further claimed that Dayton G. Canfield held the title to the land and building whilst the machinery was purchased by D. G. Canfield & Co., and that this distinction between the ownership of the land and of the chattel property brought the case within Adams v. Lee, 31 Mich., 440, and determined that the chattels could not be held as part of the realty.
This position rejects the facts showing the equitable interest of Volney R. Canfield when the chattels were connected with the land, and admits only the state of the title as at law.
It must not, however, be forgotten that Yolney’s equal interest in the land and building (though equitable only), and his expectation in regard to future ownership and use as owner, must have weighed with him in the matter of having the chattels connected with the land and building as one property; and it is not only competent but needful to recognize the existence of this equitable interest with the other facts in order to judge properly respecting his concurrence in the annexation and his intent therein.
But the legal title and the relation of the parties as the same are here stated do not show any thing repugnant to the coalition of the chattels and land as one real property, whether we refer to Adams v. Lee or any other well considered case.
•If we regard the elder Canfield as exclusive owner of the land there is no authority for saying his son could not unite with him in adding fixtures which would pass under his father’s deed and be bound by his father’s prior mortgage. ■ And the facts are certainly opposed, to the.no'tion that he did not mean that the machinery should be so annexed.
It may be further noticed that long before D. G. Canfield made the release to defendant, Volney R. had entirely abandoned all interest and all claim, and at that 'time there was in fact but one interest. This ease is wholly unlike’ Adams v. Lee. There the contending parties respectively owned undivided interests of given extent in the land and at the same time undivided interests of different extent in the personalty. A deed' by one of his share of the land would not apply to and carry his actual interest in the articles connected with it. The line of ¡right constituting the boundary between the interests in !the naked land would not form the boundary between the ¡interests in the things attached. The nature and quality of the holdings necessarily impressed upon the machinery as between the co-holders the character of personalty, notwithstanding its connection with- the land. According to some authorities of very high character, had it been mutually agreed expressly between the Canfields that the machinery should continue to be chattels and nothing inconsistent with that understanding had occurred thereafter, still its attachment to the realty in the manner observed here would , have made it subject to the mortgage and irremovable against the objection of complainant. Hunt v. Bay State Iron Company, 97 Mass., 279; Thompson v. Vinton, 121 Mass., 139. This, however, is a very extreme view and is hardly compatible with the tenor of our own previous decisions. It seems to overlook or ignore one test, and frequently the most important test, namely, the intent of the party making the annexation. Teaff v. Hewitt; Potter v. Cromwell and Voorhees v. McGinnis, supra.
Judged by the most lenient rule for preserving to annexed chattels their original character of personalty as against the mortgagee, and yet the machinery in controversy here cannot be treated as personalty against the objection of complainant; and the ground of proceeding appears to be plain. Comp. L., § 6369; Brady v. Waldron, 2 Johns. Ch., 148; Robinson v. Preswick, 3 Edw. Ch., 246; Spear v. Cutter, 5 Barb., 486; Johnson v. White, 11 Barb., 194; Salmon v. Clagett, 3 Bland, 126-180; Phœnix v. Clark, 2 Halst. Ch., 447; King v. Smith, 2 Hare, 239; Capner v. President and Directors of Flemington Mining Co., 2 Green’s Ch., 467; Cooper v. Davis, 15 Conn., 556; McRea v. C. N. Bank, 66 N. Y., 490.
In Van Pelt v. McGraw, 4 Coms., 110, a decree to sell had been obtained, and whilst the notice of sale was in course of publication, McGraw, who had purchased the equity of redemption, proceeded to remove rails and timber. The sale under the decree produced a good deal less than the amount the mortgage called for, and the court of appeals sustained a common law action in favor of Yan Pelt, the owner of the mortgage, against McGraw for the waste.
Considering all the circumstances, the result ascertained is reached with some degree of reluctance. But the facts ■ would seem to admit of' no other conclusion without overturning settled principles and causing uncertainty and confusion.
The decree below should be affirmed with costs.
The other Justices concurred. | [
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Cooley, J.
The bill of complaint in this cause was filed by Charles W. Wright, Charles H. Southwick, William G. Gustine, Darwin P. Cody and Charles E. Oiney against William Hake and William T. Merritt, setting forth the following state of facts:
That on the 24th day of November, 1874, the defendant Hake had-in his possession certain personal property, which was taken from him by a writ of replevin at the suit of defendant Merritt; that the complainants became sureties for Merritt in the replevin suit; that Hake defended the suit, and the same was tried April 2, 1875, and verdict rendered therein for the plaintiff; that afterwards the verdict was set aside and a new trial ordered; that still later and on or about the thirteenth day of February, 1876, Flake and Merritt entered into an agreement in writing, by the terms whereof Merritt agreed to abandon his suit and allow Hake to take judgment therein, in consideration of the sum of one hundred dollars, which was duly paid; that this was done fraudulently to cheat the complainants; that no arrangement was made between Hake and Merritt for the return of the property replevied, but the same was left in the hands and under the control of Merritt, who was and is irresponsible and insolvent; that in pursuance of said agreement Merritt did withdraw and abandon his defense, which coming to the knowledge of complainants, they endeavored to defend, but unsuccessfully, and Hake elected to take judgment for the value of the property, and did take judgment for $1200 and costs taxed at $88.75; that complainants had no notice or knowledge of said agreement for the abandonment of said suit, and did not know of its existence, until the fact was brought out in the evidence on the trial; that Hake has taken out execution on his judgment, which has been returned unsatisfied, and that since its return he has brought suit on the replevin bond, which was assigned by the sheriff to him for the purpose. And the bill prays that th,e suit on said bond be perpetually enjoined.
The answer of Hake gave the following version of the facts: that on or about the first day of November, 1874, Studley Palmer sold to him, Hake, a chattel mortgage which had been given by Merritt to Palmer upon the goods mentioned in the bill of complaint for the sum of $1600; that Merritt made default in the payment of the mortgage, and Hake took possession of the goods; that a few days thereafter Merritt replevied the goods, claiming that a part of the consideration given for the mortgage was intoxicating liquors, and that the mortgage was therefore void; that afterwards, in January, 1876, Merritt called on Hake, and stated that when the goods were transferred to him by Palmer, it was done for the purpose of keeping them away from Palmer’s creditors, and that he, Merritt, had no interest in the goods except in a quantity of about the value of one hundred dollars; that any other interest in the replevin suit belonged to Palmer, who had procured the sureties to sign the bond and given them security for so doing, and that if Hake would pay him one hundred dollars he would say nothing more about the suit; that defendant did pay him the one hundred dollars, and afterwards when the case was called for trial the counsel for Merritt stated that he had not his witnesses ready, as he had no interest in the suit, and he. asked to have the trial postponed for two weeks, which was done by the court; that on the adjourned day when the cause was called the counsel for Merritt came in and stated he was ready for trial, whereupon the trial proceeded with the result stated in the bill. The answer denied all fraud, and claimed the benefit of a demurrer.
On the issue made by the answer the case 'went to a hearing. The agreement between Merritt and Hake was proved, and it was embodied in the paper given- in the margin. It was shown that Merritt was irresponsible when the agreement was made, and that Hake was aware of the fact. It also appeared that knowledge of the arrangement between Hake and Merritt was not brought to the knowledge of the sureties, and that it came out on the second trial of the replevin suit, while the' coun sel for the plaintiff in the abse'nce of his client, was examining Hake as a witness, and endeavoring to make out a case. It is evident from Hake’s testimony that knowledge of the writing was purposely concealed from the sureties. The case of complainant seems therefore to be made out on the facts, and it only remains to see whether it constitutes a case for relief, and if so, whether a defense is established.
It was proved that the sureties in the replevin bond took a chattel mortgage given by Merritt and Palmer on the goods replevied to secure them against liability, but it also appeared that the goods were left in the hands of the mortgagors, and that the security never become available to the complainants. Defendants, therefore, have no equities growing out of the giving of that mortgage. It also appeared that the agreement between Hake and Merritt was not made use of by Hake in any manner on the trial of the replevin suit, and it is therefore urged by defendants that complainants were not injured thereby, especially as counsel for Merritt actually appeared and went on with the case. It is true this fact is shown, but the evidence is abundant that the counsel was abandoned by his client because of the agreement with Hake, and that he was left powerless to prosecute the suit to effect. The sureties made some little effort to obtain a continuance of the case, but Merritt refused to assist, and his bad faith in the transaction is manifest. And it is equally manifest that had the complainants been prepared to prosecute the suit with vigor, and had they attempted to do so, they might at any moment have been interrupted and defeated in their efforts by the production of the secret agreement of Hake with Merritt. The sureties were not only abandoned, but in respect to the efforts they were permitted to make for their own protection effectual steps were taken to render it impossible that the efforts should succeed. The suggestion that this conduct did not injure the sureties manifestly has no force whatever.
But the defendants insist that the sureties in the replevin bond, by the express terms of their obligation took upon themselves the risks of such an arrangement between the parties, and are not at liberty to complain of it. To do full justice to the position assumed by counsel on this branch of the case, we quote from his brief.
“The relations of Hake, defendant in replevin and prospective assignee of the replevin bond given to the sheriff by Merritt, plaintiff, and sureties, were not such as to make it inequitable and unjust to the sureties for him to defend himself by buying his peace and inducing the plaintiff to abandon to the sureties the further prosecution of the replevin suit.
“ The condition of the bond, which runs to the sheriff, was that Merritt should ‘ prosecute the cause to effect, and if the defendant recover judgment against him, that * * * he will pay such sums as the defendant may recover against him.’ The defendant is expected to use all legal means, to the end that the plaintiff does not prosecute to effect his suit. Says Campbell, J., in Reusch v. Demass, 84 Mich., 76, ‘every one must be subject to the incidents of the litigation where he assumed the risks of litigation.’ One of these ‘incidents’ is an agreement between the plaintiff and defendant, that tire latter might have a judgment for the value of the property.
“There is no possible friendly obligation between Hake and these sureties, but active and open hostility. They aid to seize his property, and put their bond in its place. He pursues with all diligence. They aid and abet the resistance to this pursuit, by one whom they must have known had only a naked nominal interest; because they take a lien on this property from its nominal and equitable owner, and at the request of the latter they have intervened in the quarrel. They allow this property, with their lien thereon to furnish the sinews of war as long as it lasts. As secured sureties they were the real plaintiffs.”
There would be reason and justice in what is here said if the complainants, as sureties, had been permitted to appropriate the replevied property to their own use, and had actually done so; but such is not shown to have been the fact. And the doctrine that where the sureties have acted in good faith to their principal he may lawfully enter into a secret agreement with the adversary party permitting him to take a judgment which shall conclude the sureties, is in our opinion sound neither in morals nor in law. It is not one of the customary and lawful “incidents” of litigation that the interests-of sureties shall thus be secretly bartered away by the party who is legally and morally bound to protect them.
Sureties are undoubtedly concluded by the judgment against their principal when it has been obtained in the customary manner and in the course of regular proceedings. Williams v. Vail, 9 Mich., 162; Lothrop v. Southworth, 5 Mich., 436; Hershler v. Reynolds, 22 Iowa, 152. But this supposes an open and fair pursuit of legal remedies, and when by fraud or collusion with the principal the obligee obtains an advantage of which he seeks to avail himself upon the bond, the sureties may justly say “this is not the obligation into which we entered. We abide the consequences of the open and public undertaking to which we set our hands, but not of the secret arrangement to. which our consent was never invited.” It has been held that to refer a replevin suit to arbitration without the knowledge and consent of the surety, discharged him; Pirkins v. Rudolph, 36 Ill., 306; Archer v. Hale, 4 Bing., 464. Still more certainly should this result follow when the secret arrangement which is entered into would not even admit of an available hearing anywhere. Such was the case here; the arrangement made was equivalent to secret confession of judgment, and if binding as between the parties to it, would have made any subsequent hearing a farce.
It is suggested in the brief for defendants that the arrangement did not bind Merritt because not signed by his attorney. It is true that only the attorneys can manage a case, but it is equally true that the attorney cannot prevent his client making a compromise or settlement. It is also urged that complainants lost their remedy in this court by moving for a third trial in a court at law, after the judgment was entered which they now complain of. There is nothing to this. It was very proper for them to get rid of the judgment in that court if they could, on any ground that was open to them.
We have only to notice further the objection taken to the remedy in equity. It is urged in defense that the equities here insisted upon were available to the parties, at law, and might have been relied upon in defense to the suit on the bond. This may be true, but it does not follow that equity could not take jurisdiction of the case. Equity has general jurisdiction in cases of fraud, and sureties have often been relieved under circumstances analogous to the present. See King v. Baldwin, 17 Johns, 384; Viele v. Hoag, 24 Vt., 46, 51.
The decree, which adjudged the complainants discharged from their obligation, must b.e affirmed with costs.
The other Justices concurred.
William T. Mebbitt
v.
William Hake.
In this ease it is agreed and stipulated that the defendant may take judgment against the plaintiff, and that the value of the property taken by said plaintiff from the said defendant under and by the writ of replevin in this cause was at the time of being so taken twelve hundred dollars. January 21, 1876.
$1200. William T. Merritt, Plaintiff.
William Hake, Defendant. ,. | [
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J. H. Gillis, J.
Five actions were brought by plaintiff to recover 1960 personal property taxes paid defendants under protest. They were consolidated for disposition in the trial court and remain consolidated on appeal.
The personal property in question consisted of machinery, equipment, tools and inventory in plaintiff’s possession on tax day, December 31, 1959. It was used by plaintiff, as a defense contractor, in making goods and performing services for the federal government. Tax liability was imposed on plaintiff “as the person in possession subject to the prior right of the Federal Government.” Plaintiff’s protest was based on its contention that the personal property was owned by the federal government and was therefore tax exempt.
In answer to plaintiff’s complaint, defendants admitted government ownership of the machinery and, equipment. In light of the holding in General Motors Corporation v. City of Detroit (1964), 372 Mich 234, partial summary judgments in plaintiff’s favor were entered, without objection, ordering refunds of the personal property taxes paid by plaintiff on the machinery and equipment. Thereafter a refund of the taxes paid on the remaining tools and inventory was also ordered by summary judgment. It is solely from the latter disposition that defendants appeal.
Plaintiff’s motion for summary judgment on the tools and inventory was premised on the alleged absence of any genuine issue of material fact. Defendants objected to the motion, alleging issues of material fact as to whether the tools and inventory were government-owned. While conceding the exempt status of tools furnished directly to plaintiff by the government, defendants denied government ownership of certain tools purchased from independent tool manufacturers or built by plaintiff in its tool shop. In support thereof, defendants submitted an “affidavit of merits” by Omer Du Chene, head accountant in the personal property division of the Board of Assessors of the City of Detroit. In the affidavit, Mr. Du Chene averred “[t]hat on the basis of the course of conduct of the plaintiff and the Government, there were dealings with this personal property which was inconsistent with the claim of absolute title in the Government.” To illustrate the course of conduct, however, the affiant merely set forth certain provisions of some of the defense contracts relating to risk of loss, reversion of title, unrestricted control of scrap, right to acquire or dispose of property and insurable interest. Prom these the affiant concluded “that it is a material issue of fact whether the remaining tooling-purchased from tool manufacturers or built in plaintiff’s tool shop and the inventory of materials, supplies and parts were owned by the Government on December 31, 1959.” As pointed out in plaintiff’s brief, however, “The contract provisions are not disputed. Only their interpretation and effect on the issue of ownership are in question.”
After pointing out defendant’s failure to raise any genuine issue of material fact regarding- the ownership of the machinery and equipment, the trial court concluded that defendant’s concession with respect to the exempt status of such property must necessarily have been based on their legal interpretation of the title-vesting provisions of the defense contracts between plaintiff and the federal government. The trial court stated further:
■ “It is-enigmatic to this court why they concede that the contractual provisions alone governed the disposition of the question of the machinery and equipment ownership, yet they deny now that the same contractual provisions govern the question of ownership of the remaining items of tangible personal property. It is also of some importance to note that in simply denying plaintiff’s remaining allegations relative to the other personal property claimed by plaintiff to be government-owned, the defendants fail to set forth in substance the matters on which they rely to support such denials. Neither do they plead lack of knowledge or information sufficient to form a belief as to the truth of the averments. (See GrCR 1963, 111.4 and 111.5.) It is likewise important to note that defendants in over six years have made no effort to depose any witness on this issue and have rejected both plaintiff’s offer to cooperate and the court’s willingness to afford them this opportunity.”
As for the allegation of a meritorious question of fact contained in defendants’ affidavit of merits, the trial court viewed it as a mere conclusion of the affiant, framed around a legal interpretation of the title-vesting provisions of the defense contracts. Similarly, defendants’ denial of plaintiff’s allegation of government ownership was deemed to be nothing more than a conclusion derived from their interpretation of the title-vesting provisions of the defense contracts. Therefore, the trial court concluded, “Analyzing this case as cautiously as possible, the only issue to be finally determined is a legal one— the construction of the defense contracts. It is the opinion of this court that the propriety of plaintiffs’ motion for a summary judgment is well-founded.”
Defendants contend that the trial court overlooked the contested issue of ownership of the tools and inventory and failed to observe the distinction between machinery and equipment on the one hand and tooling and inventory on the other. Defendants maintain that their failure to object to the entry of partial summary judgments with respect to the machinery and equipment was prompted by General Motors, supra, which held in favor of the complaining taxpayer with respect to machinery and equipment admittedly owned by the government. There, according to defendants, is the distinction. They contrast General Motors, wherein the ownership of the machinery and equipment was allegedly not in issue, with the present case, wherein they allege that the central issue is whether the federal government was the owner of the tools and inventory. They conclude, therefore, that “There was no basis for comparing [defendants’] position with respect to tooling and inventory with an assumed concession in the case of machinery and equipment.”
What we are faced with, therefore, is a syllogism. Defendants contend that they acceded to the entry of partial summary judgments as to machinery and equipment because of the holding in General Motors, supra. The major premise, therefore, is the holding in that case, i.e., all government-owned machinery and equipment are exempt from personal property taxation. Based on the major premise, defendants concluded that the machinery and equipment in this case was tax exempt.
A silent minor premise must, therefore, have intervened between the major premise and the conclusion ; i.e., that the machinery and equipment was government-owned. Focusing on this silent minor premise, the next relevant inquiry is into the manner in which defendants reached the conclusion that the machinery and equipment was government-owned. In response to this question, the trial court stated, “It is of particular significance to also point out the defendants’ concessions in this area must necessarily have been based solely on their legal interpretation of the contractual provisions.” They raised no issue as to any question of fact.
This conclusion by the trial court recognized that the determination of ownership of the personal property being used by plaintiff in performance of. its defense contracts was provided for in the contracts themselves. Absent any offer of proof giving rise to issues of fact, questions of contracts interpretation, being legal in nature, could properly be disposed of by summary judgment. ■ •
The same reasoning was applied to the question of ownership of the remaining tools and inventory. Again, defendants offered no proof giving rise to any issues of material fact. Their affidavit of merits opposing plaintiff’s motion for summary judgment proffered no more than the conclusion of the affiant that a question of fact existed. “Such responses cannot be said to fall within GCR 1963,116.4, governing the content of affidavits and its requirement that ‘supporting and opposing affidavits shall be made on personal knowledge and shall set forth with particularity such facts as would be admissible as evidence to establish or deny the grounds stated in the pleading or motion.’ (Emphasis supplied).”
Dionne v. Pierson Contracting Company (1965), 2 Mich App 134, 138. The trial court was correct in ruling that defendants’ general denials, supported solely by the affidavit of merits, were insufficient to bar the entry of summary judgment. GCR 1963, 117.3; Dionne v. Pierson Contracting Company, supra. Looking next to the title-vesting provisions of the various defense contracts, the trial court ruled that “[e]ach one of these provisions when read in their entirety * * * clearly indicates that the ownership of the machinery, equipment, tooling and inventory and all other facilities needed by plaintiff to carry out the provisions of the contract originally vested in and continually remained at all times in the United States Government.” As for defendant’s contention in its affidavit of merits that certain other contract provisions were inconsistent with government ownership, the trial court stated that “[w]hen these provisions are read in the context of the remaining provisions of the contract, it is impossible for this court to agree. Standing alone they could just as well be provisions of any contract of bailment or lease which would in no way affect or constitute incidents of ownership.”
In addition, the trial court pointed out that “the government maintained constant surveillance over its property and the services being performed. All government property was identified and segregated. The government administrative contracting officer maintained offices at Burroughs; resident inspectors and staff were permanently located at one of Burroughs’ plants as were resident auditors and staff, together with a resident property officer and technical representative.”
The trial court thus concluded that the tooling and inventory taxed by defendants “was the property of the United States Government and that the ' United States Government and not the plaintiff was the real owner thereof.”
The trial court’s ruling was clearly correct. The construction and interpretation of defense contracts and the determination whether their provisions are sufficient to vest absolute title or ownership in the federal government is a matter of federal law. United States v. County of Allegheny (1944), 322 US 174 (64 S Ct 908, 88 L Ed 1209). Title-vesting provisions in defense contracts of the type with Which we are concerned were interpreted in United States v. County of Allegheny, supra, and United States v. Ansonia Brass and Copper Co. (1910), 218 US 452 (31 S Ct 49, 54 L Ed 1107). These cases held that title to work in progress and tooling in the possession of the contractor legally vested in the government and that this title was absolute and not a lien or security interest.
Notwithstanding government ownership of the tooling and inventory, defendants further contend that the taxes were properly levied for two reasons; (1), that the incidence of the tax as applied fell on plaintiff as “beneficial” owner and not on the government and (2), that no governmental immunity was violated because the taxes imposed did not retard, impede, burden or interfere in any way with the properties, agencies'or instrumentalities of the government.
Defendants’ authority to levy these taxes was based on the general property tax act and title 6, eh. 2, § 7 of the charter of Detroit. However, the Detroit city charter “does not and could not confer taxing powers beyond those authorized by constitution and statute.” General Motors, supra, at 238.
In City of Detroit v. Murray Corporation of America (1958), 355 US 489 (78 S Ct 458, 2 L Ed 441), reh den 357 US 913 (78 S Ct 1145, 2 L Ed 2d 1164), the Supreme Court of the United States held that the general property tax act authorized a tax upon the right to use another’s tax-exempt personal property. This construction was rejected, however, by the Michigan Supreme Court in Continental Motors Corporation v. Township of MusIcegon (1961), 265 Mich 191, 194, 195:
“Ours is the primary duty to construe acts of the Michigan legislature, to determine the extent and the scope of their application. When a State court of last resort authoritatively construes a State statute, Federal courts, including the supreme court, are bound by that construction. * * * We are unable to adopt the supreme court’s construction in Murray of our general property tax act as it then related to personal property because there was then no specific statutory authorization for imposition of a tax upon the right to use another’s tax exempt personal property * * *
The rejection of Murray in Continental was reiterated in General Motors. While Murray does establish that a tax could validly be levied on the privilege of using or possessing government property, it was made clear in the second Continental case (Continental Motors Corporation v. Township of Muskegon [1965], 376 Mich 170), that additional appropriate legislation would be required.
Defendant’s contention that the tax should be upheld as a tax upon plaintiff’s “beneficial ownership” of the tooling and inventory is without merit. “We reject the contention * * * on the ground that onr law, before the 1959 amendment, authorized only an ordinary ad valorem tax on tangible personal property without providing for the taxation of intangible interests in such property.” Continental, supra, 365 Mich 191, 200.
“Defendants’ discussions of where the legal incidence, as distinguished from economic burden, of the tax falls, and whether it represents an assessment in personam or in rem, while of possible value in a consideration of the question of implied constitutional immunity from State taxation of the Federal government, its agencies and property, are not decisive of the applicability of Continental. * * *
“This Court held therein (p 199) that * * * ‘our law authorized only in ad valorem tax on the personal property itself without providing for taxation of possessory interests.’ If the tax is on a possessory interest, it is invalid under Continental.
“On the other hand, if, as defendants urge, the tax is on the entire interest in the personal property, it is a tax on personal property of the United States, which is immune therefrom.” General Motors, supra, pp 237, 238.
In conclusion, we concur in plaintiff’s characterization that “we are involved in nothing more than the relitigation of matters long since decided adversely to appellants.”
Affirmed. No costs, a public question being involved.
All concurred.
The contracts were of three types: Fixed Price Progress Payment Contracts (FPPP); Cost Pins Fixed Fee Contracts (CPFF) and Facilities Contracts. The relevant provisions of the respective contracts are as follows:
FPPP Contract
■ "(d) Title
“When any progress payment is made under this contract, title to all parts; materials; inventories; work in process; special tooling * * * ; non-durable * * * tools, jigs, dies, fixtures, molds, patterns, taps, gauges, test equipment and other similar manufacturing aids * * * ; theretofore acquired or produced by the Contractor * * * shall forthwith vest in the Government; and title to all like property thereafter acquired or produced by the Contractor * * * shall forthwith vest in the Government upon said acquisition, production or allocation.”
CPFF Contract
“(b) Title to all property furnished by the Government shall remain in the Government. Title to all property purchased by.the Contractor, for the cost of which the Contractor is entitled to be reimbursed * * * shall pass to and vest in the Government upon delivery of such property by the vendor. Title to other property, the cost of which is reimbursable to the Contractor under this contract, shall pass to and vest in the Government upon (i) issuance for use of sueh property in the performance of this contract, or (ii) commencement of processing or use of sueh property in the performance of this contract, or (iii) reimbursement of the cost thereof by the Government * * * whichever first occurs.”
Facilities Contract
“3. Title to all property purchased by the Contractor for resale to the Government, for the cost of which the Contractor is entitled to be reimbursed * * * shall pass to and vest in the Government upon delivery of sueh property by the vendor. Title to all property manufactured by the Contractor, for sale to the Government, for the cost of which the Contractor is entitled to be reimbursed * * * shall pass to and vest in the Government upon delivery of such property by the Contractor. Title to all property furnished by the Government shall remain in the Government.”
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Per Curiam.
Defendant was convicted of carrying a dangerous weapon in a motor vehicle contrary to MCLA § 750.227 (Stat Ann 1962 Rev § 28-.424).
Defendant was a passenger in an automobile driven by John H. Merryweather. The car first came to the attention of the police officers because of its failure to have its lights on. When the police officer flicked the lights to inform Merryweather that his lights were out, Merryweather made a sharp turn and proceeded in the wrong direction on a one-way street. The police officers pursued the car and after several violations pulled the Merry-weather car over to the curb for reckless driving. One of the police officers noticed the defendant bend over in an action that appeared to the police officer to indicate that the defendant was hiding an object under the seat. Merryweather was 35 years of age and his two passengers were 18 years of age. The police officers searched the car looking for alcoholic beverages as they thought the minors might be in possession of alcoholic beverages, but discovered a knife and a .22 calibre rifle reconstructed in such a fashion that it could be used as a pistol. Later, bullets were found on the person of the defendant. Defendant moved in the trial court to suppress the evidence seized as fruits of an unlawful search and seizure.
On appeal defendant claims that Const 1963, art 1, § 11 violates US Const, Am 4. Const 1963, art 1, § 11 reads:
' “The person, houses, papers and possessions of every person shall be secure from unreasonable searches and seizures. No warrant to search any place or to seize any person or things shall issue without describing them, nor without probable cause, supported by oath or affirmation. The provisions of this section shall not be construed to bar from evidence in any criminal proceeding any narcotic drug, firearm, bomb, explosive or any other dangerous weapon, seised by a peace officer outside the curtilage of any dwelling house in this state.” (Emphasis supplied.)
This Court has already ruled that the provision of the Michigan Constitution of 1963 does not conflict with Amendment 4 of the United States Constitution. People v. Van Landingham (1967), 6 Mich App 128.
Affirmed. | [
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G. S. Allen, J.
This matter of first impression involves petitioner’s personal liability to pay unpaid use taxes owed by the St. Clair Rubber Company, a corporation of which petitioner was the sole owner, chairman of the board of directors and treasurer. The assessments, issued against petitioner on July 27, 1984, cover the three-year tax period from July 1, 1978, through June 30, 1981. The amount involved is $9,053.18 in taxes and $3,161.22 in interest, for a total of $12,214.40.
On December 10, 1981, the Michigan Department of Treasury issued a notice of intent to assess St. Clair Rubber Company for use taxes for the taxable period July 1, 1978, through June 30, 1981. The corporation timely appealed the assessment to a treasury hearing referee, who on July 12, 1982, determined a deficiency against St. Clair for the period in question. When St. Clair did not appeal the referee’s decision, the Department of Treasury issued notices of final assessment against Seabourn S. Livingstone and Gordon H. Wood, individually.
Both assessed officers of the corporation challenged the assessments on grounds that they were not personally liable for unpaid use taxes of the corporation. A hearing on the challenge was held before the Michigan Tax Tribunal in October, 1985, at which Livingstone stated that during the period at issue he was the sole owner, chairman of the board of directors, and treasurer of the corporation. Wood testified that he had no active part in the running of the day-to-day operations of the corporation, that although he was the secretary who kept the minutes all of them signed by him were prepared by other persons, and that he had no authority to direct the payment of taxes. Livingstone and Wood also claimed the assessment against them was barred by the statute of limitations.
On September 23, 1986, the Tax Tribunal issued its opinion and judgment cancelling the assessment against Wood and affirming the assessment against Livingstone. As to the statute of limitations, the tribunal found:
Because the corporate officer’s liability for the overdue tax is derivative in nature, the corporate officer is bound by the oscitancy of the corporation. Petitioners, therefore cannot raise the statute of limitations bar and exemption claim, nor challenge the method of computation once the assessment is final. The position of primary or secondary debtor has no affect on the right of the Petitioners to challenge the makeup of the assessment. The finality of the assessment is the factor which establishes a bar to such a challenge.
In support of this finding, the tribunal relied on Metro GMC Truck Center, Inc v Dep’t of Treasury, 4 MTTR 54 (Docket No. 74377, September 6, 1985), and Rowland v Collins, 48 Ohio St 2d 311; 358 NE2d 582 (1976). From this judgment, Livingstone appeals as of right.
On appeal petitioner does not contest the tribunal’s finding that he was a corporate officer "having control, or supervision of, or charged with the responsibility” for filing the required tax returns. Instead, petitioner raises the defense that, since the only deficiency assessed against him was on July 27, 1984, the four-year statutory period of limitations protects him against any corporate tax deficiency occurring prior to July 27, 1980. According to petitioner, the statute of limitations is a defense which is personal to the officer, is distinct and separate from the statute of limitations which the corporation may raise, and any holding to the contrary would unfairly expose corporate officers to tax liability claims in perpetuity. Stated another way, petitioner claims that the deficiency notice and assessments timely issued against St. Clair on December 10, 1981, do not toll the period of limitations with respect to petitioner.
The respondent argues that, because petitioner’s liability is strictly derivative, the controlling date is not the date of assessment on petitioner on July 27, 1984, but is the date of assessment against St. Clair on December 10, 1981, and, since issuance of a notice of intent to assess tolls the period of limitations pending final determination of the tax, MCL 205.100(4); MSA 7.555(10)(4), St. Clair, and in turn Livingstone, are assessable for all use taxes due and unpaid since December 10, 1977.
Neither Metro GMC Truck Center, Inc, nor Rowland, supra, relied upon by the tribunal as authority for finding Livingstone liable for St. Clair’s unpaid taxes, addressed the statute of limitations as a defense. Thus, the issue raised in the instant case is of first impression.
By statute, once an assessment for unpaid taxes against a corporation becomes final and the corporation fails to remit the taxes due, any of the corporation’s officers having control, supervision of, or charged with the responsibility for making the tax returns shall become personally liable.
If a corporation licensed under this act fails for any reason to file the required returns or to pay the tax due, any of its officers having control, or supervision of, or charged with the responsibility for making the returns and payments shall be personally liable for the failure. [MCL 205.96(3); MSA 7.555(6X3).]
When issuing the initial assessment respondent does not have the election to first assess the corporate officer. Under § 6(3), the corporate officer is assessed if a corporation fails to file the required returns or to pay the tax due. If respondent were to assess the corporate officer first, the officer could properly defend on grounds that the liability was incurred by the corporation. The officer’s liability arises after the corporation fails to pay the tax due. It is the corporation which is primarily liable, the corporate officer’s liability is secondary. Thus, petitioner’s liability for the unpaid corporate tax is not, as claimed by petitioner, separate and distinct from the assessment against the corporation.
Having decided that the responsible corporate officer’s liability is not separate and distinct from that of the corporation, it necessarily follows that the corporate officer may not raise a separate and distinct period of limitations as a defense. To hold otherwise would convert that which is derivative into that which is nonderivative. The flaw in petitioner’s argument is the assumption that unless a corporate officer may raise as a defense the period of limitations commencing with the date the officer is personally assessed for the corporate liability the officer will be exposed to stale claims and denied due process of law. However, the formal notice to Livingstone on July 27, 1984, was not the first notice to him that unpaid taxes were due. While it well may have been the first notice to corporate officer H. Gordon Wood, it certainly was not, or should not have been, the first notice to Livingstone. Under the statute, only officers "having control, or supervision of, or charged with the responsibility” for filing the required tax returns are made derivatively liable. Thus, the statute itself provides due process protection from stale claims. Separate notice of an unfiled return or an unpaid tax is not required when the officer by his responsible corporate position already knows, or should know, that the tax has not been paid.
Our conclusion that the officer may only raise the defenses available to the corporation is reinforced by this Court’s decision when the responsible corporate officer found liable by the Tax Tribunal in Metro GMC Truck Center, Inc, supra, appealed to this Court. Keith v Dep’t of Treasury, 165 Mich App 105; 418 NW2d 691 (1987). On appeal, Keith, the former vice-president, secretary and general sales manager of the corporation, argued, inter alia, that he had not received proper notice of the final assessment of unpaid taxes against the corporation. This Court held:
Keith’s liability for Metro’s unpaid sales tax liability arises as a result of Metro’s failure to file the required tax return or to pay the tax due. MCL 205.65(2); MSA 7.536(2). A corporate officer’s tax liability under the statute is clearly derivative in nature. Furthermore, because only those corporate officers who are responsible for the preparing of sales tax returns and the payment of taxes may be held personally liable for the corporation’s unpaid tax liability and such an officer should be privy to the information contained in the notice of final assessment issued to the corporation, it follows that proper notice to the corporation can be reasonably expected to reach the corporate officers. A reasonable corporate officer who receives notice of a tax assessment against a corporation would be expected to pursue any contest of the amount of the assessment on behalf of the corporation. If a corporate officer fails to contest the tax on behalf of the corporation, it does not violate due process to thereafter deny the corporate officer the right to contest the amount of the tax when he is personally assessed for the tax. It would be incongruous to find that a corporation’s sales tax liability is final as to the corporation, and yet allow a responsible corporate officer to contest individually the amount of the sales tax liability. [Keith, supra, p 110.]
Although the issue in Keith concerned notice rather than the period of limitations, this Court’s reasoning belies petitioner’s claim that he would be exposed to stale claims if he were denied the defense of a separate period of limitations. Here, as in Keith, the corporation’s failure to contest the amount of the assessment within the statutory period, MCL 205.22; MSA 7.657(22), resulted in the assessment’s becoming final upon the expiration of the appeal period. So too, it would be incongruous to find that the corporation’s use tax liability is final as to the corporation, and yet permit a responsible corporate officer to contest the amount of the use tax liability, individually.
Affirmed. No costs, a question of public importance being involved. | [
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P. J. Clulo, J.
Plaintiff appeals as of right a November 7, 1986, order of the Gratiot Circuit Court dismissing her paternity action brought under the Paternity Act, MCL 722.711 et seq.; MSA 25.491 et seq., on the basis of lack of standing to sue. One issue is raised on appeal: Whether the plaintiff, a legitimate, minor child, has standing to bring an action to have her parentage determined.
Plaintiff was born on October 18, 1982, to Carrie Lou (Puffpaff) Hull who at the time was married to Douglas Puffpaff. The Puffpaff’s were divorced on December 10, 1984, at which time the plaintiff was declared to be a child of the marriage. On August 26, 1986, the plaintiff filed the present action in which she sought a judicial determination that defendant Douglas Puffpaff is not her father and that defendant Garold Hibner is. The complaint was accompanied by an affidavit by defendant Hull in which she states her belief that defendant Hibner is the plaintiffs father. On October 27, 1986, a hearing was held in Gratiot Circuit Court at the close of which the judge determined that the plaintiff lacked standing to sue and dismissed the lawsuit. We affirm the lower court.
The Paternity Act provides: "A proceeding in accordance with this act shall be brought by the mother, the father, or the department of social services as provided in this act.” MCL 722.714(1); MSA 25.494(1). Under this section a legitimate or illegitimate child has no standing to bring a suit to determine paternity. See McFetridge v Chiado, 116 Mich App 528; 323 NW2d 470 (1982). The plaintiff in this case attempts to get over this hurdle and create standing by relying on the case of Spada v Pauley, 149 Mich App 196; 385 NW2d 746 (1986). That case involved a minor, illegitimate child who brought a suit for a determination of parentage as well as defendant parents’ duty of support. The Court held that it was a denial of the equal protection clause of both the United States Constitution and the Michigan Constitution to deny illegitimate children the right to bring paternity suits and support actions in their own names and that such suits should be allowed under the circuit court’s equity jurisdiction.
In reaching this conclusion, the Court looked at the Paternity Act as well as MCL 722.1; MSA 25.244(1) and MCL 722.3; MSA 25.244(3) and concluded that, taken together, the statutory scheme presented a situation where a legitimate child has a right to bring an action against his or her father to enforce the father’s support obligations but denies an illegitimate child the same right to enforce child support obligations against its father. After making its equal protection analysis, the Court found that the legislative scheme was not substantially related to a permissible state interest and that it denied the plaintiff equal protection rights guaranteed by the Michigan and United States Constitutions. Spada, supra, pp 203-205. The Court then invoked its equity jurisdiction and afforded illegitimate children a cause of action to determine parentage and child support obligations. Spada, supra, p 200.
The plaintiff in this case argues that Spada should be expanded to cover the fact situation in the present case and allow a legitimate minor to bring a paternity action to have parentage determined. We do not agree. The Spada case dealt specifically with illegitimate children and the Court’s holding in that case cannot be extended to allow a legitimate child to bring a paternity action, unless a denial of equal protection to legitimate children can be demonstrated. In reaching its conclusion, the Spada Court found that classifications based on illegitimacy are suspect and invalid under the equal protection clause of the Fourteenth Amendment unless they are substantially related to a permissible state interest. Pickett v Brown, 462 US 1; 103 S Ct 2199; 76 L Ed 2d 372 (1983).
No case has been found which finds the classification of legitimacy suspect. Therefore, the equal protection analysis will be done under the rational basis test.
If the statute affects a fundamental interest or makes an inherently suspect classification, a strict scrutiny test is appropriate and the statute will not be upheld unless the classification is justified by a compelling state interest. Absent a fundamental interest or suspect classification, the alternative test places the burden on the party challenging the statute to show that the classification is arbitrary and not reasonably or rationally related to the object of the legislation. [People v Perkins, 107 Mich App 440, 443; 309 NW2d 634 (1981), citing McAvoy v H B Sherman Co, 401 Mich 419, 452-454; 258 NW2d 414 (1977); People v Schmidt, 86 Mich App 574, 578; 272 NW2d 732 (1978).]
The failure of the Legislature to provide a right for legitimate children to bring paternity actions in their own names is substantially related to several permissible state interests. The prevention of fraudulent actions and the protection of legitimate family units are both rational reasons for the Legislature’s enacting the Paternity Act and excluding legitimate children as potential plaintiffs. Since the legislative scheme is not arbitrary and is reasonably related to the object of the legislation, there is no violation of equal protection rights, and the legislative scheme which fails to provide legitimate children the right to bring paternity actions must be upheld. In addition, our decision is not in conflict nor is it inconsistent with Spada, supra. The Court’s decision there acknowledged the right of an illegitimate child to bring a paternity action in equity because that was the only forum the child had to procure support from its father, a right not denied a legitimate child.
We agree with the lower court that plaintiff lacks standing.
Affirmed. | [
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Per Curiam.
Plaintiff appeals as of right from a December 15,1986, order granting summary disposition in favor of defendant on plaintiffs breach of contract claim.
Plaintiff, Gay Smith, is the personal representative of the estate of Stephen M. Smith, plaintiffs decedent. Plaintiff brought a wrongful death action against defendant City of Pontiac, doing business as Pontiac General Hospital, and against defendants Michael Short, M.D., and Arnold Brown, M.D. Only defendant City of Pontiac is involved in this appeal.
In her complaint plaintiff alleges that plaintiffs decedent entered into a contract with defendant’s hospital to provide medical care and treatment for plaintiffs decedent and that defendant’s hospital expressly and impliedly warranted to exercise due care in the treatment of plaintiffs decedent. There is no express written contract between plaintiffs decedent and defendant’s hospital. Plaintiff claims that defendant’s hospital violated the duty of care it owed decedent: violating its contractual duties, breaking its contract with decedent, and breaching express or implied warranties made to decedent. Plaintiffs decedent died allegedly due to conditions which went untreated due to defendant’s negligence and breach of contract.
At a hearing held December 15, 1986, defendant City of Pontiac moved for summary disposition under MCR 2.116(C)(8) and (10). Defendant argued that plaintiffs tort claims were barred by govern mental immunity, that plaintiffs contract claims were invalid due to the lack of an express written agreement, and that no implied contract actions were allowed under MCL 566.132(g); MSA 26.922(g). Plaintiff argued that, although there was no express written contract with defendant, plaintiffs decedent did agree to pay for services rendered, and that this was the basis of a contract between decedent and defendant. Plaintiff argued that MCL 566.132(g);. MSA 26.922(g) applied only to promises to cure, and that the contract between plaintiffs decedent and defendant was distinguishable because it involved a warranty to treat decedent in a skillful and nonnegligent manner.
The court found that defendant’s hospital was engaged in a governmental function, and, therefore, was immune from plaintiffs tort claims. In addition, the court found that plaintiffs contract claim was invalid because the contract was not in writing. MCL 566.132(g); MSA 26.922(g). The court granted defendant’s motion for summary disposition under MCR 2.116(C)(8) and (10), and dismissed plaintiffs claims with prejudice.
On appeal plaintiff claims that the trial court erred in dismissing her breach of contract claim. We disagree.
The Michigan statute of frauds, MCL 566.132(g); MSA 26.922(g), provides:
In the following cases, an agreement, contract or promise shall be void, unless that agreement, contract, or promise, or a note or memorandum thereof is in writing and signed by the party to be charged therewith, or by a person authorized by him:
* * *
(g) An agreement, promise, contract, or warranty of cure relating to medical care or treat ment. Nothing in this paragraph shall affect the right to sue for malpractice or negligence.
This Court has previously applied MCL 566.132(g); MSA 26.922(g) to agreements for medical care, and has not restricted the application of this statute to "warranties of cure.” Gilmore v O'Sullivan, 106 Mich App 35; 307 NW2d 695 (1981). Under the statute of frauds, an absence of a writing signed by an authorized representative of a defendant and containing the essential terms of the alleged contract is fatal to a plaintiffs contract claim against a defendant alleging medical malpractice. Stein v Southeastern Michigan Family Planning Project, Inc, 158 Mich App 702; 405 NW2d 147 (1987); Gilmore, supra.
Plaintiff’s contract claim against defendant is based upon an alleged contract to provide medical services in a nonnegligent manner. This is an agreement, promise, or contract relating to medical care or treatment and is covered under the explicit language of MCL 566.132(g); MSA 26.922(g). Plaintiff has admitted that there is no written agreement which meets the requirements of the statute of frauds. Plaintiffs contract claim is therefore barred by MCL 566.132(g); MSA 26.922(g).
Plaintiff also claims that defendant is estopped from using the statute of frauds to bar plaintiffs contract claim by the doctrine of partial performance and promissory estoppel. As plaintiff has raised these issues for the first time on appeal and we find no miscarriage of justice absent their review, we decline to address the same. Providence Hospital v National Labor Union Health & Welfare Fund, 162 Mich App 191; 412 NW2d 690 (1987); People v Juarez, 158 Mich App 66; 404 NW2d 222 (1987).
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Per Curiam.
Defendant Joy Hargrove appeals as of right from a circuit court judgment entered September 3, 1986, holding that she was ineligible to continue in office as a member of the Saginaw City Council after an unsuccessful candidacy for the Saginaw County Board of Commissioners. We affirm.
Defendant was a member of the Saginaw City Council for a four-year term beginning in November, 1983, and ending in November, 1987. In June, 1984, while still a council member, defendant became a candidate for the Saginaw County Board of Commissioners. Defendant lost the board of commissioners election held on November 6, 1984. Prior to the election, plaintiff, City of Saginaw, filed a quo warranto complaint against defendant. Plaintiff alleged that defendant was ineligible to continue on the city council due to her act of running for another public office while in office, contrary to the Saginaw City Charter, Ch 14, § 91.
No action, however, was taken on the complaint as a result of defendant’s pending action in the federál district court on the constitutionality of §91. Defendant had filed a declaratory judgment action in the federal district court in July, 1984, seeking a declaration that § 91 violated her rights under US Const, Ams I, V, and XIV.
On December 14, 1984, the federal district court upheld the constitutionality of the portion of § 91 which forbade a public officer or employee from running for another elective office while presently holding one, while ruling unconstitutional that portion of §91 which forbade a public officer or employee from participating in partisan politics. By an opinion dated December 19, 1985, the Sixth Circuit affirmed the district court’s judgment. Thus, on December 31, 1985, plaintiff renewed its effort in the circuit court to remove defendant from her city council seat.
On April 16, 1986, plaintiff filed a motion for summary disposition pursuant to MCR 2.116(C)(9) based on defendant’s failure to answer the complaint. Defendant subsequently filed an answer and a counterclaim, and raised an equal protection claim as a defense to plaintiff’s action. On May 28, 1986, plaintiff responded by filing another motion for summary disposition based on MCR 2.116(C)(8), (9) and (10).
On June 24, 1986, a hearing was held on plaintiff’s motion. By an opinion dated August 15, 1986, and an order dated September 9, 1986, the circuit court granted summary disposition in favor of plaintiff and ruled that defendant was ineligible to continue in office as a member of the Saginaw City Council. On September 8, 1986, defendant filed a motion for "new trial.” At the motion hearing held on September 22, 1986, the circuit court ruled that defendant’s motion should be treated as a motion for reconsideration, and denied the motion.
On appeal, defendant contends that the circuit court erred in granting summary disposition in favor of plaintiff based on her failure to state a valid defense. Defendant argues that there exists at least a'factual question as to whether the city selectively enforced § 91 and, thus, violated defendant’s equal protection rights. Defendant also argues that the circuit court "ignored” and refused to review her defense, and seeks a remand to the circuit court for an evidentiary hearing on her defense. Although the expiration of defendant’s elected term in November, 1987, renders this issue technically moot, we choose to review it. See Contesti v Attorney General, 164 Mich App 271, 278; 416 NW2d 410 (1987).
We have reviewed the record and find no grounds for granting the relief sought. In this case, plaintiff sought to have defendant removed from her city council seat due to her candidacy in the 1984 board of commissioners election. Plaintiff relied on § 91 as support for defendant’s removal. This provision states, in pertinent part:
No officer or employee shall be a candidate for any elective office or a member of any committee or similar organization of any political party or participate actively in partisan politics, except that a councilman may be a candidate to succeed himself.
Defendant based her selective enforcement claim on the fact that, at or around the time that defendant ran for a seat on the board of commissioners, other city officials, such as the mayor and fellow councilmembers, engaged in partisan political activities which were expressly forbidden by § 91, but that no official action to oust them from their public offices was taken by plaintiff.
More specifically, the "partisan political activities” to which defendant refers included: (1) the mayor’s status as an alternate delegate for the 1984 Democratic National Convention; (2) the may- or’s request for the use of city funds in 1984 to host a reception for presidential hopeful Jesse Jackson; (3) the mayor’s attendance at a rally in support of Jesse Jackson’s candidacy; (4) fellow city councilmember Lou Oates’ position as the local campaign chairman for Jesse Jackson; and (5) other city councilmembers’ partisan political activities, such as distributing political literature, joining political parties and attending political rallies.
However, defendant seems to have forgotten that the federal district court declared unconstitutional that portion of § 91 which forbade city officials and employees from participating in partisan politics, aside from running for an elective office. Thus, when one evaluates defendant’s "selective enforcement” claim with this in mind, it is clear that defendant is unable to support her claim with solid evidence.
Indeed, none of the complained-of partisan political activities of defendant’s fellow city officials rose to the level of running for an elective office while presently occupying another. Because none of the other city officials was similarly situated as defendant, she cannot base an equal protection claim on the city’s treatment of them as compared to the treatment she received from the city after violating the constitutional portion of §91. See Iroquois Properties v East Lansing, 160 Mich App 544, 553-554; 408 NW2d 495 (1987), lv den 429 Mich 884 (1987).
Plaintiff moved for summary disposition under both MCR 2.116(C)(9) and (10) on the issue of whether defendant’s equal protection claim constituted a valid defense. The circuit court expressly considered this defense, and the city council min utes relied on by plaintiff in support of its motion under MCR 2.116(0(10), in ruling on the motion. Defendant failed to oppose the motion with a showing that a genuine issue of material fact existed, and it is clear from the record that plaintiff was entitled to judgment as a matter of law as to defendant’s equal protection claim. We, therefore, conclude that the circuit court correctly granted summary disposition in favor of plaintiff. See MCR 2.116(0(10) and (I)(1); Weeks v Bd of Trustees, City of Detroit General Retirement System, 160 Mich App 81, 84; 408 NW2d 109 (1987), lv den 429 Mich 870 (1987); Jones v Employers Ins of Wausau, 157 Mich App 345, 349-350; 403 NW2d 130 (1987), lv den 428 Mich 899 (1987); Lenart v DAIIE, 156 Mich App 669, 674; 401 NW2d 900 (1986), lv den 428 Mich 917 (1987).
Although not specifically addressed by defendant, we also note that the circuit court did not abuse its discretion in denying defendant’s motion for reconsideration. Defendant failed to demonstrate that the parties or the court were laboring under any sort of palpable error at the time the court granted plaintiff’s motion for summary disposition. See MCR 2.119(F)(3), and Charbeneau v Wayne Co General Hospital, 158 Mich App 730, 733; 405 NW2d 151 (1987).
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Cynar, P.J.
Plaintiffs, Willie and Lois Beasley, appeal as of right from a September 5, 1986, order denying their motion for a new trial. We reverse and remand for a new trial. c
Mr. Beasley (plaintiff) testified that, on September 8, 1981, between 5:00 and 6:00 p.m., he was driving his 1965 Chevrolet van west on Six Mile Road. At the intersection of Six Mile and Wildemere, in the City of Detroit, his vehicle collided with the 1979 Eldorado driven by defendant. Defendant left the scene of the accident to take her five-year-old son to the hospital.
Plaintiff remained on the scene and told the police officers about the accident. After the acci dent, plaintiff refused medical treatment. Plaintiff stated that, although his head hurt and was throbbing and he had a bump on his head, he refused to see a doctor despite being urged by his family to do so. In fact, plaintiff went to work the following day, working the afternoon shift from 3:30 to 11:30 p.m. When he got off work, he tried to catch a bus home. Plaintiff waited thirty to forty-five minutes for a bus. No bus came. Subsequently, he walked home from the bus stop.
Two days after this accident, on September 10, 1981, plaintiff rode his daughter’s bicycle to work, a distance of over ten miles. Plaintiff worked the afternoon shift and rode the bicycle back home. During the return trip, plaintiff had a second accident at the intersection of Greenfield and Glendale Roads. He stated that he rode the bicycle to the top of the hill near the intersection and apparently blacked out. He did not remember anything about the second accident. He just recalled waking up at the hospital.
The driver of the vehicle involved in the second accident, Thomas Ledbetter, testified as to how this particular accident took place. Ledbetter stated that, while he was stopped at the "Stop” sign at the intersection of Greenfield and Glendale, plaintiff’s bicycle ran into his vehicle. Plaintiff was flung across the front hood of the truck, landing on the road. Ledbetter did not see plaintiff until the impact.
After the second accident, plaintiff was taken to Mount Carmel Mercy Hospital. Plaintiff was examined by Dr. Blaise U. Audet. X-rays were taken and they revealed that plaintiff had suffered multiple linear skull fractures. Plaintiff was admitted into the hospital.
While in the hospital, plaintiff complained of nausea, vomiting and headaches. A cat scan was ordered. The cat scan results showed that plaintiff had an epidural hematoma (blood clot) between the skull and the surface of the brain. In order to alleviate this condition, plaintiff underwent a right frontal craniotomy, surgery to evacuate the hematoma to relieve pressure to the brain. The surgery left plaintiff with a scar on his right front scalp area. For nearly one year, plaintiff showed an abnormal eeg (electroencephalogram) indicating "brain suffering.”
Following the presentation of plaintiffs’ proofs, defendant moved for a directed verdict. Defendant alleged that the plaintiffs had not met their burden by establishing the threshold for recovery under the no-fault act, MCL 500.3135; MSA 24.13135, which requires plaintiffs to show a serious impairment of body function or permanent serious disfigurement. The trial court took defendant’s motion under advisement and told defense counsel to proceed with defendant’s case.
In closing argument, plaintiffs maintained that defendant was negligent and that this negligence proximately caused plaintiff’s injuries. Plaintiffs alleged that, even if the second accident contributed to plaintiff’s injuries, the injuries were "individable” so that the jury was duty bound to find the first accident to be the cause of all of the injuries. Plaintiffs sought damages totalling $204,000.
Defendant argued that she was not negligent. Further, defendant alleged that, even if she had been negligent, plaintiff’s injuries were caused solely from the second accident. Additionally, defendant asserted that plaintiffs had failed to establish the threshold requirement for recovery under the no-fault act.
The jury reached its verdict on a special verdict form. The jury found that plaintiff had not suf fered a serious impairment of body function or permanent disfigurement. Nevertheless, the jury proceeded to award plaintiffs $40,000 in damages. The trial court accepted the verdict, interpreting it as a determination of no cause of action. Subsequently, on January 31, 1986, the trial court reconvened to rule on defendant’s directed verdict motion. After hearing argument, the court granted the motion.
Plaintiffs moved for a new trial. The trial court denied their motion on September 5, 1986. The instant appeal followed.
First, plaintiffs argue that the trial court erred by denying their motion for a new trial on the basis that the trial court clearly recognized that the jury had reached an inconsistent verdict and yet did not resubmit the case to the jury with further instructions. We agree.
It is within a trial court’s sound discretion to grant or deny a motion for new trial. Murphy v Muskegon Co, 162 Mich App 609, 616; 413 NW2d 73 (1987). Absent an abuse of such discretion, the trial court’s decision cannot be interfered with on appeal. Kailimai v The Firestone Tire & Rubber Co, 398 Mich 230; 247 NW2d 295 (1976).
After the jury finished with their deliberations, they returned the following verdict on the prepared special verdict form:
FORM OF VERDICT
We, the jury, make the following answers to the question submitted by the Court.
1. Was the Defendant negligent? Yes x No_
2. Was the Defendant’s negligence a proximate cause of an injury to the plaintiff?
Yes x No_
If you answer "No,” do not answer any further questions.
3. Did the injury which Plaintiff suffered result in permanent serious disfigurement or serious impairment of body function? Yes_No x_
If your answer is "No,” do not answer any further questions.
4. What is the total amount of Plaintiff’s damages? $40,000
5. Was the Plaintiff negligence [sic]? Yes x No_
If your answer is "No,” do not answer any further questions.
6. Was the Plaintiff’s negligence a proximate cause of injury to the Plaintiff? Yes x No_
If your answer is "No,” do not answer any further questions.
7. Using 100% as the total combined negligence which approximately [sic] caused the injury to the Plaintiff, what percentage of such negligence is attributable to the Plaintiff? 49%
Please note that the Court will reduce the total amount of Plaintiff’s damages entered in question number 4 by the percentage of negligence attributable to Plaintiff, if any, entered in question number 7. The remainder will be the amount which Plaintiff is entitled to recover.
8. What is the total amount of Mrs. Beasley’s damages? -0-
The no-fault act requires a plaintiff to establish a threshold of death, serious impairment of body function, or permanent serious disfigurement before recovery is permitted, MCL 500.3135; MSA 24.13155 . As the verdict form indicates, the jury found that plaintiffs had not established the threshold for recovery. Yet, despite the fact that the jury found no serious impairment of body function or permanent serious disfigurement, the jury proceeded to award damages.
The trial judge recognized the inconsistent nature of the verdict but he did not resubmit the case to the jury with further instructions. Instead, he accepted the verdict and interpreted it as a determination by the jury that plaintiffs had no cause of action.
Initially, we must determine whether the jury verdict was inconsistent. "[I]t is fundamental that every attempt must be made to harmonize a jury’s verdicts. Only where verdicts are so logically and legally inconsistent that they cannot be reconciled will they be set aside.” Granger v Fruehauf Corp, 429 Mich 1, 9; 412 NW2d 199 (1987).
In Harrington v Velat, 395 Mich 359, 360; 235 NW2d 357 (1975), the Supreme Court stated the following regarding inconsistent verdicts:
The trial judge in a civil case can correct a verdict which is defective or erroneous as to a mere matter of form not affecting the merits or rights of the parties so as to give effect to what the jury unmistakably found. 76 Am Jur 2d, Trial, § 1208.
However, the general rule is that where a ver diet in a civil case is inconsistent and contradictory, it will be set aside and a new trial granted.
"Ordinarily, a verdict may and should be set aside and a new trial granted where it is self-contradictory, inconsistent, or incongruous, and such relief should, as a rule, be granted where more than one verdict are [sic] returned in the same action and they are inconsistent and irreconcilable.” 66 CJS, New Trial, § 66, pp 197-198.
In this case, the jury found plaintiffs total damages to be $40,000 after finding plaintiff did not suffer injury resulting in permanent serious disfigurement or serious impairment of body function. In order to reconcile the verdict, one needs to assume either that the jury did not understand the threshold requirement under the no-fault act or that they erred in completing the form. We conclude that this verdict was inconsistent.
The proper remedy to correct a defective verdict is to either reinstruct the jury or order a new trial. Farm Bureau Mutual Ins Co v Sears, Roebuck & Co, 99 Mich App 763, 766; 298 NW2d 634 (1980). In this case, the trial judge, although recognizing the inconsistent nature of this verdict, refused to further instruct the jury to deliberate or grant a new trial. Although we favor the Granger, supra, policy that a jury’s verdict should be harmonized, in this case, it is too difficult to ascertain the intention of the jury in rendering this verdict. Therefore, we order a new trial.
In addition, the trial court erred in granting defendant’s directed verdict motion once the jury rendered its verdict. Although the court deemed this a directed verdict, procedurally speaking, the court essentially issued a judgment notwithstanding the verdict, as provided for in MCR 2.610. However, in Farm Bureau, supra, this Court noted that judgment notwithstanding the verdict is im proper when the trial court is faced with an inconsistent verdict.
However, had the trial court granted the directed verdict motion at the close of plaintiffs’ proofs, it would nonetheless have been error. In reviewing a trial court’s denial of a motion for a directed verdict, we view the evidence in the light most favorable to the nonmoving party and determine whether a prima facie case was established. If there were material issues of fact upon which reasonable minds could differ, they were properly admitted to the jury. Hall v Citizens Ins Co of America, 141 Mich App 676, 682; 368 NW2d 250 (1985).
In DiFranco v Pickard, 427 Mich 32, 38-39; 398 NW2d 896 (1986), the Supreme Court stated that the threshold issue under the no-fault act must be submitted to the trier of fact whenever the evidence would cause reasonable minds to differ on whether plaintiffs injuries were a serious impairment of body function, even if there is no material factual dispute as to the nature and extent of plaintiffs injuries.
In this case, there was a material factual dispute regarding whether plaintiffs epidural hematoma and linear skull fractures were as a result of the first or second accident. More importantly, however, the central dispute at trial was whether these injuries constituted a serious impairment of body function or a permanent serious disfigurement. Therefore, the trial court’s grant of defendant’s directed verdict motion was erroneous.
Thirdly, plaintiffs argue that it was error to provide the jury with a copy of the police report describing the first accident since it had not been received into evidence. We agree.
In Eley v Turner, 155 Mich App 195; 399 NW2d 28 (1986), the deliberating jury was provided with a copy of the defendant’s driving record, which had been ruled inadmissible at trial. In Eley, this Court reaffirmed the proposition that submitting to the jury documents not admitted into evidence does not constitute error requiring reversal unless the error operated to substantially prejudice the party’s case. See People v Allen, 94 Mich App 539, 543-544; 228 NW2d 451 (1980), lv den 411 Mich 1044 (1981), and People v Jones, 128 Mich App 335; 340 NW2d 302 (1983).
In this case, we find that plaintiffs were substantially prejudiced by submission of the police report to the jury especially since it had not been properly admitted into evidence. Plaintiffs’ counsel was not afforded an opportunity to question the factual conclusions on the report. The jury’s determination that plaintiff was forty-nine percent negligent was probably affected by the notation on the report showing that plaintiff was assessed a hazardous action number and that plaintiff’s van left forty feet of skid marks. Thus, a new trial is warranted.
Finally, plaintiffs claim that it was error to instruct the jury to consider plaintiff’s comparative negligence with respect to accident two since a settlement had been reached in that case. Defendant claims that it was proper for the jury to consider plaintiff’s comparative negligence in accident number two since plaintiffs argued that the injuries sustained in the second accident were indivisible from the injuries in the first accident.
In Esparza v Horn Machinery Co, 160 Mich App 630, 638; 408 NW2d 404 (1987), lv den 428 Mich 919 (1987), this Court stated that it is perfectly proper for a defendant in a negligence case to present evidence and argue that liability for an accident lies elsewhere, even on a nonparty. Thus, in this case, it was proper for the jury to consider whether accident number two was the sole cause of plaintiffs injuries or a partial cause.
However, we conclude that it was error to instruct the jury to reduce the damage award by plaintiffs comparative negligence in accident number two since the instruction was confusing. Although instructing the jury to reduce the damage award at one point, the trial court also instructed the jury not to concern itself with reduction of the damage award from accident number two.
Although there is no case law directly on point, the discussion, in part, in Rittenhouse v Erhart, 424 Mich 166, 187, n 11; 380 NW2d 440 (1985), applies here by analogy:
The dissent interprets the instruction "[u]sing 100 percent as the total combined negligence which proximately caused the injury or damage to the plaintiff’ to mean that the jury considered plaintiffs comparative fault in respect to all tortfeasors, whether present at trial or not. In Mayhew, supra, where the nonsettling defendant was seeking to apportion fault to a settling tortfeasor, we said:
"[N]umerous difficulties would be presented if we were to allow the jury to apportion damages among all tortfeasors, including a settling non-party. It would mean that the settling tortfeasor’s liability would be assessed without anyone adequately representing that interest. It would put the plaintiff in a unique trial situation. The plaintiff would not only have to advocate that he was not at fault, he would have to convince the jury that the non-party was only minimally at fault. Otherwise, there might be too great a percentage of fault attributed to the non-party, thus reducing the plaintiffs recovery.” 414 Mich 412.
If as we said in Mayhew, it would be difficult for the plaintiff to try to defend against the relative fault of a nonparty defendant, how, indeed can we expect the plaintiff in this situation to defend against his contributory negligence vis-á-vis non-party defendants. If the instructional reference to "total combined negligence” was interpreted to include the negligence of nonparty tortfeasors, it would be left to the plaintiff and defendant to argue the relative negligence of the nonparty tortfeasors, notwithstanding the "numerous difficulties” alluded to in Mayhew.
We note that in Rittenhouse, supra, and Mayhew v Berrien Co Rd Comm, 414 Mich 399; 326 NW2d 366 (1982), the causes of action arose out of a single event, unlike in our case. However, we conclude that, in this case, the trial court’s instructions were erroneous because they were confusing since they advised the jury to reduce the damage award by a percentage of plaintiff’s negligence (if any) from the second accident. At the same time, the court instructed the jury not to concern itself with reducing the damage award since the court would take care of that matter. We believe that these instructions left the jury in a state of confusion as to their proper role in determining the effect of the second accident with respect to the damage award.
Reversed. | [
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M. J. Kelly, P.J.
Plaintiff and intervening plaintiff are inmates of the State Prison of Southern Michigan. They sought a declaratory judgment on the issue of their institutional classification as homosexual predators. Such a classification restricts plaintiffs from medium or minimum security facilities and limits plaintiffs to close security facilities.
After determining that there was little factual support for this classification for either plaintiff or intervening plaintiff, the trial court, on October 15, 1986, and March 3, 1987, respectively, granted both plaintiffs’ motions for summary disposition and ordered that the homosexual predator designation in the prison records be expunged.
Plaintiff Robert Bentley originally sought a declaratory ruling from the Department of Corrections pursuant to MCL 24.263; MSA 3.560(163). Plaintiff was motivated by the determination of the department that he should be transferred from a medium security complex to a higher security complex because his prison record indicated that he was a homosexual predator. This determination was in accord with a Department of Corrections Policy Directive, PD-DWA-34.01, which states in pertinent part:
Homosexuals shall only be housed individually in rooms or cells with locking capabilities. Prisoners with a history of predatory homosexual behavior while institutionalized shall not be placed in medium or minimum security facilities.
The only response to plaintiff’s request for a declaratory ruling was a February 11, 1986, letter from the assistant director of the Department of Corrections which informed plaintiff that his request for a declaratory ruling had been received on January 29, 1986, and, if plaintiff did not receive a ruling within thirty days of the request, plaintiff should consider it denied.
Consequently, since defendant failed to respond to plaintiffs request, plaintiff brought the instant action for declaratory judgment. At the hearing on plaintiff’s motion for summary disposition on this claim on October 15, 1986, the trial court stated and defense counsel responded:
Bentley says he never sexually assaulted anybody. He had a simple assault in a common jail setting sixteen years ago and he’s had no misconduct relating to assault, and they’ve got him labeled as a homosexual predator. Now, if there are some other facts that would relate to that question, obviously that would be pertinent and I guess that’s what I’m kind of interested in. Do you have the information?
Mr. Donahue: I do not have the information to refute that at this point, Your Honor.
Evidently, the basis for defendant’s classification of plaintiff as a homosexual predator originated from information contained in a Presentence Investigation Report of January 16, 1980. The report followed plaintiff’s conviction for delivery of cocaine, MCL 333.7401(1); MSA 14.15(7401)(1).
Under the heading in the report entitled Previous Criminal Record, the following information was included:
Prison records indicate that while the respondent was in the Saginaw County Jail awaiting sentencing in 1970, there were five different complaints made against the respondent and a group of Saginaw County Jail inmates for forcing other prisoners to perform unnatural sex acts upon them plus it was noted that the respondent was a participant in a riot in the Saginaw County Jail.
On the record before us, we cannot determine whether plaintff lodged any objection to this state ment in the Presentence Investigation Report at the time of his sentencing on the cocaine conviction.
As to intervening plaintiff, Jack Kiser, the trial court found that his claims were based on substantially the same questions of law and facts. Kiser had also previously requested a declaratory ruling from the department concerning his classification as a homosexual predator and his consequent restriction to close security pursuant to the policy directive previously quoted.
Because the department failed to present any evidence in support of the classifications at the hearing on the motions for summary disposition and simply relied on the affirmative defense in its pleading (that the trial court lacked jurisdiction), the trial court granted plaintiffs’ motions for summary disposition pursuant to MCR 2.116(C)(9) and (10). This action granted plaintiffs’ petitions for declaratory relief. The trial court concluded that, since the department had shown no basis for labeling plaintiff Bentley a homosexual predator, that classification must be deleted from his file. The trial court made essentially the same ruling for the intervening plaintiff; however, expungement of the classification in Kiser’s record was delayed. The order granting Kiser’s motion for summary disposition was granted March 3, 1987.
Defendant’s first argument on appeal is that the trial court lacked jursidiction. Defendant relies on the Administrative Procedures Act (apa) and contends that, since the classification of plaintiffs as homosexual predators was pursuant to a policy directive, the trial court lacked jurisdiction to afford plaintiffs declaratory judgment relief. Defendant’s argument rests on its assertion that, since the policy directive under which plaintiffs were classified was neither a statute, rule or order, it does not constitute a proper basis for declaratory judgment relief.
Defendant here, the Department of Corrections, is an administrative agency subject to the provisions of the apa, MCL 24.201 et seq.; MSA 3.560(101) et seq. Martin v Dep’t of Corrections, 424 Mich 553; 384 NW2d 392 (1986). Relying on §63 of the act, both plaintiff and intervening plaintiff requested a declaratory ruling from the Department of Corrections that, according to departmental policy directives, neither one was a homosexual predator and that they were eligible for placement at either a medium or minimum security facility.
Plaintiffs relied on that part of §63 that provides:
On request of an interested person, an agency may issue a declaratory ruling as to the applicability to an actual state of facts of a statute administered by the agency or of a rule or order of the agency. [MCL 24.263; MSA 3.560(163).]
Once an agency that falls under the provisions of the apa receives a request for a declaratory ruling it has three available options: grant the request and issue a declaratory ruling, deny the request, or ignore the request (fail to act).
When the agency denies a request or fails to act, relief in the form of a declaratory judgment action in circuit court may be available. Section 64 of the act provides:
Unless an exclusive procedure or remedy is provided by a statute governing the agency, the validity or applicability of a rule may be determined in an action for declaratory judgment when the court finds that the rule or its threatened application interferes with or impairs, or immi nently threatens to interfere with or impair, the legal rights or privileges of the plaintiff. The action shall be filed in the circuit court of the county where the plaintiff resides or has his principal place of business in this state or in the circuit court for Ingham county. The agency shall be made a party to the action. An action for declaratory judgment may not be commenced under this section unless the plaintiff has first requested the agency for a declaratory ruling and the agency has denied the request or failed to act upon it expeditiously. This section shall not be construed to prohibit the determination of the validity or applicability of the rule in any other action or proceeding in which its invalidity or inapplicability is asserted. [MCL 24.264; MSA 3.560(164).]
Plaintiffs rely on §64’s authority for their declaratory judgment action. Defendant counters by contending that since the subject matter that plaintiffs seek a declaratory judgment on is the application of their facts to a policy directive, and not a rule, reliance on § 64 is inapposite.
Although one of the three ways of obtaining a declaratory ruling from an agency is in questioning the application of a rule, the only way to obtain a declaratory judgment is to question the validity or applicability of a rule. Human Rights Party v Michigan Corrections Comm, 76 Mich App 204; 256 NW2d 439 (1977), lv den 402 Mich 906 (1978). See also Berry v Dep’t of Corrections, 117 Mich App 494; 324 NW2d 65 (1982). For purposes of §64, only those agency statements formally promulgated in accordance with the act’s rulemaking procedures are construed as rules: "[W]hat is essential to a valid . . . Michigan 'rule’ is: a reasonable exercise of legislatively delegated power, pursuant to proper procedure.” Michigan Farm Bureau v Bureau of Workmen’s Compensation, 408 Mich 141, 150; 289 NW2d 699 (1980).
Therefore, in order for plaintiffs to have maintained their action for declaratory judgment pursuant to §64, it was incumbent upon them to challenge the applicability of an agency rule, not the policy directive at issue here. See Monfils, Declaratory Relief under the Administrative Procedures Act, 63 MSB J 1035 (1984).
Despite the fact that plaintiffs were foreclosed from pursuing relief in the form of a declaratory judgment pursuant to §64 of the act, plaintiffs were not left without a remedy. Plaintiffs should have sought an appeal to the circuit court from the agency’s refusal to act on their requests for declaratory rulings. Section 63 provides that a declaratory ruling is subject to judicial review in the same manner as an agency’s final decision or order in a contested case. MCL 24.263; MSA 3.560(163). However, the scope of this avenue of relief is more limited:
(1) Except when a statute or the constitution provides for a different scope of review, the court shall hold unlawful and set aside a decision or order of an agency if substantial rights of the petitioner have been prejudiced because the decision or order is any of the following:
(a) In violation of the constitution or a statute.
(b) In excess of the statutory authority or jurisdiction of the agency.
(c) Made upon unlawful procedure resulting in material prejudice to a party.
(d) Not supported by competent, material and substantial evidence on the whole record.
(e) Arbitrary, capricious or clearly an abuse or unwarranted exercise of discretion.
(f) Affected by other substantial and material error of law.
(2) The court, as appropriate, may affirm, reverse or modify the decision or order or remand the case for further proceedings. [MCL 24.306; MSA 3.560(206).]
Since plaintiffs’ action was for declaratory judgment brought pursuant to § 64 and since it was not based on a rule as required by that section of the act, we reverse the decision of the trial court granting plaintiffs’ motions for summary disposition. However, we do not dismiss plaintiffs’ claims since defendant’s declaratory ruling was subject to the same judicial review given all agency decisions; although the agency has discretion to refuse a request for declaratory ruling its refusal is subject to judicial review in circuit court. Human Rights Party, supra at 210.
Since judicial review of a final agency decision is limited to the record, and, as in Human Rights Party, supra, there is no record of the agency decision here, it may be necessary for the circuit court to remand this case back to the agency for a hearing.
Defendant also challenges the intervening plaintiff’s right to intervene. This claim is without merit. The claim of the intervening plaintiff has questions of law and fact in common with that of the plaintiff and the trial court’s exercise of its discretion in allowing intervention did not unduly delay or prejudice the adjudication of the rights of the parties. See MCR 2.209(B).
With the order remanding this case for review of plaintiffs’ claims pursuant to § 106 of the apa, we need not address defendant’s contention that the trial court erred in concluding that there was insufficient evidence to support the homosexual predator classification of plaintiffs.
Reversed and remanded. | [
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M. H. Cherry, J.
i
These consolidated appeals involve actions by Ronald C. Murrell and Murrell Enterprises, Inc., and Comerica Bank-Detroit, formerly known as Detroit Bank & Trust Company, to recover damages on letters of credit given as security obtained by Paragon Transport, Inc., pursuant to a 1977 preliminary injunction order. The letters of credit were in the amounts of $500,000 and $200,000 payable to the account of Murrell and Comerica, respectively. In December, 1983, a judgment of $609,606.53 was entered for Murrell and a judgment denying any relief to Comerica on equitable estoppel grounds was entered. Paragon and Comerica, respectively, appeal as of right from the December, 1983, judgments.
The facts are not in substantial dispute. C. Carlton Prichard died testate on May 6, 1976. Comerica was appointed executor of his estate. Prichard’s will granted to Murrell, an employee of Earl C. Smith, Inc., one of two corporations owned by Prichard, the right of first refusal to purchase all the capital stock owned by Prichard at its fair market price. The other corporation owned by Prichard was known as Magra, Inc. Comerica solicited bids on the stock, subject to Murrell’s right of first refusal. Paragon was the successful bidder. Murrell chose to exercise his right to purchase the stock, but ran into difficulty obtaining financing. One potential financing source, Manufacturer’s National Bank, rejected his loan application. On January 24, 1977, Comerica notified Murrell that his right to consummate the stock purchase was being terminated; Paragon’s latest offer was accepted. Murrell responded by filing a petition in the St. Clair County Probate Court for construction of Prichard’s will and for an injunction to prevent Comerica from selling Prichard’s stock to Paragon. In February, 1977, Murrell obtained a loan commitment from Michigan National Bank of Port Huron. On February 28, 1977, an order was entered construing Prichard’s will favorably to Murrell and recognizing that his right of first refusal existed. An order granting a preliminary injunction enjoining Comerica from selling the stock of Smith and Magra to any party other than Murrell was entered by the probate court.
Paragon appealed the two probate court orders to the St. Clair Circuit Court and also requested an injunction preventing Comerica from selling the stock to Murrell. On August 23, 1977, the preliminary injunction order was entered, with the condition that Paragon file the two letters of credit which are the subject matter of this appeal.
On December 30, 1977, the circuit court entered an order affirming the two probate court orders and remanding the matter to the probate court for further proceedings. Paragon appealed that determination to this Court, which reversed the circuit court order in three separate opinions. In re Prichard Estate, 94 Mich App 116; 288 NW2d 598 (1979). On March 10, 1981, our Supreme Court reversed the determination of this Court and reinstated the judgments of the circuit and probate courts. In re Prichard Estate, 410 Mich 587; 302 NW2d 554 (1981), reh den 411 Mich 1120 (1981).
Comerica filed a petition in the probate court for instructions on how to proceed to finalize the sale of Prichard’s capital stock to Murrell. The probate court entered an order instructing Comerica to proceed to negotiate with Murrell, to present areas of disagreement to the probate court, and to present the final sales agreement to the probate court for approval. On December 21, 1981, the sales agreement was approved. In January, 1982, the preliminary injunction issued by the circuit court was dissolved and the capital stock sale between Comerica and Murrell closed.
Comerica and Murrell filed separate motions to recover damages from Paragon under the letters of credit. Murrell’s motion, filed June 30, 1981, under GCR 1963, 525 and 763, now MCR 3.604, preceded the close of the stock sales transaction. Comerica’s motion, filed May 10, 1982, or subsequent to the closing, was made under GCR 1963, 525 and 763 and 718.3, now MCR 3.604 and 3.310(D). Damages caused by Paragon’s "wrongful enjoinment” were sought. On July 19, 1982, the motions were ordered consolidated for purposes of a hearing on whether Paragon was liable under the two letters of credit for wrongful enjoinment, with separate hearings on damages to follow in the event that Paragon was found liable.
The hearing focused on three primary factual matters. First, many of the facts pertaining to the 1977 events at issue in the prior appeal decided by our Supreme Court were introduced. Second, evidence was introduced pertaining to the relationship of the various business entities involved in the litigation.
The third factual matter addressed at the hearing pertained to damages. Testimony disclosed that, subsequent to our Supreme Court’s 1981 decision upholding Murrell’s right to acquire the Smith and Magra capital stock, Murrell was unable to obtain a financing commitment from Michigan National Bank of Port Huron under the same loan terms as the 1977 commitment made by that bank. The 1977 loan commitment was for $2,445,000, consisting of two five-year term loans at ten percent per annum, totaling $1,385,000, and two revolving loans totaling $1,060,000, renewable annually at the bank’s discretion with interest at the prime rate plus two percent. The original sales agreement negotiated between Murrell and Comerica for the sale of Smith and Magra capital stock was dated March 10, 1977, and approved by the probate court. The purchase was to be made on a cash basis. In 1981, Murrell, in view of his inability to obtain the 1977 loan terms from Michigan National Bank of Port Huron, negotiated with Comercia to pay for Smith and Magra stock partially in cash and partially by executing secured notes. On December 21, 1981, Murrell and Comerica entered into a "first amendment to agreement of sale.” The selling price of $2,649,728.25 was the same as that originally agreed to by Comerica and Murrell in the original agreement. The amended agreement required that Murrell execute a secured five-term note with interest of thirteen percent per annum in the principal amount of $1,961,728.25. Other payment terms included cash and noninterest-bearing notes. Other negotiated terms included an indemnity clause, profit-sharing clause, a personal guarantee on the part of Murrell, and a release clause. The sale closed on January 19, 1982.
Murrell’s damage claim was based on the expectation that the sale should have closed by June 30, 1977. By comparison, Comerica’s damage claim was based on the theory that, but for the preliminary injunction being obtained by Paragon, the sale would have closed during the week of November 7, 1977. Damages in excess of $1,000,000 were claimed by Comerica, based on a theory that, had the sale closed, the Prichard, estate would have had cash to invest and could have avoided certain expenses. The most significant claim was for $966,065 which represented alleged investment income which would have been earned between November 9, 1977, and January 31, 1982. Other claims included $167,000 for accrued interest on the estate’s tax liability, a claim exceeding $30,000 for services provided by Comerica concerning Smith and Magra affairs, and interest exceeding $30,000 paid on funds borrowed to pay a widow’s allowance.
On April 15, 1983, the circuit court held that Murrell was wrongfully enjoined by Paragon from consummating the purchase of the Smith and Magra stock and could recover damages. Comerica, as executor of Prichard’s estate, however, was estopped from recovering damages, because it induced Paragon to enter into the stock purchase agreement and thereby put Paragon into a position on which it relied to its detriment. On December 12, 1983, judgment was entered awarding $609,606.53 in damages to Murrell. A judgment denying relief to Comerica was entered the same day.
On December 19, 1983, Paragon filed an appeal with this Court. On December 22, 1983, the circuit court entered an order requiring the proceeds of the letters of credit in favor of Murrell to be deposited with an escrow agent during the pendency of this appeal or until further order of the circuit court.
On December 29, 1983, Comerica filed a claim of appeal with this Court. Both appeals were dismissed in April, 1984, for lack of jurisdiction. Comerica and Paragon’s delayed applications for leave to appeal were also denied. On November 30, 1984, our Supreme Court vacated this Court’s orders and remanded the Paragon and Comerica appeals to this Court for consideration as on leave granted. 419 Mich 964 (1984).
ii
The first issue we address is whether the circuit court erred as a matter of law in finding that Murrell was entitled to recover damages from Paragon for "wrongful enjoinment.” When a court grants a preliminary injunction it sits in equity. Van Buren Public School Dist v Wayne Circuit Judge, 61 Mich App 6, 15; 232 NW2d 278 (1975). "The object of preliminary injunctions is to preserve the status quo, so that upon the final hearing the rights of the parties may be determined without injury to either.” Gates v Detroit & M R Co, 151 Mich 548, 551; 115 NW 420 (1908). The injunction itself must be specific and narrowly construed. Walters v Norlin, 123 Mich App 435, 440; 332 NW2d 569 (1983), see GCR 1963, 718.9, now MCR 3.310(C). However, the injunction is always subject to modification or dissolution if the facts merit it. Opal Lake Ass’n v Michaywe Ltd Partnership, 47 Mich App 354, 367; 209 NW2d 478 (1973). Under GCR 1963, 718.3, now MCR 3.310(D), which was applicable during the times relevant to this appeal, the court could order that the party requesting the injunction provide security.
The preliminary injunction at issue expressly stated that its purpose was to "preserve and protect the status quo ante in these proceedings pending the further order of and final disposition of these proceedings by the court, and that an appropriate security should be set for the benefit of the appellee and the executor herein;. . . .” The injunction stated that letters of credit should indemnify Ronald C. Murrell, and Murrell Enterprises, Inc., and Detroit Bank & Trust Company, executor, for any costs or damages that they incurred or suffered if either party was found to be or to have been wrongfully enjoined. The letter of credit obtained by Paragon as security were issued by Michigan National Bank of Detroit and guaranteed by GLS Lease Co.
At issue in this appeal are the nature of the proceedings brought by Murrell on the letter of credit, the meaning of the phrase "wrongfully enjoined” in the court rule and preliminary injunction, what defenses are available to Paragon, and what standards apply in determining the amount of damages.
At common law, it was a general rule that there was no liability in tort from damages caused by wrongfully suing out an injunction, unless circumstances gave rise to a cause of action for malicious prosecution. 42 Am Jur 2d, Injunctions, § 359, pp 1171-1172. The word "wrongful,” as used in the context of injunctions, has been considered by federal and state courts to mean the issuance of the injunction by a court in error or when it ought not to have been issued. See e.g. Hubbard Broadcasting, Inc v C A Loescher, 291 NW2d 216 (Minn, 1980), Coyne-Delany Co, Inc v Capital Development Bd of the State of Illinois, 717 F2d 385, 391 (CA 7, 1983), and Cappaert Enterprises v Citizens & Southern International Bank of New Orleans, 564 F Supp 214 (ED La, 1983).
In Michigan, statutes or court rules permit a trial court to issue an injunction conditioned on the party requesting the injunction giving security for damages caused by "wrongful” enjoinment. GCR 1963, 718.3(1). The action on the security, often in the form of an "injunction bond,” is treated as an action on a contract and not a proceeding in equity, although the allowance of damages has been treated in some courts as resting on equitable principles. Coyne-Delany Co, Inc, supra, p 391, and Epstein v Graff, 231 Mich 232; 203 NW 836 (1925) (the remedy for damages occasioned by an injunction is an action upon the bond).
In Michigan, court rules establish a summary proceeding where a party wrongfully enjoined may recover damages on a bond or other security. Independence Twp v The Stolaruk Corp, 100 Mich App 209; 298 NW2d 706 (1980). GCR 1963, 525, now MCR 3.604(I), which establishes the proceeding, states:
In every action in which a bond or other security for costs, supersedeas, or other purposes has been posted, judgment may be entered directly in the action against the bondsman or other security on motion and a showing that the condition has occurred giving rise to the liability on the bond or to the forfeiture of the security. In each instance notice of the hearing on the motion for judgment shall be given to the bondsman or the owner of the security. If in subsequent proceedings in the action on appeal or otherwise, it is held that facts exist indicating that the bondsman is not liable or that the security should not have been forfeited, the court in the action may order restitution of all moneys paid or securities forfeited.
Murrell filed a motion to recover damages under GCR 1963, 525, on June 30, 1981. The "condition” giving rise to Paragon’s liability, as provided for in the court rule and preliminary injunction, was a showing that Murrell was "wrongfully enjoined.” Paragon’s position is that its good faith in filing its appeal to. the circuit court from the probate court in the underlying dispute between the parties (regarding whether Murrell or Paragon had a superior right to purchase the capital stock of Smith and Magra) must be considered. The operative term in the court rule, GCR 1963, 718.3(1), the preliminary injunction order and the letter of credit seems to be "wrongful.”
Since the merits of the underlying controversy between the parties in this case was decided in favor of Murrell, it appears from these principles that a showing was made that Murrell had been wrongfully enjoined. However, since the interpretation of a court rule was involved, general principles of construction should also be considered. In construing a court rule, principles of statutory construction apply. Issa v Garlinghouse, 133 Mich App 579, 581; 349 NW2d 527 (1984). A statute should be given a reasonable construction given its purpose and the object sought to be accomplished. King v Director of the Midland Co Dep’t of Social Services, 73 Mich App 253, 258; 251 NW2d 270 (1977). A statute should be construed according to the ordinary and approved usage of the language. Dep’t of Treasury v Psychological Resources, Inc, 147 Mich App 140, 145; 383 NW2d 144 (1985). Resort to dictionary definitions is an appropriate method of achieving this result. See Mobil Oil Corp v Dep’t of Treasury, 422 Mich 473, 484; 373 NW2d 730 (1985), reh den 422 Mich 1264 (1985). "Wrongful” is defined in The American Heritage Dictionary of the English Language (New College Ed, 1981) as follows:
1. Wrong; injurious, unjust.
2. Contrary to law; unlawful, illegal.
"Wrongful” is defined in Black’s Law Dictionary (Rev 4th ed) as follows:
Injurious, heedless, unjust, reckless, unfair. Infringement of some right.
The plain language of GCR 1963, 718.3(1) indicates as its object compensating a party for costs and damages sustained as a result of an injunction, which, based on the determination made on the merits of the underlying controversy between the parties, should not have been issued at all. The circuit court here correctly considered the above principles in construing the meaning of "wrongful” in its opinion.
Having concluded that the enjoinment was wrongful, the next issue is whether any defenses were available to Paragon. It is generally considered that good faith is no defense. See 43A CJS, Injunctions, § 325(c), p 726, Hubbard Broadcasting, Inc, supra, and Coyne-Delany Co, Inc, supra, p 392. An exception exists when recovery is sought in excess of an injunction-bond amount. The majority rule limits recovery to the bond amount, absent a showing that the preliminary injunction was issued maliciously or in bad faith. This view is compatible with public policy encouraging ready access to the courts. The minority rule permits a party to recover all damages arising from a wrongful injunction. See Tracy v Capozzi, 98 Nev 120; 642 P2d 591 (1982), and Anno., 30 ALR4th 273. Since, as previously discussed, a party can seek modification of a preliminary injunction, and thus request an increase in the security, we prefer the majority view.
The security required by the preliminary injunction in this case in regard to Murrell was a letter of credit in the amount of $500,000. The letter of credit allowed for no greater recovery. Consequently, $500,000 was the maximum amount that Murrell should have been entitled to recover by motion under GCR 1963, 525. The trial court clearly erred in awarding damages in excess of $500,000.
Finally, connected with this issue is the issue of what standards apply in awarding damages under GCR 1963, 525 for wrongful enjoinment. The majority approach in the federal courts is to award damages, unless there is a good reason not to require the party to pay damages in a particular case. See Coyne-Delany Co, Inc, supra, p 391. The object of a damage award is to compensate the party wrongfully enjoined for damages proximately resulting from the injunction. Hubbard Broadcasting, Inc, supra. Under the "avoidable consequences doctrine” applicable to contracts, parties cannot recover for damages which could have been avoided by reasonable effort or expenditure. The party seeking damages has a duty to mitigate damages. Additionally, benefits arising from the breach must be deducted from damages otherwise payable. See Tel-Ex Plaza, Inc v Hardees Restaurants, Inc, 76 Mich App 131, 134-135; 255 NW2d 794 (1977), lv den 402 Mich 832 (1977). The circuit court’s written opinion indicates that these principles were considered. We conclude that the circuit court erred in awarding damages and costs in excess of $500,000. Although the court’s oral opinion is somewhat unclear, the circuit court’s finding of wrongful enjoinment was correct and is affirmed.
iii
We next consider whether the circuit court erred in its computation of the amount of damages sustained by Murrell. A circuit court’s factual findings are reviewed under the "clearly erroneous” standard. MCR 2.613(C). The pertinent inquiry is whether the damages proximately resulted from the injunction. The damage award was based on three factors: (a) out-of-pocket costs; (b) increased financing costs; and (c) lost profits.
A
OUT OF POCKET COST OF $61,541.79
The award represented the costs incurred by Murrell in preparing to close on the original 1977 sales agreement for Smith and Magra stock and in obtaining a financing commitment for the purchase. Costs included a real estate appraisal, tax advice from attorneys, loan negotiation and preparation, financial projections prepared by accountants in connection with the loan, and attorneys fees related to Interstate Commerce Commission requirements.
The basis of the circuit court’s award was its finding that the above expenses were legitimate and would have been incurred again at the time of closing in 1982. The general rule is that there is no liability for damages sustained before the injunction was granted. 42 Am Jur 2d, Injunctions, §367, p 1182. Additionally, neither the preliminary injunction nor the letter of credit expressly required that Paragon pay damages for costs incurred prior to the injunction as a condition for obtaining the injunction. Thus, we find that the circuit court clearly erred in awarding preinjunction costs to Murrell. The $61,541.79 award is reversed.
B
INCREASED FINANCING (INTEREST) COSTS OF $210,185
This award represents the difference between the interest costs involved in a loan commitment procured by Murrell from Michigan National Bank of Port Huron in 1977 and the actual loan package Murrell procured from Comerica under the December, 1981, amended agreement. The stock sale closed on January 19, 1982. The award was based on the testimony of Murrell’s expert witness, James Matthews, who calculated the interest difference based on an assumption that $1,911,682.25 would have been borrowed by Murrell in both 1977 and 1982 in the form of interest-bearing notes.
The problem in this case is that two different loan packages, separated in time by approximately four and one-half years, are being compared. The terms of the 1982 loan package are clear. The terms of the 1977 loan package, containing two revolving loans subject to annual renewal at the discretion of the bank, are more speculative in nature. Matthews’ testimony indicated that the 1982 interest costs would be higher than the 1977 interest costs. The circuit court’s decision to accept his testimony and calculations as the "more logical and accurate figure” for calculating damages was not clearly erroneous.
c
LOST PROFITS OF $277,698
This award represents a dividend actually paid out to Comerica, as the executor of the Estate of Prichard. It was computed based on fifty percent of Smith and Magra’s net income for the period from July 1, 1977, the approximate date that Murrell anticipated closing under the original agreement, and the actual date of closing under the amended agreement. The original agreement provided that Smith and Magra profits would be split equally between Comerica, as the executor of the Estate of Prichard, and Murrell "commencing as of January 1, 1977, and continuing to the date of closing.” The original agreement also specified that "time is of the essence and the sale shall be completed not later than June 30, 1977.” The amended agreement, dated December 21, 1981, provided that "because of certain litigation the closing of this transaction was delayed and, as a matter of compromise between the parties hereto, they agree to share in the profits ...” The circuit court determined that the clause represented a compromise agreement and served to keep the agreed-to interest terms lower. A review of Paragon’s arguments regarding this portion of the award does not convince us that any error has been made. In view of the terms of the original agreement and Ronald Murrell’s testimony on when he anticipated closing, the circuit court’s use of July 1, 1977, to compute lost profits was not clearly erroneous.
D
THE DURATION OF THE INJUNCTION AND ITS RELATIONSHIP TO DAMAGES
Paragon, relying on case law preceding the 1963 General Court Rules, contends that the preliminary injunction was dissolved by its own terms on December 30, 1977, the date the circuit court affirmed the probate court’s orders. The circuit court, relying on GCR 1963, 802.2(3), now MCR 7.208, rejected Paragon’s claim. It is clear from the language of GCR 1963, 802.2(3) that the preliminary injunction issued by the circuit court in this case remained in effect and could have been enforced by Paragon during its appeals to this Court and to the Supreme Court. We find no error in the circuit court’s determination that the preliminary injunction remained in effect during the appeal period. The circuit court did not clearly err in awarding damages based on events occurring subsequent to 1977 which were caused by the injunction. No failure to mitigate damages was shown.
iv
Paragon next argues that the circuit court erred in computing the statutory prejudgment interest awarded to Murrell. The sole issue raised by Paragon was what date should have been used by the circuit court as the starting date in computing prejudgment interest. Paragon contends that the starting date should be May 7, 1982, the date Murrell first moved for damages under the injunction, instead of January 11, 1982, the date Murrell moved to dissolve the injunction. May 7, 1982, was the date of Comerica’s "motion for judgment against security in the form of letter of credit.” According to the circuit court’s judgment, the injunction was dissolved on January 11, 1982. On January 19, 1982, Murrell and Comerica closed their stock sales transaction. Thus, it can be seen that Paragon’s claim of error is factually incorrect. The circuit court’s prejudgment interest award computations were expressly based on MCL 600.6013; MSA 27A.6013 and are correct.
v
In Comerica’s appeal to this Court the only issue raised is whether the circuit court erred in finding that Comerica was equitably estopped from recovering damages from Paragon under the letter of credit. Basic principles applicable to this issue are discussed in section ii, supra. The pertinent inquiry is whether there was good reason to apply the doctrine of equitable estoppel to prevent Comerica from recovering damages proximately resulting from the preliminary injunction. Our Supreme Court has held that equitable estoppel rests in broad principles of justice. Mertz v Mertz, 311 Mich 46; 18 NW2d 271 (1945). Consequently, parties who successfully maintain one position in a lawsuit have been barred from taking an inconsistent position in a subsequent lawsuit on the same actual issue. Burgess v Holder, 362 Mich 53; 106 NW2d 379 (1960); Mertz v Mertz, supra. The doctrine is applicable to actions in both law and equity. Stone Road Dairy Co v Humes, 220 Mich 57; 189 NW 883 (1922).
Since equity is involved, the standard of review is de novo, with no reversal unless the trial court’s findings were clearly erroneous or this Court concludes that it would have reached a different result had it occupied the court’s position. Calvary Presbyterian Church v Presbytery of Lake Huron of the United Presbyterian Church in the United States of America, 148 Mich App 105; 384 NW2d 92 (1986), lv den 425 Mich 863 (1986).
We believe that the circuit court clearly erred in ruling that Comerica was equitably estopped from recovering under the letter of credit. The circumstance relied on by the circuit court in finding an estoppel was Comerica’s act of entering into a contract with Paragon for the sale of Smith and Magra capital stock. The court reasoned that this action placed Paragon into a position upon which it relied to its detriment. Although it is true that it was Comerica’s contract with Paragon which gave Paragon a basis for believing that it, and not Murrell, had a superior right to acquire the Smith and Magra capital stock from the Prichard estate, this did not necessarily mean that Paragon was entitled to a preliminary injunction while pursuing that claim through the appellate proceedings. The record contains no facts showing acts on the part of Comerica which would have induced Paragon to seek the injunction. To the contrary, the record indicates that, following the probate court’s order finding Murrell’s right to acquire Smith and Magra capital stock superior in an order dated February 28, 1977, Comerica, as the executor of the Estate of Prichard, entered into the original March 10, 1977, agreement governing its sale of the Smith and Magra stock to Murrell. Probate court approval of the sale agreement was obtained. It was Paragon which sought to enjoin the sale by filing a motion for an injunction on June 22, 1977. The preliminary injunction order was entered on August 23,1977.
Comerica, therefore, was entitled to damages proximately caused by the injunction. Paragon was entitled to and apparently chose to file a separate claim against Comerica based on a breach of contract theory. Comerica should be awarded damages and costs, not to exceed the letter of credit amount of $200,000. Because the circuit court made no factual findings on this damage issue, the appropriate relief is to grant a remand to the circuit court to decide the issue of damages.
Affirmed in part, reversed in part and remanded for proceedings consistent with this opinion. We retain no jurisdiction. | [
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J. P. Jourdan, J.
Petitioner, the mother of minor children and a recipient of Aid to Families with Dependent Children, appeals from the circuit court’s order affirming a hearing referee’s decision allowing respondent to recoup shelter payments received by petitioner. Petitioner claims two errors on appeal. First, that respondent’s policy of prohibiting shelter payments to responsible relatives violates federal and state law in regard to afdc payments. Although respondent contends that this issue was not raised below, we note that this issue was properly raised at the administrative hearing. Secondly, petitioner claims that respondent’s policy violates petitioner’s right to privacy regarding family matters and relationships. We disagree.
Item 322 of the Department of Social Services Assistance Payments Manual prohibits the payment of shelter allowances to "responsible relatives.” The manual defines "responsible relative” to include a person’s spouse or the legal parent of an unemancipated minor. The shelter allowance was eliminated from petitioner’s afdc payment because it was being paid to Miguel Seguera, the father of petitioner’s minor daughter.
The afdc program was established by Title IV of the Social Security Act of 1935, 42 USC 601 et seq., and provides assistance to needy families with dependent children. Heckler v Turner, 470 US 184; 105 S Ct 1138; 84 L Ed 2d 138 (1985). The program is funded largely by the federal government on a matching basis and is administered by the states, which are required to submit afdc plans conforming to the Social Security Act and to the regulations promulgated by the Secretary of Health and Human Services. Id., 470 US 189-190; McKee v Dep’t of Social Services, 424 Mich 404, 408; 381 NW2d 679 (1985). While states are not free to narrow the federal standards that define the categories of persons eligible for aid, 45 CFR 233.10; Quern v Mandley, 436 US 725; 98 S Ct 2068; 56 L Ed 2d 658 (1978), states are given considerable latitude in allocating their scarce afdc resources. Pease v Director of the Michigan Dep’t of Social Servies, 105 Mich App 689, 697; 308 NW2d 432 (1981); lv den 412 Mich 940 (1982).
Although Item 322 is not expressly authorized by federal enactment, neither is it prohibited, Pease, supra, p 698. Further, federal regulation mandates that states include antifraud provisions in their afdc plans. 45 CFR 233.110; Pease, supra. We are persuaded that Item 322 advances the legitimate purpose of reducing the possibility of fraudulent, collusive or unscrupulous conduct by afdc recipients and responsible relatives. The policy reflects the state’s reasonable determination of how limited public funds will be disbursed. See Koziarski v Dep’t of Social Services, 86 Mich App 15; 272 NW2d 183 (1978). While there has been no allegation of fraud on petitioner’s part, by prohibiting the payment of shelter allowances to responsible relatives, Item 322 serves to lessen the potential for fraud among afdc recipients who might enter into lease agreements with their mates.
We do not agree that the prohibition found in Item 322 narrows the categories of persons "eligible for aid” under federal law. The policy merely limits the category of persons who can receive shelter payments in the recipient’s behalf. The lone obstacle in petitioner’s path which prevented her from collecting shelter benefits was the identity of her landlord, the eventual recipient of the shelter portion of petitioner’s afdc grant. Petitioner herself remained eligible for continued benefits. Had she rented from any other landlord, her shelter allowance would not have been eliminated.
Petitioner waived her second argument, that respondent’s policy interferes with her right to privacy regarding family matters and relations, because it was not raised at the administrative level. Nevertheless, the trial court addressed the merits of the claim and we will review it. We find that the trial court correctly ruled that petitioner is not being forced to live in any particular place. Cornwell v Dep’t of Social Services, 111 Mich App 68, 74; 315 NW2d 150 (1981). Respondent’s policy merely makes it more difficult for petitioner to rent from Mr. Seguera; but this is the result of a legitimate purpose.
Affirmed. No costs, a public question being involved. | [
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Gribbs, P.J.
Petitioner Ingham Emergency Physicians, P.C., appeals as of right from a probate court order denying petitioner’s request for recoupment of prior disbursements and payment of ad ministrative expenses. We affirm, although we disagree with some of the probate court’s reasoning.
Liliane E. McDivitt died intestate on September 14, 1980. Her heirs were a sister, Leila E. Towner, and a nephew, Calvin F. McDivitt. The estate included a house and personal property valued at $18,781.65 and a personal injury and wrongful death claim against petitioner Ingham Emergency Physicians, P.C., and St. Lawrence Hospital. Calvin F. McDivitt was appointed personal representative of the estate.
On February 9, 1981, the personal representative filed a partial accounting of the estate and requested partial distribution of the estate assets. The personal representative advised the court of the pending litigation and asked that $1,000 be retained in the estate to cover the costs of litigation.
On February 18, 1981, the probate court ordered a partial distribution of the estate. The personal representative and Leila Towner, as the only heirs, each received $6,818.26. The order also authorized payment of Michigan inheritance taxes and attorney fees. Approximately $1,000 was left in the estate to cover the costs of litigation.
On December 20, 1984, the mediation panel evaluated the estate’s claim against St. Lawrence Hospital at $55,000 and found that the estate had no cause of action against petitioner. The estate accepted the mediation evaluation against the hospital and the hospital rejected the evaluation. The estate rejected the no-cause evaluation as to petitioner and the case proceeded to trial, where a verdict of no cause of action against both petitioner and the hospital was ultimately entered. On October 4, 1985, the circuit court granted petition er’s motion for costs and mediation sanctions in the amount of $10,455. MCE 2.403(0).
On November 26, 1986, petitioner filed a petition in probate court for recoupment of prior disbursements and sought payment of the mediation sanctions as administrative expenses. This petition requested that the probate court order the personal representative to recoup the partial disbursement of February 10, 1981, in order to pay the mediation sanctions ordered by the circuit court. The probate court denied the petition, ruling that the mediation judgment was not an expense of administration.
Petitioner argues on appeal that the probate court’s ruling that mediation sanctions are not an expense of administration was incorrect. We agree. MCL 700.192; MSA 27.5192 provides the statutory classification and priority for charges against a decedent’s estate:
(1) The charges against an estate shall be paid in the following order of priority:
(a) Expenses of administration.
(b) Funeral and burial expenses for the deceased. Burial expenses include expenses of cremation.
(c) Family allowances made for spouse and minor children pursuant to section 287.
(d) Homestead provisions for spouse and minor children pursuant to section 285.
(e) Allowances made for spouse and minor children pursuant to section 286.
(f) Claims allowed against the estate.
(2) After the payment of the charges in subsection (1), or when sufficient assets are reserved in the hands of the personal representative for each of the purposes stated in subsection (1), the court shall, by order for that purpose, assign the residue of the estate, if any, to persons as are by law entitled to the same subject to the right of the personal representative to withhold and pay from that residue all inheritance and estate taxes payable therefrom.
Clearly, mediation sanctions would not qualify under subsections (b), (c), (d) or (e). Nor would mediation sanctions qualify under subsection (f), as a claim allowed against the estate, since claims are defined in MCL 700.3; MSA 27.5003 as "liabilities of the decedent . . . which arise at or before the death of the decedent, and funeral and burial expenses.” Petitioner’s claim for mediation sanctions did not arise before the death of the decedent, since petitioner was not entitled to mediation sanctions until after the circuit court issued its judgment.
The question presented here is whether mediation sanctions entered against an estate in a wrongful death action initiated by the estate are an expense of administration. The Revised Probate Code does not define "expenses of administration.” This is a question of first impression in Michigan and there appears to be no case law precisely on point from other jurisdictions. There is, however, Michigan authority for the premise that the costs of litigating an estate’s claim are generally considered expenses of administration, whether or not the litigation is successful. Van Wert v Chidester, 31 Mich 207 (1875).
The Florida Court of Appeals also reached this conclusion in In re Grillo Estate, 393 So 2d 578 (Fla App, 1981), and held that a judgment for costs entered against the estate in a wrongful death action initiated by the estate is an expense of administration and a priority claim. Florida’s probate code, like Michigan’s, is modeled on the Uniform Probate Code and gives administrative expenses priority in distribution of estate assets. The Florida Court held that a judgment for costs is "an obligation created by the legal act of the personal representative in his effort to increase the assets of the estate. It is thus a cost or expense of administration.” 393 So 2d 579. See also In re Williams’ Estate, 143 Misc 527; 257 NYS 859 (1932); In re Groom’s Estate, 193 Misc 999; 85 NYS2d 862 (1948).
In this case, the mediation sanctions assessed against the estate in the wrongful death action resulted from litigation that was undertaken to benefit the estate by increasing its assets. Therefore, we conclude that the mediation sanctions are expenses of administration entitled to priority under MCL. 700.192(1)(a); MSA 27.5192(1)(a). Any other conclusion would frustrate the intent behind the mediation sanctions rule, MCR 2.403(0), by giving estates immunity from the consequences of prosecuting meritless claims.
Petitioner also contends that the heirs should be required to return the partial distribution and that the personal representative should be held liable for any amount not recovered. We do not agree.
As petitioner notes, the mediation sanctions were not before the probate court when the partial distribution was ordered, although the court was aware of the pending litigation. A court order for partial distribution is final only as to those matters before the court. MacKenzie v Union Guardian Trust Co, 262 Mich 563, 586; 247 NW 914 (1933). However, as a general rule, an order for partial distribution which has not been appealed is conclusive as to the funds distributed. 34 CJS, Executors and Administrators, §532, pp 462-463. Moreover, an accounting approved by the probate court protects the personal representative from later claims that assets are missing or that a disbursement was improper. MCL 700.564; MSA 27.5564. An order allowing an annual account is considered a final order for purposes of appeal. In re Butterfield Estate, 100 Mich App 657; 300 NW2d 359 (1980).
Petitioner relies on MCL 700.117(2); MSA 27.5117(2), which provides:
All of the heirs who, with the consent of the personal representative or otherwise, have possession of any part of the estate before all of the charges against the estate are paid or satisfied, shall hold the estate subject to those charges and shall be held to contribute according to their respective liabilities to the personal representative or to any heir from whom any part of the estate may have been taken for the payment or satisfaction of the charges. The personal representative is liable if any of those heirs fails to make contribution as provided in this subsection unless it is shown that the possession of property by the person was without the consent of the personal representative and that the personal representative was unable by diligent effort to prevent the possession.
Petitioner argues that the phrase, "with the consent of the personal representative or otherwise,” encompasses court-ordered distributions. According to petitioner’s reasoning, a personal representative is always ultimately responsible for unsatisfied charges against the estate. We do not agree. All of the case law on the issue of contribution by heirs appears to involve situations where distribution was made without authority from the court. See Flood v Strong, 108 Mich 561; 66 NW 473 (1896); Atwood v Frost, 59 Mich 409; 26 NW 655 (1886); Burns v Berry, 42 Mich 176; 3 NW 924 (1879). Indeed, under petitioner’s proposed interpretation of the statute, court approval of a personal representative’s actions would be a waste of judicial time and would afford no protection to the fiduciary.
In this case, it is significant that the personal representative told the probate court everything he knew about the pending litigation. It is apparent that neither the probate court judge nor the counsel involved in these proceedings considered the possibility that mediation sanctions would be ordered. Indeed, under the court rule then applicable, GCR 1963, 316.1, mediation was not required in this case as it was within the circuit court’s discretion to determine whether or not mediation would be held. Moreover, the mediation in this case was not ordered until nearly four years after the partial disbursement. It would be unreasonable for us to expect that the personal representative should have foreseen charges that were obviously not foreseeable at the time. Here, where the good faith of the personal representative is not at issue, we conclude that the personal representative protected himself from an error in judgment by choosing to act under the supervision of the court. MCL 700.10(5); MSA 27.5010(5).
It is also significant that petitioner never filed any objection or request for reconsideration of the partial disbursement in the probate court. Neither has petitioner at any time, from 1981 to the present, filed any objection to the personal representative’s annual accountings or handling of the estate. We believe that both parties must share the burden of anticipating the ultimate costs to be assessed against the estate.
We conclude that the mediation sanctions are properly chargeable as expenses of administration. Petitioner is therefore entitled to the fund of approximately $1,000 retained in the estate to cover the costs of litigation. We also conclude that recoupment from the heirs of monies already dis bursed is not appropriate in this case because the partial distribution was made in good faith, with full disclosure and pursuant to a court order which was not set aside and from which no appeal was taken.
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Per Curiam.
Plaintiffs appeal from an order issued by the Wayne Circuit Court granting summary disposition to defendant Burroughs Corporation.
Defendant Debra Switchenko, who was employed by Burroughs, was shopping for a used car in September, 1984, for her personal use. After finding a car she liked at Blackwell Ford, Ms. Switchenko began to negotiate for its purchase with plaintiff Ronald Leitch, a used car salesman. On October 2, 1984, Ms. Switchenko returned to the dealership to buy the car and made Leitch an offer for the car that was about $300 to $400 lower than Leitch’s previous offer. Thereupon a ten- to fifteen-minute exchange took place between Switchenko and Leitch which Switchenko later characterized as rude, embarrassing, intimidating, and angry. Switchenko. left the lot, returned to her office at Burroughs, and wrote a letter on Burroughs’ stationery to the president of Blackwell Ford that became the basis of this action. Ronald Leitch was fired the day the letter arrived.
Plaintiffs sued Switchenko and Burroughs. In the first three counts of the complaint, plaintiffs asserted that Burroughs was liable, on a respondeat superior basis, for libel, slander, and interference with the employment contract between Ronald Leitch and his employer. In Count iv of the complaint, Burroughs was charged with negligence in hiring Ms. Switchenko. Burroughs moved for summary disposition of the claims against it. The lower court concluded that Ms. Switchenko had been acting solely in her individual capacity and not as either an actual or apparent agent of Burroughs. It held that Burroughs was not, therefore, liable for the libel, slander, or contract interference allegedly committed by Switchenko and granted summary disposition to Burroughs under MCR 2.116(0(10). The court also held that there were no facts to support the claim that Burroughs had been negligent in hiring Switchenko and that summary disposition as to this count was proper under MCR 2.116(C)(8). Plaintiffs appeal from the amended final order granting judgment to Burroughs.
Plaintiffs claim on appeal that liability against Burroughs was established under the doctrine of respondeat superior and, therefore, the trial court’s grant of summary disposition to Burroughs on all four counts was improper.
We initially note that plaintiffs have abandoned any claim that summary disposition on Count iv, as to negligent employment, was improper. The title of plaintiffs’ sole argument on appeal concludes that the employer is liable on the basis of respondeat superior. Since Count iv was an allegation made directly against the employer, there would be no respondeat superior liability. Moreover, the only place plaintiffs’ claim as to Count iv is arguably addressed is in the last paragraph of plaintiffs’ brief, in a one-sentence argument with no citation to authority. A statement of position without supporting citation is insufficient to bring an issue before this Court. A party may not leave it to this Court to search for authority to sustain or reject its position. Tringali v Lal, 164 Mich App 299; 416 NW2d 117 (1987). This Court concludes that the issue as to summary disposition on Count iv has been waived. City of Midland v Helger Construction Co, Inc, 157 Mich App 736, 745; 403 NW2d 218 (1987).
We now focus on plaintiffs’ claim as to Counts i, ii, and iii of their complaint and whether summary disposition was properly granted pursuant to MCR 2.116(C)(10).
A motion for summary disposition on the ground that there is no genuine issue of material fact tests the factual support of the claim. Slaughter v Smith, 167 Mich App 400; 421 NW2d 702 (1988); Hagerl v Auto Club Group Ins Co, 157 Mich App 684, 687; 403 NW2d 197 (1987), lv den 428 Mich 900 (1987). The court must consider the affidavits and all other evidence as well as the pleadings and be satisfied that the claim cannot be supported by evidence at trial before granting summary disposition under MCR 2.116(0(10). Id. The opposing party is entitled to all benefits of doubt and all reasonable inferences must be decided in that party’s favor. Id.
As a general rule, an employer may be vicariously liable for the intentional torts of an employee "if the tort is committed in the course and within the scope of the employee’s employment. An employer is not liable, however, if the employee does the act while engaged in the employer’s work, but outside of his authority.” Burch v A & G Associates, Inc, 122 Mich App 798, 804; 333 NW2d 140 (1983); Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 624; 363 NW2d 641 (1984). Liability under this doctrine may also be based on a finding that the employee was acting within the apparent scope of his employment. McCann v Michigan, 398 Mich 65, 71-72; 247 NW2d 521 (1976); Smith v Merrill Lynch Pierce Fenner & Smith, 155 Mich App 230, 236; 399 NW2d 481 (1986). Whether the employee was acting within the scope or apparent scope of employ ment is generally a question for the trier of fact; however, summary disposition is appropriate "where it is apparent that the employee is acting to accomplish a purpose of his own.” Id.
By analogy, the concept of "apparent scope of employment,” like apparent authority in the agency context, is based upon conduct of the employer which leads a third party to reasonably believe that the employee’s actions were taken on behalf of the employer. The critical factors are the employer’s conduct and the third party’s reasonable belief. See Central Wholesale Co v Sefa, 351 Mich 17, 25; 87 NW2d 94 (1957); Michigan National Bank of Detroit v Kellam, 107 Mich App 669, 679-680; 309 NW2d 700 (1981), lv den 413 Mich 870 (1982); 2A CJS, Agency, § 158, pp 793-795 (1972).
In this case, the relevant third party appears to be John Blackwell, president of Blackwell Ford. John Blackwell testified that he was not under the impression that the letter was written on behalf of Burroughs, nor did he or any of Ronald Leitch’s supervisors believe that Switchenko was buying the car on behalf of Burroughs. Plaintiffs offered no evidence to rebut this. There was no evidence that Switchenko was acting within the actual scope of her employment or that the letter was authorized by any of Burroughs’ personnel. Switchenko testified that she neither sought nor received permission from anyone at Burroughs before sending the letter.
This is a case where it is apparent that the employee was acting to accomplish a purpose of her own. Smith v Merrill Lynch, supra at 236. There was no factual support for plaintiffs’ claim that Switchenko was acting within the scope of her employment. The trial court properly granted summary disposition in favor of Burroughs on Counts i, ii, and in pursuant to MCR 2.116(C)(10).
Affirmed. | [
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Wahls, P.J.
Following a jury trial in the Iosco Circuit Court, defendant, John Douglas Loyer, was convicted of second-degree murder, MCL 750.317; MSA 28.549, for the killing of his nineteen-year-old wife, Helen Ann Loyer. Three months later, in June, 1984, he was sentenced to a term of thirty to fifty years imprisonment. Defendant appeals as of right and we affirm, although in doing so we declare unconstitutional a statute in the Code of Criminal Procedure concerning the payment of subpoena fees by the government on behalf of indigent defendants, MCL 775.15; MSA 28.1252.
Defendant’s conviction arises from events which occurred on May 9, 1978, at the Oscoda residence of defendant and his wife, the victim in this case. Defendant was not arrested for the offense until 1983, and his trial did not begin until February, 1984.
The record reveals that on May 9, 1978, at 4:42 p.m., Shirley Scharich, a police dispatcher, received a telephone call from Albert Pirkl requesting that police officers and an ambulance be sent to defendant’s home. Defendant himself told Scharich that his wife had been "tied up, beaten, and raped.” As a result, Scharich immediately dispatched officers and an ambulance. Pirkl testified that on May 9, 1978, he was near defendant’s residence when defendant approached him and stated that his wife had been beaten and raped and perhaps was not breathing. Pirkl called the police. He then accompanied defendant inside defendant’s home and observed the victim lying on a bed. First, Pirkl unsuccessfully tried to detect the victim’s pulse. When he extended the victim’s neck in an attempt to administer cpr, her feet raised out of the bed, and Pirkl realized that she was dead and stiff.
Several other witnesses testified for the prosecution. Dianne Brown, apparently a neighbor of defendant, stated that sometime after 4:00 p.m. on May 9, 1978, she heard a scream and then observed a red car leaving the area. Marjorie Bevens, the victim’s mother, testified that her daughter intended to join the U. S. Air Force and that, whenever she discussed this intention in defendant’s presence, defendant exhibited "nasty looks.” Mrs. Bevens also testified that her ex-husband had previously been found not guilty, by reason of self-defense, of killing her brother, and that one or two weeks after the death of her daughter, defendant asked her how her ex-husband "got off” for killing her brother. Angel Ponce, who shared a room with defendant for a period of time, testified that one day during the winter of 1981 or 1982, he noticed that defendant was crying, and consequently asked him what was wrong. According to Ponce, defendant responded that he had killed his wife. Specifically, Ponce stated defendant told him that one day when he returned home for lunch, he tied up his wife with a rope, made love to her, and then killed her by way of suffocation.
Michael John Cleary, one of defendant’s coworkers at the time of the killing, testified that, on the date of the victim’s death, defendant seemed more rushed or nervous than usual. After lunch, defendant returned to work with the buttons missing from his shirt. A couple of weeks later, the two men were at a party together, drinking beer and smoking marijuana, and defendant said that "as soon as he got out of this he was going to get a new car and cruise.” Another co-worker, Danny Myus, stated that approximately one week after the victim’s death, when he saw defendant leaning against his car, he patted defendant on the back and inquired about what he was thinking. Myus related that defendant responded, "I’m thinking about something I’d done earlier that I didn’t want to do, you know what I mean, Danny . . . .” After Myus acknowledged to defendant that he knew what he meant, he further inquired about what defendant was going to do, and defendant replied, "I’m going to wait until the last minute, and if they think I done it, I’m going to run.” In addition, Stuart Popielarski, who lived with defendant during November, 1978, in Detroit, testified that, when he asked defendant whether he had killed his wife, defendant responded, "there are some things a man can never tell.” On other occasions, defendant told Popielarski that he had to stay one step ahead of the law, that he could not be "nailed” for "her” murder,! that he had "out-slicked” the police, and that hie could not return to the AuSable area because a man cannot return to the scene of a crime. Popielarski also stated that defendant informed him that he was angry that his wife intended to join the Air Force and that on May 9, 1978, he had had anal and vaginal intercourse with the victim while she was tied up. While Popielarski asserted that defendant told him that he had used a pillow to muffle the victim’s screams, he acknowledged on cross-examination that defendant had also told him that someone must have broken into his home and smothered his wife.
Kevin Rozanek, a friend of defendant in 1979, testified that defendant said that he had tied his wife to the bed, put a pillow over her head, and killed her. Kevin Moors, who knew defendant in 1981, stated that defendant told him that he had suffocated his wife, but that he did not mean to do so. Marc Sivrais, a friend and co-worker of defendant, stated that, when he expressed his sorrow to defendant on the death of his wife approximately one and one-half weeks after the incident, defendant stated that he did not "regret it a bit” and that his wife "got what she deserved.”
Larry Weddel, a police officer with the Oscoda/ AuSable Township Police Department, testified that he was dispatched to defendant’s home on May 9, 1978, by Shirley Scharich. He stated that there were abrasions on the victim’s hip and elbow and that there were rope marks on her wrists and ankles. Her body was naked below the waist and was clothed in a beige blouse and a brassiere that was inside out. Detective Lieutenant Raymond Knuth, also of the Oscoda/AuSable Police Department, stated that the only identifiable fingerprints obtained from the residence where Helen Loyer’s body was found belonged to either the victim or defendant. Richard Bisbing, a civilian employee in the crime laboratory of the Michigan State Police, testified that a vaginal swab taken from the victim contained semen.
James Jacques, M.D., a physician in general practice and the medical examiner for Iosco County who pronounced the victim dead at 6:15 p.m. on May 9, 1978, stated that he observed marks around the victim’s wrists and ankles indicating that they had been tied. He opined that the victim had been suffocated and had been dead for eight to twelve hours prior to when he saw her at 6:15 p.m. William DeYoung, M.D., a physician specializing in forensic pathology and who performed an autopsy on the victim on May 10, 1978, stated that he, too, observed the binding or rope marks on the victim’s wrists and ankles and opined that the victim had been suffocated. His opinion was that the victim had been dead for six to twelve hours before 6:15 p.m. on the day of her death.
After the prosecution rested, defendant presented his proofs. Ronald Hines, M.D., a pathologist, after reviewing the victim’s postmortem examination report, opined that an exact answer as to the time of the victim’s death could not be given. Two of defendant’s friends, Gary Cox and Cindy Cox, and defendant’s sister, Brenda Forsythe, testified that defendant and the victim appeared to be happy together, that defendant’s behavior did not indicate that he did not want his wife to join the Air Force, and that defendant never admitted to them any participation in the killing of the victim. John Kloss, with whom defendant lived for three weeks, stated that defendant told him that his wife had been killed by gunshot and that he had loved her. He also testi fied that prosecution witness Kevin Moors does not have a very good reputation for honesty and truthfulness.
Finally, defendant testified in his own behalf. He asserted that he had never tied up his wife, whom he had married on Valentine’s Day, 1977, and that he thought it was "great” that she wanted to enter the Air Force. On May 9, 1978, he stated, he went to work in the morning and came home for lunch. After eating lunch, he changed his shirt, told his wife he loved her, kissed her, and returned to work. After work, at 4:30 P.M., defendant came home. However, since the door was locked and his knocks went unanswered, he climbed through a bedroom window. In the bedroom, his wife was lying on the bed, motionless and without a pulse. He then ran for help and asked a neighbor to telephone the police. When the police were contacted, he requested that they come to his residence because his wife "had been raped, robbed, and murdered.” He denied ever having told anyone that he killed his wife and denied having killed her.
On appeal, defendant raises four issues. First, he argues that he was denied his right to compulsory process by the trial court’s refusal to compel certain out-of-state witnesses to attend the trial.
An accused in a criminal prosecution has the right to compulsory process for obtaining witnesses in his favor. US Const, Am VI. This right is applicable to the states through the Fourteenth Amendment. Washington v Texas, 388 US 14, 17-18; 87 S Ct 1920; 18 L Ed 2d 1019 (1967). The Michigan Constitution similarly guarantees an accused in a criminal prosecution the right to compulsory process of witnesses in his favor. Const 1963, art 1, § 20. However, a criminal defendant’s right to compulsory process is not absolute, and the constitution does not grant the right to subpoena any and all witnesses a party might wish to call. United States v Wilson, 732 F2d 404, 412 (CA 5, 1984), cert den 469 US 1099; 105 S Ct 609; 83 L Ed 2d 718 (1984); United States v Espinoza, 641 F2d 153, 159 (CA 4, 1981), cert den 454 US 841; 102 S Ct 153; 70 L Ed 2d 125 (1981).
The uniform act to secure the attendance of witnesses from without a state in criminal proceedings provides, in pertinent part:
If a person in a state, which by law provides for commanding persons within its borders to attend and testify in criminal prosecutions, or grand jury investigations commenced or about to commence, in this state, is a material witness in a prosecution pending in a court of record in this state, or in a grand jury investigation which has commenced or is about to commence, a judge of the court may issue a certificate under the seal of the court stating these facts and specifying the number of days the witness will be required. The certificate may include a recommendation that the witness be taken into immediate custody and delivered to an officer of this state to assure his attendance in this state. This certificate shall be presented to a judge of a court of record in the county in which the witness is found. [Emphasis added. MCL 767.93(1); MSA 28.1023(193)(1).]
A trial court’s decision under this statute is left to its discretion and will not be reversed absent an abuse of discretion. People v Williams, 114 Mich App 186, 201; 318 NW2d 671 (1982), lv den 422 Mich 909 (1985). In Williams, this Court commented on the issue of first impression in Michigan regarding the quantum of evidence required to invoke the statute:
In Lancaster v Green, 175 Ohio St 203; 192 NE2d 776 (1963), defendant’s petition requesting the attendance of witnesses did not specify the exact location of the witnesses. The court ruled that a defendant must be able, with a reasonable degree of certainty, not only to designate the witness but also the witness’s exact location before the court would be required to initiate the complex judicial process required by the act. Id., 205. Furthermore, the petition must be made in a timely manner. See Commonwealth v Dirring, 354 Mass 523; 238 NE2d 508 (1968). Finally, the defendant must make out a prima facie case that the witness’s testimony is material. Id., 526, Commonwealth v Edgerly, 6 Mass App 241; 375 NE2d 1 (1978). [114 Mich App 201.]
In this case, defendant contends that the trial court improperly refused to exercise its compulsory process powers regarding three individuals, namely, Marlene Mischley, Charles Newman, and Sharon Newman. We do not believe that defendant made out a prima facie case that the testimony of these individuals was "material.” See 44 ALR2d 732, § 1, p 733. Accordingly, we affirm the decision of the trial court on this issue.
Defendant claimed that Marlene Mischley, who apparently lived in California at the time of the trial, was a material witness because she may have been in the presence of Stuart Popielarski and defendant when statements were made by defendant to Popielarski regarding the victim’s death. Defendant also argued that Mischley could testify to Mr. Popielarski’s credibility. As evidence of this, Mischley’s statement to the police was introduced as an exhibit during the hearing on defendant’s motion. Mischley’s statement indicates that defendant never told her anything regarding the victim’s death and that defendant spent time with Popielarski when Mischley was working. Mischley was, however, present when one Joyce Perez asked defendant if there was anything that he had ever done that no one knew about. Defendant’s response was that he had done something about which he would never tell anyone.
Thus, Mischley apparently knew nothing about the circumstances of the crime and never spoke to defendant about them. According to her police statement, she "did not know [defendant] for very long nor did she get to know him very well.” The one conversation overheard by Mischley between defendant and Joyce Perez was not shown to have been made in the context of a discussion concerning the victim’s death. Moreover, this information, if made in such a context, does not particularly favor defendant. In addition, even if Mischley’s testimony could bear on Popielarski’s credibility, that alone does not elevate Mischley to the status of being a material witness for purposes of the relevant compulsory-process statute. Therefore, we conclude that the trial court did not abuse its discretion in refusing to compel the attendance of Marlene Mischley at defendant’s trial.
Defendant also sought to compel the attendance of Charles Newman as a material, out-of-state witness. Mr. Newman and his wife, Sharon Newman, who apparently lived in Tennessee at the time of the trial, were neighbors of defendant on the date of the incident. Mr. Newman’s statement to the police, which was admitted as an exhibit at the hearing, indicates that he thought he saw the victim standing in the window of her home on May 9, 1978, at approximately 11:20 A.M., although he was uncertain because he was "on a drunk.” Defendant claims that this contradicts the prosecutor’s theory that defendant killed the victim before he went to work in the morning. However, Mr. Newman was also contacted by the police on October 7, 1983, when he explained that on May 9, 1978, he was at home between 7:00 a.m. and 8:00 a.m. and then left for most of the day, having gone out "bar-hopping” with his friends. He explained that it could have been May 7 or 8, 1978, when he thought he saw the victim standing in the window and that perhaps he did not see her at all on the day of her death. Again, Mr. Newman knew of no specific facts regarding the victim’s death and never conferred with defendant about the event. Indeed, he could not, apparently, even recall whether he saw the victim on the day of her death. Under these circumstances, we cannot conclude that the trial court abused its discretion in concluding that Mr. Newman was not a material witness.
Finally, we also do not detect an abuse of discretion in the trial court’s refusal to compel the attendance of Sharon Newman. She merely saw defendant’s car outside his home at lunch time on May 9, 1978.
Second, defendant argues on appeal that the trial court erred by permitting the prosecutor, over defense objections, to elicit defendant’s opinion during cross-examination that certain prosecution witnesses were "liars.” The prosecution, on the other hand, argues that defendant himself initiated this line of questioning during his direct examination by specifically refuting the prosecution witnesses’ testimony.
We reject the prosecution’s argument that defendant initiated this line of questioning. On direct examination of defendant, defendant never referred to the prosecution witnesses as "liars,” nor did he give an opinion concerning the witnesses’ credibility. Rather, he simply denied that he had told the witnesses the damaging statements they said he had told them. Moreover, the Supreme Court, in People v Buckey, 424 Mich 1, 17; 378 NW2d 432 (1985), has agreed with this Court that it is improper for a prosecutor to ask a defendant to comment on the credibility of prosecution witnesses since a defendant’s opinion on such a matter is not probative and credibility determinations are to be made by the trier of fact. However, although it was erroneous to permit the prosecutor to question defendant in this case concerning his assessment of the credibility of certain prosecution witnesses, we find that the error is harmless. The Buckey Court, in coming to a conclusion that a similar error in that case was harmless, stated:
This was not a case where the defendant might have been prejudiced by improper bolstering of the credibility of prosecution witnesses or by ¿lowing an opinion on his guilt or credibility to be expressed. Concededly, the prosecutor’s strategy was to discredit defendant by inviting him to label prosecution witnesses "liars.” However, the substance of the exchange indicates that defendant dealt rather well with the questions. We fail to discern how he was harmed by the questions. [424 Mich 17.]
Our review of the record discloses that, as with the defendant in Buckey, the defendant in this case "dealt rather well with the questions.” When asked whether each of seven prosecution witnesses lied on the witness stand regarding whether defendant had told them the statements they asserted in court that he had told them, defendant was adept at clarifying that the witnesses, if not lying, at least had misunderstood him, had forgotten what exactly defendant had actually said, or were faulty in their recollection of the time at which the purported statements were made. We note that, in accordance with the discussion in Buckey, the trial court in this case should have stopped this line of questioning, given a cautionary instruction, and precluded comment about the matter by the prosecutor in his closing argument. 424 Mich 17-18. Nevertheless, in light of our perception of defendant’s success in responding to the prosecutor’s improper questions, we decline to deem the error harmful and thus cannot premise a reversal of defendant’s conviction on this issue alone.
Third, defendant argues that he was improperly denied by the trial court a dismissal of the charge against him in view of the excessive lapse of time, being more than five years, between the reception of the evidence and the issuance of a complaint. Defendant asserts that this lengthy delay deprived him of due process. We disagree.
In People v Hernandez, 15 Mich App 141, 147; 170 NW2d 851 (1968), this Court enunciated a tripartite test to be applied in cases questioning whether a prearrest delay violated a defendant’s right to procedural due process. Under that test, if the prosecution failed to establish any of the three prongs of the test, i.e., that the delay was not explainable, was deliberate, or resulted in undue prejudice to the defendant, then a due process violation was discernible. When the Hernandez test was reevaluated in People v Bisard, 114 Mich App 784; 319 NW2d 670 (1982), in light of federal court decisions issued after the release date of the Hernandez opinion, this Court adopted the following balancing test:
[W]e hold that, once a defendant has shown some prejudice, the prosecution bears the burden of persuading the court that the reason for the delay is sufficient to justify whatever prejudice resulted. This approach places the burden of coming forward with evidence of prejudice on the defendant, who is most likely to have facts regarding prejudice at his disposal. The burden of persua sion rests with the state, which is most likely to have access to facts concerning the reasons for delay and which bears the responsibility for determining when an investigation should end. [114 Mich App 791.]
This balancing test has often been applied in post-Bisard cases. See, e.g., People v Betancourt, 120 Mich App 58, 63; 327 NW2d 390 (1982), lv den 417 Mich 874 (1983), People v Evans, 128 Mich App 311, 314; 340 NW2d 291 (1983), People v Vargo, 139 Mich App 573, 578-580; 362 NW2d 840 (1984), People v Dungey, 147 Mich App 83, 85-88; 383 NW2d 128 (1985), and People v Shelson, 150 Mich App 718, 726-727; 389 NW2d 159 (1986), lv den 426 Mich 862 (1986).
The offer of proof made by defendant in the trial court on this issue demonstrates that defendant failed to carry his burden to show some prejudice. Throughout the proceeding, defendant largely focused on the alleged inadequacy of the police investigation and not specifically on prejudice resulting from the prearrest delay. The primary reference to prejudice was made by a witness employed as a private investigator by the defense who testified that the "approximately eight witnesses” he had spoken to had "stated in one way or one fashion or another they could not remember the events I was asking them about.” However, the particular events not remembered were not disclosed, the identities of the eight witnesses were not revealed, and no testimony regarding the nature of the alleged prejudice was adduced. The mere fact that a defense investigator spoke to several witnesses whose memories were not perfect concerning "the events that [he] was asking them about,” whatever those events may have been, does not alone establish prejudice to a defendant on the issue of prearrest delay.
A defendant shoulders the burden of coming forward with evidence of prejudice. Until he does so, the prosecution’s burden — to persuade the court that the delay was justified in the face of any resulting prejudice — is not triggered. The imperfection of a witness’ memory may be exposed to the trier of fact during direct or cross-examination and may be emphasized to buttress or undermine credibility. If such absence of memory by a defendant’s material witnesses due to a lengthy prearrest delay seriously impedes or significantly hinders a defendant in presenting his case, prejudice, of course, would be shown, and the prosecution would be required to demonstrate how that prejudice was justified by the prearrest delay. In this case, however, no such impediment or hindrance was manifest. Moreover, we decline to accept defendant’s assertion on appeal that "the exceptionally long delay in the present case should itself raise a strong inference of prejudice.” Without specific references to instances of prejudice-generating occurrences, and without specific allegations of actual prejudice resulting therefrom, the prosecution would be at an insuperable disadvantage indeed in attempting to show how such unspecified prejudice was in fact justified. We will not put the cart before the horse.
Finally, defendant argues that he was denied his constitutional right to equal protection by the required disclosure to the prosecution of the names of certain proposed witnesses and the substance of their expected testimony in order to secure payment of subpoena fees at the state’s expense. In essence, defendant contends that the statute providing for the payment of subpoena, and witness fees for an indigent defendant otherwise unable to pay such fees is unconstitutional. We agree.
The statute regarding payment of subpoena and witness fees for indigent defendants provides:
If any person accused of any crime or misdemeanor, and about to be tried therefor in any court of record in this state, shall make it appear to the satisfaction of the judge presiding over the court wherein such trial is to be had, by his own oath, or otherwise, that there is a material witness in his favor within the jurisdiction of the court, without whose testimony he cannot safely proceed to a trial, giving the name and place of residence of such witness, and that such accused person is poor and has not and cannot obtain the means to procure the attendance of such witness at the place of trial, the judge in his discretion may, at a time when the prosecuting officer of the county is present, make an order that a subpoena be issued from such court for such witness in his favor, and that it be served by the proper officer of the court. And it shall be the . duty of such officer to serve such subpoena, and of the witness or witnesses named therein to attend the trial, and the officer serving such subpoena shall be paid therefor, and the witness therein named shall be paid for attending such trial, in the same manner as if such witness or witnesses had been subpoenaed in behalf of the people. [Emphasis added. MCL 775.15; MSA 28.1252.]
Defendant filed a motion for approval of the issuance of subpoenas for defense witnesses without requiring disclosure of the witnesses’ names or of their expected testimony. At a hearing conducted on the motion, the trial court refused defendant’s request of nondisclosure after studying in camera a document prepared by defendant setting forth the names of nineteen proposed defense witnesses and the expected nature of their testimony. After the prosecutor was given a copy of defendant’s document, he explained that he had no objection to the witnesses’ being subpoenaed by the court and to the state’s being responsible for payment of fees, noting, "we do not want to create an issue on appeal as to whether or not the state interfered with the defendant’s right to conduct his defense.”
A defendant who is able to pay for service of process upon his witnesses and for their witness fees need not reveal, in the presence of "the prosecuting officer of the county,” the number of witnesses he intends to call, the identities of the witnesses he intends to call, or the prospective testimony of the witnesses he intends to call. Nevertheless, a poor defendant who cannot obtain the means to procure the attendance of witnesses is forced to make such disclosures in order to establish their materiality to his case as required by the statute regarding payment of subpoena fees for indigent defendants. The constitutionality of that statute was questioned by this Court in People v Thornton, 80 Mich App 746, 752-573; 265 NW2d 35 (1978), in light of the analogous federal rule and federal cases. In dictum, the Thornton panel observed:
The Federal Rules of Criminal Procedure, Rule 17(b), formerly contained a provision very similar to the Michigan statute [MCL 775.15; MSA 28.1252] as interpreted by the judge in this case. The rule was amended in 1966 to allow defendants to apply for witness fees ex parte, i.e., without revealing names and testimony to the prosecution. Cases commenting on the amendment indicate that the rule was changed because of the disturbing equal protection problem evident on the face of a rule which would require indigents to disclose their defense theory to the prosecution while not requiring similar disclosure from defendants who are able to pay their own fees. See United States v Meriwether, 486 F2d 498 (CA 5, 1973), United States v Barker, 553 F2d 1013 (CA 6, 1977). For a general discussion of the Federal rule and the impetus behind the 1966 changes, see 1 Wright, Federal Practice and Procedure (1969), Chapter 5, §272, pp 539-544. These constitutional problems could be avoided on retrial in the present case if the trial judge accepts the defendant’s offer to submit the names of the witnesses and outlines of their testimony for in camera inspection. This procedure would be similar to the ex parte practice now followed in the Federal courts. [80 Mich App 752-573.]
See also United States v Brown, 535 F2d 424, 428-429 (CA 8, 1976), Thor v United States, 574 F2d 215, 221-222 (CA 5, 1978), and United States v Espinoza, supra, 157-159.
The Michigan statute, like the pre-1966 federal rule, subjects an indigent defendant’s case to the pretrial scrutiny of the prosecutor, thus potentially exposing defendant’s defense to prosecutorial review when a monied defendant’s defense would remain inviolate. Clearly, the pretrial revelation of the names, number, and expected testimony of a defendant’s witnesses might be of significant tactical advantage to the prosecution. First, as noted by defendant, "It is simply a reflection of the truth known by every litigator: the more known of the opposing side’s case, the better.” Second, such disclosure could lead the prosecution to emphasize certain evidence in anticipation of contrary evidence to be presented by defendant. Third, it could lead the prosecution to deemphasize, or to omit, certain evidence in anticipation of damaging impeachment evidence to be presented by defendant. Moreover, it could help the prosecution during voir dire and in structuring its opening statement. Indeed, if the theory of a defendant’s defense is revealed to the prosecution prior to trial, it seems likely that the prosecution could fashion its strategy as to best discredit and undermine that revealed defense. When such an advantage is to be reaped by the prosecution only when the defendant is poor and therefore cannot afford to pay the service-of-process and witness fees of his witnesses, it seems undeniable to us that such a defendant is not the recipient of equal justice under law. As declared in the landmark case of Griffin v Illinois, 351 US 12, 19; 76 S Ct 585; 100 L Ed 891 (1956): "There can be no equal justice where the kind of trial a man gets depends on the amount of money he has.” A defendant’s attempts, in the presence of a prosecuting officer, to establish the materiality of the witnesses he cannot afford to obtain for trial might very well make the prosecution privy to his defense. Thus, the quality of his defense, and hence the quality of his trial, depends upon the amount of money he has to pay service-of-process and witness fees. Accordingly, to the extent that the statute mandates that a poor defendant requesting the payment of service-of-process and witness fees for proposed defense witnesses must reveal, in the presence of the prosecution, the names and addresses of the witnesses, as well as why such witnesses are material to his cause, we hold that the defendant’s constitutional right to equal protection is violated. The purpose of the statute is to protect public funds by assuring that no frivolous use of compulsory process by indigents occurs. This purpose, however, does not require the presence of the prosecution when a trial court decides whether an indigent defendant is entitled to payment of service-of-process and witness fees, and this is particularly the case when, in an attempt to establish such entitlement, the defendant is essentially forced to divulge the theory of his case prior to trial. We are confident that trial judges alone serve as adequate safeguards against the payment of state-paid subpoena fees for the nonmaterial witnesses, or for the frivolous purposes, of a poor defendant. Indigent defendants should not be forced to obtain from the state the payment of the subpoena-related fees of their witnesses only at the price of their pretrial revelation to the prosecution of anticipated trial strategy.
The error in this case which resulted from the presence of the prosecutor at defendant’s motion for payment of service-of-process and witness fees for his nineteen proposed witnesses, however, we find to be harmless. The five witnesses, excluding defendant himself, who testified during defendant’s case in chief were Ronald Hines, M.D.; Brenda Forsythe; Cindy Cox; Gary Cox; and John Kloss. Of these five, only the last three were listed in defendant’s proposed witness list of nineteen witnesses. Of these three, Cindy Cox and Gary Cox were listed as alibi witnesses in defendant’s notice of alibi filed prior to his motion for witness fees, and had already been served. Thus, the only witness whose name or testimony was perhaps not known to the prosecution at the time of the motion for subpoena fees and who testified at trial was John Kloss, who was described in defendant’s list of nineteen witnesses as a character witness. Mr. Kloss’s testimony on direct examination fills little more than one page of the voluminous trial transcript. He merely stated that defendant had lived with him for three weeks, had told him that his wife had been fatally shot, and that witness Kevin Moors had a bad reputation for honesty and truthfulness. We fail to perceive, and on appeal defendant fails to show us, how defendant was prejudiced by the prosecution’s foreknowledge merely of Kloss’s testimony. In addition, since none of the other remaining witnesses on defendant’s list ulti mately testified, we fail to perceive how the prosecution could have learned anything of value from the revelation of the information on the list. Indeed, if the prosecution shaped its case around the expected testimony of the remaining witnesses, defendant may have been benefited since those witnesses never in fact testified.
Having found no error requiring reversal on the issues raised by defendant on appeal, we affirm his conviction for the second-degree murder of his wife, Helen Ann Loyer, by means of suffocation.
Affirmed.
R. M. Mahek, J., concurred. | [
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Per Curiam.
Plaintiff appeals as of right from two separate orders entered the same day which effectively dismissed plaintiff’s medical malpractice claims against defendant Wyandotte General Hospital and defendant Outer Drive Hospital, a division of Peoples Community Hospital Authority (pcha), on grounds of governmental immunity. We affirm.
As a representative of the Estate of Anna Tot-sky, plaintiff initially filed this medical malpractice suit on June 15, 1984, naming Henry Ford Hospital as the only defendant. By order of May 3, 1985, plaintiff was allowed to amend his complaint to add as party defendants Wyandotte General Hospital and Outer Drive Hospital, as well as the individual physicians who are not parties to this appeal. Plaintiff’s first amended complaint, filed May 8, 1985, alleged negligence on the part of the two public hospitals in the treatment, diagnosis and discharge of the deceased. Both hospitals raised the issue of governmental immunity in their first responsive pleadings and on August 19, 1985, defendant Wyandotte General Hospital pursued this defense in a motion for summary disposition. Defendant’s motion was granted by order of September 16, 1985, and on September 20, 1985, defendant Outer Drive Hospital filed its motion for summary disposition on the same ground. At the same time, plaintiff moved for a rehearing and for an order allowing him to amend his complaint to set forth a cause of action for a breach of contract against both hospitals and to plead facts showing that both hospitals were proprietary in nature.
Following oral argument on all three motions, the trial court denied plaintiffs motion for a rehearing and entered two separate orders on November 1, 1985, denying plaintiffs motion to amend his complaint and granting defendant Outer Drive Hospital’s motion for summary disposition. It is from these two orders that plaintiff now appeals.
Plaintiffs challenge to the order of summary disposition in favor of defendant Outer Drive Hospital has been resolved during the pendency of this appeal by the release of the Supreme Court’s decision in Hyde v University of Michigan Bd of Regents, 426 Mich 223; 393 NW2d 847 (1986). It is now clear that the definition of governmental function adopted by the majority of the Supreme Court in Ross v Consumers Power Co (On Rehearing), 420 Mich 567; 363 NW2d 641 (1984), applies with limited retroactivity to the operation of public general hospitals. 426 Mich 230-231. Since plaintiffs medical malpractice claims against Wyandotte General Hospital and Outer Drive Hospital were filed after January 22, 1985, the trial court in this case did not err when it applied the definition of governmental function announced in Ross and concluded that defendants Wyandotte General Hospital and Outer Drive Hospital were immune from liability for the negligent treatment of the deceased. Although the Michigan Legislature has recently created a public hospital exception to the immunity statute, see 1986 PA 175, that exception does not apply here because plaintiffs cause of action arose prior to July 1, 1986. MCL 691.1407; MSA 3.996(107). See also Hyde, supra at 231; Rifkin v University of Michigan Hospital, 159 Mich App 254, 256; 406 NW2d 202 (1986), lv gtd 429 Mich 861 (1987).
The significant issue remaining is whether the trial court abused its discretion, Ben P Fyke & Sons v Gunter Co, 390 Mich 649, 658-659; 213 NW2d 134 (1973), in denying plaintiff the opportunity to amend his complaint to plead actions for breach of contract against both hospitals and to plead facts establishing the proprietary nature of each institution. Facilitating our review of this issue is plaintiff’s proposed second amended complaint, which is attached to his motion to amend. In denying plaintiff’s motion, the trial court held as a matter of law that neither Wyandotte General Hospital nor Outer Drive Hospital operated primarily for profit and that plaintiff’s breach of contract claims were without substance. Given these two holdings, the trial court concluded that plaintiff’s proposed amendment would be futile and thus denied the request.
In Michigan, leave to amend is freely granted in the absence of any undue delay, bad faith or dilatory motive on the part of the amending party and so long as the amendment is not futile and does not unfairly prejudice the opposing party. Ben P Fyke & Sons, supra at 656-659.
Before an activity is deemed a proprietary function, our Supreme Court has held that it must satisfy two tests. First, the activity must be conducted primarily for the purpose of producing a pecuniary profit. Second, the activity cannot normally be supported by taxes and fees. Hyde, supra at 231, 258.
In the first prong of the test, there are two relevant considerations. The first consideration is whether the activity generates a profit, although it need not actually do so before it can be deemed a proprietary function. The fact that a governmental agency pursues an activity despite consistent losses may be evidence that the primary purpose of the activity is not to make a pecuniary profit, but it is not conclusive evidence. Conversely, the fact that the activity consistently generates a profit may evidence an intent to produce a profit. However, the governmental immunity act permits imposition of tort liability only when the primary purpose is to produce a pecuniary profit. The Legislature did not intend the act to penalize a governmental agency’s legitimate desire to conduct an activity on a self-sustaining basis. Id. at 258-259.
The second relevant consideration is where the profit generated by the activity is deposited and where it is spent.
If the profit is deposited in the governmental agency’s general fund or used to finance unrelated functions, this could indicate that the activity at issue was intended to be a general revenue-raising device. If the revenue is used only to pay current and long-range expenses involved in operating the activity, this could indicate that the primary purpose of the activity was not to produce a pecuniary profit. [Id. at 259.]
Attached to Wyandotte General Hospital’s motion for summary disposition was the affidavit of Bruce L. Nelson, senior vice president of defendant hospital. In his affidavit, Nelson avers that Wyandotte General Hospital is a nonprofit hospital owned and operated by the City of Wyandotte. There are no shareholders and, therefore, no private or public entity or individual that benefits from any net revenues that the hospital may raise in any given fiscal year. Instead, the income received in excess of expenditures is retained for future operations, capital improvements or addi tions. Plaintiff presented no evidence to rebut Nelson’s averments. We therefore conclude, from the unchallenged averments contained in Nelson’s affidavit, that the operation of Wyandotte General Hospital was not undertaken by the City of Wyandotte primarily for the purpose of producing a pecuniary profit and, thus, that its operation is not a proprietary function.
As to the nature of the operation of Outer Drive Hospital, we point out that in Powers v Peoples Community Hospital Authority, a companion case decided with Hyde, supra, our Supreme Court recognized that the operation of a pcha hospital does not constitute a proprietary function. Outer Drive Hospital is a pcha hospital. Its operation, therefore, is not proprietary in nature.
Accordingly, we hold that the trial court did not abuse its discretion when it denied plaintiff’s motion to amend his complaint to plead the proprietary function exception to governmental immunity. Because neither public hospital’s operation is proprietary in nature, permitting plaintiff to amend his complaint to plead proprietary function would be an exercise in futility.
We also hold that the trial court did not abuse its discretion when it denied plaintiff’s motion to amend his complaint to plead breach of contract. The absence of a writing signed by an authorized representative of Wyandotte General Hospital and Outer Drive Hospital and containing the essential terms of the alleged contract is fatal to plaintiff’s contract claim. MCL 566.132(g); MSA 26.922(g); Malik v William Beaumont Hospital, 168 Mich App 159; 423 NW2d 920 (1988); Gilmore v O’Sullivan, 106 Mich App 35; 307 NW2d 695 (1981), lv den 413 Mich 851 (1982).
Affirmed. | [
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Per Curiam.
Defendant pled no contest to assault with intent to commit murder, MCL 750.83; MSA 28.278, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). In exchange, the court agreed to sentence defendant within the sentencing guidelines. Defendant was sentenced to twenty to forty years imprisonment on the assault count, and the mandatory two-year term on the felony-firearm count. Defendant appeals as of right, challenging his sentence. We remand for resentencing.
The charges arose out of an incident which occurred on November 13, 1986. Defendant and the victim had had an on-again off-again romantic relationship for many years. The victim testified at the preliminary examination that shortly before November 13, the victim told defendant that their relationship was over. Nevertheless, on the night of November 12, defendant called the victim and asked her if she would drive him to work the next morning. The victim agreed. When she arrived at defendant’s apartment the next morning, defendant entered the car and asked her whether their relationship was indeed over. The victim replied that it was. Defendant then drew a .44 magnum and shot the victim three times, in the face, neck and shoulder. Defendant subsequently pled nolo contendere as indicated.
At the sentencing, defense counsel stated that the presentence report had the following three inaccuracies: (1) the report indicated that defendant had a drinking problem while, in fact, defendant had no drinking problem; (2) the report indicated that defendant had a previous conviction of using indecent, immoral, obscene and vulgar language, while defendant claimed the conviction never occurred; (3) the report indicated that defendant had spent time in jail, and defendant claimed that the only time he was in jail was for a child-support matter. Defense counsel then stated that the second inaccuracy, regarding the conviction for indecent language, would change the Sentencing Information Report. Instead of a "1” in the Prior Record Variable two box, defense counsel stated there should be a "0.” Defense counsel also challenged the placing of a "3” in the Offense Variable five box, claiming that it should have been a "0” because defendant did not carry the victim away or hold her captive. Finally, defense counsel argued that the mitigating variable of the sentencing guidelines manual should apply.
The court asked defense counsel what effect the changes in the scoring of the sir would have on defendant’s recommended minimum sentence. Defense counsel stated that the scoring changes would bring defendant from the b-iii range to the a-iii range. Counsel admitted that this would not affect the recommended minimum sentence, as the recommended minimum sentence was 120 to 240 months for both the a-iii range and the b-iii range. However, defense counsel claimed that application of the mitigating variable would make defendant fall into the a-ii range, with a recommended minimum of 48 to 96 months.
The court then responded: "Okay. Anything else you want to comment on?”
On appeal, defendant first claims resentencing is required because the court did not respond to his claimed inaccuracies in the presentence report. Defendant claims that the court’s response of "Okay. Anything else you want to comment on?” was insufficient. There appears to be a conflict in this Court as to whether a response by the trial court of "Okay” or "All right” is a sufficient response to alleged inaccuracies in the presentence report. In People v Edenburn, 133 Mich App 255, 257; 349 NW2d 151 (1983), this Court held that the response, "All right. The court will take the comments made by counsel into consideration in passing sentence” was insufficient and required resentencing. In People v Garvie, 148 Mich App 444, 454-55; 384 NW2d 796 (1986), lv den 426 Mich 851 (1986), this Court, citing Edenburn, held that the response, "All right, Defense Counsel seeks Court [sic] to disregard the juvenile record as no indica tion made [sic] as to whether the Defendant was represented” was insufficient and required resentencing. However, in People v Gray, 125 Mich App 482, 487; 336 NW2d 491 (1983), this Court held that the response, "All right. Any other corrections or objections that you have, Mr. Gray?” was sufficient. Gray was followed in People v Sutton, 158 Mich App 755, 762-63; 405 NW2d 209 (1987), lv den 429 Mich 871 (1987), where the trial court said, "All right. [Defendant] ... do you want to say anything before sentencing?” This Court held this was sufficient. This Court distinguished Edenburn, noting that in Edenburn the trial court had said only that it would take defense counsel’s comments into consideration in passing sentence. In People v Tew, 151 Mich App 556, 559-560; 390 NW2d 738 (1986), this Court stated:
This Court has developed three approaches in dealing with such situations. The first is to view the acknowledgement of the alleged inaccuracy as a sufficient response. People v Gray, 125 Mich App 482, 487; 336 NW2d 491 (1983). The second is to remand for a hearing at which the trial court determines whether the challenged information affected its sentencing decision. People v Brown, 104 Mich App 803, 821; 306 NW2d 358 (1981) (opinion of Judge Gillis), rev’d on other grounds 412 Mich 913; 317 NW2d 189 (1982). The third is to remand for resentencing. People v Edenburn, 133 Mich App 255, 258; 349 NW2d 151 (1983).
The Tew Court chose to remand for a hearing to determine whether the alleged inaccurate information affected the sentence.
We feel that the court’s response of "Okay” in the instant case was ambiguous. It is well established that when a defendant raises inaccuracies in the presentence report the court must respond to the allegations and exercise its discretion in determining whether the allegations are correct. Edenburn, supra, p 257; People v Harvey, 146 Mich App 631, 636; 381 NW2d 779 (1985). The court may hold an evidentiary hearing to determine the report’s accuracy, may accept the defendant’s unsworn statement, or máy ignore the alleged misinformation while sentencing. The court must clearly indicate that it is not considering the alleged inaccuracy. Gray, supra, p 487. In the instant case, we cannot determine whether the court’s response of "Okay” meant that the court was agreeing with defense counsel’s comments or merely indicating that it heard defense counsel. The court’s response does not clearly indicate whether it believed that defendant’s claims had merit. Thus, we find it necessary to remand this case to the trial court for response by the trial judge regarding the claims of inaccuracies in the presentence report made by defendant, and subsequent resentencing. Edenburn, supra, p 258.
Next, defendant claims resentencing is required because the court did not respond to his claimed inaccuracies in the scoring of the sir. The allegedly improper scoring of Prior Record Variable two and Offense Variable five does not warrant resentencing, however, as defense counsel admitted it would not affect the recommended minimum, which was 120 to 240 months for both a-iii and b-iii.
While defense counsel argued that the mitigating variable of the Sentencing Guidelines Manual should apply, the prosecutor argued it should not. The mitigating variable providés:
The offense is mitigated if one or more of the following circumstances existed at the time of the offense.
* * *
ii. Provocation/Passion — Circumstances which are not the fault of the offender, and which would similarly provoke a reasonable person, caused the offender emotional disturbance and temporary loss of self-control; while so disturbed, the offender used force against the reasonably perceived source of the disturbance. [Sentencing Guidelines Manual, §15.]
If the mitigating variable applies, a defendant is entitled to have the offense severity level reduced. Id. In the instant case, if defendant could use the mitigating variable, he would be scored in the a-ii range rather than in the a-iii range, giving him a recommended minimum sentence of 48 to 96 months. Defense counsel argued that the mitigating variable applied because, due to defendant’s continuing spat with the victim, his level of passion was very high and he was not thinking rationally at the time of the shooting. The court did not verbally resolve the question. However, since the court later stated that the guidelines provided a minimum recommended sentence of 120 to 240 months, the trial judge impliedly rejected defense counsel’s contention. We emphasize that the trial court should have resolved the question on the record. However, we feel that resentencing is not required on this issue, since we hold that the mitigating variable does not apply under the facts of this case. Defendant did not demonstrate that the circumstances of his assault upon the victim were not his fault, nor that a reasonable person would be provoked to act as he did. Indeed, were the mitigating variable allowed to apply, any person who got into an argument and shot another would be able to claim that this variable applied, thus reducing his sentence. We do not believe the sentencing guidelines intended such a result.
Finally, defendant claims that, in imposing sentence, the court relied exclusively on the severity of the offense and failed to individualize the sentence to him. On the contrary, the record reveals that besides noting the seriousness of the incident, the court stated that defendant was a threat to the community. In addition, the court stated that it hoped defendant could get any necessary psychiatric treatment he needed in prison. We see no basis for resentencing on this issue.
Remanded.
Beasley, P.J., concurred in the result only and, pursuant to People v Clark, 147 Mich App 237; 382 NW2d 759 (1985), would not review the details of the Sentencing Information Report on appeal. | [
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